Every so often you might be inclined to want to know where you will end up savings-wise at retirement. But you’re not sure how to make those calculations that factor in earnings on your money. If that’s the case you need to check out an on-line calculator. There are dozens of them out there and a colleague awhile back mentioned Dinkytown, so I tried that one out. Continue Reading…
Between You and the Kids, Take Care of You!
Recently I had a former student in my office who was a proud new daddy. As we talked about the challenges of raising kids, including financial challenges, he told me he was going to start a college fund for his child and would begin funding it pretty heavily. To put in the money he wanted to contribute each month, he would need to cut back on funding to his 401(k) plan. While I admired his selfless parental instincts, I advised him against this and told him to be more selfish! Continue Reading…
Making Sure the Well Doesn’t Run Dry: The 5 Percent Rule
I was visiting with my former economics professor the other day, Dr. Scott Boaz. When I asked how he was doing, he replied, “Just fine, thank you. According to the IRS, I have another 8.37 years to live!” If you are starting to think about retirement, you’ve got to consider making your savings last throughout your remaining years. And on average, our remaining years are getting longer all the time. At age 65, a male has a life expectancy today of another 20 years. Add another 4 years or so for females. I once asked the students in my retirement planning class why women outlive men. One guy immediately replied, “because they nag us to death!” Fortunately he escaped the class with only minor injuries. Continue Reading…