How to Setup a Retirement Portfolio Model in Clariity

Think planning for retirement is complicated?  Well that’s because planning for something that lasts as long as retirement can (and is decades away for many of us) gives you a lot of unknown factors to take into account. In 30 years form now, what will interest rates be?  How will the tax code change?  What kind of investment performance will you see in the stock market?

Of course, no tool can tell the future but you can play with the numbers and make best guesses based on a variety of scenarios.  When I wrote about the online financial planning tool called Clariity, the CEO gave me a list of how you can go about setting up investing and retirement modules on theirs site.  You can go in an tweak the numbers and see what impact it has on your projected rate of return.

Thes steps he sent were somewhat detailed so rather than overwhelm you with steps in my Clariity review I just included them here.  Check out this guidance he gives for setting up and tracking your module.

Retirement Portfolio Model Setup

1) Establish account aggregation feeds by setting up your accounts on Clariity (Yodlee/CashEdge service).

2) From the list of accounts, the user can quickly select the accounts to include in the portfolio analysis.

3) The user goes through a risk tolerance questionnaire for suitability, time horizon and risk profile.

4) The score from the RTQ is mapped to various model portfolios.

5) Based on the risk profile, the system will indicate a particular risk profile such as Moderately Aggressive.

6) The system would then provide a side-by-side comparison pie chart view of current asset allocation vs. suggested asset allocation.

7) The allocation is presented in major assets classes and/or sub asset classes with the dollar values to describe how to reallocate.

8 ) If the qualified assets are managed by us, the user will then be taken to fund recommendations. Based on their investable assets , risk profile and goal objectives, the system will recommend a set of investment options.

While we would show a primary fund recommendation, the user can elect to select from other available fund model portfolios. One set may be comprised of ETFs, another index mutual funds, or for others if the asset level falls under Mass Affluent, HNW or UHNW, individual securities, fixed income and other vehicles may be suggested.

9) The user can hold/sell/buy a portion ($ or %) or entirely.

10) They can elect to rebalance to their new asset allocation and funds.

11) After receiving the trade confirmation, the user can on a real-time basis (15 min delay quote) track the performance of their portfolio.

12) Built in drift variance alert warns users when their investments move beyond a tolerance band % of their recommended asset allocation.

13) Performance reports and statements would be available online.

Thanks again to Scott for taking them time to detail the setup.

Posted on March 17th, 2011 in Personal Finance | 3 Comments

Written by Ben Edwards · Filed Under Personal Finance 

Free Turbo Tax Software!

Free TurboTax Premier Giveaway

Thanks to the team at Intuit, I’m giving away free access to TurboTax Premier to six of you! We covered using the software to file your income tax return earlier this year in the TurboTax review so I figured it would make sense to give some of you a chance to try the tax software for free.

Actually, if you’ve been paying attention, you’ll recall that I’ve written before about how anyone can get a free trial of TurboTax.  There’s no charge to go through the process of entering all your information in the online edition, you only pay when you go to file. 

The winners of this giveaway will get a special TurboTax coupon code that you’ll enter when reviewing your tax return that will waive your fees.  The promo code is good for TurboTax Premier Online 2010 – one federal & state preparation with e-file. 

Why I Like TurboTax

There’s a guy at my office who’s about to retire who’s been doing his taxes by hand for decades.  Every year during tax season he takes vacation days for part or even all of a week to prepare his tax return.  It’s become kind of joke that whenever he’s out for a few days he must be working on his taxes.

Of course his are a little more complex than average because he has things like rental properties and a side business.  Regardless, I don’t think many of us would want to use up a whole week, or even a day, of vacation time to work on taxes.

I’m busy enough now that I actually use my old college roommate, turned tax attorney, to prepare my taxes for me.  But for years prior to that I always used TurboTax to do the tax prep, then I printed out my return and mailed it in.  The years I probably appreciated it the most were the ones when I put my taxes off until the last minute. 

Don’t Procrastinate

There were some late nights when I was really glad to have the software walking me through it so I could get it finished and mailed in the next day. What always seemed to get me was a form I couldn’t find. I knew it was filed somewhere in my office but didn’t want to go through my whole desk again at 2 AM. 

So don’t wait until the last minute to file your taxes.  Even if you can’t sit down and do them all at once, at least spend a few minutes on them each night so you’re not scrambling the night before the tax deadline.

