The Ridgewood Blog Brings a Free Market Laissez-faire Point of View to Local, New Jersey State and National Issues.
Most people know that budgeting is an important part of managing money. But let’s face it—when it comes to sticking to a budget, many of us struggle. Sometimes, it feels like there’s always something unexpected coming up that throws the plan off course. Whether you’re trying to save for a vacation, pay off debt, or simply feel more in control of your spending, creating a solid spending plan is one of the most important steps you can take to ensure financial stability.
$11,534 is the 2023 savings goal for the average New Jerseyan, finds survey.
the staff of the Ridgewood blog
Ridgewood NJ, as the new year begins, it’s usually the time we start to think about what we want to do, or achieve, over the year ahead, and make some resolutions. Perhaps it’s to lose weight, quit smoking, or even save money – but if what we want is vague, it’s less likely to happen. Indeed, studies that fewer than 25% of people actually stay committed to their resolutions after just 30 days and only 8% accomplish them.
Continue reading Survey Finds $11,534 is the 2023 savings goal for the average New Jerseyan
Retirement is a time for enjoying life. You can take trips that you always wanted to take or stay home with the kids after school is out. However, this is only possible if you have retirement savings. Many people don’t know exactly how their retirement savings are growing until it’s too late. Don’t wait till it’s too late. Here are safe ways to grow your retirement savings.
the staff of the Ridgewood blog
Ridgewood NJ, There is no doubt in people’s minds that COVID-19 caused economic uncertainty. It strained many Americans financially, but it also provided an opportunity for many to increase their 401k balances.
According to a report from LT Trust detailing the impact of COVID-19 on retirement savings, the average 401K balance increased by 30.8 percent nationally during 2020, and the average employee contribution increased by 6.12 percent. New Jersey saw in increase of 29.3% .
Continue reading 401K balances Grew in 2020 despite COVID Pandemic Pressures
Week 2 of Kearny Bank Economic Health Survey: Number of NJ residents feeling financially uncertain during coronavirus outbreak rises slightly
the staff of the Ridgewood blog
FAIRFIELD NJ, During the past week, an increasing number of New Jersey residents felt financially uncertain amidst day-to-day constraints related to the coronavirus outbreak. That’s the finding of the second, weekly Kearny Bank Economic Health Survey, which was fielded online from Monday, March 23 through Wednesday, March 25.
People who put off and neglect paying bills will surely end up paying more. So, do not get caught up in this vicious cycle which can consume so much of your financial resources and reduce your financial reward efficacy as well as enjoyment of a financially stable life.
May 17,2016
the staff of the Ridgewood blog
Ridgewood NJ, Ideally, people investing for retirement always should have been able to feel confident that their financial advisors were giving them unbiased advice and recommending what was best for them.
That wasn’t necessarily the case, though, which prompted the Department of Labor to issue new fiduciary rules in April designed to ensure that financial professionals put their clients’ interest ahead of their own when it comes fees and investment advice on retirement accounts.
Investors weren’t the only ones applauding the move.
“We welcomed this change since our firm was already acting as fiduciaries,” says Lou Desepoli, president of Desepoli Wealth Management (www.desepoliwealth.com).
“This might be able to weed out a lot of people who were giving the business a bad name.”
Mike Desepoli, Lou’s son and a wealth adviser at Desepoli Wealth Management, says people need the right advice because the United States is in the middle of a retirement crisis.
“Statistics show that, by and large, Americans aren’t prepared for retirement,” he says. “In fact, there have been surveys that show one-third of Americans haven’t saved anything for retirement. Meanwhile, few people have pensions anymore.”
With their retirements looking so sketchy, people should be flocking to financial advisors for help. But there is also skepticism about the financial-services industry, with a Harris Poll this year revealing that most Americans don’t hold the industry in high regard.
The Desepolis are among those hoping that the new fiduciary rules will help to change that as financial professionals put their clients first.
Lou Desepoli, who’s fond of saying that most Americans spend more time shopping for a car than a financial advisor, says a little research and a few well-planned questions can help in the search for the right advisor.
It’s important to know, for example, how the advisor is paid. Some earn commissions for investments or products they sell, but it’s best if they are paid fees based on the value of the assets they manage for you because that gives them an incentive to make those assets grow, he says.
Other topics an investor should ask about include:
• Communications. How frequently does the advisor communicate with clients? Does he or she proactively send out the reasons for buy-and-sell decisions that are made in a client’s account?
• Client service. Ask the advisor to explain their client-service philosophy and what steps they take to ensure that each client receives personal and professional experience.
