Death of the Stretch – IRA

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Posted on February 14, 2012 by jmh

What does a highway have to do with your IRA and retirement planning? Please so it isn’t so Joe; but if law makers get their way the super powered IRA called the “Stretch IRA” is doomed. In the latest highway and transportation funding bill, language is buried deep within that would kill the stretch IRA for most non-spouse inheritors.

Translation: the ability to select an option to delay taxes on inheriting your parents IRA or even the ability to “disclaim” the inheritance and pass it down the line to kids and grandkids is severely in jeopardy. If you’re forgotten exactly what the Stretch is or how it works, here is a very brief refresher:

Typically when the owner of an IRA dies, the spouse will hopefully inherit the IRA as a named beneficiary (read previous blog about the horrors of naming the estate as beneficiary of your IRA). And as such, the spouse can either rollover the entire IRA into their own IRA and if much younger than the dead spouse, can push back paying the taxes for many more years. It is also extremely wise to name contingent beneficiaries even if the primary beneficiary is likely to want to inherit the IRA. Naming contingent beneficiaries is just a smart thing to do.

The stretch is so valuable an option because when the children or grandchildren are able to inherit the IRA, their age and current life expectancy will push back paying the taxes for a crazy amount of time. But this is about to all change; unless you contact your Washington delegate and give them a piece of your mind; before they take a piece of your future net worth.

Under the new proposal (you may find the actual law here) and learn that unless the deceased IRA is converted fully to a ROTH, no more stretch, Armstrong. Thus, if your parents or grandparents left an IRA to you, the entire amount of the IRA would have to be received within five years of the death and 100% of the income taxes will be due and payable. This really stinks. Currently most IRA’s are taxed when money is taken out of the IRA wrapper and at age 70 ½ the owner is forced to remove money and thus forced to pay taxes. Pushing back the requirement to take money out of the IRA wrapper is the key to having your money explode to the upside due to the phenomenal power of compounding interest.

No good thing ever last forever and this is one that is slated to end unless the new law is struck down. For more ideas on your IRA or 401k and rollovers, or help, advice and tips for your retirment and local financial planning, please contact My Money Track.

Married and Bored or Single and Lonely?

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Posted on February 9, 2012 by jmh

Which do you prefer? It’s Valentine’s time of year yet more and more people are finding themselves still single; or maybe single “again.” The holidays and the super bowl are behind us and spring is months away; so now is the time to focus on finally finding the romantic relationship of your dreams. But then the reality of the drag of dating, the time consumption, the dead beats, losers and emotional wrecks “out there” slap you in the face.

Hey we are all getting older and maturing. It’s not a simple task to find a reason to get out of your routine to go out on a date. And if your’re a Baby Boomer and the last time you were dating Cher still loved Sonny, William Shatner had a waistline, go-go boots were all the rage and you could actually hear yourself talk in a bar, you’re in for quite a ride and awakening in 2012. You can’t fix the other person but you can be the best “You” can be by following three simple steps:

The Uniform: don’t fool yourself; think of dating as an activity or even a “sport.” It takes not only time but “equipment.” Things like a nice outfit or shirt, new jeans or skirt and a new hair cut (and maybe color?). You must be ready to present the best “you” possible. And the mental resources must be ready to go as well. You know, have the high energy, bubbly personality and quick wit replies off the cuff to keep it interesting. Be willing to put the time into writing cute intriguing emails for Internet dating, etc. You need to be the type of person “you’d” want to hang out with… and you’ll need a little extra cash to be able to pay your share of the movie tickets or dinner (guys be prepared to foot 100% of the bill and gals, if you want to impress a guy, occasionally pick up the tab but neither never blow your personal budget). Personal financial or investment advice helps here as well.

Be the Ball: forget the past, it doesn’t matter what happened to you last week or last year, no one really cares. Everyone has their story of hurt and betrayal (blah, blah, blah); you need to be the fresh start person. Who cares that the “ex” got you mother’s china in the divorce, or Aunt Sally’s serving platter, get over it. Make sure you are over the past relationship(s) before you set the course for another one. Ask your friends what they think and if they believe you are ready to date. Or seek out local professional advice, or support groups for help.
Balanced Budget makes life content

Practice makes perfect: Okay so you have a life and don’t really “need” anyone else. It’s hard to remember what “you” were like pre-marriage and before divorce and how much your wants/needs/must haves were blurred and modified over the years to suit your ex. Now that you’re single, you don’t have to answer to any bell or whistle; you can lounge around all day in your underwear or spend the entire day without make up or not shaving. And good for you if you’re digging that laid back all-about-me scene. But that bird won’t fly and that dog won’t hunt in the dating game. Make certain you are prepared to give back a little and throttle back on the strident attitude of been-there-done-that routine. Cut the other person a little slack. And while you do not want to fall in love with a walking financial mess, wait a while before prying into their investment history or finding out if they have an IRA, 401k or life insurance!

You’re single, you’re a parent and most of all, you’re busy. And if you’re even a tad bit sociable, then you’ve got a full plate. But you’ll have to make time for the new person in your world. Again, be sure you’re ready for this. After all when you’re single and decide to treat yourself to a new golf club, shoes or purse, there’s no partner throwing a wet towel on your idea or to wag a disapproving finger. If you want to stay up all night watching TV and eating snacks, no one is there to nag. There’s a lot to be said for the single life, and if that’s how you’re feeling, then this may not be the right time to start dating again. Eventually you want to build for yourself a romance “annuity,” one that pays you emotional dividends for the rest of your life.

But since it’s Valentines time again, having a partner in your life can be enriching, motivating, thrilling, rewarding and downright fun. Eventually you’ll weigh the benefits of being someone’s “significant other” against those of being solo. Factor in also the benefits of a partner when it comes time for the annuity of social security and other financial aspects benefiting a “couple.” An local advisor can help you and provide best advice on this issue. When you’re not really looking is when your mate will appear; and you’ll know in your heart that it’s time to leave your “single” comfort zone.

And just so you know, you are special….

Secrets of Social Security: Real Life Changer

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Posted on January 26, 2012 by jmh

Geece and the problems with Greek austerity mandates may be a foreboding insight for the USA. Today many Seniors and Baby Boomers are planning on working much later in life due to many reasons, with “need” being the most common. The past twleve years has not been easy or kind to retirment plans; 401ks and IRAs have been decimated. Seeking local help and advice for boosting your personal budget and income is where My Money Track excels; Hope is not an investment plan. Vision without action is a dream and action without direction or vision is a waste of time; especially in planning for future income. However; using a combination of little known tricks in maximizing your social security retirement income benefit along with tax free income alternatives will net you more money now and later. What are they; the double dip and file and suspend strategy. Here’s how it may work if you’re married:

The longer one delays filing to take their own Social security benefit, the larger it will be in the future. At age 70 the amount of income will max out; thus no need to wait past this age. Assuming that you and your spouse are both at least “full retirement age,” (aka FRA) and both work but one spouse earns more. One spouse that has worked enough to earn their own social security benefit may still be allowed to choose between taking their own benefit or take instead an amount equal to half of their spouses benefit. For simplicity let’s assume that both spouses are the same age (high school sweethearts perhaps) and each of their monthly social security income benefit today at age 66 is $2,000 but by waiting until age 70, their individual benefit increases to $2,700 monthly.

The extra $700 per month by delaying is an extra $8,400 per year for them! That’s a lot of extra money but one must consider the “lost monthly” income from social security for the past four years while waiting. The Secret is you can have you cake and eat it too!

One spouse will file for social security benefits and then immediately the other spouse files for the spousal benefit. Waiting for one month, the first filer will then “suspend” their social security payments and the clock for increasing the benefit later until age 70 begins again.

Even though both spouses are still working (full or part time) an “extra” free check is now coming monthly from social security. If you spouse earns much more than the other, the higher earning spouse should be the one to file and then suspend. This is a no brainer. Even better, if for some reason this strategy doesn’t suit you, you are allowed up to 12 months to re-pay the money received and get a completely free “100% DO OVER!”

Few times in life are we given a “Free Look” or opportunity to use the systems and its rules to our advantage and have a guaranteed out to reverse our decision if our circumstances change. The key to turbo charging or catching up in your retirement plan by continuing to work into what was once the “classic” rocking chair years, and taking full advantage of the “double dip” combined with the file and suspend strategy. To figure out what your full retirement age is, go to this link at social security: http://socialsecurity.gov/pubs/ageincrease.htm and be sure to check back her on our blogs for more ways to save money, plan your investments and learn more about annuities, index annuities and life insurance.

Contact us to help you determine the most approriate time for you to begin receiving your social security retirement income benefit.

Does Gold Make My Butt Look Big?

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Posted on January 19, 2012 by jmh

Gag me with a spoon, bite me, barf me out. Yep, those were the most popular or cool vernacular in 1980. Lots of color in Fashion and big hair along with window pane jeans too. You know what else was super popular in 1980? The video game Pac Man. It was invented in Japan but called Puck Man there (referring to their slang word for “munching” which is what the little hungry video guy did to dots on the screen) but decided to convert to avert potential association with similar “sounding” four letter word(s).

Pac Man was instantly and insanely popular with people of all ages (people even played the video game in Disco’s). Those who could get to level five or six before being consumed by the villains were impressive. As crazy popular as Pac Man was, it took nineteen years for it to be mastered and all 255 levels completed by a 33 year old male (go figure) in a game that took six hours of continuous play!

Simultaneously in 1980, Gold was (as in precious metal) was mania style popular as well. History repeats itself and last year Gold touched an all time high price on 8/22/11, hitting $1,889 per ounce. However, compared to its lofty price in 1980 of $850, that’s “cheap.” Factoring in “inflation,” prices back in 1980 would make Gold’s’ price then equivalent in today’s dollars of $2,472. So while Gold may be gaining more popularity in these nerve racking economic times, it still hasn’t kept up with the basic level of inflation. Think about the cost of the “basics” in 1980; Gallon of Milk = $1.60, Postage Stamp = $.15, gallon of gasoline = $1.30, movie ticket = $3.00, Disneyland Park Pass = $7.50.

Today in 2012, a One Day Pass to Disneyland is $90.53, gallon of milk or gasoline cost nearly $4 bucks, and a ticket to see a 3D Movie in Dallas, Tx will set you back $15. And we needn’t get too depressed over price increases; ergo I’ll avoid mentioning the cost comparisons of education (tuition) healthcare and prescriptions. So while Gold has increased from its price in 1980, its really only doubled compared to its price today. Yet, the cost of food, energy, education, healthcare and entertainment have all increased thrice fold or more since “Valley Girls,” Michael J. Fox and shoulder pads were popular.

