A Reader Question: Help This Nurse Please!

September 3rd, 2010

A Nurses Financial Question:

A nurse reader emailed me recently with a question.  They had a buyer for their home, and wanted to know what to do with the money that would be coming in.  They are concerned about the current economy, and wanted to know the safest place to put the money.

Of course, I was ready to pounce.

My Initial Financial Suggestions:

  • Make sure you pay off your credit cards, your car.
  • Make sure you are careful when purchasing your next home to get a good buy.  Put at least 20 % down and finance for no more than 15 years……
  • Make sure you have life, and health insurance, and are building a college fund if needed…..The usual stuff!!!

The Nurses reply:

Well didn’t I feel like a fool when the reply came in:

  • They live in another PAID FOR home.  They have another rental property, PAID FOR!
  • They have no credit card or car debt, or any other consumer loan.
  • They own land with planted pines-PAID FOR!
  • They have a lake home- bought when a friend was going under- at a great price.  They have a small mortgage on it.  The mortgage is being taken care of by renting the lake home and their other rental.
  • They are not fully funding their 403b, or IRA’s. (finally, something I could work on!)
  • Kids are grown and on their own.

I wrote back-“What the hell do you need me for-you need to be writing The Millionaire Nurse Blog!”

This couple both work in the health care field, her husband is in allied health as well-so we aren’t talking about huge salaries.  They just live conservatively.    And invest their money in what they can see, and understand.

This is exactly what I am trying to teach.  Anyone can become “wealthy” by today’s standards, if they take the time to have a plan.  Put money aside month by month, and let the money grow.

Dr Dean’s Recommendations:

Now I certainly had  further advice for them, in the “for what it is worth” department:

  • Develop a more formal plan for their money-know where it is going before they get it.
  • Use their 403b’s to gain the match from their employer.
  • Know where their IRA’s fit regarding their overall investments. Not just forgotten.
  • Diversify:  Someone who has most of their net worth tied up in real estate, needs to make sure their other investments, in their IRA or 403b,  aren’t in a mutual fund,  heavily invested in real estate.
  • Make sure they have an estate plan, with a will and durable power of attorney.
  • Make sure they have identity theft protection.
  • Make sure the rates they are paying for insurance are competitive.

In short, make sure they are covering the small details, before they become big problems.

Reader Questions:

I also offered to put their situation out here, on the world wide web-so other financial experts can help me make suggestions.

Anything I have left off?  What do you think?

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Posted in personal finance | No Comments »

WHICH CREDIT CARD?

September 1st, 2010

Guest Post by FDL

WHICH CREDIT CARD IS BEST  FOR YOU (AND ME)?

art by tru.ca

Being smart about limiting the number of times I drag out that plastic instant loan maker is a given.  We all recognize how much easier it is to go for the ‘unnecessary’ purchase when plastic is involved.

That little monkey that sits on my shoulder screaming “I have to have those shoes right now or I will surely die” or “but it’s such a great price” in a calmer, more practical tone, wins more often when a credit card is involved.

Personal failings aside, for many of us there is a time and place to have a credit card available-times I prefer a credit card over a debit card.  Times such as:

  • for online purchases
  • for dining out when the card will be taken out of your sight
  • for hotel stays and rental car use
  • to keep better track of expenses

Credit cards have a place in my life.  I simply do not always have a checking account balance large enough to accommodate a large unexpected hold on my account that is the norm with some of the uses listed above.  I always pay off my credit card balance every month and that helps me muzzle that beast on my shoulder.

Have I made the case for keeping a credit card?  I am trying to convince myself as well as you, but I will be keeping plastic in my life.  So, now the question is:  Which card is best?  I hope you didn’t think there would be a simple answer.  With some research, here’s what I found.

How to decide which credit card:

JD Power says, American Express is the credit card issuer of choice for four years running.  The survey by J. D. Power and Associates looks only at customer satisfaction with the issuing card company.  It’s all about communication.  Am Ex does the best job of communicating with their customers.  They also have a less risky clientele, a fact that is not overlooked by the folks doing the survey.  Discover came in second, again all related to excellence in customer communication.

