A loan officer I know asked me to discuss a topic that she deals with every day: Debt. Specifically good debt vs bad debt. And the choices people make when buying things they think they need. Here are her words:

“Debt is a super hot topic right now … so explore good debt vs bad debt. People spend $50,000 on a new car which depreciates immediately vs buying a home that long term typically appreciates and helps build wealth — crazy to me!

And let’s not forget student loans … you don’t need a college degree to make money anymore. [Read more…]

Compounding. Compounding. Compounding. Just as with location in real estate, compounding is the key to retirement money growth over time.  If you ask the best time to start saving for retirement, the answer most people will give you is “Now!” Or better yet, yesterday.

That’s because your money earns even more money the longer it sits gathering interest. Compounding (where accumulated interest also grows along with principal) is almost magical. And when the money is in a tax-deferred account, where all your interest earnings get to keep compounding … well, even better!

Retirement money growth charts

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As retirement time gets closer, you start thinking about where you might want to live. One interesting option you might hear about is the Life Plan Retirement Community, a special type of CCRC (Continuing Care Retirement Community).

But, as lovely as the pictures in the brochure may be and as tempting as the descriptions sound, there are questions you need to ask before signing the contract. And answers you definitely need to dig into further even after you get them.

What is a Life Plan Community (CCRC)?

Life Plan Retirement Communities offer you financial security and options for progressive (continuing) care if needed as you get older. They usually have cost-saving benefits built into the monthly fee (meal plans, cleaning, free medical transit, free utilities, etc.) plus a variety of social activities designed to keep you active and enjoying your retirement years. [Read more…]

Unless you’re independently wealthy, when you’re out of work money gets tight. And you start to think a lot about money … and where to get it. Do you borrow from a friend or family? Keep using your credit cards until they max out? Find extra work? Or do you use your IRA money.

Sometimes you need to turn to all those sources. And they all have drawbacks or, in the case of part-time work, not always easy to make happen right away. But if it reaches the point where your IRA (retirement) money is the only spare cash you can find, here are some things to think about.

Reasons NOT to use your IRA money

Since this is the advice of most money professionals, here are the main reasons to avoid dipping into your IRA funds: [Read more…]

Life seems so long when you’re young, And then one day you actually start thinking about retirement — and it’s not all that far off. How did you get there? Seems impossible. And yet there you are. Worried you haven’t done enough to prepare.

Although early on you somehow assume all this will just happen, you want to have enough money set aside so you actually can retire. Even if “retire” for you might include doing things you truly love that also earns money. And for most of us that takes some solid planning early on.

But thinking about retirement is BORING!

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A few years ago, someone I know got the shock of their life. Their monthly Social Security was suddenly over $300 less than usual. Since they often turn to me with finance questions, they were understandably upset when they called me. Turns out, their monthly Medicare cost (the premium) went WAY up.

Why did that happen? Well, the reason for this unexpected outcome seemed like a wonderful thing at the time. As a fellow blogger, they sold a website they had owned for many years and got a windfall lump sum payment.

But while they were prepared for the hit to their income taxes, no one had ever told them [Read more…]

Judy H. wrote to ask me about her Medicare coverage. She says she’s confused by all the information and choices out there. She’s not alone! She’s looking at Medicare Advantage vs Medigap (Medicare Supplement).  Or should she return to Original Medicare and pay the 20% on her own?

While I’m not a Medicare expert, I do understand some of the basics. I also did some online snooping to hopefully help guide her to finding an answer that’s right for her. Here is her question and my response. Your situation may be different, but hopefully this can help you decide too:

Decision: Medicare vs Advantage vs Medigap

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Are you thinking about whether you’re making the right choices for your retirement accounts? If so, you may be wondering about basic differences between a Roth IRA vs a traditional IRA.

Is one type of account better than the other for you? How does each affect your taxes, both now and in the future? And how will they affect the amount of money you’ll actually get to use AFTER TAXES when you retire?

What’s a traditional IRA?

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Thinking about retiring, but afraid to retire yet? In a recent post, I talked about reasons why people (bosses) won’t retire. One of those reasons was fear, something I think most people feel (at least to some degree) as the time approaches.

It’s not surprising that the mere thought of retirement is scary. Once you get past visions of pina coladas on the beach and lounging in a hammock as gentle breezes caress you, there is a lot of vast unknown stretching in front of you. And bills to be paid. Can you make it work for you?

Is retirement now right for you?

First, let me say that I have no idea whether YOU should retire. Each person is different. For some it’s the absolute right decision, although the question of when to retire is key. And for some, who love their work and are happy staying right where they are, retirement age is just a number.

But for those people who are afraid to retire or just keep putting it off despite feeling the tug, it’s because there are far more important questions getting in the way. So let’s look at a few of them, one by one.

Change is hard.

And so is deciding to do it anyway.

Who am I without my job?

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