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Life can be interesting. When things happen in our lives, we see them one way, but God sees them in a totally different light.
One example of this can be our children. For many of us, our children were "accidents," or unplanned. Yet, they were part of God's plan from the beginning. Each of us has been designed by God with a purpose.
This is not to say that we don't love our children dearly. My daughter is the best thing that ever happened to me. But we do need to look carefully at how we...
•How To Decide When to Start Drawing Social Security Income
The rumors that Social Security is going to run out of money are uncomfortable. No one wants to believe that, after years and years of seeing deductions come out of our gross paychecks, there will not be enough money left for our retirement.
When our annual Social Security benefit reports come in the mail, there are three estimated monthly payments provided. The first is the amount we can expect to receive if we retire "early" at age 62. The second shows our monthly payment at the "normal...
•Tips to Save Up Enough to Retire
With so much uncertainty about where the future is headed, how do we figure out how much money to have saved up so that it will last us for the rest of our lives?
Few of us know what that magic nest egg number should be. Even fewer have tried to calculate what the number should be.
Hiding our heads in the sand is the worst approach to take. Let's look at some of the biggest issues we should consider to determine if we are saving enough.
Current vs. future expenses
The first question to...
•Know the Source of Your Financial Success
We can learn a lot from Abram. He knew the source of his strength, provision, and livelihood. He knew that he was nothing, and could do nothing, without God. Abram also served as a living testimony to unbelievers. He made sure that the king of Sodom saw his faith in God. Abram wanted others to see God work in his life so that maybe they, too, would turn to God.
Let's look at three men that God used to show believers and unbelievers that He is the ultimate source.
Joshua leads the fall...
•Take Back What the Devil Stole from Us
Early chapters of the book of Genesis describe Lot and his family being kidnapped by conquering kings. When Abram got word about what happened, he and his men planned to attack the conquerors at night. They successfully brought back Lot and his family.
Genesis 14:16 reminds us to be alert and prepared to fight the enemy. We have to be aggressive, rather than passive, on a daily basis. We have to take back what the devil stole from us. In order to take things back, or to avoid them being...
•How to Review Factors that Affect Our Credit Score
Our credit score is basically the bureau's idea of our ability to repay our debt obligations. It is highly affected by several factors.
Credit history
Our credit history is the biggest determinant. If we have a poor track record of paying bills or paying them on time, a new creditor is less likely to want to take that chance with us.
Debt to credit ratio
Our debt to credit ratio is also a big factor. If we are close to our maximum limits with most or all of our accounts, a new creditor...
•Tithing to God Is the Least We Can Do
Abram knew God and His promises. He had experienced God's presence and His deliverance. Abram knew that, without God, he had nothing. Giving God a tenth is a small act of appreciation in comparison to what God gives us every day in return.
There may be times where we don't feel God as much as we might like. That doesn't mean that He is not there. Remember, God never changes. We are the ones that turn away from Him. God promises to be with us when we turn back to Him. In Malachi 3:7,...
•Tips to Handle Your Financial Struggles God's Way
Economic times like these can be hard. Just as the people of Sodom and Gomorrah got swept up by the enemy in Genesis 14:11-12, we have also been caught in a storm. Recessions and financial struggles have hurt thousands of families. There have been so many job losses and foreclosures around us that it is hard not to wonder what might happen next.
2 Chronicles 20 shares an excellent example of how God expects us to approach the battles that come into our lives. It is a wonderful...
•How to Use Compound Interest for Major Purchases
Let's see how compound interest can affect our major purchases. We like to buy new things - new gadgets, new items for the house, and new cars. Sometimes we want them so badly that we find ourselves willing to do whatever it takes to get them. This may even include paying an outrageous interest rate when we don't have the cash.
Marketing executives, sales associates and stores that we frequent know this and often take advantage of it. However, when we look at it in perspective, we may...
•Simple Changes to Food Habits Can Save Big Money
I completely understand what it feels like to work all day and not want to go home and cook. But fast food is not the answer. Not only is it a nutritional no-no, but it also leads us into a financial hole. Let's look at this more thoroughly.
Fast food
To keep it simple, let's assume that we went to our favorite fast food spot and purchased meals for the whole family. Whether an adult meal or a kid's meal, we will assume that they cost $5.00 each. With five family members, we are talking...
