Monday, July 6, 2020




Veit Johnson
Financial Coach

Our Mission: We have a plan to help people get out of debt quickly and build wealth for early retirement.
It is never too late to start!

Schedule a 15 Minute Free Consultation Appointment

"As you begin changing your thinking, start immediately to change your behavior. Begin to act the part of the person you would like to become. Take action on your behavior. Too many people want to feel, then take action. This never works." -John C. Maxwell

Sunday, July 5, 2020

Covd-19 and Job Loss

Life can change in just a few days. The Coronavirus  has changed many of our lives permanently. Life will not be the same this year as it was in the past and it will probably never be the same again. For some of us we have lost our jobs and have to start a new job search and life for most of us is uncertain.

Here are some things we can do to make our lives a bit easier.

Unemployed

Apply for unemployment. For many of us this seems impossible. If you are having difficulties keep at it. Sooner or later yo will succeed on filling out the online forms or getting someone on the phone. It has been my experience that when you do get signed up that you can get paid retroactively.

Are you in need of extra cash. Filling out surveys can help to provide some extra income. It takes a bit of work. I personally have filled out surveys for several companies and have been paid. It is not a get rich quick way of earning an income but at least it can help to put food on the table, keep you from becoming homeless and maybe put a bit of gas in the car. See the top survey sites of 2020.

Click Here to visit the Survey Police

The Four Walls

We teach that when you are short of funds it is necessary to go into storm mode and concentrate on your four walls. The four walls consist of food, shelter (including utilities), basic clothing and basic transportation. Transportation can be expensive so we recommend using public transportation if at all possible. You stop paying monthly bills on credit cards and anything that is not essential for daily living expenses.

Make Every Dollar Count
Cancel all subscriptions. These would include any monthly memberships in clubs, gyms, entertainment items including cable. Youtube.com is a great way to watch television and if you have a smart phone, smart television or tablet this will work almost as good as cable. If you have favorite programs do a search on YouTube and you may find what you normally watch but for free! One of the items some of us have are things like pet insurance. This usually has high deductibles and I have found that many items that are basic at the vet are not covered. As much as we love our pets sometimes it is time to depart from our pet when their health is keeping them from having a good life. Stop  using credit cards for any purchases. Many times we use credit for wants. Remember anytime you use credit and it is not paid off by the end of the month that you will pay interest. Interest is money that you are never able to spend on things that you want or need in the future.

Expand Your Job Search
Just because you normally work in a factory or warehouse or maybe in a more upscale job it does not mean you limit your job search to the same job or skill set. We need to look to create new skills or apply for other types of employment. Many companies are seeking temporary workers or even permanent employees to take the place of those that are unwilling to go to work because of Coronavirus. Consider delivery jobs. Consider task that you can perform in your local neighborhood. If you are going to drive in a new job be sure to check with your insurance company. Consider pet sitting or dog walking as a possibility. Go door to door in your neighborhood and meet your neighbors.

Sell Stuff
Many of us have purchased stuff over the years. Look around your garage or basement. You can likely find stuff you can sell on websites or maybe have a sale of items in your driveway. Let folks know about your driveway sale on twitter, Facebook and other social media accounts. Sell so much stuff the pets think they are next.

Investment Accounts
For some of us we have been investing for our retirement. To maintain the 4 walls that we wrote about earlier you may want to consider taking small amounts from retirement accounts for survival. We recommend that this money be used only for the 4 walls. Do not spend these funds to pay off debt or any creditors. 

Reverse Mortgages
This tool is not recommended. These come with high fees and can mean that you will not have a home to stay in if you do not meet all the requirements. You must maintain the home in good repair and you still pay all the taxes. You can live in the home until death. If you do not live in the home for 12 months the monies received in a reverse mortgage come due on the reverse mortgage. This means at that time if the reverse mortgage is not paid that a foreclosure will take place.

Social Security
If you qualify you can begin to receive social security payments. It may take some time to get started but payments will be received from the time that you apply. For full details you need to contact social security. There are many variables that need to be discussed with them that includes the possibility of suspending payments or repaying amounts received if you change your mind.

