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?”

The College Fund You Don’t Know You Have

March 14, 2013

I talk to many parents of students approaching college age who fret about having little or nothing saved for college. They know how important a college education is and want their children to be able to go to the school of their choice while graduating with as little debt as possible but at best, they only have a few thousand dollars set aside for college expenses, barely enough for one semester’s worth of meals. The rest of their money is tied up in emergency savings, retirement accounts, and a home with little or no equity. Yet, there is one potential bright spot… Continue reading “The College Fund You Don’t Know You Have”

If I Could Turn Back Time – Financial Advice I Would Give Myself When I Was a New Mom

January 21, 2013

A few months ago, my son asked me an interesting question, “What financial advice would I give my twenty year old self?”  After pondering the answer for a while, since I think he was asking for advice in a very creative but roundabout way (I answered him here.) As I am making plans to take time off in May to help out my step–daughter care for my three year old granddaughter when the new baby is born, I thought of the same thing.  What advice would I give my twenty eight year old self when I was in her shoes as a new parent?  Here is what I came up with: Continue reading “If I Could Turn Back Time – Financial Advice I Would Give Myself When I Was a New Mom”

If I Won the Lottery

January 09, 2013

Recently, my 10-year old son Ethan asked me what I would do if I ever won the lottery.  What a great question.  How we answer this question says a lot about how we feel about money and what we value most.  After pondering the question for a moment, here is what I would do. Continue reading “If I Won the Lottery”

What Tootsie Rolls and Financial Aid Have in Common

November 23, 2012

Much to the chagrin of dentists everywhere, Tootsie Roll has been a staple of the candy business for a very long time.  This article talks about the Tootsie Roll Company being a very secretive organization.  And we thought it was just the CIA that operates in relative secrecy!  Tootsie Roll doesn’t give tours, they don’t give interviews to analysts and they don’t operate with much transparency.  It’s as if they have some magical mystery formulas that they don’t want the rest of us to know.  That reminds of an email that I saw from a friend at work this week… Continue reading “What Tootsie Rolls and Financial Aid Have in Common”

Getting Smart About College Costs: Part 3

May 02, 2012

By May, the “long wait” is over for most high school seniors. They’ve heard from the colleges or universities they applied to and have made their final choice. With a September destination locked in, there’s not a whole lot of learning going on in those last weeks of high school. Usually it’s a time for just showing up, having fun and saying goodbye to teachers and friends. Let Senior Week begin! Continue reading “Getting Smart About College Costs: Part 3”