Two days ago I did something really dangerous and stupid. I took the wrong medication. A few months back I injured my shoulder. Remember the post I where I mentioned the weather was beautiful and I didn't want to stay inside? Well, I was out digging in the dirt with a rototiller. My shoulder had been sore prior because of the crazy workout routines I had been doing. So off I went to the doctor to get some relief. It took a while because my mother got sick. Remember that post as well? Anyway, the doctor gave me Tramadol. Tramadol and I don't get along. I was nauseous and itchy. In other words miserable. So the 2nd doctor (socialized medicine means I don't always see the same doctor....life is good though) prescribed Motrin. Of course he did, you are thinking. Motrin fixes all, doesn't it? Now let's fast forward to Sunday night. We are cleaning up from dinner and I reach to take my medicine. I try to follow the directions for the meds...don't take on an empty stomach. A short while later I am feel very light-headed and not quite right. My oldest child thinks I am just tired. No, that isn't it. I am shaking now and breaking out in a sweat. I am wracking my brain for what in the world I could have taken. I head to the kitchen and it dawns on me that I didn't reach in my purse for my meds. I grabbed the bottle on the counter.
Did I mention my dog takes Tramadol for his hip dysplaxia? Yep, I took the dog's medicine. Thankfully, the dog's medicine is the same as the human version. I googled the heck out of my issue. Needless to say, I am fine, but how scary is that? It was a teaching lesson for the Littles. I pulled out the dog's medicine bottle and showed it to the kids. I asked them what it was and one of them said it was my medicine. Nope, not my medicine. The bottles look the same and so do the white pills inside. When I told them what had happened they were very quiet and solemn. I explained how miserable I felt. I told them the importance of paying attention to medicine bottles and not to ever, ever, ever take medicine without discussing with an adult. Yes, we have had these conversations before, but we have never had a real-life "teaching moment." So it got me to thinking about distractions in our lives that take us off our financial paths. How many of us get distracted by the new and shiny? Or by what our neighbor has parked in the driveway? Or by the vacation our friends just took? We wonder how they can afford these things. We figure if they can afford these things we should be able to also. Afterall, we DESERVE ___________ (you fill in the blank). Does this happen to you? Clearly we know I get distracted, how 'bout you?
I have some of the most amazing friends. They tell me all sorts of things in confidence and I don't betray that confidence. If it is something particularly helpful to others financially, though, I beg them to let me share their story. Most of them say yes as long as I don't share their names. I won't. I never do. Pinky swear. So what would you do with this scenario: You are traveling to visit family who is about 1500 miles away. Yeah, you could drive, but you have a couple of kids and 1 of those kids is a toddler. Flying seems like a better option. The thought of spending countless hours behind the wheel of a car doesn't appeal at the moment. Let's not forget the overnight hotel accomodations and the gas. Oh yeah, traffic too. You want the best deal because flying 3 people is pricey. Well, you find a way to say $400 overall by driving to an airport 3 hours away and arriving at your destination after midnight. Sounds like a great money saving deal, right? On paper it sounds good, but the reality wasn't nearly as wonderful, unfortunately. The flight left around dinnertime. At some point the toddler had decided it was time for bed and he wanted it NOW! A full blown meltdown ensued. (You know the ones I am talking about...screaming, crying, out of control? Oh sorry, I forgot your kid never did/does that.) They arrived at their destination tired and harried. They still had to grab luggage and drive to their family's home. It was 2 am by the time they "arrived" officially. When I asked her if she would do that again, her answer was a resounding NO. It wasn't worth the savings for the hassle. Most of us would probably agree with her. Not only NO but H-E-double-hockey-sticks NO! But the funny thing is that memories are short and $400 is a lot of money for most folks. How many of us have compromised convenience for a buck? I know I have. I try hard to weigh all the scenarios and the pros and cons, but $400 is $400...that's a lotta lattes lol So what would YOU do?
Most of you know that I trade my own portfolio. I don't use a financial advisor or planner at this point in our lives. I just want to clarify "what" I do since some of you are curious.
5 plus years ago, when we lived in El Paso, TX, I attended a sales building event. One of my favorite speakers was there...Mr. Zig Ziglar.
There were a few other speakers at the event, but in addition to Mr. Ziglar I was intrigued by Phil Town who was representing Investools. Investools teaches mere mortals how to invest on their own. No it is not free. No it is not easy. It is truly one of the hardest things I have learned to do. I have spent thousands of dollars in education and thousands of hours honing my skill. That said, I do NOT regret a minute of it...today anyway lol Seriously, I really enjoy what I do.
So what exactly do you do then?
Well, I analyze charts daily and decide whether I am going to enter a trade on a particular stock. Sounds simple enough, doesn't it? Yeah, not so fast. It is actually much more complicated than that.
What I do NOT do is day trade. Day traders are in and out of a particular trade during trading hours. I do not do that. I am a long term investor overall, but I will trend trade. Long term means I am buying stocks of companies that I want to stay in for the long haul. I found this definition on Wikipedia that sums it up "Traders who employ a trend following strategy do not aim to forecast or predict specific price levels; they simply jump on the trend and ride it."
Now I am not ignorant of the swing of the market so I use the skills I have learned to remove myself from a long term trade if it is no longer moving in the direction I would like it to go.
Do you make money at this?
I have been known to be fairly successful at this. And let me preface this first with my definition of successful and most traders definition of successful...preservation of capital is paramount. You will not be right on every single trade, just not going to happen. There are way too many variables out of our control to predict 100% success.
I have sat down with my long term financial goals and given myself a benchmark to hit every year. to get to my "number." Stay tuned for more....
My biggest writing obstacle has been because I have blog-envy. I haven't been able to figure out all the intricate details of how to make my blog look professional or whatever I think I wanted it to look like so I just quit writing. It was easier to quit writing than try to find the energy and motivation to fix the issue.
Just the other day I picked up this book at the library. Now I am re-motivated. The book reminded me WHY I wanted to blog in the first place. Blog about your PASSION. Well, those of you know me know I am a passionate person, but the things most dear to my heart are my faith in God, my family, and money. More specifically, helping women realize their full potential in this realm.
I have decided to take myself out of the mainstream working world to homeschool my littles, but I am still passionate about money and financial counseling so this is a way I can utilize the talent God has entrusted in me, plus hopefully help someone along the way.
Just bear with me as I transistion the blog and learn some basic coding. I look forward to sharing some wonderful stories that I have been saving and to sharing some of my other passion, trading and investing.
