Lost Focus: Planning Your Finances

December 10, 2010

Sometimes we just don’t want to look in the mirror and ask ourselves tough questions.  I had one of those moments recently.  I was going to a football game and the line outside of the stadium was incredibly long.  It took 40 minutes to get inside the stadium when it usually takes 5-10.  If we were going to get to our seats in time for kickoff, we were going to need to really hustle.  Sitting in the upper deck, in a stadium without escalators, can be a challenge.  I have seen a lot of people heading toward my section stop at a halfway point (it’s almost a legitimate cardio workout just getting up to our seats!) to catch their breath.  I got to my section and realized that I was breathing heavily and felt very tired and out of shape.  It was at that moment that I had to ask myself the question “Have I lost my focus?” Continue reading “Lost Focus: Planning Your Finances”

Auto Expenses: Always Look for the Best Deal

December 09, 2010

My daughter texted me the other day (because that’s what they do) just to check in and let me know how college life is going.  Everything was fine with one little exception; all four tires on her car were officially like her Dad’s head, bald.  Now of course she told me that she would figure out a way to pay for new ones, even if it meant she would have to drive on “baldies” for another month.  I immediately let her know that while I appreciate her being financially independent, I also would like to keep her around for awhile (it’s okay to ask Dad for help!).  I think she actually texted back a sigh of relief. Continue reading “Auto Expenses: Always Look for the Best Deal”

Commit to Save and Retire Early

December 08, 2010

I just got back from a business trip where I sat down with employees to do some one-on-one financial planning.  The main focus for the majority of the participants was retirement planning.  I met with some employees who were just a few months out of college, and others who were a few months from retirement, so I’d like to share some of the perspective I gained during the trip. Continue reading “Commit to Save and Retire Early”

The Hidden Evils of a Hardship Withdrawal

December 07, 2010

I recently received a call from an employee who was considering a hardship withdrawal.  If you handle these requests as part of your many HR tasks, you probably see an uptick in these calls during the holiday season.  Tammy, a single mom, was seeking a solution to paying off her credit card debt and felt that tapping her retirement fund could be an easy fix.  Now we all know that paying off debt is not an acceptable hardship based on the IRS’s definition of an immediate and heavy financial need but many employees will simply say the money is needed for avoiding eviction or another acceptable hardship when in fact their intent is to use it to pay off credit card debt. Continue reading “The Hidden Evils of a Hardship Withdrawal”

Danger Spots when Getting Rich Quick!

December 03, 2010

When I read the article, Getting Rich Quick: True Tales of Overnight Millionaires, I had a few thoughts (which means that I’ll probably write mores blogs about it).  The first thought was, “All I need is that one great idea and I’ll be in the ranks of overnight millionaires.”  Then, I thought about how long it takes to be an “overnight success,” and how many instant millionaires (lottery winners, recipients of lawsuit proceeds, inventors, etc.) I have seen during my career and how many have blown through the money as fast as they received it.  Getting “rich” is difficult, but staying there is even harder. Continue reading “Danger Spots when Getting Rich Quick!”

Coupons: Money Saver or Scam?

December 01, 2010

I’ve seen a lot of buzz recently about saving money by cutting coupons, and so I approached my wife with the idea and let me just say it wasn’t quite the reaction that I was expecting.  I mean I figured there would be a little push back, but after 30+ minutes of heated discussion, I felt that I had to defend the holdouts to the coupon revolution (and thus regain my moniker as “The Rebel”).  Now I confess, I don’t know exactly what is involved in “couponing,” but I’m pretty sure it has something to do with saving money, and that is what piqued my original support for the cause.  So here’s how it went down: Continue reading “Coupons: Money Saver or Scam?”

Financial Education: Confessions of a Coupon Hater

November 29, 2010

Boy did I get an education.  Have you ever had one of those experiences where you realize that you have based a huge aspect of your life on a lie?  Well I guess that is a bit strong to say a lie but at least incorrect or wrong information?  I suspect this happens to many people – especially to those who are introspective.

I thought coupons were a waste of time. My thinking went along these lines:

“Really?  I am going to spend hours going through the Sunday paper to save 50 cents on a can of tuna?  Is that really worth my time?  It is a better use of my time to spend that hour working on a project to increase my income and enhance a bonus at work than to save 35 cents on a toothbrush.” Continue reading “Financial Education: Confessions of a Coupon Hater”

Financial Blind Spots Can Come Back to Haunt You

November 26, 2010

Spoiler Alert:  Watch this video before reading this blog:

[YouTube video: Selective Attention Test]

There are a few reasons that I found this video particularly interesting (which means I’ll probably talk about it in a few blogs).  The first thing that struck me was the concepts of “blind spots.”  When I watched the video for the first time I didn’t see the gorilla.  How in the world can a gorilla walk across the screen, do a little dance, and go unnoticed?  I was so focused on the task at hand (counting the passes by the white shirted players – and I was able to correctly count the number of passes), that I missed something as blatantly obvious as a gorilla on the screen. Continue reading “Financial Blind Spots Can Come Back to Haunt You”

Finding Money for the Holidays

November 25, 2010

Can you believe the holidays are upon us already?  A joyous time of year can also be the cause of undue financial stress if we don’t plan for it.  Luckily I learned the lesson of socking some money away to prepare for the lavish gifts I bestow on others (sarcasm intended).

So I figured,  what a great “gift” to give all the faithful blog readers, some tips on preparing for not just the holidays but really any major purchase, like that big screen tv you want! Continue reading “Finding Money for the Holidays”

4 Steps to Take if You are the Victim of Identity Theft

November 24, 2010

“Hello, Mr. Ward?  This is your credit card company.  We just wanted to know if you have purchased gas in Terra Haute, Indiana, recently.”

