Teaching Finances to Children
Some people are better at managing their expenses than others, but money management is definitely a skill that can be learned. What some people don’t realize, however, is this that money management is a practiced skill that builds over time. Like many skills (e.g. learning a language or an instrument), learning how to earn money, […]
Sir John Templeton’s 50/50 Rule
Last month I introduced you to billionaire investor and philanthropist Sir John Templeton. This month, I’d like to look at his advice on savings. Sir John and his wife adopted the 50/50 rule — saving 50% of their income! I know this is pretty aggressive for most of us, but what should we be saving? […]
Sir John Templeton
Have you heard of Sir John Templeton? He was a billionaire investor and philanthropist. He began the Templeton Growth Fund in 1954 and it had an average annual return of 13.8% for the next 50 years! He sold the fund to the Franklin Group in 1992 and died in 2008. Obviously Sir John’s investment philosophy […]
New Fiduciary Rule for IRAs
A large number of people need help managing their long-term finances and hire someone to help them with the process. Some people don’t have the time or desire to manage their assets themselves, while others don’t know enough about the system to manage their assets well. When selecting an advisor, many people take recommendations from […]
The Importance of 403(b) Plans for CSU Faculty
Most CSU employees enroll in a Defined Contribution Plan (DCP) rather than in Social Security. If you’d like to learn more about a DCP, please see our previous blog called Retirement Planning for CSU Employees. Just like people who are enrolled in Social Security, DCP enrollees will probably not be able to afford the retirement […]
Self-Employed Retirement Plans
A 2015 TD Ameritrade survey found that 28% of self-employed people do not currently save for retirement and that an additional 40% save what they can afford whenever they can afford it. There are a number of understandable reasons why 68% of self-employed people do not have a regular retirement savings plan, but here are […]
Is a Backdoor Roth IRA Right for You?
First of all, what is a Backdoor Roth IRA? It’s merely a way to contribute to a Roth IRA when your income exceeds the contribution limit of $183,000 (for a couple filing jointly). The Backdoor Roth IRA procedure removes this restriction. It involves a simple two-step process. First you contribute up to $5,500 to a […]
What If You Won the $1.6B Lottery?
Okay, I know three folks have already won this lottery, but it was pretty exciting while it lasted. If you had won, naturally you wouldn’t receive $1.6B. You’d have to split the prize with two other winners and pay federal taxes. (Fortunately for the winners, their states either have no income tax or no taxes […]
2016 Financial Resolutions
According to a 2015 University of Scranton survey, the third-most-common New Year’s resolutions are money-related. (Number 1 is self-improvement and number 2 is weight-related.) The specific kinds of financial resolutions vary quite a bit, but a few things appear on most people’s lists. In general terms, these can be grouped into two categories — spending […]
Changes to Social Security Claiming Options
On November 2, President Obama signed a two-year budget deal that was approved by congress on a bipartisan basis. It eliminates the possibility of a government shutdown, keeps the Social Security disability fund solvent and reduces premium hikes for Medicare Part B beneficiaries. These features caused it to earn the support of AARP and the […]