KFP is Chamber Member of the Month
January 12, 2009 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
On Friday at the Greater Keller Chamber of Commerce monthly luncheon, Keener Financial Planning received the Member of the Month award. This was a huge honor, and I really appreciate the chamber for recognizing the company’s contributions to the community and chamber in this way. Thank you!
Jean with fellow chamber member Erik Wulfers
January 2009 Newsletter
January 9, 2009 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
The January 2009 newsletter is now available. It contains information on investing, saving for retirement, FDIC insurance, social security, financial preparedness for natural disasters, and information on upcoming events.
FDIC Insurance
January 8, 2009 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
What’s protected?
Bank deposits are protected by the Federal Deposit Insurance Corporation (FDIC), an independent agency backed by the full faith and credit of the U.S. government. FDIC insurance covers both demand deposits, such as checking, NOW, savings, and money market deposit accounts, and time deposits, such as certificates of deposit (CDs). It covers both principal and any interest accrued as of the date that an insured bank closes.
FDIC coverage does not include mutual funds, stocks, bonds, life insurance policies, annuities, or other securities, even if they were bought through an FDIC-insured bank. It also does not cover U.S. Treasury securities, though these are backed separately by the full faith and credit of the U.S. Treasury. Finally, the FDIC does not insure safe-deposit boxes, though if a bank were to fail, the FDIC would typically either arrange for transfer to another bank or notify you to retrieve the contents.
How much is insured?
The Emergency Economic Stabilization Act of 2008 temporarily increased the amounts that are FDIC insured at an individual bank or savings and loan. The legislation states that the increase in standard coverage is effective through December 31, 2009, though there has been widespread discussion of making the increased limits permanent.
The previous limit of $100,000 per individual per bank was increased to $250,000. The $250,000 limit applies to single-owner accounts, such as those held in one person’s name, those established for another individual (e.g., an UTMA or escrow account), sole-proprietor (”DBA”) accounts, and accounts established for the estate of a deceased person.
You can’t increase your protection just by opening multiple accounts in your name at the same bank (for example, splitting money between a checking and a savings account, or opening accounts at more than one branch).
What if I have more than $250,000?
The simplest approach is to have accounts at more than one bank. However, your coverage at an individual bank depends on how accounts are owned; different types of accounts are insured separately. You can exceed the $250,000 limit as long as the deposits represent different categories of ownership. For example, a joint account qualifies for up to $250,000 of coverage for each person named as a joint owner. That coverage is in addition to the $250,000 maximum coverage for each person’s aggregated single-owner accounts at that bank. For example, a married couple with three accounts at one bank–they each have $250,000 in an individual account, and they also have $200,000 in a joint account–would qualify for insurance on the entire $700,000.
The limit on the amount protected in one or more retirement accounts at one bank also is $250,000; this is separate from the $250,000 coverage of individual accounts. (Remember, however, that FDIC insurance applies only to deposit accounts, not to any securities held in an IRA or other retirement account.) An online calculator at the FDIC website, www.fdic.gov, can help you estimate the total coverage on your deposit accounts.
Additional safety nets
In some states, a state-chartered savings bank is required to have additional insurance to cover any losses beyond the FDIC limits. Some banks also may participate in the Certificate of Deposit Account Registry Service (CDARS), which enables a bank to spread large CD deposits among multiple banks while keeping the amount at each individual bank within FDIC limits. Paying attention to your bank balances and account ownership can help protect you in a worst case scenario.
IOUSA on CNN this weekend
January 8, 2009 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
I just learned that IOUSA will be airing on CNN this weekend. I plan to set the DVR to make sure I get to watch it. It’s a documentary about America’s addiction to debt that’s received outstanding reviews. Here’s the info:
The public has spoken, and we’ve listened. In response to demand for information about our country’s financial challenges, CNN/U.S. will air the broadcast premiere of the acclaimed documentary I.O.U.S.A. on on Saturday, January 10 at 2:00 p.m. EST and on Sunday, January 11 at 3:00 p.m. EST. Accompanying the documentary will be an unscripted panel discussion with policy leaders about various economic solutions currently under consideration.
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This exclusive televised event will air only on CNN, and will be hosted by Ali Velshi and Christine Romans, co-anchors of CNN’s Your $$$$$, the network’s weekend business roundtable program. |
Throughout I.O.U.S.A.’s broadcast premiere, Velshi and Romans will engage a distinguished group of panelists, including Pete Peterson, Chairman of the Peter G. Peterson Foundation and former U.S. Commerce Secretary; Dave Walker, President and CEO of the Peter G. Peterson Foundation and former U.S. Comptroller General; Alice Rivlin, noted economist and former Director of the Office of Management and Budget; and Bill Bradley, a Managing Director of Allen & Company and former U.S. Senator and Democratic presidential candidate, in discussions about issues raised in the film and their ties to current economic events.
