Often times we tend to dream big but not realistic. Then we are truly let down by our inflated expectations. No matter what you dream, I say dream big and set realistic goals that way it is not a letdown and when you make your goal, reward yourself; right! Manage those expectations even in regards to finance.
Well, I recently had to do some adult stuff and roll over a 401K plan. I reached out to my bank and requested to open a Traditional IRA.
I had to first call the financial administrator of my 401K plan and that was such a tedious long call that went everywhere but nowhere as they had an issue finding my account. Finally, at the end of the call I had to contact my bank and schedule a visit. I felt overwhelmed but I spoke to such a lovely lady at the bank, who scheduled an in person visit with me the following day.
By the way, what I learned is that all you need to provide the administrator is the name of the bank and type of account you are rolling over to and they can send out your funds straight away without further delay.
Sometimes, a review of finances can be intimidating like my fabulous style. So, I wanted to make my appointment visit with a professional attire. Our subconscious can sometimes do more harm that our conscious, anywho. I arrived for my appointment and I was treated like a queen. My, roll over was not a lot of money per say and I was also there to discuss my husband’s finances that I wanted to assist rolling over and that was significantly higher than mine. Either way, the representative at the bank treated me like gold, matter of fact platinum. While we were there she went over my account in addition to the services I needed on this visit and she went out of her way to explain changes I can make with my account to eliminate unnecessary fees, certain charges, and overall a healthier account that would work better for me. She then credited me back for an overcharge and two fees. I must say I felt like I was overjoyed with the treatment and amount of care she gave my account and business.
Somethings we went over regarding my accounts I would like to share with you, that way, my amazing Fannytasticlife readers can enrich their own accounts and take away while possibly applying these practices to your finances; healthier wealth of knowledge.
10 Tips to having healthier financial accounts (please check with your bank institution as this may not apply to every bank):
- At the end of every fiscal year, contact your bank and ask to be credited back for fees, normally you can be credited back for up to three. If you were charged $35 on an overdraft, or something like that as a mere customer courtesy they can apply $100 – $115 back to your account.
- How many accounts do you really need? Well if you are married you may want a joint, a private checking, and, a savings. In one bank institution as having multiple accounts may charge you maintenance fees that you cannot get credited back. Some banks offer no fees if you keep a specific minimum in these accounts and/or apply a direct deposit to the account of $500 or more monthly. Now if you make more than $500 a month you can split the direct deposit so that the checking accounts can get founded avoiding fees if you cannot make the minimum.
- If you have a savings, some bank will ask you to set up an automatic transfer monthly and that will eliminate any fees applies there.
- If you find that you have accounts a numerous bank (my issue, I spread the wealth) you will be getting charge maintenance fees all over. Now, Maintenance fees can range from $12 and up a month. That is about $144 – $250 a year, per account, per bank.
- If you have about $500 or more sitting around and you already have a 401K set up at your job but want to do a little investing on your own for a steady growth of funds you can open up your own Traditional IRA account and when it is a small amount $5000 or less, you can manage it yourself depending on the bank and invest these funds. You can also use the banks particular apps or feature to set a goal of what you are looking to make and then invest either risky or modest to build that investment.
- If you have $5000 or more most banks will offer an investing person to help you manage that wealth for you.
- Also, you can always at any time roll over your 401k to your own individual IRA without penalty. You may not want to this as some companies offer matched, however if your company does not offer a great package you can just open an IRA on your own and start investing for your future resting.
- Most banks offer great alerting tips, that let you know if your balance is low, if a transaction posted that was high and you can create some of them on your own when visiting the apps. This is a great feature if you have automatic payments that you may have forgotten about or just to set up reminders as we do get busy.
- Some accounts offer a benefit for savings, like if you open up a new account you get $250, if you have children you can set up new accounts for each of them and that can be the starting point for their account.
- Cashback, cashback, cashback… who does not love getting cash back. Well, this was not a tip that was mentioned, but we did discuss cashback and I have a tip that I utilize that may work for you. When you have a credit card (CC) that offers this here is a tip for you. Figure out what your overall balance is, and then instead of using it to make purchases apply it to a bill for example. Let us say your phone bill that you pay monthly is hypothetically speaking $100. Now, let us say you get a cashback of 5%, that is $5.00 if you project that for the year you can possibly earn $60. So, in lieu of paying the phone bill direct, think about it as a triangle. Use CC, to pay the Bill, use the cash to pay CC or set up an automatic recurring payment to pay the card; establish the amount or budget first. What will happen is your bill(s) will be paid and then when you pay CC, your best gal, she will reward you with cash back. This may need it is on blog…. I usually get a ton of questions on this. Let me know 🙂 would love to hear your feedback.
- BONUS 1: Lastly, I have mentioned this in a previous blog and it is worth the mention here Protection for your best gal, CC I wrote about having insurance for all possible financial valuables including your credit. This can truly make the difference when you have an issue. For example, a lot of people recently became unemployed if you have an Account Assure or Credit Card Protection even an Aflac or policy of that nature, you can contact them and submit a claim that your life circumstances changed and now you are unemployed. Check out that article to learn how you can help yourself get financial help on those payments, possible hardships and sometimes they will pick up the complete tab.
- BONUS 2: This comes from Nadia Pettignano who is a great long time friend, who recently mentioned in one of the comments on a post that they, “would also explore splitting mortgage payments 2x per month, it will save you tons of interest on your loan if you are a homeowner.” I am going to look into that! Thanks Nadia.
Overall, I was super pleased with the level of service at the bank and all the the tender, loving, care (TLC) I was given.
Thank you for taking this financial journey with me on this Fannytasticlife!
Fannytasticlife, Happy chaos. – Fannytasticlife
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