TurboTax Versions

Last year I had some conversations with Bob Meighan at Intuit about TurboTax vs manually filing a tax return.  Turns out about 15% of people that use TurboTax use the Free 1040 EZ edition. If you qualify for free filing, you’re welcome to try and win the Premier edition but it’s definitely more than you need.  

I also learned that around 60% of their customers use TurboTax Deluxe; which doesn’t have some of the investment (cost basis tracking, retirement contributions, stock sales) and rental property (real estate depreciation, landlord deductions, loan fees) features in TurboTax Premier. Of course, if you only need the Deluxe version, the Premier edition will work for you so feel free to enter to win.

Win TurboTax Premier

So how can you get your hands on TurboTax Premier? Well you don’t actually have to worry about messing around with the mail because the versions up for grabs can be accessed via TurboTax online. As I mentioned above, the winners will receive a Turbo Tax code that gives you one free federal, free state, and free e-file with the Premier edition.

I ran this same giveaway last year with fewer copies and it was really popular so I’m pretty excited to offer it again. I imagine some of you have already finished your taxes but if you haven’t then certainly give this a shot.

How to Enter

The rules are simple, all you have to do is signup for my free email newsletter to win.  I’ll randomly select 6 people as winners and notify you via email.  If I don’t hear back from you in 3 days after emailing, or you no longer need it, I’ll randomly select an alternate winner.  I’m afraid I also have to limit it to residents of the United States.

Enter your email address below to signup for the newsletter and enter to win:

  

Posted on March 15th, 2011 in Taxes, TurboTax | 35 Comments

Written by Ben Edwards · Filed Under Taxes, TurboTax 

Choosing the Best Rewards Credit Cards

Rewards credit cards were the subject of several reader emails recently after I discussed choosing the best credit cards for one of my newsletter readers.

Most of the questions were about cash back cards and gas cards – In general cash back cards seem to be the most popular overall but gas cards definitely grow in popularity every time gas prices start to go back up.

Gas Rewards Cards

Unfortunately, the amount of money you can earn with a gas credit card doesn’t do much to offset the high cost of gas.  Of course, every little bit helps so I took a look at gas cards and how much you can expect to earn from them.  The rewards can range from 2–5% depending on which ones you’re eligible for and how you use the card.

As mentioned in our recent article about saving money on gas, earning cash back won’t do you any good if you’re paying interest on those purchases, so certainly avoid that.  If you’re going to use a rewards card you want to make sure you get the most out of it, which means getting the highest % rate of rewards. Some of the cards that earn the highest cash back rates require specific memberships so you’ll have to think about whether it’s worth it to you to join in order to earn rewards.

Other cards have varying bonus categories or certain levels of spending you have to reach, if you don’t want to hassle with those then you can get a simpler card – you probably just won’t earn as much cash back.  You can see more of the detail behind those decisions in my post about the best gas rewards credit cards.

Cash Rewards Cards

Going back to my post on choosing the best card for you I took a look at what questions you can ask when you’re trying to pick a cash back card.  You’re looking for one that fits your spending habits and rewards earning potential.  It does require some research because you’ll want to look back and determine what your spending history look like.

You’ll have to decide whether you want to change how you spend and if you’re going to continue the same patterns you’ve had in the past.  Once you figure that out you can match up your past, or desired, purchasing behavior against which card fits you best.  You can go through the questions in the post on the best cash rewards cards.

Comparing Cards

I recently had a co-worker ask me about the difference between the Blue Cash and Chase Freedom card.  As you probably know we use the Blue Cash and I’ve brought it up at work before.  He and his wife don’t have a rewards card and were thinking of applying for applying the Chase Freedom card, so he asked my opinion on the two and how they compared. 

I gave him a high level overview but told him I’d do a more detailed comparison and get back with him.  So I wrote up a look at the two cards and how they compare in different areas, if you want to see some things to look for when comparing cards the Blue Cash vs Chase Freedom match up is an example.

Travel Rewards Card

If you’re not a big traveler then a cash back or gas rewards card probably makes the most sense. But if you already travel a lot for work or you have a big trip you’d like to go on someday then it may be worth taking a look at travel cards.

The thing about this category of cards is that there’s a pretty wide range of options ranging from airline cards, to hotel cards, to rental car rewards, and more general travel cards.  Once again, which card you pick should depend on what type of type of travelling you’re planning and how you’re going to earn the rewards.

