ManagingMoney.com Money Blog

Is 10% Enough for Retirement Savings?

Wed, 17 Mar 2010 05:32:05 -0800

A common rule of thumb when planning for retirement is to save 10% of your gross income during your working years. Since this rule of thumb has been around for a long time, it's logical to question whether it's still an appropriate guideline. Several trends suggest that it is probably on the low side:

Caught in the Financial Middle

Thu, 11 Mar 2010 05:41:57 -0800

At a time when baby boomer couples should be saving for their own retirements, many feel squeezed by competing financial needs. Having started families later than past generations, their children may just now be entering college or still living at home. At the same time, aging parents may need financial assistance. It is a dilemma that is likely to become more common in the years to come.

The Problem with Using Average Returns

Thu, 04 Mar 2010 06:00:35 -0800

When setting up an investment program, the assumed rate of return is typically an average return for some historical period. While that is generally viewed as a conservative approach, there are some problems with using an average return:

Finding Money to Save

Thu, 25 Feb 2010 06:10:23 -0800

Everyone knows that they should be saving at least 10% of their gross income for retirement, but that can seem like an impossible goal after paying all your bills. However, don't just figure that goal is unachievable without first looking at the after-tax cost.

Updating Your Documents

Mon, 22 Feb 2010 05:55:36 -0800

Whether this is your first, second, or subsequent marriage, take a look at major legal documents to see if changes are needed. Even if you've been married for a while, it's not a bad idea to review these documents:

Life Insurance Mistakes

Wed, 17 Feb 2010 05:50:04 -0800

Life insurance can be used for a variety of personal and estate planning needs. To ensure your life insurance policy meets your needs, watch out for these common mistakes:

Estimating Your Retirement Savings

Thu, 11 Feb 2010 07:11:29 -0800

When determining how much to save by retirement age, several variables must be considered, some requiring estimates that will span decades. Err significantly on those estimates, and you can end up with little or no money left during the later years of your life. Three of the most significant estimating mistakes to watch out for are:

Moving Slowly into Retirement

Wed, 03 Feb 2010 06:10:21 -0800

For most of your working life, you've looked forward to the day when you can quit your job and start enjoying retirement. But in recent years, talk of longer life expectancies, uncertain Social Security benefits, declining pension benefits, unknown inflation rates, and low retirement savings made retiring at a relatively young age seem difficult. Then, in the past couple of years, declining investment and home values made it seem even more difficult to retire at any age. More and more people are coming to the conclusion that either retiring later or continuing to work during retirement is necessary.

Calculate Your Personal Financial Ratios

Thu, 28 Jan 2010 06:09:13 -0800

When reviewing the financial health of a company, it's common to look at financial ratios, such as earnings per share, price/earnings ratios, book value, and total return. The reason financial ratios are so popular is they give you a means to evaluate financial information, while allowing you to track changes over time.

Why Budgeting is Necessary

Mon, 25 Jan 2010 06:14:12 -0800

A budget serves as a road map for your spending, helping you find ways to save more money for your financial goals. For a one-month period, keep track of every dollar you spend, whether by cash, check, or credit card. Break down those expenditures by category and total them for the month. Are you surprised by how much small expenditures add up over a month? Did you realize how much you were spending on things like dining out, clothing, and impulse purchases?

Teaching Financial Lessons to Children

Wed, 20 Jan 2010 06:10:10 -0800

Even though it seems like money and financial topics are discussed everywhere, these are not concepts your children will learn automatically. Some of the most valuable lessons you can teach your children involve basic money concepts, such as the value of saving and investing. Below are seven strategies you can use to help teach these concepts:

Home Equity Loans

Tue, 12 Jan 2010 05:26:24 -0800

When home prices were increasing, home-equity loans were a convenient way to finance numerous types of expenditures. While the loan is secured by the home's equity, the proceeds can be used for anything, including expenditures that have nothing to do with the home. In addition, home-equity loans have a significant advantage over other forms of consumer debt -- interest paid on up to $100,000 of home-equity loan proceeds can be deducted on your tax return if you itemize deductions. Home-equity loans typically offer competitive interest rates, usually no more than prime rate or 1% or 2% over prime. Competitive interest rates combined with tax deductibility can add up to very attractive after-tax rates.

Tips for Achieving Your New Year's Resolutions

Tue, 05 Jan 2010 05:46:59 -0800

How often have you drawn up an ambitious list of New Year's resolutions, only to find you've given up on them after a few weeks? Don't let that happen to you in 2010. If you want to make significant strides toward achieving your financial goals, determine why your resolutions have failed in the past and find ways to overcome those obstacles.

Regularly Review Your Estate Plan

Tue, 29 Dec 2009 07:36:05 -0800

Between the fluctuating stock market and declining home values, the value of your assets has probably changed dramatically over the past couple of years. Thus, you should probably take a look at your estate plan, considering the following:

Reassess Your Portfolio During Market Volatility

Wed, 23 Dec 2009 07:41:20 -0800

The recent market volatility has been more pronounced and of longer duration than many expected, making it difficult to determine how to adjust your portfolio. Should you leave it alone, hoping the market will quickly rebound to much higher levels? Or should you sell everything and stick your money in cash accounts? The appropriate answer probably lies somewhere between those two extremes. What you should do is thoroughly review your portfolio and make any necessary adjustments. Consider these tips when analyzing your portfolio: