Imagine you’re about to set out on a road trip. You would absolutely need to have an idea of where you wanted to go – north, south, east, or west. You would have to work within the confines of how much time you had for this trip – that would determine how far you could go. Your financial goals are no different than that road trip; failing to plan means planning to fail. Even if you haven’t given retirement much thought, in terms of what it looks like and feels like, chances are you have an idea of when you would like to have the freedom to walk away. For those of you bemoaning that you will need to work until you die, it’s time to see if that is really true or simply your worst fear taking over and freezing you in your tracks. But, you have to set your goals. You have to make this a priority. The trouble is, unlike the mortgage payment or electric bill, there are no immediate ramifications if you don’t take the time to do this. It is important, but it is not Read on...
When the Meter is Running Out on College Planning
Your child is just a few years away from going to college, and the acid in your stomach is churning. You worry if you will have enough; you're mad that you didn't focus on this sooner. Desperation is a dangerous thing. It can cause reckless behavior -- a gambler's mentality of, "Let's try and hit it big!" Of course, anything that can rocket can plummet; that's the way it is with investing. When any goal is short-term (5 years or less), the money needs to remain "safe". You can't afford to lose it now. So, what can you do? First, understand that you still have time to position yourself in a more favorable light to receive financial aid. Colleges start looking at your finances from January of your child's junior year to December of your child's senior year (the look back period -- "LBP"). Effective 2017, they are changing this period to the "Prior, Prior Year" ("PPY"); meaning your finances will come under scrutiny from January 1 of the child's high school sophomore year to Read on...
College Bound Concerns
Anyone who has a child getting ready to start college for the first time probably has a list of concerns a mile long. Among the worries is the handling of money. Whether your child is going away or staying home, there is a real opportunity to start your son or daughter on his or her first journey into financial responsibility. While it might be hard to look at your "baby" as an adult handling money, there's no time like the present to learn these important lessons. These tips will help your child get off to a strong start. 1. Consider what income sources are available. Will your child save money over the summer or have a job while at school? Will you be supplying extra money? 2. Decide on who is paying for what. Sit down and be clear about what you are paying for, and what you are not paying for. This will allow your child to ballpark what his/her expenses might be. Go shopping together so your child can get a real sense of what things cost; then put together a rough budget. 3. Look Read on...