The Insurance Doctor

Category: budget

  • Three Important Percentages To 
Remember When Buying A Home

    Request a FREE Consultation with the Insurance Doctor Here

    You just finished watching the latest installment of House Hunters on HGTV and begin to think to yourself why not me?   Purchasing your first home is not only the American Dream, for many young Americans it signifies a real transition into financial adulthood and responsibility taking on potentially the largest debt you will ever carry in your entire life.  If you are going to buy a new home, there are three financial rules you should consider before you sign on the dotted line.

    percentage-manThe 20% Rule
    I am a big fan of putting down 20% for two reasons.  One, by saving this 20% it will put you more into a forced habit of what you can save monthly which will likely indicate that you are ready to take on the new mortgage payment coming up with the home purchase.  Two, in most cases, you will avoid paying the Private Mortgage Insurance (PMI) which can make your monthly payment more expensive at the time you purchase the first home.  Far too often, new homebuyers stretch themselves by making a lower down payment, not recognizing how these extra costs will affect them.

    The 10% Rule
    It’s been my experience that when you purchase a new home you will tell yourself that you have your whole life to fix up the home.  However, after you start watching a few more HGTV shows and make a few trips to Home Depot, you’ll find yourself craving to make some renovations or buy some new furniture.  Beyond the down payment you need to save, plan that about 10% of the home value (i.e. a home at $300,000) will cost you an additional $30,000 in home improvements and furniture in the first year.

    The 1% Rule
    Beyond your mortgage payment, you should plan that if the home is valued at $300,000, you should set aside a kiddie of 1% to plan for the unexpected.  I couldn’t tell you today if it will be the roof, the water heater, or the A/C, but invariably there are going to be year to year blow ups that will cost you money from your savings.

  • Six Tips to Save on Dry Cleaning

    Six Tips to Save on Dry Cleaning

    Proctor and gamble did a study in 2008 and found the average woman spends over $1500/year in dry cleaning. Men who wear suits daily would spend more than half that amount. Can these bills be eliminated, probably not. Reduced, for sure!

    1. save on dry cleaningTake off your work clothes and hang them up immediately upon returning home from work. Let clothes “air out” for a few hours before putting them back in a cramped closet.
    2. For men, wear a washable t-shirt under shirts and jackets to prevent perspiration stains.
    3. For semi-wrinkled clothes either use Downy wrinkle releaser or actually hang garments in your bathroom while showering, close the door and let sit for 10 minutes.
    4. Search and clip coupons and choose a dry cleaner who is located close to your home.
    5. Launder versus Dry Clean. Many dress shirts do not require dry cleaning but can be professionally laundered and pressed instead for a reduced price. Check your tags and try laundering items that don’t require special treatment. Your shirts will look just as good.
    6. Travel tip: when on a business trip leave shirts/suits/dresses in the dry cleaning plastic when folding in half to pack. This will reduce most if not all of the wrinkles from movement in flight etc.

  • 5 Tourist Traps to Avoid

    There are so many fabulous places in the world to visit. Avoid the hype as these 5 tourists traps that are a waste of time!

    1. Stonehenge, Wiltshire, England: This mysterious site may date as far back as 3000 bc. More than 1.3 million visited in 2014. It takes hours to get there and you can longer go into thetourist-traps central ring of stones. It’s a ton of tour buses with tourists walking in circles aimlessly!
    2. Mall of America, Bloomington, Minnesota: Receives over 40 million visitors from around the globe each year. Expect heavy crowds and over-priced goods. Unless you are going on rides it’s a waste of time!
    3. La Boca, Buenas Aires, Argentina: It’s a brightly painted neighborhood that attracts tourists looking to take tango lessons and photograph crayola-colored houses. It’s basically 1 fake-looking street painted to get tourists to visit the over-priced coffee shops, bars and restaurants.
    4. Walk of Fame, Hollywood, California: It’s comprised of 15 blocks of Hollywood blvd and marked by commemorative stars in the sidewalk. Seedy sin city type crowds tourist-trap-linkedin-Dec42015with hookers, dirty streets and solicitors everywhere.
    5. Manneken Pis, Brussels, Belgium: Manneken Pis depicts a naked boy urinating in a fountain. For some this 17th century sculpture is a work of art. For most this is a small statue that’s a waste of time!Are you prepared for your financial journey? Avoid the traps by contacting Robert today.
  • 7 Smart Money Marriage Tips

    7 Smart Money Marriage Tips

    You just got married, but you may not have realized that your money did as well. One of you is a spender and one is a saver! How in the world will you make it work? Especially now that many people are getting married in their 30’s and 40’s for the first time, what should you be doing money wise? Here are 7 tips on money strategies for your new marriage.

