Financial Rules Of Thumb: Saving For College

October 07, 2015

Have you ever heard the rule of thumb that says you should wait 30 minutes to swim after eating? Or don’t leave your Christmas lights up past Martin Luther King, Jr. Day? Perhaps you’ve read some of the arguments both for and against the edict to drink 8 glasses of water per day. And of course, there’s the rule that gets a lot of kids in trouble: question authority. But while these rules may not always ring true, generally speaking, they are good guidelines for getting you through life a little easier. Continue reading “Financial Rules Of Thumb: Saving For College”

Let’s Get Ready To Rumble

September 08, 2015

I had a dad who was a huge fan of boxing. Whether it was appropriate or not, some of my earliest memories are of my trying to understand why he is so excited when people hit each other on T.V. but seems to get upset when I do the same thing to my younger brother. Eventually I got the difference (admittedly, I was a little disappointed, especially when he ripped off the head of my favorite Barbie doll) but I actually started to enjoy boxing and hearing Michael Buffer say, “Lets get ready to rumble.” Continue reading “Let’s Get Ready To Rumble”

Just Say No

August 18, 2015

I am a child of the 80s. I grew up on Happy Days, Falcon Crest, and Family Ties. In between these shows, inevitably a commercial would come on with a child being pressured into using drugs, refusing and looking into camera and saying no. Continue reading “Just Say No”

Should You Sacrifice Retirement to Pay For College Expenses?

April 27, 2015

Should you focus your financial plans on funding your children’s college education out-of-pocket or through parent loans? This is a question on the minds of many parents that I speak with on a regular basis (and also a question that I personally have to deal with having a third grader and a kindergartener growing up too fast). The retirement vs. education question gets even more challenging when children reach high school and the time horizon to save gets shorter. Continue reading “Should You Sacrifice Retirement to Pay For College Expenses?”

Making a New Beginning

January 13, 2015

“For last year’s words belong to last year’s language, and next year’s words await another voice, and to make an end is to make a beginning.”  T.S. Eliot fans may recognize this poem, entitled Little Gidding, that focuses on the unity of the past, present, and future. Although not a well-known poet like Eliot, I’ve been writing my weekly blog posts for the past 4 years. Continue reading “Making a New Beginning”

Doing the Math on College Planning

January 06, 2015

During the holidays, I had so much fun visiting family as did many of my colleagues. So as we all got back into the groove of working, we shared stories of those sometimes amusing family encounters. Tania, our Atlanta-based CFP, talked about how it was wonderful seeing her cousins, who only a few years ago she was bouncing off her knee, now that they are all taller than she is (which isn’t a stretch since she is barely above five feet tall).  Here’s her story: Continue reading “Doing the Math on College Planning”

My Back to School Checklist

August 11, 2014

It is hard to believe that summer is winding down and school is right around the corner. I talk to many other parents this time of year who have a wide range of thoughts regarding the back to school routine. Some ask “where did all of the time go” while others cannot wait to get their cute little monsters out of the house and out of their hair. If you are a parent with school-aged children, you are likely experiencing a similar feeling of disappointment/relief. Continue reading “My Back to School Checklist”

Using Retirement Plan Assets for Education

June 04, 2014

As the school year winds down, many graduating high-school seniors are looking ahead to the promise of a new day come next fall, but for many parents, that day is fraught with mixed emotions—and a handful of college bills. To help pay for college, some parents will set aside money using more traditional ways to save for college expenses. Each has its own set of pros and cons and seldom are parents able to save enough to pay for their student’s entire education. As such, many students will require student loans in order to continue their education. The result is an average student loan debt of just under $30,000. Continue reading “Using Retirement Plan Assets for Education”

Celebrate 529 Day this Thursday, 5/29

May 27, 2014

This Thursday is 529 College Savings Day, a day to raise awareness about the value of planning ahead for college expenses with 529 plans. The general theme is: Don’t panic, plan. Any amount saved in advance can lower amounts that may need to be borrowed for college, trade or technical school down the road.  Continue reading “Celebrate 529 Day this Thursday, 5/29”

Five Myths About Your 529 College Savings Plan

May 21, 2014

As the school year winds down and the invitations to high school graduations start pouring in, I can’t help but think about the day when my own little girl Rachel—who is finishing up her sophomore year—will be sending out her own invitations.  It all seems to be going by so fast but fortunately Susan and I have been preparing for that day by saving in a 529 college savings account.  For some of you moms and dads out there, you too have been using this savings vehicle to help pay for those oncoming college expenses but as Kathryn Flynn writes in a recent post called “Clearing up the confusion: Five popular 529 plan myths,” there are a number of myths floating around out there that could cause confusion when it comes time to using these accounts.  Understanding each one will help you and I when it comes time to funding our child’s higher education. Continue reading “Five Myths About Your 529 College Savings Plan”

4 Ways The CFPB Can Help You With Financial Issues

May 20, 2014

Are you dealing with a challenging financial issue? Whether it’s a decision you need to make or a mess you need to get out of, the Consumer Financial Protection Bureau (CFPB) exists to help. Its mission is “To make markets for consumer financial products and services work for Americans – whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products.” How can the CFPB help you? Continue reading “4 Ways The CFPB Can Help You With Financial Issues”

Are You On a Dying Career Path?

