Farnoosh Torabi's Blog

This article is sponsored by The Allstate Foundation.

On my podcast, So Money, we often discuss how money can be a powerful tool when managed wisely. Not only does it fund life’s necessities, but it also creates opportunities for personal growth, helping others and creating an impact in the world.

In a recent conversation on the show, however, we learned how money can sometimes be used against us, when, for example, a partner takes away our financial independence through abuse. It happens more often than we might think, and it has the ability to rob us of the life we dreamed for ourselves and our loved ones. 

Mercii Thomas bravely told her story of financial abuse on a recent episode of my podcast. It broke my heart to hear her talk about how she went from being a teacher and an aspiring yoga instructor to not even being allowed to hold a part-time job, all because of her controlling partner.

Fortunately, Mercii eventually broke free from this financial abuse and is rebuilding her life. Not everyone is so fortunate, but there are steps people can take and resources they can use to help protect against this kind of abuse. The Allstate Foundation is committed to that work.

Since 2005 The Allstate Foundation has empowered more than 2.5 million domestic violence survivors with education and tools to achieve financial independence. Their online curriculum, called Moving Ahead, is a free, five-part series. It helps people spot the signs of financial abuse, master the basics of their finances and then set and pursue long-term goals.

What Does Financial Abuse Look Like?

Physical abuse often comes with clearly visible signs, such as cuts and bruises. Financial abuse is much harder to spot, so it can be difficult for friends, relatives and bystanders to help. The Allstate Foundation provides six indicators that you or someone you know is experiencing financial abuse:

Restricted spending: Many couples have one person who manages bills and paperwork. But if that partner demands receipts for every single purchase, restricts you to an allowance or even prevents you from purchasing necessities, this might be a sign of abuse.

Stealing: If your partner uses your money – whether cash, credit/debit cards, or checks – without your permission or knowledge, this might be financial abuse.

Account restrictions: Each couple decides whether to have joint or individual accounts. But if you are coerced into giving your partner your information, or you are locked out of accounts, this might be financial abuse.

Preventing employment: Mercii Thomas experienced this form of abuse. Her partner discouraged her from a temporary opportunity in another country and even a part-time job locally because it would take time away from their relationship. A partner who tries to prevent your employment or education could be engaging in financial abuse.

Planning exclusion: How involved are you in budgeting or financial planning in your partnership? You may want nothing to do with it. But if you are intentionally kept out of discussions, or you are told you don’t have a right to know, this could be financial abuse.

Creating debt: If your partner uses your name on financial documents without your permission – credit card applications or mortgages, for example – or if you are forced or threatened to make a purchase, you can be stuck with a lot of debt. This is a clear sign of financial abuse.

How Can You Help?

If you suspect that someone you know is dealing with financial abuse, you do have the power to help. The Allstate Foundation has suggestions for opening that conversation, and then the Moving Ahead curriculum – which is available in English, Spanish, French and – can help empower people to achieve financial independence.

Most importantly, know that with just this simple act you have the power to make a big difference in someone’s life – someone like Mercii Thomas.

The post Six Warning Signs of Financial Abuse appeared first on Farnoosh.

This blog post was written in collaboration with TIAA.

The country’s student loan debt currently tops $1.6 trillion and is growing six times faster than the economy. And while many federal borrowers benefited from a temporary deferment of their loans in 2020 and the first month of 2021, the New Year will likely require revisiting our balances and re-strategizing the pay off.

As student debt has become such a big concern, companies are even offering programs as part of employee benefits, such as one called Savi.

Here’s my advice on how to ease the burden.

Keep communication lines open with your lender

Whether you have a federal or private loan (or both), it’s important to stay knowledgeable about all of your options directly from your lender.  Learn about all of your options including income driven repayment, PSLF and refinancing. You don’t know unless you ask. It’s also critical to reach out to your lender prior to missing a payment. If you foresee having any challenges with making your monthly loan payment because of a job loss or other setback, it’s very important to get ahead of it. Don’t wait to inform your lender before it’s too late. The best time to receive help is when you anticipate having a hard time making payments.

