6 Tips for Making the Best 401(k) Investment Choices

July 18, 2012

Investing for retirement can be an intimidating undertaking. Setting aside money in your 401(k) plan is difficult enough, but determining how to invest it presents its own set of challenges. The good news is that you don’t need to be a seasoned, savvy investor in order to make the right choices. In fact, once you determine your risk tolerance and know what to look for in a fund, picking the right one is largely a process of elimination. Continue reading “6 Tips for Making the Best 401(k) Investment Choices”

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”

Why I Changed My Mind About Whole Life Insurance

July 12, 2012
Updated June 14, 2017

Like most financial planners who don’t sell whole life insurance, I’ve always seen whole life insurance policies as great big rip-offs sold by sleazy life insurance agents. But my opinion changed a bit after a recent conversation I had with a Helpline caller. While I still think most people are better off buying term insurance, I’ve come to the conclusion that whole life insurance can be a better deal for some people. Continue reading “Why I Changed My Mind About Whole Life Insurance”

How Risky are Prepaid College Plans?

July 11, 2012

With soaring tuition rates and the increasing importance of a college degree in our economy, prepaid college plans have become popular over the last two decades.  However,  declining returns from the stock market, compounded by the recent financial crisis, have caused a large gap between the funds in these state-administered programs and the escalating costs of state schools.  So what exactly are prepaid college plans and how risky are they? Continue reading “How Risky are Prepaid College Plans?”

Top 4 Ways to Begin Investing for Retirement Today

July 04, 2012

If you haven’t been saving for retirement, putting even a little away on a monthly basis can have a huge impact on your future quality of life – especially if you invest in a tax-advantaged retirement account like your employer’s 401k plan or an IRA. This is because of compound interest: If you don’t have to pay taxes on the interest your account earns, that interest stays invested and earns yet even more interest – and the longer you’re invested, the more money you can make. For example, a mere $50 invested every month for 30 years will turn into almost $75,000 if it earns 8% annually – even though your total investment was only $18,000. Continue reading “Top 4 Ways to Begin Investing for Retirement Today”

7 Steps to Your Financial Independence Day

July 04, 2012

This week America celebrates its 236th birthday.  To honor the occasion, why not declare your own personal “Financial” Independence Day.  To me, financial independence equates to not having to worry about money, so if you are worried about your finances, take these seven steps to economic freedom: Continue reading “7 Steps to Your Financial Independence Day”

What I Learned From a Bad Movie!

June 29, 2012

Over the last weekend, I had the pleasure of seeing a new movie.  I really love going to the movies, but I rarely do it.  And when I do, it’s usually a Disney or Pixar movie with my kids.  So, it was a rare treat for me to get to go out with a friend and see a non-animated movie.  Being completely clueless about what movies were in theaters now, I deferred the decision to my friend who chose “Abraham Lincoln: Vampire Hunter” in 3D.  She had read the book and loved it, and she knew that I like historical fiction – books that take historical events and get “creative” with it. Continue reading “What I Learned From a Bad Movie!”

The Worst Investment Decision I’ve Ever Made

June 20, 2012

I’ve been doing a lot of workshops and webcasts on investing recently, and with so much market volatility, and the less than spectacular Facebook IPO, participants have been asking me for my personal opinion on how to invest.  One thing I tell everyone is that when it comes to investing, I’m no different than many of you. I’ve had my share of winners and losers, and even though I’ve spent 18 years of my career in finance, that does not bestow upon me some secret gift when it comes to investing. What it has done is convinced me that there are sound, fundamental investment principles that we should all learn to stick with, but at the risk of self incrimination, here is the worst investment decision I’ve ever made: Continue reading “The Worst Investment Decision I’ve Ever Made”

What Your Employees Don’t Know About Target Date Funds Could Hurt Them

June 12, 2012

Some of the most common questions that I’ve been receiving from employees during recent retirement planning workshops relate to confusion around the proper use of target-date funds. Ironically, these investment options are designed to simplify rather than complicate the process of saving for retirement. When used correctly, target date funds can help employees allocate and re-balance their investment assets appropriately to achieve their retirement goals with one stop diversification.  In fact, more than three-quarters of all 401(k) plans now offer target-date fund options for plan participants and in many plans, they serve as the default investment for automatic enrollment. Continue reading “What Your Employees Don’t Know About Target Date Funds Could Hurt Them”

Is Life Insurance a Good Investment?

June 04, 2012

Permanent life insurance has a whole host of benefits, especially for taxpayers in a high tax bracket, but does it make sense when you don’t have dependents? We got this question from one of our Facebook fans (yes- you can ask a question and we’ll answer it for you here.) Continue reading “Is Life Insurance a Good Investment?”

Why I Didn’t Invest in Facebook

May 31, 2012

No, it’s not because I’m a Facebook hater. In fact, I think I’m one of the few Facebook users who actually really likes Facebook (yes, even the timeline). I wish I could say that I anticipated the company’s weakened growth forecast but it’s not that either. Nor is it because I necessarily think that the growing shift to mobile will turn Facebook into the next MySpace. The reason I didn’t buy Facebook stock is because I simply don’t buy any individual stocks. Period. Continue reading “Why I Didn’t Invest in Facebook”

Pros & Cons of a 529 College Savings Plan for Your Kids

May 16, 2012

Figuring out how to pay for your child’s college education can be overwhelming. The cost for one year of school at a public university is over $17,000 and is nearly $40,000 at a private school – and that doesn’t even include the price of room and board. Counting on scholarships to cover college costs is foolhardy and the availability of student loans (especially a loan with a good rate) is not guaranteed. Continue reading “Pros & Cons of a 529 College Savings Plan for Your Kids”

Three Investment Mistakes the Trained Eye Can Spot

May 14, 2012

Recently, I had the opportunity to have a series of one-on-one meetings with employees called Ask-a-Planner sessions where the employees could ask me any question on any financial topic they wanted. Fortunately, they didn’t “stump the planner!” Many people used their time as an opportunity to have me review their allocation in their 401(k).  While most of them had an asset allocation that was a fit for them, some of the statements had huge rookie mistake red flags that I’d seen before. Continue reading “Three Investment Mistakes the Trained Eye Can Spot”

April Showers

April 04, 2012

As the saying goes, April showers bring May flowers and if you live in the Southeast like me, you’ve certainly had your share of showers this spring.  As I stare out the window at the falling rain, I’m reminded of the fact that in every financial lifetime, some rain must fall so the bigger question is this: how do I prepare for my financial “rainy day?”  Here is a list of five steps you may want to consider taking this spring so that when, not if, the financial rain comes, you’ll be better prepared. Continue reading “April Showers”

Which investment firm is the “best?”

March 30, 2012

Who knew that a post-modern world where a big government controls everything and has a televised tournament where children fight till the death would be so popular? The Hunger Games movie opened recently and had the third best debut weekend of all time.  It even beat all of the Twilight series movies as a box office success.  Fortunately, or unfortunately depending upon how I view this, I have read both the Twilight trilogy as well as the Hunger Games trilogy.  Continue reading “Which investment firm is the “best?””