Saving and budgeting for retirement income (especially tax free income) then must include protection from eroding purchasing power. Why doesn’t a precious metal such as Gold make a great path to future income? Well, Strike #1; Gold really hasn’t done a great job in this arena and Strike #2; it’s not truly very liquid. And Strike #3; recently buying or selling Gold is on the Feds radar screen for potential money laundering abuses… which is an automatic introduction to your local IRS auditor/agent if their suspicion is triggered.

The solution for “liquid,” reliable and dependable cash flow always seem to bring us back to equities or equity index based investments. Using annuities or other vehicles that pay a monthly stream of income (such as Social Security or a pension; both of these are types or examples of an annuity) is the key or secret to maximizes income in the future for retirement planning.

All that glitters surely is not gold. Timeless security of one’s money is just as popular now as it was in 1980. And be certain not to overlook the importance of tax advantaged or income tax deferred ways to save and invest in such type investments. Learn all that you can about IRA’s and ROTH IRA’s along with alternative ways to have income tax free retirement income. Tread carefully and keep it simple for yourself and seek the help of a CPA and local investment advisor. Waka waka waka…. GAME OVER.

For those of you who are too young to recall the Pacman craze, below is a video of exactly how the mega hit appeared in bars, restaurants and video halls in malls all across the United States…

Valentine’s Idea; Love or Money?

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Posted on January 17, 2012 by jmh

Love always begins well but can turn choppy in an instant. With Valentine’s Day less than one month away, does Money help or hurt a relationship? The real key is not how much money one has; instead it’s how much debt.

Geece and the problems with Greek austerity mandates may be a foreboding insight for the USA; and it illustrates how debt is a squall storm that will turn the happiest of couples into miserable, raging people instead of the happy go-lucky smooth sailing “perfect pair.” Romance may temporarily financially blind most, but once they get serious about their relationship, they will open their eyes and assess how well they are going to be able to sail their lives together. Many relationships sink prematurely just because of the financial problems of one or both of the partners. Most people are reluctant to accept the debts of their partners for many reasons. And this very knowledge makes the other person hide their actual financial situation from their loved ones for fear of being “found out” and breaking up.

The culprit in ruining relationships is not debt alone. Trust and a breach of trust is the deal breaker. The strength of your trust is more important than the money you owe creditors. Don’t lie about your financial situation or how much debt or taxes you owe. You needn’t talk about it on your first few dates either. But communication has a major role to play in a healthy relationship. Sooner rather than later, be clear and transparent to one another. Nothing should stop you from disclosing something you want your life partner to know.

Once you live together or get married, there is not much you can hide from each other. One day or the other, he or she will know the truth. So being truthful to each other will save you from an embarrassing moment later in your life. Use the following four secrets to help ensure your successful long term romance:

1. Reviewing Credit Scores and Reports: If you are living together or going steady with someone for quite some time and all of a sudden you come to know that your partner owes a huge sum of money, it could harm your relationship. Although you will not be legally responsible for debts like credit card debt or student’s loans as they are considered the responsibility of that person alone; it still distracts from the joy of romance. Get an updated credit report and a list of assets for both of you and review these together. They are totally free and easy to obtain.

2. Knowing what you owe and own: At the same time, it’s good to know how much the other person owes so that you can avoid unpleasant surprises when you try to get a joint loan for a home or a car. You should know what your partner owns. Sit down and make a simple inventory list of assets and liabilities. This will give you both a clear idea of your present financial circumstances.

3. Get A Budget and Assign Expenses: Talking about finance may not look very romantic while your relationship is in a budding stage. But if both of you have your own sources of income, it’s better to come to an understanding on how you want to spend your earnings way before you take the marriage plunge. In addition to your incomes and earnings you should also discuss sharing bills and expenses. You can either divide equally all the possible expenditure you will have to deal with in future when you start living together or decide on who is going to pay the bills and who will handle the savings for the common necessities like children’s education, down payment for a home, vacations and so on.

4. Get a CPA and Compare income tax returns: Income tax is not just a fine imposed for reckless spending. You two will be filing joint tax returns after you’re married. A CPA can analyze your previous individual tax returns and help create a strategy to minimize your future income taxes. Setting up an IRA or ROTH IRA and fully utilizing 401k or 403b plans available to you through your employer are almost always very wise choices. You never want to get behind with the IRS. And learn about tax free income alternatives.

It also greatly helps if you two can openly discuss your dreams and aspirations, financial ambitions and personal ideas and plans to achieve them. If you’re both unsure, seek out the help of professional financial planners or budget coaches. Search the internet for resources on self help books and support groups. Ask you friends and relatives who they use to help them with their financial planning. It’s usually best to get a local “fee based” professional; as they will tend to be unbiased and not pushy to sell you anything. Then schedule a reoccurring meeting with them; quarterly or even monthly in the beginning will help you get started and stay on track.

Investing is often confusing for baby boomers and seniors. Money management was something that wasn’t taught in school or college. Don’t feel like you’re the only “dummy.” When you need the best local financial advice or budget help available, contact My Money Track to help you get your life back on track. Your IRA or rollover is just too important of an investment to ignore. Local professional advisors are willing and able to help.

Love is blind but you don’t have to be. XOXO

Learning to Dance with your life jacket on

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Posted on January 16, 2012 by jmh

The inadvertent sinking of the Italian cruise ship by running aground on jagged rocks on the coast of Italy, reminds us again how fragile and unpredictable is life. Apparently the Captain of the mega liner was doing a bit of “show boating,” by cruising the behemoth unnaturally near the coastline and blowing its mega horns to amuse the passengers and attract attention to the ship. Sort of like the Tom Cruise “fly by” the flight tower in Top Gun.

But hey, that was a movie for Goodness sake; this is real life with precious cargo onboard. Just a few meters away was safe deep waters versus the treacherous rocky shallows the Captain decided to navigate; unsuccessfully. The cruise line owners are apparently not sparring the Captain either; instead they’re perplexed at how little caution their Captain exercised and claim human/pilot error as causing the ships sinking.

Unlike the Titanic, where the crew had hours to get off the doomed shipped after it hit the iceberg, the passenger of Costa Concordia had less than an hour to make way to safety. Still, the similarities between the two tragedies are stunning. Both were in extremely cold water and hit an avoidable large object, each tearing long gashes in the hull below the waterline. Both ships were thought very safe, “unsinkable” and too large to fail ocean liners. How unlikely did the tourists on those ships think such a catastrophe could occur?

And such is life. Two Americans are still missing after several days from the Italian cruise liner and many more deaths are confirmed. It is events such as these that remind us to have current valid Wills and sufficient life insurance. Insurance isn’t solely for the rich or wealthy. It is extremely affordable. Semi-perm automatic renewable 20 year Term insurance in the face amount of $1 million for a 44 year old healthy male cost less than a thousand dollars per year.

In addition, there are simple but sophisticated ways to employ life insurance that will potentially provide

And converting the term to permanent coverage when financial conditions improve or when a windfall such as inheritance or settlement or winning the lottery, can protect future incomefrom rising income taxes, predators and creditors. Why wouldn’t anyone simply check into the cost and availability of life insurance; regardless of one’s perceived financial assessment? A few dollars a day could mean the difference long term in tens of thousands or even millions of dollars tomorrow.

Investing is often confusing for baby boomers and seniors. Money management was something that wasn’t taught in school or college. Don’t feel like you’re the only “dummy.” Do yourself and your family a huge favor; look into getting yourself and/or your spouse more life insurance. It’s never been more affordable and there’s never been a time when it’s needed more than today.

Is this simple but costly mistake lurking in your IRA?

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Posted on January 13, 2012 by jmh

They were married for 31 years and managed to raise and educate four children through college. He retired from his first career early due to heart disease and then began a second one as an accountant. Years later she also retired and was ready to enjoy life with her husband, as a homemaker. Unfortunately, he died unexpectedly while doing the job he really loved; suffering a massive heart attack literally at his desk while working with clients.

She was devastated and had the most difficult time coping with this sudden tragedy. Luckily, they had put away some money over time but most of it was acquired through IRA’s (also called Individual Retirement Accounts) established years ago. And their IRA’s had actually grown nicely. One of the great things about IRA’s is that they can easily be transferred to family members without going through a timely and expensive probate process when someone dies. Simply naming a beneficiary and contingent beneficiaries will allow the heirs in your family to legally receive the money saved when another family member passes away.

But this couple never named a beneficiary for their IRA’s. They just assumed that each other would inherit the deceased’s money. The reality of this costly mistake hit home. Unless the spouse or child is named as the beneficiary, the money must go through the probate court. Thus, his IRA’s cannot simply be rolled over into hers. The result? Income taxes are now due on the entire amount instead of being able to defer paying them until much later. And those taxes due now on the entire IRA, will cut dramatically into what she had hoped to receive to help provide income for her grandchildren and her own living expenses.

Investing is often confusing for baby boomers and seniors. Money management was something that wasn’t taught in school or college. Don’t feel like you’re the only “dummy.”

This often happens when parents forget to update their IRA beneficiaries and Wills. Money that could now be inherited with no current taxes due is being snared in the probate process. Parents or grandparents whose bank and IRA accounts still carrying the beneficiary designation of “per stirpes” or left to “the estate” of the deceased will cause headaches and potentially cost hundreds or thousands of dollars unnecessarily. Big mistake!

Few parents would want their children to suffer due to the unnecessary early payment of income taxes on their hard earned savings. Even worse, there are often cases where after a divorce, beneficiary designations are forgotten about… when death occurs; money may actually go to the “ex” and their new spouse instead of the children of the deceased!

And the worse nightmare awaits those who do not have a Will at all. Even if you believe that you do not have much to leave to your children, the State (not your children) will be assigned control over what you do have, unless you have a Will. The solution; talk to you parents and grandparents about who they have named as beneficiaries on their IRA’s, annuities, and bank accounts that are transferable at death (TOD). Ask if they have a current Will and have it reviewed by an attorney. And for divorced or single parents, check who you’ve named as beneficiaries for your money. It’s a simple precaution that will save your heirs major headaches.

Know when to hold ‘em, know when to fold ‘em

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Posted on December 7, 2011 by admin

The classic and traditional investment strategy of buy and hold, (invest in assets and then never sell them), is losing its relevance. Or at least so it seems with baby boomers and seniors. This is especially true in investments in the once hallowed and honored halls of theory in equities aka stocks.

For many decades it seemed that regardless of the corporation, eventually everything would always “go back” up. For some time now, the Wall Street pros have eschewed the “buy and hold” theorem; and finally both baby boomers and their parents (seniors) are throwing in the towel on waiting for their stocks and other investments, to go back up. And a long wait is has been thus far; almost twelve years since 2000 and the heydays of the Y2K stock market and real estate bubble.