Consider extending the term

One of the things you may learn you can do through your lender is stretch out the term. Extending the term of your loan from, say, 10 to 20 years could buy you some financial breathing room, since when you extend the term, your monthly payments drop.

Keep in mind that your interest rate typically remains the same, so this strategy does end up costing you more in the long run. So, as your finances improve, begin making bigger payments towards the principal of the loan to help you pay down the debt faster and without less of an interest burden.

Leverage employer benefits

Does your employer offer student loan repayment benefits? It’s worth asking. This is an increasingly popular benefit, as companies recognize the demand for help around student loans. It’s not gone mainstream yet, but the trend is moving in a positive direction. The Society for Human Resources Management (SHRM) found the number of companies offering student loan repayment doubled to 8 percent in 2019.

TIAA has joined forces with social impact technology startup Savi to make it easier for

nonprofit organizations to offer meaningful student debt relief services to their employees and help them take advantage of income driven repayment plans and the Federal PSFL program.

Employees at participating TIAA institutions already using the solution are saving on average $222 each month. TIAA projects average forgiveness of over $51,000 per employee. Learn more about the collaboration at www.tiaa.org/savi

Consolidate if it makes sense

Consolidating multiple loans into one loan can be a great way to simplify and streamline your debt payments into one single monthly payment. The best case scenario, after consolidating, is if you can bank on a lower average interest rate, which would reduce your monthly balance. To consolidate your loans you can shop around. You don’t have to necessarily stick with your current lender.

The post 4 Ways to Manage Student Loan Debt in 2021 appeared first on Farnoosh.

This blog post is in partnership with  Metromile Auto Insurance.

Despite how they’re marketed, some higher-priced items aren’t any better than their more affordable counterparts.

Raise your hand if you like expensive things. Who doesn’t?

It’s no secret that we’re drawn to shiny objects, but here’s the problem: our brains are wired to assume that pricier items are necessarily better in terms of quality and experience…when that’s not always the case. We may, in fact, be better off purchasing the lower-priced item.

According to Business Insider, “Studies show that we tend to value expensive items over their cheaper counterparts. It’s known as the ‘marketing placebo effect.’ And it doesn’t just apply to things you buy for yourself, but also to things you may purchase for others — making the holidays an even more expensive time of year.”

For example, in 2017, some folks took a wine taste test. The wines were identical, unbeknownst to them. The drinkers were only told that one of the bottles was more expensive than the other. In the end, the taste-testers believed that the pricier wine was more delicious. Their brain scans also showed that the area of the brain linked to reward and motivation, which ultimately determines their taste experience, became more active when they drank what they believed to be the more expensive wine. In short: Our mind plays tricks when we *think* something costs more.

There are many examples of how human psychology can mislead us into making irrational financial decisions. Like that bottle of wine, here’s a rundown of four more purchases that we tend to pay more for, but don’t actually lead to better results, experience or benefits. It may just be in our heads.

Actively Managed Mutual Funds

The idea of a financial professional actively managing a mutual fund sounds like something that would produce tremendous value over time. But here’s the thing: it costs a good deal of money to invest in these types of funds, and they don’t necessarily earn you the greatest bang for your buck.

Many actively managed mutual funds charge high expense ratios, or investment fees, which can compound over the years and lead to thousands of dollars in fees per year (whether your fund makes or loses money). A typical expense ratio for a managed mutual fund is between 0.5 and 1.0 percent. Is this worth it? Research suggests no. According to one study, funds with cheaper expense ratios predictably earned better returns, while those with higher expense ratios earned lower returns. 

So Money podcast guest, financial advisor and author Sarah Catherine Guitteres writes in her book, But First Save Ten, that “the people picking stocks and bonds in these mutual funds are smart people. I have met many of them. But their Achilles’ heel is one thing alone: their fees. They simply cannot beat the market on a sustained basis and beat their own fee.”

I woke up to this fact a number of years ago and requested that our financial advisor swap out any actively-managed mutual funds costing more than 1% with a similar passively-managed fund, such as an index fund or exchange-traded fund that’s typically just a fraction of the price. My calculations predicted that one move would save us hundreds of thousands of dollars from now through retirement age.

