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

How does your cash flow?

It's Monday and I have a question. Is your money really working for you?

Today on the Minute – How does your cash flow?

It's Monday and I have a question. Is your money really working for you?

Today on the Minute – How does your cash flow?

If you’re like many of the people I talk to there is no problem with cash flow – it flows in and then it flows out just as fast. And, they tell me that they have not started their journey to financial freedom because there never seems to be anything left at the end of the month to save. And, if that is truly the case, then their journey won’t be successful because it will never happen. But does it have to be that way? Do we have to wait to the end of the month to save what’s left? Is it possible to approach this whole process from another angle? I don’t know like scooping off some for yourself – for your journey to financial freedom at the beginning of the month when you do have the money.

You see there are so many people who live a breakeven existence. That is, they have just enough income to meet their expenses. They’re the ones who wait for the raise because they know that when that happens, they will finally have money to save and then it happens – their expenses grow to match their new income and still there is nothing to save. So, I have a theory that if you find yourself in this type of situation, that if you scoop something off the top – if you pay yourself first – that your expenses will magically shrink to match what’s left over. What do you think?

Pay yourself first – now there’s a concept.

And, that’s the minute for today. 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!

Word of the Week: Money Coach

It’s Friday and time for the Word of the Week! Our word this week is Money Coach.

But first, I want to invite you to my new series of webinars designed specifically to grow you money skills. It’s a monthly series on the first Friday of each month so the first one is slated for October 7th.

It’s Friday and time for the Word of the Week! Our word this week is Money Coach.

But first, I want to invite you to my new series of webinars designed specifically to grow you money skills. It’s a monthly series on the first Friday of each month so the first one is slated for October 7th. If you would like an invitation, go the mindingyourmoneyminute.com website and sign up for the webinar series.

Now back to our word of the week – money coach. I think that everyone can relate to a football coach or a golf coach but when I tell someone that I’m a money coach they sometimes have a hard time with the concept. And, I think that part of the reason many people have such a hard time is because they feel that managing their money is something that they should be able to do on their own and that having a coach signifies that there must be something wrong with them. But quite the opposite is true.

Serena Williams, inarguably one of the greatest tennis players of all times has a coach. Not because she doesn’t know how to play tennis but because she wants to stay on top of her game and that’s what a coach can do – help you stay on top of your game. Life is complicated today and it’s hectic so it’s easy for things to slip through the cracks. I have been in this business for over 20 years and I’ve seen and learned a lot about helping people up their game when it comes to managing their money. But my services aren’t for everyone. I like to work with people who truly want to take charge and take control of their money and are willing to put the work in to make it happen. Serena isn’t a slacker and I expect no less from my clients.

Our word of the week: money coach – Money coaches empower their clients to live the life they want by helping them transform their relationship with money and find their own inner financial guru.

And, that’s the minute for today. Tune in next week as I answer Barbara questions about retirement. 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!

Insurance to protect your assets in retirement

Today on the Minute – Insurance to Protect Your Assets in Retirement

Today, I continue to answer Barbara S. retirement questions. Don’t forget you can get more detailed or private answers to your questions by going to the website and clicking on the Private Consult button...

Today on the Minute – Insurance to Protect Your Assets in Retirement

Today, I continue to answer Barbara S. retirement questions. Don’t forget you can get more detailed or private answers to your questions by going to the website and clicking on the Private Consult button to sign up for a private call with me. I have a special rate for September so there has never been a better time to call to get answers to your questions.

Barbara writes:

Is there any insurance vehicle that could help protect us if my husband or myself gets sick and has to go into a care center after retirement? I don't like the idea of an annuity or assisted living "insurance" but it may come to that. How do I know at what point to consider these options?

One of the best types of insurance for retirees is long-term care insurance. But it’s not real cheap rates are constantly on the rise. Like most insurances, the earlier you buy it, the cheaper your rate. To get your lowest rates, start looking between the ages of 52 and 64. Long-term care insurance is the equivalent of disability insurance when you are working. It comes in lots of different flavors and you can get all kinds of bells and whistles but they can add greatly to the cost so choose wisely.

