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Video: Life Lessons from Clara Inkeles

               

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301 Reasons to Read Lists

Further to my entry called “Three Reasons Why I Might Be Poor When I Retire” .. I’ve had fun reading all of the lists that other bloggers had come up with. Some are obvious, some are not too obvious, some are hillarious and some are such common sense that you wonder why you didn’t think of that!

Well, I’ve been enjoying Liz Strauss’s version of a summary of all the lists .. (and a few around the ‘net surfing around the sites themselves) .. but Darren Rowse finally had them sorted out into nice and neat categories and finally made this into an “ORDERED LIST” (pun). Here are the categories:

Lists Group Writing Project - Categorized

* Blogging / Writing (1-55)
* Business / Careers (56-86)
* Consumers (87-95)
* Entertainment (96-116)
* Health & Self-Improvement (117-162)
* Hobbies (163-180)
* Home and Family (181-202)
* Law and Government (203-207)
* Miscellaneous Lists (208-222)
* Personal Finances (223-245)
* Sports (246-256)
* Technology / Internet (257-285)
* Travel (286-301)

Practically everything you need to know in “LIST” form, is above! And, because this blog is about personal finances, I thought I would link out to everyone in the Personal Finance section .. below:

223. Your Credit Card Can Earn You Money by Mooiness
224. 10 Ways to Immediately Start Saving Money by junger
225. The 10 Best Money Moves You Can Make by FMF
226. Five things I would do if I had $20,000 by Patrik
227. Your Very, Very Best Money Saving Tips by NCN
228. Why I Tithe by Nneka
229. 5 Simple Steps to Get the Most Revenue out of Ad Space by Markus
230. 5 Ways MyMoneyBlog Can Make You $100 by Jonathon
231. Fifteen easy ways to save fifteen bucks by John
232. 5 Advertising Programs that Have Earned Me at Least $1000 by Paul
233. 5 Secrets to Fabulous Financials by Single Ma
234. Four Kinds of Money Making Websites You can Start By Yourself by Peter
235. 7 Personal Finance Tips by Tim
236. Top 10+ ways to Save Money and Help the Environment by David
237. How to Organize Your Debts by Donna
238. Extended Car Warranty Do’s and Don’ts by Stuart
239. Five reasons why you should always buy in lots by Danielle
240. The 10 Things We did to Erase almost $9,000 in Credit Card Debt in Less than 6 Months by Tricia
241. List of Important Financial Documents by Jim
242. 3 Ways it costs more being a man by John
243. Three Reasons Why I Might Be Poor When I Retire by HART (1 800-HART)
244. Buying a Car the Right Way by Matt
245. Got a Dog? Here Are 5 Tips on Saving $$$ & Being a Responsible Owner by Financial Freedumb

Check out Darren’s entire List .. scan the title of all the list .. you don’t have to read them all - but I’m sure you will find something of interest!

Take care. / HART

               

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Video: Exit 57 - Financial Planning with Stephen Colbert

               

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Video: Marrying Your Finances

               

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Retirement Planning: Taking Advantage of Matching Contributions

Retirement Planning: Taking Advantage of Matching Contributions

By L. Sampson

Many companies offer matching contributions for your retirement plan. Are you taking full advantage of this opportunity to maximize your retirement account growth?

A matching contribution is one that your company matches and invests in your company retirement account. When managing you money in preparation for retirement, it is a good idea to take full advantage of the matching contribution if your workplace offers the option.

Contributing the full amount allowed

Most companies will not just contribute any amount to your retirement plan. However, most have some sort of provision, such as matching up to three percent of your income. So, if you get paid $2,500 twice a month, and the matching is three percent, the company will match your contribution, up to $75 per paycheck. This means that you should contribute the full $75 (or more) each time you are paid so that you can maximize your free money. Remember, the company’s match does not come out of your paycheck; it is a “bonus” benefit provided by the company. According to the example above, you would have $300 a month placed in your retirement investment plan — $150 from your contribution and $150 from the company.