Monday, June 22, 2020

Roth IRA

Roths differ from traditional retirement accounts in how they’re taxed. A traditional 401(k) or IRA allows investors to make tax-free contributions, deferring the taxes until the money is withdrawn. Roth IRAs are the opposite in that investors pay income taxes on the money as it goes in, not when it comes out. The benefits of Roth IRAs include that you can make early withdrawals from contributions without a penalty.

Sunday, June 21, 2020

Walt Disney World

Walt Disney World Resort in Florida is back in business this summer. Just don’t book your trip expecting that the rides, restaurants, hotels, and general atmosphere will be the same as the “Most Magical Place on Earth” was before shutting down in mid-March due to the coronavirus pandemic.
Among other things, kids (and adults) shouldn’t anticipate getting hugs from Mickey or any of the princesses. Everyone who is out of diapers will have to wear a face mask, too. Here’s more of what you need to know if you’re considering a trip to Disney World anytime soon.

Monday, May 18, 2020

Life Insurance


The Easy Way To Get Life Insurance in 2020
The Easy Way To Get Life Insurance in 2020

What happens to your family if you or your wife should pass away? Do you have insurance to replace the income that comes into your home? How do you pay for day to day expenses if the husband should die. How do you pay for expenses if the wife should die? If you are depending on insurance from the workplace what happens if you lose your job or choose to change jobs. If this happens you have no life insurance. The insurance at work is a nice extra. Financial advisors say that term life insurance is the best value for your dollar. Do not let time pass. If you do you are in jeopardy of not having money to cover expenses and the longer you wait the more expensive the insurance gets. You want to provide for your family and life insurance is one of the ways you provide for financial needs if something should happen. People in the world of finances say that you should have 10 to 12 times your annual income for insurance. This should apply to both the husband and wife individually.

Life is short... so it shouldn't take long to find a life insurance policy that covers it. Don't waste time — Zander Insurance  the fastest, easiest, and most comprehensive way to search curated life insurance policy quotes from top carriers, in partnership with Zander Insurance, all from the comfort of your couch. With different levels of policy coverage depending on your needs and wallet, you could have life insurance before you finish your morning cup of coffee.


Friday, May 8, 2020

National Debt

Ask Chuck: Are We Taking On Too Much National Debt? 
Chuck Bentley
Dear Chuck, I just don’t understand how America can implement another massive bailout/stimulus without some long-term consequences. Aren’t we already carrying too much national debt? 

Read Article

Thursday, May 7, 2020

Debt Free Before Dating


Disclaimer: I am not affiliated with Dave Ramsey or Ramsey Solutions. I will be sharing short vidieos from Ramsey Personalities. I recommend you go directly to you tube to learn more about how to handle your finances.

Thursday, April 30, 2020



Every parent wants the best for their child.
That’s why they send them to college! But most parents struggle to pay for school and end up turning to student loans. That’s why the majority of graduates walk away with $35,000 in student loan debt and no clue what that debt will really cost them.

Student loan debt doesn’t open doors for young adults—it closes them. They postpone getting married and starting a family. That debt even takes away their freedom to pursue their dreams. But there is a different way. Going to college without student loans is possible!

In Debt-Free Degree, Anthony ONeal teaches parents how to get their child through school without debt, even if they haven’t saved for it. He also shows parents:
  • How to prepare their child for college
  • Which classes to take in high school
  • How and when to take the ACT and SAT
  • The right way to do college visits
  • How to choose a major

A college education is supposed to prepare a graduate for their future, not rob them of their paycheck and freedom for decades. Debt-Free Degree shows parents how to pay cash for college and set their child up to succeed for life.


