Your Financial Plan & Your Most Important Numbers 

Net worth

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 . . . 

How to Start Your Financial Plan

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 . . . 

Extend the Life of Your Nest Egg 

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 . . . 

401(k) versus Roth 401(k) 

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 . . . 

Bachelorette’s Peter Kraus = Tax Deduction?

peter kraus madison wi

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, . . . 

Reduce Willpower. Increase Success.

Systems vs Goals

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 . . . 

Another way to fund a Roth

Mega back-door Roth IRA

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 . . . 

Should you buy that house?

Should I buy a house?

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 . . . 

Financial Independence

Financial Independence

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 . . .