Why Your Advisor May Want You to Take Social Security Early

April 15, 2015

Earlier this year, I took a call from Carl who is getting ready to retire within the next few years. His advisor was suggesting that upon retirement, Carl rollover his 401(k) to an IRA and start collecting his Social Security benefit at age 62. Carl wasn’t so sure so he wanted a second opinion. Carl and I talked for a while and determined that it might make more sense for him to draw down his retirement account and allow his Social Security benefit to collect delayed credits. Continue reading “Why Your Advisor May Want You to Take Social Security Early”

Will You Be A “Boomerang Buyer”?

April 08, 2015

Since 2008, over 14 million homes have been lost to foreclosure. It may have been caused by a job loss, illness, or other heavy financial burden, but whatever the cause, losing a home can feel like a financial defeat….NOT SO! In 2014, roughly 10% of home purchases will be made by homeowners who lost their home to foreclosure or short sale between 2007 and 2013. These new homeowners, affectionately called “boomerang buyers,” did not give up on their desire to own a home and you shouldn’t either. Here are some steps you can take following a home loss to get back in a home of your own: Continue reading “Will You Be A “Boomerang Buyer”?”

Lessons From the 405

April 01, 2015

On a recent trip to Los Angeles, I was the passenger in a van that was traveling down the 405 late at night. Now if you are at all familiar with LA traffic then you probably can understand that most of the road construction the California DOT does in the LA area is done well…late at night.  On this particular occasion, they were doing work on the left shoulder, which is coincidentally next to the car pool lane—the lane in which we were traveling (at a pretty good pace, I might add).  Continue reading “Lessons From the 405”

How a Journal Gave Me a New Perspective on Money

March 25, 2015

A few months ago, I started to keep a journal so that I could capture my thoughts about life and record them for the benefit of my children. I figure I work all day long and don’t really have much time to teach them some of the important lessons that I’ve learned along the way. My hope is that one day they will pick up my journal and hear my voice as I speak to them about what is really important. In the same way, there are some things that are just more important than others when it comes to our finances. Here’s how journaling has helped me deal with this concern: Continue reading “How a Journal Gave Me a New Perspective on Money”

We’re Not Talking About What’s Right. We’re Talking About The Law

March 18, 2015

One of my favorite TV shows of the 80’s was “WKRP in Cincinnati.” If you’re my age, you probably remember Johnny Fever, Venus Flytrap and of course Jennifer and the infamous Turkey Drop: http://youtu.be/lf3mgmEdfwg. As much as I loved that episode, my favorite quote came from another episode where Mr. Carlson is talking to the station’s attorney about a legal issue. When Mr. Carlson is talking about a situation that is morally wrong, he says, “That’s not right,” and the attorney responds, “Arthur, we’re not talking about what’s right. We’re talking about the law.” Continue reading “We’re Not Talking About What’s Right. We’re Talking About The Law”

What A Lost Cell Phone Can Teach Us About Investing

February 25, 2015

Earlier this year, my boss shared with us her story of how she dropped her phone behind her bed. Her first thought since the bed was basically against the wall was to move the bed…in her words “bad idea.” After some time (and a little pain medicine), she took a second approach: use a hanger from the side to pull it out….again, “No dice.” (She thinks she actually made it worse by pushing it further out of reach.) Continue reading “What A Lost Cell Phone Can Teach Us About Investing”

Garbage In, Garbage Out: The Problem With Tax Preparation Software

February 18, 2015

A couple of weeks ago, I received a desperate email from Alex who was using tax preparation software to help him prepare his tax return. It seems he thought he could avoid taxation on his 401(k) from his prior employer by rolling it directly into a Roth IRA.  While it’s true he could directly roll funds from his 401(k) to a Roth IRA, it is NOT true that this will avoid taxation. Only after-tax money may be deposited into a Roth IRA, therefore the amount rolled over—a sum of nearly $20,000—would be treated as taxable income for the year. Continue reading “Garbage In, Garbage Out: The Problem With Tax Preparation Software”

When To Hire a Tax Preparer

February 11, 2015

It’s February, and that usually means that you are ready for winter to be over, you are thinking about what to get that special someone for Valentine’s Day, and you can’t decide whether to do your own taxes or to let someone do your taxes for you. For years, taxpayers have been baffled by the federal income tax system and for good reason. The number of pages in the Wolters Kluher CCH Standard Tax Reporter reached 73,954 in 2013!  However, there’s probably only a handful of those pages that actually apply to the average taxpayer, while the rest of those pages are technical jargon, legalese, and other stuff that’s most irrelevant to you and me.  Continue reading “When To Hire a Tax Preparer”

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?”

