December 12, 2014
Are you getting a raise?
Many people think so with consumer sentiment reported up today (says
Thomson Reuters/U of Michigan). This is
the best time to boost savings for your goals.
If you're getting a raise from, say, $75k to $77k and you boost your 401(k)
automatic withdrawal from 10% to 11%, you'll save about $1000 more per
year. This boost alone over 25 years
might give you an extra $60k when you retire.
Boost savings in a similar way with every year's raise and you probably
add over a half million dollars. That's
an EXTRA half million. And after taxes,
that's less half of your raise.
December 11, 2014
Women save more for retirement than men says a Vanguard
study. A higher percentage of women save
in their 401(k) and those women also save a higher percentage of their pay than
men do. C'mon guys! Step it up and do
your share! Tell HR you want your
numbers raised for 2015. The limits next year go up to $18,000 (and up to
$24,000 if you are 50 or older.)
December 8, 2014
Do Christmas and Hanukah presents make us happy?
Probably. But do we need to spend $300
on each child? Or would our kids be
happier over their lifetime if they got $100 in gifts from mom and dad and had
an extra $200 put into their college accounts? After 18 years in the stock
market, that difference could boost your college fund by $7 grand. With average student loan debt now around
$29k at graduation, that $7k would make a big difference in launching your
child into a more financially stable life.
December 3, 2014
Gas prices are low. Remember a while back when gas prices fell dramatically and the news reported that SUV sales were way up because it would be cheap to fill those enormous gas tanks? And remember how gas prices very quickly went right back up to high levels? Those buyers made the classic mistake of making long-term decisions (buying a car) based on short-term data that can change in a heartbeat. Will that happen again or will those old buyers just dust off the big car they tucked away the last time when they could no longer afford to drive it?
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com
Gas prices are low. Remember a while back when gas prices fell dramatically and the news reported that SUV sales were way up because it would be cheap to fill those enormous gas tanks? And remember how gas prices very quickly went right back up to high levels? Those buyers made the classic mistake of making long-term decisions (buying a car) based on short-term data that can change in a heartbeat. Will that happen again or will those old buyers just dust off the big car they tucked away the last time when they could no longer afford to drive it?
- Larry Pike, CFA, Client Priority Financial Advisors LLC
- www.clientpriority.com
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