The good news is, it’s just a credit card. It’s not like you’re planning your retirement or trying to decide which house to buy. So even though there are a lot of choices, don’t get too hung up on it.  If you choose one that’s not exactly perfect for you it’s not the end of the world and down the road you can switch to another card.

That being said, you do want to get the most out of the card, mine as well take advantage of the opportunity. If these types of cards are something you might be interested in, I go over the different types of cards and what questions you should ask in this look at the best travel rewards cards.

Maximizing Cash Back

Speaking of getting the most out of your card, there’s one more thing I want to mention. During all this digging I’ve been doing into rewards cards over the last few weeks, I came across some frequently asked questions and misconceptions about cash back cards.  So I decided it would be good to put together a report on things you should know to earn the most you can from your cash back card.

I’m sending it out to members of my email newsletter, if you’d like a copy, just enter your email address below and you’ll get the report, “10 Secrets to Maximizing Your CashBack Rewards”, in your inbox.

 

 

Posted on March 14th, 2011 in Credit Cards | 3 Comments

Written by Ben Edwards · Filed Under Credit Cards 

Wanting What You’ve Got

You know you’re getting older when you start listening to radio stations featuring music from 15 years ago.  Last weekend, I really enjoyed an internet radio station that played only songs from the years I was in high school, brought back memories but also made me feel old.

After that ended the station started playing songs from early 2000 and one came on that I hadn’t heard for a while.  The songs were mostly backround music but this one song, this one lyric caught my ear.  When I heard it, I realized how true it was and how much of a difference it could make in someone’s life.

The song was “Soak Up the Sun” by Sheryl Crow and the lyric says:

“It’s not having what you want
It’s wanting what you’ve got”

Having What You Want

The pursuit of having what you want is one that can lead to eternal disappointment.  For whatever reason, us humans seem to be wired to always want more than we have.

This isn’t necessarily a bad thing, this drive to achieve is what helps many of us excel in life.  This internal force is the momentum behind countless acheivements where people accomplished things they were told couldn’t be done. 

Pioneers in all areas of our society have had big dreams, have had enormous “wants” and pursued those relentlessly.  Innovation and growth have helped to propel the “American Dream” for hundreds of years.  That dream has changed from generation to generation but a common theme has been to make a better life for ourselves, our families, and our community.

There’s no doubt that the struggle to have what you want for you and your family can be exhausting. I think one of the reasons for this is that we keep resetting the standard that we strive to meet.  We achieve our goals, then look ahead to the next milestone of our American dream.

One of the things that happened along the way is that people discovered they could get what they wanted sooner by borrowing money to pay for it.  It became possible to spend money we don’t have and after a while we found ourselves working to pay the interest on the American dream that we had paid for pre-maturely – before we could actually afford it.

Wanting What You’ve Got

So back to the lyrics, “it’s not having what you want – It’s wanting what you’ve got”.  There’s nothing wrong with ambition and the desire to grow and excel but if we can’t take time to appreciate where we’ve come from and what we’ve acheived – then we spend our whole life trying to get what we want. 

This can be tough to do, I struggle with this myself.  I have big dreams and big plans so sometimes I have to stop and remind myself of the blessings I have in life.  I don’t think I’ll ever be able to squash the voice in my head that drives me to improve and create but I have to make sure that I take time to “want what I’ve got”.   What do you think?  Is it easier said than done, or are you pretty content with your spot in life?

Anyhow, not that I’m finished with my financial reflections, here are some articles from the week you might enjoy:

Personal Finance

Investing

Also, thanks to Own the Dollar for recently including Money Smart Life in the carnival of Credit Score and Debt and to Kid Money for our inclusion in the Family Finances carnival.

Posted on March 13th, 2011 in Personal Finance | Comments Off on Wanting What You’ve Got

Written by Ben Edwards · Filed Under Personal Finance 

10 Ways to Waste Money on Gas

Saving money on gas is a nice idea but when you look at the lists of ways you can save money on gas you start to remember why it is that you weren’t so good at it last time gas prices were this high.  Many of the gas savings tips require some form of planning ahead and in our busy lives these are easy to forget or put off until later.

So keep doing these 10 things and you’ll be sure to burn more money than you’d like at the pump. If you get tired of paying more than everyone else for gas, try cutting out one or more of these gas wasting habits and see how it lowers your gas bill.

