01/06/09

Do-It-Yourself Financial Planning:
Does it Make Sense for You?

Many neighborhood home repair stores encourage Do It Yourself (DIY) projects with all the necessary tips and tools to achieve a successful result. But how many times has the DIY’er arrived home with a bag full of supplies and plenty of confidence only to stumble on step one of the instructions?

When you are knee deep in water from a leaky faucet, and that “easy-to-follow” diagram has you stumped, it may be time to fly the white flag of surrender and call the plumber. Likewise, when you are confused and overwhelmed with your retirement and investment accounts, maybe now is the time to engage a professional to help sort it out and help you begin to find your path to financial independence.

But if you decide to delegate this important...

Posted at 11:12 AM | Permalink | Comments: 2

10/07/08

Squirreling Away for the Future

Signs of fall are apparent. A chill is in the air, leaves are beginning to show vibrant colors, and squirrels are scurrying to store nuts in anticipation of the cold winter ahead.

The fall extends to financial markets around the world, which plummeted even after the president signed Congress’ economic bailout plan into law. If you’re tentative about your financial future, rest assured. We could all take a lesson from those busy squirrels.

We need to start saving for our future but with all the options available where do we start? Creating an integrated strategy is critical to planning your financial future. Perhaps you have an employer-sponsored plan, an Individual Retirement Account (IRA), and a brokerage account all with investments intended for...

Posted at 05:34 PM | Permalink | Comments: 1

08/13/08

When the Going Gets Tough... the Tough Go Shopping!

Is there anything better than finding a fabulous new outfit to wear to a special event? But of course, it’s a fabulous outfit on the sale rack at 25 percent off! So, let me ask you this question—would you leave it on the rack and wait for it to go back to full price before you buy it? Or would you snap it up and then buy a pair of shoes to match? OK, this may sound like a silly question with an obvious answer but let me try to add some perspective to the concept of buying into a falling market.
When the market is in a period of decline you may want to think of it as being ‘on sale’ and use it to your advantage. Let’s consider, for example, that you are regularly investing in an IRA or 401(k). At specified intervals, perhaps once or twice a month,...

Posted at 04:23 PM | Permalink | Comments: 0

07/09/08

Your Vacation: Plan for the Best and Worst

Traveling this summer? Plan for the best of times and the worst of times before you go.

Having recently returned from a vacation in Italy, where driving in Rome is considered a blood sport and traffic laws viewed as merely suggestions, I thought it timely to review some planning tips if you expect to travel this summer.

First, don’t leave home without leaving a detailed itinerary with family members or friends. This serves two purposes — in the event there is an emergency at home, and someone needs to track you down, it will be much easier if they know exactly where to find you and how to contact you. Also, should there be a tragic accident involving an airline, for example, your loved ones won’t worry needlessly if the flight is...

Posted at 10:44 AM | Permalink | Comments: 0

06/04/08

Portable electronics are all the rage—did you know your retirement account is portable too?

Are you making a career change or leaving your job? Don’t leave your 401(k), 403(b), or 457 plan behind!

By definition these types of retirement accounts are all ‘defined contribution’ plans, funded with the employee contributions, which are always 100 percent portable when you separate from service with your employer. Some plans offer a matching contribution from the employer based on the amount contributed by the employee. Typically there is a vesting schedule which will vary, depending on the plan, from three to six years before you acquire the right to keep the employer contributions so if you leave your job before you are fully vested you may forfeit a portion or all of the employer contributions to your account.

Posted at 12:00 AM | Permalink | Comments: 0

05/02/08

Pensions and Floppy Drives—What Do They Have in Common?

Pensions and floppy drives—what do they have in common? Both are going the way of the dinosaur so if you don’t want your retirement income to become extinct before you do the time to plan is now.

A pension is a type of retirement plan typically funded by an employer to provide a lifetime benefit to an employee, and his or her dependents, upon retirement. In years past, employees frequently worked for one employer throughout their career, retired around the age of 65, and often within just a few years they died. Sad, but true! Pensions are going the way of the dinosaur because they are expensive to administer and because they were never designed to provide an income for decades of life in retirement.

If you think your employer owes you a...

Posted at 12:00 AM | Permalink | Comments: 0

04/11/08

Pay Yourself or Pay Uncle Sam: The Choice May Be Yours!

With tax season looming perhaps you are preparing to stroke that dreaded check to the IRS for taxes owed and wondering how to avoid doing so? Note I said avoid and not evade – big difference! Avoiding taxes means simply taking advantage of all opportunities available to minimize your tax bill, evading taxes means illegally misrepresenting your taxes owed and could land you in hot water with Uncle Sam.