"The reason most people never reach their goals is that they don't define them, or ever seriously consider them as believable or achievable. Winners can tell you where they are going, what they plan to do along the way, and who will be sharing the adventure with them." - Denis Watley

SavingAdvice.com Blog

Bridging the gap between saving money and investing

Health

Changes in Law During the Coronavirus to Help People Nearing Retirement

By Leave a Comment

Changes in law during the coronavirus

The outbreak of COVID-19 across the globe has impacted the stock market, employment rates, and people’s everyday lives in a huge way. Millions of Americans watched their nest eggs disappear. For those nearing retirement, it is enough to send you into a panic. Thankfully, government officials are proposing changes in law during the coronavirus outbreak to help.

Changes in Law During the Coronavirus to Help People

As the virus swept across the world, the stock market collapsed. Because many retirement accounts rely on investments, people watched their savings for their golden years dwindle down to nothing.

Additionally, individuals who have been laid off during this time no longer have an income to contribute to their retirement. There is good news though. Officials are putting some changes in law into place to help.

1. RMDs Will Be Put on Hold

Required minimum distribution (RMD) refers to the minimum amount an investor must withdraw from their account after reaching age 72. This is common with many 401(k) and IRA plans. If you do not take the minimum, a fine will be placed on your account. However, during the coronavirus outbreak, the government has put a hold on minimum required withdrawals.

This will be the case for the entire year. Ed Slott, a certified public accountant, said: “Now, clients can sit out a year and avoid the tax bill on their 2020 RMDs if they wish.”

2. Penalties Are Being Eased

Individuals with IRAs and 401(k) accounts that have been financially impacted by the virus are also able to withdraw up to $100,000 from their retirement account without penalty. Typically if an accountholder withdraws early, they are required to pay a 10% early withdrawal fee.

It is important to note that this only applies to people who have been diagnosed with the coronavirus, been laid off due to the virus, had reduced work hours, or have otherwise been impacted.

3. You Can Get Larger 401(K) Loans

As mentioned in the point above, people with 401(k) accounts are able to take $100,000 out without a penalty. This is more than the typical $50,000 limit for 401(k) loans.

Other retirement plans will only allow you to take out up to a percentage of your balance. These limits will also be lifted for the rest of 2020.

Other Changes in Law and Policy

Policymakers are also pushing to make other changes to help Americans get through this time financially. For instance, Navient, a major federal student loan lender, has waived all interest and allowed borrowers to be granted forbearance until September. This means no payments will be required during this time.

On top of that, many mortgage companies and other businesses are offering payment relief at this time to assist people through the coronavirus outbreak. If you need assistance or are unable to make a payment at this time, the best thing to do is give the company a call and ask what your options are.

Readers, what do you think about the changes in law during the coronavirus outbreak? Are they helping you in any way?

Read More

What You Need to Know About the Proposed Student Debt Relief Act

By Leave a Comment

Student debt relief act

Democrats have proposed a Student Debt Relief Act that would forgive $30,000 in student loan debt for borrowers during the coronavirus outbreak. This comes just two weeks after President Donald Trump announced student loan interest would be waived during the pandemic.

For the most part, liberals have been pushing for student loan forgiveness. In fact, it is one of Senator Bernie Sanders’ main talking points in his campaign. However, politicians are now saying the coronavirus outbreak and resulting economic downfall may require student debt cancellation to improve the economy.

What is the Student Debt Relief Act?

Of course, no Student Debt Relief Act has been pass… yet. There are about a dozen members of Congress backing the idea though.

“During this public health emergency, no person should have to choose between paying their student loan payment, putting food on the table or keeping themselves and their families safe and healthy,” lawmakers wrote.

More congressmen and women are looking to support this movement, but many of them cannot agree as to how much should be forgiven. Senators Chuck Schumer, Elizabeth Warren, and former vice president Joe Biden have proposed to automatically forgive $10,000 in debt for everyone.

This would mean for someone like me who owes $24,000, my debt would get knocked down to $14,000. That’s a pretty great deal! Others have proposed to forgive even more.

