Retire With Ashley

This week’s theme on the Retirement Quick Tips Podcast is: Setting Up Your College Grad For Financial Success

Today, I’m talking about teaching your young adult child how to use technology to budget. Now I’d be willing to be your twenty something is a lot better at using the gram or tik tok, or whatever the kids are into these days. But chances are, they haven’t yet figured out how to apply those tech skills to their money, which is where you can help them.

Technology can be your child’s best friend when it comes to managing their finances. If you think about how different things were when you were there age, they have many more tools to help them be successful. Even I remember a time when it was cumbersome to know and track the status of my money in my checking account. But now, it’s all on my smart phone and I can see how much I have in my bank account all at my fingertips.

Taking it a step further, college grads who are learning to manage their money need to learn how to track their spending and spend within a budget. Yet, many college grads have no idea how to budget. So work with them to select a technology tool to help with that. Here is just a short list of some  popular options:

• Bank accounts - many will categorize spending to make budgeting easier

• Mint, for just about everything

• YNAB, for hands-on zero-based budgeting

• Goodbudget, for hands-on envelope budgeting

• EveryDollar, for simple zero-based budgeting

• PocketGuard, for a simplified budgeting snapshot

• Fudget, for budgeting without syncing accounts

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.   

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>>> Visit the podcast page: https://truenorthra.com/podcast/ 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

This week’s theme on the Retirement Quick Tips Podcast is: Setting Up Your College Grad For Financial Success

Today…I’m talking about the most important thing you can do to set your young adult child up for success: teach them how to budget. How to track their income coming in, spending and money going out, and make sure that the latter never exceeds the former. 

Some parents aren’t comfortable with helping their child in this area, because maybe you’ve never budgeted yourself or feel that your not great with money. Not to worry. 

There are so many amazing resources out there, and it can be an opportunity for learning together. As a graduation gift, pay for enrollment in an online or in person class to learn best practices. It can be something fun that you can learn and do together. 

If you and your grad love to read, there are great books on budgeting you can read and learn together, bonding over budgets! 

Most courses and books are inexpensive and the financial reward of understanding how to keep finances in check will serve them well for decades, with potential generational impact as they will be able to pass on what they learn and good financial habits to their own children. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.    

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>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

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>>> Visit the podcast page: https://truenorthra.com/podcast/ 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

Welcome to a new week here on the Retirement Quick Tips podcast! I’m your host Ashley Micciche, co-owner of True North Retirement Advisors, an independent financial advisory practice managing $340 million in client assets. I’m a Chartered Retirement Planning Counselor and I’m using my 15 years of experience as a financial advisor to help you gain clarity and make a plan for the retirement you envision.

On this podcast, I cover everything from investing, to retirement spending, to taxes in retirement in just a few minutes each day, so if you’re 5-10 years on either side of retirement, and looking for some daily doses of retirement planning wisdom, stick around this week as I talk about Setting Up Your College Grad For Financial Success

[Zero coupon bonds…a few thousand dollars of unused funds became the seed money for my retirement investments at age 22]

That’s it for today. Thanks for listening! Come on back tomorrow where I’ll talk about…

My name is Ashley Micciche...and this is the Retirement Quick Tips podcast.

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>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

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>>> Visit the podcast page: https://truenorthra.com/podcast/ 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

It’s Sunday, which means...it’s recap time here on the Retirement Quick Tips Podcast

This week the theme was: Top 5 Money Traps To Avoid

In case you missed any episodes, here’s what we discussed this week…

• Buy Now, Pay Later

• Debt Consolidation Loans

• Adjustable Rate Mortgages

• Timeshares

• 401(k) Loans

A couple of close contenders that didn’t make the cut: car leases, certain types of life insurance and annuities, and virtually any type of debt that’s not a mortgage: student loans, pay day loans, credit card debt, etc. 

The most important takeaway from this week is…the biggest money traps are almost always tied to debt. Whether it’s a 401k loan or a buy now pay later scheme, taking on more debt to fund a particular lifestyle comes home to roost eventually, and it’s concerning the amount of people who are still up to their eyeballs in debt, especially when you’re close to retirement. So pay attention and be aware of these money traps so you can steer clear. 

Tomorrow, I’m starting a brand new theme: Setting Up Your College Grad For Financial Success

It’s graduation season! If you have a child graduating college this year, congratulations! Many of you listening have a recent college grad, or a child (perhaps multiple children) who will be graduating college in the next few years. So with that in mind, I’m sharing with you my best ideas for how you can set up your college grad for financial success. 

Thank you so much for listening this week! If you’re enjoying the podcast, chances are someone else you know who is getting close to retirement could also benefit from checking it out, so please share the show with a friend, a neighbor, your sister, or your boss. Just go to your favorite podcasting app, hit the share icon, then text or email the show link to someone you know who is eyeing retirement. 

Thanks for sharing the love and spreading the word. I hope you have a blessed Sunday. My name is Ashley Micciche, this is the Retirement Quick Tips Podcast.

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>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

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>>> Visit the podcast page: https://truenorthra.com/podcast/ 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

This week’s theme on the Retirement Quick Tips Podcast is: Top 5 Money Traps To Avoid

Today, I’m talking about a money trap that may not seem like a money trap at first glance: the 401k loan. 