• Succession. Find out what happens to your money if your advisor dies or retires. There should be a succession plan in place so that the advisor’s accounts are passed onto someone else, but you also need to make sure you are comfortable with that successor.
For investors concerned about retirement, having the right advisor concentrating on the right investments is critical.
“How you retire tomorrow,” Mike Desepoli says, “depends on how well you plan today.”
About Lou Desepoli
Lou Desepoli is the president and founder of Desepoli Wealth Management (www.desepoliwealth.com). He has more than 30 years’ experience in investment management, financial planning and tax consulting. He is also a CPA.
“Saving for the future shouldn’t be a privilege for the wealthy, and Washington doesn’t need to put another roadblock between people and their financial goals. By ignoring the advice of the SEC and Congress, the DOL’s rule will increase the cost of retirement advice for lower- and middle-income Americans while creating a preferred class of rich investors. I will continue to fight for everyone’s right to get good financial advice because—unlike this administration—I believe in the people of New Jersey to make the best choices for their families and their futures.” Rep Scott Garrett
April 7,2016
the staff of the Ridgewood blog
Ridgewood NJ, Yesterday’s editorial (opening paragraphs below) point out that this set of rules is slanted to capture investment accounts with the goal of making small and medium sized savers invest in government run plans. Follow the money — those government run plans are going to lean toward investing in government paper with associated pitiful returns. That’s the conflict of interest that’s not being disclosed.
From the editorial…
President Obama’s regulators aren’t slowing down, alas. And on Wednesday they unveiled another part of their plan to push Americans out of private investment accounts and into government-run plans.
The Department of Labor says its so-called fiduciary rule will make financial advisers act in the best interests of clients. What Labor doesn’t say is that the rule carries such enormous potential legal liability and demands such a high standard of care that many advisers will shun non-affluent accounts. Middle-income investors may be forced to look elsewhere for financial advice even as Team Obama is enabling a raft of new government-run competitors for retirement savings. This is no coincidence.
Bu
Labor’s new rule will start biting in January as the President is leaving office. Under the rule, financial firms advising workers moving money out of company 401(k) plans into Individual Retirement Accounts will have to follow the new higher standards. But Labor has already proposed waivers from the federal Erisa law so new state-run retirement plans don’t have the same regulatory burden as private employers do.
This competitive advantage could be significant. Last month the board of California’s new “Secure Choice” retirement plan wrote to state legislators about their “exciting win” in Washington. They reported that employers enrolling workers in the new government-run plan “would have no liability or fiduciary duty for the plan.” Score! The California bureaucrats added that “we have been given the green light to auto-enroll workers into an Individual Retirement Account (IRA).”
Meanwhile, there are only losses for private competitors. The final rule Labor Secretary Tom Perez unveiled Wednesday is being marketed as less onerous than an earlier draft. Thus much of the financial industry is going to take a few weeks to decide on its response. But the main question is exactly how many billions of dollars in costs and lost opportunities will be visited upon investors. And how big the incentive will be to seek government options…
By Quentin Fottrell, Marketwatch
January 6, 2016 | 1:24pm
Americans are starting 2016 with more job security, but most are still theoretically only one paycheck away from the street.
Approximately 63 percent of Americans have no emergency savings for things such as a $1,000 emergency room visit or a $500 car repair, according to a survey released Wednesdayof 1,000 adults by personal finance website Bankrate.com, up slightly from 62 percent last year. Faced with an emergency, they say they would raise the money by reducing spending elsewhere (23 percent), borrowing from family and/or friends (15 percent) or using credit cards to bridge the gap (15 percent).
This lack of emergency savings could be a problem for millions of Americans. More than four in 10 Americans either experienced a major unexpected expense over the past 12 months or had an immediate family member who had an unexpected expense, Bankrate found. (The survey didn’t specify the impact of that expense.) “Without emergency savings, you may not have money to cover needed home repairs,” says Signe-Mary McKernan, senior fellow and economist at the Urban Institute, a nonprofit organization that focuses on social and economic policy. “Similarly, without emergency savings, people could raid their retirement account.”