    1. Create Separate Accounts And One Joint Account:

    To mingle or not to mingle your money is one of the most important decisions the two of you need to make regarding your finances. Having your own money that you can spend however you want can lessen arguments about money. We disagree that having separate joint accounts lessens the sense of unity in marriage and shows a lack of trust in one another.insurance, New York, financial planning

    2. Track How You Are Spending Money:

    Tracking your spending is not a way to point fingers at one another as to who is spending what. Tracking your spending is not having someone looking over your shoulder every time you buy something. Tracking your spending is critical to being financially secure. Unless you know where your money is going, it is impossible to set up a budget and set financial goals you are both comfortable with.

    3. Discuss Finances Together On A Regular Basis:

    Sure, talking about money isn’t easy because money can symbolize different things to each partner. One may view money as security and the other as power. If the topic of debt, bills, savings, and goals makes one or both of you uncomfortable or defensive, seek the help of a financial counselor or planner. It is important that both of you know where you stand financially and have common financial goals.

    4. Save 10% of Your Income:

    Couples living month-to-month often rationalize that they just don’t have enough money to save. Make the decision to save at least 10% of your income. After saving enough cash as an emergency fund, invest in a retirement account. The earlier the two of you start saving money for your retirement years, the easier it will be have a retirement lifestyle that you both hope for.

    5. Handle Debt As A Couple:

    Make a plan to pay off existing debt. Drawing a line in the sand and saying that your spouse’s debt isn’t your problem is not going to work because even if the debt existed before you married, your credit rating can be negatively impacted as well as the bottom line of how much money the two of you are paying monthly in interest charges.

    6. Decide On The Bill Paying Strategy:

    Maybe you had a house and your partner had one as well. You were both used to paying your own bills. Now that you are living together and your bills are combined, get clear as a couple on who will pay what bill and which bank account the money is going to come out of each month. This will absolutely
    reduce friction in your relationship over time by having clear expectations.

    7. Don’t Keep Big Financial Secrets:

    Not being honest about the cost of large financial purchases or keeping debts hidden is considered financial infidelity by many people. Such secrets can destroy your marriage.

    THE CONTENT IS DEVELOPED FROM SOURCES BELIEVED TO BE PROVIDING ACCURATE INFORMATION. THE INFORMATION IN THIS MATERIAL IS NOT INTENDED AS TAX OR LEGAL ADVICE. IT MAY NOT BE USED FOR THE PURPOSE OF AVOIDING ANY FEDERAL TAX PENALTIES. PLEASE CONSULT LEGAL OR TAX PROFESSIONALS FOR SPECIFIC INFORMATION REGARDING YOUR INDIVIDUAL SITUATION. THIS MATERIAL WAS DEVELOPED AND PRODUCED BY HELLO MY NAME IS, LLC TO PROVIDE INFORMATION ON A TOPIC THAT MAY BE ON INTEREST. THE OPINIONS EXPRESSED AND MATERIAL PROVIDED ARE FOR GENERAL INFORMATION, AND SHOULD NOT BE CONSIDERED A SOLICITATION FOR THE PURCHASE OR SALE OF ANY SECURITY. COPYRIGHT 2014 HELLO MY NAME IS, LLC

  • Tips on what to do with your Tax Refund

    Tips on what to do with your Tax Refund

    Other than folks who receive an annual bonus this is the only time of year when some people will receive a lump sum of money. Instead of squandering your money consider the following options:

    • Add to your IRA: you can contribute up to $5,500/year to a traditional and/or Roth IRA or $6,500 if you are 50 or older by the end of 2014taxrefund
    • Pay off debt: If you are carrying more debt than you are comfortable with, consider paying it down. It’s like investing at the same interest rate being charged on the loan. Try to pay off your credit cards with the highest interest rate first.
    • Top off your emergency fund: You should have 6 months salary liquid in case of an emergency. Keep the money in an interest earning account.
    • Boost retirement savings: If you aren’t contributing enough to a company retirement plan to capture 100% of the company match, you are walking away from free money! Use the extra cash to increase your contribution.
    • Keep the money in a side fund for college: Putting the money in a 529 plan decreases what your student can qualify for in endowment “Free money”.
    • Prepay your summer vacation: Use some of the cash to pay off your vacation in advance so you don’t have to take it from your income in the summer.

