Optimize Your Health Insurance Plan

Q: It’s open enrollment season for health insurance. What should I compare policies on to make sure I get the best one for the price?

A: Generally, you want to look at price, coverage, and ease of use. Clearly, affordability should weigh heavily in your decision, but don’t let that be the sole criteria. If you have a preferred doctor, make sure he or she accepts the plan you’re considering. Also, look at the prescription drug costs in the plan, the deductible you have to pay before benefits kick in, and the overall amount you can be expected to shell out in any given year…

Read the rest of this post on Health.com

Optimize Your Health Insurance Plan – Healthy Living – Health.com.

Tips for Splitting Assets: When Entrepreneurs Divorce

The owner of the Los Angeles Dodgers, Frank McCourt, is in divorce talks with his wife Jamie, the CEO for the team. This power couple is one of 1.2 million husband-and-wife teams who run a business together, according to the National Federation for Independent Business. And when couples split, often so can the business.

John Moores sold the Padres earlier this year as a result of the petition for divorce his wife, Becky Moores, filed a year earlier. They then divvied up the proceeds.

It is rare that couples who divorce can remain doing business together. So, what should you do with your business assets if you divorce from your spouse with whom you do business? Here are some tips.

Buy the other spouse out. This is a good choice if one spouse started the business, or is more passionate about it. You can trade his or her stake for other assets, such as equity in the home or a greater share of the retirement accounts. Or you can take out a loan to pay cash.

Sell it and divide the profits. Some small businesses are tough to sell, especially in today’s economy, but if the company operates profitably, then it’s possible to find a buyer. Start seeking buyers sooner rather than later before any divorce animosity can tour the business sour.

Split it in two. This only works well if the company has separate units that can be spun off from one another. If you go for this option, you may want to have a valuation done to determine the worth of each unit. Because once the company is split and the divorce is final, it will be a lot harder to go back and make a claim to other business if yours fails and your ex-partner’s takes off.

Speed up the succession plan. Since many family businesses often name children as successors, a divorcing couple with adult children may be able to choose this option. Each spouse could possibly stay on as a silent partner with a small stake in the business, so long as you are willing to let your children run the business. This is hard to do even when divorce is not part of the picture!

10 Ways to Save on Your Purchases — Reader Participation Required for Success

A step toward becoming debt free is to cut your spending and maintain your new lifestyle. Some people feel it is too hard, say, to stop smoking, cut coupons and then remember to use them, or do your own home maintenance. So start with what you can handle.

You know your own vices and where you waste money when you could be saving. I can tell you what to do, but sometimes in order to motivate yourself, you need to take charge. As a result, I am giving you an exercise to determine how you can save on purchases or cut your overall spending for your own household. Come up with 10 ways to save and share part or all of your list with other readers by leaving a comment. Here’s a list of three to get you started.

Charge only what you can pay off. Getting a low interest rate on your credit cards can save you hundreds, even thousands of dollars a year in interest, but you can save even more if you don’t carry a balance. When you make purchases on your credit cards, be aware what you have in your checking account. If you will not be able to pay off the entire balance at the end of the month when the bill is due, then don’t buy the item.

Choose take-out or eat at home. Have you ever paid more than $5 for an omelet when you know a dozen eggs cost under $2? What about $15 for a plate of pasta when a box of Rigatoni and a jar of Ragu at your grocery store would feed at least four people and cost you less than $7 total? Eating at home can save you a ton of money. However, if you feel you really crave restaurant food, try buying take-out, and save on tips. You can even double your savings by getting take-out at lunch time when many restaurants charge less for the same meal they serve during dinner hours. Just save your lunch take-out for dinner.

Buy generic brands. Buying generic brand products, especially staples such as cereal, sugar, flour and other items can save you several dollars at the checkout lane without compromising quality or taste. Opting for generic prescription medicines are also a great way to keep money in your pocket.