Reward Cards

What about rewards?  What card fits your needs?  Again, that is not a simple matter either.  There are several sites available to look at what is out there, what is offered, and what might be best for you.  An article that listed a couple of good sites was at bucks blog.  Of course, there is some rivalry for who gives you the best advice-good for you and me-so a short comparison of the sites is revealed.

  • Credit Card Chaser has a search service listing different criteria that you choose.
  • NerdWallet.com is new and tries to list every card out there which is their way of finding a niche in a crowded market.  Not all of the cards listed are sponsors.
  • Credit.com gives info on only 100 sponsored cards.  Their COO states that sponsored or not, all the info is accurate.
  • CardHub.com lists a 1,000 cards.  They admit to giving preference to sponsored cards.

By the way, ‘sponsored cards’ give the websites a chunk of change when someone applies for a card using that site.

OK, now we know that choosing which plastic is complicated, too.  Since I love misery, what did that CARD Act passed last year by Congress do to my rewards?  And oh yeah, what do I actually get for my ‘rewards’ anyway?

I’m exhausted just thinking about all this research.  Stick around, I’ll get back to you with all that info.

Until next time,

FDL

FDL blogs for Fast Declutter Your Home, a clutter and organizational website.

Reader Questions:

  • What is the criteria that you use for choosing a credit card?
  • Do you have a personal favorite and why?
  • Do you believe credit cards are evil and should be banned from the planet?

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Posted in credit cards | 5 Comments »

Divorce: In This New Economic Reality!

August 30th, 2010

Divorce

Unfortunately, divorce is a common cause of financial problems.  And, of course,  financial problems are a common cause of divorce.

An article in the WSJ describes efforts to decrease the cost of divorce in an economy that has affected all aspects of our lives.

Couple fighting photo by v.peckham c.c.

The Current Economy and Divorce

How has the recent financial downturn affected the economics of divorce?

  • The most valuable asset in many households is their home.  With home values plummeting-how do you deal with it?  In the old days-sell the home, pay off the note, and divide the proceeds.  How can you do this, with many homes upside down, and with the sale of the home nearly impossible in this environment?
  • The other most valuable asset, retirement and investment accounts.  The value of many of those accounts has dropped by 30% by many measures.
  • Debts in the marriage-how to decide who owes which debt, is increasingly complicated.
  • Record high unemployment-how can you pay child support, when you are out of work.
  • Attorney’s fees have increased faster than inflation, making divorce much more expensive-average divorce costs in the US-$ 15-20,000.00.

Divorce Alternatives

What are the alternatives in this heartbreaking scenario?

  • Stay together-divorce rates typically drop, in an economic downturn-couples can’t afford to divorce-so they either stay together longer, or separate, but don’t file.
  • Do-it yourself divorce-There are many do-it yourself divorce kits.  The couple sits down with the templates, work out an agreement on all the issues, take it to court where it is filed.  In some cases this can drop the cost to less than $1,000.  The laws vary widely state to state-make sure you pay attention.
  • Mediation-This article gives 10 reasons to use a divorce mediator-if do-it-yourself is not an option-as issues can’t be agreed upon-or things are too complex, this route may be worth exploring.
  • Collaborative Divorce-This more formal route, involves attorneys, psychologists, and other professionals, coming up with a plan that both sides agree on.
  • Divorce court-obviously the most expensive-this is the route chosen by those couples who basically now despise each other, and want to do the most damage possible.  Usually the only winners here are the lawyers.

Divorce Precautions

What are a few precautions recommended by experts, especially if you are going to try to do-it-yourself?

