Facebook Chat for High School Seniors

Posted on March 22, 2017 by Bigger Than Your Block

To celebrate Financial Education Month Bigger Than Your Block will offer a free Facebook chat with high school seniors. Shay Olivarria the author of “10 Things College Students Need to Know About Money (2nd edition)” will be on hand. The one hour chat will allow students to ask any questions they have about personal finance including:

Choosing a credit union.
Opening a checking account.
Opening an investment or retirement account.
Accepting financial aid monies.
Locating scholarships.
Creating a spending plan for college.
Anything else you can come up with!

Wednesday, April 5th 6pm PST

#BTYBChat for High School Seniors

Join the chat

New CA Bill Forces All Employees to Invest for Retirement

Posted on February 14, 2017 by Bigger Than Your Block

Senate leader Kevin de León has put forth a bill that would require all California companies, that have at least five employees, to offer their own retirement investment plan or enroll workers in the new California Secure Choice Retirement Savings Program. Though employees could always invest for retirement using an IRA, while getting almost the exact same benefits of the Secure Choice program, many people haven’t taken advantage. As Time Magazine says, ” .. when it comes to putting money away, an employer nudge really matters: 90% of those with workplace plans save for retirement vs. only 20% of those without one.”

What bill does:

Requires that employers with more than 5 employees offer some kind of retirement investment plan to employees.
Offers a way for employees to invest for retirement directly from their paycheck.
Starts employee contributions at between 2% and 5% of their paychecks (the exact details haven’t been hammered out yet).
Automatically enrolls employees (about 6.8 Californians) unless the employee chooses to opt out.

What the bill doesn’t do:

Does not require employers to “match” contributions or provide funds for the retirement of employees.
Does not assume the risk of investing (investors could lose money).
This program does NOT provide assured payouts during retirement (it is NOT a pension plan).

San Jose’s Mercury News:

At first the money would be invested in safe, low-yield U.S. Treasury notes. After three years, the funds would likely shift to a diverse portfolio of stocks and bounds. These options would be developed by the Secure Choice Retirement Savings Investment Board. The accounts would likely be Roth IRAs, a mode that allows for tax-free withdrawals upon retirement.

The amount of money deducted from a worker’s payroll would escalate over time, up to 10 percent, but employees would be able to set the amount themselves.

Time Magazine:

All told, at least 30 states are in various stages of setting up retirement plans—some mandatory for employers and some voluntary—according to the Georgetown University Center for Retirement Initiatives.

At any rate, the Secure Choice Retirement Savings Plan is heading to an employer near you. I’m waiting to hear more about the specific details but this is coming. Do you think it will encourage more employees to invest for retirement? Head over to the Bigger Than Your Block Facebook page and give your opinion.

Retirement Survey 2016

Posted on June 9, 2016 by Bigger Than Your Block

Are you investing for retirement? Do you use a work-sponsored plan? An individual retirement account? Will you have enough money to retire on?

Take our anonymous 9 question survey to help us learn how to serve you better. We don’t collect any identifying information from you. We just want to know about the trends in retirement so we can plan webinars, books and speaking events to help you plan.

Thank you for taking a moment to share. Don’t forget to invite others to share as well.

Shay Olivarria is the most dynamic financial education speaker working today. She speaks at high schools, colleges, and companies across the country. She has written three books on personal finance, including Amazon Best Seller “Money Matters: The Get It Done in 1 Minute Workbook”. Shay has been quoted on Bankrate.com, FoxBusiness.com, NBC Latino and The Credit Union Times, among others. To schedule Shay to speak at your event visit www.BiggerThanYourBlock.com.

31% of Americans Have No Retirement Investments – Tips for Starting

Posted on August 11, 2014 by Bigger Than Your Block

“Nearly a third, or 31% of U.S. adults said they had no savings or pension to help them afford retirement, according to the Federal Reserve Board.” – CNN Money

I want to say that I’m surprised, but after working with students, employees and retired folks for the last seven years …. this is what I already know. If you’re part of this group, you’re going to be in for a HORRIBLE surprise come “retirement age”. Either you won’t be able to retire at all or the money from Social Security will only be enough for you to afford a room in your kid’s house and no fun, but it’s not too late. Here are my tips for creating a retirement plan and sticking to it … at any age.