3 Steps to Back-to-School Clothes Shopping on a Dime

Found on the Racks of Crossroads Trading Co., July 11 in Sacramento: "Anchor Blue" shirt: $10.50; "BDG" shorts, $11.50; Herringbone hat, $8.50; Nike Dunks shoes, $26.50.

Unless your child attends a private or parochial school with mandatory uniforms, you’re probably clothes shopping right about now to find new outfits for the kids to wear this school season.

Discount stores such as Target and Wal-Mart are a good place to head, however, consignment and resale shops are even better if you’re looking to save a buck. Here’s how to get the most for your money in three easy steps.

1. Get Rid of the Old. If your children are need of new clothes this Fall, that could be in part because they outgrew last year’s clothes. Raid your child’s closet to find those items that are too small, but don’t contain tears or several missing buttons or broken zippers. The same goes for shoes. Pile as many of these items into bags and boxes as you can.

This "Moth" sweater was priced at $13.50 on Aug. 6 at the Crossroads Trading Co resale shop in Chicago's Lincoln Park

2. Find a resale shop near you. Whether it’s a consignment or exchange shop, look for a store near you that sells and buys gently used clothing. These places will determine the resale value of the items you just pulled from your closets and storage and will offer you a percentage of that value in cash or as store credit in exchange for your items. Some shops with locations nationwide include Buffalo Exchange, Plato’s Closet, Once Upon a Child, or Crossroads Trading Co.

3. Purchase Gently-Used Items. With the cash you earned from your trade-ins, purchase stylish clothes that fit from these same shops. Some, like Plato’s Closet and Crossroads, carry a lot of name brand items.

Involving children in the resale shopping experience teaches them about the importance of budgeting.

Tip: Involve your child in the process. Whether it is a young school-ager or a teenager, have your child help select items to sell. Set a shopping budget based on the money they receive from the store, supplemented by a few dollars from their allowance or money you paid them for participating. Let them go shopping within this budget. You’re not only teaching them a valuable lesson, but quickly you’ll see how unimportant certain items become when they have to spend their own cash.

Savings for Back-to-College

Although the amount of money expected to be spent to furnish college dorm rooms and off-campus housing is up 3 percent to $618.12 per student, overall college spending is expected to decrease to nearly $30 billion, according to the National Retail Federation.

This decrease actually means the college-bound shopper can get more for their money, as retailers slash prices and ramp up marketing to lure buyers.

TIP: Start your comparison shopping online. Retailers are maintaining dedicated websites that will make the comparisons that much simpler. Here are two of the biggest retailers with college subsites:

TARGET
Target has www.target.com/college. At this site you can shop by price category. “Under $20,” “Under $30,” etc., at the click of a button. There is also a color-coded, downloadable checklist that lets you mark off all the necessities, such as dental floss, can opener, night light, as you purchase them. You can even shop sections by gender. Don’t forget to click on “Daily Deals” to find sale items not otherwise available online or in the store.

WALMART
Walmart has www.walmart.com/college. At this discounter’s site is interactive. There is a Q & A section, a photo of the day of student shoppers, and even a tip of the day. (Today’s: If you can avoid it, don’t buy textbooks from the college bookstore. Check sites such as half.com and others that allow you to buy used books at half the cost.) Wal-Mart also has checklists, include a road trip safety check list, as well articles. For further savings, check out its “Value Bundles” on small appliances, desk sets, electronics, etc.

Back-to-School Season Sees Cautious Spenders

Americans are expected to spend $47.50 billion to send kids K-12 and college-bound back-to-school equipped with essentials, gadgets and clothing.

The Back-to-School shopping season is underway. Americans are expected to spend $47.50 billion to send kids K-12 and college-bound back-to-school equipped with essentials, gadgets and clothing.

The average family with students in grades Kindergarten through 12 is expected to spend $548.72 on school merchandise, a decline of 7.7 percent from $594.24 in 2008, according to the National Retail Federation.