Yep, that's me. I have been slacking on the blog for a few reasons. One of them is the weather. It has been too nice out, simply put, to want to sit behind a computer screen. I like to dig in the dirt and now is the time to do it. I figure the Alabama weather is going to get hot soon enough and I will have time to rejoin the blogosphere.
The second reason is my frustration with trying to figure out how my "blog" works. I now have tabs but I am not sure how to get the correct articles into the correct tabs. No one is my little world has been able to help me either soooooo.....I went outside and started digging. Sorry 'bout that.
Yep, Lent is officially over as is my Challenge. I think we did really, really well with cutting out all "non-essential spending." It was tough though I must admit. I am not a huge shopping spree kind of gal, but I do like to troll the Target dollar bins or hit up Books-A-Million.
What we discovered was how much "stuff" we actually buying each month because we could. I know for a fact that there are a few of you who do the same thing. Don't worry, I won't call you out publicly hahahaha We all have our vices.
One of my girlfriends asked what we were going to "do" with the extra money now. I hadn't really thought about that part so this was a good idea. We donate a lot to Food for the Poor so I thought that would be a great place to give a bit extra.
We have also decided to stick with our Challenge year round. Do we really need more stuff??
I have been out of town for the past week helping my mother. It has been challenging to my family back home, but I can't think of anything I would do differently. This is her 4th surgery in 2 years. She just lost her husband last summer so she needed some additional help.
The Sandwich Generation refers to Baby Boomers with parents over 70 years old and dependent children. Well, right now I am feeling like I qualify given my circumstances. My mother is 65 next month and I have 3 children under 10 at home. I am actually part of the Baby Bust Generation....the generation between 1965 to 1976. This is the generation that didn't see as many babies being born. This period of time coinciding with the introduction of the birth control pill.
There are 76 million baby boomers. On January 1, 2006, the oldest of this group turned 60. By 2014, they will range in age from 50 to 68 years old and either be retired or in the planning stages of retirement. according to Kathy Quan, R.N, B.S.N., P.H.N. at NetPlaces
What I have discovered, after doing some research on this subject, is how commonplace my situation actually is. Here's another interesting statistic from NetPlaces:
Forty-four percent of Americans between the ages of 45 and 56 have aging parents as well as children under the age of 21. In actuality, women are sandwiched more often than men.
I highlighted and italicized that last sentence because it is extremely important to all of my girlfriends. I am fortunate in my situation to not have paid employment at the moment. However, I homeschool the littles so I am not without significant responsibilities. Thankfully, I have an amazing husband, older daughter, and lots of great friends to fill my void during this time. The majority of caregivers to ailing parents and in-laws are the women in the family.
That does not alleviate the guilt though. Guilt that I have left my husband to handle the household duties, school duties, etc. Guilt that I have about leaning on my friends so much. Guilt that I am leaving my mother too soon. Like I said earlier, I wouldn't do it any other way, but that doesn't relieve the conflicting feelings that I am experiencing.
I don't even live in the same state as my mother. I have to pray that my sisters will step up and care for her after I leave. Now add "stress" to the "guilt." It seems my mother doesn't qualify for a visiting nurse since she doesn't meet some requirement that her insurance company needs her to have. I have already re-booked my ticket and now hesitate since I am afraid she will be alone most of the time. I miss my littles terribly. My husband's job is our income so I need to get home so he can do his job properly. Oh what to do, what to do???
Hi There! I'm glad you're still here. It seems like forever since I sat down to post. We had a little boy's birthday party that consumed some time last week and sports have started. We have 2 playing soccer and 1 playing tee-ball. Need I say more?? :)
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I "met" a new girlfriend this past week via FB. How did that happen, you wonder? Well, we both belong to a military spouse group of financial counselors and we were sharing information. She has a great financial resource blog at http://kaffenate.com/ She even has a fancy-schmancy logo that I am coveting. Sorry, I digress. She posted a great tip on saving money with online ordering and coupons and I saved some money too.
We actually had almost the same scenario. Both of our kids wear Crocs. (the beauty of homeschooling is that my kids can wear Crocs ALL the time hehehe) She needed to replace the rivets in her son's shoes and I needed to do it for one of the girls. The rivets are only .99 online, but there was shipping involved. She posted a fantastic website RetailMeKnot that led me to coupons and discounts and FREE shipping. Love it!
Another tidbit I learned was to sign up for an account before purchasing anything and Crocs will send a 20% coupon to your email. I used that on a new pair of Crocs for the little guy. Free shipping and a discount!! Woo-Hoo!! Thanks Kristiann!
Got a savings tidbit you want to share, please post in the comments. I would love to hear from you.
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Tax season is upon us and we have less than a month to either file our taxes or an extension. Remember that an extension is only for the filing of taxes not an extension on paying your taxes. If you owe taxes you still need to pay them on time or risk repercussions from the IRS in the form of penalties.
This is about one of the latest tax refund scams out there. Essentially the thieves steal your social security number (or buy it from an insider) from businesses that require you to provide it for services. The thieves then file a bogus tax return in your name and have the refund deposited onto a debit card they purchased.
How can they do this without your W-2 you ask? Well, they fake one and the IRS doesn't catch on until after refund is issued because they don't verify information until after the fact. Nice, huh?
There are a few things you can do to try to protect yourself:
call the IRS at 1-800-829-1040 to find out if a return has been filed in your name
file your taxes early
and start saying NO to giving out your social security number
I know, I sound naive about #3, but I have started saying No and at the very least I insist on knowing WHY? What does my social security number have to do with a visit to the veterinarian? Seriously. And WE collectively, as a society, just give information whenever it is asked for. It is okay to say NO. We were fed that information in the 80s...Just Say NO! hehehe
In all seriousness, if you have to give out that kind of information then be vigilant about monitoring your credit report. Clearly this particular tax refund scam isn't about your credit information.
I think the thing that chaps my hide about identity theft is the insult to injury a victim endures by having to prove they are innocent. WTH?? I have been very, very fortunate not to have ever been a victim so far, but the horror stories of past clients have been sobering.
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On another note, my Lenten challenge is still going strong. The first couple of weeks were difficult, but now I have my "groove" on and am not feeling too bad about not shopping. Anyone else want to share if they are following along?
I have a good friend who knows I don't fund college savings, but is in need of more information on 529 plans so this blog is for her.