Be Careful Before You Use Groupon

January 28, 2015

My boss is a big fan of Groupon.For those of you not familiar with Groupon, it falls into a category of online commerce sometimes called “deal-of-the-day” websites. There are several of these out there, including LivingSocial and Woot, and they all pretty much offer deep discounts on a variety of goods and services.  My brother was the first person I actually knew who used Groupon to buy $25 worth of food at a local restaurant for $15.  Knowing how careful my brother is before he tries things, if he’s used it and it worked, then it must be legitimate. Continue reading “Be Careful Before You Use Groupon”

College is NOT a Right

January 21, 2015

Today I met a man who is taking a rather practical approach to teaching his kids about college planning. This gentleman has three kids, the oldest of which will be going to college in a few years. He said something rather profound that made me reconsider how I’ve been talking to my own kids about college. He said, “College is not a right.” Continue reading “College is NOT a Right”

Lessons From a Five-Hour Flight

January 14, 2015

On a recent flight from Charlotte to Los Angeles, I sat next to a gentleman who has had quite a rough year.  Without going into a lot of detail, he spoke with me about the recent passing of his father.  For many, the thought of losing a parent would be rather hard, but for my traveling companion, he spoke of his father’s passing as somewhat of a relief.  You see, his father began to suffer from cognitive impairment earlier in the year so much that he was eventually confined to a nursing home. His health deteriorated quite rapidly, and he was only in the nursing home for about three months when he passed. Continue reading “Lessons From a Five-Hour Flight”

All I Wanted For Christmas Was… a Flu Shot?

January 07, 2015

For years my friends and colleagues have been telling me to get a flu shot at the onset of flu season and for years I’ve been ignoring them, reluctant to do so for fear of somehow reducing my immunity to the virus or worse yet contracting the flu from the shot itself.  Now before you start sending me nasty emails telling me I’m wrong, let me just say that the Center for Disease Control has beat you to it. The truth is our family has been relatively healthy throughout the years, and my wife and I figured that all the hubbub over the flu shot was to create demand for something I really didn’t think most people needed.  In fact, the only reason I received my first flu shot last year was to appease my loving neighbor who insisted I get one prior to flying out for business. Continue reading “All I Wanted For Christmas Was… a Flu Shot?”

My “NO” Year’s Resolutions!

December 31, 2014

This New Year’s Eve, millions of people across the country will make New Year’s resolutions about things they’d like to do in 2015.  I’m all in favor of this annual tradition but to mix things up a bit, I’m going to suggest a few things that you DON’T want to do in 2015—something I’m calling “No” Year’s resolutions: Continue reading “My “NO” Year’s Resolutions!”

An Unusual Place to Shop This Time of Year

December 24, 2014

Merry Christmas Eve everyone!  Twas the night before Christmas, and all through the house, not a creature was stirring…except my wife who found herself making an unexpected, last-minute shopping trip because someone forgot to tell her that they needed formal wear for a Christmas concert the next day. While this may cause the average person to recoil in frustration, read on to see how my wife responded under these less-than-ideal circumstances. What she has to say may just be the little Christmas miracle you’ve been looking for this year. Continue reading “An Unusual Place to Shop This Time of Year”

How to Pass the Retirement Income Literacy Test

December 17, 2014

“Americans flunk retirement quiz.” That was a headline in the December 3, 2014 edition of USA Today. In a recent survey conducted by the American College of Financial Services, 80% of surveyed Americans age 60 to 75 with at least $100,000 in household assets received a failing grade when given a basic retirement-income literacy test. Continue reading “How to Pass the Retirement Income Literacy Test”

Retirement Planning, Dougie Style!

December 10, 2014

One thing I love about my colleague and friend, Doug Spencer, is his ability to make the complicated simple. Take retirement planning for example. Some people approach retirement planning as though it involves complicated math, an ability to predict the future, and an ounce of luck. Continue reading “Retirement Planning, Dougie Style!”

10 End-of-Year Tax Tips

December 03, 2014

Are you worried about paying too much in taxes this year? If you wait until you file next year, it will be too late to do much about it. As the 2014 year winds down, you’ll want to note some simple things you can do to reduce the amount of income tax you owe Uncle Sam this year, while planning for the year to come.  Continue reading “10 End-of-Year Tax Tips”

How to Make College More Affordable

November 26, 2014

We all know that education is a key element in achieving the financial hopes and dreams that we all have, but is it possible that college education is getting too expensive?  One of my colleagues calculated that when he started college at a public university in 1988, a student would have to work 34 hours a week at minimum wage to pay for a year of college.  At that same school today, a student would have to work 53 hours a week to pay their way. Continue reading “How to Make College More Affordable”