Employee Sponsored
Savings Plans

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You’re young and just starting out in the workforce and lucky enough to be able to join in an employee sponsored savings plan (ESP).  Or your 40 years old and start a new job and asked if you want to participate in their ESP. Or your 60 and starting to think of retirement and wonder if you still need to keep saving in the ESP. – All of you are not sure what you should.

After spending years investigating employee sponsored savings plans, this detective’s answer? Yes, definitely, do not hesitate – don’t be a Schmo. Get ESP, Start ESP, ESP is your friend. I hope that’s clear enough. To understand it better let’s take a look at the definition.

Employee Sponsored Savings Plans (ESP) is a pooled investment account provided by an employer that allows employees to set aside a portion of their pretax wages for retirement savings or other long-term goals (i.e. paying for college tuition, purchasing a home). Many employers match their employees’ contributions up to a certain dollar amount, or by a certain percentage.

If your employer matches all or part of your contribution, that’s like found money! Which is Frank Money’s favorite kind of money! Keep in mind that there may be plans that require employees to remain employed for a minimum amount of time before they are vested and eligible to withdraw employer-matched funds. ESPs can be an attractive and relatively easy way for employees to lower their taxes and save for long-term goals.

You Need A Career Plan

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Sometimes stepping back and looking at where you stand can have a great impact on your approach to things. The same can be said for a Career Plan. I’m detective Frank Money – and I’m the man for understanding Career Plans.

At various stages of your life, having a Career Plan and reviewing that plan can keep you on the right path, helping you achieve a higher salary, job security and a rewarding career – doing what you love.

Ask yourself these questions:

  • What is the marketability of the degree you are pursuing?
  • Are there steps you might take to add to your potential employability and earning power?

A career plan is simply a step-by-step assessment, finding out the things you need to do, and the order you need to do them in, to get the career you want.  For college-aged folks, taking the time to establish a career plan can act as a blueprint for building your career.

1 – Assess yourself, Take time now to learn how your skills, values, interests, and personality might influence your career choices.

2 – Understand the careers available to your career choice. Do you really know what jobs you might qualify for upon graduation?

3 – Participate in your career choice. Set yourself apart from other recent graduates, participate in internships, mentoring programs, and other work-based learning experiences.

4 – Network. Look for career-related student groups, professional associations, or other groups that can help you to network.

Taking the time to organize yourself with a Career Plan will help you take the right steps toward your career future.

The Good Old A&Q

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How many times have you passed by an electronics store and saw that X-Box you always wanted was finally on sale or the newest smart phone has hit the market? Temptations are thrown at us everyday in many different forms of ads. They know how to get your attention.

But where do you stand financially? Are you strong enough to stick to your budget or are you ready to throw caution to the wind? If so, then let’s at least recognize that there are alternatives & consequences to most financial decisions. Frank Money likes to call the ‘The Good Old A&Q’

Think of setting financial goals so you can purchase these items by saving for it on a monthly basis. But remember, the more you save, the more you have to sacrifice other things like movies or eating out. So there’s your alternative, but if you spend and don’t have it, the consequences means going into more debt. So check out your A&Q!

Tomorrow Is Tax Day

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Tax day always seems to be a day of chaos and dread for taxpayers. We’ve all seen traffic jams and long lines at local Post Offices with last minute taxes held tightly in their hands hoping to get their taxes sent out on time. In 2017, tax day is actually tomorrow, April 18th!

Other than having your taxes prepared sooner there are other options than racing to the Post Office. Need more time to prepare your federal tax return? If you are not able to file your federal individual income tax return by the due date, you may be able to get an automatic 6-month extension of time to file. But to do so, you’ll need to not owe anymore income tax for last year. Best to check with the IRS for the proper forms and understand that there’s a nominal fee on the amount that’s being filed.

Also, don’t forget you can e-file your federal taxes right from your computer. It’s quick, easy and gives you immediate confirmation that Uncle Sam has happily gathered in your taxes.

April is National Financial Literacy Month, Detective Frank Money’s favorite month! Tax Day…not so much.

Preparing For Tax Day

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Paying taxes can seem like handcuffs on your wallet.

When preparing for tax day don’t just assume that Federal, State and other income taxes will be the only thing you can declare hoping you’ll get some kind of tax return. Depending on what kind of job or jobs, or what kind of savings or purchases you’ve made, you may qualify to reduce your taxable income and get a larger refund.

Some of the more popular deductions you can take are charitable contributions, business expenses such as operating costs, mortgage interest, losses such as theft or property values. Also let’s not forget contributing to your 401k or Roth IRA. If you’re a first time home buyer, Uncle Sam gives you a nice financial credit to encourage you to own your home.

There’s a long list that will probably fit your reduction of taxable income. There’s no shortage of information out there, as well as, consulting a professional tax preparer.

April is National Financial Literacy Month, Detective Frank Money’s favorite month! 

Bad Credit Will Cost You

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Frank Money here, your financial detective trying to save you money. Ok, listen up all you financial hotdogs out there who don’t pay attention to their credit scores. I’m about to give a lesson in world of hard knocks. Let’s cut right to the chase, bad credit will cost you money. If you’re planning to purchase large ticket items like a mortgage, car loan or even another credit card, you’re going to pay a lot more.

Your credit score under FICO ranges from 300 to 850, with the highest being the best score. I’m guessing anything under 620, you’re going to have trouble even being considered with some purchases without paying extra for insurance of payment.

So pay off your credit cards and get rid of the ones you don’t need. Don’t be late with any of your loan payments, and don’t be afraid to check your credit report, it does not affect your score. It will take a couple of years to build your credit back up to a decent score but it’ll be worth it and that’s coming straight from Frank Money.

On The Subject Of Credit

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All right all you spenders, there’s a subject near and dear to me and that’s on the subject of credit. Now you may be thinking to yourself that poor old Frank Money has no life. That may be true but I’m not poor and I’m not in debt, but thinking about the different kinds of debt can really knock me off my feet.

There are costs and benefits for carrying different types of debt. Some credit accounts are viewed more favorably by lenders than others but all require the ability to repay your debts in a timely manner. For example, there’s non-revolving credit like taking out a mortgage that’s paid in installments. Revolving credit deals with credit cards and fluctuates how much you pay each month.

Believe it or not carrying debt and paying it off monthly can raise your credit scores because it clearly shows how you manage your finances. Just remember the higher your credit score the better you can negotiate lower credit rates.

Play Budget Mania!

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Frank Money here – I find that Money is never around when you need it…and you never need it when it’s around. Understanding your spending and savings with a budget is the best way to get control of your money!

It’s time for Budget-Mania! Where everyone can learn about keeping a budget for their spending and saving. After all, if you don’t have a plan then good-bye budget and hello chaos!

Click here and download this PDF form to be on your way to your first budget!

As you can see by this form it’s really quite simple, but like everything else in life, you got to stick with it in order to succeed. It’s a game of pluses and minuses. Income, such as your take home pay from your job, is a plus. Your parents give you money for your birthday, plus. As for the minuses, that’s all of your expenses from car repairs to your monthly rent, from paying your health insurance to shopping for groceries.

Add up all of your expenses and subtract it from your income and you are well on your way to winning at Budget-Mania! That’s because you have a plan and that information will help keep you out of spiraling debt.

As my old friend Ben Franklin always said, “An investment in knowledge pays the best interest”.