As I just mentioned 529 plans are designed for college savings. They even have a legal name (who knew?). They are "qualified tuition plans" (QTP) according to the U.S Securities and Exchange Commission. They get their name because they are authorized by Section 529 of the IRS code. Good to know information in case I am playing Jeopardy someday.
An account holder opens a 529 plan and designates a beneficiary. For example Mom & Dad open a 529 account for Junior. Junior is the beneficiary. Mom & Dad hope that this funding will pay for college expenses. Junior can use this 529 plan in any state at any accredited institution. That may not be the case with the states' prepaid tuition plan, which is different than a 529 plan. Grandparents can even open an account for Junior and contribute.
One of the beautiful things about 529 plans is that the money belongs to the account holder. They can re-designate the money to a new beneficiary whenever they choose. For example, Junior has decided to take some time to "find himself" before beginning his college journey. The account holder can then designate the money to Janie, Junior's sister.
Or let say you get lucky and your kids get full ride scholarships, decide not to go to college, enlist in the military, or join the seminary or convent, then the account holder can use that money for their own higher education. If the money is NOT used for higher education then it is taxed and the account holder gets hit with a 10% penalty. This is the part of the 529 plan that I don't like.
You can have 529 plans in different states also. There is no restriction. You can live in Maine and open up an account in New Mexico and your beneficiary goes to college in Florida. And anyone can contribute to a 529 plan. The amount contributed is not deductible on your federal return but some states may allow for deductions for contributions.
According to the IRS: "Contributions to a QTP on behalf of any beneficiary cannot be more than the amount necessary to provide for the qualified higher education expenses of the beneficiary."
529 plans grow tax-free as long as the money is used for qualified higher education costs, which include tuition, room, board, fees, books, and supplies.
Here is an example I borrowed from SavingForCollege.com of what will happen when it comes time to fill out the FAFSA (Free Application for Federal Student Aid):
Here is a simplified example of how this all works:
You file the FAFSA aid application when your child is a senior in high school. Let's say you have a 529 savings account with $20,000 in it, of which $10,000 represents your original contribution and $10,000 is earnings.
Year 1: Your child's eligibility for federal financial aid this year will decrease by no more than 5.64% of the account value, or $1,128 ($20,000 x 5.64%). Assume there is no further appreciation in the account and you withdraw $5,000 in the fall to pay for the first semester college bills.
Year 2: You have $15,000 left in the account when your child applies for aid for sophomore year, and it will again be assessed up to 5.64% of the account value or $846 ($15,000 x 5.64%). The $5,000 withdrawal brought $2,500 of excluded earnings with it, but as indicated above, none of the withdrawal is counted as financial aid income.
The federal aid formula is more complicated than what is described here, but this gives you a general idea of how to calculate impact.
Be Prepared!
Sound complicated? It is. And we are only talking about the federal financial aid rules here -- each school can (and most will) set its own rules when handing out its own need-based scholarships, and many schools are starting to adjust awards when they discover 529 accounts in the family. Also consider that the federal financial aid rules are subject to frequent change. Finally, remember that most financial aid comes in the form of loans, not grants, and so you end up paying it back anyway.
Sometimes I feel like we are penalized for doing the right thing by saving for college. That is one of the reasons we are not interested any longer. We have done this before with our oldest. She never qualified for even a subsidized student loan because of the income and the savings.
A subsidized student loan is when you aren't charged interest while you are in school at least at least half time.
A subsidized student loan means the clock starts ticking for interest accrual when payment is made to the school.
I hope this has helped a bit. The request was vague on 529 plans, but if there is something more indepth that is needed leave me a comment and I will do my best to accommodate.
I have a girlfriend who is embarking on a new and exciting business. She is starting to make money and asked my opinion on what to do with it. She isn't interested in adding it to the household budget at the moment because she doesn't want to become dependent on it and she isn't interested in adding it to their regular savings. My suggestion would be to open up a separate savings account for it.
The other thing to think about when starting a small business is keeping your personal and business accounts separate. It is much easier to track income and expenses when you have a separate account. And it simplifies life at tax time. Start a file with all work related items tossed in there. Be sure to have invoices tracking the sales and income. Now this doesn't have to be complicated. As you get busier then you can add a computer program to track all money transactions, print invoices, and other reports. In the beginning Keep It Simple. As you move along in this fashion you will find what you need the most help with and then can decide on the software that meets that need.
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I can truly appreciate not wanting to depend on the income from a new venture. We never depend on my income in our daily lives. That is our "fun" money. We don't depend on my income for a few reasons. One of them is that we move frequently so my income becomes fleeting. And another is if push came to shove and one of us HAD to stay home to care for the kids or an ailing parent some day then we could make that decision easier.
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Here's an update on my Lenten challenge...as of today we have "saved" almost $400. I am calculating that based on the credit card statement ending balance last month and the one this month. We are pretty happy with the results so far. Even the littles are getting in on the challenge. As we drove by Mellow Mushroom today, one of them mentioned that we haven't been there lately. The other responded that it is non-essential spending LOL Then she proceeded to critique my spending lately...even funnier!
One of my trade-mentors posted a video on his FB page from TED. It was a very inspirational video by Shawn Achor called The happy secret to better work. It is 12 mins long but well worth your time.
As I was perusing the site to find out more about TED I came across a video that ALL my girlfriends need to watch. It is about saving. It is about starting small and starting tomorrow. This is a concept that I have discussed time and again with some of you....take a piece of that pay increase every year and start savings. If you start with just 3% of your salary in year one, then in 4 years you will be over 12%. And here is the best part, you won't have to take from your current standard of living. So you CAN save and increase the savings. Here's the link: Saving more tomorrow. It is a 17 min video. You will get a lot out of it.
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Here's another question from one of my girlfriends: I have some derogatory information on my credit report and heard that it can be removed. Is that true?
The answer is Yes, But. If there is information on your credit report that is not yours then you have the right to contact the credit reporting agency asking them to correct the information. We, consumers, are protected by the federal Fair Credit Reporting Act (FCRA) which "promotes the accuracy and privacy of information in the files of the nation’s credit reporting companies." (quoted from www.ftc.gov)
The 1st thing you need to do is put in writing the information you believe is inaccurate. Include copies of any documentation that would further strengthen your position. Be sure to send the letter return receipt to confirm that it was received. The credit reporting agency has 30 days to investigate your claim. If there is no response or the company can't prove the information isn't accurate then the credit reporting agency MUST remove the derogatory information from your report. On the other hand, if the information is disputed by the company, the information will stay on your report for 7 years from the time it was reported as derogatory (when a company starts their "aging" clock will vary so this is an estimation). The further away from the original date the less the derogatory information will affect your report.