1) Not planning your trips
Making multiple trips out that could have been combined into one big trip is an easy way to burn through extra gas. If the stores you are shopping at are all in the same direction then you’re doubling up on the miles to and from your house. It may seem like a small amount, but depending on the distance and how consistently you make this mistake you could easily burn through hundreds of dollars per gas every year.

2) Owning a gas guzzler
The easiest way to waste money on gas is to drive a vehicle that chugs gasoline. If you have the option of a vehicle that gets 17 miles per gallon and one that gets 26 miles per gallon that’s an enormous difference. On a 200 mile trip the gas guzzler will use an extra 4 gallons. At $3.35 per gallon that’s $13.40 for that single trip. Choosing a car that sips gas rather than chugs it is one of the easiest ways to not waste money on gas.

3) Neglecting car maintenance
Car maintenance can be expensive. Oil changes, tire rotations, oxygen sensors, and fuel filters can really add up if you stick to a strict maintenance schedule. But avoiding these items keeps your car out of peak condition. Your car’s engine will burn fuel more efficiently – which means better gas mileage – if you maintain a strict schedule for these items.

4) Ignoring tire pressure
Most vehicles need their tires to be inflated in the 32 to 34 PSI range. This keeps the tire at the appropriate size to perform safely. It also keeps them in condition to perform efficiently in miles per gallon. Tire pressure can change drastically if you don’t watch it. Aim to check your pressure at least once per month.

5) Carrying extra weight
Have you added some weight in your trunk to provide better traction during winter? For starters this may or not prove effective. Even if it does help with traction many people will leave that extra weight in the trunk all year long. Adding weight means it takes more power to move your vehicle. More power means more gas burned.

6) Driving above the speed limit
For most vehicles the optimal speed to highest gas mileage is around 55 miles per hour. If you’re driving at the speed limit of 70 miles per hour you’re already above the optimum range. The higher your speed the further down the miles per gallon curve you travel. Plus you’re risking a speeding ticket, and you’re really not getting to your destination that much faster.

7) Paying interest on gas purchases
Many people use a gas credit card to pay for gas purchases to earn points or cash back. That’s all well and good if you pay the bill off every month. However, one slip up and you’ll find yourself paying interest and financing charges on that gas expense. That’s a great way to waste money on gas.

8 ) Driving alone
Sharing the drive into work with another person could cut your commuting fuel costs in half.  Not only that, if you alternate who drives, it can make your car last longer as well. Of course carpooling is a hassle and it’s no fun having to wait on the other person when they’re stuck late at work.  However, if gas prices go high enough, ride-sharing might start to sound a lot more attractive.

9) Paying convenient prices
It’s easier to go to the gas station close to your home on your way home from work. But that station may have consistently higher prices than other stations that are still in your area. You can use consumer reporting services like Gas Buddy to see where the cheapest reported price is in your area.

10) Driving aggressively
Aggressive acceleration followed by aggressive braking followed by another round of acceleration is a great way to waste money on gas. By driving more smoothly you’ll increase your miles per gallon and save money over time.

 

Posted on March 9th, 2011 in Gas | 11 Comments

Written by Kevin · Filed Under Gas 

Our Home Owner Warranty Claim

Whether or not home warranty companies are worth the money they charge was the question we debated last summer when we bought a house on short sale.  Often when you buy a house you can ask the seller to include a home owner’s warranty as part of the deal, particularly in a buyer’s market. For example, we bought a seller’s warranty for the house we were selling and converted it into a warranty for the buyer when we sold.

Warranty Costs vs Benefits

In our case we were negotiating under the approval of the bank for the short sale and there was no room for the possibility of having a warranty included.  So we had to decide whether it was worth it for us to pay the money for the home warranty.  We had a hard time making the decision, my wife wasn’t crazy about the idea but I felt the cost was worth the potential expense of a major system problem like the air conditioner or furnace going out.  The house was about 10 years old so I could see the air conditioner quitting on us right after we bought it.

Our First Home Owner Claim

We ended up buying the home warranty and haven’t needed to use it until today.  Last weekend our furnace started making a lot of noise and running rough enough that the floor above was shaking so we called up the home warranty company to have someone come look at it.  We couldn’t get ahold of them on the phone but we did go to their website and file a claim online.