    Do yourself a favor by choosing one of these options instead of wondering where all the money went at this time next year! Contact Rob today for a free consultation on this and other concerns you have here. 

  • 6 Tips to Get Your 2017 Financial House in Order

    6 Tips to Get Your 2017 Financial House in Order

    Now that we are in the final month of 2016 it’s easy to get off track from our goals.  Follow these 6 tips and with a little time and effort your 2017 finances will be more organized and less stressful.

    1. Organize your paperwork: It’s hard to feel in control when you can’t find anything. Gather all papers, shred duplicates/old statements and put them all in a box insurance, New York, financial servicesor accordion file.
    2. Go Paperless: I know habits are hard to break.  Wherever possible create electronic files.  See if you can receive e-bills instead of paper.  Use a flash or thumb drive as a back-up and keep it off-premises.
    3. Protect against identity theft: You can request a free copy of your credit report once per year from all 3 credit bureaus. Go to AnnualCreditReport.com. Another great tool is Credit Karma which allows you to track your credit scores throughout the year.
    4. Put your finances on autopilot: Use EFT direct deposit for all checks, pension and social security received. Set up automatic payments for recurring bills.  It’s easy and will save time going forward.
    5. Create your 2016 tax file: Most people have to scramble to pull together all tax forms etc. Start now by setting up a 2016 file and stashing forms/receipts etc as needed.
    6. Review your insurance coverage: Protect your nest egg and your family by regularly reviewing your life, health disability and long term care insurance.  If this is confusing to you contact us for a 2nd

    Your financial house needs regular upkeep.  Putting in a little time and organization will decrease clutter and help you focus on your goals and objectives.
    Contact Robert here for more ideas to get your financial house in order.

  • 6 Tips for your Financial New Year’s Resolutions

    6 Tips for your Financial New Year’s Resolutions

    Six out of ten American’s will make some type of financial based New Year’s resolution for 2016. Usually there’s a triggering event like receiving your December 2015 credit card bill or spousal pressure to name two. Follow these tips;2016-resolutions

    1. Consolidate Financial accounts: Close 1 or 2 existing financial accounts that you are not tracking or have insignificant monies in. This will save brain space, reduce statement clutter and avoid paying unnecessary fees.
    2. Increase your 401k/employer retirement contributions: Raise your contributions 1%/year minimum. You won’t feel the difference however over time it can make a major impact when entering retirement.
    1. Develop a budget and/or expense statement: Review credit card, bank and checkbook statements to get a handle on inflow and outflow of money. Start using a program like quick books or if old school draft a budget by hand and hang it up where you can see it. This can cause heavy emotional denial however better now than later.
    2. Set up a system to save systematic money: Either something informal like putting the $20 you are saving in gas on fill-ups in a jar. Formal ideas like buying a cash value life insurance policy or setting up an Eft thru your bank account.
    3. Protecting your health saves your wealth: We all know about the escalating cost of health insurance and health care in general. Renew that gym membership, yoga studio or dust off that treadmill in the garage.
    4. Bring balance to your life: Take that vacation you have been putting off. The rest and rejuvenation will impact you health. Statistics show that one who works 46 weeks/year will out produce a 52 week/year worker. It will give you something to look forward to and forces one to be very productive before leaving and when returning home. Use frequent flyer miles if need be.

    Contact Robert today to help achieve your New Year’s Financial Resolutions

  • Just Married? 7 Money-saving tips for Newlyweds.

    Just Married? 7 Money-saving tips for Newlyweds.

    With spring finally here we are now thrust into “Wedding Season” in most parts of the country.

    For those folks tying the knot or are going to a wedding feel free to share these helpful tips.

    Click here to download the PDF with 7 tips.

    Newly married or know someone who is? Contact Robert today.