Here is a link to a sample letter on the FTC website: Sample Letter
As I just mentioned, derogatory information will fall off your report after 7 years, but that doesn't mean it will necessarily "go away." If that information is believed valid by the original creditor and it is an outstanding bill, it will have probably have been sent to a collection agency. The collection agency will have paid a small fee for your outstanding debt to the originial creditor. For example you owed XYZ $1000. You defaulted on said debt in 2002. XYZ finally got tired of calling you and sold the debt to ABC Collections for $200. ABC Collections will attempt to collect the $1000 but will negotiate with you.
There is a statute of limitations on collecting debt and it varies by state. Here's a good map Statutes of Limitations by State. As a caution, though, debt collectors can still attempt to collect "time-barred debts." It is up to the consumer to be vigilant. If a debt collector calls and you know the statute of limitations has run out do NOT have a discussion acknowledging said debt. This will RESTART the clock. Yep, that is right, the old debt will have a new date. This is called "re-aging." Should you be contacted by a debt collector always ask for them to send you information in writing. This will give you time to research the debt and the statute of limitations.
The other very salient point I must make is OPEN YOUR MAIL!! All of it. Read it. Don't bury it because it is bad news. You can be sued by a creditor and your ignorance of said lawsuit is no excuse.
Back to our example... You live in Indiana. It is now 2005 and ABC Collections is calling. They have the right to continue to attempt to collect the debt. You have the right to ask them to send you more information on the debt and/or stop contacting you. They may even sue you. It is their right. Let's say they do nothing and 4 years go by. Since it is 7 years since the debt was reported as derogatory it has past it's statute of limitations in Indiana.
~~~~~~~~~~ Things happen in life. Having poor credit is not the end of the world and it can be fixed. Trust me on this. I had horrible credit 20 years ago. I was sued and had a judgement against me. With vigilance I was able to pull myself out of that mess. I am determined to never be in that position again. The worst part of poor credit, to me, was the shame that goes along with it. And yes, poor credit will affect your ability to get a job, an apartment, a mortgage loan, etc. It is truly in your best interest to know what is on your report. I know I put this in a previous post, but it is worth noting again Annual Credit Report is the best link to access the 3 credit reporting agencies.
I am honored that so many of you having been reading my ramblings. I am even more honored when you contact me with questions for advice or just in general on a topic. I am going to start including some of the questions minus any identifying information. The questions range from basic debt questions to more complex insurance concerns. And yes, I will get to 529s...you know who you are hehehehe I just want to make sure I am a bit more up to date on any changes.
So the one question I had recently concerned paying off debt with a mutual fund. Should this couple take their underperforming mutual fund and pay off a car payment and some credit card debt. This would free up between $400-$500 per month. I had to think about this for a bit. I am not Suze Orman, afterall. I asked some more questions...how long on the car payment? What are the plans for the "freed" up dollars.
Here was my response: Sorry it has taken me so long to get back to you. I think I would keep the mutual fund. If you need the extra cash then stop funding it and take the extra $100 and put it to the CC debt. Here's why: The mutual fund was bought by with dollar cost averaging...you bought high and low. I wouldn't want you to "lose" money by selling when it is low.
The other reason is that the truck payment is already budgeted in. Yeah, I know things are tight with the credit card payment, but this is temporary. If you sell the mutual fund then you don't have that money for a true emergency. This period of time is uncomfortable, not an emergency. Plus, I am unclear as to what you would do with all the "extra" monthly cash.
A couple of things I want to point out...first, this is just MY opinion, second, someone else may have a totally different opinion and that is okay.
I think the thing I got from this question was how uncomfortable this girlfriend was with her debt level. I can appreciate that. If this was a true emergency, medical bills, no job, heading to bankruptcy, etc. I might have answered differently. Instead this was just about a "comfort" level and emotions can be managed.
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I have a Lenten challenge update....it is going great!! Seriously. I am so happy that I will not have to "borrow" money from our savings to pay the credit card bill. Paying the credit card bill off every month is non-negotiable for us. We implemented that rule years ago and no matter how painful it is we accomplish it. And yes, we use a credit card. Our credit card gives us points. We can either "buy" things with our rewards or we can have Bank of America cut us a check when we earn a certain number of points. We like getting the cash.
Which leads me to interest rates on credit cards...do you know what yours is/are? And if you pay off your credit card every month, does it matter? I think our BoA credit card is 9.99%, but I don't know. It doesn't matter to me since I don't pay interest. We received something from Lowe's the other day regarding policy changes and I was floored to see the interest rate over 24%. Holy Hannah!! I can't remember the last time we used that card. If we ever use it in the future it will be for a 0% deal. We only do that if we know we can pay it off when the date arrives. That is another non-negotiable.
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Now I must tell you, I do NOT sit in judgement of my girlfriends when they spend money. Truly. It is your money. Please do not be uncomfortable around me and money. I am hardly perfect. I love to peruse the $1 bin at Target as much as the next girl...just not this Lenten season LOL. I am happy though that this blog has gotten so many of you more in tune to your finances. I love the conversation. I could talk money and finances all day, but that would bore you all so this is a perfect venue.
I do have a favor though...I need comments on here. Someday I would like to make money off this (of course....duh!). Not from you all, per se, but from putting ads on here. I am not there yet, but having "comment" traffic would help so "comment" away! Thanks!
So what are your plans when you retire? When are you going to retire? Where will you retire? Now, we are no where near "retirement age", whatever that means anymore, but people always ask. To be fair, they ask because my husband is active duty military. We are bumping up against a full military career so people ask the inevitable "what's next?" question.
We have had a paradigm shift when it comes to retirement. We will probably never retire from doing something. We weren't born that way. We enjoy all that we do. Are we going to slog at jobs we hate because we have to? I sure hope not. That is where "retirement planning" comes into play. Saving for our future is very important. With that said, how we manage that piece is now different. We don't have an arbitrary number in our heads of what we think we need or what someone else thinks we need. There was a time I would calculate out for us and for others what their "number" for the future should be. Not anymore. I was younger and bought into the hype of the "number." I laugh when I see that commercial...do you know that commercial I am talking about...people running around with their "number?" The one thing I think they get right is that the "number" is different for everyone. And our "number" has gotten smaller. Our needs and wants have lessened as we have gotten older.