Automatic paycheck withdrawal

Having your contribution amount automatically deducted from your paycheck is a good idea. That way, you never “see” the money, and so are not tempted to spend it. Sign up for your company’s matching contribution retirement plan as soon as you are eligible so that you won’t “miss” the money when it is gone. Having the money taken out of your paycheck has another benefit if you have a traditional 401(k): it is pre-tax, so you save money each year in income taxes.

A matching contribution can help you grow your retirement account and maximize your earnings. If your company offers it, sign up and get the most out it.

Find more information about Personal Money Management at MoneyManagement123.com. Also, visit Money Management 123 to find more Retirement Planning Advice.

Article Source: EzineArticles.com/?expert=L._Sampson

               

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10 Effective Ways To Reduce Your Expenses & Increase Your Savings

10 Effective Ways To Reduce Your Expenses & Increase Your Savings

By Edy Subiyanto

A lot of people outspend their income every month. What most people earn from their jobs is simply not enough to meet their needs; hence most people take on a second part-time job or start their own business to supplement their income from their main jobs.

In addition to finding ways to increase one’s earnings, there are several key ways through which you can reduce your expenses; manage your finances better and start saving some money.

1. Pay off or consolidate your credit cards. In order to save some money, it is very important for you to be in control of your credit cards. It is very easy to spend more than we earn because we have credit cards. You pay high interest on your credit cards, so it is important to prioritize clearing your credit card debts. If you can not pay off your credit cards yet, try to consolidate them into one credit card with a lower interest rate and one single payment in a month. By simply paying off your entire credit card bill each month or using a check, cash or debit card for purchases, you can save a lot of money each year in lower credit card interest charges.

2. Set up an automatic bill paying system. Paying your monthly household bills is obligatory, and it is important that you make this is as easy for you as possible. Set up automatic payments of your monthly bills so that you pay on time and minimize charges for late payments, which cost you money. If you can not do automatic payments of your bills through online banking, then put your bills in one place every month, and allocate a day in a month when you can pay off your bills; and it is ideal if this day coincides with your payday. By paying your bills as soon you get paid, you minimize the risk of you overspending the money you will need to pay your bills.

3. Apply for a debit card. Unlike a credit card, a debit card ensures that you spend money that you actually have. Since the money will be coming out of your own check account, you will tend to be more responsible with the purchases you will make with your debit card.

4. Have a savings account. Life can be full on unexpected expenditures, and it is important to set aside a certain amount of money every month to meet these ‘emergency expenses’, no matter how small the amount is. In the long term, the money in this account will accumulate; and should an ‘emergency’ expense occur, then you have some money to use, and you will not need to borrow any money or use your credit card. During the months when you can save more money, make an effort to put more money aside in your savings account.

5. Keep track of your monthly expenses and checkbook. Although it is not fun doing this, but if you want to keep control of your finances; then it is very important for you to keep track of your monthly expenses and checkbook. This will help you know the purchases you have done in the month, and how much money you have in your account. Most importantly, this will also help you assess the expenses you have incurred which were really ‘necessary’ and those that were not necessary, and are to be avoided in the future. This process gets easier every month, and your savings skills are also improved as you assess your monthly expenses.

6. Shop around for best deals. If you want to reduce your monthly expenses, it is essential that you shop around for everything. Make an effort to get the best deals for your purchases from your car loan to your mortgage provider. You will be amazed at how many savings you make if you shop around. There is a lot of competition in the market, and all companies are doing all they can to attract customers and increase their sales. By taking advantage of these ‘offers’, you can get some good bargains which can save you some money.

7. Use your bank’s ATMS. Although Automated Teller Machines are very convenient, they can also be costly if you do not use your bank’s ATMs. If you use an ATM that does not belong to your bank, you can get charged a $0.50 or $1.50 fee. Although this is a very small amount, in the long run it adds up; hence you end up having paid a large amount in a year.