•Beware of Credit Counseling Companies
Choosing to pay off debt quickly and inexpensively is not bad in itself. Consolidating bills into one payment with a lower interest rate can be a good thing.
Many of us may feel that we are unable to get the excessive debt under control on our own. We may choose to use a credit counseling agency or a debt consolidation company to help us handle this stressful situation.
However, not all credit counseling and debt consolidation companies have our best interests at heart. It is important to...
•Emergency Funds Help with Life's Surprises
We can get so caught up with paying bills and trying to enjoy life that we forget to plan ahead for the little things. Life is full of surprises, and we need to be ready for them. When it comes to our finances, we should always have an emergency fund available.
Think of the end goal
Our ultimate goal should be having at least three to six months' living expenses readily available. We do this so that we can provide for our families in the event that something tragic happens or if we find...
•Another Option for Getting Long Term Care
Many Americans are worried about how healthcare reform will ultimately impact them. As we age, the potential for needing long term care becomes more and more of a concern.
The biggest reason many people do not purchase long term care insurance is because they don't want to pay for it and never use it. However, just like every other insurance product, it is better to have it than to realize later that we actually would have benefited from it.
There are products available, though, that allow...
•Ways to Enhance Retirement Income
While combination life insurance-long term care products can reduce the expense of long term care insurance, that alone may not be enough to feel comfortable with the retirement income that we have available.
The market volatility has had a severe impact on many retirees. With account values dropping so rapidly, it makes it difficult to rebuild the value of the nest egg. Retirees also find it challenging to maintain a consistent monthly draw from their retirement nest eggs for fear of...
•How Can Healthcare Reform Impact Me?
? Some aspects of the healthcare reform have already taken effect, while others are being phased in over several years. Nevertheless, most Americans will be impacted by the changes.
Today, we will look at several of the changes that are on the horizon. Each household should consider how these changes may impact them so that they can plan ahead against any potential negative result.
Extended coverage for children
Insurance providers must continue to cover children to age 26. They also...
•What Criteria Should I Look For When Choosing Mutual Funds?
? With so much market volatility, it can be difficult to determine the best investments to use in a 401(k) account or IRA. With such a limited selection, what should we do when they are all going down?
Our immediate emotional response would be to move to the sidelines - a cash or money market account. We can rationalize that it is better to not make anything than to see a loss. However, that is a form of market timing, and it does not work for long term investing. Most investors miss the...
•How Can I Withdraw from My IRA without Penalty?
? Times are tough for many of us. There may be times where we find that we need additional cash and there are few options that remain. While we understand that our 401(k)s and IRAs are designed for creating retirement income, these accounts may be the only source of a sizable amount of cash.
We should consider that withdrawals from a tax-deferred account before the age of 59 ½ are subject to both ordinary income tax as well as a 10% early withdrawal penalty. For individuals in...
•Questions to Ask Before Buying an Annuity
Investors have been bombarded over the years with invitations to dinner presentations that promise to share the solution to every retiree's investment problems and concerns. More often than not, the solution usually involves the purchase of an annuity.
This is not to say that annuities do not serve a purpose. They can be a valuable and beneficial investment choice for many reasons. However, they are not a one-size-fits-all type of product, and they should not be advertised as such.
The...
•Teach Children Solid Money Management Skills
One of our main roles as parents is that of an educator. While there are many things that we allow our children to learn about at school, we know that money management is not a priority at most schools around the country.
With that in mind, it is important that we play an active role in helping our children develop the skills that they will need to be financially sound adults. This is not a skill that can be learned overnight, so it is imperative that we start to apply these principles to...
•Three Reasons to Roll Your 401(k) Money to an IRA
Three Reasons to Roll Your 401(k) Money to an IRA This market volatility can be pretty unsettling, especially if retirement is in the very near future. It's even harder to have to review those monthly or quarterly account statements and not have anyone to turn to for advice.
The government has temporarily ruled that employees cannot be advised by advisors who represent the custodians of their 401(k) plans. There is a concern that employees will not be getting unbiased advice.
Employees...
•When Volatility Comes, It's Time for a Review
With the major shift we've seen in the economy over the past few years, everyone is a bit nervous about the state of their finances. The housing industry has definitely made America uncomfortable. Foreclosures are still happening. Companies are still letting employees go. Many people are finding themselves unprepared for unexpected retirements.
Other companies are going out of business or filing for bankruptcy protection. Lending guidelines have tightened so much that even people with...
