Financial Education in the Workplace: The 2% Decision

December 28, 2010

Now that our politicians have finally come to a decision about the new 2011 tax law, your employees have a decision of their own to make – what will they do with the 2% raise they will see in their paychecks?  With the December 17th passage of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, employees will only pay 4.2% towards Social Security tax in 2011, instead of the traditional 6.2%. Continue reading “Financial Education in the Workplace: The 2% Decision”

Financial Education: Read the Warning Labels

December 24, 2010

I spoke with someone recently who just welcomed a new baby into her household.  As we were talking, the conversation turned funny when we started talking about some of the warning labels on toys for children.  My youngest child is almost 9, but one of the funniest things I have ever read was the warning label on one of the toys he received at a very young age.  It was an ExerSaucer or something similar.   The assembly instructions were fairly easy, but what really stood out was all of the warnings about product usage.  If I recall correctly, the first two warnings were: Continue reading “Financial Education: Read the Warning Labels”

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”

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”

Escalate Your New Year’s Resolutions to Save More

November 30, 2010

“This year I will . . . lose weight, eat healthier, save more and spend less.”  Sound familiar? We all are probably guilty of making empty promises to ourselves as we usher in the New Year.  I haven’t yet discovered the magic pill for eating healthier and losing weight, since being on the road conducting workshops every week makes it a bit too tempting to eat out instead of cooking healthy.  But I think I HAVE found the answer to resolving to save more and spend less without any effort. Continue reading “Escalate Your New Year’s Resolutions to Save More”

Target Fund: Glide To or Glide Through

November 22, 2010

I heard a statistic the other day that the average employee spends 30 minutes choosing their benefits at open enrollment.  I cringe to think how some people choose the funds in their 401(k) plans and I’ve seen the resulting disaster from people choosing the wrong funds especially funds they thought were safe and turned out to be much more aggressive than they thought.  Many of these were Target Funds. Continue reading “Target Fund: Glide To or Glide Through”

Do You Have a Retirement Maintenance Issue?

November 18, 2010

The other day I was flying back home from Tennessee when it came to my attention that my flight was being delayed due to a maintenance issue.  Now while I find this aggravating, I certainly would prefer getting home in one piece.  Amongst the ramblings (and choice “words”) that I overheard, was this statement: “Plane has been sitting here all night and they wait until morning to find this maintenance issue?”  I chuckled to myself as I gave the person a polite smile, but then I got to thinking… Continue reading “Do You Have a Retirement Maintenance Issue?”

“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”

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)”

401(k) or IRA: Which Retirement Saving Choice Is Right for You?

November 09, 2010

As you open your most recent 401k statement, take a few minutes to check out a few important features of your retirement plan.  What is the employer match, if any?  Many companies have either reduced or eliminated the match over the past few years.  At the very least, you should be contributing up to the amount your company is willing to match.  But, what if you don’t have a match at all?  Should you contribute to an IRA instead?

Here are some points to consider in favor of re-directing your dollars towards an IRA: Continue reading “401(k) or IRA: Which Retirement Saving Choice Is Right for You?”

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?)”

Hopping the Hurdles Toward Retirement (the series)

November 03, 2010

It’s hard enough to plan on retirement for just you, but what happens when you throw others in the mix.  If you are married, your spouse may be part of your plan, but does your retirement plan also include taking care of aging parents?  This week we’ll take a look at how to address this issue when planning for retirement.

Hurdle #3: Taking care of dependent parents Continue reading “Hopping the Hurdles Toward Retirement (the series)”

Social Security as Your Bond Portfolio?

October 29, 2010

As someone who has a moderately aggressive investment approach, I had a conversation with a friend who has a very aggressive investment approach (in my opinion) and he has made me rethink a piece of my own investment philosophy.  I thought I’d share the conversation and see if anyone wants to add their opinion into the debate.  My friend is just about 50 years old and has always been an aggressive investor. Continue reading “Social Security as Your Bond Portfolio?”

Cleaning Up the Fall Budget

October 28, 2010

Each year my wife and I look at our household budget and see if there are ways we can trim our expenses.  (I know most people do this in the spring along with their other cleaning, but I dare to be different.)  I figured I would share some of our new found money tricks and hopefully some of these may help at least one other person. Continue reading “Cleaning Up the Fall Budget”

Hopping the Hurdles Toward Retirement (the series)

October 27, 2010

Whether you like it or not, the government has to spend money.  When the government spends money, it has to get that money from somewhere.  It can either get it from tax revenue, or it can print more money.

To increase tax revenue, the government will sometimes increase income taxes.  In my last blog, I discussed how to overcome the challenge of higher income taxes in retirement by utilizing the Roth IRA.  In today’s blog I’ll tackle the potential problem with printing more money: inflation. Continue reading “Hopping the Hurdles Toward Retirement (the series)”

Hopping the Hurdles Toward Retirement (the series)

October 20, 2010

I’ve been doing a lot of retirement workshops lately, and there’s a part in our workshop where we address the obstacles that stand in the way of you reaching your retirement goals.  I thought I’d offer some suggestions to how you may be able to get over these hurdles, so here’s the first in a series: Continue reading “Hopping the Hurdles Toward Retirement (the series)”

Protect Your Pre-Retirees: Let Them in on Potential Red Flags for Retirement Advice

October 12, 2010

The party is planned, the last day of work is circled on the calendar, and everyone’s happy and excited for Dave’s big day, including the financial advisor Dave met last week at a retirement planning dinner event he recently attended.  It seemed like a coincidence:  just when he started spreading the word of his upcoming retirement, an invitation came in the mail for a free steak dinner retirement seminar at his favorite steakhouse in town.  Dave left the seminar with the message that he needed to cash in his 401(k) as soon as he retired so he could roll it to an IRA and get better investment options, higher returns, better estate planning options, and best of all, someone looking out for him to manage his money. Continue reading “Protect Your Pre-Retirees: Let Them in on Potential Red Flags for Retirement Advice”

Retirement Decisions: What a Difference a Month Makes

September 27, 2010

I got a call the other day on the financial helpline from an employee who is retiring next year.  He had always planned on retiring in the month of June and noticed a trend this year of managers in his company retiring in August.  Now this gentleman had over 35 years of service so you wouldn’t think two months would have made much difference.

So we did some digging and here is what we found.  Continue reading “Retirement Decisions: What a Difference a Month Makes”