Tuesday, January 7, 2020

SMART INSIGHTS FROM PROFESSIONAL ADVISERS

SMART INSIGHTS FROM PROFESSIONAL ADVISERS
A Widow's Broker Made a Huge Mistake
Karen, a recent widow, reached out to me for help with getting financially organized after her husband passed away. Her husband had a broker, but Karen didn't really know him. So she hired me, and together we got to work on her Survivor's Financial Plan, a tool I use to review the financial, retirement, estate, investment and insurances of a new widow. 
The Cost Basis Never Stepped Up 
As I got to reviewing her investment statements, I immediately noticed something was wrong: The cost basis of the stocks in the joint account were never stepped up to her husband's date of death. The way the tax code works, if a spouse passes, the deceased's share in the cost basis in those shares is stepped up to the value on the date of death. This is important because when you go to sell a stock, the difference between the fair market value and the cost basis (the gain) is the income tax due. This could be extremely costly. If she went to sell the stocks, she would have owed a substantial amount of money in income taxes, since she had a substantial gain due to the low cost basis in the stocks. 
Here's how it works. Karen and her husband, John, have a joint investment account holding several individual stocks. They bought the stocks several years ago, and the majority of them have appreciated over time. One stock, a tech firm they bought for $25 per share in 2003, is now worth $180 per share. So, their $5,000 investment ballooned to $36,000. Since they held the stock for more than one year, if they sold, they would owe long-term capital gains tax on $31,000, which is the difference between the $36,000 market value and the $5,000 cost-basis (what they paid). Karen and John are in the 15% capital gains bracket, meaning they owe 15% of the $31,000 gain - or $4,650 - if they sold the stock prior to John's passing. 
With John's passing, his share of the stock's cost-basis should have "stepped-up" on the date of his death. This means instead of the cost basis being $5,000, half of the cost-basis should have been increased to $18,000 (half of the $36,000, John's share in the stock on the date of his death). Karen's share of the cost-basis remains $2,500 - half of the original $5,000. 
The difference is huge. If Karen went to sell the stock without a step-up in basis, she'd owe $4,650 in taxes. However, with the step-up in basis, she'd owe only half that amount, or $2,325. Repeat this scenario by all the other stocks in their joint account, and you can see the tax-cost would have been significant if she didn't receive a step-up in basis. 
We went back to the brokerage firm to correct the problem. But why did this happen? 
Having a Joint Account, But Different Last Names Was the Ultimate Culprit 
At the majority of investment brokerage firms, the cost basis is automatically stepped-up on the date of death. However, this is not always the case when the deceased and the surviving spouse have different last names, as was the case with my client. She and her husband were married, but she kept her last name. In that case, the brokerage firm didn't automatically step up the basis, but rather needed further instruction from the deceased husband's broker - something the broker must have overlooked. 
Luckily, we caught the error in time. The brokerage firm acknowledged the mistake. Since they already had the death certificate on file, which showed the date of death, no new forms were needed. The investment company went back and corrected it, so half of the cost basis in each stock was stepped-up to the date of John's death. Keep in mind it is not always "half" of the value of the position that gets stepped up. If John owned 100% of the stock in an account in his name, the entire basis steps up on his death. 
It's often the little things that add up to big things in the world of financial planning and investing. Here, the broker's oversight, if left undetected, could have cost Karen a pretty penny in unnecessary income taxes. The key takeaway here is to always double check that the cost basis is stepped up in the appropriate accounts. 
For more financial planning insights for Widows and Widowers, please visit my website at www.survivorplanning.com
Comments are suppressed in compliance with industry guidelines. Click here to learn more and read more articles from the author.

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.
From Kiplinger magazine January 2020

Tuesday, December 31, 2019

No Spend Weekend

Looking for something to do on the weekend or a day off from work that will not break the bank. Here are 45 ideas for something to do.


  1. Visit a park
  2. Go sightseeing locally
  3. Play a board game
  4. Visit the local library 
  5. Try a new recipe
  6. Draw something
  7. Camp in the living room/backyard 
  8. Watch a movie
  9. Learn a new skill
  10. Budget
  11. Make a time capsule
  12. Look at old photos
  13. Go Geocaching
  14. Make paper airplanes
  15. Sort old clothes
  16. Volunteer
  17. Have a yard sale
  18. Write a journal
  19. Exercise
  20. Swap movies or books with a friend
  21. Do a DIY project
  22. Make frozen meals
  23. Have a Spa day
  24. Clean your car
  25. Attend a local event
  26. Have a yard sale
  27. Do a random act of kindness
  28. Have a sleepover
  29. Go Hiking
  30. Skype a friend
  31. Make cookies
  32. Go jogging
  33. Read a book
  34. Have a scavenger hunt
  35. Go swimming
  36. Try a free trial
  37. Donate something
  38. DIY Coffee
  39. Walk the dog or a neighbors dog
  40. Visit the beach
  41. Go window shopping
  42. Play a trivia game
  43. Build a fire
  44. Organize cabinets/drawers
  45. Paint
  46. Go for a walk
  47. Take a nap

