(ARA) Gone are the days when wives could simply leave their familys financial
planning to their husbands. In this fast-paced world, change is the norm rather
than the exception. Eileen Manning, 42, of Minneapolis, Minn., learned that the
hard way. The day she turned 39, her husband died of a heart attack. I never
expected to become a widow at 39, but it happened and there was nothing I could
do about it, she said. After her husbands death, not only did she have to pick
up the pieces emotionally, she also had to figure out which bills had to be
paid, how much money she had in savings and how she was going to prepare for her
financial future -- alone. It took me at least six months to figure it all out,
she noted. From trying to locate where our boat had been stored, to
understanding what benefits I had coming, it was overwhelming. I went from
feeling safe and secure, to suddenly being uncertain about the future. Manning
knew she had investments she could use to stabilize her financial situation, but
her inactivity of the past made it a very difficult process. A survey conducted
by Prudential Financial late last year (1) found that while a significant number
of Baby Boom women are becoming more financially aware, too few are taking the
action necessary to secure their financial futures. I wouldnt have taken the
steps I did had I not been forced to, said Manning. And shes in good company.
Just 14 percent of those polled said they had engaged in some form of detailed
financial planning, and while 84 percent believe securing long-term care is
important, just 13 percent said they owned long-term care insurance. In May of
this year, Prudential followed up on the 2002 study when it released the results
of a retirement planning survey that polled Americas pre-retirees -- those
between the ages of 45 and 60. (2) The results illustrate an alarming difference
between men and women that should be an even greater wake-up call for women
pre-retirees. Specifically, the 2003 study found: * 73 percent of men are
confident their investments are on the right track, compared to just 57 percent
of women. * Just 48 percent of women are confident of their ability to achieve
their retirement goals, compared to 7 out of 10 of their male counterparts. * 47
percent of women polled are worried about having to postpone retirement, while
just 32 percent of men share that sentiment. * 56 percent of women feel they
have a good understanding of asset allocation, while 71 percent of men do. *
Two-thirds of men are happy with their current level of household savings,
compared to 52 percent of women. The study also revealed that the level of
financial health of many women pre-retirees is a cause for great concern. We
found that 39 percent of women polled are considered to be in frail financial
health, having yet to take many of the necessary steps to plan, monitor and seek
advice on growing and protecting their wealth, said Priscilla Myers, senior vice
president and individual insurance chief marketing officer for Prudential. As a
follow-up to the study findings, Prudential is continuing its educational
strategy for local markets designed to help raise the level of womens financial
health. The fact that more than a third of women pre-retirees are in frail
financial health is alarming, added Myers. By providing our financial planners
the tools needed to reach women, we hope to educate, empower and encourage them
to improve their financial health and secure the comfortable retirement they
deserve. For more information, including an online copy of Prudentials 2002
study on the financial behaviors among women, visit www.prudential.com. Courtesy
of ARA Content About the author: Courtesy of ARA Content Looking for
a Tax Deduction? What You Need to Know Before Donating a Vehicle to Charity
ARA(ARA) - How much of a deduction can you take on this years tax return for
donating the clunker-of-a-car in your garage? Donor beware, there are a few
things you need to know before giving your vehicle to charity. Research the
Charity A recent report found that many charities across the United States
misrepresented themselves or the amount of the donation that would be used for
charitable purposes. According to a 2001 study, donors expect at least 70 to 80
percent of a charitys funds to be used for charitable purposes rather than
administrative costs; however many charities ended up with only 15 percent of
the original donations made. When a vehicle is donated to a charity, it is then
sold at auction by the charity itself or a third party. In both cases, there are
towing and administrative costs deducted from the final amount the charity
receives. One company, ADESA Impact, out of Indianapolis, is a wholesale auction
company with a national vehicle donation division. ADESA Impact is under
contract with many of the nations most recognized charities. According to Joe
Hearn, one of the companys vice presidents, ADESA Impact is able to provide one
of the highest rates of return to the charity because they have negotiated the
lowest rates for transportation and sale of the vehicle while still pursuing the
highest returns through its auctions. Avoiding an Audit The U.S. General
Accounting Office (GAO) reviewed the average deduction claimed for donated
vehicles in 2000 to determine whether the values fell within the ranges
identified in the Blue Book and found that almost all of the vehicles did.
However additional information regarding the vehicles condition was not
available to determine exactly how appropriate the amount deducted was. Kelley
Blue Book, the recognized vehicle valuation and pricing guide, offers a free
tool on their Web site called the Vehicle Condition Quiz. When determining the
Private Party value of your vehicle on their site, which is the value youll use
for a vehicle donation, click on the Rate It button when the site asks you to
select a condition and then click Get Pricing Report. Youll be taken to a page
where you can appraise your own vehicle through a 27-point appraisal. Fill out
the appraisal form and print it. It includes items that will provide you and the
IRS with the details the IRS needs. You may also want to take photos of your
vehicle to prove its value and condition when filing with the IRS. According to
the GAO, the IRS has a compliance program which looks at how much taxpayers
claim as the Fair Market Value for a vehicle vs. what the charity actually sold
the vehicle for, making Kelley Blue Books Condition Quiz a valuable resource.
While the IRS recognizes that there are differences between fair market value
and wholesale prices at which vehicles are sold at auction, the difference will
give them an indication of which filings may need to be scrutinized further. In
fact 49,000 2001 tax year filings will be reviewed and could be subjected to
audits. Know what percentage of your vehicle donation is actually going to the
charity, make sure the charity you are donating the vehicle to is a reputable
one, and have a detailed vehicle appraisal from Kelley Blue Books Web site for
the IRS. Tips for Donating Your Vehicle Recent donor studies show that the
ability to claim a deduction on their taxes is the top reason most people donate
a vehicle to charity. If you are considering donating a vehicle there are
several things to be aware of: 1. You must determine the value of your vehicle.
