Showing posts with label Financial Tailor. Show all posts
Showing posts with label Financial Tailor. Show all posts

Tuesday, October 16, 2012

Credit or Debit?

Last Thursday was mall lunch day.  As usual, we all went through the lines at various businesses in the food court.  I chose pizza that day.  Boy, was that expensive pizza!  Actually,  before I even received my receipt I heard the clerk make some funny gasping sounds.  She seemed pretty upset and then finally explained to me the problem.  She'd accidentally charged me over $800 for my meal!  Yikes!


I had used my debit card for this transaction so she then had to figure out how to issue a credit.  That took some time but she finally managed to do it and gave me that receipt as well.  I was surprised by all this because I thought our debit card had a $300 daily use limit anyway.  I'm not sure but maybe it is because she ran our debit card as a credit card.  I don't know.  Anyway, I didn't throw a fit.  It looked as though she'd reversed everything so I assured her all was well.  She really was more upset than I.  She then ran the transaction for the proper amount and I went off to eat my lunch with my family, telling them of my little adventure.


Do you use a debit card much?  I love the simplicity of it!  I am careful, though.  For instance, if we are eating in a restaurant where they take your card from you at the table and go to a back room to run it, I will only use cash or a credit card.  Why?  Because stuff happens.  I don't want my debit card out of my sight.  As far as I know it wouldn't be more likely to happen with a debit card than a credit card but the repercussions can be more difficult to manage.  

If there is a problem with a credit card, I am pretty confident it will be corrected...eventually.  We've experienced a couple of cases of credit card fraud years ago.  The issuing bank always fixed it for us with no problems.  Actually, it was the credit card company that found one of the errors and reported it to us before we even knew it occurred.  It was some company far away that set off some sort of alarms with the fraud department of the credit card company.  I even had our credit card company fraud people call me on a Christmas morning  regarding a charge they were investigating.  As it turned out, it was a gift I'd ordered for one of our boys.  I asked why that one made them suspicious and it was because they'd had a lot of fraudulent charges of that item in particular.  Anyway, I figure if someone does something bad with a credit card I will have some time to deal with it.

If someone uses our debit card fraudulently I assume the bank will work it out as well.  However, in the meantime it could cause a lot of problems.  For example, it someone used our debit card for a large amount, that amount would immediately be taken out of our bank account.  Even if it is later put back in, during the interval time that money would not be available to us.  We may unknowingly write checks that bounce or have the card rejected when getting groceries or something.  So, I only use it when it stays in my sight, never online or over the phone either.

Well, in the situation of my expensive lunch, I thought the immediate refund would balance it all out.  I learned something new.  Although the clerk put through the credit on that gross overcharge only minutes later, $843.43 was immediately noted on our account as a pending transaction.  Although it didn't ever really go through, that amount was deducted FOR THREE BUSINESS DAYS!  The credited amount did not appear at all until the third day.  I go online and peek at our bank account frequently and I'm glad that I did so that I could adjust as needed!  On day three, everything went through, the refund negated the charge and the drama was over. 

What I learned from all of this is that when your card is used, even though it appears on your account right away, a company has three business days to put it through in its final form.  That is useful for things like renting a hotel room.  The hotel can put the charge through as a pending amount, to be certain your card (debit or credit) will cover the room charge.  However, they may need to change the final amount if you charge room service, a movie or something more on the card.  Or, if using a card for a meal a restaurant may run it through for the cost of the meal to be certain it will be covered.  When you sign for it, though, you may choose to add the tip amount on the bill.  They have up to three days to go back in and adjust that total.  It all seems kind of messed up to me but that's the way it is.

Have you had any weird problems with a debit or credit card?  It can happen with checks as well.  Once, several years ago, Mike's paycheck wasn't applied to our account when we deposited it.  Although we had a receipt, something weird happened at the bank.  We were oblivious to the problem as that was before I could go online and check our account regularly.  That was quite a mess before it was all resolved!

So, here's my banking advice for you.... pay attention.  That's it.  That's the advice.  Just pay attention.  Look at your receipts, check your accounts regularly and report any problems.  That's all the financial advice I have for you.  

If you want real financial advice, including a FREE investment plan,  visit Financial Tailor.   


Monday, October 08, 2012

Financial Tailor

I have a hard time being interested in financial planning and investing.  Why is that?  I do like the idea of financial security.  I hope that when we retire our children won't have to help us make ends meet.  I want to make our money useful not only to us, but for charities we support.  Nevertheless, my brain kind of glazes over when someone starts talking to me about financial issues.

 Lucky for me, I've got some help now!  Our oldest son, Ben, is a professional in this area.  Maybe it is because we named him after Mike's banker grandfather.  I don't know but he has a serious knack when it comes to money management and financial advising.  He worked for a large,  national bank and helped a lot of people with his knowledge and ability advising them with their investments.  He enjoyed that work but could see areas where things could be done better, ways to better benefit his clients.

Eventually, Ben founded a new company with a new and innovative approach to financial advisement.  I moved my own 401K's to an IRA with his firm.  The banks handling those funds tried to scare me I did it because I trust him.  I know him.  He's a man of integrity.  With  his company, Financial Tailor, I went through a questionnaire that really helped me to know my own financial needs.  I was the one making the choices regarding risk, but I had access to professional knowledge and advice.  Other questions were more of an ethical or moral nature and because of that approach I get to know that my money won't be invested in companies that would upset me.  It was quite in-depth and helped me to think about some things I'd not considered before.  For instance, I do NOT want my money in the tobacco industry.  I also don't want to support companies that put painful shampoos or something in animal's eyes to see if it hurts.  You see what I mean?

I was one of those people who didn't have a clue regarding how much the bank was getting for managing my 401K.   As it turned out, their fees are much higher than those of Financial Tailor.  Financial Tailor, because they are an online company, keeps overhead low.  Don't think for a minute, though, that they sacrifice that personal touch.  You have access to a wealth of information as well as personal advice.

The Financial Tailor Clients have access to a LOT of information.  Their website is loaded with information!  In fact, a lot of that information is available just for visiting their website.They have a newsletter that explains a lot of what is going on in the financial world and why it effects the market.  You can learn tips about hedging and diversification.  You can even ask a question online and receive a personalized reply.

No, I'm still no whizz at investing but I don't have to be.  My investment adviser breaks things down for me into ideas I can understand.   I can learn what I need to know and I can trust that my money is well cared for.  Maybe you should check it out as well!

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