Should You Buy Life Insurance as an Investment?

August 21, 2014

In response to this article we published on Forbes, we received this question on our Facebook page:

I recently read your article “Should You Use Life Insurance as an Investment?” on Forbes. I wanted to know how this article would apply to me. I just graduated and started my first job that pays pretty well. I don’t have any dependents so I didn’t think about life insurance until I meet with a financial advisor. He said starting insurance young is a better investment where I could keep safe dollars and be more risky in other parts. Would I be better off buying insurance now and benefiting from compound interest or use that money in other investments? Thanks! Continue reading “Should You Buy Life Insurance as an Investment?”

What Old School Insurance Sales Reps Won’t Tell You

August 01, 2014

I will admit that I own life insurance…lots of it. If a meteor were to fall from the sky and incinerate me today, my kids would benefit tremendously from a financial standpoint. They’d miss the wisdom (yeah, that’s what we’ll call it…) that I could pass down to them over the next 50+ years but they’d be OK financially.  Continue reading “What Old School Insurance Sales Reps Won’t Tell You”

4 Ways to Plan For Long Term Care

July 30, 2014

According to the American Association for Long-Term Care Insurance, over 70% of long-term care insurance policies are applied for after age 54. Maybe it happens after the kids leave the nest or perhaps when other goals like retirement are realized but I believe most people don’t start thinking about long-term care until they’ve experienced it through someone else.  I’ve had my share of experience dealing with long-term care but my most recent encounter with Patty Smith (name changed to protect the innocent) has made me realize why it is so important to plan for long-term care before it is too late. Continue reading “4 Ways to Plan For Long Term Care”

3 Alternatives to Borrowing From Your 401(k)

July 10, 2014

Last week, I wrote about some reasons it might actually make sense to borrow from your 401(k). After all, there’s no credit check and the interest goes back into your own account.  But even in those situations, there may be better options. After all, borrowing from your 401(k) means your money isn’t growing for retirement, the money generally has to be paid back over a relatively short 5 year period, and the outstanding balance could be subject to taxes and penalties if you leave your job. Here are three alternatives along with their pros and cons relative to a 401(k) loan and a couple of sites you can use to find them: Continue reading “3 Alternatives to Borrowing From Your 401(k)”

What’s Your PDQ?

July 01, 2014

What is the risk to losing your most valuable resource – your ability to earn an income?  That’s what the Personal Disability Quotient (PDQ) calculates based on your own chance of becoming sick or injured for an extended period of time and missing work (and your paycheck).  The PDQ calculator, sponsored by the Council for Disability Awareness (CDA), only took me a minute to complete and mine came up with a PDQ of 18%.  That means I have an 18% chance of becoming sick or injured and not being able to work for at least 3 months.  What was really scary to me is if I did become disabled for more than 3 months, there is a 43% chance that I’d be out of work for over 5 years, with the estimated average of 86 months for a long-term disability for someone like me.    Continue reading “What’s Your PDQ?”

When is Borrowing From Your 401(k) a Good Idea?

June 20, 2014

If you ask most financial planners when is the best time to borrow money from your 401(k), the overwhelming answer will be “NEVER”! And, for the most part, I agree with that. But, like almost every rule, there are exceptions.  Continue reading “When is Borrowing From Your 401(k) a Good Idea?”

Lessons From a Visit to Urgent Care

June 11, 2014

We all know that the cost of medical care is going up, but my colleague’s recent trip to urgent care really opened my eyes to just how much.  The good news is that she is okay, but what she learned about the current state of the healthcare industry should make us sit up straight and take notice.  Here is a brief overview of what happened: Continue reading “Lessons From a Visit to Urgent Care”

Should I Keep My Emergency Funds in a Roth IRA?

June 09, 2014

In last week’s blog post, we examined the flexibility of Roth IRAs. Perhaps the most appealing feature of Roth IRA accounts is the tax-free growth of earnings. If you expect to be at the same or a higher tax bracket, the Roth IRA is definitely worth considering based on the prospects of future tax savings. Even if you don’t have a strong opinion as to where your future income tax bracket will be when you need access to your funds, it may prove beneficial to have this added feature of tax diversification. Continue reading “Should I Keep My Emergency Funds in a Roth IRA?”

