It’s Wedding Season – Are Your Workers Daydreaming About Their Fairy-tale Day?

May 03, 2011
Royal kiss
Photo by americanistadechiapas/flickr

Now that Kate Middleton is officially the Dutchess of Cambridge, many of your workers are probably still in the midst of planning their own royal weddings as we enter the most popular months for weddings – May and June.  We Americans certainly don’t spend as much as the multi-million pound price tag of the Westminster Abbey royal ceremony, but we do spend an average of $20,000 on our own version of the wedding fairy-tale.  As the magic day approaches, your female workers might spend as much as 25% of their workdays planning their weddings, and my guess is the pending grooms spend less than a minute of their days even thinking about the event until the bachelor party begins. Continue reading “It’s Wedding Season – Are Your Workers Daydreaming About Their Fairy-tale Day?”

Make High Pay Off Financial Moves

April 25, 2011

You wouldn’t think I would get any insight about my finances from playing “Bubble Breaker” on my Palm Treo.  It seems like a complete waste of time but overall, I see playing games on my phone as a time passer – waiting at the doctor’s office to be seen or waiting for a phone call.  These little pockets of time don’t give me enough time to get something done and I hate to get deep into an article I can’t finish because I will always wonder what the outcome was.  So I play Bubble Breaker on my phone.  Even when I changed to a new phone, I keep the old one without a Sim card to play this goofy game. Continue reading “Make High Pay Off Financial Moves”

Six Steps to Follow to Help Improve Your Credit Score

April 22, 2011

With the American economy still not firing on all cylinders, unemployment at very high levels (the rate only seems to come down when people have received the maximum number of weeks’ payments and fall out of the workforce altogether), and no sure signs of economic recovery imminent, it doesn’t surprise me that one of the topics that I talk about with people on a very regular basis is how to rebuild credit scores after a period of unemployment and falling significantly behind on debt obligations.  I don’t have any data to support this, but it seems like the average credit score of all Americans has probably dropped 100 points or more in the last several years.  (I think I just found a weekend research project for myself.  Yep, I just might need a hobby.) Continue reading “Six Steps to Follow to Help Improve Your Credit Score”

Financial Planning: It Starts with a Simple Goal

April 15, 2011

When I read the article, Sumo Wrestler becomes Heaviest Man to Ever Finish Marathon, about a Sumo wrestler who ran and finished the Los Angeles marathon and in doing so became the world’s heaviest man to ever finish a marathon (~400 lbs.), I felt inspired.  If you look at most marathon runners, the LAST THING you think of is sumo wrestling.  When you look at sumo wrestlers, the last thing you think of is long distance aerobic exercise.  That’s what makes this story so interesting to me.  This guy (Kelly Gneiting), not only did something that most people would think he had no shot at doing, he has set the bar even higher.  He wants to swim the English Channel.  He knows how to set goals and not only achieve them but set them higher again after reaching the 1st goal.  Many people could learn a thing or two from him. Continue reading “Financial Planning: It Starts with a Simple Goal”

Financial Advisors Speak Financial Mumbo Jumbo

April 08, 2011

I read a great column about the financial planning/financial advisory business recently.   The column was a mock conversation between a financial planner (who wanted to look at the big picture before offering ANY advice and spoke mostly in financial industry jargon) and a prospective client (who was looking for VERY specific advice on several topics and immediate investment recommendations, “ Should I buy gold?”). Continue reading “Financial Advisors Speak Financial Mumbo Jumbo”

Top Ten Most “Foolish” Financial Decisions

April 06, 2011

It was only after my son Ethan got home from school and played an April Fools’ Day joke on me that I even realized it was April.  In the spirit of laughing at ourselves, I thought it would be fun to do my best David Letterman impression by offering what I consider to be the top ten most “foolish” financial decisions we make: Continue reading “Top Ten Most “Foolish” Financial Decisions”