8. Learn to live within the limits of your income. Although this is the hardest approach in helping you save some money, it is the most effective one. If you can not afford it, do not buy it. It is important for you to think twice before you buy it with money that you do not really have – like using your credit card. It is very important for you to learn to live within your income.

9. Change your spending habits. There are various expenses which you can cut down in your household, so it is essential for you to constantly identify all the ‘little’ ways through which you can save some money. Few examples of the things you can do is to refinance your mortgage or car loan to a lower interest loan, stop purchasing impulse items, avoiding eating out too often and try to do more activities at home. Once you start practicing these cost-cutting strategies, it will become very easy for you to save money. By simply changing your habits and staying committed to saving money, you can save some several hundred or thousand dollars in a year.

10. Do ‘things’ for yourself. These days, it is very easy to get almost everything done for you. Car washing, gardening or lawn mowing, carpet cleaning and car servicing are some of the various things we can do for ourselves and save some money.

By simply following the main strategies outlined above, you can start cutting your expenses today. Everyday, do something differently and in a way that contributes to you saving more money in the long term. If your needs simply exceed your earnings no-matter how much you try to reduce your expenses, then it is important for you to find ways of supplementing your income, such as starting a home-based business.

Edy Subiyanto is an independent business consultant. To find out how you can use a system to generate your own home business income, visit : www.cuteaffiliate.com or www.thesuccessublog.com.

Article Source: EzineArticles.com/?expert=Edy_Subiyanto

               

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Six Random Links: August 22, 2006

Here are six items that I found in my Bloglines .. I thought they are interesting enough to pass along for your perusal! …/ HART

(1) Retirement plan requires updating and adjusting - www.courierpress.com/

(2) Einstein On Compounding Interest (Rule of 72) - investorial.com/

(3) How Compound Returns Favor The Young - www.getrichslowly.org/blog

(4) Deciphering the New Retirement Law: H.R.4: The Pension Protection Act - prlawinc.typepad.com/

(5) 10 Retirement Planning Mistakes - retireplan.about.com

(6) Pension Act Shapes Future - www.kansascity.com/mld/kansascity/

               

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Will Women Face Financial Hardship in Retirement?

Will Women Face Financial Hardship in Retirement?

By Debra Lohrere

The looming hardship that will be faced by many of the baby boomers once they retire could well affect women a lot harder than men. The likelihood of the government being able to afford any sort of reasonable amount of pension is very slim, simply because of the magnitude of the number of people who will be retirees, compared to the working population. The Australian government has realised this, and that is why they introduced the compulsory employer paid superannuation scheme and are even now beginning to give financial incentives to Self-funded retirees. They are also now encouraging people to work well beyond the 65 year barrier.

Most people have never sat down and even considered the ramifications of why the compulsory super was introduced and for many of us it is a matter of too little too late. Even for the young women in our society – who have a full working life ahead of them, they still cannot rest assured of a comfortable retirement.

Why is this? It is because that unfortunately even with contributions at the current level of less than 10%, someone on an average wage who works continually for 30 years, is still going to find themselves trying to survive on an income equivalent to less than $20,000,00 per annum in today’s dollars.

You will notice that I said continually working for 30 years. This is another reason why women are particularly disadvantaged, firstly because they often have to take up to ten years leave from the workforce to raise children, secondly because women in general earn less than their male counterparts and thirdly because an enormous proportion of the women in Australia, will never have received any previous superannuation contributions, prior to the compulsory superannuation being introduced, and will therefore not have had contributions made over their entire working life so far, giving them even less to fall back on by the time they retire.

Many women may previously not have thought of lack of superannuation contributions as being a problem, as their husbands may have been contributing to super since they first began work. Unfortunately though with the high number of divorces in this country, it is unwise to rely on the fact that your partner’s superannuation will be there for you in your retirement years and even if a large proportion is awarded in a settlement – that it will be sufficient to sustain a comfortable retirement for any length of time.

