Roth IRAs and some more quick-hit advice

Here are a few more financial quickhitters.

First, Roth IRA accounts.

We have talked in the past about the wisdom of opening a Roth IRA account for a young person. As a follow up, according to Bankrate.com, if you contribute $9 per day (remember that magic ending in 9 behavioral economics finding) starting at age 20, you will have $1 million at retirement. It's $3,285 a year, but the numbers still more than work.

Credit card debt

Second, what are you willing to go into credit card debt for? We have talked about not going into credit card debt for wants, wishes, luxuries and conveniences, adding to our record $1.13 trillion in credit card debt. On the other hand, we have also talked about having a splurge line in your budget for spending any real disposable income, once you have that comprehensive financial plan in place.

That said, a recent Bankrate.com survey found that 38% of Americans were willing to go into credit card debt for what it described as “splurging.“This included 27% for travel, 14% for dining out and 13% for sporting events, and/or concerts and/or theater events.

Perhaps not surprisingly, Gen Zers (ages 18-27) and millennials (ages 2843) are significantly more likely than Gen Xers (ages 44-59) and baby boomers (ages 60-77) to spend more on travel, with 44% of Gen Zers and 37% of millennials saying they plan to spend more, compared to 20% of Gen Xers and 24% of baby boomers.

Conflicts of interest

Third, even fee-based financial advisers can have conflicts of interest.

The increased popularity of feebased financial advisers, rather than those whose compensation is from commissions, is because, in theory, this would reduce conflicts of interest, since buying and selling investments in order to earn commissions, may, or may not, be in the client's best interests.

However, there can still be potential conflicts of interest. For example, reducing the value of your managed account, which means less fees, in order to pay off your mortgage, buy a new car, help a relative buy a house, start a business or get an education, presents a potential conflict.

It doesn't mean the adviser will act against your best interests, it is just important to be conscious of the possibilities.

Cash is king

Fourth, cash is king. There was only $7.50 in savings by using cash to avoid those credit card surcharges in New York City recently.

It may not seem like much, but for a frugal person like me, I know I have to bring back 150 bottles to get that $7.50. Bottom line, carrying cash that you got from your own bank so that you don't pay those $5 plus ATM fees, can save you some of those surcharges, which some readers tell me they are seeing more often, especially in their travels.

Student loan debt

Fifth, forgiving student loan debt. We have talked a lot about this, but the administration keeps coming up with new forgiveness programs, which keeps the issue in the news.

When I am around town and mention that I do financial education in the schools, I am continually amazed at how many, primarily older people and businessmen especially, tell me that they are against that forgiveness. They always describe themselves as hardworking taxpayers.

It sometimes changes, when we get into the details of forgiveness programs for those doing “public service” after a period of payments. It is also interesting that no one has ever told me that my idea of only making future loans directly to the schools on a non-recourse basis to taxpayers, rather than to students, forcing the colleges to have “skin in the game,” is a bad idea.

Finally, they are more and more aware of the trade options that many more students are pursuing, in large part because the media is now even doing specials on the subject, in addition to regular reporting.

Financial scams

Sixth, consumer financial scams. These are increasing, so it is important, as we have discussed, to be aware of them, and then take steps to minimize the chances that you will be a victim of any of them. One of the currently increasing scams is check washing, which is up 385%. There was even a recent article in this newspaper about it, which a regular reader sent to me and suggested that I revisit some of these scams. That said, I will take that advice and address some of them, again, in the next column.

Beyond check washing, there is now a “check cooking” scam. As described at aarp.com, “Last year, the big thing was check washing, where thieves stole paper checks from postal boxes, mailboxes or even carriers and then washed the checks with chemicals, keeping the signature but erasing the amount and the payee so they could fill in a new name and amount. But now, they've discovered a less messy way to steal. In check cooking, thieves take a digital picture of a stolen check and then use commercially available software to alter it. Then criminals print a new phony check or else just deposit the altered image using a bank's mobile app.

How to stay safe: Consider using a safer payment method, such as a credit card. But if you choose to write paper checks, scammers still need to steal a physical copy. Make it harder for them. Instead of putting the check in a mailbox, drop it off directly at the nearest post office. And continually monitor your checking account and watch for any suspicious transactions.

Hyper-consumerism and a laugh

Seventh, hyper-consumerism. When there are 50 plus people in line outside the Lego and Nike stores in Times Square in New York City, you can witness it first-hand. Last, a little financial humor. I like to think of myself as the king of dad jokes. Often, when I tell them in public, people will say, “It sounds like something you would put in your column.” Maybe that is my legacy.

That said, Why did the cartoon character have bad credit? It was overdrawn!

John Ninfo is a retired bankruptcy judge and the founder of the National CARE Financial Literacy Program.