Consumers paying more at the pump
A recent rise in the price of crude oil is partially responsible for a rise in gasoline prices, says AAA Auto Club South. Crude oil has fetched as much as $77.17 a barrel on the New York Mercantile Exchange. The euro has risen against the dollar, and helped push the price of crude oil higher by increasing its appeal as a commodity.
These trend are a sign that the economy is on the rebound, and that the price of crude oil will increase even more, as consumer demand steadily increases.
Retail gas prices are expected to keep rising. So what can you do to save money at the pump?
First of all, combine your errands. Several short trips taken from a cold start can use twice as much fuel as one trip covering the same distance when the engine is warm.
Consider carpooling. Many cities make it easier by matching up commuters. And last, you can ride the bus, your bike, or even walk.
When driving, make sure to stay within the posted speed limits. Gas mileage decreases rapidly at speeds above 60 miles an hour. Avoid unnecessary idling. It wastes fuel, costs money and pollutes the air. Turn off the engine if you have to wait. Avoid jackrabblit starts and stops. You can improve in-town gas mileage by up to 5 percent by driving more gently. Use your overdrive gears and cruise control when appropriate. They can improve fuel economy when you’re driving on the highway.
Be sure to keep your engine tuned. It can increase your gas mileage by an average of 4 percent. Change your oil regularly. Clean oil reduces wear caused by friction between moving parts and removes harmful substances from the engine. You can improve your gas mileage by using the grade of oil in your owner’s manual and by changing it according to schedule. Also check and replace your air filters regularly. This can increase your gas mileage up to 10 percent. Keep your tires properly inflated and aligned. It can increase your mileage up to 3 percent.
Remove stuff you don’t need from the trunk, back or bed of your vehicle. An extra 100 pounds in the trunk can reduce fuel economy by up to 2 percent.
And last, follow your owner’s manual recommendations for the right octane level for your car. For most cars, regular octane is fine. Using a higher octane gas than recommended offers no benefit, and costs you more at the pump. Unless your engine is knocking, buying higher octane gas is a waste of money.
Steer clear of gas saving gadgets, and be skeptical of any gizmo that promises to improve your gas mileage. The Environmental Protection Agency has tested a variety of these gadgets and found the majority of them offered no benefit to fuel economy. Some may even cause damage to your cars engine or an increase in exhaust emissions.
Plan ahead to take care of your special needs child’s future
Taking care of your special needs child is a life-long process – even after you’re gone
We all have financial needs, but if you’re the parent of a special needs child, you have some unique considerations. There are legal, medical and financial issues you must give consideration to and plan for. There are three specific areas, according to the experts, that you must give attention to.
First of all, you must think about what will happen to the child after you are gone or if you become unable to care for the child. You will need to be sure the child will continue to receive the same level of care. A guardianship or conservatorship can help with this.
A guardianship or conservatorship is a legal mechanism that grants a designated adult legal power to make decisions for another person. When your child turns 18, he may need a guardian or conservator to manage certain aspects of his life. There are differing types of guardianships and conservatorships. A general guardian or conservator may have full decision-making power, which could include finances, living arrangements and medical decisions.
There are also limited guardianships or conservatorships, in which the powers can be limited to address the specific needs of the individual.
Another big consideration is government benefits. Make sure to structure how your assets will be distributed upon your death so that these benefits won’t be eliminated or reduced. One way to do this is through a trust.
A trust is a legal entity that holds and manages assets for the benefit of a specified individual. A trustee is assigned to manage the interest of the beneficiary. You can set up a special needs trust, which would allow the inheritance assets to become property of the trust and not the beneficiary. This would prevent any interruption in public benefits eligibility.
When planning for your special needs child, make sure to develop a savings plan. You will need to estimate how much it would cost to cover your child’s needs per month, then figure that out for his life span.
While that figure may be daunting, keep in mind that a way to take care of this is through life insurance, with your child listed as the beneficiary.
Can I afford to retire?
Most of us are looking forward to retirement. But the transition can be filled with challenging financial questions – questions for which you may not have all the answers.
For years, when thinking of retirement, the mantra has been, “Save, save, save.” Paying down or eliminating debt is also important. But as retirement time draws closer, you should ask yourself if your nest egg is big enough to retire at the desired time, how much you would be able to spend if you do retire, and whether you should convert some of your savings into an annuity.
For many Americans about to retire, having enough money to maintain living standards has become more difficult. According to The Center for Retirement Research, the national retirement risk index shows that 45 percent of Americans are on track to fall short, by 10 percent or more, of the goal of replacing about 3/4 of their pre-retirement income after retirement.
The reasons for this trend are that people are living longer, outliving their savings; there are fewer guaranteed pensions; low rates of personal savings; and the cost of health care is ever rising. These trends make it difficult to build savings for retirement, and create uncertainty about when retirement can occur.