The 401k loan is essentially a loan you take from yourself. You’re borrowing from your own 401k balance, and then when you re-pay the loan, you’ll pay interest, but that interest on the 401k loan, you’re paying to yourself. 

So it sounds like the loan is free and low risk. But here’s why 401k loans are money traps: 

1. They’re tempting for the reasons I just mentioned. For this reason, people who use 401k loans tend to view their 401k as a piggy bank to tap into whenever they need, not as an account set aside for retirement. Viewing it this way causes many borrowers to tap into their 401k more often and borrow at higher amounts. 

2. When you borrow money from your 401k, you’re losing out on the investment earnings you otherwise would have had if they money stayed in  hte account and stayed invested. That wouldn’t have been a problem in 2022 when your 401k went down in value, but what if you had a 401k loan outstanding in 2019-2021. The S&P 500 was up 29% in 2019, 16% in 2020, and 27% in 2021. The cost of the loan is essentially equal to those returns you missed out on while your money wasnt invested, making the real cost quite significant. 

3. You repay your loan using after-tax money. That’s a horrible financial tradeoff when most of the time, your original contributions were made on a pre-tax basis. Think of it this way: if you’re in the 24% tax bracket, you now have to work about 1/4 more to get the money back into your 401k, compared to when you made the original contributions. 

4. I work with a lot of 401k plans, so I see firsthand what people tend to do when they take a loan. And very often, they stop contributing to their 401k while they’re repaying the loan. We’re talking potentially tens of thousands if not more in a lower 401k balance because of lower or no contributions while repaying the loan. 

5. All kinds of problems if you change jobs or get laid off or fired. The loan becomes due by the time you file for your next tax return. And if you default, you’re looking at taxes and penalties on the loan.

So despite seeming attractive on the surface, a 401k loan is definitely a big money trap, and should only be used for a true emergency, and paid back as soon as possible. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.    

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>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

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>>> Visit the podcast page: https://truenorthra.com/podcast/ 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

This week’s theme on the Retirement Quick Tips Podcast is: Top 5 Money Traps To Avoid

Today, I’m talking about money trap of timeshares. Despite hearing horror stories about timeshares and learning as a kid even that these are money traps, I am still continually surprised by how often I hear about a client or a friend or just someone I know who has a timeshare. And usually I only hear about it when they’re trying to get out or they made a mistake buying in the first place after they succumbed to the hard sell in exchange for the free round of golf.

Here are 10 reasons, according to Nolo.com, why timeshares should be avoided:

https://www.nolo.com/legal-encyclopedia/top-ten-reasons-think-twice-before-buying-timeshare.html#:~:text=But%20read%20the%20fine%20print,can%20 foreclose%20on%20your%20 timeshare. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.    

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>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

This week’s theme on the Retirement Quick Tips Podcast is: Top 5 Money Traps To Avoid

Today, I’m talking about the money trap of adjustable rate mortgages. With higher interest rates over the past year, these mortgage products which brings back haunting memories from the Great Recession, are surging in popularity.

From early 2020 through early 2022, adjustable-rate loans made up less than 5% of all mortgage applications, according to the Mortgage Bankers Association, a nonprofit organization representing the U.S. mortgage finance industry.

But by mid-2022, they made up more than 10% of mortgage applications. By October 2022, nearly 12% of mortgage applications were for adjustable-rate loans.

During the housing boom from 2004-2007, adjustable-rate mortgages made up over a third of mortgage applications each year, before plummeting to less than 5% across parts of 2008 and 2009, and remaining under 10% until recently.

What makes adjustable mortgages more popular, especially right now, is that the rate you’ll start out paying on your mortgage is lower than a fixed rate mortgage. Right now, the interest rate on a ARM that adjusts in 5 years is 5.81%, compared to the 30 year fixed at 6.94%. 

So it’s easy to see why a lot of borrowers are getting sucked into this money trap when rates are so much lower on the ARM. Depending on the size of the loan, you’re looking at thousands of dollars less every year that you’ll pay on the loan, and with many buyers still struggling to afford a house, a ARM looks especially attractive.

The problem is, that if you buy a house today using an adjustable rate, you’re betting that you’ll move in the next 5 years, or that rates have declined AND you have enough equity in your house AND you can afford all the refi fees. That’s a pretty big uncertainty and a pretty big bet that everything will be in your favor when you fast forward 5 years. 

If rates are still high in 5 years or housing prices have decreased and you don’t have the equity to refinance, and you’re hit with a higher payment when your mortgage rate adjusts that you can’t afford, that's how you get yourself into a serious mess like we saw with the mortgage mess, foreclosures, and housing crisis back in 2008. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.    

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>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

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>>> Visit the podcast page: https://truenorthra.com/podcast/ 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

This week’s theme on the Retirement Quick Tips Podcast is: Top 5 Money Traps To Avoid

Today, I’m talking about the debt consolidation loan money trap. If you have multiple debts to repay, the debt consolidation loan can be a helpful way to get multiple debts merged into one loan with a fixed interest and a single monthly payment, reducing the stress of managing multiple debts and multiple payments. 