Thursday, December 26, 2019

Smart Goals

This is your year! When it comes to setting smart goals, most of us have the best intentions. You’re finally going to take control of your money. Get fit. Start a new hobby. Yada yada.
But here’s the thing. Most of us won’t actually do any of that. Setting goals for yourself is absolutely the right thing to do, but just having good intentions alone changes nothing. You can make resolutions all you want—but a resolution without a plan is just wishful thinking. So, how can you stick with your goals throughout the year? 
Make SMART goals.

Click Here for the Smart Goals

Wednesday, December 25, 2019

The ABC's of Financial Peace

The ABC's of Financial Peace
A = Accept (the debt sucks, it's time to change)
B= Budget (my new favorite word)
C= Calculator (it's the only accessory you need in 2020, it should be stuck on you like that Clapper life line thing)
D= Debt. The enemy. Know your debt well and annihilate it
E = Ego. Get over it. You aren't your neighbor or sister or the Jones's next door. Focus on you
F= Failure. Is. Not. An. Option.
G= Greed. Enough said. Don't fall for it.
H= Handle it. If you are waking up in a cold sweat in the middle of the night, start reading up on what to do to handle your debt, make a plan, acknowledge it and handle it.
I = income. You need more. Get the side gig, take the overtime, make your kids pay for their own phones.
J= Justify. if you feel you have to justify the purchase out loud...you can't afford it.
K= Kindness. You can't afford to buy wrapping paper for the school soccer team or candles for homeless snails. If you want to be kind, make that big donation when you get to B7. Don't forget them.
L= Lazy. Your budget and finances are a full time job. Commit to it every day. Don't be lazy.
M= Money Management. It's the new algebra or Latin. Learn it. Practice it. Stop being afraid of it.
N= No-one. No one else is in your shoes but you. Nevermind everyone else. Stick to you and your path.
O= Overbudget. A thing of the past.
P= Plan, plan, plan.
Q= Questions, ask. ask. ask.
R= Rigor. Set goals, make a plan, pursue it rigorously. Let nothing stop you. Nothing.
S= Save. the returnable bottles, the change on the floor of the car, the random dollar in the wash, the extra from your little bonus...save, save, save.
T= Trust. Trust you, trust the steps, trust that you can do this. Especially on the days you think you absolutely cannot.
U= Unavoidable. There are going to be unavoidable obstacles. Prepare. Be ready.
V= Victory. That debt free scream. That is you. You will get there.
W= Why. Because you are tired of being broke. Period.
X= the mark of crossing off a paid-down debt
Y= YOU ARE WORTH IT
Z= Zero debt. Zero debt.
Go get it this year. xo

Credit for this post goes to Maria Huntress on the Dave Ramsey Financial Peace for the 40 and Over Crowd group on Facebook

Tuesday, November 26, 2019

Reading List

Reading List

Many well known folks read biographies, books on leadership. All of us are leaders, some better than others. One should be seeking wisdom all the days of their life. The best way to become wise is to read books that lead to wisdom. We recommend books here in our reading list. Most of them we have obtained from our local library or from libraries through out the state of California. If you are unable to obtain one of the books from the library then we recommend that you purchase the books from anywhere books are sold or from the links that we list below. Each of these books will help you to gain insights to your dreams. Dreams lead to goals. Goals lead to success in life.

You can read a portion or listen to a portion of each book online by clicking on the name of each book. Enjoy!

