Comments on: Please, Recommend a Personal Finance Product to Me!

By: Jacqui

Jacqui — Mon, 15 Sep 2008 20:45:38 +0000

Century Bank Direct for checking, savings, and moneymarket (all over 3% – why does no one know about them?). Primary CCD is Amex Clear – $25 Amex gift card for every $2500 spent, no min no max, automatically mailed to you after each statement (it, and the back-up MasterCard are paid in full every month). Sharebuilder for a Roth IRA, soon Zecco for my husband’s Roth IRA. Currently hunting for a self-directed Roth 401k. State Farm insurance (home & auto). NYS 529 (uses Vanguard funds). HSBC mortgage (no debt besides the mortgage). Moneydance personal finance software to keep track of it all.

By: Wade

Wade — Mon, 15 Sep 2008 11:23:50 +0000

I am an avid Quicken user and the new 2009 is great. However, I have never been a fan of Quicken’s budgeting feature and for that I use You Need a Budget, which is a simple Excel spreadsheet with some nice but simple features for budgeting.

http://www.youneedabudget.com

Thanks for all your blogging.

Wade

By: Ellen Kay

Ellen Kay — Thu, 11 Sep 2008 22:12:56 +0000

I have several credit cards I have not used in over 3 years. I have not closed those accounts because I understood it might affect my FICO score. When I get the new cards I just stash them away and do not activate them……. does this do anything to my FICO score? I now have no credit card debt

By: No Debt Plan

No Debt Plan — Thu, 11 Sep 2008 15:10:47 +0000

I’m in the same boat with the software. I tried using Quicken and Wasabe and was not impressed. An admittedly complex Excel spreadsheet covers all of my needs.

By: Emily

Emily — Thu, 11 Sep 2008 04:49:16 +0000

Chris B and Trent,

A 529 is owned by the parent (or whoever establishes the account) for the benefit of in Trent’s case the child. It is the asset of the owner. But a 529 can be used for your own benefit. So, say you wanted to go to college, but knew you weren’t going for some time. You could open a 529 for the benefit of yourself and it would be your asset for your benefit. UGMA/UTMAs are not used as much anymore because of the fact that you are stuck with your beneficiary and the child is technically considered the owner of the account.

By: Erin

Erin — Wed, 10 Sep 2008 21:55:22 +0000

As for money management programs, have you looked at mint.com? Mint syncs with your bank account online so you can track your spending. I love it.

By: Katie

Katie — Wed, 10 Sep 2008 19:50:42 +0000

Check out the release of the Geezeo Financial Marketplace this week. You can rate all your financial products and discover what others think about them, too:

https://www.geezeo.com/marketplace/credit_cards

By: ChrisB

ChrisB — Wed, 10 Sep 2008 18:50:51 +0000

Frugal, there is a significantly bigger hit if investments are in the kids’ name than if it’s in the parents’ name… that’s one of the benefits of a 529 or ESA over, say, a UGMA.

By: Frugal Vet Tech

Frugal Vet Tech — Wed, 10 Sep 2008 15:25:43 +0000

@ChrisB – When your kids fill out the FAFSA (the federal application for financial aid), it asks questions about the parents’ income, money in savings, money in checking, and all sorts of other related stuff. I don’t recall if it specifically asks about investments, but having the college money in your name may not benefit your children any more than having it in their name would. It’s been a while since I’ve filled out a FAFSA using my parents’ info, so it may not ask about investments, but it’s probably worth looking in to.

By: Brandon

Brandon — Wed, 10 Sep 2008 13:28:45 +0000

How about some products that you’ve had a horrible experience with?

I had an MBA professor who told us every opportunity he got about how Wachovia lost him $800k in a 6 month period from his retirement. It wouldn’t matter to me if they were dang near giving money away I wouldn’t ever use them based on his story alone.

Do you have any bad stories?