  • Don’t forget health insurance costs-many who have been used to employer provided plans-aren’t eligible once they divorce the spouse with the health plan-and even though Cobra laws insure you can get health insurance-the cost is prohibitive for some.
  • Debts-make sure your name is not still on credit cards you are supposedly not required to pay, or that your name doesn’t remain on any other notes outstanding.  If your ex doesn’t make the payments-the creditors will not care about the divorce papers-they will hound you for payment.
  • Don’t make too many concessions-just because you want out.  You will have bills to pay, kids to raise, and a significant cut in that family income you became accustomed.
  • For many, a significant lifestyle adjustment is necessary-don’t live on credit cards cause you have “champagne” tastes, on your new “wine-cooler” income.

And finally the cheapest way to save money on divorce-is just like with many illnesses-PREVENTION!!!!

  • Premarital counseling-remember lust does not last!
  • Intra-marital counseling-don’t let small problems become huge ones.
  • Financial stability-living beyond your families means will catch up-causing unnecessary stress.
  • Keep love alive-spend quality time with each other.  Date night, learning to compromise, and having a short memory for perceived slights will go far!

No amount of trying can keep all marriages intact.  But before you break the tie that binds, make sure you check your emotions-and think clearly.  And have a close friend, minister,  or a family member support you along the way-to keep from doing something stupid!

Reader Questions

Have you been through a divorce?

How did it affect your finances?

Any tips for those who are beginning the process-things you did wrong, or right?

Help your fellow nurses and comment here.

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Posted in Quality of Life, personal finance | 10 Comments »

Bonds: In A Bubble? Should You Care?

August 28th, 2010

Bonds and Bubbles

Bonds have been in the news lately.  The concern by the Wall Street talking heads, is that the bond market is in a bubble.  What is a bubble?

  • No it’s not a bubble, like we used to blow with our little bottles of soap and the rings that came with it.
  • And no, it’s not a bubble, like we blow with our baseball card bubble gum, or the big red ball of gum, that keep the dentist in BMW’s.
  • And no, its not the bubbles, that tickles our nose when we are drinking cheap champagne on New Year’s Eve.

    Bubble Monster by audi_inspiration(C.C.)

This kind of bubble, is the kind that bursts when we invest our hard-earned dollar, or even worse, our borrowed dollar on the stock or bond market.  Following the herd, the can’t miss recommendation of our brother-in-law.

Then POP, the bubble bursts, along with our dreams of making a killing!

Again-the bubble bursting is the noise we hear, when our investment crashes to the floor, or worse, the basement, or even worse to floors of hell!

Now that you understand bubbles, now lets discuss the bond’s that may or may not be floating, up, up, up-waiting on the guy with the needle, with a grin on his face, waiting for just the right moment-to bring it all crashing down.

Types of Bonds

I recently wrote, a very serious article, about how a company sells bonds to  raise money to build a new factory.

Bonds, however, come in several types, with the post I linked to above discussing corporate bonds.

US Government Bonds

But the most common bonds sold, are  US government bonds.  These are sold at auction by the US government, to raise (borrow) money to pay for its bills.  Otherwise known as the US debt.  And as we have discussed in earlier posts, the US debt is growing at a record rapid pace.

Where does the bubble come in with bonds?  Well, with all the turmoil recently with concerns about a double dip recession, and another world economic downturn-the professional investors are piling into the guaranteed return of the US government bonds.

Another reason, is the fear of the stock market-money has to be invested somewhere, and if not stocks, that leaves bonds for many investors.

The more investors bidding for the bonds, the lower the interest rate.  The interest rate on US Bonds are at 30 plus year lows.

Why you, a nurse should care about Bonds:

But the bigger question you may have is, “Why should I, a nurse working a 12 hour shift care?” I am just working to feed the family, and helping others.

The reason you should care, is that the interest rate paid on these bonds, is reflected in, or has an impact on, just about every other part of the economy, and your money.

It affects:

  • mortgage rates
  • the success of your 401k or 403b, if any of your money is invested in bonds-and most of you have a portion of your money in bonds-whether you know it or not-if you invest in one of those retirement accounts at work.
  • the rates you pay, when you borrow money for a car, truck, boat, etc.
  • the rates you get paid in your savings or interest bearing checking account.