Ridgewood NJ , Is your college student/recent grad clueless about Managing their money?rnDo they understand the real life lessons of money management?rnrnThe Alexandrite Group is offering Money Management Classes in a small group setting in Rochelle Park, NJrnSign up for our classes:rnrnTopics include: bank accounts, credit cards, loans, spending plansrnrnprivate sessions also availablernrnIntro to Managing Your Money rn(ages 18-26)rnTuesday, January 12rnorrnThursday, January 14 rn7:00 –8:30 pmrnrnIntro to Managing Your Money rn(for parents)rnTuesday, January 5rnorrnThursday, January 7 rn7:00 –8:30 pmrnrnOne session: $79rnrnBoth sessions: $139rnrnto register online www.alexandritegroup.comrnrnDianeNissen, CMA and money coach, has been helping clients and presenting financial seminars since 2008. Her presentations are interactive and always leave the audience with practical, useful information. rnrndiane@alexandritegroup.comrnrn
For many in U.S., cash saved at gas pump is staying in pockets
FEBRUARY 19, 2015 LAST UPDATED: THURSDAY, FEBRUARY 19, 2015, 1:21 AM
BY CHRISTOPHER S. RUGABER
THE ASSOCIATED PRESS |
WIRE SERVICE
* Reduced spending may slow economy for quarter
WASHINGTON — In recent months, the stage seemed set for American consumers to do what they’ve traditionally done best: spend money — and drive the economy.
The lowest gas prices in five years had given people more spending money. Employers added more than 1 million jobs from November through January, the best three-month pace in 17 years. Businesses even raised pay in December. Economists had forecast that last week’s retail sales report for January would show a healthy rise.
And yet — to the surprise of analysts — consumers have held their wallets closely.
Even though Americans spent $6.7 billion less at gas stations in January than they had two months earlier, the extra cash didn’t get spent anywhere else: Retail sales, excluding gas, fell slightly from November to January.
The unexpected pullback provided evidence that drivers had used their extra money to further rebuild their savings and reduce their debts — a trend that began after the financial crisis and recession.
In the long run, deeper savings and shrunken debts benefit individual households — and, eventually, even the economy as a whole, because they supply fuel for a sustained flow of future spending.
For now, though, the slowdown in consumer spending likely means the economy will grow more slowly in the first quarter of the year than economists had previously envisioned. Their forecast now is for annualized growth of 2.5 percent from January through March, down from an earlier estimate of about 3 percent.
https://www.northjersey.com/news/business/consumers-aren-t-buying-it-1.1274319
NJ TRANSIT OFFERS EXTRA SERVICE AND SAVINGS FOR HOLIDAY WEEK
Money-saving Family Super Saver fares in effect continuously from December 24 until January 5
NEWARK, NJ — NJ TRANSIT is offering extra service for the upcoming holidays to give customers more travel options, whether going to the mall for last-minute shopping, leaving work early for the Christmas and New Year’s holidays, or attending New Year’s Eve festivities.
In addition, NJ TRANSIT is giving customers more than two weeks of continuous savings through a special extension of the Family Super Saver Fare, which allows up to two children 11 and younger to travel free with each fare-paying adult. Usually limited to weekends, the Family Super Saver Fare will be in effect for the entire holiday period, starting at 7 p.m. Wednesday, December 24 until 6 a.m. Monday, January 5, on all trains, buses and light rail lines.
NJ TRANSIT customer service representatives and volunteers will be deployed at major facilities throughout the holiday weekend to assist customers with their travels.
For complete schedule and fare information, customers may visit njtransit.com or call 973-275-5555.
On Wednesday, December 24, trains will operate on a weekday schedule on all lines with additional “early getaway” service from New York Penn Station, Newark Penn Station and Hoboken Terminal starting at 1 p.m. on the Northeast Corridor, North Jersey Coast, Raritan Valley, Morris & Essex, Pascack Valley and Port Jervis lines. Newark Light Rail, Hudson-Bergen Light Rail and River Line will operate on a weekday schedule. Buses will operate on a regular weekday schedule on most routes, with early getaway service from the Port Authority Bus Terminal starting around 1 p.m. to accommodate the heaviest travel. Visit njtransit.com for details.
On Christmas Day, Thursday, December 25, trains will operate on a weekend schedule/major holiday schedule on all rail lines. Newark Light Rail and River Line will operate on a Sunday schedule. Hudson-Bergen Light Rail will operate on a weekend schedule. Holiday bus schedules vary by route—customers are advised to visit njtransit.com for details.
On Friday, December 26, trains will operate on a modified weekday schedule on all rail lines with additional New York-bound trains between 10 a.m. and noon on the Northeast Corridor, North Jersey Coast and Morris & Essex lines. Customers are encouraged to travel early, if possible, when ridership is light. Select morning peak period trains on the Northeast Corridor and North Jersey Coast Line will not operate due to expected light ridership—customers should visit njtransit.com and use the “Station-to-Station Trip Planner” to find trains between the holidays. Newark Light Rail, Hudson-Bergen Light Rail and River Line will operate on a weekday schedule. Selected Port Authority Bus Terminal routes will see some reductions in a.m. and p.m. peak service due to lower passenger demand. Please consult njtransit.com for additional details.
