FiLife

Think you maintain a sustainable lifestyle because you put out the recycling and cruise to work in a hybrid? Maybe not, according to a free, online game called Consumer Consequences.

This short game asks you questions about your lifestyle, calculates your “ecological footprint” and tells you how many earths we’d need if every human lived exactly like you do. Consumer Consequences also lets you compare your results to those of other Americans who played the game, as well as to individual NPR radio show hosts. (Check it out fellow NPR nerds!) It was developed by American Public Media, the folks who created Marketplace and Weekend America.

The lifestyle questions are organized into a few different categories: living situation, energy consumption, trash habits, transportation requirements, diet and shopping preferences. As I clicked through them it became obvious that my lifestyle is not as green as it should be. It also occurred to me that a green lifestyle is actually a financially savvy way to live. (more…)

A few friends asked me how they should invest their retirement money recently. Maybe it’s that time of year. Graduations inevitably lead to new jobs, which lead to new retirement plans.

Plus, the roiling markets are making a lot of people nervous. One friend confided that she just moved all of her retirement savings into bonds. Yikes. Not a good idea.

So, in the spirit of friendship, I’ve put together some simple guidelines about how to set up a retirement plan, specifically for those who still have more than 30 years left in the work force.* (more…)

Are high gas prices, new spring fashions, and summer wedding commitments draining your bank accounts? Well, help may be on the way in the form of an IRS rebate check.

You’re eligible to receive funds if you have a valid Social Security number, can’t be claimed as a dependent on someone else’s tax form, and have a tax liability or income of at least $3,000 (you’re also required to file a tax return, which was due earlier this month). The benefits begin to phase out for individuals with adjusted gross incomes over $75,000 and married couples who file a joint return with adjusted gross incomes over $150,000.

Visit the IRS’ rebate calculator to see how much you’ll get, if anything, from the U.S. government this year. Then, check out the payment schedule to find out when the check will arrive. The government will deposit the check right into your bank account if you signed up for direct deposit when you filed your taxes. Otherwise, you’ll be mailed a paper check.

Wondering what you should do with the newfound funds? Well, paying off debt is always a good idea. So is saving and investing. Wall Street Journal columnist, Terri Cullen, recently quipped that her family members probably won’t follow her advice but she still offered a few suggestions on how to use the rebate wisely.

– Kristen Sullivan

Illustration Credit

The basics of personal finance – paperwork, organization, policies and bills – can become overwhelming for someone battling a sickness or major injury. So we’ve put together a list of ways to help a friend or family member who has a health issue. Sending a white orchid might lift a spirit, but helping out in these areas can eliminate some serious stress.

1) Become the health insurance guru: Sorting through mounds of paperwork and tracking down answers to seemingly simple questions like, “Will you pay for homecare?” takes a lot of energy. Offer to study the health insurance policy and be the point person for all questions during recovery. That way, your loved one can focus on getting better and you can deal with the health insurance headache. (more…)

A number of Columbia Law School graduates, most of who work in the public sector, are pissed at their alma mater. The school recently announced that it’s sweetening its loan forgiveness program for current students, but it’s not extending all of the changes to recent graduates. The angry alumni are now pressuring the school to grandfather them into the new policy.

The school’s former loan assistance repayment program provided financial support for up to ten years to graduates engaged in human rights work, government service, and other non-profit legal work. The benefits phased out once a graduate made more than $25,000 a year. The new program doubles the salary threshold to $50,000 for students graduating in 2008 and later.

This seemingly insulated battle between an elite law school and a handful of its former students is a telling symptom of the student debt maelstrom underway. (more…)

“Work is so slow. I think I’ve read the whole internet,” my friend recently said over dinner. Another rolled her eyes and nodded in agreement. Our unhealthy economy seems to be providing many a cubicle dweller with time to kill.

What should you do with this free time? Sure, you could write a book about your life as a monkey, or draft a business plan for your dream company. Or you can amuse yourself with mindless love and sex quizzes. You know, the Cosmo quizzes you usually reserve for lazy days at the beach.

If this last suggestion sounds tempting but you’re nervous that your coworkers might find out what kind of a lover you really are, well then this post is for you.