So the government bond interest rate yield has an affect on all of us.  And bubbles are usually not a good thing, in any part of the financial world, because they are followed by a lot of pain, when the bubble bursts.

I will discuss and explain government bond investing further in another post.  Whether you should buy bonds, or bond mutual funds, in your retirement accounts, 401-k or in your own investment accounts.

Reader Questions

What do you think?  Are we in a bond bubble, does the interest rate you are paying or are being paid, matter to you right now?

What are your questions about the bond market, and all this government debt?

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Posted in Uncategorized, personal finance | 5 Comments »

Personal Finance: What Would You Teach?

August 25th, 2010

Dr Dean’s Personal Finance Course

I have been working over the past couple of months on an online course.  The course will teach basic personal finance to nurses.  (not limited to nurses, per se-but directed at my target audience.  Anyone watching Scrubs, NCIS, or CSI probably understands enough medical lingo to get my jokes and medical references….)

The course will consist of video’s, expert interviews, work-sheets, and action plans, along with a forum for interaction with me and course participants.

1960's Classroom, photo from Cushing Library-Texas A&M

What are your concerns in personal finance?

What do you consider BASIC personal finance?

Here is an outline of what I am covering.  I want to get input from my readers- both nurses and non-nurses. And if you are in the personal finance blogging world, I would appreciate your input.

Areas of Personal Finance Included:

Theory of Personal Finance

  • Relationship with money-why do you have trouble being successful? Do you sabotage yourself sub-consciously?
  • Goal setting-why it is so important.
  • Planned spending-why every dollar you make needs a pre-planned place to go. A place that will advance your goals.
  • Money-what is it, and how your finances relate to the US, and world economy.
  • Investing-outside of  a formal retirement plan-when and how to.
  • Frugality-lifestyle management

Mechanics of Personal Finance

  • Planned Spending-How to do it.  Pencil and paper,  spreadsheets, money management software, and online choices all explained.
  • Banking-Savings/Checking, Online or Bricks and Mortar?  How to automate your money  management-to make it less burdensome to succeed.
  • Taxes-How to decide your withholding, and common tax mistakes.  Do-it-yourself, or professional help?
  • Retirement savings-The intricacies of 403b or 401k retirement plans.
  • Retirement savings part two-Saving for retirement outside work-IRA’s, both Roth and Traditional.
  • Credit Cards-Yes or No, how to resolve credit card debt.
  • Investing-How to set up a brokerage account, and what to do with it.

Income

  • How to improve your income
  • Other income streams

Debt

  • Good vs bad debt
  • How to decrease/eliminate debt
  • Student loans

Support areas of personal finance:

  • Insurance: Life, health, liability, auto, and homeowners. How to decide the when, what and where.
  • Housing-rent or buy, financing, selling, and making a good purchase.
  • End of life-Will’s and Durable Power of Attorney for Health-care.

This outline covers the important basics of personal finance-my areas of focus.

Reader Questions:

  1. What would motivate you to take such a course?
  2. What are your personal finance concerns, or areas of interest?
  3. What is the area that most concerns you, or you think need the most emphasis?
  4. What mistakes did you make, and wish you had been taught  earlier in your life?

Let’s get a dialogue going-help me help others- before their finances need a “Code Red!“

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Posted in Personal Finance 101 | 8 Comments »

Gold-Is it Time To Buy? Or Time To Sell?

August 23rd, 2010

Gold Investing

Gold, is it the best investment since Wal-Mart or McDonalds debuted- many years ago, and since made many investors wealthy?

Columbian Gold Figurine-photo by Casver CC

Or is gold, truly fool’s gold, only worthy of a Gold Bug’s time and study?

In this WSJ Blog article, James Altucher, writes about gold’s two century-long lack of investment growth- a miserly 1%-even counting it’s go-go growth the last few years.

What do I say to those who brag about Gold tripling in value over the past 5 years or so.  I say,”So what!”