Does this sound familiar?  Every year thousands of debit and credit card numbers are stolen and sold over the internet.  Sometimes your card issuer is able to catch the unauthorized use early, as was the case in my particular instance.  Other times you start receiving strange things in the mail.  One recent caller began receiving merchandise he never ordered.  There are a few steps you should take when you suspect that your card number has been compromised: Continue reading “4 Steps to Take if You are the Victim of Identity Theft”

Finance as a Second Language

November 23, 2010

The ABCs of finance includes an alphabet soup of financial jargon and lingo that can be as confusing as a foreign language for some employees.  Starting with abbreviations like APR, BRIC, ETFs, FSAs, HSAs, IRAs, and ending up with terminology like zero coupon bonds, it is no wonder that many employees give up on trying to figure out how to translate their benefits and investment options.  It gets really confusing for employees that have a spouse that works for a government agency or a non-profit since the spouse’s 401(k) might actually be called a 403(b) or TSA.  Continue reading “Finance as a Second Language”

Credit or Debit – Your Dependent Care Costs

November 16, 2010

Paper or plastic?  Credit or debit?  Common questions you hear at the grocery store, but do you consider what is the best way, credit or debit, when it comes to paying for dependent care?  I don’t mean actually charging the cost to a credit card – what I am referring to is whether to take the tax credit at the end of the year on your tax return, or to have the funds withheld (debited) pre-tax from your payroll using the Dependent Care Expense Account.  The best answer to this is based on what your marginal federal tax bracket is. Continue reading “Credit or Debit – Your Dependent Care Costs”

“Behavioral Judo” – Don’t Stop at the Minimum Auto-enrollment

November 15, 2010

I never practiced Judo but I’ve been on the receiving end where I said, “What just happened here?  Why am I flat on my back on the mat?”  That is what happens when you are the mother of three boys!  Judo practitioners use the opponent’s motion to keep them going in the direction they are going and in the case, take them down to win a match. Continue reading ““Behavioral Judo” – Don’t Stop at the Minimum Auto-enrollment”

Big Incomes, Big Debts, Big Accomplishments

November 12, 2010

I have noticed a pattern in my blog writing, and it’s that I notice behaviors and decisions that people make and most of the things I’ve pointed out recently have been about bad decisions.  I guess I have followed the lead of the news media and have only been reporting on bad news, in the hope that we can all learn from other people’s mistakes.  Here is a good news story for a change of pace. Continue reading “Big Incomes, Big Debts, Big Accomplishments”

A Lesson in Perseverance

November 11, 2010

Recently I was conducting retirement workshops and individual meetings at one of our client’s work sites.  Nothing odd about that since THAT is what my job entails!  But it was this particular client experience that added a special joy to me.

The employees at this site had recently gone through a very difficult time financially.  The company had to bring down the work schedules of the employees to the point where they basically were working one week a month.  I need not tell you that a schedule reduction like that would certainly impact a worker’s finances.  Continue reading “A Lesson in Perseverance”

Hopping the Hurdles Toward Retirement (the series)

November 10, 2010

When it comes to saving money for retirement, the sooner you can save the better.  But that’s not always possible.  There may be circumstances in your life that prevent you from being able to save when you are younger, and as a result you get a late start.  In this week’s blog I’ll address what things may need to be done when faced with the challenge of a late start.

Hurdle #4: Late Start Continue reading “Hopping the Hurdles Toward Retirement (the series)”

More is ALWAYS Better…(or is it?)

November 05, 2010

I saw the movie “Supersize Me” recently.  (Yeah, it’s been out a long time and I’m just now getting around to it!  But I HAVE seen every Disney and Pixar movie made in the last 10 years.)  One part of the message that I heard in the movie was that “We’re Americans! Bigger is better!!!”

The “bigger is better” mentality permeates our society, and excess is often rewarded.   Just look at any Red Carpet event and the attention heaped on celebrities for proof.  But, can this culture of excess be a bad thing financially?  I think so. Continue reading “More is ALWAYS Better…(or is it?)”

So What Kind of Life Insurance Do I Need?

November 04, 2010

Lately I’ve been approached a lot from workshop participants and they have asked a common question, “Do I have the right kind of life insurance?”  Now this isn’t an odd question by any means but I was wondering why all of a sudden this has become a hot button.  Was there a sale on life insurance I wasn’t privy to?  Was there a mass life insurance agent licensing I was unaware of?  Whatever the case, it was up to me to quickly let my workshop participants know what to look for in making an informed life insurance decision. Continue reading “So What Kind of Life Insurance Do I Need?”

Which Table Will Your “Kids” Sit at for Thanksgiving?

November 02, 2010

Looking at my family Thanksgivings back in the day, there were usually 2 tables – you sat at the kid’s table until you graduated from high school, then you got bumped up to the adult’s table.  It was considered a rite of passage and a privilege to finally be considered an adult.  Continue reading “Which Table Will Your “Kids” Sit at for Thanksgiving?”

A Gift is Still a Dollar

November 01, 2010

Why do we tend to splurge on a bonus check or birthday gift check?  Why do gamblers who just won a jackpot go across the street and buy a Rolex watch – something they never would have done otherwise?  Traveling back East today, I am reading, Why Smart People Make Bad Money Decisions by Gary Belsky and Thomas Gilvoch.  The book essentially enlightens us about human nature and how it relates to money and what we can do about it.  I learned a few new things and validated some things I already knew. Continue reading “A Gift is Still a Dollar”