You always spend more on vacation

A major component that I look at when putting together a retirement plan is how my clients are living their life. I like to know not only what their fixed expenses are, but also what they spend on vacations, charitable gifting, personal care, pets, kids, and all of the little things that make up our lives. Retiring is like a long vacation, and you always spend more on vacation. So how do you prepare?

We like to start 2-3 years before you plan to retire by looking at the total expense figure plus tax and inflation. While inflation has been downplayed by the government over the last few years, I never ignore it. We like to take this budget and review it annually just as we do with the investment mix to make sure you are not falling off the track. Budgets are just as important in retirement as they are prior to retirement. You should not be surprised if you blow your budget in the first year of retirement. Most clients do.

By scheduling regular review and update appointments, we can keep close track of not only your investment portfolio but how well you are doing with your retirement budget. Knowledge is power. Knowing where your cash is going will give you the freedom to occasionally blow the budget in retirement.

 

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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.

I am an Audi girl. I love the look of the car, the drive, and how safe it is.

What I don’t love is having to use premium gas. I get gas every Sunday at the same station because I want to track the prices. I could not believe that last Sunday the price per gallon was up 10 cents. Every other week the price has been creeping up at about 4 cents a gallon. So what’s a girl to do?

I try to never let my tank go below half full. By doing this, I will not faint next to the pump when I fill up and embarrass myself. Here are a few more tips for saving at the pump:
Keep your tires properly inflated. This is the easiest fix to increasing your gas mileage.
Remove heavy items from your trunk. Excess weight in the car can increase drag and increase gas consumption.
Drive the speed limit. Constant stopping and starting could cost an additional 15-28 cents per gallon.

So have fun out there and be safe. Happy driving.