Say NO to Student Debt (Part II)

January 22, 2014

A couple of weeks ago, I discussed a call from a father who was trying to do the right thing by helping his daughter pay for her education through the use of parent loans, a.k.a. PLUS loans. PLUS loans are often used to help pay for education when there is an insufficient amount available through regular student loans, savings, or other forms of borrowing. In many cases, PLUS loan repayments begin within 60 days of disbursement but in some cases, repayments can be deferred until 6 months after graduation. Continue reading “Say NO to Student Debt (Part II)”

7 Steps for Generation Xers to Reclaim Their Financial Future

January 15, 2014

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”

Say NO to Student Loan Debt (Part I)

January 08, 2014

My colleague, Erik Carter, and I just recently finished our 2013 research report on generational financial issues. In this report, we looked at internal and external data to see what Millennials, Generation Xers, and Baby Boomers are dealing with in terms of financial planning. As I began to look further into the lives of Millennials, I was shocked to discover just how much college debt the average graduate carries these days—averaging $35,200 according to a recent Fidelity study. Continue reading “Say NO to Student Loan Debt (Part I)”

Happy New Year!

January 01, 2014

Do you have any financial resolutions this New Year’s? According to a Fidelity New Year Financial Resolutions Study, a record 54% of Americans said they would make one this year. If you don’t have one, check out these 14 possible resolutions for 2014. Of course, the real challenge is sticking to it. Here are some tips to help make sure you do.

How to Avoid a 50% Mistake

December 18, 2013

Every year, the Ward family gathers around the table to share a traditional Thanksgiving meal together. Each of us takes turns sharing what we are thankful for and before long, the whole dining room is alive with laughter and joyous conversation. After the kids are excused, the adults sit closer together to talk about more serious issues, and inevitably the subject of money enters the discourse. Fortunately, there is a financial planner among them, so everyone knows who to ask when financial questions arise. Continue reading “How to Avoid a 50% Mistake”

A Tax Tip for a Jolly Old Elf

December 11, 2013

‘Tis the season to be jolly, and what better way to express your jolliness than to share it with others. Friends and family may be the first on your list, but don’t forget the less fortunate. My friend and colleague, Diane, and her daughter are starting a new tradition this year: They have adopted a family for the holidays so Diane and her daughter have chosen to sacrifice part of their Christmas so that others can enjoy theirs. Continue reading “A Tax Tip for a Jolly Old Elf”

In Defense of the 401(k)

December 04, 2013

I began my career in 1994 as an enroller for a large 401(k) provider. From the moment I started, I was indoctrinated in the virtues of this particular savings vehicle. Things like “tax-deductible savings” and “payroll deduction” became everyday vernacular, and before you knew it, I was out there evangelizing the masses on the greatness of this extremely important part of the tax code. So imagine my chagrin when I learned that my beloved 401(k) has come under attack recently by some who are calling for its demise. Continue reading “In Defense of the 401(k)”

Automatic Enrollment Does NOT Mean Automatic Retirement

November 27, 2013

As Thanksgiving approaches, what are some things you have to be thankful for? Your health? Your family? Your friends? How about a new job? According to the most recent data released by the Bureau of Labor Statistics, over 200,000 people entered the workforce in October. Whether they are entering the workforce for the first time or found a new job after previous employment, many will be automatically enrolled in their new employer’s 401(k) plan. Continue reading “Automatic Enrollment Does NOT Mean Automatic Retirement”

What You May Want to Discuss Around the Thanksgiving Table

November 20, 2013

Thanksgiving is right around the corner, and if you are like most traditional American families, you’ll probably eat too much, watch a game or two on the TV, and simply enjoy spending some quality time with each other. For some families, spending quality time together happens regularly, but for many, including my own, it usually only happens around the holidays. If that is the case for your family, one thing you may want to do this holiday season is discuss long-term financial goals. It may not seem like the most enjoyable topic of conversation around the dinner table, but with more and more uncertainty about the future, it may be one of the more important conversations you will ever have in your life. Continue reading “What You May Want to Discuss Around the Thanksgiving Table”

“Rules of Thumb” Can Make Financial Planning Simpler

November 13, 2013

One of the many hats I wear around the Financial Finesse office is that of a fact checker. Before we publish an article or release new content, I am frequently asked to verify any factual information it may contain. In some instances, the information I am asked to verify is absolute. For example, the IRS has recently released 401(k) and IRA contribution limits for 2014: $17,500 (or $23,000 if age 50+) and $5,500 (or $6,500 if age 50+), respectively. At other times, the information we include in our publications is based on generally accepted financial planning principles—what we typically refer to as “rules of thumb.” Continue reading ““Rules of Thumb” Can Make Financial Planning Simpler”

My Homeowners Insurance Has a New Place to Live

November 06, 2013

This November, my homeowners insurance policy came up for renewal. I’ve had my current policy ever since I purchased the home six years ago. In North Carolina, if the cost of your homeowners insurance is more than what the insurance commissioner deems a reasonable rate, the insurance company must send a “consent to rate” form, whereby the homeowner consents to pay a premium higher than the threshold set by the state commissioner. For the last several years, I’ve signed the consent without much thought, but this year I decided to shop around to see if I could get better rates somewhere else. Continue reading “My Homeowners Insurance Has a New Place to Live”

Financial Trick or Treat?

