Archive - September 29, 2010

1
Helping Young Professionals Create Wealth
2
The Best Ways To Spend Your End of the Year Bonus
3
How To Create a Budget That Works
4
7 Reasons Not To Withdraw Money From Your 401k

Helping Young Professionals Create Wealth

Article Summary:

  • Younger individuals tend to overlook seeking professional financial advice
  • Professional fee-only advisers can actually add more value to a young professional than they may realize
  • Financial planning is not just for people who need to prepare for retirement.

Call it youth. We don’t think we need help with much. And according to a few articles I’ve come across recently, young people on the whole generally don’t perceive a need for professional financial advice.

Although age is just a number, let’s assume for purposes of seeking financial advice that being ‘young’ ranges from the early 20’s to mid-40’s. And …

Read More

The Best Ways To Spend Your End of the Year Bonus

This article originated from a reader question…

For example, suppose I get, say, a $5000 bonus before the end of the year, would I be better off giving it away or putting it in 401k to avoid tax consequences, putting some in Roth IRA (if I still qualify), paying the tax bill on a conversion of some rollover IRA $$ to a Roth, paying my child’s tuition bill (too late for 529 now) to avoid debt, or replacing the 10-year old heating and A/C system to lower ongoing utility costs?

The specifics of this question are unique to the individual …

Read More

How To Create a Budget That Works

Article in Summary:

  • Successful budgeting is all about developing a system that works for you, not others
  • There are 3 different elements that help you design a successful budget
  • Not spending hours entering, categorizing, and analyzing data, is really the point of this whole exercise

First Jeff Yeager in his latest book “The Cheapskate Next Door”, then financial journalist Liz Weston. Now it’s my turn to come out of the closet, so to speak, as a financial professional who doesn’t keep a “budget”, at least not in the traditional way. Don’t get me wrong! As many of my clients can …

Read More

7 Reasons Not To Withdraw Money From Your 401k

Recently, you may have heard about a spike in 401(k) withdrawals. The evidence is not merely anecdotal. Fidelity Investments recently issued its 2010 overview of the 401(k) accounts it administers and found that 22% of participants had outstanding loans from these retirement savings plans, with the average loan at $8,650. In 2Q 2010, a record 62,000 of Fidelity’s 401(k) participants had taken hardship withdrawals – a jump from 45,000 in the preceding quarter.(source)(source)

If at all possible, you should avoid joining their ranks.


The persuasive argument against a 401(k) loan.
If you borrow from your 401(k), …

Read More

Copyright 2014 FiGuide.com   About Us   Contact Us   Our Advisors       Login