Is That Health Insurance Website for Real?

Posted on November 5, 2014 by Melissa Hart

Shopping for health insurance online?  Before making your final purchase – read on.  Health insurance scams have been preying through websites selling medical discount plans.

According to the complaint in a recent case FTC settlement, IAB Marketing Associates, LP et al. , was a sham nonprofit trade association offering memberships suggesting it would provide consumers with a comprehensive medical insurance plan. Here’s how it worked: people shopping for health insurance online would come across websites quoting prices for health insurance plans once they entered their personal information. The websites acted like collection baskets: they asked for contact information, age, occupation, marital status-and whether folks had health insurance or pre-existing medical conditions. IAB telemarketers then called people who provided their information on these websites and used aggressive tactics to sell IAB memberships. As long as people paid upfront fee and made monthly payments – both ranging from $40 – $1,000 – they were promised a comprehensive health insurance plan that covered virtually every medical procedure and illness

Or so they thought.

The truth? According to the Federal Trade Commission (FTC), consumers never were enrolled in a comprehensive health insurance plan. The IAB plan was essentially a medical discount plan, offering, if it existed, limited discounts and reimbursements on visits to certain doctors or hospitals. Many consumers who suffered an accident or illness were shocked to find that their IAB “health plan” covered very few, if any, medical expenses, leaving them with major medical bills.

For additional information go to:

http://www.consumer.ftc.gov/blog/health-insurance-website-real

Teaching Suggestions

  • Ask students why they should research a company before providing their personal information.
  • Where can students file a complaint if they suspect a health insurance scam?

Discussion Questions

  1. How can consumers protect themselves from such scams?
  2. Should consumers provide personal information on the web?
Categories: Chapter 9, insurance, Wise Shopping | Tags: | Leave a comment

Be Smart About Your Smartphone

Posted on November 1, 2014 by Melissa Hart

You just bought the latest Smartphone.  You loaded all your favorite apps–online banking, GPS, even an app to track your health.

But now your phone is full of information about you–how much money you have, where you are and whether you’ve gained a little weight.  Your information can cause problems if it’s in the wrong hands.  Want to protect it?  These tips are for you:

  • Set you phone to lock automatically. When you don’t use the phone for a few minutes, the phone should automatically lock itself and require a password to reopen.
  • Use passwords for your phone. In addition to a password to unlock your phone, use a different passwords for each shopping or financial app. Don’t share your passwords with anyone.
  • Be wise about Wi-Fi. Don’t send personal information on a public wireless network in a coffee shop, library or hotel. Wait until you can use an encrypted Wi-Fi network that requires a password.
  • Foil phishing attempts. Don’t text or email personal information, and delete any texts or email messages that ask for it. If you must give out personal information, do it only if you type in the organization’s web address yourself and you see signs that the site is secure–either “https” (the “s” stands for secure) or a lock icon.
  • Connect to Bluetooth carefully. Bluetooth makes it easier for you to connect your phone with other devices. But, like other wireless connections, Bluetooth also can make it easier for thieves to steal your personal information. So, connect to Bluetooth in private, uncrowded areas only. Don’t forget to turn off Bluetooth when you are not using it.

Now you are ready to start using your new phone, right? Before you toss your old Smartphone,  remove all your personal information.  It’s important to protect your personal information from the moment you start using your phone until you get rid of it.

For additional information go to

http://www.ncpw.gov/blog/be-smart-about-your-phone

http://www.consumer.ftc.gov/articles/0272-how-keep-your-personal-information-secure

Teaching Suggestions

  • Ask students how they get rid of all the personal and financial information stored in their mobile devices.
  • Why is it important to use strong passwords with your mobile device, laptop, credit, bank, and other accounts?

Discussion Questions

  1. Why is it important to protect your personal information from the moment you start using your phone until you get rid of it?
  2. What steps should you take to remove personal information before discarding your mobile device?
Categories: Chapter 5, Identity Theft | Tags: , | Leave a comment

Medicare & You 2015: What’s Important in 2015?

