The 2 Biggest Retirement Misconceptions – While the idea of retirement has changed, certain financial assumptions haven’t.
We’ve all heard about the “new retirement”, the mix of work and play that many of us assume we will have in our lives one day. We do not expect “retirement” to be all leisure. While this is becoming a cultural assumption among baby boomers, it is interesting to see that certain financial assumptions haven’t really changed with the times. In particular, there are two financial misconceptions that baby boomers can fall prey to – assumptions that could prove financially harmful for their future. #1) Assuming retirement will last 10-15 years. Historically, retirement has lasted...
Read MoreWays to put your refund to work – What could that money do for you?
Is a tax refund coming your way? If you have already received your refund for 2012 or are about to receive it, you might want to think about the destiny of that money. Here are some possibilities. Start (or add to) an emergency fund. Many people don’t have a dedicated rainy day fund, only the presumption that they might have enough cash in case of a financial tight spot. Invest in yourself. You could put the money toward education, career training, personal improvement, or some sort of personal experience with the potential to enhance your life. Use it for a down payment on a car or truck...
Read MoreWeekly Economic Update – 3/26/12
HOUSING MARKET COOLS DOWN IN FEBRUARY: Nationally, home sales took a step back last month. Last week, the National Association of Realtors reported a 0.9% drop in residential resales in February. The federal government subsequently announced a 1.6% slip in new home purchases last month, although new home prices rose by over 8.0%. The year-over-year numbers are better: existing home sales have jumped 8.8% in the last 12 months, and new home sales have picked up by 11.4%. Housing starts were down 1.1% in February from January’s 4-year high, but building permits were up 5.1% for the...
Read MoreIRA Deadlines are Approaching – April is nearly here. Keep your IRA in mind.
Many of us associate April with taxes. We should also associate it with IRAs, for April is the month with the deadlines for IRA contributions and mandatory IRA withdrawals. The deadline for your 2011 IRA contribution is April 17, 2012. Yes, April 17. This year, April 15 is a Sunday and April 16 falls on a holiday in the District of Columbia (Emancipation Day). So you get a little extra time to make your 2011 contribution if you (still) haven’t done so.1 For tax years 2011 and 2012, you can contribute up to $5,000 to your Roth or traditional IRA. If you have multiple IRAs, you can contribute...
Read MoreWeekly Economic Update – 3/19/12
PRICES Rise Most In TEN MONTHS Consumer prices were up 0.4% in February according to the Commerce Department, yet core inflation rose only 0.1%. A 6% jump in gasoline prices represented 80% of the Consumer Price Index’s biggest gain since April, while food prices were flat for the first time since July 2010. Economists polled by Bloomberg expected a 0.5% rise in CPI for the month. Producer prices also rose 0.4% last month, but prices for finished products were up but 0.1%. Annualized inflation was at 2.9% in February; annualized core CPI was at 2.2%.1,2 AN ILLUMINATING STATESIDE STRESS...
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