Monthly Investment Message: July 2016

Barbara O’Neill, Extension Specialist in Financial Resource Management

Rutgers Cooperative Extension

July 2016

Challenge Yourself to Save and Invest

What’s the best way to “find” money to save or invest? There is no one right answer. Automatic payroll deductions work well for many people, For example, they have deposits into a credit union account or 401(k) or 403(b) retirement savings plan automatically taken out of their paycheck, before they spend it. Other people do well saving loose change in …

Is unit pricing mandatory in large U.S. grocery stores?

Unit pricing regulations usually require the posting of unit price per pound, ounce, etc., on supermarket shelves for each consumer commodity, along with the sales price, so that consumers can compare value more easily. A careful review of unit pricing regulation shows no mention of a retail outlet’s size. Rather, it seems that each state has authority to decide what unit pricing regulation it desires, if any, and regulatory differences between states are expressed in various categories of products, but …

What should a good budget include, and what are the limitations of budgeting?

A personal budget (also known as a spending plan) is a plan for spending and saving money that allocates future income toward expenses, savings, and debt repayment. Past spending patterns, personal debt (i.e., outstanding balances that commit part of future income to repay), and future financial goals are considered when creating a personal budget.

A limitation of a budget is that it will only work if it is adhered to by all members of the family or household. If someone …

Can I roll over or transfer a fixed deferred annuity tax free?

Fixed annuities are similar to bank certificates of deposit (CDs) in that they earn a guaranteed interest rate for a set period of time. Two major differences are that fixed annuities are tax deferred and often provide a higher return than bank CDs. Yes, you can roll over or exchange a fixed annuity for a new annuity. Check to make sure that surrender charges don’t apply, however. Typically, a minimum deposit of at least $5,000 will be required. Investment experts …

What were Traditional IRA and Roth IRA Contribution Limits in the Past?

IRAs were established by legislation passed in 1974. Traditional individual retirement accounts (IRAs) first became available in 1975. Anyone with earned income can make the maximum traditional IRA contribution as long as they had at least that much income in a given year. A non-working spouse can establish his/her own traditional IRA if the earned income of the working spouse equals or exceeds the total contributions to both partners’ IRAs.

IRA maximum contribution limits have increased over the years. They

Investing for Your Future



A Cooperative Extension System Basic Investing Home Study Course

Sponsored by Rutgers Cooperative Extension

Financial Security: Saving and Investing

Even though the words “saving” and “investing” are often used interchangeably, there are differences between the two.

Saving provides funds for emergencies and for making specific purchases in the relatively near future (usually three years or less). Safety of the principal and liquidity of the funds (ease of converting to cash) are important aspects of savings dollars. Because of these characteristics, savings dollars generally yield a low rate of return and do not maintain purchasing power.

time and money

Investing, on the other …