Saving unnecessary fees

A few days ago I received an inquiry from a national reporter. What are 5-10 "hidden" fees (service fees, for example) that the average consumer probably does not know he or she is paying? Are the fees necessary, or can consumers get out of paying them? These could include fees for unnecessary services tacked onto an insurance policy, bill, credit card, checking account, etc., that consumers should be able to opt out of.

Here are my “cliff notes:”

• Credit card – annual fee- get a free one instead – or pay an annual fee if you get benefits
• ATM charges… GRRRR! Maddening – shop around, some banks offer accounts w free ATM anywhere – or plan ahead and use your own bank
• Bank charges for withdrawal w/o a check – say you go in the bank and just make a withdrawal and don’t have a check on you
• Insurance – charge for towing expense – if you have AAA it is already covered on AAA
• Fee for a savings account – some banks charge a monthly fee for the account if it is small – shop around, use a credit union, or local bank – or just save your cash until you get enough to put in
• Check card fees… GRRR! Again – use cash instead – budgeting is easier w cash anyway
• Over limit fees on credit cards – watch your limit carefully so you don’t exceed it, even by a $1 – if you do, the fees can escalate quickly and compound
• Insurance – is your deductible high enough- $250? Can you afford $500 – if not yet, make a plan to save $500 and then raise your deductible – you can save your deductible sometimes in as little as 3 to 5 years
• Insurance- shop around – price your policy – while also being careful to deal with a AAA rated company – often you can save hundreds by shopping
• Overdraft – obvious – balance your account – and be careful
• Renting a car – insurance on the rental – get a free credit card that offers this coverage so you don’t have to pay for it when you rent
  
  May prosperity be yours,
  
  
  Mackey McNeill, CPA, PFS, IAR
  CEO/President
  
  Mackey Advisors
  525 West Fifth Street
  Suite 318
  Covington, KY 41011
  P 859-331-7755
  F 859-331-4695
  CultivatingProsperity.com
  

New York, New York!

A few months ago, I was asked to join the AICPA (American Institute of Certified Public Accountants) Financial Literacy Task force. I was honored to be one of 15 high profile CPA’s from across the country chosen to assist the incredible AICPA staff in moving this initiative forward. In meetings with prospective clients, I have listened to many tales of avoidable wealth tragedies and each time this happens, my personal passion for financial literacy increases.

What a day in New York! Up at 4.30AM and heading to the studio at 5.30AM to do coast to coast interviews. Volunteers, fellow CPA’s Michael Eisenberg and Jordan Amin, and me, donated an evening and a day of our time to discuss the new AICPA poll focused on gauging current financial concerns for Americans. We discussed tips, resources and gave clear and direct advice on getting your financial house in order.

It was a fulfilling day, on many levels. For me it was my first venture in national live media. While I have been quoted in Readers Digest, Money Magazine and Good Housekeeping, live TV and radio are a bit more demanding. No one is going to edit your story or call to verify your quote. What you say in that moment is it!

It was also gratifying to know that lives were touched and perhaps changed by our collective, calm, and poised voices, giving Americans clear direction on navigating the worst financial crisis since the Great Depression.

For those who missed the interviews, the AICPA poll highlights are:

• nearly 5 in 10 Americans said they are concerned about losing their jobs in the near future





• 42% are delaying major life decisions including, home ownership, marriage, children, and retirement





• 2/3rds of adults have reduced their spending





• 44% of consumers feel optimistic about the economic outlook for the US within the next year

The tips given by myself, Michael and Jordan can be summarized as follows:

• The recession is calling us “Back to Basics’ with money and finance:
  o Save!
  o Use credit wisely
  o Plan for your future





• Use budgeting and cash flow analysis as a tool





• If you don’t have a Rainy Day find, start one





• Find creative fun ways to save money such as:
  o Wash your own car as a family project –make it family time
  o Make your own pizza- teach your kids to cook
  o Have a friend over and do your nails together rather than going to a salon
  o Involve your entire family in saving for a special family goal, make it fun and a teaching experience for your kids





• Invest in good times and bad – follow the advice of investing sages of our time, buy when others are selling and sell when others are buying – don’t be a sheeple (sheep- people) and follow the heard





• Financial planning pays! Always!
  The AICPA also offers an advertising-free site with tons more tips, resources, calculators and life cycle advice. Check it out at http://www.360financialliteracy.org/

May prosperity be yours,
Mackey McNeill, CPA/PFS IAR
President and CEO
Mackey Advisors
http://www.cultivatingprosperity.com/
859-331-7755
Mackey@CultivatingProsperity.com

Falling off the wagon

I started this blog with the very best of intentions. And for some time, things went well. I got up early or stayed up late and posted. Then .. I feel off the wagon. Other things kept creeping in my life:

• like being elected to the Conservation District as a Supervisor
• finding myself Chairperson of the Kenton County land Conservancy (our Chair resigned suddenly due to a family matter)
• spring came and I began to spend hours out in my poor yard and garden in an attempt to conquer the onslaughter of mud

And with ever widening demands on my time, the blog got lost.

Looking back now it is easy to see that I set myself up. I acted out of habit and kept saying yes to everything that came my way.

My commitment to myself.. and eventually this will put in place my commitment to my blog is to reorganize my schedule and to take out low priority things... leaving room and space for what is really important.

On my to do list now is one big one.. to set aside blog time during the week. Treat it like any other important appointment and it will get done.

In the meantime, I am on my way to New York on Tuesday to participate in the AICPA (American Institute of Certified Public Accountants) National Literacy satellite media tour. I am honored to be one of 3 selected to participate.. and have a bit of the jitters that goes with live TV!

May prosperity be yours,

Mackey McNeill, CPA/PFS IAR

President and CEO

Mackey Advisors

www.CultivatingProsperity.com

859-331-7755 ext 103

Finally! CEO Compensation moves toward accountability!

If you are like me, you just want the recession to go away. Enough already! Yet as I rail against this downturn, when I pause, I see it as a “reset.” We are long overdue for some of the changes we are now seeing in the marketplace.

For example, exorbitant CEO compensation has continued its upward spiral since the 1970s. Only in this economic downturn has some semblance of sanity returned. Check out this New York Times piece click here for full story that discusses a recent study documenting a decline in CEO pay and benefits. And imagine this: there is now a trend toward tying CEO compensation with company performance. Hmmm. Nothing new here to most of us. This is how small businesses have always run. Your company does well, you do well. Run your company into the ground, you suffer. This is a back to basics idea.

Let’s use the recession as a time to reset, back to the basics!

May prosperity be yours,

Mackey McNeill, CPA, Personal Financial Specialist, IAR

President and CEO
Mackey Advisors
www.CultivatingProsperity.com
859-331-7755
Mackey@CultivatingProsperity.com