How could a man who earns well over $1 million annually from royalties in textbooks alone, be so ill-advised putting his own money to work? What is it that Professor Bernanke has done with his own moola that is so perplexing?

In annual reports from the central bank, the Fed Chief and its governors must report their personal investments and holdings. And would you believe that Ben Bernanke’s two largest personal investments are in fixed and variable annuities? That’s right, variable annuities (crickets chirping). It’s a fact: The most powerful financial authority owns both variable and fixed annuities as part of his retirement accounts.

GASP!? Why would Ben want to own allegedly more expensive tax-deferred vehicles inside an already tax-deferred account? Can he really be that ignorant?

Consider this: maybe it’s not all about the tax deferral benefit offered in annuities, but about the guarantees provided to retirement nest eggs.  Surely, in addition to his own experience and intellect, Ben has access to extremely experienced and competent financial advisors he could bounce his investment ideas off of…

According to the FED’s annual reports, Ben owns bonds and mutual funds and other stuff; but his biggest holdings are annuities. So maybe Ben knows something the pundits and bloggers and self-proclaimed experts do not understand.  Dave Ramsey is certainly not a fan of the investment product Big Ben prefers to own.  Most often annuities are  “perceived” to have higher cost than other types of investments and that gets the “guru’s” on radio and television to cackling.  But when investing real money, It’s actually not about cost, it’s about what you earn on for your money (net, after all expenses) that matters most.  Heavy hitters in the millionaire/billionaire club figured out a long time ago that it’s not what you spend, it’s what you earn; and if one cannot muster the courage to accept and manage a little risk, one is destined for personal financial Armageddon in the long run.

Annuities in general help remove the typical types of risk that scare the bejesus out of us when we invest our retirement money in IRA’s and 401k’s.

Who is truly wiser; the financial experts who write about money or the mover, shaker and policy maker? Our money is on Bernanke and other highly successful people who see the value of an institution (such as an insurance company) standing behind their investments and protecting their money from ultimate losses, whether living or dying. Who knows, maybe Ben is dumb … like a fox?

* Information and data quoted from Bloomberg: Ben Bernanke personal net worth takes a hit 7/15/11.

Back then, Oppenheimer had just completed a survey on the “difference between male and female investment behavior,” and guess what?  Since then, little has changed between the Venusians and Martians.  Baby Boomers nearing retirment are are looking for anwers with their personal budget.

As it turns out, men and women both want the same thing… the difference is in how the genders “go about” achieving their desired results.  And while this blog may be labeled as “sexist” by some readers, it is what it is… despite what Gloria Steinem may think.

Summing it up; today as it was back then, men are risk takers and women are not.  An investment strategy that lacks protection or “air bag” features will not pass muster with most females. Women often control the household finances and are the family’s CFO.  And since generally women outlive men, females end up having to deal with all things “financial.”  The “last man standing” is most often a woman when dealing with family finances. But as a “couple,” there are vast differences in investment “style.”

Newest data just released by the Spectrum Group from Illinois confirms once again that one out of three men consider themselves to be “Aggressive” in their investment nature compared to just half as many females.  Conversely, 23% of women consider themselves to be “Conservative” investors versus just 16% of men.  Also, 50% more men than women report they “plan to become more aggressive” in the current market environment.  Similarly, men are much more “confident” with their investment prowess than women. Possibly due to general lack of investment confidence, women then are much more likely to use the advice and help of a financial professional than are men.   Even more interesting is that very few (1%) of women rely on their friends or family for financial advice.  Men are much more likely to refer or defer to their friends for financial information.  The local wise advisor will gear their investment spiel to include the female.

Sadly, many males in the insurance and investment industry ignore the woman’s perspective in the proposal for the family wealth plan.  Providing a reliable, stable and predictable income stream for the spouse and the children (who are both likely to outlive the husband) is what women want.  Low cost Variable, fixed and indexed annuties may provide the income stream needed in retirmenet. Seek local advice on how an IRA or 401k rollover can help accomplish these money goals.

And really, when you think about it; that’s exactly what men want too.  Men just seem to take a bit longer figuring that out for ourselves. Communicate openly with your spouse and commit to work through any differences in family finances. For many couples, even low cost life insurance could provide retirement solutions for the future.  The more things change, the more they stay the same.  Live long and prosper.

But imagine if instead of your house, you purchased Apple stock in 2002. Can you fathom that you’d be worth $10 million today? And what if those shares were owned in your IRA or even better, ROTH IRA? Takes your breath away doesn’t it? Noted stock jock Jon Najarian looked back at various common assets purchased the past 10 years (e.g., a house), and priced them in Apple share price terms.

The typical American home cost $228,000 in 2002 (according to U.S. census data). With that money, you could have bought 18,704 shares of Apple at their price a decade ago of $12.19 a share. Today, that home is worth nearly $280,000, but that hypothetcial Apple purchase is worth $10 million!

Other examples Najarian used in his Apple exercise were on energy costs and tuition. Filling your tank for a year in 2002 cost $840 on average, (according to the U.S. Energy Information Administration). “But had you taken the bus” as Najarian put it, and purchased 68 shares of Apple ($840/$12.19) instead, you would now own $36,244 worth of the iPhone/iPad maker today… a nice $35,000 profit and enough to buy new walking shoes for life.

Paying for college for junior? Annual room and board plus tuition for a private college was $31,000 in 2002. If you’d allowed junior to pay his own way and instead bought 2,543 shares of Apple, that stock investment would now be worth $1.36 million today, according to Najarian’s calculations. Tuition now costs $39,000 on average. Now that’s an impressive amount and blew away all 529 college saving plans.

“This extreme exercise is not to show people how ‘dumb’ they were, but rather to illustrate how people put too much into their home a decade ago and that maybe they should have diversified their wealth over more asset classes,” said Najarian. “Right now we should be asking ourselves, ‘What will be the most inflationary asset of the next decade? And how much money should I put toward it.’ ”

Good Point Mr. Najarian and with the stock market and popular companies like Apple, Whole Foods and even Tiffany blowing the roof off their stock prices, you may need to consider protected growth investments such as annuities. Sure they carry slightly higher fees than unprotected wealth accumulation products; however, you do get 100% principal protection. In some variants, an annual increase or bonus up to 10% is available. Most annuities annual bonuses will range between 5-6% but even that’s not too shabby since CD’s and 10 year treasury bonds currently offer less than 2% annually.

What was “hot” yesterday will be tomorrows “dog.” And in general the stock markets have gone basically nowhere the past 10 to 12 years. Considering that short-term interest rates yield virtually zero percent, eventually they will rise and inflation will rear its head like an angry dragon. Owning long term bonds or even some “fixed annuities” may get slaughtered when that era begins. Bill Gross, the manager of the largest amount of bonds in the entire world, concurs. Seek information on index or some low cost, no-load variable annuities that offer inflation protection and hedges. If you have children you may also consider a super cool tax free hybrid called universal indexed life or if you want to take more risk for potentially more return, universal variable life could be your “quasi-lotto” winner for retirement.

Never invest prior to reading the “fine print” and seek out local professional investment or financial planners to walk you through the maze of options and choices. Your IRA and 401k or 403b may be a Baby Boomers best asset over the next 10-15 years… Know how to invest it wisely and how to invest it now.

Well, it’s one for the money, Two for the show, Three to get ready, Now go, cat, go. But don’t you step on my blue suede shoes.

If Baby Boomers felt it’s been tough financially on your parents and grandparents the past few years, it was nothing compared to the drought following the Great Depression in 1934.  More than half of all seniors back then lived in poverty and often went hungry.  Our great grand parents had no annuities, little life insurance and few if any truly local financial experts to offer advice or help.   In 1935, our Government came to their rescue and adopted social security.  In the beginning, social security was a single lump sum payment instead of the lifetime monthly check today.  The first ever recipient of social security worked a single day and paid in one nickel; retired the next day and got back $.17 cents!

What people need is a steady, reliable monthly check they cannot outlive.  We typically invest and grow our money so that in the future when Baby Boomers are seniors, our money when generate a stream of income; rather from interest or from an annuity.  Pensions filled this need for our parents but few companies offer these expensive type of benefit plans any longer.  Gen X likely has no recollection of pensions.

The first person to receive lifetime monthly payments from Social Security, was Ida Mae Fuller on 1/31/1940 for her 65^th birthday.  Ida Mae had paid into Social Security a total of $24.75 and her first check from Social Security was $22.54… and she lived until age 100.  During her lifetime, she collected $22,888.92; that was a pretty good annuity investment for her!

Even Elvis Presley had a social security account. According to Social Security last year, people naming their babies “Elvis” dropped off the top ten most popular names list, thus ending a reign that began in 1955.  Today social security is in a precarious position.  Without changes immediately, it will not be able to pay out the benefits promised to Baby Boomers or Gen X.  It’s not a political problem but a math problem.  In 1935 when Social Security began taking F.I.C.A. with-holdings from our paycheck, the average life expectancy for a male was age 60 and age 64 for a female.  Yet Social security payments didn’t begin until age 65.  Today life expectancies are nearer age 83, yet Social Security begins at age 67 at the very latest. Today, Life Insurance Illustrations are ran up to age 120!  (and low cost, cash value, whole life insurance may the best kept secret ever for tax free retirement income)

In addition to Baby Boomers living longer; the work force is changing.  In the 1940’s there were 42 “workers” for each “retiree.”  During Elvis’s generation of the 1950’s, the ratio of workers had dropped to 16-to-1 and as of 2010, there are less than 3 workers per retiree recipient.