One thing is for sure. There are likely going to be changes to the federal student debt and forgiveness is likely going to extend to more people in the near future.

Other Help Coming

As mentioned, there have already been moves made to lessen the burden on student loan borrowers during the COVID-19 pandemic. First, interest on all federal student loans has been waived for the next 60 days. This is good news for individuals who have to apply for forbearance during this time. You won’t accrue interest while you’re not making payments (like you normally would).

Additionally, Congress has approved a stimulus for the coronavirus outbreak. Because many people are out of work, they are able to apply for these stimulus checks with their 2018 or 2019 tax returns. Each person will receive $1,200 and couples will receive up to $2,400.

Lastly, if you need help paying any of your other bills, you have options. Call your lenders, utility companies, and other businesses you deal with and explain your situation. Most places will work with you on payments right now.

Read More

How to Get Free Medicine from Drug Makers

By Leave a Comment

how to get free medicine

On average, Americans spend $1,200 per person on prescription drugs every year. Certain medications are shockingly expensive. For example, Revlimid, a prescription that treats blood cancer, runs around $20,000 for a 30-day supply. To say that most people can’t afford a price tag like that is an understatement. But, even if you can’t shoulder the cost of your medications, that doesn’t mean you have to skip your meds. It is possible to get free medicine from drug makers. If your prescription costs are too high to manage, here’s what you need to know about this option.

Free Medicine Through Patient Assistance Programs

Most major drug manufacturers offer a patient assistance program (PAP). Also known as a pharmaceutical assistance program, it is designed to help individuals who may not be able to afford their medication without some help. While the programs focus mainly on the uninsured and underinsured, others may also qualify.

If you are eligible for the PAP, then you’ll get access to free or low-cost medication from that manufacturer. Precisely how that unfolds varies by program, so you’ll have to go over the details to determine how the drug maker ensures you aren’t stuck with the financial burden.

However, it could involve the drug maker shipping your prescription straight to your door or directly to your doctor. When this occurs, either you or your doctor will need to play your refills well in advance. It can take several weeks for new orders to arrive, so you’ll have to be on top of things to ensure you don’t run out of your meds.

Qualifying for Free Medicine from Drug Manufacturers

Every PAP has different eligibility criteria. Usually, the biggest determining factor is your household’s income. Since a PAP is meant to help those who can’t afford their medication, your household’s income has to be below a particular line. That limit is set by the drug maker, though it’s typically higher than the limit for Medicaid eligibility.

The manufacturer may also take other factors into consideration. For instance, some drug makers also gather information about your assets. You might have to provide details about any investment accounts, for example. When that occurs, even if your income is low, if your investment account balance is healthy, you might not be eligible for the PAP.

Can You Use More Than One PAP?

Generally, yes, you can use more than one PAP at a time. If you have medications made by different companies and meet each manufacturer’s PAP requirements, you may be able to get free prescriptions from both drug makers.

Normally, the only time you couldn’t use multiple PAPs is if they would be covering the same medication. That typically isn’t an issue with drug maker PAPs. However, there are other PAPs that aren’t tied to one manufacturer. They may be more restrictive about using more than one program

Ultimately, it’s always best to read the fine print to find out before you move forward with any PAP. That way, you’ll know if there are any potential issues ahead of time.

The Largest Drug Manufacturer PAPs

Certain PAPs are particularly large. They are run by major drug manufacturers who produce a wide variety of medications. As a result, there may be a significant number of people who could use (and qualify for) assistance, and they have the financial means to alleviate patients of the burden.

Here are just some of the largest drug manufacturer PAPs:

Smaller drug makers may also have their own programs. If you have a medication not made by one of the manufacturers above, consider doing a search. You can use the Medicare PAP finder or use a search engine.

If you go the latter route, do exercise caution. There are PAP scams out there. For example, if you have to pay a fee to apply, it’s a scam.

In most cases, if you head to the manufacturer’s website first, you can access details about its PAP from there, if one’s available. That may be a safer road than using a search engine as you’re starting out on the drug maker’s site.

