fbpx

Did You Learn Anything From DotCom 1.0?

There is an old saying that history has a way of repeating itself.   For those of you who can remember the glorious run of the stock market in the late 1990’s filled with internet companies who went public faster than you can say ding ding of the opening bell on Wall Street, are we now watching the launch of DotCom 2.0 in the stock market.    With Facebook going public last week with over a 100 billion dollar valuation, have we as investors and consumers learned anything about risk and investing our money?    Here are three things to be thinking about when it comes to managing your money and trying to make sensible decisions for your overall portfolio. Understand Appropriate Risk Relative To The Time Frame You Need The Money– Even with information available to us with a click of button on the internet, I still believe investors truly don’t understand risk.    One of the simple ways I’ve described this to ...

Read More →

The Words We Don’t Want To Hear: “You May Need To Save More”

I really think over the next five years the whole notion of retirement planning is going to change.   The X and Y generation don’t think about retirement the way their parents or grandparents did.   Since so many more people are staying active during their golden years, the next couple of generations will be thinking more about making work option than pulling themselves over to the retirement shelf.    What still holds true for most us is that since companies don’t really often pensions anymore, it’s up to you to figure out how you can save enough money to do what you want when you want irrespective of cost.    No matter what you calculate your ‘work’ optional number to be you should remember that you only have four options should you start falling short of hitting those numbers.  Here are your four choices: Extend your time frame  – If you planned for your ‘retirement’ goal to be at the age of 60, ...

Read More →

Can I Convert My 401(k) To A Roth 401(k)?

This past week Congress passed the Small Business Jobs Act Of 2010. While there were many interesting parts to the bill including changes to how employee cell phones are viewed and accelerated write offs for business owners, one of the very intriguing parts to the bill is the conversion of your existing 401(k), 403(b), or 457 retirement plan. If your employer has a Roth 401(k) provision, (which if they do not currently you should really complain to your HR or Benefits person) you may be eligible for a potentially good long term tax management idea. Generally your employer must have a Roth 401(k) source in the plan, allow in-service withdrawals, allow rollovers, and have the Roth provision in the plan to be able to take advantage of a conversion. 2010 is an especially meaningful year because no matter what level your income is this year, you can convert some or all of your 401(k) (403(b), 457) over to a Roth ...

Read More →

There is a reason 20% down should be required!

For many years, the rule of thumb for first time homebuyers was to put 20% down when you bought your first house. Over the past decade we saw that rule pretty much fade away. Attracted by no money down loans, it was easy to qualify to get into a home that was likely to be several hundred thousand more in value than you could probably afford. ...

Read More →