•Ways to Get Your Finances under Control
Since debt does not happen overnight, we cannot expect to get out of debt overnight. However, we need to learn some simple skills that can help us get our finances under control before they end up controlling us.
A budget is simply a plan for our finances. It is a guide upon which we base many of our financial decisions. If we were to build a house, we would not start without first figuring out what we want the house to look like. Then, we would create the blueprints that outline the...
•Get Ready for a Long Retirement
My daughter has a birthday coming and she can't be more excited. She is so ready to be another year older.
Although I enjoy my birthdays, I can't say that I really look forward to getting older. But no matter how old I get, my older relatives will still make light of my age. They tell me that "50 is the new 30."
I used to think that they were being funny, but it's unbelievable how true that statement really is. If we look at how life expectancy has changed over the years, it's not hard...
•Are You Prepared for a Forced Retirement?
? I came across a survey sponsored by Sun Life Financial that really raised some concerns about retirement planning.
Sun Life Financial interviewed a group of people who retired involuntarily. The survey results were overwhelming.
Approximately one in five of the retirees interviewed were forced into retirement well before the age that they had anticipated retiring. The average retiree left the workforce eight years early.
The two main causes of the early retirement were 1) layoffs or...
•5 Reasons Your Children May Need Life Insurance
We understand the importance of adults having life insurance at each stage of their lives, but there is much debate about whether children should have life insurance. There are some advantages to getting life insurance coverage for children, but each family must assess their own situations individually to see if it makes sense for their households. We will look at five reasons to consider life insurance coverage for our children.
Rates are lower
Since life insurance premiums are calculated...
•Understand What Type of Life Insurance to Get
We know that life insurance is an important purchase for adults. It can also be beneficial for children. However, deciding what kind of life insurance to buy is challenging. There are many different types of policies available. We should understand the advantages of each type so that we can make the best choice for our families.
Term insurance
A term policy will only provide a death benefit for a specific number of years. Most policy terms range from 5 years to 30 years. Since these...
•Three Tips for a Better Retirement Account
With all of the market volatility, it's hard to watch our account balances fluctuate so much. Very few products offer protection against the market's downside like indexed annuities and indexed universal life insurance policies.
Many of us are unsure about opening and reviewing our retirement account statements. Sure, the worst appears to be over, but it's still hard to tell if we're going to see a gain or a loss on any given statement.
Hiding our heads in the sand, though, is definitely...
•What are the Benefits of Owning an Indexed Universal Life Policy?
? There are many different types of permanent life insurance policies. Each type has its own benefits. Indexed universal life policies are the newest type of permanent policy. Many people are still unfamiliar with some of the advantages that these policies have to offer. Today, we will look at four benefits to owning an indexed universal life insurance policy.
We don't have to invest in the stock market
When investing in an indexed universal life policy, the cash value portion of the...
•How to Pick a Permanent Life Insurance Policy
We purchase life insurance based on specific needs. Some needs can be covered by term. Other needs can last a lifetime and require that we purchase a permanent policy. With so many different types of policies to choose from, the decision can get overwhelming. Reviewing the various types of permanent policies will help us to choose a policy that best meets the needs of our families.
Whole life insurance
When purchasing a whole life insurance policy, our premium payments are fixed. The...
•The Credit CARD Act Impacts Consumers
Many of us have recently noticed some changes with our credit cards. In an effort to protect consumers, the credit card industry has been forced to change.
We saw how credit card cash advances and advance tax refunds can bring money problems to households. Fortunately, some of the changes coming with the CARD Act will help consumers avoid problems that can lead to serious and long term financial trouble. On the other hand, creditors are finding new and creative ways to remain profitable....
•Two Money Problems to Avoid
There are many financial decisions that we can make that can cause serious damage to many households. Today, we will look at two of those money problems: credit card cash advances and advance tax refunds.
Credit card cash advances
This money problem was a nightmare for me personally. I remember the first time that I found out that credit cardholders could pull cash off of their credit cards. At that time, there were still quite a few retailers that did not accept credit cards, so I...
•Do I Really Need Life Insurance?
? When the stock market began going through its challenging times, many of us put our heads in the sand. There is another financial area that is often neglected but just as important - life insurance. Today, we will consider some benefits that life insurance can offer us at different stages of our lives.