What to Do Before the PAP Kicks In

Even if you qualify for a PAP, it can take time for your application to process or for you to receive your benefits. If you need medication immediately that you can’t afford, speak with your doctor as soon as possible. They may be able to provide you with some free sample packets to cover the gap, ensuring you can remain on your prescription.

Additionally, your doctor may know about other programs in your area that can help. That way, you can get your medications during the period before the PAP kicks in.

Do you know of any other tips that can help people save on their prescriptions? Tell us about them in the comments below.

Read More:

How to Pay the Bills During the Coronavirus Pandemic

By Leave a Comment

how to pay the bills

As the coronavirus spreads across the United States and cases increase by the day, more people are getting laid off from their jobs. Some businesses are closing due to government restrictions in the area. For instance, many cities have restricted all dine-in business for restaurants. Because of this, many people are without work and are left wondering how to pay the bills during this crisis.

How to Pay the Bills During a Pandemic

It is not yet clear what the stimulus package in the U.S. will look like to help the American people, and the economy, recover from this. If you are looking for immediate relief or help, the following tips will help you figure out how to pay the bills or make arrangements for your finances.

  1. Contact your mortgage lender. You may be eligible for a reduced mortgage payment or a complete pause on your payments altogether. Call your lender and discuss what options may be available to you. Important: Do not wait until you start missing payments to call.
  2. Apply for forbearance or deferment on your student loans. Many student loan borrowers saw Trump’s announcement that he would waive all interest on student loans during the crisis. That doesn’t mean you don’t need to still make payments though. If you’re having trouble making payments, you can apply for deferment or forbearance for your loan. Read more here.
  3. Call your utility companies. Yes, even your electric, water, gas, etc. will be able to work with you on payments at this time. If you are out of work and really hard-up for money, many of these companies will allow you to make partial payments, if needed. You may also qualify for free or reduced utility prices based on your income.

Lastly, many businesses and large corporations are putting a pause on any action they may typically take against delinquent accounts. For instance, Bank of America has paused all of its evictions, foreclosures, and repossessions until after the coronavirus pandemic has calmed down. That being said, you still should call and discuss your options with the lender/company.

Conclusion: Communication is Key

We, as a nation and as human beings, are all going through this together. Remember if you are calling a customer service line that they are likely dealing with high call volumes, not to mention their work environments have likely changed as well. Communication and kindness will go a long way during this time.

Lastly, if you find yourself out of work at this time, consider looking for a side hustle or another way to generate income during this time. We’ve compiled a list of 38 ways to make money on the side here.

Read More

How to Practice Self-Care During Times of Crisis

By Leave a Comment

self-care during times of crisis

There is no doubt the world has been rocked by the coronavirus. Widespread panic and a flimsy economy are enough to make anyone develop anxiety. Not to mention, the federal government is suggesting weeks, possibly months, of social distancing. To keep yourself from going stir-crazy, you need to know how you can still practice self-care during times of crisis.

Practicing Self-Care During Times of Crisis is Important

Believe it or not, continuing to practice self-care during social distancing and other times of crisis is extremely important to maintaining your health. Even though you aren’t able to do the same things you’d normally be doing throughout the day, you can still take care of yourself.

Self-care during times of crisis includes things like focusing on eating well, exercising, staying in contact with others, and doing things you enjoy. Incorporating that into your time away from others can be key to keeping up your physical and mental health.

What Can You Do During Social Distancing?

Now, you’re probably thinking, “Amanda, the gyms and restaurants around me are closed. I’m not supposed to hang out with people and I’m stuck inside.” Well, thankfully, there are still a few self-care practices you can do at home. Here are just a few to employ while you’re distancing yourself…

  1. Get active! Even though the gym is closed, you can still try and stay active. Do at-home workout videos or yoga. It is also safe to go on a walk (or run) as long as you won’t be walking on a heavily-populated street and are in good health.
  2. Read (or listen to) a book. While you’re at home, this is the perfect time to catch up on some reading. If you’re not big on reading, Amazon has a plethora of books on Audible.
  3. Find things that make you laugh and smile. Stuff is scary right now. During times of crisis, try and find something that will pick your spirits up (Netflix has a ton of good standup specials).
  4. Cross some things off your DIY to-do list. Why not use this time to improve your living space? You’ll be surprised how much decluttering and cleaning your home can help clear your mind.
  5. Check-in with yourself and others. You need to be more self-aware during this time. Times of crisis can be emotionally overwhelming and, before you know it, you could be headed towards a breakdown or a bout of depression. Be sure you know what balance you need to keep a level head during this time. Additionally, it may be a good idea to start checking in with friends and family via video chat to help you feel less socially isolated.