Claim Filing Process

For those of you trying to decide if you should buy a home warranty, here’s a look at how the claims process works.  It might vary from company to company but many of the large ones are having you submit a claim online these days.  Some offer the option of letting you file over the phone but you’ll probably sit on hold forever so it’s probably less hassle to do it online.

Keep track of your contract number because you’ll need it to pull up your account and file your claim.  If you don’t have it, they may have a process where you can retrieve it using your name, address, and phone number. 

home warranty claim

Once you’re into the online claim system you’ll choose the type of claim that you’re filing and may be able to enter in some detail about your claim, as shown here.

After going through a verification screen to make sure everything looks right you submit your claim and you’re given a claim number. 

What happens next depends on the warranty company, typically you’re at least sent an email confirmation of our claim.  In some cases you may have to wait for them to contact you, in others you may be given a number to call.

Home Warranty Claim Servicing

Many of the national home warranty companies don’t do the actual service themselves, they have contracts with local companies to do the work on their behalf.  If that’s the case, at this point you’ll get the name and number of a local contractor to call to schedule an appointement.  That’s what happened in our case, I called them up and got a voicemail where I left my home and cell number along with our claim number.

Here’s what they said on the claim confirmation page:

“When scheduling the appointment, please advise the representative that you have a service agreement and provide them with the claim number. The service technician will go to your home to determine the cause of failure and will contact us with their service report. As a reminder, you are responsible for paying the service company for their service call, diagnosis and/or covered work performed up to your deductible amount of $75.00. Please print or save this important information for future reference.”

Is a Home Warranty Worth It?

So far, this part of the claims process has gone relatively smoothly. I was able to submit it quickly and the local contractor called back withn an hour to schedule the appointment for tomorrow afternoon.  We’ll see what happens after they check out the furnace.  Hopefully the repair bill won’t be too large and they’ll honor the warranty.  One thing some home warranty companies are notorious for is doing the least amount of work just to get you back up and running, without paying to fully fix the problem.  Hopefully we won’t run into a situation like that and everything will go smoothly and the warranty will be worth the money we paid for it.

Posted on March 7th, 2011 in Home Owner | 2 Comments

Written by Ben Edwards · Filed Under Home Owner 

How to Spend Money You Don’t Have

If you’ve ever bought a car or a house then you’ve probably spent money that you didn’t have.  Or if you have a credit card you might have paid for something without having the funds to back it up.

A hundred years ago, or even several decades ago, it was pretty difficult to buy something if you didn’t have the money. However, access to credit in today’s economy makes it relatively easy to spend money that you don’t have.

Should You Borrow Money?

We were faced with this decision yesterday when invited to go on a trip with some good friends of ours.  We really wanted to go but we recently visited California for my wife’s birthday so our travel funds were depleted.  Not to mention that I just mailed in the biggest check I’ve ever written in my life to paydown and recast our mortgage.

Even though we didn’t have the money on hand to pay for all the travel, we knew we’d eventually have it.  We could have paid for everything on credit and paid it off later but we make it a habit to pay our credit card bill in full each month so that wasn’t something we were willing to do.  Still, we really wanted to go on the trip so having to tell them that we didn’t have the money was tough.

Of course everyone’s decision making process will be different based on your financial situation but there is one thing that’s true for everyone trying to decide if they should borrow money or not, you should make the decision with care or you might end up regretting it.

Steps to Spending Money You Don’t Have

Here are some high level steps to take if you find yourself looking to spend money you don’t have.

1) Estimate the cost of what you need/want.
2) Figure out how much you can afford to spend.
3) Determine how much money you’re short.

Once you know how much more cash you need you can consider ways to get that amount without borrowing it.
 
4) Look for places you can “find money”.
5) Estimate how quickly you can get the money.

Now you have a feel for what you need and how long it would take to come up with that money.  If you cant wait that long or can’t figure out ways to “find money” (like earning extra money or re-prioritizing areas of your budget) one potential step is borrowing money. 

How you choose to borrow the money can have a big impact on the premium you’ll pay for spending money you don’t have.

6) Determine who you’ll borrow from.
7) Calculate the cost of borrowing the money.

You can get quick and easy access to credit if you have a credit card in your wallet, however, you’ll pay pretty high interest rates until you pay the money back.  One option is to apply for a loan with your local bank or through an online bank where rates can sometimes be cheaper. 

