What to Do With $100,000 in Today’s Economy

October 29, 2012

I actually get this question quite a bit on our financial helpline and in our worksite financial planning sessions, not so much that someone got an inheritance (though I did get that last week), but many people simply want to know how they should allocate their assets in their own 401(k).  The question doesn’t have a quick and easy answer and answering involves asking a series of questions first because investing starts with you – the investor. Obviously, an aggressive investor is going to have a very different investment mix than a conservative investor.  A fifty year old may have a very different investment mix than a twenty year old no matter what the current economic outlook.  Here are some questions I always start with: Continue reading “What to Do With $100,000 in Today’s Economy”

What to Do With a Windfall of $10,000

October 22, 2012

Ten thousand dollars is a lot of money but certainly not enough to make you independently wealthy. I remember watching the California lottery television show when I lived in Sacramento. The lottery ticket scratcher winners were chosen randomly to be on the show.  Then a few lucky people were pulled from the audience and got a chance to spin a wheel so a ping pong ball would determine whether they won  a million dollars all the way down to a minimum $10,000.  Most people actually won $10,000 but every single one of them had high hopes of winning the million. Continue reading “What to Do With a Windfall of $10,000”

What to Do with $100

October 15, 2012

People often ask me what to do with $10,000 or $100,000 because they have saved those assets in their 401(k) and want to make sure they are invested appropriately for their retirement.  I can’t recall anyone ever asking me what to do with $100, but that question may actually be the key to financial security and building wealth. Continue reading “What to Do with $100”

Five Step Check List for Your Estate Plan

October 08, 2012

What did Heath Ledger and former Supreme Court Justice Warren Burger have in common?  Their career choices couldn’t have been more different but in their estate planning, they made similar mistakes — ones that could have been easily avoided.  Heath Ledger made the mistake of not updating his will when his daughter was born and even though Warren Burger was a Supreme Court Justice, well versed in the law, he made the mistake of doing it himself and ended up leaving out some key provisions.  In both cases, the family paid the price.  If a Supreme Court Justice can make a mistake, anyone can. Continue reading “Five Step Check List for Your Estate Plan”

Three Common Estate Planning Mistakes That You Can Easily Avoid

October 01, 2012

When I made a mistake once on my taxes, I got a notice from the IRS in the mail asking me to pay what I actually owed and a little extra for interest and penalties.  This was certainly not a pleasant experience, but all it really cost me was money and my pride. However, when you make a mistake in estate planning and don’t catch it, you may not know it until it is too late.  The very people you were trying to take care of may end up muttering your name under their breath in frustration because they have some problems on their hands. Continue reading “Three Common Estate Planning Mistakes That You Can Easily Avoid”

Don’t Hate Your Customer Loyalty Program – Tips to Make Them Work For You Without Having to Endure a Million Annoying Emails

September 24, 2012

I am not sure why my friend Diane went off on a rant against loyalty discount programs and I am also not quite sure why she ranted to me.  She knows I am a blogger so I think her comments are fair game to quote, especially since she emailed them to me – like at the police station how they take your fingerprints from the soda can to incriminate you because you drank it in public.  I am using the same logic by publishing her comments. Here is what Diane had to say about customer loyalty programs: Continue reading “Don’t Hate Your Customer Loyalty Program – Tips to Make Them Work For You Without Having to Endure a Million Annoying Emails”

Point One Percent Interest in a Savings Account? How to Do Better!

September 17, 2012

It makes me sick to my stomach to see to see my savings just sitting there earning point one percent interest – not one percent mind you but point one. On the other hand, this is my “safe” money.  These are funds I don’t expect to use but need to have a principal guarantee and want to have some access to in case of a job loss or some major emergency.  The funds can’t be invested in stocks due to the fluctuation of principal, and if there is any chance I might need the funds in a year, it’s the absolute worst time to buy bond funds with interest rates being so low. Continue reading “Point One Percent Interest in a Savings Account? How to Do Better!”

Help Your Child Establish Credit Early

September 10, 2012

My son is frustrated and I think probably a bit mad at me (but he didn’t come out and say that). He just graduated from college and found out he has a credit score of 587.  That is a terrible score but then again, as I told him, he is a terrible credit risk. Why should he have a good score?  He just graduated, moved to a new city and got his first paycheck.  What bank would take a chance on him? Continue reading “Help Your Child Establish Credit Early”

Money and Marriage: The Missing Manual

September 03, 2012

It is commonly known that money is the leading cause of marital problems. As a financial planner working with couples for over 25 years, I have seen why. Couples often take the wrong approach to love and money, thinking that love and money don’t mix.    Continue reading “Money and Marriage: The Missing Manual”

Back to School Money Lessons: Making The Most of a Bad Economy

August 27, 2012

My friends are all posting their back-to-school photos of their kids and grandkids – they are so cute with their new clothes and backpacks! I miss the days of dropping my own kids off on those first days of the school year…well, except the first few years. I didn’t let them see a little tear in my eye as they walked into their classrooms looking so grown up.  Continue reading “Back to School Money Lessons: Making The Most of a Bad Economy”

Warning: Getting a Second Opinion on a Financial Advisor May Have Saved This Woman’s Retirement

August 20, 2012

“Interview at least three financial advisors in your area and then call me back for a second opinion on your top choices.”  That was the guidance I gave to a woman who called our financial helpline. She is retiring in about six months and wants to have a relationship with a local financial advisor when she retires.  We discussed what she was looking for, how to find someone, and what questions to ask, and I sent her a follow up resources that had the list of questions.  We talked about choosing someone who has made a commitment to their industry by earning a CFP® or ChFC® designation or a masters degree in financial planning.  After giving her some links on how to search for a planner (click here) and some questions to ask (click here for the resource), she set out to find one. Continue reading “Warning: Getting a Second Opinion on a Financial Advisor May Have Saved This Woman’s Retirement”

Usain Bolt Won Olympic Gold Because Someone Was Chasing Him – Who is Chasing You to Meet Your Goals?