January 24, 2014

I’ve had the opportunity over the holiday break to talk with my daughter about her future. She’s a freshman in college this year and living away from home has been a bit of an adjustment. Another thing that has adjusted a bit is her potential choice of major. Since she was 4 years old, she has been convinced that she wants to teach kindergarten or at least younger children.  As she’s gotten older and had some classroom experience (as an intern during her senior year of high school and through a class in her freshman year of college) she still enjoys the children.  Continue reading “Are You On a Dying Career Path?”

7 Steps for Generation Xers to Reclaim Their Financial Future

January 15, 2014

Yesterday, we provided financial tips for the Baby Boom generation. Today, we take a look at Generation Xers, who are suffering the double whammy of experiencing tough economic times at a particularly vulnerable financial stage of life. While most Millennials were too young to own stocks or real estate during those market crashes, and Baby Boomers enjoyed decades of growth in both assets throughout the 80s and 90s, many Gen Xers had the misfortune of starting their investing just as both markets were peaking. This comes at a stage of life in which a majority of Generation Xers own a home (translate: have a mortgage payment) and have minor children (translate: extra mouths to feed). So if you’re  a Gen Xer, here are some moves to consider: Continue reading “7 Steps for Generation Xers to Reclaim Their Financial Future”

Say NO to Student Loan Debt (Part I)

January 08, 2014

My colleague, Erik Carter, and I just recently finished our 2013 research report on generational financial issues. In this report, we looked at internal and external data to see what Millennials, Generation Xers, and Baby Boomers are dealing with in terms of financial planning. As I began to look further into the lives of Millennials, I was shocked to discover just how much college debt the average graduate carries these days—averaging $35,200 according to a recent Fidelity study. Continue reading “Say NO to Student Loan Debt (Part I)”

“Rules of Thumb” Can Make Financial Planning Simpler

November 13, 2013

One of the many hats I wear around the Financial Finesse office is that of a fact checker.  Before we publish an article or release new content, I am frequently asked to verify any factual information it may contain.  In some instances, the information I am asked to verify is absolute. For example, the IRS has recently released 401(k) and IRA contribution limits for 2014: $17,500 (or $23,000 if age 50+) and $5,500 (or $6,500 if age 50+), respectively. At other times, the information we include in our publications is based on generally accepted financial planning principles—what we typically refer to as “rules of thumb.” Continue reading ““Rules of Thumb” Can Make Financial Planning Simpler”

What’s On Your “Dream Board”?

July 17, 2013

Several weeks ago, I had the pleasure of meeting a young man who emigrated to the U.S. from Africa, and he wanted to know if he was saving enough for retirement.  As I proceeded to ask him the usual questions—when would you like to retire, what kind of lifestyle would you like to have, how much have you already saved — I began to realize that this individual was quite different from most of the ones I talked to.  It turns out that he is already saving 25% of his pay but was able to save more and wanted to discuss his options. Continue reading “What’s On Your “Dream Board”?”

Check Your “Financial” Smoke Detector

October 31, 2012

We all know it’s a good idea to check the smoke detectors once a month to make sure they are working properly, but let’s be honest; how many of us actually do?  If you’re like me, you probably don’t even know the smoke detector is there until you burn the toast.  It’s not that we don’t care about safety (although I do like to live on the edge).  Most likely it’s simply because it’s out of sight and therefore out of mind. Continue reading “Check Your “Financial” Smoke Detector”

What I Learned About College Savings from Being a Hoarder

July 30, 2012

“Is it better to save part of my annual bonus each year for my son’s college or save monthly?” was the question I fielded from a caller to our financial helpline.  The image of seven cameras in my downstairs closet popped into my mind.  You might ask what a pile of cameras has to do with college funding.  A lot actually – in fact the decision making process behind the pile of cameras may be a major determiner of success in saving and investing for college (or any other goal for that matter).  Continue reading “What I Learned About College Savings from Being a Hoarder”

How Risky are Prepaid College Plans?

July 11, 2012

With soaring tuition rates and the increasing importance of a college degree in our economy, prepaid college plans have become popular over the last two decades.  However,  declining returns from the stock market, compounded by the recent financial crisis, have caused a large gap between the funds in these state-administered programs and the escalating costs of state schools.  So what exactly are prepaid college plans and how risky are they? Continue reading “How Risky are Prepaid College Plans?”