The next time you turn on your GPS to get somewhere you haven’t gone before the starting point will say “Your Location.” Next time you’re lost in a mall you will look for the “You are Here” sticker. Get it? To get where you want to go, you need to know where you are. In financial planning the same is true. What does “knowing where . . .
Don’t know where to start on your financial plan? Start with “Why.” After you gain an understanding of your “why” everything else can fall into place. “Why” is simple in concept. It is the reason. It is the purpose. “Why” is extremely difficult for many people. Why? Because it is emotional, boring, embarrassing, and many more adjectives. It . . .
After reaching financial independence, you have two options to generate income to cover your expenses: Continue working Draw income and principal (eventually) from your investments Yes, it is possible to live only on the income generated from your investments. Yet, for many people, they will be required to dip into the principal at some point. At . . .
Having a sound tax strategy is critical to long-term wealth building. Whether you’re an employee, business owner, or invest in real estate there are tax wise decisions you must make every day. After making a smart tax decision your next step is to decide what to do with your winnings. To understand a tax strategy, I . . .
Summer 2017’s season of the Bachelorette was dedicated to Rachel Lindsey. However, if you lived in Madison, WI the season was dedicated to the hometown favorite, Peter Kraus. While Peter did not end with the final rose, he did position himself as very likable and great candidate for the next Bachelor. For what it’s worth, . . .
I’m currently reading How to Fail at almost everything and still win big by Scott Adams. If you don’t know who Scott Adams is, he is the author of the comic strip, Dilbert. A co-worker introduced me to Dilbert by sharing his daily calendar comic. Each day I’m left with or scratch of the . . .
Last week we discussed how to complete a back-door Roth IRA contribution. For many, this strategy is a slow and boring way to do it. Fortunately, there is another option, which can lead to larger Roth contributions when you earn too much. The ability to use this strategy is relatively new. In September 2014, the IRS released Notice 2014-54 to grant . . .
A Roth IRA grows tax-free and provides tax-free distributions. These features make a Roth IRA a powerful tax shelter. Because of these unique benefits, the desire to get money into a Roth IRA is high. However, income thresholds limit access to Roth IRAs. Therefore, certain earners are unable to gain direct access to a Roth IRA. If . . .
The American ideal. Owning a home, a nice pension, and social security. You were set for life. After the 2008 housing crisis the desirability of home ownership changed. Many people lost everything because they bought too much house. Pensions are going extinct. Social security has changes on the horizon. The American ideal isn’t the same . . .
On July 4, 1776, the Declaration of Independence was signed separating the thirteen American colonies as a new nation. The dawn of the United States of America! Since then Independence Day is commonly celebrated with fireworks, parades, and parties. While a group of states celebrate with a bang, finding your personal financial independence can be . . .