0 – 16

Think it’s too early to start thinking about your child retiring? Not so. Though you can’t take advantage of tax-deferred plans like IRAs (you’re kid probably has no earned income) you CAN put a few dollars away every month in a regular investment account, buy individual shares of stock or purchase savings bonds. Let’s assume that you contribute $50 per month (or $600 per year …. birthday … Christmas … ) to any one of these strategies and that the investment earns 2% per year on average (some years more, some years less). By the time that child is 67 years old, that investment would be worth $84,584.31. Imagine how much money it would be worth once your child started contributing too.

16 – 24

By this time you are probably working, but not making much money. You might think that $50 per month won’t amount to much anyway so why bother? Because that $50 per month, or more, could end up being $432,992.84! Once you’re working you have earned income and can take part in wonderful retirement investing plans like 401k/403b, if your job offers them, or Individual Retirement Accounts (IRAs), if your job doesn’t. You put in $30,600 over your working years (16 to 67) and you’ll end up with a half-million dollars … easy! Read more about this in my book 10 Things College Students Need to Know About Money.

25 – 40

Yes! Now, we are in the prime earning years! Not only do you have a job, you probably have a half-way decent job. No more ramen for you! It’s time to take it up a notch. If you have been investing (since you have that good job) increase that contribution. If you haven’t begun contributing yet, it’s time to start.

You might think that you don’t have any spare money to invest or you might not know how to invest (read Money Matters: The Get It Done in 1 Minute Workbook), but it’s easier than you think, especially if your company offers a retirement plan with a company match. On your own, the average American can find $50 worth of spare change every month. PLUS, think about the ways that you waste a few dollars here and a few dollars there every month. Assuming a monthly $50 investment, starting at 30 years old, into a tax-deferred retirement account could still net you $136,725.48. Bump that up to $75 per month and you’ll be looking at $205,088.22. Not too shabby!

40 – 67

If you’re here then you are squarely looking at retirement …. perhaps. In Money Matters: The Get It Done in 1 Minute Workbook I have a worksheet that asks you to take a look at where you are and where you’d like to be. If you’re path is not heading in the direction you’d like it’s not too late to change.

You’ll need to do a little more to catch up, but it’s not impossible. A monthly $200 investment with an 8% return could turn into $229,797.95. Use the Social Security Administration’s estimator to find out how much you’ll get per month once you’re retired. You may find out that you need to work a few extra years. You may find out that you’re fine. Ether way, knowing is better.

If you haven’t begun investing for retirement yet, don’t be downhearted. The time is now. Don’t wait another day. Contact Human Resources at your job and find out how to start investing. Find a fee-only planner and take a comprehensive look at your financial situation. Buy a book to learn the basics and get started.

Working hard won’t get you what you want. Working smart will.

It begins now.

Invest for Retirement NOW

Posted on March 16, 2014 by Bigger Than Your Block

“Twenty-one percent of those surveyed who have not retired have saved nothing for retirement and 44 percent have saved less than 10 percent of their salary.”

This quote is from Financial Advisor Magazine talking about a survey done by TIAA-CREF. How do people think that they are going to live in retirement? Do they plan on retiring?

Regardless of how old you are, it’s better to have something rather than nothing. Take a look at how much the Social Security Administration will pay you in retirement and you tell me if you can afford NOT to invest an extra $50 per month in your 401k, 403b or IRA.

Let’s take a look at the numbers, shall we?

Start Investing Per Month % Return Value at 67

18 $50 9% $536,841.50

21 $50 9% $408,642.74

30 $50 9% $178,618.62

40 $50 9% $68,888.51

50 $50 9% $24,125.50

It’s pretty simple:

If you have a 401k or 403b at your job you probably have a match. Investing a few dollars every pay period lowers your tax base (instead of paying Uncle Sam you invest in yourself) and your company will contribute a few coins to every dollar you invest. Start early. Invest often. Check and see how much contributing $50 or $100 each pay period will change your take home pay. There won’t be much change in how your check looks every two weeks, but it could change how your retirement looks.
If you don’t have access to a 401k or 403b then open an Individual Retirement Account (IRA) at a brokerage house that you trust. You have to fill out a two page application and send over a voided out check. You can open many accounts by promising to contribute at least $50 per month. That $600 per year could grow into 5 or 6 figures using compound interest. Start early. Invest often.

