Is Your Financial House in Order?

December 23, 2010

Being the holiday season and my wife and I being the festive people we are, we were taking part in the age old tradition of trimming our tree to make it as decorative as possible. Everything seemed the same as prior years – same size tree, some friends over to help, holiday tunes playing, and my wife lovingly asking why I don’t put more lights on. There was one thing different though and that was the fact that all the ornaments were in special containers which made it very easy to decorate the tree but more importantly, easy to put away. Every ornament in its rightful spot, nice! Continue reading “Is Your Financial House in Order?”

4 Steps to Take Now so Tax Cuts Don’t Affect Your Retirement

December 22, 2010

Have you seen the news lately? The president has announced his support of an extension of the Bush-era tax cuts, but there are some other tax cuts in the fine print that may hurt your retirement. The proposed legislation includes a 2% reduction in Social Security taxes. Say what?!? Isn’t Social Security in enough trouble? According to the Congressional Budget Office, Social Security expenditures have EXCEEDED tax revenue for the first time ever this year. The fund itself is expected to run out of money by the year 2037. So what can you do in response to this potential derailment in your future Social Security benefits? Continue reading “4 Steps to Take Now so Tax Cuts Don’t Affect Your Retirement”

3 Actions to Take in an Hour to Build Wealth

December 20, 2010

It’s very obvious to my friends and family that luck plays a dominant part in our fantasy football league. Why? Because I am tied for second place and will possibly make the play offs. Everyone knows that I am not skilled enough to even determine if I am getting the wool put over my eyes on a basic trade and truthfully, I don’t know the difference between a wide receiver and a tight end. Last year during my first season, my team finished dead last. Continue reading “3 Actions to Take in an Hour to Build Wealth”

Get Rich Quick, or Not so Fast?

December 17, 2010

In my blog, Danger Spots When Getting Rich Quick!, I talked about a few ways to STAY wealthy when people become millionaires overnight. While becoming a millionaire overnight sounds really exciting and fun and maybe even a little glamorous, it’s not how most of the millionaires I have met during my career have become wealthy. OK, so if that’s not how they got there, what have they done? Continue reading “Get Rich Quick, or Not so Fast?”

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”

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!”

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”

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”

“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”

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?”

The Blame Game

October 25, 2010

In our office we have these fake motivational posters because we all have a very odd sense of humor (starting at the top I might add). We don’t need the real motivational posters because our company hires motivated people. The one above the desk where I sit says, “The secret of success is knowing who to blame for your failures.” I know. It is hilarious. Different ones are all over the office all with beautiful pictures so they look real until you read the captions.

The reason this comes to mind is my caller last week, who had so many financial problems, didn’t know where to start and certainly had some people to blame. Continue reading “The Blame Game”

Sometimes Our Kids Do Listen

October 21, 2010

I received an email a few weeks back from my daughter letting me know she was both scared and excited because she was moving into her new apartment and also starting college. I had mixed feelings when I read this –proud that my little girl was starting this new journey and sad that she was moving on and needing dad less.

But the part of her email that made me the most proud was how she talked about the way she was going to pay for her rent and school. Continue reading “Sometimes Our Kids Do Listen”

Core Competencies for Financial Literacy

October 19, 2010

Earning, Spending, Saving, Borrowing, and Protecting – these are the 5 core competencies that the Department of the Treasury’s Financial Literacy and Education Committee has proposed as what consumers should know and be able to do to successfully understand and make informed decisions about their personal finances. Each of these areas directly relate to your employees’ paychecks: Continue reading “Core Competencies for Financial Literacy”

Financial Decisions – Where to Start?

October 18, 2010

Did you ever feel like you had so many financial problems that it was no use? There is no possible way to get out of them. I had a caller like that yesterday and it was a tough call. She had a long list of financial issues similar to the following: a low credit score, unable to pay the minimum on credit cards, unpaid medical bills, past due utility payments and past due loans that her significant other was responsible to pay but are in her name. She’s also living with relatives and wants to move out but can’t and does not have an emergency fund. Where to start? Continue reading “Financial Decisions – Where to Start?”

How Does Drew Brees Do That?

September 24, 2010

Decision making…it’s one of the things that I heard a lot about while watching football last Sunday. An NFL quarterback needs to make an enormous number of decisions in an incredibly short period of time before a ridiculously large human being with fire in his eyes and bad intentions running at nearly world class speed hits him with the force of a wrecking ball. THAT is working under duress! In our lives we may not have 6’4”, 250 lb people trying to drive us to the ground during the course of our workday, but we are all under some form of stress. Continue reading “How Does Drew Brees Do That?”

The Statue of Liberty & the Concept of Hope

September 17, 2010

On a recent trip to New York City, I took a quick 1-hour boat tour of the New York Harbor. It was an incredible view of an incredible city! The most significant part of the tour (at least for me) was when the engines slowed down, the boat stopped, and we slowly drifted past Ellis Island and the Statue of Liberty. At the same time, the pre-recorded voice of the tour guide talked about the immigrants who came into Ellis Island filled with hopes and dreams of making a new life in the United States. Virtually every story we heard on that tour was one of people who came here without anything, worked hard, believed in what they were doing and why they were doing it, and achieved success. It was very inspiring. Continue reading “The Statue of Liberty & the Concept of Hope”