Information and resources about the following topics can be located by scrolling down this page:
- Saving and Investing
- Retirement Planning
- Saving for Children’s College Tuition
- Helping Disabled Relatives Financially
- Buying a House
- Dealing with Debt
Saving and Investing:
Investor.gov
U.S. Securities and Exchange Commission (SEC)
By far, this is one of the best places for an amateur investor to obtain basic information about investment terms, and begin the financial planning process. Under the Introduction to Investing tab, a submenu features links that describes how the stock market works: https://www.investor.gov/introduction-investing/basics/how-stock-markets-work and how to create a roadmap for short-term and long-term savings goals (for example: planning for retirement): https://www.investor.gov/introduction-investing/basics/save-invest
A pdf guide to Saving and Investing: A Roadmap To Your Financial Security Through Saving and Investing can be ordered in print form or downloaded for free from: https://pueblo.gpo.gov/Publications/PuebloPubs.php?PubID=5744
Also under this Introduction to Investing tab, there are several links that describe every investment product available-from every kind of annuity available to target date funds, these links contain invaluable information that not only defines what these investment products are, but explains the specific benefits and risks involved in each product, and how to buy and sell them.
A sampling of web links regarding the most popular investment product is featured below:
-Annuities: https://www.investor.gov/introduction-investing/basics/investment-products/annuities
-Bonds: https://www.investor.gov/introduction-investing/basics/investment-products/bonds
For further details about specific types of treasury bonds, savings bonds, and treasury bills, and how to purchase these forms of investment, the U.S. Department of the Treasury features the following website: https://www.treasurydirect.gov/tdhome.htm The information posted here about bonds is quite extensive for individuals/consumers and financial institutions alike. There is even a Savings Bond Calculator posted on this site, so that one can determine the amount of interest a bond has already earned as well as the amount of interest it will earn on its maturity date.
-Certificates of Deposit (CDs): https://www.investor.gov/introduction-investing/basics/investment-products/certificates-deposit-cds
-Money Market Funds: https://www.investor.gov/introduction-investing/basics/investment-products/money-market-funds
-Mutual Funds: https://www.investor.gov/investing-basics/investment-products/mutual-funds
NOTE: The U.S. Securities and Exchange Commission has this information available in a printed form. Copies of the ‘Mutual Fund’ booklet can be ordered online or downloaded in pdf for free at: https://pueblo.gpo.gov/Publications/PuebloPubs.php?PubID=5783
-Private Equity Funds: https://www.investor.gov/introduction-investing/basics/investment-products/private-equity-funds
-Savings Bonds: https://www.investor.gov/introduction-investing/basics/investment-products/savings-bonds (also visit https://www.treasurydirect.gov/tdhome.htm for more specific information about savings bonds).
-Stocks: https://www.investor.gov/introduction-investing/basics/investment-products/stocks
-Target Date Funds: https://www.investor.gov/introduction-investing/basics/investment-products/target-date-funds
-Variable Annuities: https://www.investor.gov/introduction-investing/basics/investment-products/variable-annuities
NOTE: More information about variable annuities can be downloaded in pdf format from the following link: https://www.investor.gov/additional-resources/general-resources/publications-research/publications/variable-annuities
Other useful features contained in the investor.gov website include:
–A Beginner’s Guide to Asset Allocation, Diversification, and Rebalancing: In short, this info sheet explains how to create an investment portfolio by dividing investments into different categories and determining how the growth of this portfolio would help someone effectively fund their retirement. https://www.investor.gov/system/files/publications/documents/english/Beginners-Guide-to-Asset-Allocation.pdf
–Evaluating Your Retirement Options: This pdf publication from the Office of Investor Education and Advocacy (under the SEC) offers information about retirement savings programs offered through employers (i.e. 403(b) plans), as well as more detailed information about annuities, such as fixed annuities and variable annuities. https://www.investor.gov/system/files/publications/documents/english/Evalutating-Your-Retirment-Options.pdf
–Individual Retirement Accounts (IRAs)/401(k)s: This is another option that can be included in the funding of one’s investment portfolio. https://www.investor.gov/introduction-investing/retirement-plans/self-directed-plans-individual-retirement-accounts-iras
The following website also gives a basic overview about IRAs.
For a further, more thorough exploration of the specific differences between different types of 401(k)s, the Financial Industry Regulatory Authority (FINRA) provides a well-organized publication available for pdf download for free: http://www.finra.org/file/smart-401k-investing (Note: Although FINRA is not officially part of the U.S. government; is an organization that regulates brokerage firms and exchange markets under the authority of the U.S. Securities and Exchange Commission (SEC)
Maximize Your 401(k) Savings:
This fact sheet details how to make investment decisions when contributing to a 401(k). It also provides tips on how to find out the fees and expenses associated with different investment options and how to use the 401(k)’s performance data in order to evaluate investment decisions.
