Minding Your Money 360 - Quick tips to manage your money for success

Happy Valentine’s Day – the day of love and money. Speaking of love and money, if you and your honey don’t see eye to eye when it comes to money…that could mean trouble ahead. After all, money is the #1 cause of divorce. So before you get to that point take some time to try to get on the same page at least about some of the basics. I have a love and money game where you ask each other money questions in a fun, non-threatening, non-combative way but it can give you a real glimpse into the way that your partner thinks about money.

The questions include things like:

If $10,000 came to me unexpectedly, I would:

Invest it

Buy a new car

Take a vacation

Pay off debts

Throw the biggest party ever

As a twist, you can switch roles and answer the questions the way you think your partner would – this will give you an idea of how well you know him or her.

Want a copy of my money questions for couples? Email me at [email protected], put ‘Love’ in the subject line and I’ll rush you a copy. However, even though it’s a fun game, it might best be played on another night.

And, that’s the minute for today. Thanks for listening and as always remember that minding your money really is the path to a richer life!

Now here’s my Monday question for you to ponder. Have you ever stopped to consider that the excuses you make on a daily basis could actually be keeping you poor? I looked into some of the things that we often tell ourselves and that can affect your pocketbook and your bottom line. Here are three excuses that might be doing just that:

Excuse #1: I don’t make enough money to save. If you think that you can’t save until you can save a set amount – stop that kind of thinking immediately. In the beginning, it’s really not so much about how much you save as it is about forming the saving habit. So save whatever you can…$10 a week, $50 a month. Just get started. And if you don’t have an emergency fund start there.

Excuse #2: I’ll start later. Life is too short to worry about saving now. Well, fortunately, life can be full of surprises and it may not be as short as you think. Life expectancies are on the rise and compounding interest waits for no-man. In other words, the sooner you start the less money you have to save to reach your goals because of compounding.

Excuse #3: I’ve got too much debt. Debt can put a damper on saving but it doesn’t have to be permanent. If you haven’t already done so, create a plan to get out of debt and follow it. Then once you’re out of debt, create a plan to achieve your goals and put some of the extra cash to work for your future. Or if your debt does not take everything you make, see if it makes sense to set aside some money in savings as you pay off your debt. Stranger things have happened.

And that’s the minute for today. You know I love helping people with all aspects of their financial lives. If you have a question, send it to me at [email protected]

Thanks for listening and as always remember that minding your money really is the path to a richer life!

It’s Friday and time for our word of the week –the word this week is Kids and Money.

I chose kids and money because I attended a financial literacy meeting yesterday and it was all about kids and money. They had a dynamite panel headed by Beth Kobliner, a personal finance journalist and the author of Make Your Kid a Money Genius Even if You’re Not. It’s a really good book. Did you know that you can start talking to your kids about money as early as age 3?

One of the really big things that came out of the discussion were the number of resources available to schools to teach kids of all ages about money. So schools are finally going to get into the money mix. In fact, I learned that in Georgia it’s a state requirement to have at least one credit in finance to graduate from high school – it’s not much but it is a start. One fantastic resource that is available nationwide is through the Federal Reserve Bank. Check out their website at www.federalreserveeducation.org.

Our word of the week – kids and money. Despite everything I have said about the resources available to teach kids about money, never forget that the buck really stops with you because your kids are watching what you do every day. If you are interested in learning more about what to teach your kids about money, send me an email at [email protected] and put ‘kids’ in the subject line. If there is enough interest, I will set up a webinar to go over some of the basics for kids at different ages.

And that’s the minute for today.

Thanks for listening and as always remember that minding your money really is the path to a richer life!

Tax season is upon us and I'm getting a lot of questions. a common question I get is, "is it better to take the standard deduction or collect all of my records and receipts and itemize my deductions? The answer is... it depends. If you are single the standard deduction is $6,300 and if you are married filing jointly the standard deduction is $12,600. The deciding factor about whether or not you should take the standard deduction or itemize is whether or not your itemized deductions are greater than the standard deduction. In most cases, if you own a home or had lots of medical bill, taxes, etc. your deductions may be greater than the standard deduction. However, for many people the standard deduction will be greater.