A powerful pundit states that by being fully invested in the stock market on the Best 100 Days since 1/1/2000, an investor would’ve earned 376.4%. That’s impressive returns, but here’s the other side of the story. New data supports that by missing the Worst 100 Days in the stock market, you would have also not lost 376%. In other words, the Best Days and Worst Days theory of investing are mirror images of themselves. In either example, being fully invested for nearly twelve years has yielded nil.

And it is in Bear Markets (such as we are in currently) where substantially higher volatility occurs. Wow, what then is one to do to save, protect and hopefully grow their money? Maybe buy lottery tickets (please don’t, the lottery is basically a tax on those that cannot do math) or hitchhike to Las Vegas? Assuredly not! But in times such as these, the first priority would be to seek out advice, help and guidance from professionals who are licensed and experienced.

And push yourself to learn a little more about insuring your investments with products that are ideally structured for volatile times and topsy-turvy markets. Learn about simple but sophisticated ways to employ life insurance that will provide tax free retirement income. The self proclaimed investment and budget experts on national television and radio are not licensed and few have any actual real life experience handling other people’s money. Their one-size-fits-all plans do not suit everyone.

Get your own personal budget advice and personal investment coach. Do a Google search for local budget advice and local financial planners. Call them and set an appointment or better yet, just drop in unannounced to their office to get a feel for how they operate. Be polite and simply ask what the worst case scenario would be for any given investment plan in case you had to quickly liquidate it… ask about the highest amount of fees you could potentially incur and then look into the professionals eyes and ask for their lowest cost alternative. Bring along a trusted friend or your CPA (if you have one) for moral support and to take notes with you.

Finally, ask your advisor or financial planner “how they get paid?” It is perfectly acceptable for you to know how your investing will compensate your advisor. The worst action in times such as these is no action. Be proactive and get help. The only one who stands to lose the most by delaying your quest is you. And when you need the best local financial advice or budget help available, contact My Money Track to help you get your life back on track. Your IRA or rollover is just too important of an investment to ignore. Local professional advisors are willing and able to help.

Readjust, Reevaluate and Rejuvenate…

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Posted on December 2, 2011 by admin

The top person and head of the World’s largest single amount of bonds said this week; if you are lucky enough to make 5% on your money for the foreseeable future, then you are likely to be counted as one of the fortunate few. Wow, this comes as quite a shock since it seems that forever we’ve been led and inclined to count on double digit long term returns on our savings money.

Even Dave Ramsey and his throng of followers still believe his website, touting 11% or better forecast for investments. And Dave isn’t a money manager nor licensed to be such, while Bill Gross, the head and fearless leader of PIMCO investment (and the head of more bonds than any other human on the planet), has the motivation and credibility to offer a much rosier outlook. But he doesn’t…

With Europe now hitting the banking crisis we dealt with in the USA back in 2008, it seems that many and mini more financial markets will tumble like dominoes.

The US dollar has become the tallest midget or the cleanest dirty shirt as a perceived safe haven for those wanting to invest or park money until things improve. And surely the banks know this and offer virtually nothing in the form of interest on money in your bank and checking accounts. But today it’s much better to play defense and win by not losing; or staying even and not going backwards in your savings and investment accounts.

Investing is often confusing for baby boomers and seniors. Money management was something that wasn’t taught in school or college. Don’t feel like you’re the only “dummy.”

But until our Nation gets out from under the burgeoning humongous debt now topping $15 trillion, there isn’t much optimism on the horizon for baby boomers or generation X. Readjust your lifestyle now before it’ too late and reevaluate what you need and buy. And there’s no time like the present to begin educating our children to a healthy, less heavy footprint financially. Lead them by your example financially. Be your children’s financial hero and role model.

Burying your resources or money in a coffee can in the backyard or under your mattress is not being a good master or steward either. You do not have to become an expert yourself. Seek out advice and local help on places to stash your cash. With the New Year around the corner, it’s time to get serious about setting up your personal or family budget; and sticking to it. Whether you may need an IRA, add more to your 401K or 403B or start your own retirement plan, there’s no reason to go it all alone.

Learn all you can about simple but elegantly sophisticated ways to employ life insurance to provide a tax free retirement income stream.

Remember that everything goes in a cycle and has a season. In this holiday season be mindful of this and also be thankful for that which you do have. It takes the tough times in life to help make us more appreciate the easier times when they return. Don’t fret about it but instead be relaxed, prepared and content knowing that you and your family will be okay.

How to Avoid Burdening Your Children in Retirement

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Posted on December 6, 2010 by admin

A happy and peaceful retired life is something everyone dreams of, as we approach the end of our career. But unfortunately, only by the end of our service do we realize the importance of effective planning for the future. By then, it will be too late to do anything about it. Those who haven’t made enough money to generate a steady and regular income for their life after retirement will have no choice but to burden their children by moving in with them and seeking financial and emotional support. Neither of these choices guarantee a pleasant future in the long run. However, equipped with the proper financial knowledge and planning, you can take control of your retirement. Here some tips to keep in mind:

Do the math: Calculate the amount of money you would need to live a decent life after retirement. And while you do the math, don’t forget to consider the improvement in our life span and increase in medical expenses due to developments in modern technology. This means you will need more money to keep yourself physically fit and enjoy a longer life span. You just can’t afford to let your retirement savings stop earning for you after 10 or 20 years of retirement. So before you plan your retirement, you should have a clear idea of how much money you should save. Even if you have to put in some extra years or some extra cash into your savings, you will, of course, find it worthwhile in your later years. Don’t forget to plan for long-term care expenses: During your retired life more than 70 percent of people need long-term care plans after the age of 65.

Take care of your health: It is absolutely necessary to prepare yourself mentally and physically for a healthy retired life. This will help you stay fit and reduce your medical bills in the future. As you grow old, your body and immunity get weaker and even relatively small sicknesses can impact you much more than while you were young. You can start your retired life afresh by adopting a healthier lifestyle with proper diet and exercise and quitting some unhealthy habits like smoking and alcohol.

Develop a social network of friends and family: Being retired from service also means having more time to spend on yourself and your loved ones. Take this opportunity to develop a strong social network with your family, friends, ex-colleagues and so on. Socializing will keep you from feeling lonely and help you form strong ties with the people around you. You can be sure to have someone at your side when you need them most.

Share your retirement plans with family: Your family should know that you are retiring and it is important to share your retirement strategy with them. Be open to suggestions from your well-wishers. Let them know that you are putting in all your efforts to make sure that you lead your retirement life independently. Be frank and tell them that you don’t intent to be a burden on them in the future. This is only going to make them happy to help you if the need arises in the years to come. Keep these points in mind, plan well and live a long and happy retired life.

Love and Money

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Posted on December 15, 2010 by admin

Debt is a squall storm that will turn the happiest of couples into miserable, raging people instead of the happy go-lucky smooth sailing “perfect pair.” Romance may temporarily financially blind most, but once they get serious about their relationship, they will open their eyes and assess how well they are going to be able to sail their lives together. Many relationships sink prematurely just because of the financial problems of one or both of the partners. Most people are reluctant to accept the debts of their partners for many reasons. And this very knowledge makes the other person hide their actual financial situation from their loved ones for fear of being “found out” and breaking up.

Once you live together or get married, there is not much you can hide from each other. One day or the other, he or she will know the truth. So being truthful to each other will save you from an embarrassing moment later in your life. Use the following four secrets to help ensure your successful long term romance:

Love is blind but you don’t have to be. XOXO

Be Happy, Live Longer

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Posted on December 28, 2010 by admin

Nearly a dozen studies show that happier people live longer. They’re also less likely to suffer heart attacks, strokes, and pain from conditions like rheumatoid arthritis. While some people may be born with sunny dispositions, happiness isn’t necessarily based on genes or luck. Psychologists now believe it’s a learned skill, almost like knitting. Here are some helpful tips to get happy, live longer, and improve your overall quality of life:

1. Smile. Research shows that the physical act of smiling can actually improve your mood and overall mental state.
2. Keep only cheerful friends. The grouches pull you down and the added stress is bad for your health.
3. Keep learning. Learn more about the computer, crafts, gardening, or whatever. Never let the mind idle. ‘An idle mind is the devil’s workshop.’ And the devil is Alzheimer’s.
4. Enjoy the simple things. Watch the sunrise, savor the taste of a well cooked meal, or just take in the silence while surrounding yourself with those you love.
5. Laugh often, long, and loud. Laugh until you gasp for breath. Laughter is contagious. Help spread joy to those around you.

6. Let the tears happen. Endure, grieve, and move on. The only person who is with us our entire lives is ourselves. Be ALIVE while you are alive.
7. Understand your finances. Money is the number one cause of stress to many individuals. Know what you have available to spend and live within your means.
8. Cherish your health. If it is good, preserve it. If it is unstable, improve it. If it is beyond what you can improve, get help.
9. Don’t take guilt trips. Take a trip to the mall, to a friend’s house, or to another country! But not to where the guilt is…
10. Make a gratitude visit. Deliver a thank-you note to someone who’s been especially kind or helpful but never properly appreciated. When you feel thankful, you get pleasure from remembering a positive life event. Plus, you’ll strengthen a relationship that may bring you future happiness.

5 Retirement Mistakes You Can Avoid

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Posted on January 10, 2011 by admin

Retirement is the inevitable turning point in our lives. Some people welcome it happily while some others spend half of their career worrying about it. It’s said that one should start saving for retirement right from the first paycheck. But only a small fraction of the employees actually do that. It’s important that anyone poised on the verge of retirement should be aware of the 5 retirement mistakes that they should avoid.

1) Overestimating returns from investments: Those who save their money through the various retirement plans offered by the government or private companies have a tendency to overestimate the returns from their investments. This will put them in a very difficult situation after retirement. It’s important to have an idea of how your investment will bring in money for you. The income you get is normally generated from sources like dividends and price-to-earning ratio etc from your stock. The income it can provide is subject to fluctuations in the stock market. So, if you calculate your income based on the growth of the previous year, the stock market will soon prove you wrong.

2) Failing to calculate the money you will need to lead a comfortable life after retirement: These days income is something you cannot live without or live within. You know how much you are earning and how much you are spending now. But have you any idea how much you would need to live a decent life after retirement? Being retired doesn’t mean that you can start skipping a meal or stop driving your car. After retirement, you will have more time to spend on yourself and more things to do with your time. As a retiree, you most likely are going to need as much money as you were getting while you had the job.

