Past Issues
March 2005

TEENS & PARENTS

Turning over the keys to the family car can be a stressful time for any parent. Many people think teens are irresponsible drivers. After all, teens make up almost 7 percent of all drivers, yet they account for 14 percent of all deaths from car accidents. However, being a teenager doesn't necessarily mean you're an irresponsible driver.

It's often lack of experience behind the wheel, not age, that puts teens at a greater risk of being involved in or dying in a car accident. The more you practice driving, the better you'll be at handling different situations on the road.

HERE ARE SOME WAYS TO HELP BEAT THE ODDS:

  • Always wear your seatbelt. Buckle up for safety on every trip. Massachusetts has a mandatory seatbelt law, you could get a ticket for not wearing one.
  • Know your vehicle. Use features that make it easier and safer for you to operate your vehicle, such as sun visors, door locks, and parking brakes.
  • Stay alert and be a defensive driver. Tailgating is a stupid reason to get into an accident. Try to keep four seconds of following distance between your car and the vehicle in front of you.
  • Drive sober. Not only are alcohol and drugs illegal, they slow your reactions and distort reality. In fact, they may make you think you're an awesome driver when really you're out of control.
  • Only ride with sober drivers. Forty-five percent of teens who die in accidents are passengers. If you're riding with a driver who has been drinking or doing drugs, you're in danger.
  • Cell phone usage. When  you need to use a cell phone, pull safely off the road. Remember, when you are behind the wheel of a car your focus should be on defensive driving, not making phone calls.
  • Chill. Don't get stressed out. Pretend that everyone else on the road is a close, personal friend.
  • Follow traffic safety rules and don't drive faster than you can handle. Watch your speed!
  • Concentrate on driving. Don't blast music, talk on the phone, eat, study, or put on makeup while you're driving!
  • Be careful when driving friends. Driving friends is a big responsibility. Don't take that responsibility until you're ready.
  • Never let friends drive your car. If they have an accident, you could lose money, car privileges, a friendship-even your life.
  • Use your rear-view mirror to check traffic before and after you brake, every time.
  • The fist step in keeping safe is knowing some of the factors that may cause accidents. We invite parents and teens to sit down together to discuss these statistics.

KNOW THE FACTS ABOUT TEEN DRIVING

  • In 1999, 365,561 15-20 year olds were injured or killed in motor vehicle crashes.
  • 38% of deaths of 16-19 year olds in 1998 from all causes occurred in crashes.
  • 54% of teenage passenger vehicle occupant deaths in 1999 were drivers; 45% were passengers.
  • Among teenage drivers (16-19 years old) 23% of fatally injured male drivers and 10% of fatally injured female drivers in 1999 had blood alcohol concentrations at or above 0.10 percent.
  • 55% of teenage motor vehicles deaths in 1999 occurred on Friday, Saturday and Sunday.
  • 41% of teenage motor vehicle deaths in 1999 occurred between 9pm and 6am.
  • In 1999, nearly 19,000 unrestrained drivers and passengers died in traffic crashes.
  • Seat belts reduce the risk of death for front seat occupants in passenger cars by 45% and the risk of moderate to critical injury by 50%.

Although these statistics are scary and, in some cases, seem to reflect poorly on teen drivers, they are simply facts and figures, not a personal reflection on any one or every teen's judgment. Simply being a teenager does not mean that you are irresponsible or that you're a reckless driver.

What these statistics mean is that teens are at increased risk of being involved in a motor vehicle accident and of dying in an auto accident. Teens need to recognize these facts and understand how to decrease their chances of harm and increase their chances of safe, accident-free driving.

For more additional information, please visit

 www.roadreadyteens.com

 www.ipromiseprogram.com.

 

Resource: Insurance Institute for Highway Safety, October, 2000 U.S. Department of Transportation, National Highway Traffic Safety Administration, Traffic Safety Facts 1999-Young Drivers

 

 


 

THREE TAX-ADVANTAGED INVESTMENT STRATEGIES

To help you meet life goals such as retirement or college savings for your children or grandchildren, here are three possible strategies to consider:

  • Invest and save for your own retirement by maximizing your contribution to a salary-deferral retirement plan (401(k), 403(b), 457 or SIMPLE at work.* In many cases, your employer will match all or part of your contribution, so you will miss a major opportunity if you don't take advantage of this plan. For 2005, retirement plan contribution limits have increased to $14,000 from $13,000 in 2004. Those age 50 and older can contribute an additional $4,000 in 2005.
  • For a child's education, open or contribute to a 529 savings plan. A 529 savings plan is a tax-advantaged way to save for the higher education expenses of a beneficiary you designate. It can be a child, grandchild, spouse, relative or even yourself. Withdrawals--including contributions and earnings--are not federally taxable provided they are used to pay for the beneficiary's higher education expenses. Qualifying expenses include items such as tuition, room and board, and books. Earnings and withdrawals are free from federal tax through 2010--and longer if Congress extends this benefit. However, withdrawals used for anything other than qualifying expenses can be subject to income tax and a 10% federal tax penalty.
  • Contribute to a Traditional or Roth Individual Retirement Account (IRA). You have until April 15, 2005, to contribute $3,000 to an IRA for 2004. If you are age 50 or over, you can contribute $3,500. You can also contribute to an IRA for 2005 any time during 2005--you don't have to wait until the April 17, 2006, deadline. By investing early, you're assuring your continued commitment to retirement savings, lengthening the time frame during which your investment can work for you, and positioning yourself for  the tax benefits that IRAs offer.*

These are just some of the important decisions you face when planning your financial future. You may want to explore other options, as well.

In MassOne Financial Services, you have a partner who can help you choose the direction that's right for you.

We are happy to answer any of your questions regarding investment alternatives.

* Withdrawals from tax-deferred accounts before age 59 1/2 are subject to income tax and, if applicable, a 10% federal tax penalty.

* Check with your employer about the specific contribution amounts for your plan.