If you are preparing your taxes yourself or if you're working with a tax preparer and it looks close, figure your taxes both ways. The key is to take the one that is most advantageous to you. Also, don't forget that if you do itemize, keep all of your receipts just in case a you are audited.

And, that’s the minute for today. Don’t forget to go over to www.mymbooks.com and grab a copy of my new book – the Beginner’s Guide to Minding Your Money. It’s filled with great tips and strategies to take control of your money to reach your goals.

Thanks for listening and as always remember that minding your money really is the path to a richer life!

Among all of the tax questions I’m receiving, I got a really interesting question. Sharon asks, “Should I take my Social Security benefit at age 62 or should I wait?” That’s a really good question but the answer will depend on your specific situation. There is no doubt that if you wait longer your benefit will grow but for some people that might not be the best option.

Some time ago, I did an estimate for a client about whether or not she should take the benefit early or wait and I believe that the estimate showed that it would take about 13 years to for it to have been more beneficial for her to wait and get a larger benefit. In her case, she didn’t need the extra money so she decided take the benefit early and just have fun with the money. And, oddly enough that is one reason to take the benefit early. A couple of other reasons to take your benefit early include because you do need the money. If you lose your job or are underemployed, Social Security can help bridge the gap. And, if you have a short life expectancy due to ill health you can consider taking your benefits early.

The one caveat is that if you have a spouse that is dependent on your income, if you take the benefits early, that may also mean less benefits for them. So consider all sides of the question before you make a decision. Hopes this helps Sharon!

And, that’s the minute for today.

Thanks for listening and as always remember that minding your money really is the path to a richer life!

Yesterday, I talked about the rollback of some of the regulations that would have required financial advisors to put your interests ahead of their own in the investment options they offer and in being more transparent with fees. Since those regulations and protections will not be coming into play, it’s going to be up to you to protect yourself – so educating yourself and asking questions is going to be more important than ever.

As far as education goes, there are tons of places on and offline where you can go including our website and sign up for our newsletter so you can get notices about upcoming classes we offer. And when it comes to questions, here are two basic questions to ask and as you ask these questions it’s probably not a bad idea to get them in writing:

“Are you a fiduciary?” If they say, yes – they’re required by law to watch out for your best interests, much like doctors and lawyers. That means they can’t recommend something for you just because they will make more money if they do. But if they say, no – then all bets are off.

“What are my fees?” Don’t just ask, also keep a close eye on how much you’re paying. This means reading your statements to look at fees and the impact on your return. Fees add up and they can eat a big hole in your investments. And, I know this goes without saying, “Never buy anything you don’t fully understand and if something seems too good to be true, it probably is.”

This rollback of regulations gives more power to financial institutions, but you don’t have to let them take over yours. In other words, it’s your money and you have the power – ask questions so you can make informed decisions.

And, that’s the minute for today. Don’t forget to go to my website at www.psworth.com and sign up for our newsletter so you can get tips and tools delivered to your inbox as well as info about our upcoming financial education classes.

Thanks for listening and as always remember that minding your money really is the path to a richer life!

It's Monday and I have a question, “Is your money working for you?”

So lots of things are going on with the new administration and your investments could really be in harm’s way. So let’s talk about what’s going on and how you can protect your investments and specifically your 401(k).

First, there is a roll back of some of the new Wall Street regulations put in place following the financial crisis, including the “fiduciary” rule that would’ve increased the compliance regulations for financial advisers – that would have required them to put your interests ahead of their own. The reason why this is important is because brokers often get incentives to steer clients into certain financial products, which can charge very high fees. President Barack Obama’s White House had estimated that these conflicts of interest were costing American investors $17 billion a year. The Department of Labor’s fiduciary rule was scheduled to go into effect in April.