Sounds like a great idea, right? While there are some definite upsides of debt consolidation - the streamlining of your payments, & potentially securing a lower interest rate with the new loan, there are quite a few downsides too, making this a money trap.

1. Doesn’t address the underlying issue of potential spending problems and mismanagement of finances. Debt consolidation loan might not help much if you find yourself in the same situation next year because you didn’t address the root cause of your debts 

2. Temporary decline in your credit score, because applying for the new loan is considered a hard credit inquiry

3. Sneaky added costs that make it difficult to understand the real cost of the loan:  origination fees, balance transfer fees, closing costs and annual fees. 

4. If the interest rate on the new loan isn’t less than what you’re currently paying, you’ll lock in a higher rate and pay more in interest for the convenience of consolidating your debt

5. According to Forbes: “you could still pay more in interest over the life of the new loan. When you consolidate debt, the repayment timeline starts from day one and may extend as long as seven years. Your overall monthly payment may be lower than you’re used to, but interest will accrue for a longer period of time.”

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.    

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>>> Subscribe on Apple Podcasts: httpstr://apple.co/2DI2LSP

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>>> Visit the podcast page: https://truenorthra.com/podcast/ 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

This week’s theme on the Retirement Quick Tips Podcast is: Top 5 Money Traps To Avoid

Today, I’m talking about the Buy Now, Pay Later money trap. 

On QVC’s website, they have a beautiful aqua blue Kitchen Aid stand mixer with a tilt head and a glass bowl. It’s gorgeous and I want it, but I don’t want to pay the $399 price tag on it. 

Enter buy now, pay later. I can pay instead with 5 installments of $79.80 with EasyPay. There are no interest charges and I can spread the cost out over monthly installments, with no extra fees or charges? 

This isn’t unique to QVC or expensive stand mixers. If you pay attention to virtually anything you buy online these days, you’ll almost always see this as an option through a service like EasyPay, AfterPay, or Klarna, or others like it even for a $20 item.

Seems like a good idea to not have to pay for something up front all at once, but these ubiquitous buy now, pay later services come with some risks that are concerning, making these a definite money trap. 

According to a recent article in the Washington Post, here are just a few problems with these alternative payment apps: ““Buy now, pay later” is largely unregulated, and substantial issues have emerged. Last year, 10.5 percent of users were charged at least one late fee, and several signs indicate delinquencies continue to rise in 2022. Users complain that it is difficult to get refunds and issues can ding their credit score in ways they didn’t realize. But the biggest concerns are that many of these financial technology companies are not doing a sufficient job assessing people’s ability to repay and are using shoppers’ data to suggest more products to buy — on credit.”

The Financial Health Network took a closer look at who’s using these services, and found that “nearly 70 percent of users say they spend more using these products than they would have otherwise.”

If you frequently use one of these apps, it becomes complicated to track how many are outstanding, when your next payments will get deducted, and it’s easy to get overextended. 

“People using these products are more likely to experience “rapid increases” in bank overdraft charges and credit card interest. That’s because “buy now, pay later” companies typically have shoppers use autopay when they sign up, meaning they link a debit or credit card to the account.”

Another sneaky trap with these apps is that these companies are beginning to shift their business models away from earning a fee charged to the retailer to collecting user data and marketing products to them.

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the Retirement Quick Tips podcast.    

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>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

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>>> Visit the podcast page: https://truenorthra.com/podcast/ 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance

Welcome to a new week here on the Retirement Quick Tips podcast! I’m your host Ashley Micciche, co-owner of True North Retirement Advisors, an independent financial advisory practice managing $340 million in client assets. I’m a Chartered Retirement Planning Counselor and I’m using my 15 years of experience as a financial advisor to help you gain clarity and make a plan for the retirement you envision.

On this podcast, I cover everything from investing, to retirement spending, to taxes in retirement in just a few minutes each day, so if you’re 5-10 years on either side of retirement, and looking for some daily doses of retirement planning wisdom, stick around this week as I talk about Crafting Your Retirement Budget. 

[What I’m not going to talk about - traps that are so obvious or might only apply to young people]

Timeshare in Mexico…I wasn’t born yesterday so you’ll need to do more than a free breakfast to get me to attend your timeshare presentation! A free round of golf, and a nice dinner for my mom and mother in law and my sister over here, and then maybe I’ll waste a couple hours sitting through your high pressure sales pitch. 

Thankfully I just kept saying no to their lame free breakfast offer, because I am a real sucker for a good sales pitch. And there's at least a 50/50 chance that I would be the reluctant owner of a timeshare in Mazatlan today if I didn’t know better.

But that’s the problem, many of us don’t learn our lesson until it’s too late, so this week, I’ll share with you why timeshares and other money traps should be avoided to help you steer clear of these bad financial blunders.

That’s it for today. Thanks for listening! Come on back tomorrow…where I’ll talk about a newer money trap: the buy now, pay later apps.

My name is Ashley Micciche...and this is the Retirement Quick Tips podcast.

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>>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP

>>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs

>>> Visit the podcast page: https://truenorthra.com/podcast/ 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance