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Category Archives: investing
How much company stock should I keep in my 401k?
It may be tempting to buy or keep a large percentage of company stock in your 401k. After all, you company is successful, right? We believe in diversification, so I do not feel comfortable if more than 10% of any holding is in your portfolio, maybe less for your company stock. Let’s look at a couple of things;
Your income is dependent on that company.
Your benefits are dependent on that company.
You can control how much of your retirement savings is dependent on that company.
Some planners might say that due to the points I have just made, you should not put any of your 401k savings into your company stock
Very few things in a marriage are 50-50
We just attended the first of the summer weddings we have been invited to. She is a new Doctor, he is a new Attorney. They should be on the road to financial security – after paying back the student loans. Here are a few more tips for newlyweds.
Keep credit cards separate:
If one spouse has good credit and the other not so good, one could drag the other down in the credit score game if you make your credit cards joint. It is not necessary to make your spouse joint on your cards.
Don’t split your costs 50-50:
Money is often power. This is very true in marriages. Splitting household expenses can breed resentment when one spouse makes a lot more money than the other. It may also create a sense that the person who pays more has more say in how money is spent.
Talk about spending:
Even after you have reviewed your finances, you need to find out how your spending habits match up. Beyond how much someone spends, there is a potential conflict as what you see as a must-have. You need to work on managing your differences that will lead to a long and happy union.
DO NO USE YOUR PERSONAL EMAIL ADDRESS WHILE ON VACATION!
Yesterday I received an email request from a client asking for money. This is not an unusual request, what got my attention was the amount and where the funds were to be sent. I called the client and found out the request was not from her. I asked if she had been on vacation recently and checked her email, she said yes.
This is the fourth client that has checked their email while on vacation and I have then received a request for money. Do not do this! You are logging into a public, unprotected network. You have no idea who is sitting next to you with equipment that can capture your screen, your clicks, your login, or passwords.
You can go to any number of email sites and set- up a separate email address that you can use while on vacation. Use that vacation email address for that trip only, shut it down when you get home, then establish another one for your next trip.
I have had my identity stolen twice; there is a lot that needs to be done after the fact to protect yourself and to regain a sense of peace. Be proactive, set up a temporary email before you travel
A Memorial Day message.
A veteran is someone who, at one point in his life, wrote a blank check payable to
“The United States of America” for an amount “up to and including his life.”
That is honor. There are too many people in this country who no longer understand this.
God Bless Our Veterans.
Some tips before you go skipping down the aisle.
We will be attending two weddings in June; one couple is in their early 20’s, the other in their late 20’s. Here are a few tips for these couples and anyone getting ready to take this wonderful plunge.
Discuss your financial goals.
A huge part of being on the same page is having an open discussion about major life goals and financial commitments. Discuss short-term goals, such as paying off debt or buying a car, and long-term goals such as buying a house.
Budget your spending.
Failing to create and stick to a mutually agreed upon budget can lead to many problems. It can be as simple as listing your monthly income then adding your expenses and mutually deciding what to do with surplus.
Treat your money as our money.
This is your spouse, not your roommate. Keeping separate banks accounts and “chipping in” for expenses is one sure way to breed financial strife. A household account should be established so both spouses know where the money is going.
So skip down that aisle knowing that you have put your best financial foot forward.
I have some credit card debt that I would like to pay off. Should I suspend my 401k contributions to do this?
I admire your desire to pay off your indebtedness; however, you should continue to make your 401k contributions. Typically, company matching boosts your yield on the contributions up as much as 50%. Even though you are paying interest on the credit card, you can’t afford to pass up that match.
You may want to reduce what you are contributing to your 401k until the debt is paid off then do not charge more than you can pay when you receive the bill.
After the debt is paid, please increase your 401k contribution to what is was before.
The Sibling Sinkhole
Most of us are familiar with, or are even living, the “sandwich generation”. We fully expect to take care of our kids and realize as our parents age they may also need our help. But did you ever think you might have to add taking care of your sibling to the mix?
A number of my clients have been sharing stories about how a Brother or Sister has fallen on hard times and they have to step in and help. There are many circumstances that cannot be foreseen, some that we have seen our whole lives that may put us in the position of having to help. Clear rules, boundaries, and limitations need to come with the help if any type of relationship is to be maintained after the need passes.
If your Sib needs housing, try to put a time limit to the use of your guest bedroom. If the need is money, drawing up a repayment contract might not be a bad idea. You have to put on a business face as well as the compassionate face of a Sibling in order to keep the peace for years to come.
I am going to refinance my mortgage, is PMI necessary?
A:
Depending on the current value of your home vs. the mortgage, PMI may be necessary. Generally, if the mortgage is greater than 80% of the value, PMI will be required.
Q:
How can I open a 529 account but not have it count against my child if he wants to apply for scholarships?
A: If the owner of the 529 account is your Parents, a sibling, or a trusted friend with your child as the beneficiary, then it will not have to be reported.