All of these factors are why women now more than ever, need to begin taking action to build up a source of ongoing income, that will grow to such an extent, as to be able to provide a secure and happy future for themselves and their children.

It needs to be a source of income that is unrelated to physical work…that is an income that is generated from income producing assets – and not from our personal efforts. One of the best sources of creating this ongoing income stream is to begin building an investment portfolio property, also aptly paraphrases as bricks and mortar.

We need to start collecting income producing assets now, so that they will have time to grow and develop so that we will be financially independent for our retirement years.

Property is one of the best types of income producing assets, mainly because through gearing, which is borrowing other peoples money to supplement our own, we are able to control assets of a far greater value, and benefit from the growth on the overall value, including the borrowed portion, in contrast to only benefiting from the growth on the small portion of our own money contributed.

For example, if you have $10,000.00 invested at 7% compounding, then in ten years it will grow to around $20,000.00. If on the other hand you have used that $10,000.00 as 5% deposit on a $200,000.00 property, which grows in value by 7% per year, then after ten years the property would have grown in value to nearly $400,000.00 giving you a profit of almost $190,000.00 instead of a profit of $10,000.00 had you just invested your own money. After 30 years your money alone would have grown to just over $76,000.00 and the geared property would have grown to more than $1.5 million.

This example of course has not taken into account the initial purchasing costs involved to secure the investment property, nor has it taken into account the rental income that you would also be receiving….I have simply used it to demonstrate that the more assets that you can get working for you, the better off you will be.

Debra Lohrere is the author of Creating Financial Security through Property Investment www.lulu.com/content/162236 and How to Research Investment Properties www.equilibriumbooks.com/investment.htm. Please visit her website at debra.lohrere.com/home.shtml

Article Source: EzineArticles.com/?expert=Debra_Lohrere

               

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Retirement Then vs. Retirement Now

Retirement Then vs. Retirement Now

By Rick Ramos

Most of us dream of a retirement of travel, relaxation and nothing but free-time. But, if you’re in that majority are you in the minority of those actually saving for your golden years? Only about 30% of Americans are actively saving for life after 65 and only about 25% are confident of their ability to afford it. The scariest statistic of all? Almost half of the workforce have no retirement plan in place at all.

Some of the statements I have heard in my meetings with clients about their retirement: our budget is too tight, we are going to start next year, I am not worried about it right now. The list goes on and on but the thing I find when I probe a little deeper is fairly simple: People are afraid. They are afraid of what they are not doing, they are afraid of the costs but mostly they are afraid of the unknown. Americans simply don’t know how they are going to retire.

Take a look at what has changed in the workplace. Two generations ago the average retirement age was between 60 and 65. People worked, retired and then began the golden years and lived to 70 or 75. One could reasonably work for about 40 years and retire for 10 to 15. At retirement the company you worked for most of your life gave you a pension. The government took care of the rest with social security.

Now, fast forward to the present. Most people change careers an average of four times. The modern economy of buyouts and constant advances in technology make working for one company unrealistic. Pensions have been frozen, rolled into different plans or simply eliminated. People want to work until age 50 or 55 but now can feasibly live well into their eighties or even nineties. To top it all off there is the very real possibility that social security as we know it could be gone or radically changed by the time you reach retirement. You now have a generation that is faced with the possibility of being retired longer than they worked and with less security to get them through!!!

If that isn’t enough consider a few things. In my experience my clients’ above average home costs approximately $275,000. The cost for college is currently about $120,000 per child for a decent four-year school. The average retirement needed to fund a comfortable lifestyle? That number is between 1 and 2.5 million. Even if pensions and social security were anticipated to be intact they would only fund a portion of what the average (yes I said average) American wants to retire on.

There is no hope is there? Of course there is but you have to make retirement a priority and utilize the tools necessary to make sure you can retire. But, the way you can do that is very simple. Realize the power of saving early and then combine it with the power of compound interest. Yes, pensions are numbering fewer and fewer but they have been replaced by the 401(k), 403(b), 457, Traditional IRA, Roth IRA, variable and indexed annuities and the list goes on and on. What do all these things mean? Well depending on who your employer is and how educated you are about these vehicles you probably have one or even several different accounts in your household.