Obviously our friends in Washington are going to be looking to increase F.I.C.A. income taxes (in case you’re wondering, FICA = Friends I Cannot Afford).   Making the income tax laws work to your full advantage is very important.  The benefits of your having a income tax deferred IRA or 401k or 403b are simply obvious and numerous.  Don’t forget about old 401k or 403b plans you may have left behind at a previous place of work or employment.  It’s simple and smart to do a “rollover” of your old 401k or 403b into a less expensive, low cost self directed IRA.

If you are uncertain about how and IRA or other retirement plans work, seek a local financial or money expert and get their advice.  Tons of good financial planner and investment advisors are in Dallas, for example.  Even better is the totally income tax free ROTH IRA.  But special and unique rules apply to these investment gems.

Uncertainty creates unique opportunities for you to inform and educate yourself and family about tax advantaged solutions for retirement planning.  Lifetime Monthly Income is more desired by Baby Boomers than wealth accumulation.  Having an institution such as a bank or an insurance company standing in the breach between financial success and failure is paramount.

Get started today with you and your family’s journey to financial independence and retirement bliss.  Get help local help and advice on the financial plan that is pitch perfect for you.  Even Elvis would have been proud.  Thank you, thank you very much….

We are going to get greedy, again.  Even though we soon forget about past bad investments (Bear Stearns, General Motors, Washington Mutual and Pets.com… remember the sock puppet), fear and greed dictate most investment decisions.  For many years our 401k’s have effectively been 201k’s but now we are basically “back to even” and again ready turbo charge our retirement plans.  And while there are plenty of stupid investment bets we may make, the dumbest mistake is the easiest one of all to make.

Putting money inside 401k’s or other company sponsored retirement plan into Company Stock, is the Idiot’s plan for riches.

You’d think after Enron and FannieMae we would learn from horrendous past examples and heed sound financial advice… but sadly, no.  Only four out of ten 401k’s offer their company’s stock as an investment option but of those plans that do, on average 1/3 of the employees equity investments are in their own companies stock.  And who is there to help or guide these 401k participants, especially locally?

The majority of these employees are baby boomers nearing retirement; so why do these “boomers” retrace poor investment steps and lack financial planning?  Often it’s because the big wigs in the company have tons of company stock and the workers figure if it’s good enough for the CEO, then it must be good for me too.  And “owning” a piece of the franchise that employs you (ESOP), “hypothetically” is a great motivator for the worker bee.  This type of “rationalization” can be financially terminal.  How the wealthy officers of a company invest their money has no relationship to average Joe Employee and putting more assets into the company breaks…

Investing rule #1; diversification.

According to Vickers Stock Research, (which follows executive company stock trades), over time, the amount of stock sold by U.S. executives outweighs the amount bought by more than two to one. Do you think they know something?

Relying on your company to pay your salary and benefits such as health insurance is enough exposure in one asset for almost anyone; why invest more by purchasing their stock.  One argument used by the employee is we “get to buy company’s stock at a discount.”  A discount to what?  Ask former employees of WorldCom, Lehman Brothers and even companies that didn’t go bankrupt like Bank of America but has lost billions in share price declines, if they would buy company stock at any price, discounted or not?

Owning equities in a long term portfolio is a great idea; but short term the risks must be mitigated not extrapolated by doubling down in your company.  Imagine how much you may already depend on, and how much of your net worth is associated with your employer/company already.

Open your eyes to how much exposure you already have with your employer.  Invest all you can up to any amount the company might “match” in your 401k plan (this is literally “free” money) but look to other less risky investments or strategies for the non-matched amounts.  Here is where you can benefit from a local insurance agent or investment advisor to make a difference for your budget and retirement goals.

We still have in the USA, “real unemployment” rates in double digits (according to DOL) and National Debt above $15.3 trillion.  With no resolution in sight for the “shadow home inventory” foreclosures… look into annuities, low cost index life insurance and other ways to protect your money when investing.  New rules for IRA’s and 401k and 403b plan rollovers change often.  Seek help and advice for your financial road trip… it’s totally free.  Don’t be fooled; social security is an annuity and for lifetime monthly income, an annuity that has “low cost” and low expenses may be ideal for you to consider.

Not that she is the expert on such topics, but even Suzy Orman writes and expounds on the benefits of both immediate and indexed annuities.  And Dave Ramsey disciples preach the benefits of having a personal budget.  Knowledge and information delivered to you by a local professional advisor about safe products with lifetime income benefits and assisted care riders are answers to the questions you may have.

And for those who understand the potential of equity or “stock” ownership long term; would likely love learning what are ”variable” annuities.  Many variable annuities are available with similar 100% principal protection offered by fixed or indexed annuities.  It’s easy to find help, just ask around or contact us.  Start a conversation with a local professional, plant your seed of “knowledge” and then wait for your retirement plan garden to bloom.

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.

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….

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.

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.

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…

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.

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