Maintain Your Self-Worth

Lastly, it is so important to maintain your self-worth during times of crisis. Right now, with COVID-19 spreading across the globe, many people have been laid-off. Being unemployed can contribute to feelings of decreased self-worth.

Just remember, this is only temporary. The best thing you can do is practice self-care and focus on maintaining your own personal health (mentally and physically) at this time.

Readers, how do you practice self-care during these times?

Read More

What You Need to Know About the Trump Student Loan Interest Waiver

By 1 Comment

Trump student loan interest waiver

President Trump announced the United States government would waive federal student loan interest amidst the coronavirus outbreak. Because many people are being forced to stay at home, not work, or work less, many people will need this break financially. However, the Trump student loan interest waiver doesn’t mean what you think it does.

So, What Does It Mean?

Friday afternoon Trump announced he would like to waive interest on student loans during the coronavirus outbreak. For those out of work, it sounds like great news, but it doesn’t mean you don’t have to make your payment.

When Trump announced this change, the Department of Education immediately went to the drawing board to figure out how this will work. They came up with this…

Your same payment will be due but the full amount will go to the principal and none of it will be going towards the interest. At this time, no interest will be applied to your account. This will give short-term relief to borrowers during the outbreak.

Other Options

Individuals who aren’t working at this time may need to pause their payments while they are out of work or until they get back on their feet. For these borrowers, you have a few options.

  • Income-Driven Payments: If your income is changing or you need to make a smaller payment, call your loan provider and discuss your options. Many of them will decrease the amount you have to pay based on your monthly salary.
  • Deferment: Deferment will give you a break from making payments on your student loans and you won’t be responsible for any interest accrued on subsidized loans during this time. There is a short list of reasons you might be granted deferment, including unemployment, cancer treatment, economic hardship, education, military duty, or rehab.
  • Forbearance: Similar to deferment, forbearance will give you a break from paying your student loans. However, you will be responsible for any and all interest during this time. You don’t have to have specific reasons why you are applying for forbearance.

People looking for deferment or forbearance will not have to make payments for a determined period of time. Typically, your loans would continue accruing interest during this time. With President Trump’s proposal, people needing a break from payments won’t have any interest added to their accounts.

However, it is a good idea if you can keep up your student loan payments at this time to do so. Don’t take the interest-free period to take a break from paying off your loan. In fact, paying on it now can actually benefit you.

Questions About The Waiver

So far, there are still a lot of unanswered questions surrounding the Trump student loan interest waiver, including some the Department of Education can’t answer. For instance, will the interest being waived now be added on later? DOE officials don’t yet have an answer to this.

Also, it isn’t yet clear as to whether or not federal PLUS loans will be covered under the waiver. This includes parent PLUS loans and graduate education loans.

All in all, the changes that need to happen for this waiver to take effect will be difficult for loan providers to implement in such a short period of time. Not to mention, some of these service providers will need to send their call center employees home to decrease the risk of contracting coronavirus. So, if you are looking to contact your provider about this, be patient.

The Trump Student Loan Interest Waiver Can Benefit You

Although you will still have to make payments on your loans, the Trump student loan interest waiver can help you if you aren’t in need of forbearance or deferment. Actually, you can take a good chunk off the amount you borrowed and shorten the amount of time you’ll be paying it back.

This waiver will be available to more than 35 million borrowers who have received a federal student loan. Private lenders, like Sallie Mae, will not be covered under the waiver.

Lastly, if you are wondering about what you need to do to benefit from the interest waiver, it’s nothing! You don’t have to contact your loan provider. The interest will automatically be waived during this time and will be retroactive to Friday when Trump announced the change.

Read More