Menampilkan postingan dari Juni, 2004

8 spending habits that eclipse your savings

Poor spending habits can snuff out your savings, just like the moon snuffs out the sun in a solar eclipse. The sun comes back out, but will your savings?
Today many of us in the US got a celestial treat: the first total solar eclipse in nearly a century. At the place where I work there is a high concentration of technical people, so we were all geeking out outside and enjoying the show, complete with pinhole cameras, polarizing sheets, colanders, and eclipse glasses.
Spending habits can be the difference between night and day
Just like the moon covers up the light of the sun, poor spending habits can cover up your savings, and then some.
Spending less than you earn is what responsible personal finance boils down to. Nothing else is sustainable in the long run.
Here are eight spending habits that are best to avoid if you want to save money and have good personal finance:
· Large student loans. A college degree is an income-booster, generally. There are also insanely expensive wa…

12 Strategies to Generate Income in Retirement

When it comes to saving for retirement, maybe you've done everything right. You started early, maxed out your 401(k) plan, invested in a diversified portfolio and avoided costly mistakes, such as cashing out your retirement plan. Fantastic. But now comes the hard part: making sure you don't outlive your money.
That's a tall order for today's retirees. Taxes, unpredictable investment returns, rising health care costs and inflation down the road can significantly erode the value of your nest egg. And perhaps the biggest challenge is that you'll probably need the money for a long time. A 65-year-old man has a life expectancy of 19.3 years; it's 21.6 years for a 65-year-old woman. If you're married, there's a 45% chance that one of you will live to age 90 and a nearly 20% chance that you or your spouse will live to 95.
Fortunately, there are steps you can take to generate extra income and extend the life of your portfolio.
1. Put Your Money in Buckets
A bear…

11 ways to protect your money, and sanity, as you age

As an old financial goat, I often get questions about aging from clients, seminar attendees and readers — even by email. I've no wondrous wisdom, but here are my 11 most offered tips that I sense few undertake:
1. Take seriously the need to finance a long life: You’ll likely live lots longer than you expect. Lifespans keep increasing and will continue to. In 1952 expectancy averaged 68.6 years. By 2006 it was 77.8. If you and your spouse are 65, odds favor one of you hitting 90. Maybe older! Invest as if you'll reach that milestone. Doing otherwise invites aged poverty. Little is more brutal.
2. Be clear early about family-support limits: Before it arises, decide with your spouse the limits on what you will and won’t do to support family members. Too much or too little causes bad outcomes. If the topic of support comes up, and you didn’t plan in advance, you will be too emotional and likely over or under give. Planning early saves relationships later.
3. Con…