3) Failing to anticipate your life expectancy: Good news is; we are all living longer. The Bad news is; we are all living longer! When you make your plans for the kind of money you will need for your retired life, consider the chances of an increase in the cost of living and health care. Health care is getting more and more expensive and this is proportional to our expectations of longer life expectancy. Development of modern technology and advances in medical science has increased our life span several fold. You are going to need a steady income for a longer period than you expected when you started your savings.

4) Underestimating the evils of inflation: Inflation is a situation in which nobody has enough money because everybody has too much. You may plan on spending a certain amount of money every month on your day-to-day needs, but if inflation hits the global market, the prices will go up and it will easily upset your budget planning, at least for the next few years.

5) Being conservative in planning investments: Don’t be too conservative in planning your retirement. You don’t have to stick with the familiar domestic stocks forever. There are a number of international bonds that can offer a better income and stability in your returns. Check them out along with the old reliable ones in the country. There are inflation-protected securities like I Bonds and TIPS, but the income it can generate will not be as good as the other regular bonds. Your income and expenditure are not going to remain the same forever. You don’t have to gamble with your hard earned money, but don’t put all your eggs in one basket. We all know that diversifying your investments will make it less risky and more profitable.

7 Scams to look out for in 2012

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Posted on January 27, 2011 by admin

With the economy still in the slumps, scam artists are finding new ways to take advantage of trusting individuals earnestly searching for ways to make a living. The following list highlights the Top 7 Scams and how to avoid them.

Work from Home Schemes– We’ve all seen them. “Make $5,000 a week working from home.” “Get paid to be a mystery shopper.” These schemes get you to pay for a product upfront that will teach you the “secrets” to living this fabulous new lifestyle. Bottom line is that is that if it sounds too good to be true, it probably is. The end result is that instead of making thousands, you end up wasting your money.

Job Hunter Scams– Watch out for these. These scam artists target job hunters in attempt to steal their identity by gaining access to personal information such as social security numbers, bank accounts, and addresses. Sometimes they may even charge a “fee” to be considered for a job. Don’t fall into this trap. Make sure to research a company carefully before supplying such information.

“Free” Trial Offers – You see them on TV, in magazines, and on the radio. “Free Trial” for weight loss supplements, gym equipment, kitchen gadgets…money back guarantee! These seemingly “no-risk” products often result in thousands of complaints from buyers who state they were repeatedly billed every month and found it extremely difficult to cancel. Don’t expect your money back. If you can’t afford it, don’t buy it.

Debt Relief and Settlement Services – According to tentative year-end estimates, complaints about debt relief and settlement services to the BBB increased by 30% in 2010 and equally so in 2011. Make sure you seriously consider these third party assistance companies as many consumers find themselves paying upfront fees and potentially drowning in even more debt.

Timeshare Resellers– Do you own a time share? Watch out for these tricky schemers. Timeshare owners who are desperate to get rid of their costly vacation property are being targeted by companies that claim they have an eager buyer. What happens is that the company tells the seller they just need to pay up fees upfront to cover the transaction. These fees, however, an be upward it the hundreds, or even thousands of dollars. After paying the fees, the seller never hears from the company again.

Lottery and Sweepstakes Scams– Unfortunately the victims of these scams are often times senior citizens. How it works is that the victim may receive a letter or phone call from someone claiming to be with Reader’s Digest, Publisher’s Clearing House or a phony foreign lottery. The scammer claims that the victim has won millions but first must wire hundreds or even thousands of dollars back to the scammers to cover taxes or some other bogus fee. The victim wires the money and never sees a dime.

Advance Loan Scams– These schemers target students, business owners and consumers who are in debt and in need of a large loan. They claim the victim is pre-approved for said loan however must first pay an upfront processing fee. The victim wires the money, the loan doesn’t show up, and the victim is left even more in debt.

Seek out local financial advice and help from professional investment advisors. You will receive free initial personal counsultation and may easily shop around until you locate the one that’s perfect for you. Getting you IRA or 401k maxed out and growing is an idea that is virtually fail proof. Look into rolling over those old 401k’s into a self directed IRA that will have lower fees and more advantages.

The big lesson to take away is that if sounds too good to be true, it probably is. Secondly, never wire money to someone you don’t know without a thorough identity check first. If something sounds fishy, ask a friend or your advisor what they think. Often, simply a second opinion will be enough to open your eyes. Be cautious, set up a personal budget, seek advice, ask questions, and use common sense. There’s no such thing as a free lunch.

The “Sandwich Generation” and the Changing Family Dynamic

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Posted on May 3, 2011 by admin

The “Sandwich Generation” is becoming a more commonly used term as more and more individuals begin caring for not only their aging parents, but their children as well, all the while planning for their own personal retirement. According to an April 2010 Merrill Lynch Affluent Insights Quarterly survey, more than one-third of affluent Americans financially support their children and parents while trying to maintain and build upon what they have set aside for retirement. According to the Pew Research Center, 1 of every 8 Americans aged 40 to 60 is both raising a child and caring for a parent, in addition to between 7 to 10 million adults caring for their aging parents from a long distance. The US Census Bureau statistics indicate that the number of older Americans aged 65 or older will double by the year 2030, to over 70 million.

With the complex equation of most individuals within the sandwich generation being baby boomers, added to the intricate family dynamics, financial advisors are finding themselves advising over three generations. What is the family dynamic like? Many boomers work full time jobs while raising a family or supporting children in college, in addition to serving as the primary caregiver to one or both parents. How do these families cope with the changing dynamic? Most consider trade-offs, such as significantly cutting back on personal luxuries, making lifestyle sacrifices to support their family’s needs, and even cutting back on their own personal retirement.

So, what kind of help can advisors give to those facing the pending or already existent sandwich generation? First and foremost, ease the stress of competing demands by identifying core values and priorities to find balance in life. Always keep open lines of communication – of course it’s difficult to discuss the financial impact of diminishing health and the eventual loss of a loved one, but putting off that conversation can leave you unprepared for the consequences. Implementing a plan of affairs for aging parents can off-set the negative consequences of a life-changing event. Be sure to know where your family members keep important financial and medical documents, as well as the contact information of doctors, lawyers and advisors. Always know the type of long term care, and how much it will cost.

When it comes to financing children’s education, only 12% of the sandwich generation said they were cutting back on contributions. What’s the biggest tip for parents? Start saving early. Teach your children early on the skills necessary to embrace financial independence, budgeting, and the importance of credit and planning for retirement. You can even bring your kids with you to an advisor meeting to discuss all these great education finance tips.

I’m sure you’re thinking: but what about me? Get with an advisor and review your investment strategy, as well as home financing, asset allocation, insurance, securities, your portfolio, and your general retirement strategy in general. This way, advisors can help shift financial securities based on the family’s specific dynamic. According to the survey, 54% of the members of the sandwich generation work with an adviser, and among them, 32% wish that they had started working with one sooner. Among the remaining 46% who don’t work with an adviser, 83% think that they would benefit from such a relationship.

LTC Costs Slowly Rising

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Posted on May 10, 2011 by admin

The costs of long-term care continue to rise, although slower than before the economic crisis of late. The Centers for Medicare and Medicaid Services estimates that by 2020, 12 million older Americans will need long-term care. And a study by the U.S. Department of Health and Human Services says that four out of every ten people who reach age 65 will enter a nursing home at some point in their lives. With the growing numbers of elderly individuals in need of long-term care, coupled with the increase in life expectancies, as well as the rising cost of healthcare and insurance, more and more individuals will be faced with the difficult question of how they will be able to afford to care for themselves.
Check out the statistics gathered from a report by the Prudential Financial, Inc.:

2004 – 2006

The cost of daily care in a nursing home with a private room climbed 21% to an average daily rate of $203.
The cost of daily care in a nursing home with a semi-private room rose 23% to an average of $180 per day.
Home health care expenses rose 11% to $160.

2006 – 2008

The cost of daily care in a nursing home with a private room rose 7% to an average of $217 per day.
The cost of daily care in a nursing home with a semi-private room increased 8% to $194.
Home health care expenses increased 5% to $168.

2008 – 2010

The cost of daily care in a nursing home with a private room rose 14% to an average daily rate of $247.
The cost of daily care in a nursing home with a semi-private room jumped 11% to an average of $215 per day.
Home health care expenses increased 13% to $190 a day.

2004 – 2010

Long-term care costs grew at a compound annual growth rate average of 6%.
The consumer price index — the key inflation indicator — rose at a rate of 2.5%.

As you can see, costs for long-term care are steadily moving upwards. Still, the poll by Prudential found that of the 1,000 consumers 35 to 65, only 35% of the consumers felt they either “know a lot or know a moderate amount” about long-term-care insurance. The scary part about that statistic is the age range of the polled consumers that are out of the loop – prime age real estate for retirement planning. How can you combat the rising long-term care costs? Contact a financial advisor and map out a plan for you and your family. They can take your financial situation and estimate costs that will help you in knowing how much you must save and plan for. Education is key – and just knowing about long-term care and how can it affect you will aid you in being a much smarter planner.

Put Me In Coach

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Posted on May 23, 2011 by admin

Nearly half of all Baby Boomers say they could not cut personal spending by 10% or more without a “dramatic” change in lifestyle. Really? This is sad but highlights where our generation has gotten itself over the past 25 years. By sacrificing our retirement planning to the needs of our children and aging parents, the “chickens” have come home to roost, so to speak. More than 1 in 4 Boomers keep “extra” cash in low interest earning accounts in case a family member may need financial help. This can destroy or at least severely cripple a retirement plan.

But with the uncertain economy and shaky employment landscape, one misstep financially and your retirement years could be delayed or wiped out altogether. This fear of potential disaster has also kept almost 60% of Baby Boomer’s investments in way too conservative of a mix for any hope of significant growth. Many still use CD’s, savings and checking accounts for a large portion of their investment mix.

CD’s and similar types of liquid investments are great for a rainy day but earn less than the inflation rate. Factoring in income taxes too and one is left with a true loss; long term in the buying power of the Boomer’s retirement dollars. With the crazy volatility in the stock and real estate markets, Boomers perceive them as too risky to invest. Check out safe alternatives such as index or equity index annuities. Suzy Orman raves about them in one of he most popular and best selling fnancial advice books. And a fixed annuity may often provide you much more interest without more risk.

But, if one has more than 10 years left until retirement, real estate and stocks are the single best performing investments available. Thus, the conundrum. There are higher earning alternatives to CD’s and savings accounts, that offer liquidity for emergencies (such as health and accident issues) while still racking up healthy long term gains. In fact, using alternative investments geared for such emergencies in today’s environment makes great sense.