The economy is having a major impact on back-to-school spending. Four out of five Americans (85%) have made some changes to their back-to-school plans this year as a result, according to a consumer survey released by the National Retail Federation.

Some of those changes impact spending:

• 56.2 percent of back-to-school shoppers are hunting for sales more often
• 49.6 percent are planning to spend less overall
• 41.7 percent purchase more store brand/generic products
• 40.0 percent are planning to increase their use of coupons.

In looking for deals, Americans are heading mostly to discount stores and drug stores.

• 74.5% are shopping discount stores
• 54.4% are shopping drug stores
• 41.2% are shopping office supply stores
• 22.2% are shopping online
• 18.2% are shopping a thrift store

Although 18 percent is a fairly good number for those who are more budget-conscious, I do believe there are more deals to be had of quality merchandise at thrift stores than many people realize.

But whether it’s a thrift store deal or not, for the next two weeks I will post several articles about back-to-school shopping and saving. So check back next week for tips for the K-12 children or college bound.

Be Aware of Baggage Fees before You Pack

 

Travel light with one carry-on to avoid the airline charging you fees for checking any luggage.

In a move to help force passengers to travel lighter and to curb its costs, most airlines began charging fees for luggage you check. Typically, an airline for domestic U.S. flights charge $15 for the first checked bag, $25 for the second and anywhere from $50 to $125 for the third.

 

If you must bring more than a carry-on, be aware of your airlines fees for checked baggages.  Airfarewatchdog.com offers a chart of most major airlines and their baggage fees.

Couch Crashing is a Money Saver for Travelers

 

Couch Crasher: Getting accommodations on someone's couch is a very low-cost alternative to a hotel stay.

Hotel costs can be the biggest expense of any trip, even trumping airfare based on the length of your trip.  One way to eliminate the hotel is to sleep on the couch of a friend or even distant relative.  But what if you don’t have a couch connection in the town on your vacation list?  Make one.  

Sites such as couchsurfing.com are connecting hosts with travelers for a cheap to no-cost alternative to hotels. You simply sleep on the couch of willing hosts, for free. All most hosts expect in return is a gift from your home town or a treat to dinner, and of course respect for their home (i.e. cleanup after yourself).

Couchsurfing.com verifies its members and home addresses through credit card verification and members rate each other and vouch for their credibility. If someone had a bad experience with a host or visitor, you’ll see it posted online, which takes some of the worry out of what type of host you’re getting. Simply opt for those with positive comments and high ratings.

Here are a few sites to consider when you’re looking for a host for international travel, or even within the U.S.:

• couchsurfing.com A popular site that aims to “create deep and meaningful connections that cross oceans, continents and cultures.” Members post their photos and a little something about themselves and their home or travels. You can browse member entries without becoming a member.
• www.globalfreeloaders.com Is an Australian-based hospitality network connecting people worldwide.  You have to become a member before you can the details on hosts. Free membership is renewable in 12-month blocks.
• hospitalityclub.org Is one of the first to offer this service on the Web.  Each member fills out details on a web form that other members may view. Sample pages are available for viewing before you join. Duration of stay and specifics (such as how food will be shared or not) are set out before your arrival.
• stay4free.com A global “free accommodation network” based in Holland allows options that lets members swap their entire home with someone else in another location, or you can opt to just be a guest or just be a host.

Disclaimer: I cannot vouch for the members on any of these sites. For the adventurous who would like a real-town experience versus just a tourist view, I think it’s a great alternative to a hotel stay. However, I still urge you to use your own best judgment before accepting accommodations from someone you don’t know.

Airfare: How Getting Bumped Saves You Money

Watching your flight take off without you because you were just bumped isn't all bad: With the right negotiating skills you can walk away with free travel.

Have you ever been at the airport waiting for your flight to board when the attendants announced that their are too many passengers booked and some will have to wait for another flight? Well, “getting bumped” to another flight may seem like a bummer, but it is a great way to save on airfare — minus the inconvenience.