Single adults
For the most part, single adults do not need to have large life insurance policies. The biggest concern is making sure that final expenses are covered so that surviving...
•Are There Benefits to Owning a Fixed Annuity?
? The popularity of annuities has gone through many cycles. There have been times when annuities have had a good reputation, and there have been times when annuities have been held in a bad light. Just as mutual funds have fees that we should watch, annuities have to be carefully considered because of their higher fees.
While many "senior" seminars have touted annuities as a solution to almost every problem, they really are not a "one size fits all" kind of product. The challenge for...
•How Can I Get My Retirement Account Back on Track?
? The current economic times have brought many changes in the financial industry. The new rules of the Credit CARD Act are leading creditors to find creative ways to remain profitable.
But many consumers have not been profitable when it comes to their investment accounts. The stock market drop of 2008 sent many investors to the sidelines with the much smaller remaining balances of their retirement accounts.
While many investors slowly started to inch their way back into the market in 2009,...
•Family Requires a Joint Effort
Families have been designed to work together. This is illustrated wonderfully in 1 Corinthians 12:12-26. As a family body, each person is a special, unique, and equally valuable part. The body, as a whole, cannot function without the efforts of each person.
More specifically, husbands and wives need to be sure that they are working together for the family's best interest. Philippians 2:4 reads, "Each of you should look not only to your own interests, but also to the interests of others."...
•Poor Recordkeeping Leads to Trouble
There are many challenges that we face when dealing with creating and staying on a budget. One of the most common mistakes that I hear about most often from my clients who are learning how to stay on a budget is not keeping good records.
This is especially the case with spouses and joint checking or savings accounts. Joint accounts tend to have a greater number of problems because there is more than one person accessing the account. Joint accounts require much more communication between...
•Why Do Mutual Funds Charge 12b-1 Fees?
? While poor recordkeeping may lead us into trouble, poor disclosure habits may mean that we see some changes in the investment world. Regulators are taking a closer look at the fees that investors pay. The fee that is getting a lot of attention now is known as a 12b-1 fee.
What is a 12b-1 fee?
The Securities and Exchange Commission (SEC) began allowing mutual funds to charge 12b-1 fees in 1980. The name comes from the SEC rule that authorizes the fee.
The fee was originally assessed to...
•Long Term Care Insurance can be Critical
I recently read an article that highlighted an ever-growing group of people - centenarians. The number of people who live beyond age 100 is rapidly increasing. With that in mind, I thought this would be a good time to discuss long term care insurance.
The importance of having long term care insurance cannot be emphasized enough. It has been estimated that about half of people living today will need long term care at some point in their lives. About 75% of people over the age of 65 will...
•We Need to Look Out for Family
The family of today is nothing like it used to be. The pressures of society and the economy have forced the family unit to break down. As a result, all generations are affected.
Our children are impacted
For most families, the ever-rising cost of living has created the need for a two-income household. When both parents are working, children spend less time interacting with their parents.
Many of our children have become "latchkey kids." They come home to empty houses and essentially...
•Do You Know the Kind of Advisor You Work With?
? With all of the financial troubles and retirement account mistakes that have plagued investors in this country lately, the investment industry has been debating the regulations and standards expected of financial professionals.
One major area of disagreement comes with respect to whether the standards expected of financial professionals should be identical. As it stands now, there are different expectations for brokers and advisors.
History of the standards
In the 1940s, laws were...
•Find Hope in the Midst of the Chaos
The last couple of years have been challenging. The housing industry fell apart. Credit and lending practices have tightened. Companies are laying off workers. The economy is experiencing many hurdles, and the media is debating whether or not we are on our way out of the recession.
As Christians, we are faced with the dilemma of tithing. I know what you're thinking. Granted, for many of us, this has been second nature for years. However, when things in the world get tough, even the...
•Determine Where You Want to Be
We know the importance of having a financial map. We also know that getting the map together requires asking the three big questions. After looking at where we are now, we should consider the next question: Where do we want to be?
Be free
Once we have a clear picture about where we are now, we want to figure out where we want to be. This is the fun part. We can be totally free and creative here. This is no-holds barred.
We should let our dreams loose and really think about the things...
•The Key to Getting to Where We Want to Be
After considering where we are and where we want to be, we need to determine how we will get there. You're probably expecting me to share the secret to wealth and success. I actually have it. The true secret is preparation.
