New Years Financial Resolutions: Save on Insurance

New Years is a great time to access your finances and start taking the steps necessary to improve your financial position. You should map out a plan for the year to raise your income, lower your expenses, and avoid traps such as splurging if you receive a healthy tax refund. This can really set you back in the long run.

Insurance costs are a major expense. Whether it is insurance for your home, your car, your health, or life, or other types of insurance, these costs can really add up. This is especially true as health insurance rates rise for many Americans. Cars are also a major insurance expense. Based on a survey commissioned by insure.com, the average American driver spends more than $1,500 annually on auto insurance.

Comparison Shop Regularly for the Lowest Rates

When you are purchasing insurance, it is important to get quotes from different companies so you can compare rates. There are insurance matching websites that allow you to compare multiple rates. You want to get the best car insurance you can for the money without compromising the amount of coverage. But price alone should not be a deciding factor.

Just because your policy is for 6 months or 1 year doesn’t mean that you can’t change it during that premium to another that offers a lower price. Prices fluctuate regularly and there is no penalty for canceling before your policy term expires. You could save hundreds of dollars on your policy by just taking a few minutes of time to research companies and check rates.

Also, think about what coverage you really need. Each state has different laws on the minimum requirements but there are certain types of auto insurance you may be able to skip out on such as gap, collision, or comprehensive, depending on your vehicle and your particular situation.

Consider Claims Service, Financial Strength and Discounts

In the case of auto insurance, be sure to examine the company’s level of claims service and A.M. Best Rating. These are important factors beyond just their rates. You want your company to quickly and reliably process your claim. Also be sure to see what discounts you qualify for as many insurance companies offer a wide range of rate reductions.

These discounts include having anti-theft devices, being a “good driver”, good student, being in the military, car safety features, taking a mature driver’s improvement course, insuring multiple cars, and having multiple policies with the same company, but vary by company and by state. These savings can really add up and help improve your financial health for the new year.

This guest post was provided by financial writer Jason Nelson.

3 Questions to Ask Yourself Before You Retire

Retirement is an important milestone in a person's life that ironically approaches much faster than people expect, largely because it always seems so far away. But whether your retirement is two years away or twenty, it's never too late (or too early) to start seriously thinking about and planning it. A little planning is always better than no planning, and unless you want to work until the day you die, retirement is something that requires planning. 

The problem for most people when thinking about retirement, even if it's imminent, is that they don't know where to start. The basics of retirement planning start with three questions about your ideal retirement; the answers to the questions should provide a schematic you can follow to help you get there. Granted, you might have to make adjustments and compromises depending on your current situation, but the questions will get you thinking and planning, which is the most important part.

When?

The first questions you need to answer is when you want to retire. If you dream of retiring at or before 60, that will drastically affect the time you have to save and invest, especially if you are already past 40 or 50. An early retirement also means that you'll have to save more so that you can provide for yourself for 20 or 30 years without working.

Knowing when you want to retire will tell you how you need to spend your remaining years before retirement. If you're still young, you'll know that you can regularly contribute a moderate amount to a savings fund and set yourself to hit your target date; if, however, you are older, you might have to push your date back, or find a way to frequently make larger contributions to your retirement fund.

How long?

While similar to the first question, this question is more concerned with how long your retirement will last — in other words, how long you expect to have to provide for yourself without working. Most banks planning to live to 95, just to be on the safe side. It's always better to have more money than you need, rather than not enough, especially when you are over 80.

How much?

This is where numbers are important: how much money will you need? To answer this question you'll need to know a few other things as well:

• Where do you plan to live? 
• Do you plan to travel? How frequently? 
• Do you want to live in luxury? 

The kind of retirement you want will determine how much you'll need, as does your target retirement date. Obviously you'll need to save more if you want to move to an upper-class neighborhood, travel the world for years, and do it all first-class. A standard figure is 80% of your pre-retirement income, but you will have to decide for yourself exactly how much you'll need, based on your ideal plan.