Getting bumped happens because airlines allow overbooking for flights, counting on no shows so that they can still take off at full, or near-full capacity. However, if more passengers check-in than they had anticipated, the airline has to ask if their are any volunteers to wait for the next available flight. If there are not enough volunteers, then they will start bumping passengers themselves.

Freebies for being bumped
Here are some things passengers have been offered:

• free meal if the wait for the next flight or a delay is 2 hours or more
• a free hotel stay that night if the next available flight is for the next day
• admission to the VIP club
• discounted airfare for your next trip
• travel voucher giving you a free flight (note, this doesn’t always cover round-trip, so be prepared to purchase your one-way ticket back)
• a discount or refund on your current flight

The latter is particularly a good deal for passengers who do not fly that frequently or have a low likelihood of using that same airline for their next travels if they’re headed to a location the airline doesn’t cover. Also, some of the coupons or travel vouchers have expiration dates. If you don’t use them in time, it’s as if you were never compensated for your inconvenience.

Volunteer to be bumped
A way to save money on your flight and to negotiate better terms is to volunteer to be bumped. Here’s how to do it:

Call the airline the morning of your flight or the night before if it leaves early in the a.m. Ask the airline if the flight is overbooked. If they say yes, arrive at the terminal 90 minutes to 2 hours early for domestic flights and tell the ticket clerk that you are willing to be bumped should the need arise. Volunteers are taking in the order they volunteer, so that earlier you arrive at the airport the better your chances. You still can ask to be put on the volunteer list if you arrive later, but your chances of getting bumped decreases.

You can always back out from the list when the time comes and their airlines are not offering you the best freebie deal. Only take the bump if you’re happy with what you’re being offered. Also, only take the bump if your time is flexible. If you have a connecting flight or are trying to make it to a boat launch for a cruise, you’ll probably be better off if you hold on to your seat.

3 Smart Tips for Wallet-Friendly Vacations: What to Do

Regardless of your finances, it never hurts to spend time during your vacation doing low-cost and free activities, or finding other ways to cutback. To learn how to save money while still enjoying your vacation, read below my “What to Do” tips. For other tips, click these links to read “Where to Go” and “Where to Stay.”

What to Do
Regardless of where you go on your vacation, you can also cut costs by what you choose to do while taking time away from home. The more time you spend doing free or low-cost activities, the less time you have to shop or do more expensive activities. Here are just a few ideas:

Biking, hiking, camping, or just taking time to stop at scenic overlooks are great low-cost ways to spend part of your wallet-friendly vacation.

Go Biking: In most cities there are parks, hotels or lake front shops that do bike rentals fairly cheap (or bring your own), allowing you to do a self-guided pedal tour around town, or simply take in the scenery.

View the scenic overlooks: If you’re driving to your destination, allow time to stop at many of the scenic overlooks or historical markers off the Interstate. Too often we drive past these as we’re in a hurry to get to where we’re going, but the views are often a nice no-cost pause to our day.

Take a hike: You don’t have to climb a mountain with granola in your knapsack to enjoy a nice hike. Take a walk through a forest reserve or nature preserve, or along a wooded trail. There’s one in almost every area and if you walk right in, your cost is often free.

Spend a night camping

Pitch a tent: Spend one night of your trip camping outdoors instead of in a hotel and shave $100 or more off your vacation. Even if you’re not a camper, one night under the stars is a nice break from the hustle and bustle. If you don’t want to pitch a tent and sleep in a bag, if the space in your mini-van or SUV allows, just let the seats back for a night, and relax. Bring pillows and a blanket to add to your comfort. You’ll enjoy watching the sun rise after your night of rest.

Looking for a low-cost vacation? Take a trip to the beach. (Photo courtesy of Joaquim Alves Gaspar)

Hit the beach: Feeling the soft sand between your toes, listening to the sounds of the waves crashing and the seagulls cawing can be relaxing and inexpensive, when you choose a public beach instead of a private resort.