On Saturday, December 27, trains and buses will operate on a weekend schedule. Newark Light Rail and River Line will operate on a Saturday schedule. Hudson-Bergen Light Rail will operate on a weekend schedule.
On Sunday, December 28, trains and buses will operate on a weekend schedule. Newark Light Rail and River Line will operate on a Sunday schedule. Hudson-Bergen Light Rail will operate on a weekend schedule.
Extra service to/from New York on selected routes.
Newark Light Rail and River Line on Sunday schedule; HBLR on weekend schedule
On Monday, December 29, and Tuesday, December 30, trains will operate on a modified weekday schedule on all rail lines with additional New York-bound trains between 10 a.m. and noon on the Northeast Corridor, North Jersey Coast and Morris & Essex lines. Customers are encouraged to travel early, if possible, when ridership is light. Select morning peak period trains on the Northeast Corridor and North Jersey Coast Line will not operate due to expected light ridership—customers should visit njtransit.com and use the “Station-to-Station Trip Planner” to find trains between the holidays. Buses and light rail lines will operate on a weekday schedule.
On New Year’s Eve, Wednesday, December 31, trains will operate on a modified weekday schedule on all rail lines with additional New York-bound trains between 10 a.m. and noon on the Northeast Corridor, North Jersey Coast and Morris & Essex lines. Customers are encouraged to travel early, if possible, when ridership is light. Select morning peak period trains on the Northeast Corridor and North Jersey Coast Line will not operate due to expected light ridership—customers should visit njtransit.com and use the “Station-to-Station Trip Planner” to find trains between the holidays. Additional “early getaway” service from Hoboken Terminal will operate on the Pascack Valley and Port Jervis lines in the afternoon. In the evening, additional New York-bound trips will operate on the Northeast Corridor, North Jersey Coast and Morris & Essex lines. In addition, certain trips that normally depart just before or just after midnight will operate later to accommodate customers returning from New Year’s festivities.
Bus schedules vary by route. Customers are advised to check their timetables or visit njtransit.com for schedule information. Selected routes will operate on special holiday schedules, available on njtransit.com, to match service with ridership demand, including early getaway service from the Port Authority Bus Terminal between noon and 4 p.m. to accommodate the heaviest travel, with less frequent service during the peak periods and later in the evening due to lower ridership. Early getaway service will also operate from the Jersey City Waterfront on the No. 64 and No. 68 bus routes. In the evening, additional service to the Port Authority Bus Terminal will be offered on selected routes from approximately 3 p.m. to 9 p.m. to accommodate customers traveling to New York for the festivities.
Hudson-Bergen Light Rail, Newark Light Rail and River Line will operate on a weekday schedule.
In addition, River Line will operate extended late-night service on New Year’s Eve and after midnight on New Year’s Day to accommodate customers attending the festivities on the Camden Waterfront. Special late-night trains will operate between Camden and Trenton, making all local stops.
Hudson-Bergen Light Rail will also operate added late-night service on New Year’s Eve into New Year’s Day to accommodate travelers returning home from midnight celebrations.
IMPORTANT NOTE: No open containers of alcohol will be permitted on board trains, light rail vehicles, aboard buses or in any NJ TRANSIT facility. This policy will be strictly enforced on New Year’s Eve and after midnight.
After midnight, special late-night trains will operate on most rail lines, and expanded bus service will be provided from the Port Authority Bus Terminal until approximately
2 a.m. on selected routes. Visit njtransit.com for details.
On New Year’s Day, Thursday, January 1, trains will operate on a weekend/major holiday schedule. Newark Light Rail will operate on a Saturday schedule. River Line will operate on a Sunday schedule. Hudson-Bergen Light Rail will operate on a weekend schedule. Holiday bus schedules vary by route—customers are advised to visit njtransit.com for details.
On Friday, January 2, trains will operate on a modified weekday schedule on all rail lines with additional New York-bound trains between 10 a.m. and noon on the Northeast Corridor, North Jersey Coast and Morris & Essex lines. Customers are encouraged to travel early, if possible, when ridership is light. Select morning peak period trains on the Northeast Corridor and North Jersey Coast Line will not operate due to expected light ridership—customers should visit njtransit.com and use the “Station-to-Station Trip Planner” to find trains between the holidays. Buses and light rail lines will operate on a weekday schedule. Selected Port Authority Bus Terminal routes will see some reductions in a.m. and p.m. peak service due to lower passenger demand. Please consult njtransit.com for additional details.
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