Pricey Car Insurance

What if I told you that I am now paying half of what I used to for car insurance, all without sacrificing any of the protection or benefits I had with my previous insurer? I drive the same car and maintain the same driving record.

Instead, I’m taking advantage of the fact that I’m a low-mileage driver (if you drive 30 miles or fewer every day, chances are you’re low-mileage, too) and working with an insurer who understands that I should pay as little as possible because of it.   

When we moved to New Jersey, we made the switch over to Metromile, a car insurer that offers pay-per-mile car insurance, which means our bill is based on the miles we drive. We pay a base rate and a few cents per mile.  

I recently told my friends about Metromile, and they looked at me in disbelief. Their jaws dropped. I could tell they thought I must have fallen for a scam. They doubted and thought that insurance costing so much less necessarily meant weak coverage or a tough time getting claims approved. But it’s not the case. 

Metromile can afford to pass on these lower rates because their business model focuses on underwriting mainly low-mileage drivers who get into far fewer accidents versus other insurers who underwrite a really wide range of drivers and need to base rates on group proxies. 

Also, Metromile has a 24/7 claims service,  roadside assistance, and a free app with features you can use to check your car health, fuel costs, and more. If you’re interested, you can go to Metromile.com to learn more and see if it’s available in your state.

Brand Name Drugs

Is that $8 bottle of Advil any more effective than the $5 bottle of ibuprofen from the pharmacy’s own label? On average, store brands offer a 50% savings compared to the more familiar and popular labels, thanks to low marketing expenses. And it seems the professionals prefer them. A University of Chicago study found that most doctors and pharmacists are loyal to store brands. Always consult with your physician or the pharmacists if you’re not sure which direction to take on an over-the-counter drug. 

According to the study: The more informed or expert consumers are less likely to pay extra to buy national brands, with pharmacists choosing them over store brands only 9 percent of the time, compared to 26 percent of the time for the average consumer. 

Fancy Food Labels

Fancy food brands carry higher price tags partly because of giant marketing costs. But store brands don’t need to pay a third-party a cut of its revenue and can pass on those savings to its customers.

In many cases the taste and quality are just as good – if not better. Sure, some things like our affinity for Jif peanut butter cannot be substituted, but in other cases, we’re more than fine swapping out the more expensive brands for store-labels from Target, Whole Foods and Costco. And in the current pandemic, more shoppers are experimenting with store brands as a way to save. 

Sources also tell me that Costco’s Kirkland label is slapped onto some of the same food and beverage items that are priced higher, including some wines, spirits and coffee. 

The post When Spending More Doesn’t Get You More appeared first on Farnoosh.

It’s convenient, but “setting and forgetting” can be costly. 

A popular saying in the personal finance world is to “set it and forget it.” The idea behind it is that you automate some important money moves like saving and investing so that you stay on track with your goals. Or, you sign up auto-payments for a monthly service thinking you’ve landed a “deal” when there might be far better offers out there.

In theory, this approach has some merits. It reduces time spent thinking and making moves in our financial life. It makes things simple and convenient. Plus, the act of “setting and forgetting” is a proven step to help people save more money over the long run.   

But the ‘forget it’ part can sometimes backfire in the form of cost creep or hidden fees. If I had to edit the expression, I might suggest something to the effect of, “Set it, but don’t forget to check in once in a while.”  

Here are 4 aspects of our financial life that we tend to put on autopilot, but might be worth reviewing on occasion. 

Retirement Savings

This summer I did the forbidden thing and adjusted my retirement portfolio, rather than “stay the course,” as is often advised. It’s an adage that even I, as a financial author and expert, have preached over the years, but in recent months, with so much uncertainty in the world and volatility in the market, began to question the approach. 

I realized that I’m not as bullish about long-term market trends and my appetite for risk just isn’t what it used to be. After some consideration, I dialed back my stock exposure slightly to better reflect my new comfort levels. I realized the trade-off would be possibly falling short of my retirement savings target, so to offset the smaller gains over time, I decided to increase my annual contributions. 