Retirement Preparedness: Don’t Work Until You are 70

April 04, 2011

I read an article today titled, How to Collect Social Security and Still Keep Working?,  and found myself yelling at the computer screen in a rant similar to what I have seen my husband perform during sporting events when his team is losing.  It is out of character for me but this article got me going.  The article gives details of how much you can earn at 62 and still collect your social security and goes on to explain how income from working affects your income after you hit your full social security age (for me that is 67)  but the whole premise to me is backwards.  We CAN collect Social Security and still keep working if we time it correctly and we don’t make too much money if we are under our “full” retirement age.  But seriously, do we really want to? Continue reading “Retirement Preparedness: Don’t Work Until You are 70”

Financial Goals: Looking for Greener Pastures

April 01, 2011

My girlfriend and I joke about her country life in upstate NY (almost Canada!) versus my city life in Baltimore.  While this time of year brings blossoms and green grass in my neck of the woods, her climate is still dominated by brown grass, barren trees, frigid winds and the residue of salt from the endless maintenance of those snow-laden roads.  She laughs as I brace myself for the cold every time I walk out the door of her house.  “My weather is so much better!” I joke, but deep down I am serious.  I am always wishing her weather was my weather.  I am always wishing my drive for a visit was on my terms…green, lush, and just plain old bearable. Continue reading “Financial Goals: Looking for Greener Pastures”

How Do I Decide Which Condominium to Buy?

March 31, 2011

I was reading something the other day about how moving is one of the most stressful things in life.  Well whoever wrote that must have known a thing or two because my wife and I are going through the process right now.  For me probably the most stressful part of moving isn’t the act itself, it’s where I’m moving to.  I have lived in California my whole life and through no fault of my own (my wife went and got herself a promotion – the audacity!) we are being re-located to a bustling Midwest state. Continue reading “How Do I Decide Which Condominium to Buy?”

Ten Steps to Funding a College Education

March 30, 2011

So what does college planning look like in the real world?  That’s an excellent question, and since I don’t have a child in college yet, let me share with you what I hope it looks like:

My daughter Rachel is 12-years old.  She will be attending the University of North Carolina (she doesn’t know that yet, but she will—Go Tarheels!).  This year the cost to attend was about $6,000, so her mother and I will plan on paying for her tuition; she’ll be on her own for books, fees, and other expenses.  Her grandpa has already contributed $6,000 toward his granddaughter’s education, so we figure we’ll need to save another $280 a month to meet our goal. Continue reading “Ten Steps to Funding a College Education”

Are You Prepared for an Emergency?

March 28, 2011

When hurricane Katrina hit, the newspapers reported a location that has the greatest risk of flood from levees failing – Sacramento California where I live.  My husband and I bought a house on a flood plain.  I know it sounds stupid but after the federal government made improvements to the levees, they deemed them safe enough to withstand the 100 year flood.  Based on that assessment, housing development, retail shops, and schools were built and 70,000 people moved to the area.  After the hurricane in Louisiana, the Federal Army Corp of Engineers reassessed the levees to less than 100 year flood protection.  In other words said, “Just kidding.  There really is a flood danger. The initial assessment was false.”  The area should never have been developed. Continue reading “Are You Prepared for an Emergency?”

College Planning: A Conversation that Might Save Me $100,000 or More

March 25, 2011

One night not too long ago my daughter and I had a really good conversation about life, choices people make, who we like in this year’s American Idol (James!), and why she thinks her milkshakes are better than any that you can buy at an ice cream shop.  I’m sure there were plenty of other topics discussed too, but those are the ones that I remember the most.  And, she REALLY can make a mean milkshake!  Hey, a dad has to make sure that his kids don’t lie, right??? Continue reading “College Planning: A Conversation that Might Save Me $100,000 or More”

How Do I Know My Donation is Getting Where I Want it to Go?

March 24, 2011

With the unfortunate events that have befallen most recently Japan and Haiti a year ago, many people are choosing to dig deep in their pockets to donate cash to help in whatever way they can.  The reasons why we donate can be quite different but one thing is consistent, we want to know that our donation is going to first, the organization that we choose, and second, the people who will benefit.  So what should we be aware of before we send our hard earned cash?  Continue reading “How Do I Know My Donation is Getting Where I Want it to Go?”