Use a guide
A budget serves as our guide to helping us get to where we want to be. There are numerous ways of setting up a budget. We need to choose the one that works best for our own personal lifestyles so that we are more likely to stick with it.
Many beginners...
•Three Big Mistakes Employees Make with Retirement Accounts
Recent surveys have shown that most employees do not understand how their employer-sponsored retirement accounts work. In an age where pensions are less common and Social Security is on the verge of disappearing, employees have been forced to become more responsible for their comfort in retirement.
However, employees have not been apt to embrace this new responsibility. Today, we will look at three of the most common mistakes employees are making with their retirement accounts.
Lack of...
•Setting Up a Retirement Income Stream Is Not Easy
As retirement nears, there is more to think about than just which custodian we will use to roll over our retirement account once we leave our employer. Our retirement nest egg must not only supplement Social Security and any other streams of income we may have available, but it must also last the duration of our retirement years.
Retirement lasts a long time
Retirement has changed over the years. A period of life that used to be brief, retirement now lasts about 20 to 30 years for many...
•Get a Snapshot of Your Finances
Let's say that we want to take a short weekend vacation to San Francisco. If we were planning to drive and don't know how to get there, there is one key tool that we cannot do without: a map.
To use the map, there are two main questions that we will ask ourselves: (1) Where are we now? and (2) Where do we want to be? After answering these two questions, we can use the map to answer a third question: How will we get there? We then look at the map to find the best route to take to reach our...
•Be Careful When Using Credit Cards
Credit can be wonderful, but it is easy to abuse. It reminds me of a mousetrap. The credit card companies know all about our vulnerabilities, and they put that cheese in front of us. We think that we'll be able to grab the cheese without getting caught, but we get trapped every time.
Times of vulnerability
What is even worse is that they are getting us at the most vulnerable time - when we turn 18. I remember when they got me. I was recently out of high school and on my own for the...
•Many Workers Don't Use Their Retirement Accounts Wisely
Over the years, many financial institutions have attempted to get a better picture of the true state of the retiree in the years ahead. The results are troubling. If workers do not change their courses of action soon, many households are headed for financial problems in the most critical years - during retirement.
Employees don't understand fees
According to a recent survey, many retirement plan owners realize that fees are an important consideration in choosing 401(k) investments....
•Financial Planning Changes over the Years - Planning in Retirement Years
Last time, we looked at financial planning for people in their 40s and 50s. Here are some tips to help you make sure that you are ready in retirement - 60s and beyond.
The retirement years - 60s and beyond
In our retirement years, we need to be well-prepared. We no longer have jobs, and we are now living with a fixed income. This applies whether we have money coming in monthly or if we are drawing money out of a lump sum in an investment account.
At age 70 ½, the government begins...
•Financial Planning in Your 20s and 30s
Many people don't think about retirement until they get close to it. However, financial planning should begin the first day on the job. Here are some tips to help you make sure that you are on the right track.
The early years - 20s
When you start your first job, you know that you have plenty of time before you retire. But don't let time get in the way and turn you into a procrastinator. It is never too early to start.
While expenses are still minimal, get started on a budget. Budget...
•Finding the Keys to Prosperity
Following God does not have to mean a life of poverty. He is not opposed to our desire to enjoy life and carefully plan for retirement. However, there are important steps that a Christian should take to ensure both prosperity and success.
Daily bread
We should read the Bible and appreciate the source of our successes. Joshua told us in Joshua 1:8 to meditate on Scripture day and night so that we can do everything that is written in it.
God told Moses in Deuteronomy 30:15-18 that...
•Understanding the Difference between Good and Bad Loans
The media has been over-run with talk about mortgage and credit card defaults. Many homeowners are scrambling to save their homes from foreclosure. We might begin to wonder whether there really is such a thing as a good loan.
Using credit is not always a bad thing. We just need to understand when it is appropriate. Loans make sense when they help us increase what we already have. For example, we can use a credit card for everyday purchases if we are buying things that are within our...
•Tips to Better Your Credit Score
When we were in school, report cards and our GPA were important. As adults, it's our credit score.
Most people associate their credit score with obtaining a mortgage. However, it is applicable in many situations. As we begin considering our motivations for wealth, we should avoid being careless with our spending, especially on credit.
A good credit score helps you avoid a security deposit when getting a cell phone or a new utility account. Property managers perform credit checks when you...
