A recent study came of out of my alma mater, The Ohio State University, that found that students today feel EMPOWERED by education and credit card debt. WHAT???!!!!

The study found that the more debt young adults (18-27) had, the higher their self-esteem. I’m sorry. WHAT???!!! So, what are students thinking?

Do they not understand the impact of that debt on their financial future? Or do they feel good because a degree is an investment in the future?

The study did find that the oldest of the study participants did show signs of stress about their debt load.  Um…probably because they finally realized they had to pay it off.

For more information on the study, check this out. What do you think? Did you feel good about having debt when you were younger? How do you feel about debt?

The study was conducted by Ohio State’s Center for Human Resource Research on behalf of the U.S. Bureau of Labor Statistics.

PS. Go Bucks!

Roth IRA: Meaning “individual retirement account” is a type of retirement plan that gives a tax break on money withdrawn during retirement. Money put into the account is deposited after taxes.  Currently, you can deposit up to $5000 into a Roth IRA per year, $6000 if you’re over 50. You can contribute based on your income. Check with your banker/financial planner to ensure you qualify. [Read more...]

We all know that the economy has been rough over the last few years, but as it picks up, the job rate goes down and our  countrymen and women spend more money, there are still questions about keeping your job.

So, when I read this article about getting plastic surgery to keep your job, it got me thinking. First thought – “seriously WHAT??!!!??”, second thought – “Why would they think plastic surgery is an option in keeping a job?”

I get it…you want to look younger so you seem closer in age to the new generation hitting the job market.  But is youthfulness and a wrinkle-free face equal to 20-30 years of experience?

Today’s the day to show your support for women’s causes and celebrate women’s achievements, even though we should do that every day.  So, as Women’s Saving club members, women, friends of women, take 5 minutes today and write a financial goal for yourself or the women in your life.

Women still only make 77 cents to the dollar vs. men, but make 85 percent of the household purchase decisions.  So, thank a woman today, just because. Thank you for reading. We love you.

The amazing, wild ride of this TIAA-CREF “Raise the Rate” contest is now over, and it’s official…

We have won the popular vote in the contest for $15,000! Here’s the official news release.

We’re excited to fulfill our pledge to Women’s Bean Project and provide them with a portion of our winnings — $1600!
(P.S. Their products make great holiday gifts.)

First off, we THANK our MANY, MANY supporters. The support we received came from all over the world and from people representing all stages of our lives — and all of THEIR friends, family and colleagues. It is tremendous and humbling. 4503 votes, people. Wow. We are so honored to be a part of such supportive communities. We found out that a side benefit to this contest was that we reconnected with many friends and family members that we have not had the chance to speak with in a long time. We love you all.

We also want to thank TIAA-CREF for this contest. Throughout the contest run, it’s created a very interesting dialogue about personal finance among the women and men in our family, friends and supporters. It’s opened our eyes to the potential and power of educated women making money a priority.

We also wish success to all the finalists and their great ideas. We’ve even heard from some of the semifinalists! We are honored to be among this group.

And now, we’re off to work on making Women’s Saving Club a reality. Expect to see in the very near future a more robust “Start Your Own Women’s Saving Club” toolkit, discussion topics, blog posts, book reviews — we have heard of so many great ideas throughout this whole process. Women’s Saving Club is truly about collaboration and inspiration — helping each other to become more educated about our own finances and be better savers. We envision an army of smart, savvy women going off into the world, leading their families, co-workers and community to becoming better savers and more financially aware.

And we’re still getting media interest in Women’s Saving Club! So cool. And fun.

In the meantime, go start your own Women’s Saving Club!

THANK YOU,
Tara and Kate

The TIAA-CREF “Raise the Rate” contest that was the catalyst for our Women’s Saving Club idea has 10 more days left. While we’re so encouraged by the voting support, what’s really most exciting are other gals in Colorado, Oklahoma and Ohio approaching us and wanting to start their own Women’s Saving Clubs!

We’re so thankful for everyone’s votes and support. As of now, we’re in second place and still sending emails, brainstorming ideas and talking about Women’s Saving Club to anyone who shows the slightest bit of interest.

If you have any ideas on how to get the word out, or if you’re wanting to help in any way, please email us at womenssavingclub@gmail.com. We need all the help we can get!

And remember, don’t forget to vote each day until Dec. 9 — and post it to your Facebook or Twitter!

Again, thank you.

We wanted to share some exciting news! The Women’s Saving Club has been named one of 10 finalists across the country in the TIAA-CREF Raise the Rate contest!!!!!!  This is truly unbelievable.

A big THANK YOU to TIAA-CREF for hosting the contest and we appreciate your commitment to helping Americans AND women save more money! We have a chance to win  up to $65,000 and we hope you’ll consider voting for us.  10 percent of our prize will be donated to Women’s Bean Project, one of our favorite nonprofit organizations!
(If you want to get straight to the voting and read the rest of this email later, here’s the link to vote.)

http://www.facebook.com/tiaa-cref?v=app_114844345212122

The ultimate contest goal was to collect ideas from individuals nationwide on how Americans can “raise their savings rate” to 10 percent in two years and then act on the winning idea.

What is our idea?

• Imagine the feel of a girls’ night out, toss in 10 incredibly smart ladies and add in a little money-conscious twist for…a Women’s Saving Club!

Why a Women’s Saving Club?

• The Women’s Saving Club was created as an outlet for us and our friends to support each other, inspire and learn from each other and hold each other accountable in money issues.
• Our club members are cool gals with ambition, initiative and an inclination toward sustainability.  We all learn something from each other when we embrace our differences and support each other.
• Often, finances are a taboo topic — it’s great to talk openly in a judgment-free zone.
• And, at each meeting, we bring food from our pantry (no buying anything) and bring items such as CDs, magazines, etc. to swap.
• Plus, we get to see each other every month!