Internet stocks hit the stratosphere in the late 1990′s.  Housing was growing 15-25 % in some parts of the country a few short years ago. And my personal favorite- beach property in Florida-where your’s truly has lost a bundle.At their heyday all three seemed to be no-brainer investments.

That is the nature of bubbles.  And my personal best barometer, is “When Dr Dean start’s to think about an investment, it is probably at it’s bubble-licious peak!

Internet Stock Bubble

Think about it.  When the internet  investment bubble was near it’s high, I saw a nurse anesthetist- who didn’t know  a P/E ratio from a vial of Narcan-poring over the Wall Street Journal.    With her  broker holding breathlessly on the other end of the phone, waiting,  for her latest pick.  She no longer reads the WSJ….

Housing Bubble

Another acquaintance in another part of the country, has had several foreclosures, on his flipping flops in the housing market.

Beach Property Bubble

And finally, there is yours truly, who is still holding beach property, at 25% of its former bargain price,(so I thought!)  Just when I thought the market might be turning, BP had to turn loose a couple billion gallons of oil on my beloved Gulf Coast!  Saying it’s like throwing gas on the fire (sale) would just be too easy!!!

Calling Market Tops

Years ago, there was a saying on Wall Street-called the Business Week Sign-if an area of investing was featured in Business Week-it was probably at it’s top!

That is just one more sign of the herd mentality.  It is emotionally more satisfying to follow others, than to make a decision all our own, based on facts as we can determine them.

So based on the “Dr Dean’s Investing Forecast” I have been more and more tempted to buy gold recently-probably a sure sign it is close to its top-buyer beware…..

Or. is this recognition of my failings,  a sign that I am becoming more mature-Nahhhhhh!

What say you, Gold Bug, or Gold Bear?  Or do you care??????

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Posted in Wealth building | 8 Comments »

The Right Time To Start YOUR Own Business?

August 22nd, 2010

Guest Post By FDL:

IS THIS THE RIGHT TIME-TO START YOUR OWN BUSINESS?

Are you looking for an opportunity because?

  • You’ve been laid off.
  • You’re bored.
  • A great idea has been nagging at you.
  • You’re an entrepreneur at heart?

If you are any or all of those things you are not alone.  In my day job I talk to people who fit into those categories-myself included.

Not a day goes by I don’t discuss some of those things in my head.   The economy has us all worried.  Looking at the news, you can find people who think things are getting better and just as many who don’t think so, the sky is falling.

In recent news stories I read two particularly interesting articles about ideas that are working.

Buying a failing business

If you’ve looked around for a new sofa in the last decade, chances are you’ve heard of Norwalk.  They make super nice custom furniture.  I never executed, but I did drool over the idea.

A group of local investors in Norwalk, Ohio bought a portion of the famed company shortly before what was left slid into bankruptcy.   These investors trimmed fat and excesses, changing all but the fine, custom product that made the company an industry elite.  Changing the business model to meet the times saved the brand, jobs and may eventually make a profit for the investors.

Staying nimble, to survive!

Or look closer to home at your local book store.  If you have one anymore.  As a big reader I check out bookstores and libraries where ever I am.  Using Amazon for most of my online book purchases, since they are so user friendly and have terrific prices, I at one time wondered how the local book retailer stayed in business.

Those who did not respond to the online call probably have not.  Who else but the local bookstore owner supplies all those ‘used and new’ books for the Amazon giant?

In case my point is cloudy, like my brain:

DO YOU HAVE A GREAT IDEA?

If your idea does not fly, it won’t be because of the economy.  It will be because you did not develop the idea with a business model that can adapt to the current market.  Even Gap, a business that has weathered many economies, has to stay light on their feet.

Push forward.  Take that plan, hammer out the details, plug in the holes, start small, be ready to adapt, the list goes on, but you get the idea.

See you again soon,

FDL

FDL writes about clutter, and organization-check out her blog, the Fast Declutter Blog

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Posted in Quality of Life | 2 Comments »

HOW SMART, IS A SMART-PHONE?

