Springing forward in Fall!

If you haven’t started saving for retirement, now is the time to fall into a plan!

We are now in Fall, the season when leaves fall, pumpkins abound, and little costumed kids knock on your door for Halloween treats.

After you recover from dodging kids in pumpkin suits, soon you will have to adjust the time on your clocks.  Remember time falls back in Fall and springs forward in Spring.

This Fall, have you fallen back in your financial planning? Are you able to spring back?

No one wants to be toiling away in their golden years, at least in stressful, demanding jobs. Working at something and being active will keep you healthy in your retirement years, but you also need the flexibility to do the things you never had the time to do during your working years. A lot will depend on your finances, and how you managed your income and expenses during your working years.

Saving for retirement requires careful planning and important financial decisions.  Taking expensive vacations, driving luxury cars, and dining at fine restaurants are great if you can afford it, but if you cannot, you may be putting yourself at future financial risk.  If you haven’t done so, now is the time to create a budget on a timeline.  Figure out at what age you propose taking retirement and your expected income and expenses during retirement.  Map your monthly income and expenses for 2012 and project your annual income and expenses each year in the future up to your year of expected retirement.  This will give you a fair idea of your financial situation at retirement.  If you need help, I can email you a sample Excel spreadsheet that works for me.  Email: info@terrytaxes.com; or contact me through my website at www.terrytaxes.com.

Remember it’s trick or treat time! Be prepared, and keep an eye out for the kids!   Thanks for reading!

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Savings in your bucket!

Cultivate the habit of filling the bucket at an early age.

It can be a challenge to save money, so it might be best to get children to start early. Instead of giving children a weekly allowance, have them earn their allowance by assigning chores in the home. Chores help build responsibility and a sense of pride.  Point out to kids that the family is a “team” and we all have to work together to keep the home neat, clean, and safe.

Here is a real life example of how one of my colleagues established jobs in their home. They put together a list of chores on a weekly calendar. Each job paid 50 cents daily. The children had to put their initials daily to let their parents know that the chore was completed. No intials, no pay!  At the end of the week, the youngsters could earn up to $5.00. On pay day, the children were encouraged to put some of their earnings in a piggy bank.

The rest they used for immediate gratification, such as ice cream from Cold Stone.  This encourages them to save yet not be too frugal.

Of course parents still need to bear the cost of  all those fluffy stuffed animals! 🙂

As kids grow older and become familiar with money and savings, the next step will be to learn about tax savings.

Thanks for reading!  Terrytaxes.com

Your Nest Egg. Is your bucket empty?

Planning your financial future should start from a young age. Older people will tell you that life gets financially harder as we age.  According to a New York Times article, 46 million Americans — 15 percent of the population — are now counted as poor.

My bucket is empty!

Few young people ever think of growing old. They are active, full of vitality, and like having fun.  This is the way to go and they should be encouraged to live life to the fullest. However, at some point they have to be made aware of fiscal responsibility. Parents should encourage their children’s financial education, and teach them about the importance of income, spending and saving.

Thanks for reading!  Terrytaxes.com