The Principle of the Path: When you choose a path there is a specific destination

Total Money Make Over: Get Out of Debt and Start Building Wealth

The Financial Peace Planner -  Step by step guide to restoring your familie's financial health.
 
One Question: Life-Changing Answers from Today's Leading voices
 
The Proximity Principle: The proven strategy that will lead to the career you love.




Sunday, October 13, 2019

Not where you want to be? Wondering how to get there?




Click Here to Purchase Book

Why is it that smart people with admirable life goals often end up far from where they intended to be? Why is it that so many people start out with a clear mental picture of where they want to be relationally, financially, and professionally and yet years later
find themselves far from their desired destination? Why do our expectations about our own future often go unmet? 

What if you knew the answer to those questions? What if there was one simple idea that explained why so many people get lost along the way?

There is. It’s called the principle of the path. And not only does it explain the disappointment and regret that characterize the lives of so many, it provides a way for you to be the exception.

As you are about to discover, the principle of the path is at work in your life every single day. Once embraced, this compelling principle will empower you to identify and follow the path that leads to your desired destination. And this same principle will enable you to avoid life-wasting detours along the way.

“If you’re ready to break the bad habits, bad behaviors, and bad decisions that have been leading you into trouble, you need Andy Stanley’s The Principle of the Path.”
–Dave Ramsey, host of The Dave Ramsey Show
and best-selling author of The Total Money Makeover

Click Here to Purchase Book

Tuesday, October 1, 2019

Debt-Free Degree: The Step-by-Step Guide to Getting Your Kid Through College Without Student Loans



Every parent wants the best for their child.
That’s why they send them to college! But most parents struggle to pay for school and end up turning to student loans. That’s why the majority of graduates walk away with $35,000 in student loan debt and no clue what that debt will really cost them.

Student loan debt doesn’t open doors for young adults—it closes them. They postpone getting married and starting a family. That debt even takes away their freedom to pursue their dreams. But there is a different way. Going to college without student loans is possible!

In Debt-Free Degree, Anthony ONeal teaches parents how to get their child through school without debt, even if they haven’t saved for it. He also shows parents:
  • How to prepare their child for college
  • Which classes to take in high school
  • How and when to take the ACT and SAT
  • The right way to do college visits
  • How to choose a major

A college education is supposed to prepare a graduate for their future, not rob them of their paycheck and freedom for decades. Debt-Free Degree shows parents how to pay cash for college and set their child up to succeed for life.


Monday, August 19, 2019

College for Free or Low Cost

You can go to college for free or for a very low cost without going into debt. The number 1 rule is to never take out a loan for higher education. Again never take out a loan.


The first step to pay for college is to take college prep courses and to keep a high GPA. This will make it easier to get scholarships and grants. 

Step 2. Investigate the kind of work you want to do after college. Maybe you do not know so look at majors that will provide incomes that will usually get you in the high 5 figures and above.

Step 3. Start looking for scholarship choices, employers that will pay for you go to school and possibly look at letting the military pay for your college education.

Step 4. Consider cash-flowing college by working while going to school. Working during college is a better choice than having a fun social life in college. By working you will not go into debt for college. Right now folks that took out loans for college are wishing they had not taken out the loans.

If you have suggestions on how to avoid them going into debt for college please leave your comments.

Bankruptcy and Credit Repair

Bankruptcy can cost you from $500 on up depending on the state you live in and the cost of the particular attorney that will handle your case. In bankruptcy you may have to give up cars are real property along with other assets you have. Some debts may not be discharged including student debt and medical bills. Also it will remain on your record for 7 to 10 years. This can seriously affect the ability to do some of the things that you want to do in life. It can also affect the ability to get certain jobs in certain states.

Credit repair can cost you an average of $100 dollars or more per month and it will not really fix your credit. You will also have to continue to pay your debts. If a debt is not in collections you may or may not be able to settle the debt for less than it's face value.

In rare cases where you have medical debt you may be able to settle for a lesser amount. It will take a lot of negotiation.

At AllThingsWiseandWealthy we chage $39.00 for each 3 months. We teach you how to budget and to start your snowball system to pay off debt. Getting out of debt is 80% decision and 20% actually following our plan. Our plan has work for many thousands. It can start working for you today.