Posted on October 29, 2014 by Melissa Hart

In September 2014, millions of Americans received a 152-page booklet from the Centers for Medicare and Medicaid Services, called Medicare & You 2015.  It doesn’t have much of a plot, but it might be the most important reading for seniors or their adult children.  Here is what’s important in 2015:

  • Stay healthy with Medicare-covered preventive services. Medicare pays for many services that can prevent or detect health problems early when they are easier to treat.  Ask your health care provider what services you need.
  • Keep track of your personal health information. Access your personal health information using Medicare’s Blue Button.  This information can help you make more informed decisions about your care and can give your healthcare providers a more complete view of your health history.
  • Continue to get help in the prescription drug coverage gap. If you reach the coverage gap in your Medicare prescription drug coverage, you’ll quality for some savings on generic and brand-name drugs.
  • Find out what you pay for Medicare (Part A and Part B). The 2015 Medicare premium and deductible amounts were not available at the time of printing.  To get most up-to-date cost information, call 1-800-Medicare.

For additional information go to

http://www.medicare.gov/Publications/Pubs/pdf/10050.pdf

Teaching Suggestions

  • Ask students to choose a current issue of Money, Consumer Reports, Kiplinger’s Personal Finance, and summarize an article that updates Medicare’s programs for 2015.
  • Ask student where they can find other ways to get Medicare information and compare the quality of plans and health care providers.

Discussion Questions

  1. What factors should senior citizens consider in making the choice among various types of Medicare, medigap, or HMO health care insurance policies?
  2. What services are not covered by Medicare?
Categories: Chapter 9, Health Insurance, insurance | Tags: | Leave a comment

Stop Debt Collector’s Empty Threats

Posted on October 25, 2014 by Melissa Hart

Calls from debt collectors can add to the stress of having financial problems.  When these calls involve harassment, threats and intimidation, the situation can get worse–especially if you don’t know your rights

In 2014, the Federal Trade Commission filed a complaint against National Check Registry for violating the Fair Debt Collection Practices Act by using outrageous and intimidating methods to get people to pay debts immediately, often debts that were in dispute.  The company will tell the victims that they had committed check fraud or another crime and threatening them with lawsuits, garnishments, arrest or imprisonment if they don’t pay within 12 or 24 hours.

According to the FTC complaint, National Check Registry has no authority to make arrests or seek other criminal punishments for failure to pay these debts.

For additional information go to

http://www.consumer.ftc.gov/blog/stop-debt-collectors-empty-threats

Teaching Suggestions

  • Ask students what actions are commonly recommended if a person has difficulty making credit payments.
  • Ask students to outline the actions they should take when they receive phony debt collection calls.

Discussion Questions

  1. Are debt collectors allowed to discuss your debt with anyone other than you, your spouse or your attorney?
  2. What can you do if you think that a debt collector has violated your rights?
Categories: Chapter 5, Debt | Tags: | Leave a comment

The SEC Mutual Fund Cost Calculator: A Tool for Comparing Mutual Funds

Posted on October 22, 2014 by Melissa Hart

“Fees and expenses are an important consideration in selecting a mutual fund because these charges lower your returns.”

One of the common complaints from fund investors is that they don’t understand the different types of mutual fund fees.  And they are often surprised how fees can substantially lower their returns on fund investments.

This article provides basic information on fund fees and how they lower returns.  It also provides a link to the FINRA (Financial Industry Regulatory Authority) Mutual Fund Expense Analyzer.  By entering a fund’s ticker symbol, you can compare fees and performance for different funds.  And if you don’t know the fund’s ticker symbol, you can also search by using the fund name or key words.

For more information go to http://www.sec.gov/investor/tools/mfcc/mfcc-int.htm

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Stress how fees and charges lower an investor’s return on a fund investment.
  • Illustrate how to use FINRA’s Mutual Fund Expense Analyzer.