–Questions to Ask about Your Investments: This publication’s title basically speaks for itself. It is available for download at the following link: https://www.investor.gov/system/files/publications/documents/english/AskQuestions_brochure_508_9-20.pdf
Plus, a print form of this can be ordered for free at: https://pueblo.gpo.gov/Publications/PuebloPubs.php?PubID=5790 (A Spanish copy of this is also available for print or download)
–Free Financial Planning Tools: Online calculators are a great feature that makes financial planning even more practical. Some of the calculators displayed on investor.gov include:
-Savings Goal Calculator: https://www.investor.gov/additional-resources/free-financial-planning-tools/savings-goal-calculator
-Compound Interest Calculator: https://www.investor.gov/additional-resources/free-financial-planning-tools/compound-interest-calculator
Interest Rate Statistics
https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/default.aspx
U.S. Department of the Treasury
A useful resource for investors interested in tracking interest rates, especially for the yield of stocks and bonds, is located within the U.S. Department of the Treasury website. This information can be found under the ‘Data’ tab and within the submenu ‘Interest Rates’ on this website.
Consumer Information: Investments and Grants
https://www.consumer.ftc.gov/topics/investments-grants
Federal Trade Commission (FTC)
This web resource provides links to information about lower risk investments, such as:
–Investing in Bullion and Bullion Coins: https://www.consumer.ftc.gov/articles/0135-investing-bullion-and-bullion-coins
–Investing in Collectible Coins: https://www.consumer.ftc.gov/articles/0135-investing-bullion-and-bullion-coins
–Investing in Gold: https://www.consumer.ftc.gov/articles/0134-investing-gold
Each link also describes how to avoid scams and fraudulent activity commonly related to these forms of investment.
Retirement Planning:
from the Department of Labor (DOL) and Social Security Administration (SSA)
–Retirement Tool Kit: https://www.dol.gov/sites/default/files/ebsa/about-ebsa/our-activities/resource-center/publications/retirement-toolkit.pdf This pdf publication issued by the Department of Labor (DOL) is one of the best places to begin in planning for retirement. It offers a timeline for planning as well as several web links (within the pdf) from DOL and SSA (Social Security Administration) about mapping out a retirement plan (both for saving for retirement and spending during retirement).
–Savings Fitness: A Guide to Your Money and Your Financial Future https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/publications/savings-fitness.pdf
This is an extensive guide to saving and investing for retirement. It explains how to estimate how much income someone will need for retirement as well as how to budget in order to save for retirement. It also describes different types of investments and explains how diversifying investments can reduce investment risk. This publication is available in both English and Spanish. And can also be ordered or downloaded for free at: https://pueblo.gpo.gov/Publications/PuebloPubs.php?PubID=5664
–Taking the Mystery Out of Retirement Planning
https://pueblo.gpo.gov/Publications/PuebloPubs.php?PubID=5946
U.S. Department of Labor (DOL) and Employee Benefits Security Administration (EBSA)
Available for free as a pdf or ordered in print from the GPO, this handy booklet “has step-by-step worksheets to help someone figure out how much money they need to retire and how to make sure funds will last during retirement”. This publication is best suited for someone who has retired or will be retiring within the next 10 years.
Saving for Children’s College Tuition:
Saving for Education-529 Plans
U.S. Securities and Exchange Commission (SEC)
This web link from the SEC provides a detailed definition about Education Savings plans, also known as Qualified Tuition Plans, or 529 Plans (called this because they are authorized by Section 529 of the Internal Revenue Code). States, state agencies, and educational institutions typically sponsor 529 plans, which encourage parents to start early in saving for their children’s college tuition costs. https://www.investor.gov/introduction-investing/basics/investment-products/saving-education-529-plans
The website goes on to compare 529 plans with prepaid college tuition plans. 529 plans are known for providing tax benefits as parents saving for their children’s future tuitions will typically not have to pay federal and state taxes on 529 earnings, so long as the earnings are used exclusively for college related costs (i.e. tuition, textbook costs, dorm fees) Also, a select amount of states offer matching grants to some participants investing in 529 plans.
*One caveat: Unlike prepaid college tuition plans, 529 plans are low-risk investments or a mix of low and high risk investments, meaning that there is always the risk for loss with a 529 plan as investments are made in stock mutual funds, bond mutual funds, and money market funds. Prepaid plans do not carry this risk because they are simply a savings plan, not very different from a typical bank savings account.