Other factors that you need to consider are your current savings and investments, as these will grow over time and give you cushion. The main idea is to figure out how you want to live after you retire so that you know how you need to live before you retire.


This guest post is contributed by Angelita Williams, who writes on the topics of online courses. She welcomes your comments at her email Id: angelita.williams7 @gmail.com.

Walmart Offering Free Tax Preparation

Image via WikipediaStarting this week, free preparation of simple tax forms will be made at over 3,000 Walmart Stores nationwide. Walmart is partnering with H&R Block Inc. and Jackson-Hewitt Tax Service Inc., to set up kiosks inside its stores where customers can have their tax returns completed by trained preparers.

Last year, H&R Block offered free preparation of 1040EZ forms. To retain market share, H&R Block has offered this free service to keep customers coming through it's doors. The company had been struggling over the last few years and this strategy has worked well to keep H&R Block in the fore front of tax preparation.

H&R Block will only offer their free preparation of 1040EZ forms at Wal-Mart through Feb. 29. Block will have kiosks in about 250 Wal-Mart stores. The Feb. 29 cut off point is not much of a inconvenience because the Internal Revenue Service has reported that 40 percent of the 133 million individual returns filed were submitted before the end of February.

Jackson-Hewitt will provide free preparation of the simple forms throughout the tax season at about 2,800 Wal-Mart stores, up from 2,000 last year. Some of its retail outlets may also offer free 1040EZ prep, but doing so is not companywide policy.

While the ways to receive your refund are still the usual ways: direct deposit into a bank account or to a prepaid card, or a mailed check. Direct deposit has gained popularity because it shortens the period to a ten day time period. The I.R.S reported that last year 74 percent of refunds were sent via direct deposit.


For those that are bank less, Walmart is offering prepaid cards that the refunds can be deposited onto. There are fees but if the refund is over $1,000, then no fee is charged. If you have a I.R.S. refund check Walmart is happy to cash it for a charge of $3 for checks up to $1,000 and $6 for checks that range above $1,000.

Walmart has made filing the average tax return very simple and convenient for those that have a simple return. Thanks Walmart.

Target Redcard Gives You A 5% Discount at Target Stores

Image by smcgee via FlickrThe retail market is very competitive. Brick and mortar retailers have to compete with cost cutting online stores. Big box stores like Target, Walmart, and K-mart are fighting for the consumers dollar. How does a retailer attract and keep customers coming through their door? Target has come up with way, it's something called the Target REDcard.

The Target REDcard is a debit card that links to your checking account. It works just like any other debit card but it can only be used at Target stores. When you use it at Target you receive a 5 percent discount on every purchase.

How does it work for the average consumer?

• The immediate benefit is a 5 percent discount on every purchase. 
• There will never be any fees like overdraft or any penalties that credit cards can give you.
• There is no credit check, you only need a checking account to be approved.
• You can never get into any debt because you can only spend the money you have in your checking account.
• If you use the card on the Target website, shipping is always free.
• If you have your prescriptions filled at a Target Pharmacy, after 5 prescriptions you receive a 5 percent discount for shopping on one day, on top of the Redcard 5 percent discount.

What's the Downside on having this card?

• It's not credit. You have to pay in full out of your checking account. It's like paying cash.
• Being it's not credit, your good paying record won't be reflected on your credit report.
• If you have a checking account and you already have a debit card. Why have another card?
• Doesn't work at Target Mobile.
• Having the hassle of carrying another card. 
• Linking another card to your checking account.

Should you get this card?

If you rarely go to Target, the 5 percent discount won't amount to much. If you do go to Target often, then this card makes sense. The 5 percent discount coupled with free shipping at Target.com is a substantial savings and is another good reason to get this card.

Switching from credit to debit cards is a big part of a plan to use your money more wisely. With a Target REDcard you're helping yourself stay away from new debt and it's helping you stay on your budget. Get the card.