Savings

Do We Want to Put This F.I.R.E. Out? Part 3

Do We Want to Put This F.I.R.E. Out? Part 3

In Part 1 of F.I.R.E., we explored the meaning behind the movement and the different variations, while Part 2 of F.I.R.E. provided some context on common misconceptions. With that backdrop, we are going to outline how to quantify your definition of F.I.R.E.

The Importance of an Emergency Fund

The Importance of an Emergency Fund

Living through the current pandemic has taught me to appreciate many things that I previously took for granted. Traveling on a plane, walking down busy city streets, or simply sharing a good meal at a restaurant with friends comes to mind. The global health crisis has also reaffirmed an appreciation for an emergency fund from a financial planning aspect.

New to A 401(k) Plan?

New to A 401(k) Plan?

In 2006, the Pension Protection Act (PPA) was passed which introduced tax incentives for companies to adopt automatic enrollment and deferral increases. Since 2006, many plan sponsors have implemented automatic enrollment which was designed to positively influence employees’ behavior to improve their retirement savings.

SECURE Act

SECURE Act

According to Northwestern Mutual’s 2019 Planning & Progress Study, 17% of baby boomers have less than $5,000 saved for retirement and 20% have less in personal savings. With an increase in longevity and decreased purchasing power, more individuals have to supplement Social Security income with personal savings during retirement. According to the US Bureau of Labor Statistics, only 55% of the adult population participated in an employer retirement plan in 2018, and Vanguard reported that the median 401(k) balances for individuals age 65 or older are $58,000.

Tips to Save More Money: All Those Little Things Add Up

Tips to Save More Money: All Those Little Things Add Up

There are many self-proclaimed financial experts who like to stand up on their soap boxes and disparage ordinary people for how they spend their hard-earned money. The most commonly referred to “waste of money” is your morning coffee. There is even a website that will calculate how much you would accumulate if you didn’t buy your morning coffee and instead invested it. Suze Orman and Kevin O’Leary are two financial experts who refuse to pay for a cup of coffee because they think it’s like throwing money away.

Is Inflation Good or Bad?

Is Inflation Good or Bad?

Inflation has been a popular topic of late.

In his press conference to announce the Fed’s decision to cut interest rates following its July meeting, Fed Chair Powell cited “muted inflation pressures” as justification for action.

However, retaliatory tariffs between the U.S. and China have raised concerns this could spark inflationary pressures as consumers are forced to pay higher prices.

It's Not Always as Simple as "Spend Less, Save More"

It's Not Always as Simple as "Spend Less, Save More"

The story of the millionaire next door has been told at nauseum. Since authors Thomas J. Stanley and William D. Danko first released their book “The Millionaire Next Door: The Surprising Secrets of America’s Wealthy” in 1996, the book’s themes have been used as an attempt to promote good savings habits.

529A Accounts: A Way to Save for Disabled Beneficiaries

529A Accounts: A Way to Save for Disabled Beneficiaries

According to the US Department of Agriculture's most recent annual estimate, it will cost a middle-income family $233,610 to raise a child to age 18, ignoring college and inflation. This is a staggeringly high number, but the cost to raise a child with special needs can exceed that number by 5 or 10 times, depending on the child's condition.