Joint vs. Separate Checking Accounts

The debate over joint versus separate bank accounts has always been a hot topic among married, or soon to be married, couples. Some couples swear by separate bank accounts while others think joint accounts are the only way to go.

Neither method is right or wrong; however it is important that couples decide what works for their situation. Finances can often be complicated by a variety of factors such as previous marriages, child support, credit card debt and student loans. Because resentment over money can fester and ruin a relationship, this is one of the conversations that should occur sooner rather than later in the marriage.

I'll have more on this in subsequent postings.

More on Finances

Before you become eligible for Medicare, you might want to consider purchasing a major medical plan to cover doctors' visits, drugs and hospital care. These plans, which can vary in costs and medical benefits, include indemnity plans, preferred provider organization (PPO) plans, health maintenance organization (HMO) plans and point-of-service (POS) plans.

8th Key to Good Credit

#8 tip for good credit:

Build an emergency fund equal to at least six months of living expenses. If the unexpected happens, you will still be able to pay fixed expenses instead of falling behind.

See last blog for item on COBRA. If you are not eligible for COBRA, you might want to consider a catastrophic or high-deductible medical plan, which typically carries lower premiums than other individual policies. Keep in mind that people with serious preexisting health problems - such as heart disease, diabetes or multiple sclerosis - typically cannot get catastrophic health insurance.

Happy February

Early spring is on the way!

Tip # 7 for Good Credit: Order a free copy of your credit report. Under federal law, you can get a free report from each of the three national credit reporting companies every 12 months at www.annualcreditreport.com or call (877) 322-8228. Read your report carefully and correct any errors.

By the way, if you plan to retire from your job before age 65 and are not eligible for Medicare, check to see if you are eligible for COBRA. COBRA is a federal law that typically entitles you to continue your employer's health insurance coverage for up to 18 months after leaving a job.

Good Credit

Tip # 6 for getting and keeping good credit:

#6. Avoid offers to open several different credit cards, and never use one credit card to make payments on another.

A reminder: Americans are eligible for Medicare at age 65, so take this into consideration if you plan to retire at an earlier age.

Good Credit

Tip # 5 on your path to credit quality:

#5. Use debit and credit cards for convenience and safety, but not to overspend. Monitor the activity on your account and review statements carefully. Be sure that you understand the terms and any fees that may apply.

Want a map of some interesting side trips in Dane County? Send e-mail.

Good Credit

Tip # 4 to establishing good credit and a solid financial future:

4. Pay all your bills on time, including utilities and even gym fees and parking tickets.

Tip # 3

Tip # 3 for building a solid financail future:

3. Develop and follow a budget. Make sure to account for both fixed and non-monthly expenses, such as insurance and taxes.

More Financial Tips

The second tip for good credit and a solid financial future is:

Open a savings account and contribute to it regularly. One process I have followed is to open a savings account; build it to $1,000. Then buy a bank certificate of deposit with a higher interest rate. Rebuild savings to $1,000 and do again. An alternative to the bank certificates, depending on your age, would be to put the $1,000 into a broad based mutual fund; like Vanguard 500 or Russell 2000.

Good Credit

Beginning with this posting, I am going to offer some tips for those whose resolution for 2010 is to establish and maintain good credti. Having a good credit history is key to any financial plan. Establishing good spending and saving habits, and sticking with them, is critical when times are tough and can go a long way toward helping you achieve your financial goals.

Tip # 1: If you are just beginning to establish your credit history, open a checking account and keep careful track of your balance.

Congress Looking Out For Us

I have to smile everytime I get a "Privacy Policy" mailing from a company. Have you ever taken time to read one? I haven't and I doubt if more than 1% do. But it makes someone in Washington feel good. These legalese documents are a waste of time and money.

Badgers & 2010

I attended the Champs Bowl game in Orlando which saw the Badgers beat the Hurricanes from U of Miami. It was one of the better wins I've ever seen. But it was cold! Badgers should be something special in 2010.

I do wish you the very best of happiness and good health in 2010!

Prime Rate Changes

In 2009 the prime rate did not change. It was 3.25% all year long. The last year the prime so no change was in 1993. From the end of 1962 till the end of 1966 there were no changes. By contrast, in 1982 the prime changed 38 times; 107 times from the end of 1979 to the end of 1984.

Merry Christmas

Merry Christmas. May the spirit of the season be present in your life all year long!

Edgewater

The recent opposition to the proposed Edgewater Hotel project puzzles me. As I see it, the addition of this project benefits our entire community.

Winter

This is the first winter I have had thoughts about escaping the snow and ice for warmer climes. Maybe it is because I am unable to get to my cabin and enjoy the snow rather than trying to drive in it.

Wow! This Is A Big One

Memories of growing up in the Upper Peninsula of Michigan were reignited when I got up this a.m. And my black lab sure had a problem finding a "bare" spot to do her "business!"

It is now 8:34 a.m. and three of us have arrived at the Bank. We are encouraging people to be smart and not venture out unless you are confident you won't have a travel problem.

Aloha

I'm just back from a great time in Maui, Hawaii! We were so proud of our basketball Badgers (men) as they took 3rd place in the Maui Tourney. There were 8 teams involved and we only lost to the eventual champion.

Now we wait for the "big" snow storm. What a great country we live in where one basks in 85 degrees one day and then returns to temps in 20's and snow!

Gotta love it!

Aloha II

Ooops. I'm gone for a few days to Maui for UW Men's basketball tourney and some whale watching, I hope.

Happy Thanksgiving .... and God bless America.

Aloha!