Discussion Questions

  1. Why should load charges, management fees, and other charges be considered when evaluating a mutual fund?
  2. Use FINRA’s Mutual Fund Expense Analyzer to evaluate the Fidelity Small Cap Growth Fund (Symbol – FCPGX) and the Vanguard 500 Index Fund (Symbol – VFINX). Which fund had the highest fees and sales charges?  Which fund had the highest return over the 10-year period?  Note:  You will need to access the Mutual Fund Expense Analyzer through the SEC link at  http://www.sec.gov/investor/tools/mfcc/mfcc-int.htm.
Categories: Chapter_13, Investments, Mutual Funds, Savings | Tags: , , , | Leave a comment

The Perils of Penny Stocks

Posted on October 18, 2014 by Melissa Hart

“The best way to avoid penny stock scams is to do independent research.” 

This article underscores the importance of researching penny stocks before investing.  Too often, the lure of “big” profits encourages people to invest without researching penny stocks.  Simply put, they don’t do their homework.

According to this article, a good place to obtain research information about penny stocks is the Security and Exchange Commission website (www.sec.gov).  By examining a company’s 10-K annual report, 10-Q quarterly report, and Form 8-K filings, in which companies report material events.

The article also warns investors about email promotions about penny stocks that are more hype than reality.  For example, Paul Allen, a 65-year old retiree from Boston,  received a flood of emails about a company called Vapor Hub International suggesting that shares of the e-cigarette company were about to take off.  He invested and quickly lost 80 percent of his investment.  And there are many more examples where investors–especially investors with limited funds and little experience buying and selling stock–often lose all or a large portion of their investment.

For more information go to http://www.kiplinger.com/article/investing/T052-C008-S002-the-perils-of-penny-stocks.html

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Remind students that there is no substitute for research when picking any stock–especially penny stocks issued by small companies without a proven track record.
  • Tell students to remember the old adage “if it sounds too good to be true, it probably isn’t true.”

Discussion Questions

  1. Most investors know the risks involved when they invest in penny stocks. Still, they invest their money.  Why do you think they choose penny stocks?
  2. Assume that you are considering an investment in Vapor Hub International. What information could be used to evaluate this penny stock?  Where would you get this information?
Categories: Chapter_12, Frauds and Scams, Investments, Stocks | Tags: , , , | Leave a comment

Here’s How to Become a 401k Millionaire

Posted on October 15, 2014 by Melissa Hart

“If your job offers you a 401k or similar retirement plan, you’ve got one of the very best investment tools at your disposal.”

To become a 401k millionaire, all you need is a paycheck, reasonable options in your retirement plan, and time.  This article also explains that once you start putting money into the plan, the tax-deductible investments grow and are tax-deferred until you begin to withdraw money from your 401k account.  As an added bonus, your employer may match all or part of the money you contribute to your 401k account.

A very useful table that shows how many years it will take for you to become a millionaire based on how much you (and your employer) invest each month with different rates of return is also included in this article.  And there are also suggestions for increasing the amount that you save or invest in a 401k account or other savings or investment accounts.

For more information go to http://www.fool.com/retirement/401k/2014/09/27/heres-how-to-become-a-401k-millionaire.aspx

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Stress the importance of beginning an investment program sooner rather than later.
  • Discuss ways to save the money needed to start an investment program.

Discussion Questions

  1. Why is it important to begin saving and investing sooner rather than later?
  2. Assume you (and your employer) invest $250 a month in your 401k account. How long will it take for you to become a millionaire if your investments earn annual returns of 10 percent?  (Note:  Using the table in the article, the answer is 35.5 years.)
Categories: Chapter 1, Chapter_11, Investments, Opportunity Costs, Time Value of Money | Tags: , , | Leave a comment

Active Learning Strategies

Posted on October 11, 2014 by Melissa Hart

To encourage student involvement and enhance long-term learning (more than memorization), consider the following:

