When doing retirement planning sessions with people, we often talk about their retirement resources in order to help them plan for the future. We look at any pension incomes that will come their way. We look at their savings and investment accounts, their contribution levels and the potential growth of those accounts. Continue reading “Why Your Social Security Projection is Probably Wrong”
When was the last time that you talked to somebody that was excited about the interest rate on their checking, savings, or money market account? Most people really don’t get worked up into a frenzy talking about personal finances and it’s especially rare to hear people excited about the interest rates banks are paying these days. Unless you have completely avoided paying attention to your personal finances over the past few years, it is no secret that interest rates are extremely low right now. When I say really low, I really mean practically nonexistent. While this is excellent for most borrowers, it doesn’t really provide us with a great deal of incentive to shop around for more competitive interest rates when parking our money at financial institutions. Continue reading “How to Give Your Checking Accounts an Extra Boost”
For centuries, June has been the most popular month for weddings. The idea of two people vowing to share the rest of their lives together always puts a smile on my face, but are these two souls that have now been joined as one fully prepared for what lies ahead? I should think that a person that says “I do” does so with no thought of some day thinking “I don’t,” but the reality is that many of these newlyweds won’t be together in 20 years. Continue reading “When the Wedding Bells Stop Ringing”
The old expression “keeping up with the Joneses” has led far too many people into living a lifestyle based on consumerism, having a nice house, nice car, nice clothing, and nice vacations, but a not-so-nice balance sheet. I have seen this happen more times than I care to remember with clients, friends and family. In fact, early in my married life, I fell into the same trap. We lived a very nice lifestyle and had a lot of “stuff” in our lives. Fortunately, I was able to put together a savings plan that came first, so we didn’t become fully immersed in that kind of lifestyle. Continue reading “Less Can Be More”
Mint is one of those financial tools that I have talked about so much since they appeared on the online budgeting scene that I often take for granted the fact that not everyone out there knows about their service. This week, we will look at Mint and review some of its most popular features. Mint has been around since 2007, boasts over 10 million users and has numerous awards, which is great and all, but all that really matters if you have an account is one thing – are you taking control of your money and making the smartest decisions possible? Here is a little more information about how it works and how you can potentially use Mint to help you reach your most important financial life goals. Continue reading “Personal Finance Tools Review: Mint”
Save for a rainy day. Avoid debt by saving for goals in advance. Those are some of the oldest pieces of financial advice out there but they can also be the hardest to follow. Continue reading “Personal Finance Tools Review: SmartyPig”
One of the most common questions I get asked is how to divide your money between different types of investments. You’ve probably heard that 90% of investment returns can be explained by your asset allocation or how you divide your money between stocks, bonds, and cash. The problem is that asset allocation guidelines can vary dramatically based on where you look. So how do you decide? Continue reading “The 5 Things That Really Matter When It Comes to Investing”
Last week, Financial Finesse released our annual Generational Research Report and all I can say is, “I resemble that remark.” The good news of our findings is that my generation, Gen X, is getting better across all areas of financial wellness. The bad news is that we were the hardest hit generation by the Great Recession and we are lagging our counterparts in many areas, especially cash management. Continue reading “Why Gen X Isn’t Doomed”
When it comes to money, kids today are presented with a world of choices that most of us parents didn’t have to worry about when we were young. You certainly didn’t have to think about the latest iPod or iPad, $100 tennis shoes, or any other purchases of that magnitude. Depending on your age, credit and debit cards may not even have been around when you were younger – if you grew up when I did, you either had money or you didn’t. Continue reading “How to Educate Your Kids on Proper Money Management”
Yesterday, we provided financial tips for the Baby Boom generation. Today, we take a look at Generation Xers, who are suffering the double whammy of experiencing tough economic times at a particularly vulnerable financial stage of life. While most Millennials were too young to own stocks or real estate during those market crashes, and Baby Boomers enjoyed decades of growth in both assets throughout the 80s and 90s, many Gen Xers had the misfortune of starting their investing just as both markets were peaking. This comes at a stage of life in which a majority of Generation Xers own a home (translate: have a mortgage payment) and have minor children (translate: extra mouths to feed). So if you’re a Gen Xer, here are some moves to consider: Continue reading “7 Steps for Generation Xers to Reclaim Their Financial Future”
As the year winds down, some employees may find a little extra in their stockings this year in the form of profit sharing, year-end bonuses, or other such windfalls. Such surprises may leave them wondering “What should I do with this?” Well, if you’ve managed to stay on the nice list all year, here are a few ideas as to what you can do with this extra bit of Christmas cheer: Continue reading “Did You Find a Little Extra in Your Stocking This Year?”