Education Planning
https://www.treasurydirect.gov/indiv/planning/plan_education.htm
U.S. Department of the Treasury
This web link discusses the use of savings bonds used for education (i.e. college tuition, books, etc.) and also describes how interest earned on these types of bonds can be non-taxed depending on a family’s income.
Helping Disabled Relatives Financially:
Disability Benefits
https://www.ssa.gov/pubs/EN-05-10029.pdf
Social Security Administration (SSA)
This pdf publication from the SSA defines basic information about SSA disability benefits, who can apply for these benefits, what qualifies for a disability, and the process for becoming eligible to receive benefits. It also explains how to participate in the ‘Ticket to Work’ program, which allows people with disabilities to still work without losing all of their benefits.
Applying for Medicare/Medicaid benefits to cover health care expenses is also discussed in this publication.
NOTE: Further web links about disability benefits from SSA can be found at the following web site: https://www.ssa.gov/benefits/disability/
More Savings Options, Greater Financial Independence for People with Disabilities
https://www.fdic.gov/consumers/consumer/news/cnfall17/disabilities.html
Federal Deposit Insurance Corporation (FDIC)
The Fall 2017 issue of the FDIC’s Consumer News periodical contained an article about “the federal Achieving a Better Life Experience Act of 2014 (the ABLE Act), which allows many individuals with disabilities to put money in savings accounts that can grow tax-free. The funds saved can be used for “qualified disability expenses,” which may include education, “assistive technology” (such as mobility scooters and computer screen readers), housing, transportation and other types of “supports and services.” Based on September 2017 guidance from the U.S. Department of Health and Human Services, money in these accounts also will not affect eligibility for means-tested federal benefit programs such as Medicaid”.
This is great news for people with disabilities as money can be saved without the burden of taxes.
Spotlight on Trusts
https://www.ssa.gov/ssi/spotlights/spot-trusts.htm
Social Security Administration (SSA)
A great financial tool for people with disabilities and their families is a trust or special needs trust. A trust is essentially “a legal arrangement regulated by State law in which one party holds property for the benefit of another. In certain situations, a trust can be set up for an SSI recipient. A trust can contain: cash or other liquid assets; and real or personal property that could be turned into cash”.
Special needs trust are especially beneficial as they usually do not affect monthly social security benefits received by persons with disabilities. Family members can also be assured that any funds they contribute to a special needs trust will go directly to their family member with a disability without being taxed. This is especially useful for parents who want to ensure that their child’s financial needs will be taken care of when they are no longer able to care for them (i.e. due to illness or death).
Setting up a special needs trust usually requires the services of an attorney, which can be located through local Social Security offices or local bar associations.
Caring for Loved Ones
https://www.investor.gov/additional-resources/specialized-resources/caring-loved-ones
U.S. Securities and Exchange Commission (SEC)
Although this is a short list of tips, each one is practical and useful. One of the tips is: “Avoid dipping into your 401(k) or other retirement savings. This will reduce your nest egg and could set your retirement plans back by many years”. Helping a loved one is a wonderful thing to do, but it is also important to plan in a way that will not drain the assets of both the loved on and the caregiver.
Buying a House:
Shopping for Your Home Loan
https://files.consumerfinance.gov/f/201401_cfpb_booklet_settlement.pdf
Consumer Financial Protection Bureau (CFPB) and U.S. Department of Housing and Urban Development (HUD)
At a length of 71 pages, this booklet in pdf form is one of the most comprehensive resources about shopping for a house and a home loan. It describes the role of a real estate agent and an attorney (who is important for the legal transfer of property), as well as the terms used in a sales agreement when a house is purchased.
The process of buying a house usually involves reviewing and signing a great deal of documents and it is often the absolute largest purchase most people will ever make, so having reliable information about this process is vital in avoiding costly and detrimental mistakes.
This booklet is also useful in how it explains about the types of home loans and programs available for consumers, and the taxes and insurance costs involved.
Shopping for a Mortgage
https://www.consumer.ftc.gov/articles/0189-shopping-mortgage
Federal Trade Commission (FTC)
The web links contained on this web page explain the process of shopping for the right mortgage to suit a consumer’s budget. It is important to compare and negotiate during this process, and to also be familiar with the terms associated with home loans, such as adjustable rate mortgages (ARMs), fixed rate loans, loan origination fees, overages, discount points, and settlement costs. This website does an excellent job of defining these terms along with providing links to information about government-assisted programs like FHA (Federal Housing Administration), VA (Veterans Administration), and Rural Development Services.