October 30, 2013

Along with the cooling temperatures and falling leaves that mark this time of year, comes the annual parade of children dressed as ghouls and goblins, marching door-to-door asking that most provocative question: trick or treat? It may seem silly when the question comes from a little boy and girl dressed up for Halloween, but when it comes to your money, how many times do you think you are getting a treat, when in reality you might be falling for a trick? The following are examples of financial tricks that are disguised as treats: Continue reading “Financial Trick or Treat?”

SPEND MORE now to SAVE MORE later

October 23, 2013

As financial educators, it is important for us to solicit feedback from end users so that we know if our education is making a positive difference in the lives of those that receive it. It is also important to report this information back to our clients, so that they can make adjustments to their programs based on the feedback we receive. Since our education is sometimes delivered through live workshops, we often have stacks of evaluations that must be mailed back to our home office in El Segundo, CA. Continue reading “SPEND MORE now to SAVE MORE later”

How’s Your Financial Health?

October 16, 2013

I visited my doctor recently for a routine physical. I’m entitled to a physical once a year through my insurance, so I make sure to take advantage of this benefit. When I visit the doctor’s office, he usually asks me if I am experiencing any particular ailments or symptoms, to which I usually reply “Not really, I feel pretty healthy.” Nevertheless, my doctor checks my blood pressure, temperature, heart rate, weight, and other vital signs. I’m glad he does this, because while I may FEEL fine, the reality is that there may be something going on inside of me that I am not aware of. Continue reading “How’s Your Financial Health?”

My Second Career as a Financial Educator

October 09, 2013

If you would have told me in 1994 that I could make a living helping people with their finances without the pressure to sell financial products, I would have thought you were joking. Back then, there was a certain esteem associated with financial professionals, and as the stock market began to rise to records levels, the idea of NOT being an investment sales professional seemed silly. So attractive was the prospect of being successful as a financial advisor that I left my first job as a 401(k) enroller after six years to pursue a life as a personal financial advisor. Continue reading “My Second Career as a Financial Educator”

Ready. Aim… Financial Plan!

October 02, 2013

I may have told you before that my daughter participates in the ROTC program at her high school. Over the summer, she joined the air rifle team and has been practicing for the last several months. I had a chance to watch her participate in her first competition this weekend. I must admit I wasn’t sure what to expect, but as I watched her and her team perform, I began to realize that there was a lot more to the sport than just putting a pellet in the chamber and pulling the trigger. Continue reading “Ready. Aim… Financial Plan!”

What Bothers Me Most About a New School Year

September 25, 2013

Well, if you have kids like mine — one in high school, one in middle school, and two in elementary school — then you’re probably in the throes of packed lunches, school buses, band practice, homework, driving kids to and from student activities, PTO meetings, and a host of other September rituals. Many of these don’t bother me, and some are welcomed reminders of why I’m glad I’m not in school anymore. But there are several rituals that always come along this time of year that always get under my skin: clothes shopping, school supply shopping and fund raising events. Continue reading “What Bothers Me Most About a New School Year”

Don’t Forget the Warranty

September 18, 2013

Just about every product manufactured on the planet today comes with a warranty, but how many of us actually read it or know how or when it applies? I for one have a tendency to assume once a product breaks that my only option is to buy a replacement, but that’s not a very good assumption. For example, I recently broke the clip off of my cell-phone holster—the thing that holds my cell phone on my belt—and I was content to just buy a replacement. As I began searching, I came across a comment from someone whose holster had suffered the same fate, and they said they called the manufacturer to request a replacement under the warranty. This prompted me to pick up the phone and to see if I could get a replacement as well, and what do you know—I did! Continue reading “Don’t Forget the Warranty”

It Never Hurts to Ask: How to Negotiate a Better Deal

September 11, 2013

About a year ago, I wrote a blog post on the importance of being assertive when it comes to managing your finances. People’s unwillingness to simply ask for more —financially speaking— has always been a pet peeve of mine. Whether it’s buying a car or bargaining at a garage sale, it never hurts to ask for a lower price or for a better deal, yet somehow as consumers we have been conditioned to just accept the price set by merchants without question; something that gets financial talk-show host Dave Ramsey up in arms. Continue reading “It Never Hurts to Ask: How to Negotiate a Better Deal”