What got me thinking about this today was an article I read today titled Retiring, But Not. The premise of the article is that the supposed retired people in America are still looking for work, particularly part-time, to fill up their day. The woman started the article by discussing her mother's situation when she applied for a part-time job at the library. It got me thinking about my own mother and discussions we have been having lately. My mother is eligible to collect social security next year. She had been looking forward to retirement for years. Now that it is just about here I have asked what she plans on doing during said retirement. She has no idea. She thinks she may keep working. She knew that social security alone wouldn't be enough, but she has been widowed recently and her circumstances have changed as have her retirement plans. Funny thing about plans, they change and need to be updated.
I think what most people want is choice. By that I mean, people don't want to feel like they have to continue if they don't want to. And that is where our "number" comes into play. That "number" gives us freedom to choose what we want to do as oppose to what we have to do. See I am pro-choice afterall! hahaha (just couldn't help myself!)
I talked about this with savings in one of my earlier posts. Having money in the bank gives us options. Having money in a retirement vehicle, whether it is a Roth or Traditional IRA, a 401k, a 403(b), TSP, or some other pension plan, gives us more dignified options when we are older.
Have you ever thought about retirement like that? Or are you just chasing a "number?"
I had a conversation with a friend today about financing college for children. You all probably know how I feel about that, if not there is a blog in the archive section that will enlighten you. I mentioned to said friend that I wouldn't lose sleep if my children took on a trade. A book I read years ago, and still refer to often, had interesting conclusions regarding who millionaires in this country actually are. They tend to be tradesmen and/or craftsmen. The book is The Millionaire Next Door: The Surprising Secrets of America's Wealthy by Thomas J. Stanley and William Danko.
My friend knows a plumber who he considers wealthy. Said plumber owns a large house, a couple of boats, and some other expensive toys. What I found intriguing was how my friend equated the stuff the person had acquired to the person's wealth. Most of us do that....so-and-so must have a lot of money because they own this-or-that. Actually, that may not be true. Most of us own big ticket toys with big ticket loans attached to them. The truly wealthy have gotten that way through hard work and savings. They don't tend to flaunt their wealth. I'm not referring to celebrities. I am referring to your neighbors who may be wealthy.
I remember a couple of years ago when one of my nieces and I had a text-conversation about name brand stuff. I told her that the fancy bag is a great way to tell someone you overpaid for a purse. And it just added some more cushion to the CEO's bank account. The wanna-be's, that's us, purchase name brand stuff for the appearance of what it says about us. What it says about us is that the marketing machine is doing a great job. I know I sound cynical because I am cynical.
I know I did a post on "getting what you pay for". I still stand by that post. I think there is something to be said about quality products. What I don't do though is purchase items for the sheer delight in knowing you know how expensive the item is. I purchase quality products, like sheets and bath towels, that most of you won't ever have the opportunity to see. When a woman purchases a $300 purse all the other ladies around her KNOW how much the purse costs and we make judgements on her and her purchase. Not very Christian-like, but that is how it is.
This is a huge barrier to savings, IMHO. Needing to keep up with the Jones' is detrimental to saving for your emergency fund or the future. Ask yourself what would happen if you didn't shop at a name brand department store or didn't buy that fancy purse. There are psychological challenges we all face regarding money. Where we come from and how we perceive money and wealth play into how we spend or save money.
One phenomena I have observed, very unscientifically (I am sure there is a study somewhere but I haven't looked for it) is the beautiful new cars in low-income areas. The reason, again IMHO, is probably because the low-income residents equate wealth with owning "stuff."
I use to be that person. I use to think that I needed to "stuff" to prove I have made it out of the poverty I grew up in. Not anymore. The game is on to see how much stuff we can live without. I much prefer to see how much I can save. How 'bout you? Are you still accumulating stuff or have you figured it out yet?
Finally a minute to sit down and spend some time with you. It has been very hectic here lately. We have 2 birthdays within 3 weeks of each other, plus I have 3 Thirty-One parties to close within the next few days.
I have had a couple of interesting situations come along concerning my Lenten challenges of "no non-essential spending." One is on the subject of gift cards. Can I use a gift card that I already own? Does that count? Some people have responded on my FB page that it is already money spent. What do you think?
The other interesting question concerns birthday parties of friends' children. Is their gift essential or non-essential? My husband says essential. I know, I know, we can make a gift and it's the thought that counts, but really? Would you do that? Am I being "too" frugal? I do re-use packing paper as gift wrap and have the kids decorate it so we save on wrapping paper. I was just thinking I may let the kids make a gift for a close friend. It would be more personalized that way. Isn't that an interesting thought process? We will make a gift for a close friend and not worry about being too frugal, but worry how I will appear to a not-so-close friend....hmmmmmm.....
On to another topic...that one was getting too intense for me to continue to contemplate. Feel free to express yourself in the comments. And please feel free to share the blog.
I asked my 22 year old yesterday what one piece of financial advice, that I have given her, she is most thankful for. She didn't hesitate. She told me she is grateful that I have nagged her to no-end to start saving. (truth be told she never said she was grateful for my nagging...hehehe) She had a flat tire over the weekend and had enough money in her savings account to replace it. She is getting ready to move into her first apartment this summer and is grateful that she has money to help her get started. She then went on to tell me how she tells her friends that they need to save some money no matter what. I started laughing. This is a girl who I have nagged and nagged to "get it together" and now she is giving financial advice. I love it!!
One thing I made clear to our oldest is that being fiscally irresponsible was not an option while she lives with us. If she so chooses that route then she has to move out. I am not joking about this. There is no excuse not to know how to set up a spending plan or have a savings account when your mother is an accredited financial counselor. It has been a long, slow process, but I feel she is finally on board.
And that is half the battle with anything....are YOU ready? No matter how hard I pushed our oldest, yelled, nagged, you name it, she wasn't going to start saving money or stop being irresponsible until SHE was ready. When she finally understood the magnitude of some of the upcoming expenses she had, I think it finally sunk in. It helps to see such a nice sum in the savings account too I'm sure.
So are YOU ready? What is preventing you from saving? I have the opportunity to get published in a newsletter on this very topic and I would love your help in identifying some of the barriers to savings that are out there. And no, I will not use your name :)
I read an article in the National Catholic Register that gave some "tips" on what to give up for the Lenten season. As I was reading I was thinking "we do that already, yep, and that, oooh that's intriguing." So I proposed the intriguing idea to The Man last night. He was intrigued also. Our Lenten sacrifice is NO NON-ESSENTIAL SPENDING. Yep, you read that correctly.