I recently read this article about how the real question in life isn’t what you want. It’s what pain you want. We all have unlimited wants, but what are you willing to struggle for? What price are you willing to pay? Continue reading “The Question That Will Determine Your Financial Success”
Recently, a judge allowed the City of Detroit to remain in bankruptcy court which will allow the city to try to find a solution for an $18 billion debt problem. As a part of the solution, the pension benefits for a lot of retirees and current workers may be significantly reduced. The city is in serious financial trouble and without some sort of drastic measures, it might never recover. Continue reading “Lessons From Detroit”
Have you ever compared your current retirement savings balance to where it should be, according to the advice of a financial adviser or online calculator? Most Americans haven’t. According to the Employee Benefits Research Institute, roughly 60% of Americans have less than $25,000 set aside for retirement and about 30% have less than $1,000. If you haven’t already done so, check on your retirement accounts and see where you stand. If you’re behind and want to catch up, consider the following five strategies. Continue reading “Short on Retirement Savings? Here’s How to Save More”
From the time I was ~6 years old until very recently, I have been competing in one sport or another. If there is a winner and a loser involved in something, I’ll either try it or watch it. Over the last decade or so, I’ve become very fond of the sport of mixed martial arts (MMA). It’s a one-on-one sport combining boxing, wrestling, jiu-jitsu and other grappling styles. Because of the highly technical style of this sport, every single part of an athlete’s body needs to be operating at 100% capacity or defeat is nearly certain. Continue reading “Don’t Limit Yourself”
In this blog post, Michael makes the argument for a moderate middle ground between a couple he knows that are living well beyond their means and another couple he read about in this article that managed to pay off their mortgage in less than 5 years. While paying off your mortgage early may seem like a great thing, Michael worries that the couple may look back on this time of their lives with regret at all the things they didn’t do with that money. I don’t and here’s why. Continue reading “The Case Against “Moderation””
I recently joined a group of friends in a discussion about our first jobs and reminisced about those innocent days of youth (mostly innocent at least). My first job tapped into my entrepreneurial spirit as I traveled yard to yard in my little corner of suburbia mowing lawns. The boss was a free-spirited adolescent and that venture provided zero benefits, but I did learn a lot about the importance of having a solid work ethic and it gave me hands on experience with managing and saving money. Continue reading “Financial Tips for Recent College Graduates and Early Career Professionals”
I was reflecting on my “best investment decision” from my post last week and realized that the same caution that led me to not buy a home at the top of the real estate bubble also made me miss buying a home near the bottom of the real estate market last year. I looked at several properties that I liked and they were priced low enough that I could have easily more than covered the monthly costs by renting them out if I had to. However, there were so many good options that I suffered from “analysis paralysis” and ended up not buying any of them. Continue reading “To Buy or Not to Buy”
Several weeks ago, I had the pleasure of meeting a young man who emigrated to the U.S. from Africa, and he wanted to know if he was saving enough for retirement. As I proceeded to ask him the usual questions—when would you like to retire, what kind of lifestyle would you like to have, how much have you already saved — I began to realize that this individual was quite different from most of the ones I talked to. It turns out that he is already saving 25% of his pay but was able to save more and wanted to discuss his options. Continue reading “What’s On Your “Dream Board”?”
