Tag Archives: Nathaniel Sillin

Money Matters: Save on Your Summer Road Trip Adventure

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road-trip

By Nathaniel Sillin

Are you packing up your car and hitting the road before this summer ends? You’re not alone. According to a survey conducted by AAA, road trips are the most popular type of vacation for families in the U.S. in 2017. In fact, 10 percent more families are expected to take road trips this year than last.

From driving to the tip of Cape Cod, to seeing the Great Lakes all the way to a drive through the Yosemite Valley in California, there are limitless ways to explore on the road. Whether you’re going to visit family or taking off on an epic adventure, a road trip can be a great way to make travel about the journey rather than the destination.

Before you hit the road, make sure your car can handle the trip. Before you pack up your car, it’s a good idea to take your car to a mechanic and ensure that it’s ready for the drive. Having your car inspected and serviced by a mechanic before a road trip can be a worthwhile investment that could both save you money and prevent an untimely breakdown. Looking into a rental car is an alternative you may want to consider if you’re hoping to avoid wear and tear that might depreciate your car’s value. Consider your options carefully and choose what makes most financial sense for you.

Bumps24-2Pack for bumps along the way. A flat tire or dead battery can put a serious damper on your road trip, especially if you’re not prepared. Keeping a spare tire in your car and checking your tire pressure and tread should be on your pre-trip checklist. Along with your bags, bring a few items for preventive maintenance measures on the road. Having jumper cables, coolant and engine oil handy can save you time and money.

Map out your trip ahead of time. While just jumping in the car and driving without a set destination can be an enticing idea, the spontaneity will likely result in more expenses. Knowing when and where you’ll stop ahead of time, especially for hotels and outings, will help you stick to a budget. If you still crave the more adventurous aspects of a road trip, you can make a general plan for your major excursions and routes, while stopping for unexpected attractions and views as you go.

Comparison shop to keep hotel prices under control. Booking ahead of time and using comparison shopping websites will save you from driving around to find the best hotel deal when you’re already tired from a long drive. If you do have to book last-minute, consider using hotel coupon books, hotel-booking apps, group coupon sites or reward points to save a little more. Camping could be another alternative to booking a hotel, which can be particularly cheap if you already have gear like tents and sleeping bags.

Managing your mileage could add up to major savings. Though fuel prices may generally be down, the cost of filling up your tank can still add up. To make this cost more manageable, you can take advantage of apps that help you find the best gas prices i360bc8585c816b163e56e04354330912xn your area. In certain cases, you may also want to consider renting a more fuel-efficient car. You can save even more by mapping your trip ahead of time to avoid road tollways and construction that might slow you down.

Keep kids entertained to avoid unnecessary stops. Kids tend to get antsy in the back seat, which can lead to more frequent stops and a few impulse buys if you’re not prepared. Packing snacks and meals ahead of time can help you avoid making extra purchases at the gas station, and will often be cheaper.

Also have a plan for keeping your kids entertained. Let them choose a few activates ahead of time, like preparing a road trip playlist or making a game like road trip bingo with sights you’ll be seeing along the way. If you have a tablet or phone, downloading free games, podcasts or movies can be another great option.

Protect your home while you are away. One other way to save on your road trip is to ensure that your home is protected while you’re gone. If you can, ask a trusted neighbor, friend or family member to keep an eye on your house. If you can’t find someone to help, you can call US Postal Service to hold your mail while you’re away. Double check that you’ve locked all doors and windows, including the garage door, and that you’ve set your alarms and put your lights on a timer.

Bottom line: Road trips can be an adventurous and inexpensive way to see the country, but costs can add up if you’re underprepared. Planning your stops and packing to anticipate your needs could help you enjoy the ride rather than worry about the expenses.

Money Matters: Cut the Cost of Elective Medical Expenses

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purchase-health-insurance-policyBy Nathaniel Sillin

Whether it’s a matter of comfort, appearance or safety, there are many medical procedures that you may want or need, but your health insurance won’t cover.

Laser eye surgery may fall into the want category for most people and it can be a hefty investment with each eye costing several thousand dollars. For those wanting to start a family, infertility treatments, which can cost over $10,000, may be closer to a need. Yet most states don’t require health insurance to cover treatments.

Considering the lasting impact that these and other procedures can have on your life, you may not want to seek out the least expensive option. However, that doesn’t mean you should forgo attempts to save altogether. From tax-advantaged accounts to comparison shopping doctors, there are many approaches to safely cutting costs.

See if you could get a tax break. Although tax breaks don’t lower a medical procedure’s price, tax deductions can decrease your taxable income and by using a tax-advantaged account you may be able to pay for some medical procedures with income-tax-free money.