My advice now to long-term investors is to check in with yourself once a year, at least, to be sure that your investment approach is aligned with your goals and risk tolerance. As our personal life and the world evolves, so might the way we invest. And that’s okay. 

Banking
While I’m not a proponent of switching banks just to earn an extra 0.01% on your savings, it might make sense if you’re unhappy with the service or fees. Yet we rarely make the departure. In fact, Consumer Reports found that despite being displeased with their bank due to rising costs and other inconveniences, only one in five consumers made the departure. The hassle of transferring automatic payments, as well as the time and effort, deterred about 50% of those surveyed from doing anything about it. 

I get it. Your bank is a likely long-standing relationship. It’s hard to break up. But I’ve done it. And it’s not as painful as we make it out to be in our minds. Before you make the switch, I’ve written more here about how to get organized and prepare for some traffic control to be sure all inbound direct deposits and outbound recurring transfers get carried over without fail.  

Car Insurance 

The average driver hasn’t switched car insurance companies in 12 years! If you haven’t shopped around in over a decade, there’s a good chance there’s a much better deal out there for you. And rest assured, you are usually able to switch at any time without penalty. 

My husband and I recently made the switch when we moved to a new state. For years we’d been with the same auto insurer, just paying what we paid because, well, we got lazy. The set it and forget it approach just had us following the status quo and not really questioning our bill. 

But when we moved to the suburbs and were working from home, we realized just how little we were driving. We started to look around for more cost-saving solutions and discovered Metromile, a car insurance company that offers pay-per-mile car insurance. This means our bill is based on the miles we drive. We pay a base rate and a few cents per mile. 

With our previous car insurer, our premium was well over $200 a month, and mostly based on aspects like where we lived, the type of car we drove and our driving history. A tiny part of the cost breakdown related to the fact that we were low mileage drivers.

But here’s the truth: More than 100 million Americans drive 10,000 miles or fewer each year but don’t know it. And Metromile customers are big fans, saving an average of $741 a year.

In our case, the savings looks like it will be more than $1,000 a year. You can also see what you might potentially save with Metromile’s free quote tool.

Cable, Internet and other Monthly Plans

With so many people moving and relocating in the pandemic, service providers are offering many new deals and sign-up incentives to entice new customers. Now might be a smart time to make a switch. Even if you’re an existing customer, call your service providers and see if you can qualify for any of the offers for first-time customers. If not, discuss how you might be seeing competing offers and ask, “what are some ways that I can save?” You’d be surprised what customer service can usually come up with to help bring down your bill by 15 or 20%. It costs less for the company to give you a discount, rather than lose you and need to spend more marketing dollars to lure in a new customer to fill your spot.  

This article was created in partnership with Metromile.

The post Don’t Make These Financial Moves “Automatically” appeared first on Farnoosh.

This blog post is in partnership with Metromile Auto Insurance.

With my husband and I working from home and the kids in virtual school, we’re saving money on some things like gas, clothing, and those $8 salads we’d normally buy from the deli below the office. But other expenses are creeping higher. 

With our family of four under one roof most of the time, we’re working hard to keep a lid on energy and grocery costs. We’re also noticing all the little ‘problems’ around the house like the fact that I really don’t like any of my furniture and want to remodel the whole place. 

Sound familiar? I’ve got some saving advice.

Reduce energy via programmable thermostats, unplugging electronics and more accountability

In the first few months of the 2020 quarantine our energy bill shot through the roof, with our entire family (and my brother and his girlfriend) living and working at our home all day. We have five heating and cooling zones throughout our house, and we had them all running for most of the day. 

We started making a few adjustments which led to a nearly 50% reduction in our energy bill within a couple of months. The first was to completely turn off at least one or two of the thermostats in areas of the house we weren’t really using, such as the dining room and formal living room. The next step was regulating the temperature using our programmable thermostats so that cooling would only turn on if temperatures surpassed 72 in a particular zone. 