So much sense in fact, that almost 6 in 10 Boomers are dissatisfied with their CD’s and savings accounts and “their” paltry returns. Another dilemma and added conundrum! But if Boomers could take the time to understand the alternatives and figure out exactly how much risk they can live with, life gets much better. This is where My Money Track can help.

Information and education along with real-time, real-life success stories of planning and investing. Not that anyone needs to be a do-it-yourself personality… seek out advice and help from local professional financial advisors and then you’ll be comfortable investing in a better diversified mix of assets. And over the long term you will likely double or even triple your long term growth and earnings over CD’s. Many Boomers don’t realize that they can invest in anything other than CD’s in their IRA’s. But you can, and the IRA is a great place to own growth type investments, especially in a ROTH IRA. That is because longer term investments match up with the longer term nature of an IRA, in general.

But Boomers are vulnerable to the unknown; the past 10 years have been a lost generation of sorts, in both the stock and real estate markets.

While it would’ve been a good idea to stay “on the sidelines” it is now becoming more evident that it’s “time to get into the game” with your retirement planning. Contact us today to help you get on the field and score points for yourself and your golden years.

Forty and Fabulous!

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Posted on August 2, 2011 by admin

If you’re not one of the 78 million Baby Boomers, but instead one of the Gen-xers right behind them, there hasn’t been much information for you to plan for your financial future. The Boomers get all of the press and attention but now that you’ve reached your forties, what now for you and yours?

If life truly begins at age 40, what are the most important things you can do now? At age 40 you still have 25-30 years ahead to save and invest. The next 20 years in America will not likely be as productive as the past 20 years (although the last 10 years sucked!). But now life is no longer a “dress rehearsal.” This is for real – real life. And you should have no doubt that taxes and inflation will likely rise during the next 20 years, and that’s a bonus for you, if you know how to harness its powers.

First things first – before you know where you’re going, you need to know where you are, so take the time to write down a list of all your assets and valuables, and then your debt and expenses. This will be your guide each year to determine if you’re on track for a successful plan or demise. It sounds simple and it’s oh so powerful too! Next, try to pay cash for most everything you buy. Yes, it’s nice getting those airline miles but credit is a double edged sword and it pays to be safe than sorry. And even though almost everyone swears they’re paying off their credit card balances each month, the average household in America pays $2,000 per year in interest over and above their mortgage and car loans!

With the dismal outlook for the stock market and growth in the economy, it will be very important to look at alternative ways to save and invest. Since we as a nation are likely to have a repeat of the late 1960’s and 1970’s, let’s think about which investments worked out really well back then: tax-free retirement was a certain type of life insurance policy that would build cash value without the chance for loss. These are now called index universal life policies, but don’t let the labels scare you away. In a volatile economy, the worst thing you could do is lose money! Will Rogers said it best when he stated, “I am more concerned with the return OF my money than the return ON my money.” And for the near future, that should be your mantra too.

If you or your spouse die before either retires, life insurance will be your family’s life raft. If not, the cash values built up in the policies can be withdrawn and most times done so income tax free! Thus, providing you with a healthy and secure monthly check. This will be huge in the future considering the amount of our current debt load ($15 Trillion and growing) and the deficit’s city, state and federal governments are running.

While 401k’s and IRA’s became great investments since their huge acceptance in the very early 1980’s, they can easily lose value. Thus, an insured path to retirement with an institution standing in the breach between your money and market losses is paramount! And SHOP around. Talk to several insurance agents and even investment advisors. The Wall Street firms are getting into offering life insurance policies BIG TIME now. It’s super simple to get a quote and compare value and benefits for your hard earned dollar. And then of course, plan with these type of investments to grow large enough to pay off your home mortgage when you retire; it’s all about cash flow.

In some situations, your 401(k)’s and IRA’s could be the worst place to save money. If we do have large income tax increases in the future, these retirement plans only delay the taxes – not eliminate them. If rates are rising, why would you want to wait to pay more or higher taxes?

Lastly, social security will likely be radically changed by the time you “40-somethings” begin withdrawing your benefit (if any?). So plan on having more than just what social security may provide to you to rely upon when you decide to retire. There are lots of solid dividend paying stocks that have proven track records for long term prosperous growth (but these are rarely if ever insured), and the ever popular annuity or personal pension plans are flying off the proverbial shelf. Ask around and you’ll understand why too.

Life is good now and can be even better each and every decade of your life, just plan ahead.

The True Cost of an Education

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Posted on August 9, 2011 by admin

I hear Pomp and Circumstance being played by the band; I see mortarboards being thrown in the air. I feel the excitement of my two college aged boys. Then reality smacks me dab in the face and I realize to make this happen it is going to cost about $150,000 per kid for a college education. This sum isn’t from the Ivy League Colleges and Universities.

We refuse to take out student loans have selected state universities and even enrolled in a community college for a year to avoid the “tuition scam” (more on this to follow later) perpetrated upon on youth and their parents. Sure, we would like to give our kids the best of everything but the cost have just gotten out of control and too high. But parents and students are still biting off way more than they will ever be able to chew or hope to digest.

It’s not about a cost differential of a designer purse or pair of sneakers over a generic product, it’s about a life charting detour if taken too lightly.

A college degree is a very valuable thing and of utmost importance. This is especially true today but at what cost? We have become really good consumers when it comes to almost everything else… but not so much when we think the purchase is a necessity for our kiddos. The result? Students today are graduating with literally hundreds of thousands of dollars in debt with a degree that is not very marketable in a vile economy and a drudge job market. How did this happen?

We bought into the dream that a college degree was paramount but we didn’t factor in the marketing genius most universities have deployed the past 25 years. As much money on campuses goes into stadiums, student recreational facilities and gyms that entice enrollment than money invested into the faculty or curriculums. And when our children ask for something we will at best provide it for them or at least encourage them to obtain it without taking an unemotional, detached view or assessment of the alternatives. It is TYPICAL today for a university student to graduate with the equivalent amount of debt that could have easily purchased their first home!

Then the student cannot pay the debt and the net results are horrible credit ratings and even bankruptcies of the student and often their parents. It is a perfect storm. Or better stated a disaster. Facts support that many students cannot even make the first payment on their student loan debt post graduation. The interest rates on these loans are typically very low compared to other forms of consumer debt (eg. Credit cards) and are hyped and marketed, rarely with adequate disclosure and lack of guidance or counseling. Geez, these are teenagers after all that are signing up for this debilitating debt load.

And while the hype of higher lifetime earnings can be higher for a college degree employee, it often is not enough or comes soon enough to pay off the loans required to get the degree. Sounds sort of like a scam, no? The scam part is that the cost of college and tuition has way exceeded the rate of inflation by as much as 10% per year in some areas. And the default rate on student loans last year was 7% in the first year! This does not include private student loans or those that are behind on their payments… imagining the debacle looming?

Collection calls and threatening letters make life miserable and can literally ruin and destroy ones future. Suicides have been attributed to debt overload. Why are we allowing ourselves and our children to do this? Don’t we love our children?

A single old neglected student loan of just $2,000 from 20 years ago can be as much as $30,000 today due to fees and interest. They do not just go away. Learn about Forbearance or deferment or forgiveness but seek the advice and guidance of a professional and/or a CPA as serious income tax implications can result in almost every decision when a loan default occurs. There are also government agencies that can assist with counseling and guidance. Trust me; it’s less scary to face this issue head on than to keep ignoring it.

And for those of you who’ve not had to face this decision yet for your children, congrats! Do not take the route of loans over prudent affordable college choice. Tough love today is much less tough than a foreclosure or bankruptcy or worse, in the future. What hurts your kids hurts you much worse.

Debt and Taxes

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Posted on August 16, 2011 by admin

We are broke. Sad but true. Greece finally passed their new austerity program but not without riots and revolt. Italy is on shaky ground and Spain is rumored to be next in line to seek relief with billions infused. Are we next? President O’Bama warns that we need to increase taxes and he is correct. Our Nation and the economy are on a collision course for disaster without immediate change.

And there will be change (hopefully not just nickels and dimes) the question is how much change? And will you be ready and be able to thrive for the Teutonic shift coming? How can we be certain change will occur? Because we are living with the lowest tax rates in modern history! The top income tax rate is that for every dollar you earn, the most you would ever have to pay in income taxes is $.35 cents. And that is just incredibly low.

After WWII in 1944 our income taxes sky rocketed. Back then for every dollar earned the most anyone would pay was $.91 cents. In other words, you the high income earner got to keep about $.09 cents of each dollar you earned. And, this was not the highest tax level. For three years between 1944 and 1964, the highest income tax rate hit 94%! So for every dollar earned high earners would only get to keep about six pennies… from each dollar!

And there were no tax cuts for capital gains… and now we have a national debt that is staggering, literally. Our debt, the amount we owe as a nation, exceeds $15 trillion dollars! That is stunning. And we add more to this amount at a rate of about two million dollars per minute.

Do not kill the messenger but profit from the knowledge of what may lie ahead. Fact is that 48% of American taxpayers pay ZERO tax. And while many of these no income tax paying Americans are the rich with sophisticated tax planning strategies and write offs and deductions, the larger problem is that the “poor” in America far outnumber the rich and they too pay ZERO income taxes. Even Presidential Candidate Mitt Romney moved his investments off shore (legally) to take some of the bite out of incomie taxes. You could take advantage of a totally tax free retirment with just a little research or “click here.”

Just imagine if everyone had to pay a simple flat tax of say 15%. No matter how many deductions or tax avoidance plans you employ, a minimum flat 15% is collected on every earner at every level. And this would include corporations (which currently pay less than individuals as a percentage of their gross income).

This would solve our budget deficit and begin to reduce our national debt immediately. But until this occurs, you can make a difference now. Vote with your dollars and just stop buying things you don’t really feel that you need. Make a game of it… set yourself and your family a goal and a time frame to see how your life may improve with less stress and less stuff. We love to see weight loss on the biggest loser and I bet you’ll love even more learning how much better you will feel trimming your monthly expenses.

Losing Even When You’re Correct 75% of the Time? The Dave Ramsey Myth…

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Posted on August 22, 2011 by admin

So we met a person who about eleven years ago, was finally at a place in her life where she had some extra money that she could invest for her retirement. She also did a ton of homework and internet research on what to buy, which got her to eventually buy into the philosophy that over the long haul, stocks and stock mutual funds outperformed almost all other places to invest your money. But with one huge caveat, it would only come true if she would use a “buy and hold” strategy. Simply put, not try to time the stock markets by buying and selling her stocks or mutual funds when she felt things were either good or bad.