Some other options available include:

Short-term insurance which usually caps out at one-year versus long-term care which can last your lifetime

Life/long-term care insurance which is a hybrid type of insurance that comes with a fixed rate so you always know what it will cost you

Long-term care annuities – these require large upfront payments but if you need long-term care these may be less costly than the premiums. However, don’t expect much in the form of interest on these annuities.

Health savings account – a high deductible health savings plan that offers you a way to put money aside tax-free for medical costs, such as long-term care. And, you can even pay your premiums from a HSA.

And, there are other options to consider based on your situation. However, the best time to create a plan and put things in motion is before you need it. Thanks for the questions Barbara. I hope this helps.

And, that’s the minute for today. 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!

How is Social Security taxed?

What paperwork do I need to keep for IRA contributions?

Today on the Minute - How Is Social Security and Active Income Taxed?

Today, I continue to answer Barbara S. retirement questions. Don’t forget you can get more detailed or private answers to your questions by going to the website and clicking on the Private Consult button...

Today on the Minute - How Is Social Security and Active Income Taxed?

Today, I continue to answer Barbara S. retirement questions. Don’t forget you can get more detailed or private answers to your questions by going to the website and clicking on the Private Consult button to sign up for a private call with me. I have a special rate for September so there has never been a better time to call to get answers to your questions.

Barbara writes:

I think I can still work and collect Social Security without the SS being taxed after age 70. Although my preference is to not work full

time, I may want to do some work just to keep active. Do the distributions and active income all get taxed the same?

Income is the same and it will be taxed the same as always based on your tax bracket. However, whether or not your Social Security benefits are taxed depends on your filing status and how much income you earn including interest and dividends. For example,

If you file a federal tax return as an "individual" and your combined income is

between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits you receive.

more than $34,000, up to 85 percent of your benefits may be taxable.

If you file a joint return, and you and your spouse have a combined income that is

between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits you receive.

more than $44,000, up to 85 percent of your benefits may be taxable.

And, there could also be state taxes as well. About 13 states including Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont, and West Virginia tax Social Security benefits.

And, here’s a tip Roth IRA distributions don’t count towards your combined income so you can get more money with a lower tax bill – see I told you they were the best thing since sliced bread.

And, that’s the minute for today. 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!

Today on the minute – What Paperwork Do I Need to Keep Regarding Traditional and Roth IRAs?

Today, I continue to answer Barbara S. retirement questions. As you know because of time restrictions I can’t go into a lot of detail on the air but if you would like more detailed or private answers you can always...

Today on the minute – What Paperwork Do I Need to Keep Regarding Traditional and Roth IRAs?

Today, I continue to answer Barbara S. retirement questions. As you know because of time restrictions I can’t go into a lot of detail on the air but if you would like more detailed or private answers you can always go to the website and click on the Private Consult button and sign up for a private call with me. I have a special rate for September so there has never been a better time to call to get answers to your questions.

Barbara writes:

What paperwork do I need? Can I toss the 20+ years of statements from the IRAs, since all the distributions will be taxed? I don't have a Roth (today) but it does not get taxed so how would I keep those distributions separate?

Okay, before I answer this question, I have a question for you Barbara. Did you make any contributions to your IRAs with after-tax money? If so, only the growth and not your contributions should be taxed. The best form to keep is tax Form 8606 – this form will be your proof of contributions to both traditional and Roth IRAs with after-tax money. It is so important to keep this form because it could save you a bundle in taxes.

Regarding Roth IRAs – if you decide to open one or if decide to roll your traditional IRA into a Roth IRA and pay the taxes upfront, that will be a special type of account so that when you take money out, the investment firm will list it as such so at tax time any distributions will be marked nontaxable.

Roth IRAs are one the best options since sliced bread. If you are eligible for one and you don’t have one my question is, why not?

And that’s the minute for today. 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!