August 20th, 2010

guest post by fdl

HOW SMART IS A SMART PHONE?

FINANCIALLY SPEAKING, OF COURSE

How do you make such life altering decisions?

  • Do you decide how much it will cost per month and evaluate how much easier your life would be if you had all those cool features?
  • Do you walk into a local electronic shop, fall to your knees and say, “Make my day, damn the cost’?
  • Do you decide to take the leap because your phone is at the end of its contract and you have to make a change anyway?  You’ve upgraded every other time your contract ended, paying more each time.  Why not now?
  • Do you need to get the latest in electronic devices-always.

Here I am, still undecided.  How much do they really cost per month?  According to a 2009 article by Mark Sullivan in PC World, the Apple iPhone is top of the line expensive.   The veteran writer examined the two year cost, the average contract length for a wireless device, of eight of the most popular Smartphone’s.

Using a chart, he gives the monthly charge plus the total cost over a two year period of these popular Smartphones.  Interestingly, all the phones come in at around $3,800 over the two years or monthly for around $150.  Two of the phones were less expensive.  The HTC-61 and the Palm-pre come out a bit cheaper overall.

Would I be cool or just a fool?

But, honestly, do you need this extra expense?   Will it really make your day better?  Will it save valuable time?  No doubt you’ll look totally cool.   Picture it.  There you are.  Sitting on the train, or at your desk, or in the break room, glassy eyed, staring into your palm where rests a tiny gadget delivering awesome information.

I know someone who doesn’t even have an email address or ever surfs the web-but that little Smartphone trinket soaks him for $150 bucks a month.  I know someone else who uses his Smartphone constantly. He checks his numerous emails, tweets, phones business associates, utilizes the GPS feature and generally ‘stays connected’.  It costs him the same $150 bucks a month, minimum.

So, where would you or I fall in our use of this terrific little money sponge?  Come on, do you really need that extra expense?

I Don’t Need A Smart-phone

All this discussion and my previous research on the topic convinced me that at this time, I am paying enough for my cell service.  I don’t need continuous internet, or GPS, or…well the list goes on.  I would look so cool staring intently into my hand, fingers curled, eyes glazed over, not hearing anything going on around me.

But, that will just have to be later on, like next year, when my ship comes in and I have money to throw away.

Not now.

Stay cool,

FDL

FDL writes about clutter and organization at The Fast DECLUTTER Blog

What are your thoughts-are any of you still in the dark ages with just a cell phone?

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Posted in personal finance | 7 Comments »

Catch-Up Contributions: A Little Help For Graying Nurses-and Nurse Shawna!

August 17th, 2010

Nurses Over 50

Last week, we introduced Nurse Shawna.  She and her husband have been neglecting their retirement plans, while getting their kids educated, and maybe letting their lifestyle creep ahead of their income.  A common story for many.  Baaaaad Nurse!!

Help is on the way!  Because even our Congress, with its 11% approval rating, saw the sagging retirement efforts of many, passed a bill several years ago allowing “catch-up” contributions.    This will greatly help Shawna, but before we go into those details,  let’s discuss a little background info.

Washington Spending and the Graying of Nursing

Are you a little frightened right now by what is going on in Washington?  The amount of spending in Washington is scary.

Nobody knows the implications it will have for our  country’s future.  Even the most sanguine of economist’s admit, this is uncertain territory.

In past times,  this type massive government spending-such as after the Great-Depression, the average age of our county was much younger.

How much younger?  Less than 7% of the population  was over 65 in 1930.  Now 43 % of households are over 50 yrs of age.

The percent of the public debt vs Gross domestic product is at a level not seen since 1950, and according to the Congressional Budget Office,  the percent of public debt/GDP is expected to continue to rise over the next 10 years.

Aging Population

What does the aging of our population mean.  To me it means it will be ever more difficult for the country to grow itself out of this deficit.  And, I am an eternal optimist, glass half-full kind ‘uv a guy!