Should a Roth IRA Be Part of Your Emergency Safety Net?

June 02, 2014

Roth IRAs are increasingly becoming one of the most popular savings vehicles for retirement. The most appealing feature of the Roth IRA is that these type of retirement accounts offer tax-free withdrawals of earnings at age 59 ½ as long as the account has been open for at least 5 years. The term “tax-free” is quite appealing in the current economic environment where higher future income tax rates appear to be a real possibility. Millennials and Gen Xers, who may not be in their peak earning years, may be particularly prime candidates to contribute to a Roth IRA. Perhaps that is one reason why the growth in Roth IRAs far outpaces that in traditional IRAs as more account owners are choosing to use after-tax dollars to save for retirement to receive the tax break during retirement.  Continue reading “Should a Roth IRA Be Part of Your Emergency Safety Net?”

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”

5 Unconventional Truths?

April 24, 2014

A coworker of mine recently forwarded me a mass email from Ramit Sethi, author of I Will Teach You to Be Rich, about what he claims are five “unconventional truths” that go against conventional personal finance advice. Since one of the themes of my blog is being a bit unconventional, I was curious about how much I agreed with these “truths.” Here they are with my thoughts: Continue reading “5 Unconventional Truths?”

Don’t Believe Everything You Hear

April 18, 2014

Over the last few weeks, I keep hearing that women are paid only 77% as much as men and that claim boggles my mind. My first thought when I hear that is “businesses should fire every man working for them and hire women at a discount.” Apparently, I’m not the only one that wonders about the implications of that oft-repeated statement.  A Wall Street Journal column wonders the same thing.  It’s an interesting read, and clarifies some of the numbers that don’t get nearly as much press. But most people I know, when asked (and I’ve asked a few people today), know the 77% statistic because it’s repeated in the news so often. That made me wonder: “what other things do we “KNOW” that aren’t really as simple as the “fact” that gets repeated very often? Continue reading “Don’t Believe Everything You Hear”

What Should You Do With Your Tax Refund?

April 17, 2014

If you’re like the average American, you’re getting a tax refund of about $3k this year. So what should you do with that nice windfall? Here are some things to consider before blowing it all on a random shopping spree. Continue reading “What Should You Do With Your Tax Refund?”

Seriously, Mickey Rooney???

April 11, 2014

Since the time I was a kid (and my kids would tell you that’s a LONG time ago…), I’ve seen movies with Mickey Rooney on the screen.  He was probably one of the most recognizable men in America for a long period of time.  He was a major Hollywood star.  And he was always working.  Continue reading “Seriously, Mickey Rooney???”

5 Reasons to Contribute to a Roth IRA in the Next 5 Days

April 10, 2014

April 15th is just a few days away and while most people think of it as tax day, it’s also the deadline to contribute up to $5,500 (or $6,500 if you’re over age 5o or over) to a Roth IRA for 2013. Why is this so significant? Well, here are 5 reasons it’s a good idea: Continue reading “5 Reasons to Contribute to a Roth IRA in the Next 5 Days”

The Deadline to Reduce Your Tax Bill is Approaching

March 24, 2014

Time is running out to stay off of Uncle Sam’s naughty list and complete those income tax returns prior to the April 15th deadline. (Even if you choose to file an extension until October 15, 2014 taxes are still due by April 15 to avoid paying interest and penalties.) Beyond making sure you aren’t missing out on any itemized deductions or tax credits, there are still some moves you can make to reduce your tax bill or increase your refund. Last minute contributions to deductible IRAs and HSAs are two effective strategies to lower your 2013 tax bill (or increase your refund). Continue reading “The Deadline to Reduce Your Tax Bill is Approaching”

How to Make the Financial Planning Process Work for You

March 10, 2014

I get the unique opportunity to speak with employees taking part in our Ask-A-Planner consultation service offered through their employer as a financial wellness benefit.  Every session is unique and last week was no exception. One moment I was meeting with a recent college grad feeling overwhelmed with student loan debt and a few minutes later, I was talking with a parent trying to save for their kid’s college without overlooking their own retirement savings.  A conversation about establishing an income plan for retirement quickly transitioned to an emotional discussion about the death of a loved one and concerns about protecting one’s family through a well-crafted estate plan.  Continue reading “How to Make the Financial Planning Process Work for You”