The reason pensions and social security are in their current state comes down to the basic principle of money. They have simply become too expensive for one entity (a company or the government) to assume all the administrative costs as well as the risk. Plans like the 401(k) are designed to minimize risk to the company by putting the onus on you, the employee, to choose which investment to place your money. The problem is two-fold: people are not saving enough and most people have no idea where to invest. It is simply not enough to set aside 2% of your income (the national average) and yet most people are aware that they should be saving at least 10%. You also cannot continue to look over the shoulder of the person in the cubicle next to you as they build their portfolio. How many people ask their brother-in-law the plumber what mutual funds he has? Does the manager of customer service really have a handle on what bond fund is best in the company retirement plan? Do you really believe that the issue of Money Magazine that you buy once a year holds the answer to all your questions?

The average investor in this country gets less than a 3% return on their investments. Yet, the stock market has averaged over 10% for any ten-year block of time for the last 75 years. In order to understand how to best leverage assets today so you can live comfortably tomorrow takes a couple of steps. The first is to do an honest analysis of your cash-flow to figure out what you live on and what you can save. The second, is to then use those savings and get them working for you in the best way.

There are two ways to make money: you can work to make money or you can have your money make money. We all know how to work but we don’t know how to make our money work. Fortunately, there are a lot of educational tools and resources available. Most people don’t realize that if their company offers a 401(k) or similar account they can contact the custodian of that plan for investment advice. Many providers like Fidelity, Vanguard, and American Funds have a phone support and even web-based assistance. There is also an abundance of financial professionals that are affiliated with banks, insurance companies and investment firms. This is often a great option when someone wants an objective look at their overall picture. They have the tools and expertise to assist you with a cash-flow analysis and help with your retirement goals. Many will even give you an initial consultation at no charge. There are also hundreds of websites with information about the different vehicles and ways to save.

Ultimately, the decision to take a hard look at retirement must be one of commitment. Many want to do it but wait far too long. When faced with a procrastinating attitude I always respond by saying: You can borrow the mortgage on your house, you can borrow money and apply for scholarships for your child’s education but you cannot borrow your retirement. Take action to get your retirement picture clearer sooner rather than later. A thorough analysis at worst will give you a solid place to start.

Rick Ramos is a financial professional and registered representative. His licensing includes the selling of securities. He also carries a certificate in continuing education for retirement planning in the state of Illinois.

Article Source: EzineArticles.com/?expert=Rick_Ramos

               

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An Estate Planning Primer

An Estate Planning Primer

By Bill Willard

An estate plan can be designed by clients and their professional advisors to achieve the client’s personal and financial objectives. Or, it can be an arrangement imposed upon survivors by state intestate succession laws if someone dies with¬out a valid, up-to-date will. Even though a will is the most basic estate plan¬ning tool, two out of three Americans die without one.

A comprehensive estate plan can arrange the ownership, management and distri¬bution of your assets in ways that meet your needs and objectives while mini¬mizing estate shrinkage. Without such a plan, whatever you may think is going to happen to your estate after you’re gone probably won’t.

• Estate settlement and distribution – Estate transfer is a privilege that can be exercised only by following specific legal procedures designed to protect the rights of deceased’s heirs. Estate settlement, as this process is called, involves the assigned executor making an inventory of the person’s business and personal assets, paying all debts and claims against your estate, identifying the legal heirs of the remaining estate assets, and distributing those assets accordingly.

• The problem of estate shrinkage – The costs associated with estate settlement include funeral expenses, medical bills, legal fees, administration costs and other debts, as well as various federal or state taxes. These costs can drastically shrink the size of your estate. Because they must be paid before the estate can be fully settled, they can also delay distribution of your remaining assets to your heirs.

