1267

Wherever you arein life, wherever you are in Montana.

Money isn’t everything.  But having enough money can be the difference between worrying about the future and feeling secure.  Too many Montanans don’t know enough about money; especially about how to make it work as hard as they do.  Monica Lindeen, Montana’s Commissioner of Securities and Insurance, wants to change that.  She is promoting online financial courses provided by MSU’s Extension Services.

It’s called Solid Finances.  It’s financial education for real life.  The courses are webinars that can be downloaded & watched at your convenience, presented by Montana’s leading financial experts, and all are under an hour.  If you complete 10 courses CSI will send you a $10 gift certificate.  You’ll also get the knowledge you need to manage your investments (or the courage to start).

It’s OK to be picky.  MSU offers 29 courses.  Complete any 10 to get the gift certificate.  The classes are varied and geared toward solving – or avoiding – real problems.  They have titles like:  What’s Your Credit Score and What Does it Mean or When Should I Claim Social Security Benefits.  The best part is the cost:  absolutely nothing.  Begin now; the courses are available on MSU’s website at www.msuextensiuon.org/solidfinances.

When you complete 10 courses email CPalmer3@mt.gov to receive your gift certificate.

Presented by Commissioner of Securities and Insurance – Montana State Auditor and Investor Protection Trust.

Hello world!

Welcome to WordPress. This is your first post. Edit or delete it, then start writing!

The Power of Planning

Did you know that seven out of 10 Montanans don’t have a written will? Dr. Marsha Goetting, MSU Extension Family Economics specialist, shares some of her knowledge in this article written in the Spring 2016 issue of Montana State University’s magazine, Mountains & Minds.

 

If you are a Montanan with a question about wills or how to avoid probate, chances are you have run into Marsha Goetting. In the last year the Montana State University Extension family economics specialist traveled nearly 7,000 miles to 48 communities in the Big Sky state to teach free courses in estate planning to more than 1,378 Montanans. It’s a labor of love for Goetting, who in nearly 40 years as a MSU Extension specialist has built a national reputation for providing vital information about estate planning.

What are some of the most popular questions about estate planning?

The most popular topic has been what happens to your property if you die without a written will, as do seven out of 10 Montanans.

What is the number one most important piece of advice that you give to those who attend your seminars?

Do your estate planning now. We are all going to die someday, so we might as well be prepared so that those we want to receive our assets do indeed receive them.

What estate planning topics do people seem to know the least about?

Here are three:

Right of Representation. Under Montana’s intestacy (dying without a will) statutes, property is distributed by right of representation. Some wills and trusts have similar provisions. I have found that 92 percent of the members of my audience have answered a question incorrectly about how their property would be distributed if they should die.

Death Taxes. When asked what percent of Montanans paid an inheritance tax in 2014, usually from 65 to 90 percent indicate that all those who inherit property have to pay. What a surprise to learn that there is no longer an inheritance tax in Montana! A spouse, children, grandchildren or friends do not pay a Montana inheritance tax when they inherit property. When asked what percent of Montana’s deceased persons’ estates paid a federal estate tax in 2014, again, the majority respond with 65 to 100 percent. They are shocked to learn that less than one percent of Montana’s deceased person’s estates paid a tax in 2014.

Avoiding probate. One of the most popular topics in my presentations has been how property could be distributed without probate by using payable on death designations on checking accounts and certificates of deposit or transfer on death registrations on stocks, bonds or mutual funds.

What actions do people plan to take after attending one of your sessions?

After attending a presentation, here’s what attendees say they will do:

  • 15 percent intend to write a will in their own handwriting
  • 30 percent indicated they are going to review their wills
  • 38 percent will see an attorney about executing a will
  • 94 percent plan to discuss estate planning with a spouse and/or family members    
  • 90 percent indicated they are going to review their property ownership titles
  • 91 percent plan to review their beneficiary designations on their assets
  • And, 99 percent indicate they will recommend my presentation to others. ■

To view the original article, click HERE.

 

“Spend, Share, Save” Poster Contest

We are excited to share an opportunity to involve students grades K-5 with a little financial education via a fun competition!

 

Spend, Save, Share Jars

The Montana Financial Education Coalition has organized a Poster Contest with the theme “Spending, Saving, Sharing.”  This is a fun activity to share with kids to talk about financial literacy.  The winners win a small prize!  The entry submission deadline is Friday, October 16, 2015.  More information is provided below in the attached documents.

Please share this contest opportunity with those in your community working with students in grades K–5th grade.  Perhaps this would be a great activity to have middle school or high school students visit an elementary classroom and they could do it together as a project!

Thank you for your support of financial literacy!

“Spend, Save, Share” Coloring Sheet

MFEC 2015 Poster Contest Guidelines

MFEC 2015 Poster Contest Permission Form

Improving Millenials’ Financial Literacy With Mobile Technology

The ninth annual Financial Literacy Summit co-hosted by the Federal Reserve Bank of Chicago and Visa Inc. is on April 15, 2015.