We also started unplugging some appliances that were rarely in use but continue to use energy and drain power, so-called ‘energy vampires.’  That includes phone chargers, our blender, and other cords.

Finally, we had a conversation with all members of the household to explain just how much energy was being consumed and that we all needed to be more conscious and accountable for its usage. Even the little kids could help with turning off lights before leaving a room.

Stock up on “private labels” to cut your food bill

Grocery bills are increasing in the pandemic, as we spend more time at home. In some households, adult kids are also returning from college, which adds to the budget. 

One of my personal favorite ways to save money at the grocery store is to shop private labels. Large grocery chains and discount stores like Target, Walmart and Costco carry their own private labels for many items from food to household products, which are priced anywhere from 30 to 50% less than competing name brands because the products don’t require as much advertising or research and development costs. There’s also no middle man, as the product is going directly from the store brand to the customer, so no need for a big mark-up. 

In most cases, I find that the quality is just as good. For example, Whole 365 is the Whole Foods label, and it’s become our go-to for organic milk, bread, eggs, and pantry items like pasta, baking ingredients and snacks. My kids can’t tell the difference, and I’m loving the savings.

Review your insurance policies and consider making a switch

Working from home should work in your favor when it comes to the cost of certain insurance premiums like home and auto. If you’re home most of the day, that would make your home more guarded, which should help to reduce the cost of insurance. Let your insurance company know and ask for a discount. 

And if you’re now a low-mileage driver and exposing the vehicle to fewer scrapes and accidents, your car insurance should reflect that. 

The good news is that you can always shop around for new car insurance policies. We just migrated over to Metromile, a car insurance company that offers pay-per-mile car insurance, which means our bill is based on the miles we drive. 

The fact is: More than 100 million Americans drive 10,000 miles or fewer each year but don’t know it. And Metromile customers save an average of $741 a year. In our case, the savings looks like it will be more than $1,000 a year.

One reason why you can save so much: Most car insurance companies don’t know for sure if you’ve stopped driving, which is why paying per mile can be a better option. 

Another reason we made the switch to Metromile: The app. You can manage your policy and proof of insurance, see your trips, and even file a claim from your phone.  

If you want to figure out if a switch to Metromile makes sense for you, check out Ride Along, a free new feature from Metromile. All you need to do is download the Metromile app and drive as you normally would for about two weeks. Afterward, Metromile will tell you if you’re a good fit and what your rate will be if you sign up with no obligation to buy.

Opt for used furniture to spruce up your house

As we attempt to update our home, the Facebook Marketplace feature and I have gotten quite friendly over the last several months. There I can scour my area for gently used furniture and decor. And the best part is that the furniture is already assembled, and I can have it much faster than the standard 4-6 week shipping time it takes for a desk or table purchased from a store.

Bonus: You’re helping out the environment.

The savings are incredible. Whether it’s furniture or books, clothes or tech, buying second hand could save you up 30 to 50%, maybe even more. In addition to Facebook Marketplace, I recommend checking out local neighborhood listservs and a new resale web site I discovered called Mercari that has gently used everything – clothes, toys, electronics.

On the flip side of this, I’ve also been selling some gently used furniture out of our garage, and it’s been selling like hotcakes because people are looking to remodel their homes and set up home offices. It’s just another way to put more money back in your pocket. 

The post Home 24/7? Simple Steps to Avoid Cost Creep and Save Money appeared first on Farnoosh.

From debt to savings, housing and investing, Farnoosh shares her advice on how to best manage your money now — if and when the Coronavirus leads to more job losses, stock market losses and a recession.

The post Coronavirus and Your Money: Preparing for a Recession Now appeared first on Farnoosh.

Joined Tamron Hall on her new talk show to discuss a recent study that suggests men have a hard time dealing with a wife who makes more money.

I broke down the double standard and explained why, despite advances in our society, men and women sometimes have a difficult time reconciling with the traditional gender role flip where she makes more in the marriage.

Check out the video below!

The post When She Makes More appeared first on Farnoosh.

This article is sponsored by
VSP Individual Vision Plans.