By: Jamie

Jamie — Wed, 10 Sep 2008 12:37:56 +0000

To Chris B. (post #8). Currently, 529 plans count as parent’s assets, not the kid’s, for determining financial aid rewards. And, while you do have to use it for qualified expenses (college-related) to withdraw tax-free and avoid penalties, remember that it can be used for a variety of post-secondary institutions, not just your typical 4-year university. You can also name a new beneficiary (grandchild, yourself, niece/nephew) should your kid not use it for college. You can also withdraw and take the penalty, but I’ve read that with state tax savings and good returns, this hit isn’t as bad as it could be (still a hit). Just some things to consider.

By: Miranda

Miranda — Wed, 10 Sep 2008 12:26:09 +0000

Thanks for these great suggestions! We also have three cards that we use for specific things. Having a plan is very important — it keeps us honest in our spending habits, rather than putting items willy-nilly on credit cards.

I also really like Vanguard.

Another tool we use is Consumer Reports. While sometimes it does rate financial services, we find that it can also help us find the best value on consumer products, so that we get the most bang for our buck.

By: getagrip

getagrip — Wed, 10 Sep 2008 11:47:16 +0000

Trent,

As a suggestion, in addition to this article, there are other magazines like Kiplinger’s and Money which typically rate or review a number of these areas you are asked about. You could also point your questioners there as a starting point as well (this is based on your having stated in the past that you read these magazines and articles).

By: Penny Squeaker

Penny Squeaker — Wed, 10 Sep 2008 11:09:23 +0000

Trent,

I agree w/Vanguard, they’re the best in low cost service. Given time over compounding interest for your money to grow w/o a stockbroker.

DIY investing – Traditional IRA + Rollover IRA’s from previous jobs.

Investments actually double since rolling over. Other Investment houses eat into hard earned retirement savings w/their everything fees.

By: Writer's Coin

Writer's Coin — Wed, 10 Sep 2008 10:56:06 +0000

I agree with your style of recommending things. That’s why I don’t ever feel shameful of plugging for ING referrals — everyone truly wins there. I use Vanguard too for my Roth but kept my Scottrade Roth open so I can hold on to a few stocks. That gives me a little more flexibility.

By: Jules

Jules — Wed, 10 Sep 2008 09:06:28 +0000

It would amuse you to know, I think, that ING is a Dutch bank. I, too, have an ING Online Savings account that I add to on a monthly basis (the goal is to accrue a decent emergency fund in US dollars). But I can’t access it directly from Holland, where I’m living now :-) Instead, I have to e-transfer money from my Dutch account to my American checking account and then from that to ING…

By: Ram

Ram — Wed, 10 Sep 2008 06:00:02 +0000

Kristen,
Thank you.
statement balance on the 2 cards we normally use are fully paid every month. The other 2 cards are not used for over 2 years now. so in a way, no credit card debt at all.

By: Faith

Faith — Wed, 10 Sep 2008 04:15:54 +0000

I just opened up an ING Orange Savings today because of all of the rave reviews I’ve been reading about it all over the blogosphere. Good to hear more positive comments about it!

By: ChrisB

ChrisB — Wed, 10 Sep 2008 03:32:14 +0000

At this point, we’ve decided to keep our kids’ savings in investments in our own name, for two reasons: first, we don’t want them to get a financial aid hit, and second, we don’t want the money to be locked in to one particular “item” (higher education). While it’s likely that our kids will all go to college — and I hope that they do — we are not fixated on it as the end all & be all for a vibrant life (cf. Trent’s posts on the non-necessity of college).

And since there aren’t any options for saving in our kids’ name that accomplish both things, we’ve decided — for now — to just put their investments in our name. Besides, there is an additional benefit: by pooling their savings, we get them to the $1k minimum for Vanguard’s Star fund, and like Trent, I’m a major fan of Vanguard & its philosophy.

By: Mark D

Mark D — Wed, 10 Sep 2008 00:51:39 +0000

Good sensible advice. Costco also offers a business AMEX card that I use for gas purchases. It offers a 5% rebate. I concur on Vanguard and have been with them for years. The Hilton AMEX card is great for hotel points and is really beneficial if you travel a lot.