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Keep Your Money Goals on Track With a Midyear Financial Checkup

By U.S. News & World Report

Fantasizing about reaching your financial goals is easy. Actually accomplishing them is more difficult.

More than one-third of Americans considered a financial resolution for 2016, according to a telephone survey of more than 2,000 Americans by Fidelity Investments. Top goals included saving more, spending less and paying down debt. For these goal-setters, summer is a great time to gauge progress made toward those objectives, experts say.

“I do think a midyear financial checkup is a great idea because, hopefully, Americans are slowing down a bit,” says Pamela Sandy, a certified financial planner and president of the Financial Planning Association.

[See: 10 Summer Savings Tips.]

Not only is summertime a good halfway point between New Year’s money resolutions and year-end tax planning, it’ll also be easier to contact financial experts, tax planners, human resources representatives and other advisors, who are less swamped in the off-season.

The warmer months also mark a good time to make new financial goals if you aren’t currently working toward any, says Mary Deshong-Kinkelaar, a certified financial planner practitioner based in Akron, Ohio. “It’s sometimes better not to get hung up on New Year’s resolutions and find time when it’s quieter for you,” she says.

Here are the financial categories to examine during your midyear financial checkup.

Taxes

During the summer months, “most people are going to have a pretty good idea of what’s happening in their tax situation and can start to plan things better instead of scrambling in December,” says Deshong-Kinkelaar.

Take a moment to tally up any major life changes you’ve undergone in the past six months and include those in your tax strategy. Got married? Had a kid? Bought a house? “Those types of things that are transitions in your life mean a transition in your tax situation,” says Deshong-Kinkelaar.

Plus, if you earned a hefty refund in April, or paid a large tax bill, it might make sense to request a W-4 from your employer and tweak your withholding.

The summer months are also prime time to examine whether you’re making the most of workplace tax benefits, like your flexible spending accounts and retirement contributions, maximizing tax-saving strategies before the year-end free-for-all.

[See: 8 Ways You Can Prepare Now for Next Year’s Taxes.]

Insurance

Planning for the future requires having a roadmap in place for the worst-case scenarios, which can wreak havoc on your financial life.

Experts recommend using the summer months to examine whether your insurance plans are still meeting your needs.

Since employers often hold open enrollment for health insurance and other benefits in late fall, summer is a time to think about your employer health benefits and whether your current situation is meeting your needs before the late-fall melee.

Estate Planning

If you don’t have a plan in place for when you’re gone or incapacitated, get the wheels in motion. “When I have a planning engagement, we talk about documents you should have in place, making sure your beneficiary designations are appropriate,” says Keith Rauschenberger, an independent fee-only financial advisor and president of Rauschenberger Financial Advisors in Elgin, Illinois.

In fact, 64 percent of Americans don’t have a will, according to a 2015 survey from Rocket Lawyer, an online legal resource.

Make sure that you have the basic forms, including an up-to-date will, power of attorney forms and health care directives, enabling a person to make medical decisions for you if you cannot make them for yourself.

Estate planning might include a visit to a pro, such as an estate attorney or accountant.

Emergency Fund

Take a moment to check in with your emergency fund. Was it depleted during summer vacation? Has a change in employment made it necessary to beef it up?

Experts typically advise keeping three to six months’ worth of living expenses readily available, depending on your job security. Start working on building your rainy day fund by funneling a percentage of your paycheck into a savings account each month, experts suggest. If you don’t ever see the money in a checking account, you won’t miss it as much.

[See: 10 Money Questions to Ask Your Parents.]

The Long Term

Summer vacation is a good time to think about where you’d like to see your life in five, 10 or 25 years — and enact the financial strategies that will help you reach those goals.

You might be lounging on the beach in California and decide that you want your retirement to look similar. Or you might be ready to grow your family and realize that you need a bigger home. Says Rauschenberger: “Sit back when you’re on holiday or whatever and think about … ‘What am I happy about? What do I want to do in 10 years?'”

More from U.S. News

10 Foolproof Ways to Reach Your Money Goals

50 Ways to Improve Your Finances in 2016

What to Do If You’ve Fallen (Way) Behind on Your Credit Card Payments

Keep Your Money Goals on Track With a Midyear Financial Checkup 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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