• The need for estate liquidity – Estates are often cash poor. Unless sufficient liquidity has been provided, the forced sale of nonliquid assets to pay settlements costs can compound estate shrinkage. In these situations, the buyer always has the upper hand. But even people of modest means who never considered themselves rich enough to need much estate planning can be in for a shock. In addition to having to settle-up with Uncle Sam and state tax collectors, creditors must be paid in full before a taxpayer’s heirs can receive their inheritances.

• A false sense of security about estate taxes – Part of the problem may be that people are so concerned about reducing their income taxes, they forget that the federal estate tax rate is virtually double the income tax rate. Actually, anyone with at least $600,000 in assets has a potential federal estate tax liability and may also face state death taxes. Federal estate tax laws, particularly the unlimited marital deduction, have lulled many taxpayers into a false sense of security. Even with a will, anyone who thinks “leaving it all to my spouse” is the way to avoid estate taxes and other estate settlement hassles needs to think again.

• The marital deduction is an important estate planning tool. It provides that any assets passing to a surviving spouse pass tax free at the time the first spouse dies (assuming the surviving spouse is a U.S. citizen). However, the marital deduction ends after the first death. Unless the surviving spouse remarries, the real impact of the federal estate tax is felt at the sec¬ond death. In fact, the bill may even be higher if the estate continues to grow.

• The “second-death” problem – How big a mistake can it be for an estate owner to leave everything to his or her spouse under the marital deduction? Consider this example: A married couple with two children each have assets of $1 million, which they intend to leave to each other under the unlimited marital deduction. If the husband dies first and leaves his entire $1-million estate to his wife under the unlimited marital deduction, his taxable estate will be zero. As a result, how¬ever, if the wife does not remarry, her gross estate at her death could be $2 million, under the unlikely assumption that the assets will not appreciate. Without some careful estate planning, the federal estate tax could take a big bite out of the children’s inheritances at their mother’s death.

Meeting estate planning objectives. If an estate is going to be big enough to tax, a will is just the beginning. The client may also need to do some additional estate planning to meet other impor¬tant objectives:

• Avoiding probate

• Reducing or eliminating estate shrinkage

• Providing sufficient liquidity to cover estate settlement costs

• Minimizing federal estate taxes and state death taxes

• Providing for the orderly disposition of a business or professional prac¬tice

• Maintaining the family’s lifestyle and meeting other financial secu¬rity objectives,

To avoid making mistakes, people need professional advice from a qualified attorney, trust officer, accountant or other financial advisors. Estate planning has helped countless numbers of people reduce their estate tax liabilities and prevent the needless loss of business and other assets.

Remember, however, that while tax savings may be a primary issue, they’re not the only issue. Estate planning is also a way for people to reflect, perhaps for the first time, on what they’d like to have happen to their property after they’re gone. Much of the cost and inconvenience of estate settlement can be reduced or eliminated during a person’s lifetime. It can be done by making decisions to imple¬ment strategies for conserving and distributing your assets most advantageously. Among these strategies are the use of:

• Jointly owned property

• Lifetime gifts

• Wills

• Trusts

• Life insurance

Planning to provide for a family’s needs at the household head’s death is essential, especially if the employer’s pension option is “single payer.” Annuities offer the security of a guaranteed death benefit, which passes to the owner’s named beneficiary(ies) free of the costs and delays of probate. With some annuities, a spouse who is the primary beneficiary has the option of assuming ownership of the annuity and continuing to accumulate money on a tax-deferred basis.

Retirees should continually review their estate plans because life’s changes often create a need to alter these arrangements.

Want More? Send questions and comments to w.willard3@knology.net

Bill Willard has been writing high-impact marketing and sales training for the financial services industry for over 30 years. Through interactive, Web-based “Do-While-Learning™” programs, e-Newsletters and straight-talking articles, Bill helps agents and advisors get the job done: profitably improving performance, skipping expensive mistakes, and making the journey to success faster, smoother, easier. And fun!

Article Source: EzineArticles.com/?expert=Bill_Willard

               

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