This rollback is seen as a great thing for financial markets and as a result, stocks surged on the news. So if it’s good news for brokers and financial institutions, guess who it’s not good news for? If you said average Americans and small businesses – you guessed right. The people who are most vulnerable in this case are unsophisticated investors – people who simply put money in their 401(k) without really thinking about things like fees and small business owners who are so strapped for time that they don’t take the time to investigate their options. So how do you protect your investments from being eaten away by exorbitant fees or investments that simply don’t work for you? You can start by asking questions and that’s where we’ll start tomorrow.

And that’s the minute for today. You know I love helping people with all aspects of their financial lives. If you have a question, send it to me at [email protected]

Thanks for listening and as always remember that minding your money really is the path to a richer life!

It’s Friday and time for our word of the week –the word this week is Taxes.

I chose taxes because they are inevitable and tax season has officially kicked off. So here are three important things you need to know to file your taxes and maintain your sanity.

Get your stuff together early. This not only includes your W2’s or other tax documents that come in but receipts from large purchases such as a car or a house and also receipts from church or charitable contributions.

Before you start, whether you complete the forms yourself or you go to a tax professional, review your returns from the last two years so you can see what deductions and credits you had. This will help jog your memory so you don’t miss them this time around.

Finally, if you divorced or separated and you have children, be sure you agree on which parent will claim the children – the IRS just doesn’t like it if you both try to claim the same children as dependents.

Our word of the week – taxes. Taxes aren’t due until April 18th  -- you get three extra days so use them wisely.

And that’s the minute for today. Got a burning question? Send it to me at [email protected].

Thanks for listening and as always remember that minding your money really is the path to a richer life!

Is the American dream still alive? According to the 2016 Northwestern Mutual Planning and Progress study two thirds or 66 percent of Americans believe it is not only alive but that they can achieve. However, that dream may have shifted or changed slightly.

So what’s the American dream? The top two answers in the study were:

“Having a happy family life” (59%); and

“Being financially secure” (58%)

Despite the high ranking for being financially secure, the study found that many people do not feel financially secure in the present. In fact:

Nearly a third of US adults (29%) said they do not feel financially secure;

And, about one in ten (12%) “do not plan at all” and “have not set any financial goals”

And, I believe this because this is what people tell me every day. Many are so caught up in just living that they don’t stop to think about setting goals or making a plan to create a better life. If you fall into this last category – no plan and no financial goals – it’s time to get going or nothing will ever change. Start by setting some financial goals then create a plan to get there. If you need help with this…call me, email me, or visit website at www.psworth.com – I’ve got lots of tools and information you can use or click on the contact us button and leave me a message and I’ll contact you. This is too important to leave to chance.

Don’t let 2017 come and go and leave you in the same predicament of not feeling financially secure. And, that’s the minute for today.

Thanks for listening and as always remember that minding your money really is the path to a richer life!

Actively participating in investing is good, right? So what’s passive investing? That a question I received from a listener this week. Admittedly, the name is a little confusing. So, here’s the answer. Passive investing is investing in vehicles like index funds. When you buy an index fund, you buy a whole market or whatever the index consists of.

For example, if you buy an S&P 500 index fund like ones offered by Vanguard or Fidelity, instead of having to buy each individual stock in the S& P 500 you get them all in a neat package or fund. The fund itself just follows what’s in the S&P 500 so it is passively managed versus being actively managed where a manager would watch over it and make buying and selling decisions based on what happens in the market to try to get the best return possible. Your return is based on, in this case, the S&P 500 return and you get an extra benefit because it is passively managed and that’s lower fees – some as low as 0.03% each year or 30 cents for every $1,000 invested so you get to keep more of what you make. By comparison, according to an article on Kiplinger, the average actively managed, diversified domestic stock fund charges 1.20% per year or $12 per $1,000 invested. That’s a big difference. So passive investing can be a very good thing.

And, that’s the minute for today. Don’t forget to go over to www.mymbooks.com and grab a copy of my new book – the Beginner’s Guide to Minding Your Money. It’s filled with great tips and strategies to take control of your money to reach your goals and even dig your way out of debt.

Thanks for listening and as always remember that minding your money really is the path to a richer life!