•What are ETFs?
? With the economy going through questionable times, everyone is searching for the best place to save and invest. When the market gets volatile, investors want to research their options. I am opposed to jumping ship too soon, but I still encourage educated decisions.
Clients have been asking for more information on exchange-traded funds. Exchange-traded funds (or ETFs) are still relatively new investment products. They were first introduced in 1993, but have been gaining in popularity ever...
•Determining When to Take Social Security Benefits?
? In planning for retirement, we should look at both expenses and income. With expenses, we should aim for paying off all of our debt - both the good loans and the bad loans. When it comes to income we want to plan on having funds come from the three-legged stool: pension (or other employer-sponsored retirement plan), Social Security, and our own savings.
We normally start taking our pensions upon retirement. Our personal savings is available whenever we feel the need to draw from it. So,...
•Set Financial Goals for the New Year
Once Thanksgiving and Christmas are near, we realize that another year has come and gone. When we look back, we realize that there were many things we wanted to accomplish in 2009, yet they somehow did not come to fruition.
For many of us, life just gets in the way. With spouses, children, work, and home, there is never a shortage of things to do. It becomes easy to put off our goals until "tomorrow." For example, many of us put off making sure we have enough life insurance coverage, even...
•What is Your Motivation for Wealth?
? I ran across a study conducted by the American Association of Retired Persons (AARP) several years ago. The organization wanted to research people's desire for achieving wealth.
Surprisingly, the results indicated that Americans are almost evenly divided in that desire. About 49% of Americans surveyed do not want to be wealthy.
Most of them (38%) are satisfied with where they are in life. They are comfortable with their current lifestyle and place little value on money's ability to buy...
•It May Not Be Too Late to Avoid Foreclosure
Some people are worried about being able to keep up with their credit card payments in order to maintain a good credit score. Others are worried about their credit on a much larger scale.
Foreclosure rates have reached highs that many of us have never seen before. Many people are panicked, especially those who are facing the possibility of being foreclosed on. I wanted to offer some suggestions to those who may need to look at their options. The sooner you act, the better the chances of...
•All Jobs are Important in God's Kingdom
In order to survive and to provide for our families, we spend a lot of time at work. Many of us are working to pay off credit cards and other debt.
In fact, work has been around since the beginning of creation. As mentioned in Genesis 2:15, Adam worked in the garden of Eden.
But God was a gracious God, and work was not difficult for humankind at first. Work changed after Adam and Eve succumbed to the serpent's temptation. (Genesis 3:17-19).
Work is expected
Nevertheless, God expects us...
•Christians are Held to Higher Standards
Although we live in this world, the Bible tells us that we should not conform to the ways of the world (Romans 12:2). As Christians, we are held to different standards, higher standards.
Are we useless?
If our actions are not aligned with what God wants, we are considered unfit and useless to Him (Titus 1:16). Can you imagine being told that you are useless? We are all made for a purpose. Each of our purposes is unique. That means that no one else can do what you are meant to do....
•Credit Card Companies Target the Weak and Vulnerable
Times are hard financially. Since the mortgage industry fell apart, there has been a domino effect that has trickled into the rest of the economy. The Fed tried to prevent a recession, but it hit us anyway. Families are struggling and money is tight. There is talk that the recession is over, but it is really hard to tell what lies ahead for us.
Many people are trying to capitalize on the negativity. Companies are offering ways to stop foreclosure or offering ways to improve credit...
•How Do You Know If Your Employer's Life Insurance Policy is Enough?
? Although death is not a subject that most of us like to talk about, we know that it is inevitable. None of us will live forever.
With that in mind, it is absolutely crucial to consider the well-being of the loved ones we leave behind.
In the past, many of us simply relied upon the life insurance coverage provided at work. Unfortunately, that isn't enough. During these tough economic times, some employers have reduced or eliminated the coverage.
We also lose the coverage when we stop...
•What Does Debt Cost?
? It is important to look at how responsible we are with managing thour finances. Sometimes, we spend money to an extent that it puts us in extreme debt.
It's one of the biggest concerns for the majority of Americans. We believe in buying now and paying later, but it's not in our best interest.
What does debt cost?
Debt costs more than most of us realize. It damages relationships. In about 83% of divorces today, problems with debt and finances are partly to blame.
We also lose control...