If you are thinking about investing and you’re not sure where to start:

If you are a member of a credit union: contact Balance for FREE help.
If you have an Employee Assistance Program (EAP) at your job: contact the EAP for FREE help.
If you do not have access to these: find a fee-only financial advisor for help.

You can create the life you want.

You are powerful.

Go get it.

PEACE,

Shay

Order Money Matters on Amazon.com

Retirement Calculator – Are You Investing Enough?

Posted on January 24, 2013 by Bigger Than Your Block

Click to go to the calculators.

FINRA has a new retirement calculator to help you understand:

The max you can invest.
If you’re investing the max.

There are only 4 inputs so go on over to the FINRA website and see where you;re at.

Know the Fees that Eat Away at Your 401(k) on Mamiverse.com

Posted on October 17, 2012 by Bigger Than Your Block

My latest article on Mamiverse.com talks about the new rule that says that each person that has a 401k must get a statement that can actually be read! Lol Read to find out where the fees are going, the types of fees involved and why it matters. Find the complete article online at Mamiverse.com.

Employees that invest in their company’s 401(k) plan should be able to understand their statements. A new rule from the Labor Department will, for the first time, enable many investors to understand how much of their investment dollars are going up in fees. “I know it’s there and that there’s money involved for me, but other than that I really don’t know how to access how much I have etc.,” says Lupe Zuniga of Waco, Texas. Each person that has money in a 401(k) should have received a statement by August 30 detailing how much money they have invested in which funds and how much they pay for that privilege.

Read the whole article here.

Quick Facts for Latinas About 401(k)s on Mamiverse.com

Posted on October 5, 2012 by Bigger Than Your Block

My latest article on Mamiverse.com is below. Women of all ethnicities need to read this article. Too many of us are putting money into our 401ks and are not sure exactly what’s happening to the money we contribute or what to do with it once we leave jobs. Read the whole article on Mamiverse.com.

A new study from the national Centers for Disease Control and Prevention says that most Latinas will live an average of 83 years. That’s great news until you start thinking about how you’ll live once you stop working. According to the Ariel/Aon Hewitt Study 2012, Hispanics have considerably less—35% less—money invested than Asian-Americans and Whites. I’ve heard Latinas tell me that the number one reason they don’t actively invest for retirement is that they don’t understandhow to do it.

So, here are a few quick facts about the most common way to invest—with your company’s 401(k) plan.

WHAT THEY ARE
A 401(k) is a retirement planning option that, at most jobs, has taken the place of pensions. The role of a 401(k) is to invest your money (or “contribution”) in the stock market in hopes that you’ll have enough money to retire on when the time comes.

Read the other 3 here.

Retirement Survey

Posted on September 22, 2010 by Bigger Than Your Block

I’m working on a new article on retirement savings and I’d love to have your help. I’ve put together a really short (9 questions) anonymous survey on retirement planning. Please take a moment and share your experiences.

Also, I’d love it if you would pass it on. The more data, the better.

Thanks!

Who Controls Your Retirement Account?

Posted on June 22, 2010 by Bigger Than Your Block

I was reading about how the rules that govern your 401k and IRA are created in Financial Advisor and it kinda scared me. I think that we should all be saving for retirement. The part that scares me is when there are laws enacted to make sure we do:

While at Brookings, Iwry began developing the auto-IRA, which would require employers without retirement plans but with more than 10 employees to withhold a portion of each employee’s pay—similar to a payroll-tax withholding—and deposit it into an IRA. Employees could opt out.

Be an adult
You probably realize that I’m all for small government and personal responsibility. People should be educated about how and why to save for retirement and then left alone to make their own choice. If they end up eating cat food because they haven’t saved a penny… that’s not my fault. The reason that many law makers want to make laws that force people to save is because they think we’re not smart enough to comprehend the importance of saving and investing for our own well being. If we don’t start making different choices we’ll either end up a) being forced into programs that we don’t understand. Obviously if we understood them, we wouldn’t need to be forced. We’d run to our financial institutions and set up our automatic retirement contributions as soon as we earned our first check from the mall or b) we’ll opt-out of those forced plans and become part of the social welfare system set up for people that couldn’t handle being an adult and making adult decisions.

