Pull Your Head Out (of the Sand)

Do ostriches really hide their heads in the sand when they’re afraid? I’m not sure about ostriches but I know many people do this when confronted with their personal finances. They figure if they ignore the facts, there won’t be a problem. The problem with this behavior is that by not taking a good hard look at your personal finances, you’re probably making an already bad thing worse. I know I’m generalizing, some...

Finding Your Financial Balance

Some people intuitively know how to manage their money. The rest of us struggle. And many of us find our way through attendance of “The School of Hard Knocks”: while others manage to flunk out of it when it comes to our personal finances. No matter how you’re currently doing financially, you need to own it. Accept it. And plan your way forward. The vast majority of personal financial planners would have everyone retire...

How Much Should You Save for Retirement?

Drum roll please: the answer is all you can! The real answer is: it depends. If you’ve been saving steadily over the decades, keep up the good work and check with a financial planner if you have any questions about whether you’re on track or not. If you’re 40ish and just starting to save, the first answer applies to you. To give you a rule of thumb (take it for what it’s worth), six times your gross income is low, but...

Need, Wants, Wishes: Goal-Based Retirement Plannin...

In my last post, I discussed the changing face of retirement and challenged the readers to picture their retirement. How does it look? If it doesn’t include working, do you have, or will you have enough money saved? Having a financial plan created for your retirement can help answer that. Depending on your age, Social Security and insurance should provide a safety net, but this base may not be enough to pay for your...

Retirement Redefined

Our retirement is not going to look like our parents or grandparents retirement. When Social Security started back in the 1930′s few people lived to take advantage of it. Back then, it was very common for people to work until they couldn’t any more. The work was much more physical and bodies were worn out. Today, for the vast majority of us, things are much different. Many people have delusions of how wonderful it will be...

Last Minute 2009 Roth IRA Contribution Time

You’re saying: “No, it’s too late for me.  I filed my 2009 tax return a month and a half ago!” You do have to set up the Roth IRA (Individual Retirement Account) and make the contribution for 2009 by April 15, 2010. However, you don’t have to report it on your tax return: so it doesn’t matter whether or not you filed the tax return! Just be sure to permanently keep the contribution records. Why am I pushing the...