College Planning: The Tax Benefits of Education

March 23, 2011

Today’s blog is the last in a series addressing the different pieces of the college planning puzzle.  Last week we looked at financial aid and basically determined that no matter how much or how little we save for college, financial aid (primarily in the form of loans) will help us make up the difference.  That should provide some relief, since we would like to think that our children can go to whatever school they want to no matter how expensive.  At the same time the idea of our kids (and us) being saddled with debt right out of college doesn’t always sit well with us.  So how do we reduce our dependency on financial aid when the amount saved is not enough?  This will probably come as a shock to you (and yes, I’m being facetious), but parents and students are expected to use some of their current income to help pay for college. Continue reading “College Planning: The Tax Benefits of Education”

Money Management: Are Mega-earning Youth Receiving Too Much, Too Soon?

March 18, 2011

I read this article about Billy Ray Cyrus’ concern for his daughter Miley.  (I have a daughter, so you shouldn’t laugh at me for knowing who Hannah Montana is and being caught up in observing her personal drama.)  She isn’t the first, nor will she be the last child star to earn a fortune.  There seem to be more stories about “child stars gone wrong” than there are about those who have taken their fame, celebrity and wealth and done something good for themselves and their families.  Maybe it’s that only the train wrecks get reported – it’s not newsworthy when someone helps others or fades from the spotlight into a well balanced adult life, but that’s a different topic for a different blog.  While reading it, I started to wonder if the whole combination of youth and wealth is a poor one. Continue reading “Money Management: Are Mega-earning Youth Receiving Too Much, Too Soon?”

Financial Planning: When a Spouse Passes – How to Stay Out of the Dark

March 17, 2011

Well you knew I would be broaching this topic at some point.  In many years of financial planning I have seen numerous situations which made me sad, and which inevitably led to me becoming a financial educator.  Some of the most searing memories, and sad to say happened all too frequently, were of widows who were in the dark as to what their financial condition was. Continue reading “Financial Planning: When a Spouse Passes – How to Stay Out of the Dark”

Financial Planning: Paying for College

March 16, 2011

In last week’s blog entry I discussed some of the tax-free ways to save for education.  If you are able to save enough to fully pay for a child’s education then I tip my cap to you because that is an impressive feat.  Unfortunately, for most parents the amount they are able to save will only cover a portion (and in my case a small portion) of the full cost of education, so in this week’s blog entry I’ll focus on the next pillar of college planning known as (imagine the thunderous voice of Zeus as you read) FINANCIAL AID. Continue reading “Financial Planning: Paying for College”

Commercial Fishermen Teach Financial Planning Strategies

March 14, 2011

Earlier this week I flew home on Southwest airlines – got the A ticket so I had an aisle seat and my bag stowed and I was all settled in for my flight.  A young man in his early 30’s with a 9 month old baby was the last one to get on the plane.  There wasn’t much of a chance that he’d be able to find bin space for his bag and get situated with the baby so the young man next to me (named Steve) and I did the bag switch around, and seat switch to make it all happen so the dad could sit comfortably for the flight and not have to check his carry-on bag.  I ended up sitting between them. Rich (with the baby) was a talker and we three got to know each other on the flight home and surprisingly I learned something new about finances from these travelers. Continue reading “Commercial Fishermen Teach Financial Planning Strategies”

Retirement Preparedness: A Wake-Up Call for Generation X Investors

March 11, 2011

Talking with a group of pre-retirees, one of the people in the room (a born entertainer) used Styrofoam coffee cups as visual aids to illustrate his point.  We were talking about incomes and expenses during retirement, and he broke out into a comedy routine/illustration of his financial life.  He filled a big pitcher with water and filled the first cup, broke out a Sharpie and labeled it “Pension.”  He had been an employee of the phone company for 40 years and has a very solid pension income.  The next cup he labeled “Social Security” and he filled that cup about ¾ full.  The 3rd cup he put a few drops of water into and labeled it “Investments.”  He said the 401(k) plan arrived a little too late in his career and he had not participated until the last several years of his career, plus he had a number of children that all went to college which left his personal savings and investment balances rather low. Continue reading “Retirement Preparedness: A Wake-Up Call for Generation X Investors”