When it comes to personal health care costs, the
U.S. surpasses many other countries, taking a sizeable bite out of our annual
budgets. 

Out-of-pocket health care expenses here in the
U.S. rank highest among developed nations including Switzerland, Australia, and
Japan. According to a recent analysis, Americans spend an
average $10,224 per year for various health care services. 

While our current health-care system can be complex and insufficient in some ways, I’ve got advice on how to reduce the cost burden by being more proactive and tapping into certain programs and benefits.

1. Negotiate with Your Doctor. Did you know you could even do this? Yes, you can! Before a medical procedure, book a call or an appointment with your physician to discuss cost-saving alternatives or how you may be able to lower your bill. In my research, I’ve learned that your physician – much like your financial advisor – has a fiduciary responsibility to help you meet your medical needs. Doctors not only are expected to prescribe you the right medicine, but also make sure your financial needs are met. So, be honest with your doctor ahead of time and let her know that you want to find the best and most affordable route to getting the care you need

Pro tip: Shop around before you discuss saving money with your health care provider. Estimates for root canals and knee surgeries run the gamut. You can find fair pricing estimates for common procedures and surgeries at HealthCareBlueBook.com. From there, if you find a lower price than what was quoted to you, ask your doctor to beat or accept that rate.

2. Look Out for Billing Errors

I’ve definitely received a bill or two in the
past that was completely wrong. A few years ago, a medical bill was erroneously
sent to my house that *should* have been sent to my insurance provider and was
addressed to me, stating I was delinquent on paying my bill. Talk about scary!
I called my insurance company and they couldn’t have been more helpful. The
agent immediately got on the phone with the collection agency and told them to
reroute the bill to the insurance company and to stop harassing me.
Yeesh!  

Close to 80 percent of hospital bills contain errors, according to a survey by the Medical Billing Advocates of America. Be sure to track all your tests, medications, and check them against your medical file which you can get from your hospital’s billing office. If you spot an error, send them a letter in writing requesting to fix the mistake and keep your insurer notified by giving them copies of all documentation.  

3. Straddle a Procedure

One way to make health costs more affordable is to spread out a multi-visit procedure (if your doctor recommends it). Since insurance typically caps coverage to a certain amount every year, if you schedule the appointments over this year and next, you can spread out the costs and tap into your insurance each time. I did this for a dental procedure once that was going to require two visits. My dentist said it was fine to do the first step in November and the second in January when my insurance renewed.

FAIR Health, a non-profit, has run the numbers and found that eye exams, alone, can be anywhere from $50 to $300 a visit.

4. Shop Around for Vision Care

Vision care expenses can be all over the place,
depending on your doctor and geographical location. FAIR Health, a non-profit,
has run the numbers and found that eye exams, alone, can be anywhere from $50
to $300 a visit. That doesn’t include the cost of glasses or contact lenses. A
great way to save on vision care is to shop around for insurance plans. One I
highly recommend is VSP Individual Vision Plans,
which provides affordable vision coverage you can buy on your own for as low as
$13 per month. I’ve partnered with the brand because I think it’s especially
perfect for the self-employed and thanks to VSP, I was able to secure
affordable (and fashionable!) glasses recently.  

Their website provides a number of great tools including a savings calculator and a Plan Wizard. Check out GetVSPVision.com to learn more.

5. Tap Your FSA

A Health FSA, or Flexible Spending Account, lets
you set aside pretax money to pay for out-of-pocket medical expenses like
health insurance premiums, deductibles, and co-payments. Because you’re not
taxed on this money, it’s sort of like scoring a discount. For example, if
you’re in the 24% tax bracket and you decide to use an FSA to pay for $2,000 in
out-of-pocket expenses, you save $480 in annual income tax. 

Be sure to use up your FSA account before the
end of the year. While there is a ‘grace period’ that allows you to use up
remaining dollars in your 2019 account until March 15, 2020, you can only
‘carry over’ $500 of the unused funds after that into the next plan year.

The post 5 Ways to Save on Medical Costs appeared first on Farnoosh.