•Find Balance with Work and the Rest of Your Life
Although diligence is admirable, we have to have the proper balance in our lives. We must avoid overworking. When God created the world, He worked for six days. On the seventh day, He rested.
We are told to rest
In that same respect, God gave similar instructions to Moses in Exodus 34:21. It reads, "Six days you shall labor, but on the seventh day you shall rest; even during the plowing season and harvest you have to rest."
The plowing season and harvest can be described as the time...
•Avoid the Bumps on the Road to Retirement
With the baby boomer generation quickly making its way toward retirement, there are some issues that pre-retirees should consider addressing before saying good-bye to their employers.
Long retirement period
When Social Security was first established, most retirees didn't live long after terminating the employment. But over the years, our life expectancy has increased significantly.
People in their 60s can expect to live an average of 20 years or more in retirement. Once we reach our 70s,...
•The Importance of Diversification
When we talk about setting goals and seeing them through, that also applies to diversifying our portfolios. When we set goals for our retirement accounts, we should not concentrate only on the potential for positive returns. Then, we find ourselves ready to change our minds when the road gets rough. It is important to really understand what diversification is in order to properly set up our investment accounts in a way that enables us to remain comfortable over the long term.
What is...
•Should I Convert My Traditional IRA to a Roth IRA?
? Since Roth IRAs were created, there have been income limits that have prevented higher earning households from opening them or converting their traditional IRAs to Roth IRAs. On January 1, 2010, income limits will be eliminated. This allows any interested investor to convert traditional IRAs to Roth IRAs.
Complacency with monitoring our accounts' diversification can lead to unnecessary risk. It is best not to be complacent about considering the current IRA conversion opportunity. It can...
•Leaving a Lasting Legacy with Wills and Trusts
While here on earth, we are meant to be a blessing to others. However, our job is not done there. We are also supposed to leave our mark behind when we are gone. 2 Corinthians 12:14 tells us to provide for our children. But Proverbs takes it one step further to include future generations. Proverbs 13:22 reads, "A good man leaves an inheritance for his children's children, but a sinner's wealth is stored up for the righteous." (NIV)
It is important for us to plan ahead. When King...
•3 Facts about Money from the Bible
Day in and day out, we are constantly thinking about money. We wake up almost every day to go to work to make money to pay bills and to maintain a comfortable standard of living. We think about retirement, and our ability to save for it. We consider whether making changes to our savings strategies, such as converting a traditional IRA to a Roth IRA, can make life better. Money, or the lack of it, can cause a lot of problems and stress.
However, if your finances are properly managed, your...
•College Funding - Can We Still Afford to Help Our Children Pay for College?
? In such a volatile economy, most investment account values have been down. Not only have retirement accounts that have been affected, but college savings accounts are also down.
It also doesn't help to see college costs increasing at such high rates. College costs have averaged a 6% increase each year. Now, many parents are wondering whether they will still be able to help their children pay for college expenses. Here are some ideas that may help you determine the best way to help your...
•Do I Really Need Long Term Care Insurance?
? The Center for Retirement Research recently reported that 64% of pre-retirees will be at risk of not having enough money saved to maintain their current lifestyles. That means that 2 in 3 retirees will have to reduce their standard of living in retirement.
If no major medical issues arise, it may not be so bad. But we are living longer, and with that comes an increased chance of needing some sort of long term care. Unfortunately, most couples are not financially prepared for paying that...
•Setting Personal Goals
Someone once told me that there is one place that we can go and find a lot of potential for wealth. It's a place you would probably never guess. I sure got it wrong. He told me that the best place to find that potential is in the cemetery.
Just think about how true that is. The vast amount of untapped potential in the graveyard is infinite. So many people died without pushing toward their goals, without going that extra step beyond what they thought they were capable of.
But if we are...
•What is the Best Thing to do in a Market Like This?
? For the past two years, the stock market has performed like a yo-yo. One day, it's up. The next day, it's down. No one agrees on where the economy is headed.
Some people are ready to retire and need to decide how to roll their 401k accounts or pensions. In that case, it is very important that the money last through retirement.
Others want to make sure that their retirement accounts are able to continue to grow so that they can retire. There has been a lot of talk about whether we...
•Beware: Common Expenses that Throw Off Home Budgets
If there is one thing that can cause tremendous damage to our finances, it would have to be irregular expenses. These are expenses that do not happen every pay period or every month, but often come up at some point during the year.
