Daily Money - Preventing Credit Card Fraud

March 1, 2022

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I’m old enough to marvel every time I tap my credit card to pay for something. When my kids grow up, they’ll probably pay with facial recognition and recall the time when they had to touch a device to make a transaction. As technology evolves, so do scams. In today’s featured story, my colleague Julia Glum recalls how her grandma advised her to write “See ID” on the signature line on the back of her credit card. That used to be done to outwit thieves, who wouldn’t be able to match the names on a credit card and driver’s license. But it’s outdated advice, Julia explains. She offers other tips to avoid becoming a victim of fraud. And since it’s tax season, here’s a friendly reminder that the IRS never calls taxpayers to demand payment (even if you owe money).

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Timely Retirement News, Insights and Advice

Not anymore. Here’s what you can do instead.

Investment frauds were some of the most successful.

The digital currency hasn’t provided a gold-like stability during the crisis.

Traditional IRA, Roth IRA, or both?

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When saving for retirement, you have options, like choosing between a traditional and Roth IRA. While both are tax- advantaged accounts, there are some key differences.

For starters, there is a maximum income limit to contribute directly to a Roth IRA. If you do qualify, the long-term benefits are powerful because potential earnings grow tax free.

With a traditional IRA, there are no income limits to contribute and you may also get the more immediate benefit of tax-deductible  contribution. Other considerations include whether your spouse works and how much flexibility you’d like when it comes to accessing your money. You may even find that having both a traditional IRA and a Roth is right for you.
 

Reader of the Week

What are you up to these days?

Since I don’t golf, fish, hunt or camp, I decided before retiring that I would engage in several freelance activities that I greatly enjoy, and that I would continue to volunteer doing two activities that I also enjoy and am effective at in helping others.
 
I work as an investment advisor at a veteran-owned firm that is very professionally run, and since we have low overhead we can afford to charge very reasonable rates. We manage money for all individual investors, not just veterans. I also prospect for a firm that finds jobs for Armed Forces veterans and/or their spouses.
 
My volunteer work includes coaching veterans as they transition from the service. I also teach financial literacy. Virtually no one in my family worked in business, almost all served in the Armed Forces then worked at hourly jobs. I had no education or clue about financial literacy material. I learned through trial and error, through school and through my job.
 
You’re busy! What’s your best advice on preparing for retirement?
 
If possible try to do a “dry run.” Maybe your job allows a sabbatical. Or you can have a medical procedure done that requires you to be home for a few weeks, see how that feels. Work from home was also practice but you still had to work! Next, ensure you have activities identified — whether for fun or for pay ensure you can occupy your time in a way that you enjoy— on YOUR terms. And, analyze costs vs. income from your portfolio or pension to ensure you will be okay. Maybe model the costs to be higher (include the unexpected like medical costs and helping family financially)  and the income to be less. If your numbers look good, then validate them with many widely available software programs.
 
I sometimes read that retirement expenses may be 70% of what you had while working. I suggest planning for costs to be 130%. You have more free time, can travel, see shows, go to sporting events, have dinner out, etc. Plan for this when you assess your income vs. expenses. And become a coupon/discount champion.
 
Exercise and diet are critical. Granted, I’m ex-Army and enjoy torturing myself. But I am toning it down as I get older. Nothing wrong with adding a pound or two. Eat some cake. But a daily walk, doesn’t have to be brisk, is a great idea. A light dumbbell routine, calisthenics, abdomen and core work (mine is only 8 minutes twice per day!!) and some cardio will do the job.
 
Great advice! What drove you through your career and drives you even now?
 
When I grew up and even more so as a young adult, my financial situation was unstable. I had a negative net worth until age 36. I was and remain committed to living within my means and to economizing and saving for a rainy day. It is my responsibility, no one else’s. I also try to improve myself: continue to learn, broaden my interests, maintain physical fitness and be the best person I can be.

Retirement News From Around The Web

How to Help Ukraine: 7 Verified Charities Working to Help Ukrainians
Beware of scammers who might take advantage of the war, and turn to trusted charities if you are in a position to help. TODAY

The End of Traditional Medicare As We Know It?
Listen to a podcast that describes the creeping privatization of Medicare, and what they might mean for beneficiaries’ care. RETIREMENT REVISED

How Long Does a COVID Booster Shot Last?
Less than half of fully vaccinated Americans ages 12 and older have gone back for their booster shot, which can offer robust protection. AARP

Ageism in the Self-Checkout Lane
Here’s how to make the self-checkout lane less frustrating to older adults who may have difficulties navigating the technology. NEXT AVENUE

Elizabeth O'Brien is deputy editor at Money. She has covered retirement and health care for nearly a decade. A Brooklyn resident and mom of two boys, she navigates the alphabet soup of Medicare and the New York City subway system with equal ease. You can email her at elizabeth.obrien@money.com and follow her on Twitter at @elizobrien.

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