Sunday, August 18, 2019

Business in America should pay more taxes

Many politicians and citizens believe that businesses in the United States should be paying more taxes. Where does the money come from to pay those taxes? Do you know? The fact is that if a company has to pay more taxes then the increased taxes are raised by raising the price on consumer goods. This means that when you purchase these products that your dollar does not purchase as much in products and services.

Sunday, July 21, 2019

Pet Insturance

Dogs & Cats Are Family Members. Should You Protect Them with Pet Health Insurance? Pets are family. You protect them like they're your own (furry) children; feeding, bathing, and even clothing them. When your four-legged friend is hurt or sick, you worry about their wellbeing and, unfortunately, whether or not you can afford the bill. Sticker shock is all too real for those faced with a triple- or even quadruple-digit debt to their veterinarian. Boston terrier Bandit racked up quite the bill when he gulped down a pacifier, requiring emergency surgery. Typically, the procedure would cost Bandit’s parents over $1,000; instead, Healthy Paws Pet Insurance reimbursed his pet parent, Karey Lynn Jones, $999. "I would rather lose my house than put my dog to sleep over something like this," says Jones. "But I understand how some families or owners may have to make a tough decision like that." Pet medical care is becoming more expensive due to advances in veterinary technology. As a result, more people are choosing to protect themselves from unexpected veterinary bills with a quality pet health insurance plan. A little research on PetInsuranceReview.com yields Healthy Paws Pet Insurance as the favorite in the category. It's the #1 customer-rated pet insurance plan due to their commitment to customer service and support, as well as access to the best pet insurance coverage available.
Click Here for a free instant quote

Saturday, July 20, 2019

New Cars

Ready to buy that new car? No! No! If you buy that new car and do not pay cash you will be in debt. Are you ready to work for someone else for 3-7 years to pay off that car. Not me! That new car will lose value the moment you drive it off the lot. In addition if you choose to listen to the sales person and lease that car you will only have it for 3 years and you will pay very high interest.

The better solution is to purchase a used car that is 3 to 5 years old and pay cash. Don't have the cash, then you need to save for it. Another solution to pay cash is to purchase a much older used car. As an example my wife and I purchased a 2004 BMW 305i for my son. We paid $4,900 for it. It is excellent condition and when we bought it we were given all of the service records for it including repairs that were made to it. Not only that the owner had the window sticker showing all of the equipment and the original price for the car.

When purchasing that used car be sure to have a mechanic check it out for you. If  the seller will not let you take the car to your mechanic see if your mechanic will go to the sellers location with you to check out the car.

I have a Toyota Camry that is 17 years old that still runs great. I did buy it new before I understood what happens when you buy a new car on time. I would like a newer car but I am choosing to repair the mechanical problems the car and continue to drive it. A car is transportation, nothing more. As long as one can put up with doing repairs the very best deal for a car is to keep the one you have until it just is super undependable. My thought are keep repairing it until you get to a threshold where the repairs each month equal about $250 a month average.

Another tip: anything you have with wheels should not be worth more than 50% of your annual household income.

Thursday, June 27, 2019

7 retirement-planning mistakes

7 retirement-planning mistakes you need to avoid

  • Many people erroneously believe they must stop working, while others wait too long to start saving for post-career years.
  • Other mistakes include not considering non-financial factors, failing to consult a spouse and forgetting about an estate plan.


