Should You Ever Borrow On A 401(k)?

For some of you a dreaded financial question may stare you in the mirror at some point in your life. Should you borrow against your 401(k)? While all initial responders in your body say no, there could be a few instances where borrowing against a 401(k) may actually make sense. Here is my smart money moves take on when to make yourself a loan. In general, it is not a smart financial move to borrow against your 401(k) plan. There are many individuals who are quitting their job and considering starting up a new business. In order to start their new entrepreneurial venture, they will likely exit from their current employer. The additional problem is where will the new entrepreneur find the capital to open up their new business? Instead of cashing in your old 401(k), one tremendously creative option to potentially fund a new business is to set up your new corporation and create a Solo 401(k) plan. Solo ...

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Setting and Making Realistic Financial New Year’s Resolutions

It is almost that time of season when you will begin to ponder your new year’s resolution.  Will it be exercise?  Will it be a new diet? Or will it have something to do with improving your family finances.  Making resolutions (or goals) can be a very difficult process because it often makes you face some of your own realities like it or not.   When you decide to set goals that are realistic, I have been a big cheerleader over the years to use the S-M-A-R-T goal setting system.  Here is how it works. *S is for Specific– Be very specific about what you are trying to accomplish.  Don’t tell yourself you want to pay down debt.  Instead, give yourself a specific goal such as paying off $10,000 of debt. *M is for Measurable– Have a way to track your progress.   In the last example, make a chart for paying off $833 a month and cross it off each month ...

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Your 2013 Year End Smart Money Moves

Believe it or not, 2013 will be a footnote in the history books in just three weeks.   As you scurry around to shopping malls and local outlet stores to find presents and stocking stuffers; make sure you don’t forget important money items, that can be worth a lot more than a plate of cookies on the fireplace mantle.  We often overlook some of these items, because we simply run out of time or they just pass by us because we don’t know about them at all.  Here are some year end ideas from the Your Smart Money Moves Column. Do you have a will/living trust? If they don’t have a written one, then the state they live in will have one for them.  My guess is that you don’t want the state to decide how your parent’s assets should be distributed.    The will has many features to it, but most importantly it allows for your parents to essentially say which ...

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Who Needs A Taxi When You’ve Got Uberman

In 1979, the sketch What if? aired on Saturday Night Live, pondering the notion that what if the comic book hero Superman had landed in Nazi Germany when he first came from Krypton. Rather than being called Superman, he took the name of Überman. Uber has become a term we have all come to know as something truly unbelievable or almost larger than life.   Well, what could be better than being able to avoid the late night scary thought of having to hail down a taxi when you might just have Uber right around the block? With the power of the smarthpone, a new phenomenon is likely coming to a city near you, if it hasn’t hit already, called Uber.  Essentially, Uber is your on demand private driver.   You can use an android or iPhone app on your smartphone and see what drivers are in your area.  In the US and Canada you can simply text an address and your ...

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Four Steps On How To Budget Your Next Vacation

I have a favorite client of mine who retired a few years ago and is in the midst of publishing his own travel book.   He’s a really great individual and has a true knack for knowing how to budget out a vacation.   One of the principles he’s stuck to over a lifetime while becoming wealthy is to not take a vacation that he did not already pay for in advance of the trip (including spending money).    He may book a vacation to go to Italy one year for now, and if the trip will cost $4,000 he will actually make payments of $333 a month over the next 12 months.    By the time the vacation is upon him, he can really enjoy the excursion to a far away destination because he won’t have the debt lingering over his head when he comes back to the United States.   While we all may not be able to take this exact methodology, let’s ...

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VIDEO | Why Do You Think 1 Million Dollars Is A Lot Of Money?

Published on Sep 28, 2012 When it comes to life insurance, most people use some magical rule of thumb like buying 2 to 3 times their salary. (Full Story Here –http://bit.ly/Sm5l0J) Even worse, since insurance is not most enjoyable financial planning topic, they come up with the notion that they will just pick up $250,000 or $500,000 and their partner will be alright if something should happen to them. I’m here to tell you that when it comes to life insurance, $1,000,000 just isn’t a lot of money.   ...

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Life Insurance: Why Do You Think 1 Million Dollars Is A Lot Of Money?

I’m excited to take part in the life insurance movement with Good Financial Cents.  Having been a practitioner involved with life insurance over the past 21 years, I have unfortunately had to deliver my fair share of insurance checks.   When I met people who have lost a loved one and now have to build them a financial plan, never once did I hear them say, “Boy, I’m so angry my life insurance agent sold me too much insurance!”    Rather, I hear horror stories from widows who cannot understand why their husband didn’t take out more life insurance.   Or, they assured their spouse that they would be ‘well taken care of’ if anything happened to them.   This is the story for many families across America. In the last six months, I’ve seen both friends and family who are in the 40 to 45 year old range dealing with major medical issues.   I’m 42 and when people told me about 10 years ...

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Who Will Take Care Of Mom and Dad?

Haven’t you been sitting around with your brother(s) and sister(s) and had the infamous discussion on who ranks where on Mom and Dad’s favorite list.   While siblings usually joke around who is at the top of the ladder, usually someone cracks the comment, “I’m sure they cut me out of the will years ago.”   For Generation X’ers, you are probably beginning to see the early stages of your parents slowing down or perhaps one of them had a mild health scare over the last five years that got you thinking who is going to take of Mom and Dad?    Before each one of your brothers and sisters rush to put their finger on their nose and scream “NOT IT!”, it may be time to have a serious discussion about who will bear the responsibility should your Mom and Dad need someone by their side for financial or medical decisions. I believe that over the next 5 to 10 years, the ...

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