All Good Things Must End

August 07, 2015

As an addict avid watcher of Game of Thrones, I always hope that the series will go on for as long as The Simpsons. But as we’ve all seen in our lives, eventually all things (good and bad) must end.This article discusses the potential end of the run of GoT. I guess we will all have to deal with a series finale at some point within the next few years. The good news is that with Breaking Bad, Walking Dead, Friends, Seinfeld, MASH, etc. (depends on your generation which one will most resonate), we have precedent in watching our favorite show end. Continue reading “All Good Things Must End”

When Does A Roth IRA Or 401(k) Work Best?

August 03, 2015

As a financial planner, I find people are pretty predictable about their feelings on income taxes: hardly any of them want to pay more than is absolutely necessary, and they feel like other people don’t pay enough! The US tax code has incentives and rules meant to encourage us to do specific things like buy a home, make charitable gifts and save for retirement. But is there any value in actually paying taxes up front rather than put them off if you can? Continue reading “When Does A Roth IRA Or 401(k) Work Best?”

5 Myths About Social Security

July 27, 2015

I’m going to unofficially declare last week as National Social Security Awareness Week as a result of the questions I got in a series of workshops that I facilitated on retirement planning. I don’t think a week of Social Security actually exists on the calendar but with all the confusion surrounding Social Security there probably needs to be one. Here are some common myths I’ve heard: Continue reading “5 Myths About Social Security”

Is Smaller Better???

July 24, 2015

Have you watched HGTV recently? They have a show called Tiny House Hunters (spoiler alert – it’s not about termites looking for a new place to destroy) where people are on the hunt for ultra small houses. Most of the houses showcased are less than 200 square feet. That is smaller than the average US standard hotel room. I watched each episode with wonder, trying to imagine living in such a miniscule space.

A few buyers wanted to be free to move around. These tiny houses allowed their owners to move anywhere a truck could haul it. Others wanted to live more eco-friendly and have a small carbon footprint.

But the episode that really grabbed my attention was about a single woman who wanted to simplify her life and retire early. She figured out that she could afford to live in her dream location as long as she kept her housing costs under $60,000. So she quit her job, sold her lovely house in Colorado and set her sights on a tiny house on Hawaii’s Big Island.

So is this just a fad? While it is extreme, there is a definite movement towards smaller houses. Per this article, the National Association of Home Builders states that the average house size has shrunk from over 2,500 sq ft in 2007 to 2,152 in 2015. After decades of expanding house sizes, it looks like the days of the McMansion are waning.

What’s driving this trend? More Americans have decided that working 12 hour days plus an hour commute just to afford their big house isn’t worth the trade offs. Then there are the Baby Boomers – a large population of empty-nesters who don’t want the expensive and time-consuming maintenance required for their big houses and big yards. Lastly, millennials are demanding smaller, more eco-friendly homes in the urban areas. Home builders are listening and are building new single family houses that are smaller.

While I doubt I could live in a house smaller than the average dorm room, I am in the process of downsizing my life. My children are in college at Ohio State University so I sold the big suburban family home and bought a smaller single family house in the city. It’s large enough to comfortably accommodate them when they visit for the holidays but too big for just me.

A short term goal is to downsize even more in four years to a place with two bedrooms and water views and use the proceeds plus my savings to help fund my retirement. Every year, I check my plan with this retirement calculator to make sure I’m on track. Of course, life can throw curve balls but hopefully my plan to cut expenses now and even more in the future can help me dodge most problems.

I don’t know what drove the lady in Tiny House Hunters to retire in her mid-50s and pursue her dream of living in Hawaii. She bucked society’s norm by giving up her big house and fancy job to do something as radical as living in a tiny house. Extreme? Yes, but I admire her courage and dedication.

How To Determine Your Financial Priorities With A Late Start To Retirement

July 20, 2015

We hear a lot about the retirement crisis in America and there’s a great deal to be concerned about these days. With a decline in pension availability and concerns about the long-term viability of Social Security, the burden of saving for retirement rests squarely on our shoulders. However, the average American has less than $25,000 in total savings and investments for retirement (see EBRI’s 2015 Retirement Confidence Survey). Continue reading “How To Determine Your Financial Priorities With A Late Start To Retirement”

Managing Your Pension In A 401k World

July 15, 2015

Lately there’s been a lot of criticism of 401k plans in the news and some of it is very valid. A 401k that is poorly designed and/or poorly managed can leave people in a bad place when they want to retire, but traditional pensions aren’t a perfect solution either. Don’t get me wrong. If you have a pension that is a GREAT benefit to have. You just can’t assume that everything will work out as planned. Continue reading “Managing Your Pension In A 401k World”

Should You Plan For Retirement Or Seek Financial Independence?

July 13, 2015

When our team of financial planners asks others about their top financial concerns and priorities there is a consistent answer – retirement. In fact, our financial wellness reports usually show that every age group with the exception of those under 30 indicate that their top financial planning priority is indeed retirement planning. This probably comes as no surprise because everywhere you look these days financial services companies are bombarding us with clever messages to shift our focus to retirement. The Financial Finesse blog team, which I am a contributing member of, frequently writes about different aspects of the retirement planning process as well. Continue reading “Should You Plan For Retirement Or Seek Financial Independence?”

Unbiased Financial Guidance: Q&A With Kelley Long

June 22, 2015

I consider it a privilege to be a part of such an amazing team here at Financial Finesse.It has now officially been four years since I made the decision to leave my financial planning practice to join the financial wellness movement and I couldn’t be happier with that decision. I’m also pretty stoked to always have a group of CERTIFIED FINANCIAL PLANNER™ professionals available to provide me with a second opinion on my own financial decisions or to just help me validate that I am on the right path with my personal financial life plan. Continue reading “Unbiased Financial Guidance: Q&A With Kelley Long”

Your Financial Check-Up (Week 3): Achieve Your Most Important Financial Life Goals

June 08, 2015

It is week 3 of the Financial Check-Up Challenge and I’ve heard from readers who are participating in the challenge. I’ve also heard from others who basically told me, “I get it Scott. It’s important to check in occasionally to assess our financial health but LIFE HAPPENED and I didn’t get a chance.” Continue reading “Your Financial Check-Up (Week 3): Achieve Your Most Important Financial Life Goals”

Which History Matters?

June 05, 2015

Risk is something most people want to avoid.For that reason, and with 2008’s stock market crash and a lot of talk about today’s market being at or near all-time highs, I am seeing people re-evaluating the level of investment risk in their 401k’s. One trend that is a bit troubling is going on with young employees in their 20’s and 30’s who entered the workforce or were relatively new hires when the 2008 collapse happened. Many of these employees are shunning investment risk at perhaps the expense of their future financial security. Continue reading “Which History Matters?”

Retirement Isn’t All About The Numbers

May 22, 2015

Once in a while, usually during a long cold winter in the Northeast/Mid-Atlantic area, my thoughts wander into a warmer place. I’ve joked that one of the requirements for my next home is that I have to be able to call the local Home Depot/Lowe’s and when I ask if they sell snow shovels, their answer MUST be… “NEVER! Not a single day during the year do we sell snow shovels.” It was while discussing that philosophy with a friend that she pulled up this article on her phone to discuss her retirement dream. She would like to explore the world for a decade or so and then settle down in whatever place she feels like calling home. That sounds like a pretty cool lifestyle and one that a lot of people would love to experience. Continue reading “Retirement Isn’t All About The Numbers”

What Is Your Family Vision?

May 19, 2015

Okay, I am somewhat of a geek. One of my favorite channels is HGTV. I am fascinated by how they can turn a home that looks like something out of a horror movie into a dream home. Continue reading “What Is Your Family Vision?”

Small Changes Now Can Mean Big Long Term Results

May 08, 2015

In a conversation I had recently with an employee of a large healthcare company, the topic of retirement planning and investing merged together. She had recently started her job and wanted to be sure that she got off to a good start. Her prior employer had no financial wellness benefits provided so this was her first conversation with a financial planner. The conversation was very revealing about her views of herself, the world of investing and the level of financial knowledge that many people who work in financial services business assume that individuals have when they walk in for a conversation. Continue reading “Small Changes Now Can Mean Big Long Term Results”

Laughter Can Be Retirement Medicine

May 01, 2015

Earlier in the day, I had a conversation with a couple who were convinced that they didn’t have nearly enough money to retire any time soon and this was a very problematic issue for them.While she loved her job and said she planned to work until she’s the oldest employee ever at her company, he is absolutely miserable. Through a reorganization at his company, he now reports to a manager that he absolutely cannot stand and he said he feels like life is being slowly sucked out of him. The new boss, in his view, is an absolute megalomaniac who makes life miserable for everyone in their department. Nearly half of the staff has left for other opportunities within the last 6 months and the workload for those remaining is overwhelming to the point that he feels like his health is being compromised. Continue reading “Laughter Can Be Retirement Medicine”

In Defense of “Personal Finance Scolds”

March 05, 2015

I used to think that the need for Americans to save more was pretty uncontroversial. That was before I read this article called “The pernicious ideology of personal finance scolds.” The author lambasts financial advisors for “scolding people for not saving enough money” and calls the “ideology of savings scolds…ideologically pernicious.” Continue reading “In Defense of “Personal Finance Scolds””

Do You Need Life Insurance After You Retire?

February 04, 2015

As part of the financial education we provide on retirement decisions, we suggest a review of your insurance policies as a means of protecting your accumulated wealth. This includes a review of your homeowners coverage, medical benefits, and long-term care insurance, but we also suggest a review of your need for life insurance. I’ve always taken the stance that life insurance protects against at least three types of risk: loss of income, insufficient liquidity, and high income taxes. Let’s examine all three to see whether or not you need life insurance after retirement. Continue reading “Do You Need Life Insurance After You Retire?”

Can You Really Save More Tomorrow?

January 26, 2015

We hear a lot in the news about concerns that Americans aren’t saving enough for retirement. It’s not surprising for news to lead to an increased concentration on saving for the future. On average, retirement planning may be the top financial planning priority but that doesn’t necessarily mean that everyone shares this sense of urgency. Continue reading “Can You Really Save More Tomorrow?”

What to Do for 2015

January 16, 2015

I usually view “what to do at year end” and “what to do to start the new year” financial articles with great disdain (the same way I typically avoid writing “theme” blog posts for Valentine’s Day, Mothers’ & Fathers’ Day, Independence Day [is there any bigger cliché?], and any other over-played theme). However, I have spent most of my work hours early in 2015 talking to people who want to look at things they can do in the next 12 months in order to make progress toward becoming financially secure. It’s only because I have been asked so often that I’ll cave in, become part of the crowd and write a “What To Do for 2015” suggestion list. Continue reading “What to Do for 2015”