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6 Tools to Supercharge Retirement Savings

By WTOP Staff

Saving for retirement certainly isn’t easy. A recent study by the Transamerica Center for Retirement Studies found that only 18 percent of those surveyed expect to be better off in retirement. While no tool can fully automate retirement planning, there are tools that can offer a lot of help. These six tools can help you save, plan and prepare for your golden years:

1. Personal Capital. This free tool is the Cadillac of investment tracking tools. Not only does it track investment performance, but it also shows you your asset allocation across all investment accounts, including taxable and tax-advantaged accounts. For those with a 401(k), Personal Capital also shows you how the costs of the retirement account affect your ability to retire. The graphs and charts make understanding all of your investments very easy.

2. Money Ratios. Popularized by a book of the same name by Charles Farrell, Money Ratios offers an easy way to determine if you are saving enough for retirement. The simple ratios can show you if your saving rate is sufficient, and if your current nest egg, given your age and income, has you on a secure path to retirement. In addition, the book provides ratios to help you evaluate your debt, mortgage and other important financial planning issues.

3. You Need a Budget. At the heart of both saving for retirement and making your nest egg last in retirement is money management. YNAB is an excellent budgeting tool. Having used it for years, it’s helped me actually stick to a budget. In addition to the tool, YNAB offers an excellent series of videos, articles and an active user forum to help you use its tools and better manage your money.

4. Social Security calculator. The Social Security Administration offers a free calculator that helps you estimate the Social Security benefits you will receive in retirement. In addition, you can get a statement from SSA with a breakdown of your contributions and expected future benefit. The SSA also offers life expectancy and retirement age calculators.

5. Retirement calculators. There are a lot of free retirement calculators available online. Some are very simple, while others require more data and undertake a more complex evaluation. One of the most thorough options is the Flexible Retirement Planner. But be prepared to spend some time with the calculator. For example, you can create “what if” scenarios to evaluate how certain life events may affect your retirement readiness. You can also perform a sensitivity analysis to determine which factors will have the greatest impact on your retirement.

6. A credit card. Yes, even the credit card industry has waded into the retirement planning industry. One of my favorite cash back credit cards is the Fidelity Investment Rewards American Express. The card pays 2 percent cash back on all purchases and deposits the rewards in your Fidelity account. It’s one of the most rewarding credit cards available today. Now if only other investment firms would join the party.

More from U.S. News

10 401(k) Facts Everyone Should Know

What Everyone Should Know About IRAs

10 Retirement Savings Tips for 20-Somethings

6 Tools to Supercharge Retirement Savings originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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