The IRS considers it a conflict of interest for the charity to determine the
value of your vehicle. However vehicles worth more than $5,000 must be
independently appraised. This appraisal must be completed before the charity
picks up the vehicle. 2. You can deduct contributions only in the year you make
them. Keep in mind you must itemize your tax return to claim a tax deduction. 3.
Get a receipt. When you make any non-cash contributions, you must get and keep a
receipt from the charitable organization showing the name of the charity, date
and location of the charitable contribution, and a detailed description of the
donation. This receipt also includes the charity's tax identification number.
Keep this for your records. 4. Assign a fair market value to your vehicle. Use
Kelley Blue Book's Web site. The Condition Quiz is very detailed allowing you to
input specific information about your vehicle's current condition to give you
the Fair Market Value. Use the Private Party value and the Help Me links in the
pricing report feature to get the most accurate value. 5. Make sure the charity
is a name you recognize and trust. The donor should be familiar with the
charity's purpose. Be careful of 'sound-alike' charities, e.g. National Kidney
Foundation vs. National Kidney Fund, American Heart Association vs. American
Heart Society. You can also call the Better Business Bureau to determine if the
charity you have chosen is a recognized organization. 6. Ask how much money the
charity receives. According to a report from the from the Office of California
Attorney General, more than $34 million was donated in automobile revenue in
2000, however, only 32 percent of the gross revenue was returned to the charity.
7. Sign the title over directly to the charity or their agent. Don't leave the
title blank under any circumstances. Many illegitimate charities ask that the
title be left blank. This practice may leave you liable for the vehicle months
after it has been donated. 8. Ask how and where the money will be spent. In
light of the confusion surrounding the monies raised after September 11, donors
should be sure to ask how the money is being utilized and inquire if the money
is spent locally. For more information on ADESA Impact charities, vehicle
donation and tax forms required for donation, visit the Kelley Blue Book Web
site at www.kbb.com and the IRS Web site at www.irs.gov. Courtesy of ARA Content
About the author: Courtesy of ARA Content Be a Smart Shopper this
Holiday Season ARA(ARA) - There are three kinds of holiday shoppers: those who
buy throughout the year, picking up the perfect gifts as they find them; those
who hit the malls after Thanksgiving, enjoying the holiday decorations, spirit
and sales; and those who put off shopping until the last minute, then rush
around buying frantically and impulsively. No matter what your shopping style,
its a good bet it ends up costing you more money than you realize around the
holidays -- youre spending more time than usual in malls and specialty shops and
in the spirit of the season, youre feeling especially generous (you might even
sneak in a gift for yourself). If you dont have the money for that cashmere
sweater, it is all too convenient to put it on the credit card now and deal with
it later. Dont be one of countless consumers who has a fit of panic and regret
when the New Year rolls around and the credit card bills start coming in. Begin
planning now and you can make it through the holiday season with your finances
and your credit rating intact. Here are some ideas to get you started and help
you share the joy of the season without going overboard. Check your credit You
probably have a general idea of your credit card balances, but now is a good
time to sit down and get a complete picture of how much you owe and to whom. You
may find that you dont have as much available credit to use for the holidays as
you thought. Youll also want to check your credit report, both before (to make
sure youll get approved for more credit if you need it) and after the holidays.
You can get a copy of your credit report from Web sites such as
creditmatters.com. Verify that all the information is correct, and that there
are no unfamiliar charges or accounts on the report. If you carry a monthly
balance, this would be a good time to consider consolidating your debt on the
card with the lowest interest rate. Just dont use the zero balance on the
consolidated cards as an excuse to charge more. You can enter the New Year
knowing that your credit is in good shape. Look to last year Take a minute to
review your holiday spending from last year. Youll be amazed how fast the total
adds up. There are obvious expenses such as gifts, but dont forget to include
expenditures for decorations, food, party clothes, holiday activities and
travel. Draw up a Budget Once you figure out how much youve spent during the
holidays in the past, you can start making a budget for this year. Are there
ways you can economize? For example, maybe you can talk to your immediate family
about drawing names and buying for just one person, instead of getting gifts for
your siblings, their spouses and their kids. In a similar vein, why not start a
grab bag tradition among your friends, instead of buying individual gifts for
everyone. Alternatively, set a price limit with friends and family. You may not
want to be the one to broach the subject, but many people will be relieved at
the suggestion. Stick to Your Budget Having a budget and sticking to it are two
different things. Holidays are a time when emotions can easily trump good sense.
With a budget in place, youre less likely to succumb to impulse spending. You
might want to include an unexpected expenses category in your budget for
last-minute emergencies, like buying a gift for the co-worker who wasnt on your
list, but who gives you an unanticipated present. Take Advantage of Sales The
past few years have been a bonanza for bargain shoppers as stores strive to
entice shoppers during a sluggish economy. Look for good deals, and remember to
save your receipts. Many stores will credit you with the difference in price if
an item goes on sale within a certain timeframe after you buy it. Plan for Next
Year Keep all your receipts and add up how much you spend this year; figure out
what that translates to per month, and start putting that amount away for
holiday spending during the coming year. Throughout it all, have fun. After all,
tis the season to be jolly. Just because youre on a budget doesnt mean you cant
enjoy the holidays. For more information on checking your credit report, visit
creditmatters.com. Courtesy of ARA Content About the author: Courtesy of
ARA Content
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