Comments on: Upromise underdelivers http://totalcandor.com/blog/2009/04/upromise-underdelivers/ A Conversation About Income, Wealth, and the Steps in Between Sun, 07 Mar 2010 22:10:41 -0800 http://wordpress.org/?v=2.8.5 hourly 1 By: Michael http://totalcandor.com/blog/2009/04/upromise-underdelivers/comment-page-1/#comment-159045 Michael Sun, 03 Jan 2010 18:04:40 +0000 http://totalcandor.com/blog/?p=515#comment-159045 @John: Good point. It's like those of us who spend more money on a credit card because of the points or cash back. If you're going to spend that amount anyway, great. But if it causes you to spend more, you'd have been better off without the spending and without the rewards. On average, consumer lose - or they wouldn't keep throwing rewards our way, right? @John: Good point. It’s like those of us who spend more money on a credit card because of the points or cash back. If you’re going to spend that amount anyway, great. But if it causes you to spend more, you’d have been better off without the spending and without the rewards. On average, consumer lose – or they wouldn’t keep throwing rewards our way, right?

]]> By: John http://totalcandor.com/blog/2009/04/upromise-underdelivers/comment-page-1/#comment-158916 John Fri, 01 Jan 2010 16:06:42 +0000 http://totalcandor.com/blog/?p=515#comment-158916 Michael, I too believe that Upromise is more of a hype than a help. I had an account with them trying to get some help paying down my student loan. I have spent thousands of dollars on their partners and yet I have only 63 cents to show. And not all their partners really participate. For instance I bought a home and my Realtor was on the list yet they said oh it is only if you buy a specific home at a specific dollar amount, blah blah blah. I am just wondering how much money these people spent who said that they have lots of money from Upromise? I bet they have spent even more and they are forced to buying items only from their specific vendors which you said you did. So who is the winner here? Definitely not the consumer. It is the partners and Upromise who share in the profits. Instead of signing up for them and hoping you will get money, stick that money you were going to purposely spend on a specific product into a savings account. What I mean is you spend $40 on Pampers when you could spend $30 on Huggies and save that $10 in a savings account. Now add that to the interest you for 90 days because that is the average time that it is posted to your Upromise account, you will net approx $10.03 at 1.25% interest. How much did Upromise and pampers give you? I am guessing 40 cents. So let’s look at the bottom line here. Would you rather have $10.03 or $0.40 saved toward your child’s college? Now you know why Upromise sucks. Michael, I too believe that Upromise is more of a hype than a help. I had an account with them trying to get some help paying down my student loan. I have spent thousands of dollars on their partners and yet I have only 63 cents to show. And not all their partners really participate. For instance I bought a home and my Realtor was on the list yet they said oh it is only if you buy a specific home at a specific dollar amount, blah blah blah. I am just wondering how much money these people spent who said that they have lots of money from Upromise? I bet they have spent even more and they are forced to buying items only from their specific vendors which you said you did. So who is the winner here? Definitely not the consumer. It is the partners and Upromise who share in the profits. Instead of signing up for them and hoping you will get money, stick that money you were going to purposely spend on a specific product into a savings account. What I mean is you spend $40 on Pampers when you could spend $30 on Huggies and save that $10 in a savings account. Now add that to the interest you for 90 days because that is the average time that it is posted to your Upromise account, you will net approx $10.03 at 1.25% interest. How much did Upromise and pampers give you? I am guessing 40 cents. So let’s look at the bottom line here. Would you rather have $10.03 or $0.40 saved toward your child’s college? Now you know why Upromise sucks.

]]> By: Michael http://totalcandor.com/blog/2009/04/upromise-underdelivers/comment-page-1/#comment-132775 Michael Fri, 17 Apr 2009 22:53:33 +0000 http://totalcandor.com/blog/?p=515#comment-132775 @Diana: Thanks for your questions which certainly have identified the need for a near-future blog post all about 529s! To answer your questions: Yes, you can start before you have children. To do so, initially identify yourself as the beneficiary and then switch it to your child after he/she is born. Contributions aren't deductible for federal tax purposes but may be, up to some limits, on your state return. (This varies by state). There may be other state level incentives as well. Assuming you use the funds for college expenses, you'll never pay taxes on earnings made within the 529 plan (so it's actually better than tax-deferred, it's tax-free!) @Diana: Thanks for your questions which certainly have identified the need for a near-future blog post all about 529s! To answer your questions:

Yes, you can start before you have children. To do so, initially identify yourself as the beneficiary and then switch it to your child after he/she is born.