August 13, 2012

If you saw the Olympic 100 meter sprint final in men’s track, the “world’s fastest man” race, you saw two Jamaican runners cross the finish line one right after the other.  When I watched from my TV at home, I saw their bodies holding steady and their feet in a blur like the roadrunner cartoon.  They were running so fast, my eyes couldn’t keep up with the pace and those neon yellow green tennis shoes just looked like big glowing circles to me.  Usain Bolt defended his title in the race with 9.63 seconds and won gold but he was followed closely by his team mate Yohan Blake at 9.75 seconds said, “When you are sleeping, I’m working. I’m toiling through the night.” Continue reading “Usain Bolt Won Olympic Gold Because Someone Was Chasing Him – Who is Chasing You to Meet Your Goals?”

Financial Lessons from Olympic Volleyball Gold Medalist Kerri Walsh Jennings

August 06, 2012

“We can do better” was the phrase I heard in an athlete’s interview. Surprisingly, the words came out of the mouth of three time Olympic volleyball player and two time gold medalist, Kerri Walsh Jennings.   Kerri and her partner, Misty May-Treanor, have never even lost one set in two Olympics games – Athens in 2004 and Bejing in 2008 – and they are working toward their third in London.  So when I heard the phrase from Kerri, I wondered, how can you do better than never losing a match?  How can you do better than gold? How can you do better than being the best in the world? Continue reading “Financial Lessons from Olympic Volleyball Gold Medalist Kerri Walsh Jennings”

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”

Ladies: A Fun Way To Save Money on Clothes —a High Tech Wardrobe Capsule

July 23, 2012

Engaging your emotional self (or inner child) when it comes to managing your cash flow will make the difference between making or breaking your budget. We all know rationally what is good for us – like eating an apple instead of a cookie.  We know we “should” reach for the apple but our emotional self wants the cookie and a battle ensues. Continue reading “Ladies: A Fun Way To Save Money on Clothes —a High Tech Wardrobe Capsule”

5 Financial Planning Moves for Women in Their 20’s

July 16, 2012

Whoever said, “Life is short” did a disservice to thousands of people.  Life is not short.  Life is long.  Research on longevity shows that in married couples that live to age 65, life expectancy for at least one of them is age 94.  When you think about it, 94 years is a very very long time. Someone who is 94 years old this year would have been born in 1918 – does anyone know what was going on in 1918? We were in the middle of World War I, Mississippi was the first state in the Union to ratify prohibition, and Woodrow Wilson was the President of the United States.   In the 1910s, only 14% of homes had a bathtub, only 8% had a telephone and the speed limit in most cities was 10 miles per hour. Continue reading “5 Financial Planning Moves for Women in Their 20’s”

Show Me the Money — to Pay Down Debt

July 09, 2012

One of the common complaints I hear from people who are trying to get out of debt is they are financially strapped.  “How can I pay down debt when I can barely make ends meet?”  Since the economic downturn in 2008, overtime pay has gone away, salaries were cut and haven’t come back up, and those who lost jobs and found new ones are unfortunately getting paid less.  It’s tough to find extra money to pay off credit cards and other loans but it can be done. Continue reading “Show Me the Money — to Pay Down Debt”

A Unique Way to Find Things to Do This Summer for Under $100

July 02, 2012

Summer is all about the outdoors. With sunlight lasting well into the evening, it certainly extends the weekend.  These long days bring back memories of when I was a kid in the suburbs of Washington D.C., playing in the backyard or going to the community pool with my girlfriends. I also remember all the gnats flying around my face, which I don’t have here in the high desert of Utah.  It seemed like the weekend lasted a lifetime back then.  As adults, most of us don’t have the whole summer off so we want to make the most of our weekends and there are plenty of activities we can do that don’t break the bank.  We have to start locally since flights out of town and gas to get out of town are expensive and we want to stay within our $100 limit. Continue reading “A Unique Way to Find Things to Do This Summer for Under $100”

What I Learned About Overspending From Grand Funk Railroad

June 25, 2012

The beer commercial “find your beach” is very popular and with reason — a reason that ends up unknowingly costing us money.  The basis of the commercial if you haven’t seen it or one of the many iterations is this: an attractive couple sits with their backs to us in a couple of Adirondack chairs with a low table between them and an ice filled bucket containing cold beers and limes.  They are sitting doing nothing – not a care in the world on a tropical beach in paradise.  We’re told to find “our beach.” Continue reading “What I Learned About Overspending From Grand Funk Railroad”

How to Slash Your Entertainment Budget This Summer to Less Than $100!

June 18, 2012

Entertainment seems to be a universal budget crasher.  My son Brian told me that he tries to stay in his budget but sushi night always puts him over.  He has subsequently switched to the 10 cent wings night at his local barbeque place and bragged to me that he ate something like 35 chicken wings in one sitting. Entertainment, which inevitably involves expensive food, will bust a budget every time. My friends and I went on a hike this past weekend (free!) but afterwards we grabbed lunch with a group of friends so each couple ended up spending something like $35 bucks on lunch and libations.  There goes the benefit of the free entertainment. Continue reading “How to Slash Your Entertainment Budget This Summer to Less Than $100!”