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What if…? | Financial BALC #76
… you could double your retirement spending? An exciting thought, for sure. Three researchers from Texas Tech University examined William Bengen’s well-known 4% safe spending rule and found that some retirees, perhaps many, can live a lot bigger. By emphasizing a portfolio’s ability to withstand a 30- or 40-year retirement, we ignore the fact that [...]
Minimize Your Taxes | Financial BALC #75
Generally, taxes are the biggest expense in retirement. In a time when retirees often need every penny of income to feel secure that it will last as long as they will, here are a few things to consider: The location of your investments – If you’re like most of us, you’ve probably made investment decisions [...]
Why is age important? | Financial BALC #74
When talking retirement, these are the most important ages to factor into your plans. Contact me for more details. AGE 21: Employees can generally enroll in a 401 (k) plan at age 21. Plan sponsors are allowed to exclude employees younger than 21, and many companies do. A recent IRS survey of 1200 plan sponsors [...]
2012 Social Security Changes – The New Normal | Financial BALC #73
Social Security payments for more than 60 million Americans will increase 3.6 percent in 2012, the first increase since 2009. The typical retiree will see an increase of about $43 per month, but a portion of the increase may be deducted to pay for higher Medicare Part B premiums. Since 1975, Social Security payments have [...]
The New 401(k) Rules
The U.S. Department of Labor now requires full disclosure and transparency of service fees related to investors’ 401(k)s, allowing workers and retirees more control over their retirement savings. This change won’t happen immediately. Service providers can wait until July 1st to tell employers the costs of their 401 (k) plans. Participants will have to wait [...]
Fewer Foreclosures Could Mean Lower Home Prices | Financial BALC #71
We all know that distressed home sales put downward pressure on homes prices all around them. Close to 12 million borrowers are now in a negative equity position on their homes because so many other borrowers were unable to afford their mortgages. The logical assumption would then be that as foreclosures ease, organic home process [...]
Let’s change it up | Financial BALC #70
When the financial world looks upside down, maybe it’s time to follow suit and turn over your money habits as well. Contrary to conventional advice, there are some regular money moves that are better done at the beginning of the year rather than the end. Five examples: Tap your flexible account early. Your employer provided [...]
What goals? And how do I get there? | Financial BALC #69
Quick… What are your top three financial goals? No, you can’t answer generically, like “financial security”. If we’re being honest, most of us haven’t thought much about financial objectives. We muddle through, spending to meet the day-to-day expenses that dominate our attention. The basics, or core, of this subject is to identify the financial goals [...]
Thoughts on spending, saving and debt. | Financial BALC #68
Everything money was once fairly simple: You spent what you needed to and saved the rest. But as mass consumption has become a dominant force in the U.S. economy, the tension between spending and saving has become far more acute. Americans have endured a long three-year experiment with thrift, but they now seem to be [...]
Credit Myths – True or False? | Financial BALC #67
Credit may be a big part of most consumers’ lives, but that doesn’t mean everyone fully understands the industry. Experts believe that many consumers are intimidated by a system they don’t quite understand. In an attempt to help people become more credit savvy in 2012, below experts clear up some common misconceptions. FALSE: Paying on [...]