Before jumping into the deep end of the retirement pool, take a look at your spending habits, and think about how well your retirement income will cover those expenses. Is your mortgage paid off? What are your costs for real estate taxes? What about maintenance on your home? How much are you planning to spend on “extra” things like gifts for children and grandchildren?
Many Americans plan to retire at 65, but in some cases, it is wiser to wait a few years. You can collect full Social Security benefits at age 67, and will thus have fewer years to fund in retirement, if you retire later.
Financial experts agree that you should draw no more than 4 percent of your financial assets during your first year of retirement. After that, the amount can increase with the rate of inflation. Sticking with 4 percent generally gives people enough to live on and ensures that their retirement will last as long as they live.
Social Security is the most reliable income for most retirees. But many supplement that with savings from a variety of other sources. That may include a mix of stock or stock mutual funds and fixed income instruments. Using a chunk of your nest egg to buy a fixed annuity can guarantee a stream of income for life and can provide a measure of certainty in an overall plan. But experts caution that it’s good to wait until you’ve been retired for a period of time first, in order to monitor your income and expenses.
Your home is a major portion of your wealth. Downsizing to a smaller residence in retirement can provide additional funds for retirees. If finances become tight, a reverse mortgage can provide homeowners with steady income in exchange for declining equity in the home.
Retirement involves more than just money. It also involves living your dreams of traveling, spending time with family and doing the things you never had time for while working. And starting with a solid financial plan can help make your retirement dreams come true.
Setting a budget is first step toward financial success
In today’s depressed economy, many families are restructuring their budgets, making cuts where appropriate and tightening where cuts are not possible. But even in the best of times, personal financial planning is just plain smart.
Personal financi
al planning consists of three general activities: controlling your day-to-day finances, choosing and following a course toward long-term financial goals, and building a financial safety net to prevent financial disasters.
You may ask yourself, why should I set a budget. For many, the very word budget has negative connotations. But instead of thinking of a budget as financial handcuffs, think of it as a means to achieve financial success. Budgeting and tracking your expenses gives you a strong sense of where your money goes and can help you reach your financial goals.
In order to set up a budget, you don’t need to invest in fancy software, but a good software program will make the job easier. Many banks now offer free banking and personal finance software. Give your bank a call or check out its website to see if this is the case for you.
If not, you can purchase software fairly inexpensively, or you can choose to forego the computer and revert to good, old-fashioned pencil and paper. Either way, be sure to record all of your expenses, even the smallest and most seemingly insignificant. You’ll be surprised at how it all adds up.
Next, you’ll want to be sure to set your financial goals. Are you saving for a house? A new car? Your child’s college education? Whatever your goal, a budget will help you get there.
When building your budget, make sure to build in a cushion, or safety net, to help when disaster strikes. Whether it’s a car accident, unexpected medical costs or the loss of a job, you’ll want to build in enough of a cushion to be sure you and your family are still provided for.
Once all of these steps are in place, you’ll gain control of your personal finances. You will control your pocketbook…not the other way around.
Helping your parents with estate planning
When you were growing up, did your parents ever tell you that your bad behavior could get you written out of their will? Sure, they may have been joking, but until we all grew up and realized they were joking, it was a pretty effective parenting tool.
For most of us, as kids we just knew that a will was something that our parents didn’t really talk about a lot, but we understood that it meant they would someday hand down things to us and other people they cared about.
These days, most surveys indicate that the majority of Americans rarely discuss 
with their parents. In most cases, adult children have no idea what their parents would want them to do with their “worldly goods” if Mom and Dad were to become incapacitated.
The reasons people create wills are simple: they want to pass on their assets to their family members, rather than let the government get it, they want to keep peace in the family by making decisions about who gets what ahead of time, and they want to plan ahead for the costs of health care should they become incapacitated.
But what if your parents aren’t prepared? If you suspect this is the case, you should broach the subject with them. But how?
Begin the conversation with telling your parents that you want to understand what they want. Ask specific questions about who they want to receive property, how they want their assets divided or spent, and whether they’ve thought about how to avoid high taxes and lengthy probate.
You should make sure to acknowledge that you understand that this is their money you’re talking about. Help them to understand that advance planning means they can maintain control.
Stay focused on your parents’ concerns and remember that this is about them – not your needs or wants. They may be struggling with finding a fair way of dividing up what they’ll leave behind, and would rather not confront these issues. If they are uncomfortable talking with you, recommend they talk with a financial planner.
One way to help them is to talk about your own experience in setting up a will or estate planning. Share with them what you’ve learned, and you could create openings for discussion.
However you go about it, get the conversation started. Tread carefully in bringing this up with your parents. Your motive should be entirely about helping them meet their own needs and wishes. Remember: an inheritance, if you receive one, is a gift, not a right.