Up until the last decade, this old idea of not selling investments, but only buy and add to them, was a very wise investing advice. But then things changed and the economy in general entered a different type of phase than it had been in previously. As of now (August 2011) the stock market illustrated by using the S&P 500 index has had zero capital appreciation over the last 10 years. Worse news (if there can be worse) only 75 percent of the S&P 500 benchmark’s stocks pay a dividend, down from 90 percent in the 1980s, according to Bank of America/Merrill Lynch.

Instead of the norm in the market generally rising each year, it began a tortuous sideways, whip saw type of path. Our economy the past decade is one where investments make nice returns for a year or two but then violently reverses, taking back all that was earned. Sometimes taking back even more than she had earned, causing a loss of her actual principal.

When we talked, she was so frustrated with her money that she was ready to bury it in the yard versus endure the headache and heartbreak of worrying and experiencing a loss in value of her investments. But, whether or not anyone decides to invest or save money for the future, every day the dollar will lose a little bit of its value due to inflation (the price of things we eat, consume or use goes up slightly every day).

This means that you must figure out a way to allow your money to grow but without keeping you awake and worrying about losses. The surest way to accomplish this is to understand your personal level of risk (how much you could see evaporate from your monthly statements without freaking out). And really be honest with yourself on this risk thing. Next, do not try and earn too much on your investments. Play it ultra safe for a while.

Check out this example: Dave Ramsey says you should expect to make almost 12% investing in the stock market. If you could be lucky enough to find an investment that could earn 12% every year and did so automatically 3 years in a row, but then in the fourth year lost 12%… guess how much your overall average growth per year would be? Would you guess 9% or suspect maybe half or 6%? Would you believe only about 4.5%?

Why take the risk of making potentially more money on something that is not protected, even if its earning a whopping 12%; to be lucky and accurate three out of four years (75% of the time) just to end up exactly where you would have been by accepting a lower (but protected) less risky growth or interest or crediting rate? When the economy goes back into a cycle of expansion and growth, it may be okay to take on less secure investments. But for now, life has enough challenges and distractions without creating more for yourself by investing too aggressively.

Be kind to yourself. Don’t worry too much about the future and money. What will be, will be and everything has its’ season. Now is the time to hunker down, don’t go backwards in your investments and spend less money wherever you are able. To learn more about how “investors” made money compared to an “investment” return, click on this link:

The study looks at the 20-year period that ended Dec. 31, 2009: Average equity investment return = 8.2% while Average equity investor return = 3.17%

Ramsey’s Wrong, and it Could Hurt You More than You Think – Part I

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Posted on August 29, 2011 by admin

Come on Dave, we know you are a well publicized personal financial self proclaimed guru, and your basic mantra of spend less, pay off debt, be happy is marvelous. However, it would be ideal if you stopped giving investment advice and leave that to those other self proclaimed guru’s. Why should Dave stop offering specific financial investment advice? Because it is very unlikely that anyone now or in the foreseeable future will earn almost 12% annually in the stock market. Yet this is the return the Ramsey method and his website promote.

One size rarely fits all in dealing with personal investment advice. For example, the old school, 1980 -2000 philosophy of “buy and hold” hasn’t worked in the past eleven years and won’t work again until a Teutonic shift in the economy, national debt level and consumer confidence are all corrected.

What works in one type of economy (cycle) often doesn’t work in a different type of cycle. Using history is a great teacher because it can repeat itself. In fact, history and the general stock markets are repeating a cycle the nation went through between 1965 and 1982. It took seventeen years for the buy and hold method to break even back then.

Granted over a very long time the general idea of owning stock in great companies that pay dividends is ideal. But the first rule of getting out of debt and moving forward is NEVER GO BACKWARDS financially. And the risk of doing exactly that today is too great, even with companies that pay a sweet, relatively fat dividend.

Don’t be a fool! Anyone who implies, or worse (in Ramsey’s case on his website) that you should expect to earn 12% on average every year on your stock market investments are terribly misleading you. It is a fact that if you invested in the stock market back in 1926 and were still invested today, then yes Virginia, you would have earned an average of nearly 12% each year (including dividends reinvested).

But we are not in the 1920’s and it is a very different world now in the investment markets. The most recent 20-year period is vastly different than the previous 20 years before that. Nobody can tell you a great mix for your investments without a very involved and detailed look into many facets of your finances. And possibly the most important thing to know about “you” when charting your money plan is not financially related at all – it is how you deal with money, its rewards and setbacks, emotionally. Generally, it is emotions and not cerebral activity controlling most investment decisions.

People tend to buy and sell investments when it feels good and thus typically do so at precisely the wrong time.

What’s your next step? Ask your friends – people who seem to be happy and content in their life – how they manage their money. Seek out a professional you can relate to and see yourself working with on your own personal plan. Forget labels, certifications, degrees and pompous education credentials. That entire minutia is meaningless if you cannot communicate and trust completely in the advisor you select. Seek experience, someone who has survived crashes and financial tumult. Look for a personality fit as well as open, solid communication skills.

In the end, it’s your money and you get to decide how you want to manage it.

The Greatest American-Born Player, Ever…

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Posted on September 26, 2011 by admin

We all have our own heroes. Ours are those who have persevered and not only achieved but also excelled in their field. Today, the greatest American-born hockey player, Mike Modano, retired from his sport after playing most of his career with the Dallas Stars. What makes a really great athlete is the same thing that makes anyone exceed beyond their wildest expectations.

Perception and vision: The greatest hockey player ever was Canadian Wayne Gretsky who when asked what he thought made him so successful Gretsky replied; “good hockey players skate to where the puck is, but great players skate to where the puck is going to be.”

And so it is and so it should be in everyday life and in setting up your personal budget or expense worksheet. To be successful in saving money you need to be cognizant of not just where you “are” but where you are heading. Often we do not really want to know the answer to where we are headed financially but it’s something that will ultimately make you great for yourself and for your family.

Those amazing athletes didn’t get to the lofty perches alone or without help. They had coaches and trainers… and so should you. Whether it’s simple income tax strategies, or using a book keeping service to get you on the right track, assemble your team and get the best adviceso that you can achieve personal financial greatness and peace of mind. Even our US Treasury Secretary Timothy Geithner proclaimed that he used Turbo Tax which resulted in careless and avoidable (and very embarrassing) mistakes in preparing his own tax return.

Seek out the resources that are free or very affordable to get you back on track to being fulfilled with the warmth of knowing that your financial well being is preserved. For answers to your questions about how to be great financially, contact www.mymoneytrack.com for your free unbiased answers and advice.

Suze Orman is Wrong too, but about What?

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Posted on September 29, 2011 by admin

A few days ago ABC national news asked the infamous Suze Orman, (another self-proclaimed financial guru) whether a home owner who owes more than 20% over what their home is currently worth should just pack their stuff and walk away (basically telling the bank to shove it). What do you guess Madam Orman answered? Suze said take a hike – walk away from your underwater mortgage. But is that ethical or morally correct advice?

How can that be sound personal financial planning?

The world and especially Europe seemingly coming apart at the seams proclaims a new era and philosophy in personal budgeting and financial advice. Apparently (and according to an ABC News study), almost 12 million Americans are upside-down or underwater on their mortgages being valued at more than the homes they hold as collateral. And while billions of dollars were earmarked for assistance for mortgage modifications and mortgage renegotiations, only a small fraction of those funds have been allocated or lent out by the banks.

What will happen when homeowners begin learning that some of their neighbors aren’t paying and in most cases, haven’t paid their mortgage payments for months and in some places, years? The real estate and mortgage industry’s house of cards may just come crashing down. You can’t fault Peter for not paying on his upside-down underwater home mortgage if his neighbor Paul isn’t paying.

The process of home mortgage refinancing or loan modification is daunting, horrible, cumbersome, confusing, embarrassing and overall broken. The number of homeowners who barely hanging on but are still paying their mortgage payments along with those home owners that have not made payments but the bank hasn’t yet posted for foreclosure are the “shadow inventory” that is becoming a huge concern for law makers and Bankers alike. When there is an oversupply of anything, common sense dictates that the price will decline to get rid of excess inventory.

Over the past five years, home prices have fallen between 25% – 50% all across the country, and one in four homes is worth less than the mortgage on them! Plus, getting a loan or mortgage to buy a home is reportedly tricky and difficult for all except the Kardashians these days. So what does taking a hike from your mortgage mean to you and your credit rating? Certainly not a good thing for you credit wise but it gets frustrating to watch the big fish get federally funded financial “do over’s” while the tiny minnow consumer home owner personally suffers the humiliation and the financial Armageddon like set back.

Fact is that it’s much cheaper to rent than own a home these days than to own your home and pay a mortgage. Property taxes and cost of repairs and materials are at all time highs. If you’re in the ‘undecided but need to figure it out’ group, consider that you should at least go through the motions of working out a deal with your mortgage bank. And if you can’t see how or why you can make ends meet without a “bail out” or loan modification, here’s the first steps:

Call your bank or mortgage company and tell them your plight and ask for their loan modification package. Also, tell them that you will not be able to make any more payments on your loan until something can be worked out with them. (Note: unfortunately lenders seldom if ever begin to negotiate with you until you are way past due on your payments. So be prepared to not make payments to your mortgage company but as a safety net, make payments to an escrow type account to indicate “good faith” on your part later in case the bank plays hardball)

Send a certified letter to your bank stating what was said in item #1, and reference the time and date of your phone call made to them previously. (Keep those saved payments in your quasi escrow account as your cash reserve to use for rent deposit and possibly needing to pay for several months rent up front if you do vacate your home)

Contact a realtor in your area and ask them if they would list your home pending a short sale scenario. There are lots of realtors that actually specialize in this process and will work directly with your bank. (This is important too, even if the current market value is thousands below what you owe on your mortgage, it shows good faith on your part to work out of this bad situation)

Contact a professional debt advice source or consumer credit counseling service. (This is where www.mymoneytrack.com or similar service will assist you in getting your ducks in a row financially; once you default on your mortgage, it is likely that your credit cards will be severely limited or cancelled)

Forewarned, this will crater your credit score and rating by hundreds of points, and you’ll likely not be able to get reasonably affordable credit for up to 5 years. Chances are that if you’ve maxed out your credit cards and have loans on everything such as cars, boats and motorcycles your likelihood of getting more new credit is nil in this market anyway. But with savvy personal financial planning and use of protected assets such as IRA’s, insurance, retirement plans such as 401k’s and annuities you may be able to come out ahead in the long run. You must plan ahead and not just decide one day to pack it in and leave.