  • Take a medical expense tax deduction. If you itemize your tax deductions, you can get a deduction for your qualified medical expenses that exceed 10 percent of your adjusted gross income. Laser eye surgery and some fertility enhancement treatments may qualify. However, cosmetic surgery doesn’t unless it’s related to a congenital abnormality, disfiguring disease or an injury resulting from trauma or an accident.
  • Use an employer-sponsored flexible spending account (FSA). Some employers offer FSAs as an employee benefit. You can make tax-deductible contributions to the account each year and withdraw the money tax-free to pay for qualified medical expenses, including health insurance deductibles and copayments. However, this approach could require planning as you may forfeit remaining FSA money at the end of each year.
  • Enroll in health insurance with a health savings account (HSA). An HSA account is similar to an FSA in that you can contribute pre-tax money and withdraw funds to pay for eligible medical expenses tax-free. HSAs don’t have the use-it-or-lose-it requirement, but to qualify for an HSA account, you need to enroll in a High Deductible Health Plan (HDHP) and can’t be eligible for Medicare.

Ask your health insurance company about discounts. Even when a health insurance provider doesn’t cover a procedure, members may still be able to save money by going through their insurance.

For example, health insurance generally won’t cover the cost of Laser eye surgery, but your provider may offer a 5 to 15 percent discount if you get the surgery at partner eye care centers.

Health insurance requirements can also vary from one state to another, and you should double-check your benefits before assuming something isn’t covered. Infertility treatment is one of these gray areas, as some states require health insurance plans to provide coverage while others do not.

Compare costs from different providers. Varying medical costs sometimes make headlines when patients find out that a $3,000 medical procedure at a hospital could cost several hundred at a nearby clinic. If it’s not an emergency, there are websites that you can use to comparison shop nearby medical centers and get estimated prices.

Some people also look for savings in other countries. Medical tourism is a growing industry, and millions of people travel outside their home countries seeking lower costs, higher-quality services, treatments that aren’t available at home, a relaxing environment to recover in or a combination of several of these factors. While the U.S. is a destination for some medical tourists, Canada, Southeast Asia, Latin America and parts of Europe are also popular.

Bottom line: Although you may not be able to convince your health insurance company to cover what it considers an elective procedure; you can turn to other methods to save money. As with other large expenses, you can take a dual big- and little-picture approach by looking for tax breaks that lower your effective cost and savings opportunities that can reduce a procedure’s price.

 

Money Matters: Saving for Retirement

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By Nathaniel Sillin

The picture of retirement that many of us have is a post-work period filled with travel and plenty of relaxation. It’s a time when you can finally take up a new hobby, sink into the pile of books and enjoy more time with family and friends.

The reality is that many haven’t been able to save enough money to enjoy this idealized retirement. What might their retirement look like?

You may be working for longer than you expected. Many people undergo a period of “phased retirement” and either reduce their hours or start a new part-time job after retiring from a full-time schedule. Even those who don’t have a financial need may find that they value the activity and connections work brings to their lives. Without savings, continuing to work might not be a choice, but you can still look for fulfilling opportunities.

Continuing within the same profession part-time or taking on related consulting work could be the most financially rewarding route, if it’s an option. Alternatives such as customer service positions with a retailer are popular among some retirees. There are also Internet-based jobs that allow you to work from home.

Social Security could be your sole source of income. Retirees who don’t have a pension or savings and stop working may find that Social Security is their only income.

Your Social Security benefit depends on when you were born, how much you’ve paid into the program, when you start to take benefits and whether or not you’re eligible for a government pension.

Once you start receiving benefits, you’ll lock in your monthly amount, although it will adjust to account for inflation. Therefore, deciding when to start taking Social Security benefits is important, as it can impact your income for the rest of your life.

Claiming benefits once you reach your full or normal retirement age, 65 to 67 depending on when you were born, is when you’ll receive 100 percent of your monthly Social Security benefit. Taking benefits early can lock in a lower rate, while waiting can increase the monthly benefit.

In 2017, if you’re eligible for the maximum benefit and start claiming at 62, you’ll receive about $2,153 per month. If you waited until you were 70 this year, you’ll receive about $3,538 per month.

You can use the SSA’s Retirement Age Calculator to see how taking Social Security early, or waiting, can affect your benefit.

You might have to downsize and make lifestyle changes. Moving to an area that has a significantly lower cost of living could mean the difference between living with financial challenges and having a comfortable retirement. Some people look for less expensive areas close to family members or even an expat community in a different country.

If you decide to stay in the same area, a smaller home can lower your property taxes and maintenance costs. You can also take any profits from the sale of a larger home and pay off debts or build an investment portfolio.

Housing aside, there are many ways to downsize your lifestyle, such as selling a vehicle, shopping at secondhand stores and cutting back on monthly entertainment expenses.

One helpful part of aging is you’ll be eligible for all sorts of new discounts and benefits. Look online for lists of stores or organizations that offer senior discounts. You can use the National Council on Aging BenefitsCheckUp to see which benefits you might be eligible for based on your ZIP code and personal information.

Bottom line: Many aging Americans don’t have enough savings to fund their lifestyle through retirement. Deciding when to take Social Security benefits and where to live are two of the most pressing questions on the horizon. No matter what you choose, you may need to supplement your income with part-time work and look for ways to significantly lower your cost of living to enjoy retirement.