We will still buy gas for the cars, grocery shop for the kids who hate my dinners, and pay the utilities. But what will be curtailed are the little Amazon shopping trips because there is a buffer in the spending plan.
I will say I am a tad nervous about this challenge. I wasn't sure how The Man was going to respond. He jumped on board right away and my heart started racing. Can I do this? What if....?? Nope. Not allowed. After all, Jesus Christ gave up his life for us, the least I can do is put down the dang credit card, don't ya' think?
We did make an agreement though to continue with birthday party plans for the 2 little ones. Both have birthdays during the Lenten season and plans are under way already. That only seems fair.
Wish me luck. Join me. I dare you :)
Saturday, February 18, 2012
"Student Loan Crisis Busts Retirement Savings"This is the headline of the following article I found on CNBC :
Parents who borrow money to pay for their children's college education are exacerbating a growing student loan crisis.
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Many parents who co-signed loans or borrowed money on their own for their children's education now face the loss of their retirement nest eggs, homes and other assets.
Student loan debtamassed by parents is growing faster than loans taken out by the student.
Parents' loan debt has more than doubled over the last decade — exceeding $100 billion dollars or 10 percent of all outstanding student loan debt, according to the independent research firm FinAid.org.
"Parents of every income level are increasingly borrowing for their children's college education. It doesn't matter whether the parents are low income, middle income or upper income. There's been dramatic growth in the percentages of parents who've been borrowing," says FinAid.org founder and publisher Mark Kantrowitz.
Many parents who co-signed loans or borrowed money on their own for their children's education now face the loss of their retirement nest eggs, homes and other assets. As student loan debt has topped U.S. credit card debt, "America faces the very real possibility of another major threat on par with the devastating home mortgage crisis," according to a new study by the National Association of Consumer Bankruptcy Attorneys (NACBA).
Piling up student loans in middle age is "troublesome", says NACBA vice president John Rao, an attorney with the National Consumer Law Center. "Parents who take out loans for children or co-sign loans will find those loans more difficult to pay as they stop working and their incomes decline."
But, parents' need to borrow has grown as their savings has declined and plummeting home values have made it difficult for many households to tap what was once a common financial resource — the equity in their homes.
Parents have an average of about $34,000 in student loans and that figure rises to $50,000, including interest, over a standard 10-year loan repayment period. Interest rates on the most common parental loan — the federal Parent "PLUS" loan — is fixed at almost 8 percent. So the return on parents' investments needs to average at least 8 percent just to break even.
The fixed-rate PLUS loan is often a better choice for families than private student loans, whose rates may vary. But the need to borrow private or PLUS is often a sign of over borrowing, Kantrowitz says.
"Parents should borrow no more than they can afford to pay in 10 years because they have to worry about their own retirement. By the time they retire, they should have no debt remaining since they will have no income to repay that debt."
THIS is precisely what I was talking about in a previous post. I can NOT fathom taking out loans in MY name for my child. Seriously? Are you kidding me? Clearly not since so many parents are doing just that. Yes, I love my children and yes, I want what is best for them, but I have given and still give them the tools they need to get scholarships or jobs to pay for college.
What about the outrageous tuition at different schools? What about the debt they will have when they graduate? Well, first, if they want to attend such an institution then they need to find a way to pay for it. There is ROTC or straight up academic or athletic scholarships. Their debt is not our problem, in my and my husband's opinion. They are adults. Classifying them as anything other than adults is not accurate. 18 is the age of majority. They can vote and they can enlist in the military. I don't have access to your medical records anymore. You are an adult. Done.
And here is some irony with age....the FAFSA (Free Application for Federal Student Aid) form still requires the parent's income. Why? I am not sure how my adult child is still considered my responsibility. No, I am not ignorant, I know, they are still my dependent IF I claim them on my taxes, but when I no longer do claim them then we shouldn't count on their FAFSA. Not so. Even if we don't claim, the parental income is still needed. I am sooooo unhappy about that. I don't get it. Maybe someone smarter than me can explain this.
Let me give you an example....our oldest works a full-time job. She lives home (not rent free mind you, we aren't that nice lol). We have NOT claimed her as a dependent for 2 years now. Doesn't matter. When she applied for financial aid they still asked for our information. We refused. They made her sign some form and she didn't qualify for anything. She was penalized. Nice, huh? She is 22!! How is she still our responsibility financially??? I don't get!!
Yesterday I read an article on CNBC titled As Investment, Renting Beats Owning "100 percent of time." I had to think and stew on this for a while after I read the article. Here is the article in it's entirety:
Rich Arzaga owns a luxury home in San Ramon, California, but he's not betting on it as an investment.
The founder and CEO of Cornerstone Wealth Management, who bought the 5,000 sq. ft. property in 2005 for $1.8 million and has spent $500,000 improving it, considers the abode a wonderful place for his family. But ask him to rate his home — or any home, for that matter — as a financial investment, and Arzaga balks.
"It's the American Dream to own a home, but whoever said that didn't do the analysis on it," says Arzaga, knowing he's taking a contrarian stance to conventional wisdom.
Examining 250 properties around the U.S., and going through close to 40 client files to project the financial impact of owning real estate versus liquidating it, Arzaga, an adjunct professor in personal finance at the University of California at Berkeley, found that, "100 percent of the time it was better to rent, rather than own."
That's right: 100 percent.
The reason is simple. While a home is the main repository of wealth for many Americans, it comes with numerous hefty expenses. The carrying costs — what's needed to hold and maintain the asset — range from property taxes and home insurance to emergency repairs and renovations.
In a rental situation, the landlord covers those costs, leaving the occupant free to invest revenue in other areas.
"I don't have the emotions a lot of people do surrounding real estate," Arzaga says. "I have steely eyes for how investing in real estate works, and I'd better be a prudent investor for my clients."
Owning a dream home, he says, creates a drain on other financial priorities, causing homeowners "not to meet their financial goals. They were going to fail."
Some real estate experts thought there was some truth to Arzaga's argument, albeit with several conditions.
"To state that owning a home is or isn't a good investment is too simplistic," says Jeffrey Rogers, president and COO of Integra Realty Resources. "It depends. In times of relatively higher rents, low home values, and low interest rates, it makes sense to own a home. But in a reverse market, it wouldn't be economically feasible. Over time, those who purchase in down or flat markets with low interest rates come out ahead."
"Our lifetimes are a long time, and when we look over the long term, real estate and other investments tend to have a positive return," says Jed Kolko, chief economist at Trulia.com, a real estate search and research website.