There is also a worksheet posted on the following link which provides a checklist of the right questions to ask when shopping for a loan: https://www.consumer.ftc.gov/articles/pdf-0104-mortgage-shopping-worksheet.pdf
Home Loans
https://www.consumer.ftc.gov/topics/home-loans
Federal Trade Commission (FTC)
Again, another resource from the FTC, this web page offers several different links to information about avoiding deceptive mortgage ads, getting a mortgage after a short sale, and some information about paying a mortgage and handling foreclosure.
Help Buying a New Home
https://www.usa.gov/buying-home
This resource defines the types of home loan programs available from the U.S. government. Some of the links posted on this website are from the Department of Veterans Affairs (VA) ,the Federal Housing Administration (FHA), and the Department of Housing and Urban Development (HUD).
Dealing with Debt:
Free Credit Reports
https://www.consumer.ftc.gov/articles/0155-free-credit-reports
Federal Trade Commission (FTC)
Probably the safest and most legitimate place to locate information about free credit reports would be a U.S. government website, such as the above web link from the FTC.
Not all credit report request websites are created equal, and unfortunately, some of these websites can be a scam. To avoid any of these scams, it is best to follow the advice of the FTC and navigate to the following website to request a free annual credit report (which every person has a right to have under the Fair Credit Reporting Act (FCRA): www.annualcreditreport.com
According to the FTC, the three nationwide credit reporting companies — Equifax, Experian, and TransUnion—are required to provide consumers with free credit reports every 12 months. The three companies have converged in providing this service on the annualcreditreport.com website.
Building a Better Credit Report
https://www.consumer.ftc.gov/articles/pdf-0032-building-a-better-credit-report.pdf
Federal Trade Commission (FTC)
Another useful resource from the FTC, this pdf brochure (also available in free print copies upon request—only for bulk orders of at least 25) discusses how a person’s credit affects more than just credit. It also affects job applications, car buying, and applying for a mortgage.
It also explains how to freeze one’s credit (i.e. for the sake of stopping identity theft) ,how to correct errors on credit reports, and what factors can fix your credit score, such as: making payments (even at least minimum payments) on time every time, applying for new credit; the number of credit accounts one has, etc.
Repaying Student Loans
Consumer Financial Protection Bureau (CFPB)
This blog post from the CFPB discusses the use of an Income Driven Repayment (IDR) option to help working adults struggling with paying off student loans. According to the CFPB, “nearly every federal student loan borrower has the right under federal law to make a monthly payment based on their income (known as Income-Driven Repayment or IDR). If you have low or no income, “payments” can even be as low as zero dollars a month. After 20 or 25 years, you may be eligible to have any remaining debt forgiven”. This blog is a good starting place for learning about repayment options. It may even be eye-opening for some because many working adults are not even aware of and do not take advantage of repayment options that may help them pay off student debt.
Dealing with Debt
https://www.consumer.ftc.gov/topics/dealing-debt
Federal Trade Commission (FTC)
There are various forms of debt that one can face, especially as a working adult. This web resource from the FTC provides a roadmap to several web links that explain how to repair debt issues including: credit card debt, back taxes, debts of deceased relatives, and other forms of debt collection. The web page also details how to avoid credit and debt repair and counseling scams.
Finally, there are links to information about legitimate forms of credit counseling, as well as filing for bankruptcy. Hopefully, filing for bankruptcy is a last resort for debt relief, as “U.S. bankruptcy law requires credit counseling before you file for bankruptcy and debtor education after you file”.
Dealing with Debt: Tips to Help You Borrow Wisely and Pay Off Loans and Credit Card Bills
https://www.fdic.gov/consumers/consumer/news/cnfall17/
Federal Deposit Insurance Corporation (FDIC)
The FDIC’s Fall 2017 newsletter in pdf form provides a great deal of practical tips about how to get out of debt. Some of the tips include: “Contact your creditors about easier ways to make your most important bill payments, have a strategy for saving money on interest and fees; consider paying off debts with the highest interest rates first”.
NOTE: The following link from the FDIC posts archived issues of “FDIC Consumer News” that cover a broad spectrum of topics for every life stage. This is definitely a handy newsletter to refer to: https://www.fdic.gov/consumers/consumer/news/index.html
To subscribe to future issues of this newsletter, the following link can be used: http://service.govdelivery.com/service/multi_subscribe.html?code=USFDIC
NOTE: The “FDIC’s Money Smart program is a free comprehensive financial education curriculum designed to help low- and moderate-income individuals outside the financial mainstream enhance their financial skills and create positive banking relationships”. For more information about this program and more study aids available within its curriculum visit the following website: https://www.fdic.gov/consumers/consumer/moneysmart/index.html
A Financial Tool Kit for Life 