Make good choices

What is more, the lower-income workers are more likely to withdraw money before 59 1/2 for emergencies and living expenses, and then owe a 10% tax penalty on the withdrawal. “They might wind up with less after taxes than if they had never contributed at all,” says Ms. Ferguson.

That means that workers that don’t earn that much in the first place are putting a few dollars aside and then pulling them out before they should, triggering extra penalties. I understand that sometimes things happen that we can’t control, however we can control our responses. Do you have an emergency account set up to deal with life’s emergencies? Do you have your retirement contributions going to your 401k or IRA account automatically so you can pay yourself first?

One day you’ll be old.
One day you’ll be old. You can choose to prepare for that eventuality and feel the sense of pride and accomplishment that comes with that or you can choose to do nothing and hope that you can get by on whatever money you get from social security every month. Are you willing to make decisions that will set you up for a comfortable retirement? Will you make small sacrifices now to have future gains?

Whatever you’re life ends up being, it’s that way due to your choices.

Choose wisely.

Why You Need a Spending Plan

Posted on February 10, 2010 by Bigger Than Your Block

Have you ever pulled a $20 out of the ATM and two hours later you have no idea how you spent the money?

That’s why you need a spending plan. Most of us spend small amounts of money everyday on things that we don’t event remember buying. That $1 soda at work takes up $240 a year. How many times have you walked into a store to grab 1 thing and come out with waaaaaay more than just 1 thing? All this extra spending on small things is part of the reason you may be in debt.

Having a spending plan is a way to help you recognize what you’ve been spending your money on and what changes you may want to make. It works like this:

1) Go through your bank statements and credit card statements. Put the money you spent in categories so you can see what you spent your money on. I use a software program because it’s easier than writing everything down. Notice all the money that you spent on non-essential items.

2) Don’t freak out when you see how much money you waste every month.

3) Make a list of your fixed expenses; the bills that you have to pay every month. For example, your rent/mortgage, lights, water, gas, car insurance, credit cards, etc.

4) Make a list of your variable expenses; the bills that you have to pay sometimes. For example, your yearly payment for your magazine subscriptions, your quarterly tax payments if you’re self employed, etc.

5) Make a line on your list that says, “me”. You are going to start paying yourself every month just like you pay everyone else. Creating, or adding to, an emergency fund is one of the main reasons you need a spending plan. Take all that money you’ve been wasting and put it into an account that you can use when you’re in a jam. I suggest trying to build up 6 – 12 month’s worth of income. When an emergency comes, and there will always be an emergency, you’ll be ready.

6) Make a line that says, “retirement”. I don’t care if you haven’t even opened a retirement account and you can only put $5 in it. You’re going to start putting money aside for your old age. As your account swells with cash you can take time to think about where you’d like to invest it. The first step is to start. The more you put away now, the less you’ll have to worry later. Compound interest will make a huge difference in your retirement lifestyle.

7) Whatever money you have left, go wild! You know what your fixed expenses will cost every month, what your upcoming variable expenses will be, you’ve put money away for your emergency fund, and you’re started contributing to your retirement account. The money left over is called your “discretionary income”. Take this money and enjoy yourself knowing that you’re doing everything you need to be doing to become, or stay, financially stable.

If you find that you don’t have enough income to cover all your expenses listed on your spending plan, then you have two choices. You’re going to have to increase your income or reduce your expenses and no, cutting out saving for your emergency fund and/or your retirement fund are not options.

You are responsible for your life. You have the power to be financially stable, or not, by making smart choices…… and that’s why you need a spending plan.

PEACE

Buy Money Matters: The Get It Done in 1 Minute Workbook

Posted on January 18, 2010 by Bigger Than Your Block

Are you looking to support your local bookstore? Awesome! You can find my new book Money Matters: The Get It Done in 1 Minute Workbook at these fine stores:

Smiley’s Bookstore
Carson, CA

Zahara’s Books N Things
Inglewood, Ca

Want to purchase online? Get your copy at Amazon.com.

I’m scheduling Meet & Greets now. Come chat with me at:

Feb. 6th Smiley’s Bookstore Carson, CA
Feb. 27th Malcolm X Library San Diego, CA
April 3rd Zahara’s Books N Things Inglewood, CA

See you soon!

Bigger Than Your Block

Financial education for all.

Tag Archives: retirement