We’ve compiled a list of some of our favorite online money quizzes. They aim to evaluate your financial health, values, and weaknesses. Taking them is more fun than doing your taxes and slightly more educational than figuring out how foxy you feel. But uh, please come back to FiLife when you’re looking for financial advice. Cosmo has its areas of expertise and we have ours.

1.) Are you financially compatible? Certified financial planner Mary Claire Allvine helps you figure out whether you and your partner are financially compatible.

2.) Millionaire Snob Test. What would happen if you came into a windfall? Would millions of dollars release your inner snob?

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The fact that 401k plans are replacing pension plans is old news.

But there’s still a lot of work to be done when it comes to providing employees with free, independent advice on how to handle this huge responsibility. Many workers still aren’t saving enough in their 401k plans to ensure a comfortable retirement. And, even when employees are participating in their company plans, they’re often investing improperly.

Sure, 401k plans have improved. Many employers have installed automatic enrollment plans that sign up workers for retirement savings programs when they join the payroll. They’re also offering products like target-date retirement funds, also known as lifecycle funds, where all investors need to do is pick the fund with a date that is closest to the year they expect to retire. The fund, which invests in several other funds, grows more conservative as the retirement draws draws near.

But here’s my problem: we’re not focused enough on finding ways to empower workers with personalized independent advice. (more…)

Warning: Some of the items on your 401k menu might be bad for you.

Components of the plan may create a false sense of security, and others might actually do you financial harm.

Don’t get me wrong. Investing in a retirement plan is critical to keep you from running out of money late in life. If your employer offers a 401k, then you should take full advantage and start socking away funds now.

But please beware of these four plan features:

Automatic enrollment: A growing number of employers automatically enroll new employees in 401k plans. Thing is, these employees still need to check and make sure that the company 1) puts enough away for a comfortable retirement 2) sets enough aside to collect whatever money the employer makes available to match your contributions 3) invests the money in age-appropriate funds.

Don’t be lazy and assume that your employer’s automatic plan will provide for a happy retirement. In fact, it’s unlikely that your employer’s choice works for many employees.

401k loans: Many employers will let you borrow from your 401k plan. When you pay the money back, you pay it to yourself, with interest. (more…)

It’s Friday! We FiLifers are back to free-styling about personal finance news in 5-7-5 form. Please add your own ditty below.

Hookers, Dwarfs and X
Fidelity Traders do
Know how to party!
- Ron Lieber

Harry Potter buys
New York digs. Maybe he’ll hex
foreclosures away.
- Mary Pilon

Wal-Mart and Costco
Racking up some big sales gains
We’re feeling cheap now
- Ron Lieber

Gold prices are up
Melt necklaces into cash
Ex-boyfriends wont mind!
- Kristen Sullivan

Huck: Now he’s dropped out
Perhaps he’ll get a real job
Or give big speeches
- Ron Lieber

Patrick Swayze gets,
grim diagnosis - hope he
can dance right through it.
- Mary Pilon

Sopranos movie!
Cannot wait for the trailer
Who’ll get wacked this time?
- Irina Aleksander

A career boost for
Christian on Project Runway
I guess Posh knows best.
- Mary Pilon

Old runner Forrest
Gumps his way to better health
Lower premiums!
- Mary Pilon

Photo Credit

A few weeks ago we promised to review all of the free federal tax software that the Internal Revenue Service and 19 tax companies provide taxpayers who make $54,000 or less a year. True to our word, three FiLifers who qualified for the Free File service gathered together their tax forms, rolled up their sleeves and got down to some serious tax fun.

Some of the software made tax preparation deliciously simple, while other programs made our heads hurt and our necks tight. Check out the chart after the break to see our ratings.

All told, the Free File Alliance delivers on its promise to taxpayers who make $54,000 or less. Though it turns out that each participating tax company has slightly different eligibility requirements (don’t ask why, it’s complicated), it seems that everyone, whether English or Spanish-speaking, qualifies for one of the tax-prep programs that we liked best.

OK – so Free File is worth your time. Now here’s some advice on how best to use it.

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