You’ll have to weigh your different options for borrowing the money.  For example, you’ll have to apply and go through a funding process if you choose to borrow from a peer to peer lending site like Prosper or Lending Club.  In contrast, you can get a pay day loan right away but the cost will be a much higher interest rate.

Summary

At the end of these steps you’ll know approximately how much money you need, where you can borrow it from, and what it will cost you. Then you’ll have enough information to decide whether or not it’s worth it to spend money you don’t have.  I hope these tips can help you make that decision.

Posted on March 5th, 2011 in Credit, Debt, Loans | 7 Comments

Written by Ben Edwards · Filed Under Credit, Debt, Loans 

Student Tips for Online Classes

Studying for a online degree has some challenges that you might not see in a regular college classroom.  After sharing her experiences yesterday with an online masters degree and her thoughts on online education, I asked Rishona if she could offer some tips for students who will be taking taking courses online.  Here they are:

1) Make a schedule. For me, I try to have all my readings for that week done by Wednesday. Homework is ongoing, but Sunday is my day to really spend big blocks of time on getting my projects done. So I do not make plans for Sunday; even if nothing is due.

2) Utilize your school email for your courses. Often times the LMS is tied into your school email address, so alerts and course correspondence go there. It is very off-putting to professors and your colleagues if you request that they email another address. Even then, some will either not do this, or flat out refuse.

3) Learn the LMS. Devote some time to learning how to use the features and tools available in your LMS. For example, my graduate school uses ANGEL which has a chat feature. We have scheduled group chats, and invariably someone is 15 minutes late to the chat because they did not know how to access it.

4) Respect group members. If you are working in groups, be mindful of other peoples’ availability and schedules. This does take effort, but it is a must if you wish to collaborate effectively virtually.

5) Be accessible. Being in an online course means that you are available most of the time. For example, if you can’t access the internet while you are at work, that is one thing.  But to tell your professor that you can’t log on because you went on vacation…no go. You will arise little sympathy from anyone by saying that…even if it is true. So here is what you really should do.

  • Buy a laptop. They are so cheap nowadays (like $300), this really should be mandatory
  • Buy a data plan for your cell phone. Even if you don’t have a smartphone, most cell phones have a way to access email on a limited basis. Even if you have to rig your school email to automatically forward to your Yahoo/Gmail/Hotmail account, make sure to due this (in that you’ll be able to at least get email where there is not wi-fi)
  • When you travel, inquire about wi-fi and/or research hotspots. You should treat your studies like a job. Would your boss appreciate you saying, “Oh well there was no wi-fi in my hotel” as an excuse if you were required to access your email while away?
  • Designate your own equipment for your studies. Don’t bank on your husband’s/wife’s/mother’s laptop to do your work.
Posted on March 1st, 2011 in College, MBA | 1 Comment

Written by Ben Edwards · Filed Under College, MBA 

Why an Online Masters Degree?

The value of an online masters degree for your career was something we discussed last year so when I met Rishona Campbell and learned she was halfway through her online masters degree program I wanted to know why she’d chosen to do it online.

I asked if she’d write a little about her experiences – below is what she has to share about why she went with an online degree program and how she’s liked it so far.  Thanks Rishona!

Why an Online Degree?

Well my first experience with online courses was when I went to Broward College in Ft. Lauderdale to take courses simply for my own professional development. I had promoted to the position of “escrow account” at an insurance agency and I had never taken an official college class in accounting ever! I had been out of the college classroom for several years, and was a little bit skeptical when the Intro to Accounting course I took had a textbook that required us to do our homework and tests online.

My only other previous experience with online courses was back in 1999 when I had an engineering course that had a very buggy online test-taking interface. However in 2007, things were very different. Being able to do your homework and tests online and getting instant feedback on areas that you need to work on was invaluable for me. It was like I had my own personal professor.

When the opportunity presented itself to finish my bachelor’s degree, I actually had little choice but to go the online course route due to injuries that I sustained in a car accident. I earned about 30 credits (out of the 128 needed for my degree) online and did not feel that my online educational experience was any less significant than my face to face college courses.

So when I started applying to MBA programs, I wanted a program that was online so that I would not be tied geographically to any one area for 1-2 years. At the same time that I was applying for graduate school, I was also looking for full-time employment so I wanted to keep my options open. I did not really have any major concerns about degree quality; although looking back, it should have been a point that was considered.