Learn more about the film at www.IOUSAtheMovie.com. And be sure to spread the word about the U.S. broadcast premiere!
Higher Education Act
January 6, 2009 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
One of the big pie
ces of legislation that passed in 2008 was the Higher Education Opportunity Act (the Act). Aside from reauthorizing the Higher Education Act of 1965 for another six years, the Act includes many other provisions intended to improve college affordability, access, and accountability. Here are some highlights of this new law.
A new federally run college pricing website
In an effort to make it easier for students and their families to compare the cost of colleges in an apples-to-apples format, the Act directs the Department of Education to create a new website that will list up-to-date cost information on individual colleges, including tuition and fees for the current year, average price of attendance after grant aid, recent price increases, and changes in per-student spending, among other items.
The website will also include calculators that families can use to estimate their expected college costs based on income and family data, as well as the annual and total cost of attending a particular college. The hope is that this information will help students and their families during the college selection process.
A simpler financial aid application
According to remarks by U.S. Secretary of Education Margaret Spellings in a speech at Harvard University in October, 40% of college students–roughly 8 million students–don’t apply for federal aid because the process is too complicated. To address this problem, the Act directs the Department of Education to streamline the federal application, the FAFSA, over the next five years. To support this initiative, Spellings announced a revised form that has only 27 questions (down from 100), and stated that families will now learn how much aid they can expect to receive, as opposed to how much they are expected to contribute under the current system. The new FAFSA should be available for the 2009 application year.
Expanded Pell Grant and work-study
The Act increases the maximum Pell Grant, the federal government’s largest financial aid program, from $5,800 to $9,000 per academic year. The Act also expands the community service opportunities available under the federal work-study program.
Graduate PLUS loans
The Act creates a six-month grace period for repayment of all graduate student PLUS loans disbursed after July 1, 2008. Under prior law, these borrowers had to begin repaying their loans as soon as they were no longer enrolled on at least a part-time basis.
The Act also includes many other provisions:
- A requirement that textbook publishers sell unbundled versions of textbooks that previously may have been bundled with expensive DVDs and CDs
- A new scholarship program for active duty military personnel and their families
- A requirement that private student loan lenders inform students of their less costly federal borrowing options
- An expansion of student loan forgiveness for individuals who work in certain public service jobs
Free Retirement Planning Seminar: March 30
January 6, 2009 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
Where: Keller Public Library (640 Johnson Rd., Keller, TX)
When: Monday, March 30, 2009, 6:30 to 8:00 p.m.
Limited Space. Reservations Recommended. Call (817) 743-4840 to reserve your seat.
Figure out how much you need to save for retirement. Take a realistic look at your progress, and get the tools to build a solid plan and the peace of knowing you’re taking care of this important part of your future. Presented by: Jean Keener
See all Seminars where I’m speaking here.
Women & Money Seminar August 26
January 6, 2009 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
I’ll be speaking to the Southlake Chamber of Commerce WIN (Women in Networking) meeting at noon on Wednesday, August 26.
Women have unique opportunities and challenges with money! Women tend to live longer and earn less than men, but according to some recent studies may actually be better investors.
This interactive quiz will engage you in thinking about some of the biggest financial opportunities in your life and raise your antennae on some of the pitfalls to avoid. We’ll also discuss one of the biggest challenge Moms face – balancing saving for retirement and college.
Come prepared to have fun and participate — guessing at answers even if you don’t them will be encouraged! And after we throw out all the crazy answers, we’ll make sure everyone knows the right answer so you walk out the door with solid information to make smart financial decisions.
Where: Southlake Chamber of Commerce (1501 Corporate Circle, Suite 100, Southlake, TX)
When: Wednesday, August 26, noon
Limited Space. Reservations Recommended. Visit www.SouthlakeChamber.com to reserve your seat.
Women & Money: Seminar at GKWC Luncheon
January 6, 2009 by Jean Keener, CFP, CRPC, CFDS · Leave a Comment
I’ll be speaking at the January Greater Keller Women’s Club luncheon on Women & Money. As women, we have unique challenges and opportunities when it comes to relating to and managing money. Among the challenges, we tend to live longer and earn less than men and are sometimes hesitant to take ownership of our financial situation. Among the opportunities, we tend to stick to a plan once we have it and get better long-term investment results than men (this isn’t just me saying this — there’s data! But don’t worry, men, you can use the same time-proven techniques to avoid the pitfalls that caused the statistical variance). Once we’re aware of these trends, it can help us avoid pitfalls and plan to fund the life we want.
Guests are welcome at the luncheon. An RSVP by noon on January 16 is required to rsvp@gkwc.org.
Wednesday, January 21, 2009 Social: 11:00 a.m. Lunch: 11:30 p.m. Cost: $14 Timarron Country Club 1400 Byron Nelson Parkway Southlake, TX 76345 I’d love to see you there!