What sets us apart from the other entries?

• You can start saving right away! All you need are friends, a house for meetings and an internet connection for research.
• In just two months of originally submitting the entry and actually starting our very own Women’s Saving Club, our members have set goals and have taken steps toward reaching their financial goals.  Check out our progress here. www.WomensSavingClub.com
• Our entry doesn’t require new technology or changes in federal law, banking practices or public policy to create change.
• Remember how book clubs took off? Well, we envision the same thing happening with Women’s Saving Clubs. Already, we have a sister club in Ohio. www.kellynwilson.blogspot.com
• It’s actually fun to save when you’re a part of Women’s Saving Club.

Where can I find more information?

• We started a blog, www.WomensSavingClub.com where we made our goals public, so we act on them.
• Plus, we include other interesting financial/savings topics that are good for club meeting fodder.

What we’re asking of you?
1. You can vote for us everyday starting Thursday, Nov. 18 until Dec. 9! We’d love the support! Tell ALL your friends!

http://www.facebook.com/tiaa-cref?v=app_114844345212122

2. You can start your own club and keep us posted on how it’s going.  We hope Women’s Saving Clubs are started in every city, in every state in our country.  If you start a club, email us at WomensSavingClub@gmail.com

- If you’re a man, don’t worry — start a Men’s Saving Club or perhaps a Poker Investment Club where you invest the winnings. Or just share this with your female friends! It’ll all comes around to a better world in the end.

3. You can encourage your friends, family and co-workers to visit our website. We want to educate women about finances since studies have shown that women control 85 percent of the purchase decisions in the home.
What is Women’s Bean Project?

• Women’s Bean Project, based in Denver, strives to change women’s lives by providing stepping stones to self-sufficiency through social enterprise. Women’s Bean Project strives to break the cycle of chronic unemployment and poverty by helping women discover their talents and develop skills by offering job readiness training opportunities. With this stepping stone toward success, the women will be able to support themselves and their families, and create stronger role models for future generations.

We hope you’ll vote for us, start your own club or consider the many ways you can save money in your life.  Thank you!

Yours in Saving (and Fun),

Tara and Kate
WomensSavingClub@gmail.com

P.S. Check out our video entry!

What are treasury bonds?

A treasury bond (T-bond) is a fixed-interest U.S. government debt security with a maturity of more than 10 years (usually 30 years).

I’ll cover the other government options in a future post and these include:

Treasury bills (T-bills) – maturity of less than one year

Treasury notes (T-notes) – maturity of 2-10 years

How can you buy them?

There are two primary ways to purchase T-bonds.  You can purchase them through a broker, dealer or bank or as an individual and you can purchase them directly through the government at www.treasurydirect.gov. You set up an account and manage these transactions yourself. 

In this post I will cover the TreasuryDirect.gov option.  If you prefer to use a broker, dealer or bank, be sure to research your options, including possible fees for account management and work with your account manager to fully understand the process.

What are the benefits of buying directly from the government?

Because you’re not dealing with a broker, there are no brokerage fees or other transaction charges, but there is an annual account maintenance fee if your account reaches a specific threshold.  Additionally, the site allows for individuals to access account information and reinvest T-bonds when they mature.

How do I set up a Treasury Direct account?

Fill out an application on the website. Money will be withdrawn directly from an account you specify. Interest is then paid into your Treasury Direct account. 

How do T-bonds pay?

Treasury bonds pay interest every six months and the interest received by the T-bond holder is taxed at the federal level.  The interest paid is considered income.

What does “bidding” mean and why?

From the TreasuryDirect.gov site, “Most individual investors, who do not consider themselves expert securities traders, can bid noncompetitively to ensure that the security amount requested is accepted in the auction.”

Bidding is the only way to purchase T-bonds from the TreasuryDirect.gov website. However, as an individual, it’s noncompetitive bidding and this ensures that your security amount is accepted in the auction.

If you prefer not to use this option, consult a broker, dealer or bank for other purchase options.

Key points for noncompetitive bidding:

• You agree to accept the discount rate or yield set at the auction.
• The Treasury guarantees that you will receive the security for which you bid, in the full amount requested, up to the maximum bid limit.
• Maximum bid limits are $5 million for Treasury Bonds.
• Noncompetitive bids for Treasury Bonds must be received by 12:00 noon Eastern Time on auction day.  

Can you sell your bonds?

Yes, however, if you sell before maturity, you will incur a penalty fee of $45 if you sell through your account at www.TreasuryDirect.gov.

What are the benefits?

Treasury bonds (Bills and Notes as well) are backed by the United States government, making them very stable with almost non-existent risk.   Your interest rate is locked in for 10-30 years, paid every six months.

What are the concerns?

Interest rates are lower than other securities in the marketplace.  Currently, a 10-year bond will yield about 2.5 percent and a 30-year is about 4 percent.

Additionally, a treasury bond is a long-term investment (10-30 years).  If you purchase one with a 3 percent interest rate and in five years rates go up, your T-bond will be locked in so you will only get the 3 percent rate.

Finally, interest paid from your T-bonds is considered income and will be taxed at the federal level. 

“Consider shorter-term investments like the T-bill or T-note,” says Strategic Financial Partners executive vice president, Tim Watson. “With a short term investment, you can continue to reinvest when rates go up, without being locked in to a rate for 10, 20, or 30 years.”

This post was originally written for www.WomensWebucation.com. 

Hope this helps everyone understand Treasury Bonds a little better.  I’d like to personally thank my friend and fellow Buckeye Tim Watson for his insight and expertise while working on this post. If you’re looking for a financial planner in Colorado, I highly recommend you reach out to him.  www.sfp.us