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2010 brought with it not only cold weather to the East Coast, but some new tax laws changes. One change which is getting a lot of attention has to do with IRA conversions. To understand why that’s important, let’s start first by looking at the similarities and differences between traditional and Roth IRAs. (more…)

Everybody needs to know what their limitations are. But sometimes it’s hard on the ego to admit that you need help or don’t know everything you should about a topic. Set yourself free of these doubts when it comes to financial planning, because even planners themselves have to know when they need to get additional help. It’s even part of the CFP^® Code of Ethics Principles.

If you are ready to seek the help of a financial advisor, first ask friends and family for referrals, or use the CFP^® Locator. Next, compile a list of questions to ask when you first meet any prospective candidates. (more…)

In a recent post, I wrote about brown bagging your lunches to add to your savings painlessly, but there’s another big money-suck culprit: specialty coffee drinks. I know, I know, the coffee at work can sometimes get overheated or taste like instant. Heck, it may be instant, but bringing coffee from home is a better fiscal option than buying it. (more…)

In the financial markets, as in poker, there is great anxiety with going “all in” or investing all of your money at one particular point in time. What if today is the “high”, as in the old adage to be a successful investor you should buy low, and sell high? No long-term investor wants to buy at the market’s peak. But how do you avoid it, if you don’t have the inclination or expertise to try and time the market? The answer is dollar cost averaging. (more…)

Back when I was a poor college student some 20+ years ago, every penny counted. I measured the cost of any given expense by its relative value to that of buying pizza at my favorite eatery. It was a simple standard that was easy to understand: a textbook costing $16 was 32 trips Uptown to Bruno’s for a slice of pizza. Was it worth the tradeoff? Did I get the same perceived equivalent value? Okay, a textbook is more of a necessity, but you get the idea.

Nowadays, with actual disposable income to use, I still ask myself if a particular expense is worth it. What is its true value to me? I think during the high flying bull market and abundantly available credit, many people lost that ability. The feeling of entitlement and immediate gratification overpowered the desire to determine the true value of purchases and made the idea of lay-away or waiting to save for an item passé. But as more families are tightening their belts and getting creative with their finances, I think it makes sense to have a financial measuring stick. (more…)