  •  Case studies and simulation allow students to think and reflect, both individually and in groups. These real-world situations allow student to gain a broader view and increase understanding. An analysis of cases helps student develop higher levels of learning and enhances creative problem solving.
  • Concept maps, or frameworks, are visual representations for organizing knowledge and showing connections among various course topics.  Student-created concepts can be used to assess student understanding of relationships among various course concepts.
  • Short writing assignments can a valid gauge of student learning. Using open-ended questions can encourage reflection and feedback on the subject matter. Possible prompts for these short papers might include: (1) What was the most important learning from today’s class? (2) What topic needs to be further clarified? (3) How did you prepare for today’s class? (4) What was most beneficial about today’s class learning environment.:

For additional information on active learning strategies go to:

http://www.facultyfocus.com/articles/effective-teaching-strategies/three-active-learning-strategies-push-students-beyond-memorization/

 Teaching Suggestions

  • Ask students to suggest ideas to enhance their involvement in class.
  • Conduct online research to obtain additional information on active learning strategies.

 Discussion Questions 

  1. What are potential benefits of active learning strategies?
  2. What concerns might be associated with active learning?
  3. What active learning techniques have you used?
Categories: Teaching Tools | Tags: , | Leave a comment

Mistakes of Homebuyers

Posted on October 8, 2014 by Melissa Hart

An increasing number of homebuyers are coming into the market. However, along with that trend, is an increasing number of financial regrets due to mistakes such as:

  •  considering that renting may still be a viable financial choice in some situations; for example, if you may be moving due to a job or other circumstances.
  • with rising housing prices and higher mortgage rates, some buyers may not be competitive when bidding on a property.
  • other debts (such as a high car loan) may limit the monthly payment a person can afford.
  • putting too much faith in online property prices, which can give a false sense of true home values.
  • skipping the home inspection can result in not being aware of subtle home defects.
  • unrealistic expectations of the future appreciation of the home.

For additional information on mistakes made by homebuyers go to:

http://www.cnbc.com/id/101837611

Teaching Suggestions

  • Have students research suggestions for avoiding home buying mistakes.
  • Ask students create an in-class presentation with suggestions for avoiding home buying mistakes.

 Discussion Questions 

  1. What actions might be taken to avoid these home buying mistakes?
  2. Describe other difficult situations that a person might encounter in process of buying a home.
Categories: Chapter 7, Home Buying, Purchasing Strategies | Tags: , , | Leave a comment

Thinking Like A Rich Person

Posted on October 4, 2014 by Melissa Hart

While thinking about getting rich will not get you there, certain attitudes (along with accompanying behaviors) can move you in that direction. In his book How Rich People Think, Steve Siebold makes these suggestions:

  1.  Leverage, the use of other people’s money to make money, is the foundation. Look for investment opportunities that will grow your wealth faster than saving part of your wages as an employee. Look for methods to solve problems to make money.  New products and services are created each day, and some will result in large fortunes.
  2.  Avoid the lottery since only a very, very small number of people will retire using that financial planning path.
  3. Worrying about money is a waste of time. Concentrate on problem solving to make money. Even as an employee, your creativity and innovations can result in a higher salary.
  4. Emphasize investing instead of spending. This action will result in higher wealth.
  5. Use credit to your advantage, not for things you don’t need and can’t afford.

 For additional information on thinking like a rich person go to:

http://www.foxbusiness.com/personal-finance/2014/09/12/5-ways-to-think-like-rich-person/

Teaching Suggestions

  • Have students talk to others to obtain additional suggestions for improving a person’s long-term financial security.
  • Ask students to propose a product or service that solves a problem in our society and could result in future income.

 Discussion Questions 

  1. What are common barriers that people face when taking the actions suggested above?
  2. Describe additional actions that might be taken to create long-term wealth.
  3. What are some examples of problems to be solved in our society that could be the basis for future products or services?
Categories: Chapter 1, Financial Planning | Tags: , | Leave a comment

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