That may seem odd when you first look at it because we can, in fact, prepare for these costs. The unfortunate fact, though, is that most of us do not plan for them at all. Like those emergencies that often blindside us, these bills also catch us off guard. They...
•How Do I Roll Over My 401k Accounts or Pensions?
? When the time comes to retire, lots of questions come to mind when trying to decide how to take our distributions. Here are four reasons why I recommend taking the lump sum when rolling over 401k accounts or pensions.
(1) How safe is your employer?
You were a loyal employee and can only expect that your employer will honor the commitment to fund your retirement. However, some companies are no longer financially stable enough to make those monthly payments.
There is a Pension Benefit...
•7 Problems with Debt
Debt is one of the biggest concerns for the majority of families today. Most of us are thousands and thousands of dollars in debt. We often live from paycheck to paycheck, and we worry about paying our bills. In fact, many of us would not be prepared if an emergency arises. Worse yet, if we were to lose our jobs, we are just days or weeks away from bankruptcy.
With the media constantly telling us how much happier we will be once we own a certain kind of car or take that dream vacation, it...
•Keep Tabs on Your Finances
While we may know how much money we have coming in, studies show that most of us don't know what is going out. Not knowing how much money we spend each month may put us in a position where we need money that we don't have. We may end up using credit cards or getting a payday loan to cover the shortfall.
We need to actually monitor our spending habits to find out the best way to maximize our financial resources. The best way to do this is to keep track of every purchase made, regardless of...
•10 Tips to Get Financially Fit Anytime
Resolutions are a popular way to bring in the new year. But you don't have to wait for the new year to get your finances in order. Here are 10 personal finance basics to help you get your financial house in order now.
Become a tither
It is more blessed to give than to receive. Start this year off the right way by giving God His 10%. Let Him show you that He can bless you far beyond the money you give Him.
Set goals
Many of us get upset when things don't work out as we would have liked....
•Accountability Beyond the Tithe
As financial stewards, we don't own anything. We just manage it. We need to make sure that we properly manage everything that God has entrusted to us.
In Luke 16:10-12, Jesus said, "Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much. So if you have not been trustworthy in handling worldly wealth, who will trust you with true riches? And if you have not been trustworthy with someone else's...
•How to Buy Your Next Car
An important money concept to consider is exercising care when buying new vehicles.
Our car companies have been really good at convincing us that we need a new car every couple of years. On top of that, we have become infatuated with not only having the latest model, but also having all of the new gizmos and high-tech features in our cars.
We dress up our cars with rims, TVs, DVD players, video game consoles, you name it. Having nice things is fine, but it needs to fit into the budget. We...
•Money Management Lessons for Teens
Parenthood is a truly amazing experience. In essence, as parents, we are responsible for a tiny, helpless human being. Over time, our children do grow up and develop skills toward self-sufficiency, but the type of people our children become has a lot to do with the instruction we provide to them.
Proverbs 22:6 tells us, "Train a child in the way he should go, and when he is old he will not turn from it." (NIV) While the Bible may not be speaking specifically about finances in this verse,...
•Don't Use Payday Loans to Pay Off Credit Cards
For the past two years, the economy has really taken us for a ride. The stock market has brought more volatility than most of us are comfortable with. Unemployment rates are higher than we've ever seen before. The economic crisis is hurting families at all economic levels.
Now it is more critical than ever to be careful with your finances. Eliminating debt requires both consistency and determination. It can be tempting to seek ways to speed up the process. Some people consider taking out a...
•Stop Making the Minimum Payments - How to Pay Off Your Credit Cards
Everyone wants to be debt free. The problem with debt elimination is figuring out where to start. You must first understand your cash flow. Once you know what you have coming in and what needs to go out, you can create a debt repayment plan that can help you get out of debt quick.
Creating a debt payoff ladder
To do this, make a list of all of debts, putting them in order according to the balances due. List your smallest account balances first.
Next, decide how much you can realistically...
•10 Tips to Save Money During the Holidays
If you already have more debt than you'd like, the holidays can make it worse. So, here are a few money saving tips to help you keep your finances in order.
1) Create a budget. A budget is actually the best way to keep you on track. Knowing how much you can really afford to spend will help you figure out how many presents you can buy. Make sure your budget includes everything you normally buy during the holidays, such as decorations, cards, and postage.
2) Make a list. Ask yourself two...
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