­­Running my own
business has been one of the best and most rewarding decisions of my career.

But I almost didn’t take
the leap. 

I was frightened at
first, unsure how to secure many of the benefits I’d grown accustomed to
working for a company.

How will I save for
retirement without the convenience of a 401(k)?

How will I be able to
afford health, dental and vision care without my company’s insurance plan?

Will I be able to afford
the time off to take a vacation?

Running my own business has been one of the best and most rewarding decisions of my career. But it was also one of the most frightening leaps, as I was uncertain about how to afford insurance.

I was scared to make the
transition because I was ill-informed. I just didn’t know about the plans and
services out there that could benefit me – and there are quite a few. Thanks to
some research and the guidance of fellow freelancers and small business owners
pointing me in the right place, I was able to build a benefits package of sorts
for myself.

If you’re considering
pivoting to self-employment, don’t let uncertainties over things like retirement
planning and a vision plan stop you from pursuing your dreams. Here’s how I’ve
been able to affordably craft my own benefits.

Medical Insurance

There are a number of
ways you can secure health insurance when you are self-employed.

First, if you’ve
recently left your job, you may qualify to keep your previous health insurance
plan provided by your employer through COBRA, a federal program, for up to 18 months. This can be relatively
pricey since you have to pay not just your portion of the cost, but also your
employer’s, plus typically a 2 percent fee.  Your employer usually sends
you the election form within 30 days. You have another 60 days to apply.
Coverage begins on the date of your last day or the date when your benefits
end.

Alternatively, if your
spouse or partner has health insurance from his or her employer, see if you can
piggyback on that. (That’s what I do!)

Another route: Your
state’s Marketplace. While the open-enrollment period is generally in the fall,
if you lose your job at any point and expect to lose coverage in 60 days, you
may be eligible for a “special enrollment period.” To learn more, visit HealthCare.gov or call 1-800-318-2596.

Finally, if you’re a
member of a union, a professional organization or taking courses part-time at a
local school, you may be able to get access to a more affordable, group health
insurance. 

If you’re reading this
and you are younger than 26 years old and your parents have a health insurance
policy, current law states that you may be able to be covered by their
plan. 

Medical plans often
provide dental care as part of the plan or an add-on, but you can find separate
dental plans at sites like eHealth, which surf the web for the
top dental plans for your individual needs. 

Vision Care

My
father was a stickler (still is) about getting our eyes checked regularly. I
remember going to see an optometrist as early as 6 years old and receiving
glasses when I was 12 (that was a big day).

Excited to announce that I’m teaming up with VSP Individual Plans, which provides super affordable vision coverage that you can buy on your ownfor as little as $13 per month. It’s perfect for the self-employed and thanks to VSP, I was able to secure affordable (and fashionable!) glasses recently. 

Their website provides a number of great tools including a savings calculator and a Plan Wizard. Check out GetVSPVision.com to learn more.

Retirement Savings

While you can no longer
contribute to your company’s 401(k) retirement savings plan, there are still a
few ways to continue saving up for the golden years when working for
yourself. 

You can still contribute
to a Traditional or Roth Individual Retirement Account (IRA). These accounts
are designed to help you save for retirement. Each allow you to make
contributions up to $6,500 this year. In a traditional IRA, contributions are
tax deductible today. In a Roth IRA, contributions are not tax deductible, but
then withdrawals after age 59 ½ can be made tax-free.

If you’d like to save a
lot more each year for retirement, then consider opening a SEP IRA, which
stands for a Simplified Employee Pension IRA.

Your
annual contribution in 2019 can be as much as $56,000 (or no more than 25
percent of your compensation.) And it is tax deductible!

Paid Leave

Being your own boss has
many advantages but a paid vacation and paid family leave are not really among
them. For these you’ll have to plan and save. As an entrepreneur, I’ve always
said that it’s important to have an extra bigger savings account that can help
to support you for up to one year in case of a slowdown in your business or if
you want to just take a break from work – for personal, family or medical
reasons. 

Automatically saving at
least 20 percent of your earnings in a high-yield savings account each month
(or every time you get paid) can be a way to quickly shore up savings to better
afford life’s ups and downs as a small business owner.