Without initiative or proper guidance, many of us never learn about fundamental retirement-planning steps until we've already made a mistake. Here's a list of the top seven mistakes that hurt your chances to achieve financial security in retirement.
1. Assuming we should plan to retire
Rocking chairs, sunsets, golf and a sailboat. If you watch enough financial-planning ads on TV, you'll notice a consistent theme: Your financial plan should reflect the singular goal of retiring at a specific age and sailing off into the sunset without a care in the world. Of course, there's nothing wrong with looking forward to no longer working, but we tend to get so wrapped up in the Utopian promise of retirement, we forget to decide if full retirement will truly make us happy.
The fix: Don't let outside influences decide your future. Think about what you truly want for you and your family. Work can often be one of the most rewarding aspects of life. If that's the case for you, consider how you might continue to work in your later years. It could mean transitioning to a different role, cutting back hours or trying something totally new.
2. Waiting to plan for retirement
No matter how much of it we have, money often causes anxiety at every stage of our lives. In fact, finances have ranked as the top stressor among Americans, according to the American Psychological Association, since the survey began in 2007.
So, naturally, we're all working to fix the most common and often most significant issue in our lives, right? Wrong. In 2015 just 38 percent of investors reported having a plan to reach investment management and retirement goals, according to a Gallup survey.
More from Advice and the Advisor:
How to avoid costly 401(k) rollover mistakes
7 ways to make sure you don't outlive your savings Starting a new job? Don't forget your 401(k) at your old one
The fix: Stop procrastinating and start planning. The burden of financial stress is far worse than the upfront challenge of putting a plan in place. To start, write down your current financial needs and future goals. Most important, seek help. Professional advisors can see the hidden gaps in your planning that might hurt your financial future.
3. Bad assumptions
A retirement plan often consists of cash-flow projections to determine the likelihood of success for future goals. These projections must make certain assumptions that can hugely affect the outcome. Therefore, unrealistic expectations regarding certain factors could skew the result, meaning retirees could face a far different reality than what the math suggests.
The fix: Be conservative. Don't forget that, thanks to inflation, things will cost a lot more money in the future. Don't assume that invested assets will grow at 10 percent every year. Finally, reconsider the length of retirement. As medicine and technology improve exponentially, retirees will live much longer than ever before.
4. Only looking at the numbers
We all want to make sure we have enough money for our nonworking years. As a result, financial planning tends to focus on the math. We crunch the numbers each year to make sure we have enough to last a lifetime. Unfortunately, staring at spreadsheets often means we forget to plan for living happy, purposeful lives. We may succeed in saving enough but still fail to actually enjoy the years we've spent so long preparing to live.
The fix: Define what a truly successful retirement looks like beyond the dollar amount you'll need to pay the bills. Consider how you'll make the transition, how you'll spend your time and what you want to accomplish. Having a plan means you won't wander aimlessly. You need to find fulfillment emotionally and intellectually.
5. Not communicating with your spouse
In a marriage through your working years, you and your spouse likely have grown accustomed to each other's daily patterns. For years your routine has reflected the fact that work consumed much of your time. Spouses planning for retirement often forget to discuss the effects of no longer working on marriage and day-to-day life. I know when I'm standing in the kitchen in the morning later than usual, my wife is sure to ask me when I'll be heading to work.
"Make sure to plan to enjoy life even before retirement. With the right plan, you'll be on your way toward perfectly aligning life and wealth."
The fix: Well before you plan to stop working, have many conversations with your spouse about how each of you envisions retirement. Find common ground to set specific mutual goals, like how often you want to travel. Most important, remember to compromise. If you avoid these honest conversations, you'll find out too late that your spouse didn't have the same vision of the future.
6. Overlooking legacy planning
While many people take the right steps to prepare for a successful retirement, some families forget to address important estate-planning considerations. Although you may have plenty of money to live on, how will money left over transition to your children? Without a plan, your estate could take a hit from Uncle Sam, and your children may be unprepared to deal with the influx of cash.
The fix: Establish an estate plan. At a minimum, make sure you have an up-to-date will that can carry out your wishes. Other planning tools, like trusts and life insurance, can ensure your money makes its way to the kids exactly as you'd like. Finally, educate your children not only about how they might receive money in the future but about how you expect them to properly manage the assets.

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Wednesday, June 26, 2019

No Credit / Use cash

Do you use credit? If so did you know that you are making the company that offers you credit is getting rich while you are getting poor. Yes, POOR! Why, because you are paying interest! When you are using credit your FICO or credit rating tells you how well you handle debt. This score if it is high enough helps you to get more credit. The more credit you have and use the less you have to spend on the things you want. By far the best method of spending money is to wait and save for the items you want and pay cash.

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