The bank took a risk and was compensated for their risk in the form of the interest they charged and you paid. Business deals go awry all the time – don’t beat yourself up too much over it. Major corporations run by Ivy League MBA graduates have needed US Government financial assistance.

Marriage is about Love but Divorce is about Money

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Posted on October 6, 2011 by admin

His wife met his girlfriend, so she filed for divorce. He apologized, they reconciled and wife took him back on condition that her husband put half their money in her name solely. He promised he would. Two years later and the promise is still unfulfilled. Worse still, is that the wife supported him while he earned his degree and licenses to practice and now she finds herself with three grown children and left out in the cold, at least financially.

But now, some states consider those licenses as perks earned during the marriage as marital assets and common property, which you are entitled to a portion. Regardless, love hurts. More than half of all marriages will end in divorce. Sad but true, and yet no one wants to spend their life alone. When the I do’s become the I don’ts, (or I didn’t and I won’t), it’s time to prepare yourself financially and brace for impact. Lacking a budget or retirement game plan going into the deal stinks. When leaving the marriage one must have a plan and personal budget and execute it faithfully (even if nothing else was faithful in your marriage).

Many successful men (and women) are controlling “A” types, assertive and do not like being asked a bunch of questions about “his” business or “our” money. This strong personality is what helped achieve their success but now it’s an obstacle you need to circumvent. No need to even try and butt heads or play legal hard ball – it typically won’t work out for either party. Playing nice and non-confrontational will be your best bet, until you get the decree signed.

You can search the internet for free software and a budget checklist for divorce. There are budget spreadsheet programs for looming divorces. Maybe you’ll reconcile but you still need to prep yourself in case the gig doesn’t work out and he cheats again later. Here are the big items or the must “do’s” before you take the first big step and separate.

1. Repair your automobile and make home repairs (if you intend to stay in the home), and buy necessary clothes for yourself and your children. This will begin your divorce process with these expenses already paid, rather than arguing with your spouse about who should pay them later. It seems that judges usually enforce the status quo, so establish a precedent now for what you will want to continue after the divorce: go back to school, get braces for the kids, begin medical treatments, etc.

2. You’re going to want a mailing address so that your soon-to-be ex cannot get confidential mail addressed to you out of your home mailbox. Open a post office box and use that to provide a stable mailing address as your life changes. And while you’re at it, start making copies of anything that looks like a statement for any account: credit cards, bank and savings accounts, investment and brokerage accounts, tax information, mortgage or loan statements and even frequent flyer airline miles or bonus points on credit cards that may have cash back or rewards accumulated. Even vacation and sick pay, season tickets, club memberships, timeshares and prepaid insurance all are assets that have value and should be split. Don’t delay gathering financial information, even if you are not sure if you want to divorce. Learning about your finances will make you a better partner if the two of you stay together, and will help you get the best settlement possible if you don’t.

3. Most women seem to focus on keeping the house and although you may be able to afford the mortgage, the other expenses of upkeep and maintenance usually surprise you and will likely exceed the amount you originally budget. Be aware of dirty little tricks the ex may pull such as turning off the utilities if he/she moves out of the home. Call the electric, gas, water and sewer, phone, internet and cable providers, burglar alarm monitoring service (also change the password code on the key pad and the “safe” word code with the company) and get all of these transferred into your name solely.

Do not fret and worry as much of the family laws on things such as child support are pretty much cut and dry and won’t leave much room for arguing over in the long run. Try to keep an open mind and have the goal of getting the process done and over with ASAP. The longer it drags on, it won’t improve your odds of a better deal and it just costs much more in legal fees and stress to you and your family. For help with these or other topics on divorce and budgets, please call or contact www.mymoneytrack.com. Please consult an attorney for specific help as My Money Track is not a legal service provider and does not offer legal advice.

You are not alone…

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Posted on October 21, 2011 by admin

Some of us Baby Boomers fondly remember the TV show of our youth: “Lost in Space.” It was another variation of “Gilligan’s Island,” with a lost or stranded theme which made for great entertaining television. Boomers are infinitely familiar with self improvement, introspection, wondering, wandering and years spent or “lost” in the process.
But enough is enough already.

At an age and time in life when most boomers thought we’d be slowing our pace professionally and transitioning to playing with grandkids, just the opposite has and is occurring.

There is consistently more month than money. Split families, layoffs, corporate downsizing, divorces… just to name a few. Result? Doubled expenses coupled with lower wages and outrageously higher costs. Many Boomers and Gen-Xer’s have not made personal financial planning and expense budgeting a paramount necessity; IRA’s and 401k’s seemed like a luxury instead.
The world both seniors and boomers grew up in; one where it was customary to anticipate our income and wealth to generally rise every year, has somewhat evaporated into the smoke and mirrors of the derivatives created by investment bankers and Wall Street. If the NASDAQ Composite Index (which is an index of over 5,000 stocks used to gauge the general price direction of the overall stock market) were to literally double in value from where it closed recently (10/3/11), the Index would still be 5% lower than it was 11 ½ years ago. Generally speaking, no one has made any real money investing the past ten years.

It gets a little worse. Think about this: those living on a fixed income the past twenty years (1990 – 2010) have suffered a whopping 39% loss in purchasing power of their money. In other words, if your income stream has not risen by nearly 50% over the past two decades, your lifestyle is dramatically “smaller” than back in the 1980’s.

And now that boomers are in their fifties and sixties, there is not as much time, energy, opportunities or resources to tilt this listing financial ship. No financial spreadsheet or software program in the universe can solve this dilemma. You may need to seek professional help to guide, advise and most of all to create and reassure that you have answers for a protected income stream you cannot outlive.
This is the New Lost Decade Boomers are most familiar and lamenting. Lack of real growth in wages, earnings or appreciation of assets has effectively set back expectations and realistic retirement dates by 15 years or more. Some Boomers in professional, non-physically demanding careers, plan to basically never officially retire. And how could they with the looming threat of hyper inflation literally around the corner? There are solutions and personal adviceavailable.

When you need the best local financial advice or budget help available, contact My Money Track to help you get your life back on track. Your IRA or rollover is just too important of an investment to ignore. Local professional advisors are willing and able to help.
Now is the time to pick up the telephone and focus on finding solutions for your financial plan, IRA’s, 401(k)’s and any retirement plan or account. Long term Interest rates are at sixty-year lows and in some cases, short term interest rates are literally at zero percent. Hypothetically, rates can’t go negative; ergo this is a unique time of insight as we can almost be 100% assured interest rates will eventually rise. Knowledge such as this may present money making opportunities for those who know what to do.

What you don’t know about Divorce

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Posted on October 13, 2011 by admin

I don’t have all of your answers; I’m just taking my chances as I see them. Someone get me home, every day I feel a little more alone. I see the looks on their faces and I don’t feel the same… And it’s getting old. Trying to do what I’ve been told, I see it all in front of me now; Waiting on someone to feel the same, waiting for someone who can talk straight and it’s getting late… Let me Out, Let Me Out.

Isn’t it strange how lyrics to a song can often perfectly describe a situation gone awry. Nobody said it would be easy. Divorce sucks, plain and simple. Especially if you have kids. Actually, it really sucks for the kids, but good news: kids are super resilient. The fact is that more kids today are in divorced or blended families. It’s becoming more of the norm than the exception, and that fact sucks too.

Life is hard, and no one can make you happy, other than yourself. There are others to consider besides yourself. But when you’ve concluded that there is no other path for you, you need to get out. Having your personal budget in place financially is a semi-no-brainer; enumerating the cost of living single, figuring out how much to spend or save is just a math problem. We can help you set up your personal budget spreadsheet and teach you how to track and live within your means. But allowing for the emotional cost is much more difficult when transitioning to a single income and living alone or living without spousal support.

And here are a few things about the cost of Divorce you won’t learn or believe until you take the plunge and begin your freedom journey:

Joined Forever. As a parent you will ALWAYS have interaction with your ex spouse. No matter how much you believe you will be totally free from that jerk, you will cross paths with them eternally and their new significant others and their bonus kids. And you best learn how to deal with this otherwise you will completely stress out your kids as they will hate the icy confrontations. Learn to fake or feign friendliness.
Unintended Consequences. Arguing cost more than money; it cost your sanity and worse, your trust not only in others but in yourself. You will become disenchanted with everything for a while. You will not feel comfortable making decisions due to fear of negative outcomes.
Spoiled Kids. Since you have your children every other weekend, both parents will do something extra special to make those weekends fun. Thus, children of divorce get indulged with special weekends every weekend. Also, summer trips are doubled, Christmas or Hanukkah and birthday presents doubled and yep, even allowances seem to get doubled for the children. But most of all, the kids will always have an escape route and will certainly use it to perfection, unless you communicate constantly with the “ex.” (see item #1 above)
Friendships End. It is a Noah’s world out there – everybody is paired up. At first, your married buddies and friends will be so supportive, but that won’t last long. You will not be “set up” as much as you think. And your married friends won’t dig their spouse hanging out with the “free single person” much. They’ll be a little jealous of your new freedom and as hard as you try, the drama of the split will be a novelty at first but it will fade very quickly. And your old friends will not want the guilt, hassle or confrontation of figuring out “which one” to include in social events; ergo you’re both out.
Welcome to Therapy. Therapy not only for you but for your children, and that’s not cheap. And neither your lawyer nor your friends (soon to be former friends, see item #2) are therapists, and both of them will ultimately cost you way more than professional help. As hard as you may try, try even harder to not discuss anything with anybody (other than your paid professional therapist or help group) about your divorce, ex and kid issues. Remember, divorce sucks, no one else wants to hear about it for more than a very brief time and whatever you say, may and will be “used against you” in social situations for years to come.
Crazy Singles. It may seem exciting to fantasize about being free and single at least every other weekend but it’s nutso out there… literally crazy. You’ll go through the nightlife and cool evenings out and meet other “really super cool” divorced people, but it’s get old fast. You’ll miss those random “boring” Tuesday nights of just going home to your spouse and kiddo’s and the comfort of a home, simple dinner and schedule. And those super cool new friends will disappear as suddenly as they appeared when they meet a mate. Note: the first serious relationship post-divorce rarely ever works out.
Imagination Lost. You’ll have to focus very hard to not become jaded and cynical. In the end, imagine a happier future for yourself. It will happen. But it is all up to you.

When you need the best local financial advice or budget help available, contact My Money Track to help you get your life back on track. Your IRA or rollover is just too important of an investment to ignore. Local professional advisors are willing and able to help. Stay positive, get into support groups with other folks going through transitions, divorce or loss. Divorce is similar to a death in the family. Often it may seem like the death of the family, but it’s not. Eventually you will be happier and it will have been worth the pain and effort. Just be prepared and stay strong. We are here to help.