This article is
sponsored by VSP Individual Vision Plans.

The post Benefits Advice for Self-Employed, A DIY Plan for Insurance appeared first on Farnoosh.

This article was sponsored by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001.  www.massmutual.com  All opinions are those of the author.

Gender wage disparity aside, there’s yet another financial gap women today face that threatens our future: retirement savings. A new study by Mass Mutual finds that women run a higher risk than men of being impoverished in old age. We’re expected to run out of savings five years too soon in retirement.

This may not come be a huge surprise, considering that, on average, women have less money to invest than men. Women are also more likely to experience disruptions in their careers (and thus, contributions to their investment accounts), as they periodically take time to care for their families.

The MassMutual study also found that women express a greater lack of confidence and more uncertainty around investing and preparing for retirement than men. All these factors feed into the retirement savings gap.

The good news? Women tend to be more curious and interested in receiving financial advice, MassMutual found. [My podcast demo echoes this observation, as more than 80% of my audience is female!]

That’s not just good news. That’s great news. This means that with the right mindset and applications, we can close the gender gap when it comes to our retirement portfolios. If you feel behind, here are  5 ways to play catch-up.

1. Figure Out Your Future.

Imagine life in your 60’s, 70’s and 80’s. Who is she? Where does she live? How does she spend her days? Attaching a profile to your future self is a great way to make retirement – which can feel intangible and years away – to something very real and concrete. Online calculators like this one can help you discover your personal “number” for retirement savings and give you a financial target to work towards.

2. Get Comfortable with Risk. 

Women are not as comfortable taking on risk in their investment portfolios, but if you have a long horizon until retirement – say more than 15 years – the more risk you can manage. Not to mention, we are expected to outlive men, so we can actually afford to take on slightly more risk. Be sure that within your portfolio your investments are adjusted for risk – but not too conservative if you do have many years until retirement (and even then, you won’t be taking all of your money out at once.)

3. Max Out Tax-Advantaged Savings Accounts. 

Your workplace retirement plan like a 401(k) or 403b and IRAs should be your first stop in creating a retirement savings portfolio because, unlike most other investment vehicles, these accounts offer tax benefits. My company’s 401(k) was the first investment portfolio I opened in my 20’s. It not only came with a company match of 50 cents for every dollar up to 5%, I also benefited from the 401(k) tax deduction. My contributions, up to a certain amount, helped to reduce my taxable income each year.

If you’d like to invest further – or don’t have access to an employer-sponsored retirement account – consider investing in a traditional or Roth IRA. An IRA is short for individual retirement account. You can open one up at virtually any bank or financial institution. Contributions to a traditional IRA, like a 401(k) are tax-deductible up to a certain amount each year (decided by the IRS). Withdrawals are then taxed at your income tax rate. Contributions to a Roth IRA are not tax-deductible today, but the earnings and withdrawals in retirement are generally tax-free.

4. Tap Into Information & Inspiration. 

The Mass Mutual study found that women stated being less confident about managing savings and investments. A great way to combat that is to surround yourself with a supportive community or begin to tap into more money conversations.

Many of my podcast listeners write to me saying that prior to listening, they lacked the confidence to manage their money. Hearing other people’s stories and learning from others failures and successes can give you the insights and motivation to enhance your financial life. From podcasts to books to Facebook groups, there are so many ways to tap into continued education around money. And be inspired along the way.

5. Don’t Go at it Alone. 

Working with a financial planner can be a smart way to stay informed along the way and tap the expertise of a professional to ensure you are saving enough and are on track to achieve your goals today and in the future. To begin your search, ask friends, family and colleagues for their recommendations. Initial consultations with planners are generally free and that’s an opportunity to see if working with this person would be a right fit.  Look for planners with the CFP or certified financial planner designation.

For further reading, check out this checklist to see if you’re on the right path to finishing strong in retirement.

The information provided is not written or intended as specific tax or legal advice. MassMutual, its subsidiaries, employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel. RS-47024-00

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