“What does this have to do with nurses over 50?” you might ask.  “Why- saving for retirement of course!!!”  The feds will be out of money, unless they print too much.   Then with inflation, the money we have will be worth much less!  The implications for Social Security are obvious to all! You can’t depend on it!

Nurses are aging too!

photo by kalacaw

Aging well, of course, but aging nonetheless.

Nurses are aging along with the population-with the 2008 National Survey on Nurses by the feds showing over 45% of nurses over 50!

Because of all of these demographic factors, the federal government has seen the need to help older workers put more retirement money away!

Catch Up Contribution Provisions

This assistance is known as Catch-Up provisions- no, not catsup…

Normally the amount of money you can put away in various retirement accounts is capped.  Many of you may not realize it, cause you aren’t even coming close to the limits now.  But these tax advantaged retirement accounts, such as your 403b at work, or IRA’s, while generous, have a limit.

Again, you may not realize it because you have never approached the cap, if you are saving at all.

But we are going to change that-areeeeeent we?????  And if you want your retirement to be more fun than watching Oprah re-runs, then you need to get started increasing your retirement savings.  Maybe start slowly, so it doesn’t hurt as much.  Increasing your pre-tax deposits in your 403b a percent or so more at the time.

Here is a brief list of  the extra income you can deposit in your various retirement accounts:

  • 403b, 401k: $5,500 extra per year over your already generous limits. (most don’t hit the limits!)
  • IRA (traditional and Roth): $1,000 over your normal limit of $5,000

Now remember, these are per person, so if you are married, and your spouse is over the age of 50 as well, you can potentially put an extra $12,000 per year.

Nurse Shawna’s retirement savings dilemma:

What can Shawna and her husband do, to get back on track to the comfortable retirement they had been dreaming about.  What are her goals, “To buy a second home near their oldest daughter.”  ” To be able to travel, and see the country.”

We aren’t rich, we don’t need the Ritz- we can enjoy a Holiday Inn Express, as long as we have each other and our kids to enjoy!”  ” I just don’t want to be still on the floor, with nurses calling in sick, when I am 75 using my walker to get around!”

Nurse Shawna’s financial to-do list!

To use the “catch up” provisions to increase her 403b deposit to the max.  Her 403b adviser can walk her through the tax minefield regarding income limits.  Now remember she had an extra $1,000/month of cash flow freed up with her last child finishing school.  With the tax advantages of 403b deposits being made “pre-tax” she will actually be able to put ~$1200 extra per month into her retirement savings.  If she hits that 403b limit, then the extra can be placed in an IRA.

This will also max her out on the 3% match from her employer- adding additional monies, that she was missing out on.

She and her husband have looked over their lifestyle creep, and found many ways to save money and try to add to their savings.  This includes selling a bass boat he no longer uses.  They have dropped memberships, magazine subscriptions, and had a big yard sale to get rid of the stuff the kids left behind.

They are beginning to pay attention to the small and large ways they spend money.  They are also considering downsizing their home, so they can build up the savings to buy that second home in the next 10-15 years.

Limits on preferential taxed savings:

Now the limits on how much can be deposited in 403b’s, and the income limits on tax deduct-ability of IRA’s, is complicated.  I will attach an article for your reference.

Buy my CPA consultant, who is also a Certified Financial Planner, has advised me on writing this article, and his advice was:

“This is one of the most complicated areas of tax law.  The amount of money you can set aside in these programs is strictly enforced by the IRS, and there are penalties and interests if you get it wrong.  I highly recommend- if you are trying to hit these upper limits- to obtain the advice of a tax professional!”

Don’t let that precaution,-give you an excuse to slow your savings, however.  Just keep in mind, just as you have professional knowledge and your advice can save your patient’s life, or improve their health; it is equally important to use financial professionals for financial advice!

You over 50′s out there!  What say you?