Single Moms and the “I” word…

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Posted on October 26, 2011 by admin

You have given your life and sacrificed your single lifestyle for the betterment of your child or children. Few if any moms could be labeled as “selfish” when it comes to your children’s health or basic needs. Until one has a child, it’s really tough to truly comprehend how much things change in the parent’s world. Moms are committed and dedicated to protecting their kids from harm. Where’s this leading? There is no “I” in team (or seemingly in parenthood) but there is in Insurance.

The last thing imagined when dreaming of becoming a parent was ending up being so “alone.” But more than one in four children under age 21 are raised in single parent homes. And about 84% of custodial parents are mothers; of those moms, almost half are currently separated and almost a third has never been married.

Astonishingly, nearly 40% of single moms are over 40 years old.

Single moms often must bear the burden of at least “two.” Single Moms often are the sole provider of money, food, shelter and education. And yet, few moms (only one in four) have any life insurance. And of those few that do have any life insurance, typically they have way too little.

In 1960, the cost of raising a child was $25,000. Today that figure is more than $220,000, not including college. Few single parents, especially single moms, have enough life insurance to pay their final debts, let alone provide for their children’s basic needs.

Life insurance should be a priority for all parents but especially for single moms who can’t rely on the income or support of their children’s father. For those who cannot afford a lot of coverage; there is still a little peace of mind in knowing they have a life insurance policy that can contribute toward their child’s future, regardless of the amount. The first step is to create a budget to figure out how much insurance a single mother can afford. Even if you think you can’t get life insurance, it pays to find out for sure. Contact us for more information on your budget plan and on locating affordable life insurance.

Then the next step is to have a plan to pay off debt and pay for life insurance. It’s remarkable how inexpensive some life insurance actually is, particularly “short term” life insurance that is in force only until the kids are grown. Beg borrow or steal (okay, not really steal…) but moms need to ensure life insurance is obtained.

Stories abound of tragedy where a mom didn’t buy life insurance and well… you don’t want to hear the rest.Instead, rest assured that your kids will have something to help support them in a worst case scenario. When you need the best local financial advice or budget help available, contact My Money Track to help you get your life back on track. Your IRA or rollover is just too important of an investment to ignore. Local professional advisors are willing and able to help.

Losing your mom hurts, losing your home, food and everything else hurts more. Be there for your your children fiscally even if you can’t be there physically.

Home Sweet Home or maybe not?

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Posted on November 7, 2011 by admin

Lurking in the “shadows” has a new meaning in terms of home security.
Protecting against predators is a no brainer for baby boomers and our parents but now a more aggressive and much more discreet thief looms in almost every neighborhood, nationwide. Losing valuables and property such as your iPad, laptop or large screen HDTV is expensive but those things can (and should be) insured.

Property and casualty insurance is really inexpensive (actually cheap) and will replace those precious personal items lost to theft or damage. The new boogey man that will steal away your retirement plan, financial plan and even your IRA’s or 401k’s, is a silent assassin that is quietly, undeterred siphoning off hundreds of thousands of dollars of your money.

And it’s your safe money, the once considered “core” holding of any investment plan or budget item. It is the value of your home. No longer is owning a home considered a super safe investment for retirement. Tens of thousands of homes are already owned by banks but many more will soon beforeclosed with a for sale sign in the front yard or window.

Untold and unimaginable numbers of homes are going to be dumped onto the real estate market unless nothing short of a miracle occurs. Home values have already dropped 25% (even more if you add in the cost of inflation) and could drop as much or more in the future.

Why? Banks are not very good landlords; In fact, they are horrible at it. They will add fuel to an already out of control inferno economy as the banks are forced to raise liquidity (cash) to stay in business. There are already more homes for sale than there are buyers yet the roughly 1.6 million homes in the nation’s shadow inventory promise to drag down home prices for years.

In relative “hot spots” such as Texas, 1 out of 985 homes are in foreclosure, but in Florida 1 out of 368 and worse Nevada 1 out of 118 homes are in foreclosure. Even in no-so-glamorous, no flash and dash Midwest states such as Iowa, have 1 out of 667 homes in foreclosure (the national average historical number would be more like 1 out of 15,000 homes).

But this can be good news for those who are prepared. What’s the best financial strategy for you and the shelter debacle?

If you are already renting, keep renting; at least for a couple more years. Do not sign a lease longer than 12 months as better deals on homes almost practically a sure probability for your future personal budget. If you are divorcing, let the “ex” have the house and you take the cash or property equivalent instead of the real estate. It will be tough to swallow now but you’ll be grateful you did later.

If you currently own your home, consider selling it. Get out and invest whatever cash you may get from the sale. Invest it into very low risk investments that are insured by an institution or a state or federal government; for example, annuities (fixed annuity or index annuity, even Suzy Orman loves these), CD’s, US Government money market, or cool hybrids such as no surrender charge, single pay life insurance. Compare the interest rates and shop wisely. Seek out local money help, advice and credit counseling as well as paying off debt.

Learn all you can about simple but elegantly sophisticated ways to use new life insurance contracts to provide a tax free income in retirmeent that you cannot out live.

Then hunker down for the coming real estate Winter and relax… enjoy the ride because there’s nothing you can do about it other than wait it out and be ready for the “spring” (pun intended) eventually. Good deals appear to be popping up everywhere but hold off on buying or committing just yet. The art of the deal is only getting better.

ZEN and the Art of Social Security Repair

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Posted on November 11, 2011 by admin

The Dalai Lama was asked what surprised him in life the most. He
replied, “Man, because he sacrifices his health in order to make money.
Then he sacrifices money to recuperate his health. And then he is so anxious about the future that he does not enjoy the present; the result being that he does not live in the present or the future; He lives as if he is never going to die, and then he dies having never really lived.”

Balance and Perspective. Why then do we fret so much? Simple answer: MONEY or the lack of it. Struggle and strife to get paid, just might be the path to all evil. But hey, baby’s gotta’ eat; and get new shoes.
Be sure to get all of the “free money” available to you and yours.

The problems in Europe and particularly Greece and the Greek debt along with their austerity mandates offer insights as to what we may face here in the USA. Social Security may be broke and busted but it’s still writing checks; get all that you’re entitled to before it changes. Here are three super secrets for married folks:

1. Pick which Retirement you want; yours or your spouse’s:

Obviously select the one that pays you the most. Typically in a marriage there is a huge difference in wages. But even if the lower wage earner has worked, and has earned their own social security benefit, he/she may elect to receive an amount equal to half of their spouses instead. This is called your Spousal Benefit

2. Double Dip:

A person who has reached full retirement age could elect to take his/her Spousal Benefit and delay taking their own social security benefit. Working or not, take your spousal benefit and delay your own and let it grow until you’re age 70. It doesn’t matter if your spouse is taking their social security benefit or not. And upon age 70, if your own benefit is higher than the spousal benefit you’ve been receiving, just swap and take your own. That’s more money for you now and potentially more money for you later.

3. Getting Paid to Wait:

Typically when one spouse hasn’t worked outside of the home as much as their mate, she won’t have much if any social security benefit and will default to receiving her payments when her higher earning spouse retiresand decides to start taking social security payments.

Learn too all you can about simple but elegantly sophisticated ways to use new life insurance contracts to provide a lifetime tax free income during your retirmeent years; one that will supplement social security.

DO NOT WAIT. Once both spouses reach full retirement age, the higher earner (Husband in this example) should go ahead and file for his social security benefits, the lower earning wife then file for her spousal benefit and step three, the husband immediately suspends his social security benefit request. His benefit amount will continue to increase (and by about 8% per year too!) and then when he reaches age 70, go ahead and re-file to start taking his social security retirement benefit.

This will give the wife free monthly money instead of thinking she must wait until hubby fully retires and takes a check from social security before she can… very cool idea.

For more details contact http://www.socialsecurity.gov/retire2/applying6.htm
or feel welcome to call www.mymoneytrack.com 972-385-7606.

True Cost of College – Updated

Posted on November 30, 2011 by admin

Occupy Wall Street is being dismantled and quashed now, but It won’t be long until Pomp and Circumstance and mortarboards are in the air along with the excitement of college ahead for high school graduates. But then reality smacks; 65% of students that graduate from a private college have outstanding student loans when they finish college (source: Council of Economic Advisers).

And for public, “in state” universities, it is going to cost about $150,000 per kid for a college education. This sum for a private college or University almost doubles! With the rapidly disbanding Occupy Wall Street movement, taking out student loans without being able to find jobs to pay them back is ludicrous. Is it a tuition scam being pulled on our youth and their cash strapped parents? The scam is that the cost of college and tuition has way exceeded the rate of inflation by as much as 10% per year in some areas. Providing a college degree for our children is becoming more of a dream than a reality for many families and taking out loans in this economy is like Russian roulette.

“Choosing a college is not about a cost differential of a designer purse or pair of sneakers over a generic product, it’s about a life charting detour if taken too lightly.”

But parents and students continue biting off way more debt than they will ever be able to chew or hope to digest. A college degree is of utmost importance, especially today but at what cost? We have become really good consumers when it comes to almost everything else… but not so much when we think the purchase is a necessity for our children.

Students today are graduating with literally hundreds of thousands of dollars in debt with a degree that is may not be very marketable in a vile economy and a horrendous job market.

Parents bought into the dream that a college degree was paramount but often failed to factor in the marketing genius most universities have deployed the past 25 years. Colleges now invest millions into stadiums, student recreational facilities and gyms that entice enrollment but drive up college cost.

It is typical today for a university student to graduate with the equivalent amount of debt that could have easily purchased their first home! As Occupy Wall Street has shown, college graduates cannot pay the student loan debt and the net results are horrible credit ratings, foreclosures and even bankruptcies of the student and often their parents. It is a perfect storm, or better stated, a financial disaster.

Creditor Collection calls and threatening letters make life miserable and can literally ruin and destroy ones future. Suicides have been attributed to debt overload. And for those of you who’ve not had to face this debacle with your children, kudos. Do not take the route of loans over prudent affordable college choice first.

Applying for grants and free application for federal student assistance (also called FAFSA) is the ideal first step. Secrets on tax free 529 plans and tips for filing for aid using strategies with fixed annuities, indexed annuities and even variable annuities are available. Be smart when applying for aid, grants and low cost loans but also apply Tough love as well. Being tough today is better than dealing with a foreclosure or bankruptcy (or worse), in the future. Get started by getting your free Holiday Budget ePlanner from www.mymoneytrack.com and set up your plan today. And to learn more about the Dark Side of Student Debt, click here for the report from Kiplinger.

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