Yesterday, I had one of the most unpleasant conversations I’ve ever had on the subject of money. I had to tell a close friend of my family that, in all likelihood, he has not saved enough money for his retirement. This is a man I’ve known since I was a kid. The same man who [...]
While I always wanted to be an adult, never have I ever wished to myself to grow old. No one ever wants to grow old. At least, no one that I’ve talked to. The primary reason is that once you reach a certain age, your body starts to wear down and costs to maintain your health go up. This is the reason that I often dread talking to my grandparents. Conversation isn’t about anything other than body ailments. Whether it is someone’s hip that is hurting or movements that they can no longer perform, it never ends. Don’t get me wrong, I love my grandparents. I just don’t want to grow old. As I think about growing old and planning for retirement, I can’t help but wonder if I am totally prepared for retirement.
Retirement is the culmination of everything we worked hard for throughout the first two-thirds of our lives. It is the time when we can truly start to enjoy the fruits of our labor. Well, ideally, it should be. But what if, before you even start to enjoy your rest and freedom, you discover certain financial obligations that you never even considered before. You find out too late that there are hidden expenses that you still need to pay for regularly. That will surely burst your bubbles fast on your last day on the grind.
Grandpa might have been on to something when he liquidated his stock holdings and invested in a bond ladder. At the time you didn’t know what the hell he was talking about, but you were quite tired of hearing him talk about the risks associated with the stock market. After the reinvestment, you hardly heard a word about his retirement. His risky investments turned into an income-producing bond ladder and money troubles went away. Now that you’ve got a little money saved up, you’re wondering if a bond ladder might be a good choice for you.
Somewhere in your not-so-distant future is retirement, and there is nothing you can do to stop the clock from ticking. You will grow older, and each year you come closer to the last day of your 9 to 5 job. Since it is an unavoidable future, it is best to plan for it. Part of the planning process, and probably one of the first things you need to ascertain, is choosing the ideal time for you to retire.
If you are like most Americans, you’ll need a good plan for tapping into your home equity in retirement. Most Americans hold a large portion of their savings in equity after retirement. While equity is a nice figure to help boost your net worth, it’s more than a little troublesome to convert to cash. While there are plenty of options for tapping into home equity, there are many costs, benefits and downsides to any potential strategy.
I’m one of those weird people that believe when things go horribly wrong, the opportunity to make your situation better for the long term quietly presents itself. I realize it’s not a popular thesis to propose when we’re losing thousands of jobs everyday and 8% of the American public isn’t paying their mortgage on time, but [...]
For anyone who has grandparents, or perhaps technophobe boomer parents (like mine), you’ve probably received more than a few phone calls for technical service. Whether it’s asking for something as simple as a Google web search or rewiring a jumbled mess of cables behind their TV, it can be a bit frustrating since we’ve been [...]
If the thought of buying more low priced index funds or actively managed mutual funds leaves a bitter taste in your mouth after the stock market crash of 2008, did you know that Vanguard allows you to buy Certificates of Deposits (CDs) in your Vanguard IRA? Most people I know are very displeased with their [...]
A friend and reader of this blog posed an interesting scenario to me this week about financial planning. One that I, or almost anyone else for that matter, would be rather shocked to see waiting for them in their email inbox prior to their ritualistic 8 AM cup of java.
The S&P 500 is below 1000 and index funds are nearing decade lows. Do you know where your investments are? For edification purposes only, if you haven’t received your quarterly statements through the good ol’ fashioned snail mail just yet, take a quick peek into your online retirement account. Feeling Hulk-ish yet? Good! Me too! [...]
It would appear that the majority of Americans with retirement accounts have really been sweating it out during this latest round of Wall Street negativity. The Wall Street Journal is reporting that Fidelity’s website saw web traffic increase 25% higher than it’s all time high last week amid the flood of negative financial news. Similarly, [...]