Have you increased your retirement withdrawals at work, or in your IRA?  If not,  what are you waiting on?  Help from the gov’ment????  I wouldn’t hold my breath….

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Posted in Retirement savings | 1 Comment »

BACK TO SCHOOL-SAVING MONEY,DORM DECOR, AND TIPS GALORE

August 15th, 2010

Back To School

My youngest nephew, and namesake, Kenneth is going off to college next week.  The last of my nieces and nephews to take that step.  I wish him the best.  His Mom is sweating the delivery of many back-to-school items.  Hope they make it.  But I think he will live, either way.  Our young people can do much more for themselves than we give them credit.  We just have to step back and let them!

photo by avolore

In honor of going back to college, or any other school, I will link recent posts  with tips, and suggestions for the young and young at heart-going back to school.  And for the parents paying the bills-good luck.

Back To School Reads-Personal Finance Tips

Austin at Foreigner’s Finances-has conveniently listed his “going back to school posts in one place.  And he didn’t even know my plan for today…..Thanks Austin!

Single Guy Money, has a post on Dorm Room Decorating-much different than when I was in college-back in the dark ages…

Rainy Day Saver has this post about saving on back to school purchases-check it out-relates to all school ages, not just college.

Fill The Backpack is a contest/giveaway with great back to school prizes.  Check it out!

Jacob at Early Retirement Extreme has a guest post about becoming financially independent by age 35.  If a parent doesn’t want this for their kids, I will be shocked.  If we could pour in the wisdom of those who have made as many mistakes with their money, as you and I-these young people’s lives could be so much more productive and less stressed!

The Mighty Bargain Hunter has written about Swagbucks, and back to school-don’t know much about Swagbucks, but they seem to be popular….

Jason at One Money Design writes this  list of back to school shopping tips… Check it out.

20s Money, has this post about earning money and part-time jobs for those in school! Better hope your Dad doesn’t read this Kenneth!

My Financial Objectives has a two part series about working through college-this is the first one!  Find part two here!

At Money Help For Christians, Craig has written about the fallacy of student loan debt being one of your college course requirements-see what YOU think!

Len Penzo has written a controversial post about the value of private schools-check it out and let him no your opinion.  Believe me, he can take a punch-but be ready for the counter!

Fiscal Fizzle has written about the pros and cons of working during high school, what say you, readers?

Money Crashers has written  a list of back-to-school things to not forget-lists are good!

Tom at Canadian Finance Blog has this back to school list for your review.  When does school start in Canada?

And, this post from Sam at The Financial Samaurai, about the numbers of young versus old workers.

The Saved Quarter has this post about borrowing money to go back to school.

Living Rich With Coupons has this back to school giveaway-today and tomorrow are the entry deadlines for many! So don’t procrastinate.

Darwins Finance writes about For Profit College scams-before you enroll, read this!

My recent guest post about Back to School Meals and Obesity!

Nurses Going Back to School:

For Nurses going back to school, check out this list of 100 blog posts for nurses considering continuing their education.

Back to School Best Wishes:

Best of Luck for all those going back to school, or the parents of those dealing with empty nests.

For a Gallup poll about students in grades 5-12-whether they are Hopeful, Engaged, and Thriving-check it out, and let me know what you think.  It sounds as if the students in our country, don’t have quite the doom and gloom attitude of their parents!

It ain’t so bad-give it a week or two-you will enjoy getting to know your spouse again!

And Kenneth, make sure you call your Mom occasionally!

Reader Comments:

Let me know your back to school questions or comments, or your stories about back to school.

Thanks to these sites and carnivals for mentions of The Millionaire Nurse Blog

The Bucksome Boomer week in Sports Review!

Elle @ Couple Money, with this weeks Yakezie Carnival

Personal Finance by the Book-‘preciate it Joe

Len Penzo’s Black Coffee series

Simple Financial Lifestyle, has his PGA roundup!

If I have missed any, please let me know, and I will link back.

Thanks to all!

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Posted in Personal Finance 101 | 7 Comments »

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