Contributions aren’t deductible for federal tax purposes but may be, up to some limits, on your state return. (This varies by state). There may be other state level incentives as well.

Assuming you use the funds for college expenses, you’ll never pay taxes on earnings made within the 529 plan (so it’s actually better than tax-deferred, it’s tax-free!)

]]> By: Diana http://totalcandor.com/blog/2009/04/upromise-underdelivers/comment-page-1/#comment-132758 Diana Fri, 17 Apr 2009 21:18:02 +0000 http://totalcandor.com/blog/?p=515#comment-132758 I'm just wondering when someone can start a 529 plan? Do you start one when you have a kid, or can you start one before you have one? I heard from a friend that if you start a 529 plan, it is tax-deductible up to a certain amount and remains tax-deferred even when you use for your kid's college expenses...? I’m just wondering when someone can start a 529 plan? Do you start one when you have a kid, or can you start one before you have one? I heard from a friend that if you start a 529 plan, it is tax-deductible up to a certain amount and remains tax-deferred even when you use for your kid’s college expenses…?

]]> By: Michael http://totalcandor.com/blog/2009/04/upromise-underdelivers/comment-page-1/#comment-132694 Michael Fri, 17 Apr 2009 14:47:21 +0000 http://totalcandor.com/blog/?p=515#comment-132694 @Evan: I'm glad you were able to avoid a personal attack in your first ever post to this blog. It's also refreshing to see that your work experience includes three years at Upromise, making you an unbiased participant in this discussion. Also, thank you for taking the time to carefully read my post above which clearly indicates that, while there's nothing wrong with Upromise, it's not the answer to your college funding prayers. Similar enough to your own concluding comment (the one before your final sarcastic remark)? I'm thrilled that many people, including you, can get some money for the future college education of your children for the purchase behavior you do ordinarily. In addition, you appear to enjoy taking surveys for Upromise compensation - great. My point (and yours best I can tell) is that it's going to add marginally at best to your ability to pay for college. Upromise is a nice little side-perk - nothing more. I talk to a lot of people who previously believed it was doing far more and I'd rather alert them to reality now even if it offends your loyalty marketing platform a wee bit at the same time. @Evan: I’m glad you were able to avoid a personal attack in your first ever post to this blog. It’s also refreshing to see that your work experience includes three years at Upromise, making you an unbiased participant in this discussion. Also, thank you for taking the time to carefully read my post above which clearly indicates that, while there’s nothing wrong with Upromise, it’s not the answer to your college funding prayers. Similar enough to your own concluding comment (the one before your final sarcastic remark)?

I’m thrilled that many people, including you, can get some money for the future college education of your children for the purchase behavior you do ordinarily. In addition, you appear to enjoy taking surveys for Upromise compensation – great.

My point (and yours best I can tell) is that it’s going to add marginally at best to your ability to pay for college. Upromise is a nice little side-perk – nothing more. I talk to a lot of people who previously believed it was doing far more and I’d rather alert them to reality now even if it offends your loyalty marketing platform a wee bit at the same time.

]]> By: Evan Weisenfeld http://totalcandor.com/blog/2009/04/upromise-underdelivers/comment-page-1/#comment-132691 Evan Weisenfeld Fri, 17 Apr 2009 14:36:19 +0000 http://totalcandor.com/blog/?p=515#comment-132691 Michael- I have to say that for someone who was involved and aware of Upromise and how the program works I am disappointed in you. Upromise isn't about being passive and expecting money to show up in your account. Upromise is about leveraging your spending and making intentional choices as a way to grow your account balance. I personally have over $5,000 in my account in about the same time period since you joined. When I shop online I start at Upromise. When I dine out I try to use Upromise restaurants. I take surveys through eRewards and have earned over $150 alone in the past year. Upromise isn't the holy grail in college savings but it can be a great way to earn money for things you would have done but are now doing a bit differently - doing them with Upromise's partners. So in my opinion, it isn't Upromise that underdelivers, it is you. Michael-

I have to say that for someone who was involved and aware of Upromise and how the program works I am disappointed in you. Upromise isn’t about being passive and expecting money to show up in your account. Upromise is about leveraging your spending and making intentional choices as a way to grow your account balance. I personally have over $5,000 in my account in about the same time period since you joined. When I shop online I start at Upromise. When I dine out I try to use Upromise restaurants. I take surveys through eRewards and have earned over $150 alone in the past year. Upromise isn’t the holy grail in college savings but it can be a great way to earn money for things you would have done but are now doing a bit differently – doing them with Upromise’s partners. So in my opinion, it isn’t Upromise that underdelivers, it is you.

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