Health Talk Today

Financial Health

I Won $1,500,000

Man on Phone

I got a call this morning from 876 area code.
The call was just a little garbled.
The caller spoke with an accent.
There was music playing in the background.
It was hard to understand what he was saying.
He kept saying “Do you understand?”

Here’s what I could understand …
His name is Mr E X (something).
MegaMillions in Colorado.
I won $1.5 million because I pay my utility bills on time.
I just need to pay $180 processing fee.

As soon as I could understand that he was not calling my business, I was laughing and telling him I don’t believe him. I hung up. Then, I did a little research.

876 Area code is in Kingston, Jamaica.
It’s well known for phone scams.
876 Area code is often mistaken as a toll free number on caller ID.

How can you protect yourself?National Do Not Call Registry

  • If you have caller ID, don’t answer calls if you don’t recognize the number.
  • Never give any personal information to a caller, including name, address, social security number, bank or credit card numbers, passwords or pin numbers.
  • Don’t believe them, no matter what they say.
  • Hang up. Don’t give them a chance to convince you to do something.
  • Enter your phone number on the National Do Not Call Registry.
  • Report telephone scams to your local authorities.

More info from AARP

Leave a comment with your phone scam experience.

Marilyn Kvasnok


Retirement Planning

A lot of people believe that Social Security and Medicare will finance their retirement.  But, Social Security was never meant to be a total retirement income.  We all need to fund our own retirement.  And the sooner you start, the more you’ll be able to save.  If you haven’t been able to save anything from your current income, how will you be able to live on less when you retire?  Here are some ideas to jump start your retirement nest egg.

Stop Spending
When you’ve dug yourself into a hole, the first thing to do is stop digging!  Think about your purchases and only spend what’s truly necessary.  No, a Starbucks latte is NOT necessary.

Make a Budget and Stick to it
Do you really know how much you spend?  It’s easy to see the rent/mortgage, utilities and car payment.  But, what about the impulse spending?  Keep track of every penny you spend for a month.  Sort it into categories.  At the end of the month, you’ll have a true picture of what you really spend.  Now, add all the other expenses that occur throughout the year:  Real estate tax, car insurance, homeowner’s insurance, AAA, Costco membership, credit card interest, etc.  Next, the trick is to make your expenses total less than your income.  The difference can be saved for retirement.

Pay Yourself First
Once your budget is under control, choose a savings vehicle.  I like The Vanguard Group mutual funds.  If you can’t meet the minimum contribution, start with a savings account at a bank or savings and loan.  The idea is to get the money out of your hands and put it where it will earn income, even if it’s minimal to start.  Set up an automatic monthly transfer from your checking to the savings account.  One goal would be to live on 90% of your income and save 10%.

Don’t think you can live on 90% of your income?  The Richest Man in Babylon is a short, easy to read book, written like a fable.  It has a common sense approach to saving money – No matter how much or little you make.

Roth IRA (Individual Retirement Account)
One good way to save for retirement is to open a Roth IRA.  It’s funded with after tax dollars, so it grows tax free.  That means you pay income tax on the money you deposit into the IRA account.  When you withdraw the money, it’s all tax free because you’ve paid the tax on your contribution. You can open a Roth IRA at many financial institutions, including banks, brokerage firms and mutual fund companies like The Vanguard Group.

The alternative is to open a Traditional IRA and fund it with pre-tax dollars.  It grows tax deferred, so you don’t owe tax until you withdraw the money.  But, if you contribute every year and your investment grows, you’ll have to pay tax on all the money you withdraw – Not just your contributions.

Free retirement planning info and programs:  Analyze Now!

Yahoo Finance, Financially Fit:  A Guide to Saving Smart and Living Well

Yahoo Finance, Financially Fit:  Boost Your Social Security Benefits

Social Security Administration: What You Need To Know When You Get Social Security Disability Benefits

What else can you do to plan for retirement?  Comments are welcome.

Marilyn Kvasnok


How Much is One Trillion Dollars?

A really long time ago, I remember when $20 in my wallet seemed like a lot of money. By the time my family was growing and the economy was booming, I needed $100 when I was shopping. Today, I need a credit card.

There’s a lot on the news lately about the federal budget and the national debt. I remember when a million dollars sounded like a lot of money. Then, it was a billion. Now, I often hear a trillion dollars on the news. How much money is that? Watch the video to learn more . . .

Video compliments of www.mint.com, a free site where you can track your finances and create a budget. You need to add your bank, credit card, home loan and investment account information – Not something I recommend. Then, Mint pulls in your balances, purchases, stock trades, etc. to give you a complete picture of your finances.

Marilyn Kvasnok

Who Are You?

Are you defined by the things you have? The things you buy? Are you in debt beyond what you can reasonably expect to ever repay? Are you always trying to keep up with your family and friends’ lifestyles?

Or are you defined by WHO you are? What are your values? What are your priorities? What do you truly believe in? Isn’t this much more important than stuff?

The recession is real and it’s not going away any time soon. It’s making all of us take a long, hard look at who we are.

Suze Orman had very good advice on the Today Show today. She said, “If you have the money – Spend it. But if you don’t have the money – You need to save it.” Great advice from an expert. If you’re digging yourself deeper and deeper in debt, it’s time to stop. It’s time to prepare for the future. Pay your bills – Mortgage/rent, utilities, car payment. But stop the non-essential spending – Going out to eat, movies, vacations. Find the money to start saving. If things get worse before they get better, you’ll be glad you have some money put away. And when the economy improves – And it will – You’ll have a habit of savings AND money in the bank!

Marilyn Kvasnok

Health Insurance For One

I’ve been self-employed for many years. Even when I had a job in the early 90’s, the company didn’t provide health insurance. So, I have an individual health insurance policy. It started out at about $100 a month. It seemed expensive, especially because I rarely used it. The premiums increased every year, but, I knew I couldn’t go without health insurance any more than I could go without car insurance. So, I paid … And paid … Every month … Year after year.

Starting January 1st, my premium rose about $40 to $550 a month. And I still don’t use it. So, I knew I had to do something. I’ve lowered my premium in the past by raising my deductible. But this time, I wanted to REALLY lower it.

My policy is with Blue Cross Blue Shield. I learned that if I stay with them, I can change to any other policy they have without worrying about passing a physical or even filling out an application.

I found a plan that sounds good. It has a $5,000 deductible. That sounds high, but the policy works a little different from most. Wellness visits and routine tests are covered. If I go to a doctor with a medical issue, I pay the preferred, negotiated rate – Thanks to Blue Cross Blue Shield. There’s no co-pay. When I reach my $5,000 deductible, medical bills are covered 100% – Not 80/20.

I thought one drawback was going to be the network providers that I had to use. My policy is Ohio based, but I spend winters in Florida. According to the insurance agent, I can use any Blue Cross Blue Shield provider in the US. There are even providers internationally. At this point, I’m just about sold on this policy.

The deciding factor was the premium. I now pay $225 a month. That’s a savings of $325 a month that I can use for doctor visits. And if I don’t go to the doctor, I get to keep the $325.

This plan is called Lumenos HSA 100. Learn more of the plan details. Mine is an Ohio plan, but it may be available in other states.

Marilyn Kvasnok
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