"But when it comes to real estate, changing your mind is expensive. There are a lot of costs involved in buying, selling and moving. If you move every two years, it's probably a bad investment for you. It also depends on your job market. If you're in a one-company town and the company goes down, there goes your job and there goes your home value."
Greg McBride, a senior analyst at Bankrate.com, agrees with one point of Arzaga's. "Home ownership is not so much a creator of wealth as a store of wealth," he says. "The promise of home ownership is that over the long haul, it can rebate many or perhaps all of your costs, unlike rent, which doesn't rebate a dime."
The trouble, he says, is that many Americans want a home so badly, they neglect other ways to grow wealth and financial security.
"You have the other financial bases covered: emergency savings, retirement savings, paying off debt, saving for the education of your children," McBride says. "There's no sense in buying a home if it's going to deplete your emergency or retirement savings."
McBride crunched the numbers in a pre-bubble era (2004) for a home purchased at $200,000 by a buyer in the 27 percent marginal tax bracket. Factoring in a 30-year mortgage, $1,200 in annual home insurance, closing costs of $5,500 and maintenance costs of $100 a month, along with property taxes, he calculated that it would take a selling price, 10 years later, of $395,404 just to break even. His conclusion gave Arzaga's view credence: "Homeownership may not be the moneymaker you think it is."
Then there's the emergency fund, a must for when a home requires unexpected repair work.
"As far as emergency savings is concerned, six months of a cushion is adequate," McBride says. "But only 24 percent of people have that kind of cushion, and about 65 percent own homes."
So while home ownership may sound glamorous, you need a lot of money to make it work, without much guarantee of positive returns in a post-bubble era. Indeed, Arzaga cites himself as an example of how home ownership doesn't pay off. His residence is today worth $1.5 million, about 17 percent less than what he paid.
So why not sell? For Arzaga, it's a lifestyle choice, and one that he doesn't regret, since his big money-making investments are elsewhere.
Here's what I think, and a couple of my friends on Facebook concur, not all the value in homeownership is tangible. A lot of the value in owning a home, to me and my husband, is that it is ours. We rented a house for the first time last year and it wasn't a pleasant experience at all. It started well and quickly went downhill when the house was put on the market for sale. Our lives turned upside down. We had to be available for showings at all times. Granted we were given 24 hour notice, but sometimes we had other things scheduled which made that difficult. The other hard part is having workmen milling about when things were being repaired or improved. It was very disruptive. Plus, some of the workmen were sketchy looking to say the least. I have a newfound respect for our former tenants and what we must have put them through.
Purely from an investment standpoint I wholeheartedly agree with this statement: "Home ownership is not so much a creator of wealth as a store of wealth." Gone are the glory days of rapidly rising market values. We purchased our current home as an investment. We are in an unusual area that sees a lot of short term renters passing through. Most people aren't going to purchase if they are only here for a year or two. We are willing to park our money in this investment. The goal is to pay the house off early and have the passive income supplement what ever we have available in retirement. Yes, we will need to do periodic repairs and improvements, but we have entered this phase with lots of experience in home ownership under our belts...this is house number 4.
The gentleman who has taken the contrarian point of view to most of society purchased a LUXURY home. Yeah, most people I know and hang out with do not own homes in that price range. One thing I think about when we purchase a home is will our lives "fit" in this home? In other words, will I need to totally upgrade our furniture or even add pieces to fill the rooms. That's not to say that I am opposed to adding a few pieces here in there, but I am not interested in having to get furniture that is "above" the way we live. Owning a luxury home or even a home with too much square feet is not for me either. Besides having to fill the house, someone will have to clean it and that someone is usually me. And lastly, the utility factors are always thought about. I am not interested in heating or cooling a McMansion. I am too frugal for that.
I was going to blog more on other types of retirement vehicles that you may run across, but I have heard from a couple of my girlfriends this week about debt and credit issues.
Let's start with credit since it is the thing most people start out thinking they need to build and then proceed to fall into debt. Sounds romantic, doesn't it? "Fall into debt." Yeah, not so much. Do you need credit? Yes, you do. I know there are some old timers out there who insist that they never needed credit and paid for everything in cash. I even know of a financial guru who swears that you should pay for everything, to include your car and house, in cash. That is all well and good, but most mere mortals can't do that. And if you want that car or house you need good credit to get a good interest rate and the loan.
Now to be fair to those that do save and pay cash for their vehicles, good on you. You have learned to delay gratification and have amazing discipline to save that kind of cash. And good on you if you only buy used vehicles. You are correct, you will save lots of money that way. (See, I already anticipate some of the naysayers...I've been doing this awhile hehehe)
So, first things first. You need to check your credit report. The best website to use, IMHO, is Annual Credit Report. This is NOT the one with the cute and funny jingle on tv. Once you are at this site and put in some data, check the box to only get 1 report at a time. There is a method to my madness. You are only entitled to 1 free credit report per year. If you pull Experian (name of credit reporting agency) in January, for example, then you can pull the TransUnion report in May and the Equifax report in September. Then the following January you can do it all over again. Most of the information is the same across reports. Pulling your reports in this fashion allows you to monitor your own reports without having to pay for costly "credit monitoring".
You will not get your credit score with your report unless you pay for it. The only thing that is free is the actual report. There is a Frequently Asked Questions tab on the home page. Peruse it before proceeding.
So now you have your credit report in your hot little hands, or more precisely on your computer screen. What the heck does it all mean? Well, scroll through the tabs and down through the report to see all the creditors that say you have or had accounts with them. Make a note of any discrepancies. These will be items you will want to dispute. You want your credit report to be as accurate as possible.
Now there are many, many people giving their opinions about closing accounts and how that will affect your credit score. I went to this link Bankrate and found a question and answer section between Bankrate and a FICO product support person. Bottom line, if you close an account that is in good standing, that account will fall off your credit report after 10 years. Not a good thing. If you leave it open, the account will stay on your report indefinitely. As long as it was in good standing this is a good thing. Check out the question and answers on the link.
So now we have credit. There is different kinds of credit debt. There are revolving loans and credit cards. There are installment loans (car loans, personal loans). There are bank credit cards and store credit cards. Most people get into trouble because they have used too much of their available credit. There is usually too much month left at the end of the money. If you find yourself in this position it is time to get a handle on this problem.