Online Masters Degree Benefits

First and foremost the flexibility of an online degree program cannot really be beat. With a full-time job and being involved in several volunteer and professional activities, it is very nice not to have my calendar blocked off by regular class attendance.

Also I believe that online college coursework, especially at the graduate level, really challenges you to be at the top of your game when it comes to written and virtual communication. I think that this gives you a distinct edge in the workplace… where skills in virtual communications and working remotely are not as commonplace as you may think.

Online Masters Degree Downsides

Quality control is a serious issue. I say this both as an online student and as an employee for a university in a department that administers fully online programs. Basically what are dealing with today is that the technology and the needs are there to really have stellar online courses.

However professors are either not adequately trained in regards to online course pedagogy; or they simply don’t care enough to put the work in to make the course as effective as it should be. As an online student, outside of those standard professor evaluations, I feel that I am limited in regards to how to communicate these issues to school administration. Unlike students who are on campus, online students are ‘out of sight, out of mind’ so to speak.

The other con is the ongoing struggle in regards to public perception and online degrees. Many people seem to have passed judgment on online degree programs without ever having taken an online degree course themselves. Going back to the quality control issue, they also (erroneously) believe that if an online course is bad at institution X, then all online courses are bad.

Online classes are subject to the same variances in quality that face to face classes are. In addition, we fight this misconception that ‘online degree’ is synonymous with the for-profit higher education sector…which is then synonymous with ‘low quality’. That logic is flawed in so many ways, and while I have never been a student at a for-profit higher education institution, I would guess that the blanket statement that degrees from for-profit institutions are of a low-quality should be questioned as well.

Online Degree Surprises

I believe that I am in a privileged position in that in addition to being an online student, as I mentioned previously, I also work for a college in an online program. The biggest surprise that I see from both sides is that of missed opportunities. This falls on both the professors and students, in regards to how they view online college studies.

I think that too often, online college courses are seen as an ‘online version’ of a face to face course where your notes and homework are just uploaded to the Learning Management System (LMS). What should happen is that the course be re-designed to cater to the online course delivery medium. When that is done, it makes a world of difference.

I do not regret my decision to pursue a degree online, and I do feel that I can stand right alongside with any other MBA student who obtained their education on-campus. But we still have those instances where students and professors see online courses as ‘the easy way out’; and colleges and universities seeing online courses as ‘easy money’. So that is my biggest surprise; that online learning has not lived up to its fullest potential yet…and even more so, that professors and students of online courses haven’t been more vocal about this.

Online Education Thoughts

In a nutshell, we all should realize that online education on all levels is not going away. It will remain as an option to many college students and will only get more and more attractive as the alumni pool of online degree holders grows. The true challenge we have today is refraining from telling everyone out there that online learning is the panacea to whatever gaps they have in their education. We also need to be realistic in regards to what people should be expecting from online programs; and higher education in general for that matter.

Posted on February 28th, 2011 in College, MBA | 7 Comments

Written by Ben Edwards · Filed Under College, MBA 

QuickBooks Weekend Roundup

We had dinner this weekend with my good friend who prepares the taxes for my business.  I probably should have been at home working on getting together my documents rather than hanging out since I’ve spent the rest of the weekend working on taxes.

Luckily, I use QuickBooks and it makes the task a lot easier.  I looked back and about this time last year I wrote about QuickBooks accounting software and how I used in in my preparation.  Unfortunately, there’s still one complaint I had from last year that’s not corrected, and a new one.

Chase still only lets you download 3 months of transaction history so I couldn’t import most of that data, I had to key it in manually.  I’ve written good things about Chase credit cards but I don’t understand why they limit you to such a limited timeframe of downloads.  My local bank online savings accounts, PayPal, American Express, Vanguard, and every other financial institution I use lets me go back much further than three months – so why can’t Chase?

I also hit a speed bump with PayPal. Although they let you search and download on any data you need, I couldn’t find a way to download PayPal transactions in format that QuickBooks could import.  Which of course meant I had to manully enter all of those as well.  Maybe I missed something but it was a real bummer.  Anyhow, I’ve been cranking out the tax stuff so the list of money posts to check out is shorter this week, enjoy.

Investing

Personal Finance

Carnivals

Posted on February 27th, 2011 in Personal Finance | Comments Off on QuickBooks Weekend Roundup

Written by Ben Edwards · Filed Under Personal Finance 


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