This year’s program brings together international financial literacy experts to focus on improving millennials’ financial literacy using mobile technology.

What: Improving Millennials’ Financial Literacy with Mobile Technology
When: Wednesday, April 15, 2015, 9:00 a.m. Central Time
Where: The Federal Reserve Bank of Chicago, 230 South LaSalle Street, Chicago, IL

Space is limited to attend the event in person at the Federal Reserve Bank of Chicago. There is no cost to attend the event or to view it online, but registering in advance is required.  For more information, visit http://www.practicalmoneyskills.com/summit2015/register.php.

If you have any questions about the Summit, please send them to summit@practicalmoneyskills.com.

Heard Off the Street: A financial planning lesson for youngsters

December 22, 2013 12:00 AM By Len Boselovic / Pittsburgh Post-Gazette

Pretty soon, some area high school students will have something their parents lack: a financial plan.

Junior Achievement and the CFA Society of Pittsburgh are teaming up with the co-author of a book on financial literacy and two local universities to offer high school students a course on how to manage their finances.

The course, based on a five-class course JA already uses, will be taught either by a high school teacher or a volunteer from the CFA Society. As part of it, students will prepare a five-year financial plan that will include information on possible career choices, what kind of education they will need and how much they can expect to pay — and borrow — for school, as well as what to do about credit cards and other forms of debt.

The financial plans will be critiqued by business school students from the University of Pittsburgh and Duquesne University.

“If you’re a principal or high school teacher, you’re hard pressed to think of a subject that impacts 100 percent of your students, but this one does. One hundred percent of them make choices about money,” said Gene Natali Jr. of C.S. McKee, a Downtown investment firm.

Mr. Natali and his high school friend, Matt Kabala, co-authored “The Missing Semester,” a short, breezy primer on financial planning that will be required reading for the course. Mr. Natali has spoken on the topic at several local high schools and colleges since the book was published in 2012. Junior Achievement and the CFA group run educational programs for high school students and contacted Mr. Natali about teaming up.

Len Boselovic: lboselovic@post-gazette.com or 412-263-1941.

Read the full article at: http://www.post-gazette.com/business/Biz-opinion/2013/12/22/A-financial-planning-lesson-for-youngsters/stories/201312220115#ixzz2oJSBRMz2

Retirement Saving and Investing 101

By Michael Guillemette

Saving and investing for retirement can seem very complicated, but following a few simple rules can make a significant difference in the long run:

 1.      Save early and often
The earlier you start saving for retirement the less you will need to save.  For example, if a 25 year-old wants to have 2 million dollars in 40 years he or she would need to save $1,004 per month for 40 years, assuming a 6% annual rate of return.  If that same person waited until they were 35 to begin putting money away they would need to save $1,991 per month for 30 years, or almost double the amount! 

It is advisable to setup automatic contributions from a checking or savings account into a retirement plan like an individual retirement arrangement (IRA).  This is because when people have to think about whether to save they often delay the decision.  Setting up automatic contributions is a great way to put retirement savings on “autopilot” and avoid the temptation to spend the money.

2.      Diversify in stocks and bonds
When it comes to investing, diversification is vital to earning the best possible risk-adjusted return.  The concept is simple.  You want to invest in products that tend to do well during good economic times (like stocks) and also bad economic times (like bonds).  This way you do not put all of your eggs in one basket and the result is a steadier return over time.  It is important to invest in low cost mutual funds or exchange traded funds (ETF) that hold a large number of stocks or bonds (or both).  

When people are young and have a greater level of human capital they can afford to invest a higher percentage of their retirement savings in stock funds.  This is because they have a larger amount of future earnings that can offset the risk associated with stocks.  However, as people age and their human capital declines it is more difficult to offset the risk associated with stocks. Therefore, a higher percentage of retirement assets should be allocated to bonds as people age. A target-date (or age-based) fund is a mutual fund or ETF that holds a mix of stocks and bonds.  Target-date funds automatically increase the percentage allocated to bonds over time to account for the decline in human capital and are good “autopilot” investment products. 

3.      Understand your risk tolerance
It is important to consider your risk tolerance, or willingness to take risk, prior to investing in stocks and bonds.  The key thing to remember is that if an investment keeps you up at night, it is too risky.  The amount of money someone has is irrelevant in relation to how much risk they are willing to take.  Many retirees who grew up during the Great Depression have saved significant sums of money but are not willing to lose any of it, and therefore do not invest in stocks.

4.      Don’t time the market!
The easiest way to lose money investing in stocks and bonds is to try and time the stock market, or jump in and out based on the current economic environment.  Research has shown that investors lose significant returns by trying to time the stock market.  Since retirement is a long-term goal, the daily, monthly and even annual performance of your stock and bond funds does not really matter.  This is because over the long-run, a mix of stocks and bonds provides steady growth.  Warren Buffett provides similar investment advice in this video:  https://www.youtube.com/watch?v=idr6c8NHuWs

Michael Guillemette, Ph.D.
Assistant Professor
Department of Personal Financial Planning
University of Missouri