This is where your spending plan comes into play. You need to know where your money is being spent every month...down to the penny. Seriously. I know it is work, but if you want to get out of debt you will do this. Once you know where your money is being spent then you need to make some changes to start paying down debt. This website PowerPay is my absolute favorite website for helping figure out when you will get out of debt. You have to sign in to use the site but it is free. You input all your debt data to include balances, minimum pays, and interest rates. It will calculate an "end date" to your debt if you do nothing else but what you are doing assuming you are paying on the debt..
Most people will not like that result, so I will encourage you to number your debt by priority. This is a very personal issue. I know, I know, talking heads, your mother, your brother's uncle, your cube mate, and your babysitter will all tell you the best way to pay down your debt....highest balance first, highest interest rate first, etc,etc. I do things differently. First I ask if there is a personal attachment to which piece of debt gets paid off first. Most people don't care, but some have a preference. If there isn't a preference, I tell the person to pay off the smallest debt first. I don't care about interest rate at this point. I care about the psychology behind this. When you pay off a bill there is a sense of accomplishment..."Woo-hoo! I did it!!" If you continue to slog away at the highest balance it can seem like f-o-r-e-v-e-r to get there. People will quit. It's like dieting. If the scale doesn't move downward after a week or two, most people will get discouraged and want to throw in the towel. It's the same thing with getting out of debt.
Okay, so now you have paid off that first credit card. Put the monthly dollars used to pay off that credit card onto the next debt on your list and so on. Paying off your debt in this fashion will not require you to adjust your spending plan if you are only using the money you currently have allocated. If you don't have money allocated to outstanding debt then drastic adjustments need to be made.
PowerPay will also allow you to show how a lump sum payment onto debt will affect your payoff time. It is tax refund season and alot of you will be putting your new-found cash onto outstanding debt.
As always, email me or leave me comments if you have any questions. I'm here for you girlfriend. Good luck!
I, of course, have an opinion on this subject, but first I will lay out the differences to them and how they pertain to mutual funds.
A Roth IRA (heretofore referred to as RIRA) and a Tradtional IRA (heretofore referred to as TIRA) are retirement vehicles. By that I mean, they are designed to help you have a retirement income, the market willing. So you put money into these investments and they grow to a nest egg. I say, market willing, because there is NO GUARANTEE that the investment you put your money into will grow at all and it could even lose money. That is the sad truth about the stock market. But overall the actual long term rate of return is better than a savings bond. Here is a website you can put dates into and adjust for inflation to find out rate of return over a specific period of time. Remember, though, someone trying to sell you something will show you rates of return that are positive, more times than not. Play around with the dates. Say, what if I started investing January 1, 2000, what return would I have realized by December 31, 2011? I used this site Compound Annual Growth Rate. My average return was only -.13% and annualized return was actually -1.93%. Ouch!
Now change the dates to January 1, 1990 to December 31, 2011. The average return is 7.12% and annualized return is 5.14%. When I change the dates to January 1, 1980 to December 31, 2011 the average return is over 8% and annualized return is over 7%. What does this mean to you? Well, what I would think just looking at the raw data is that the longer I stay invested the better my return. Do you see the same thing? When I look at the yearly breakdowns on the site I see that there are some really good years and some really bad years. The market is cyclical. It goes up and down. Just be prepared to stick it out through thick and thin if this is route you intend to take.
Okay, enough about returns. Let's talk more about the differences between the TIRA and the RIRA (did you remember what they meant? You didn't know there would be a pop quiz did you? lol). In a nutshell the TIRA is what is called TAX DEFERRED. In other words, you can right off the amount you invest yearly (most of the time...we will discuss further in a minute) from your taxes, but the amount you finally withdraw after 59 1/2 is taxed at your new tax rate. Everything you put in and all the earnings are taxed. The RIRA, on the other hand, is TAX FREE. You can't deduct any amount from your taxes. But all the money that you put in and all the money your money earned is not taxed when you finally withdraw it at after age 59 1/2.
As you notice, I referred to an age....59 1/2. That is the age that was designated as the beginning of "retirement." Another age that is important is 70 1/2. With a TIRA you are required to start withdrawing funds whether you need them or not. Not so with the RIRA. You never have to withdraw funds from your RIRA. Here's the thing, though, once you start withdrawing you have to continue. And there are rules governing the withdrawal...yep rules and rules. This isn't a spigot you can stop.
Also, if you decide you are in dire financial straits and need the money from your TIRA, you can withdraw money, but you will be fined a 10% penalty, plus you will pay taxes on the money withdrawn. This is usually a big enough deterrent to stop people from using their IRAs as a savings account. There are exceptions to the penalty and the rules are found here: IRS From this link you can follow links to other publications. Now with a RIRA the rules are a little different. You may withdraw the amount you put into the RIRA per this: It is made after the 5-year period beginning with the first taxable year for which a contribution was made to a Roth IRA set up for yourbenefit, and the payment or distribution is: made on or after the date you reach age 59½, made because you are disabled, made to a beneficiary or to your estate after your death, or one that meets the requirements listed under First homeunder Exceptions in chapter 1 of Publication 590 (up to a $10,000 lifetime limit).
I hope I haven't confused you too much at this point. Now an IRA, either one, can be opened using either a mutual fund, a savings account, or you can individually trade stocks through a brokerage account. I would NOT suggest this last option unless you are schooled in the nuances of trading. So when you tell me that you have an IRA and a mutual fund I will ask what your IRA is invested in and then gently remind you that your IRA is in a mutual fund (more times than not). A "mutual fund" that is separate is from your IRA is a taxable investment vehicle that is not intended for retirement usually.
Oh yeah, before I forget, your Individual Retirement Account has contribution limits. It is $5,000 per year, unless you are over 50 and that limit is $6,000 per year. And that is all based on your Adjusted Gross Income (AGI on your 1040). Refer to the link above to get specifics or email me and I will help you if you have concerns.
Here's the kicker, my girlfriends, you can contribute the maximum amount to your IRA whether or not you have earned income in your name. And let me suggest you do so. Now. Do this before the kids' education. (find my post on that in the archive section)
The title Individual Retirement Account means just that...it is for the individual who's name is on the account. Just because your spouse, Jim Bob, has an account does not mean you have an IRA. You may be the beneficiary, but when push comes to shove that account is Jim Bob's. Get your own. Demand your own. You are entitled.
I told you at the beginning that I have an opinion as to which type of IRA I prefer...it is the RIRA. I like the idea of tax-free later in life. My life has been busy and complicated enough so far. I want simple during my sunset years. That's my 2 cents :)
