Personal Finance News Thursday 1/31

Phil's Personal Finance Tip of the Day:

10 tips for boomers to become entrepreneurs

By Andrea Coombes/MarketWatch

SAN FRANCISCO (MarketWatch)—The urge to strike out on their own and start a business strikes many mature workers, but all too often missteps put startups on the wrong side of the statistics.

Only about half of new companies make it past their fifth year, according to the Bureau of Labor Statistics. See the BLS data here.

“People should not buy the myth that all they need is a good idea,” said Nancy Strojny, chairwoman of the Portland, Maine, chapter of SCORE, a nonprofit that offers free mentoring to aspiring business owners.

“In reality, it’s never the idea, it’s always the execution,” said Strojny, who is also principal of her own business, Beauty Vantage Consulting, a marketing firm focused on the hotel industry.

The good news is older adults often have the unique skills needed to start a business.

“They know how to get information, connect with people, ask good questions. They come with experience and wisdom, know-how and focus,” said Helen Dennis, a writer and consultant focusing on aging and employment. She is co-author of “Project Renewment: The First Retirement Model for Career Women.”

To read the entire article from Andrea Coombes/MarketWatch:
http://www.marketwatch.com/story/10-tips-for-boomers-to-become-entrepreneurs-2013-01-14?pagenumber=1

Inspirational Quotes@Inspire_Us from Twitter:

Learn how to be happy with what you have while you pursue all that you want. - Jim Rohn

Hi my name is Philip J. Miano and I am the founder of PJM Personal Finance and Productivity Coaching specializing in Budgeting, Debt Reduction, Bank Reconciliations, Goal Setting, Time Management, and Organizational skills. Please visit my website: http://pjmcoaching.com

Personal Finance News Wednesday 1/30

Phil's Personal Finance Tip of the Day:

Why You Should Open a Roth IRA

By Emily Brandon | U.S.News & World Report LP 

Traditional 401(k)s and IRAs give you a tax break while you're saving for retirement, but income tax is due on each withdrawal from the account. With a Roth IRA, you contribute after-tax dollars, but withdrawals from these accounts, including the earnings, are often tax-free. To decide which type of retirement account is best for you, you need to compare your current tax rate to what you think your tax rate will be in retirement.

"If you will be in the same or a higher tax bracket in retirement, the Roth IRA is the better choice," says William Keffer, a certified financial planner for Keffer Financial Planning in Wheaton, Ill. "If you will be in a lower bracket in retirement, then the benefit is much less if existent at all." Here are some reasons to do at least some of your retirement saving in a Roth IRA:

Retirement flexibility. Retirees are required to take distributions from their traditional 401(k)s and IRAs each year after age 70 1/2, and income tax is due on each withdrawal. The penalty for failing to take required minimum distributions is a 50 percent excise tax on the amount that should have been withdrawn in addition to the regular income tax due on the withdrawal. But retirees are not required to take annual distributions from Roth accounts, which gives them more flexibility to withdraw the money only when they need it.

[Read: An Innovative Way to Face Retirement.]

Tax diversification. Having some of your retirement money in pre-tax accounts and some in after-tax accounts adds tax diversification to your portfolio. "If you can do both, do both. You're diversifying the tax characteristics of your retirement money," says Neal Van Zutphen, a certified financial planner and president of Intrinsic Wealth Counsel in Mesa, Ariz. "When I'm in retirement, I may be able to manage my taxable income and still meet my retirement needs by only taking so much out of my traditional IRA and taking the rest out of my Roth IRA to keep me in the lowest tax bracket." Whether or not your Social Security benefits will be taxable is dependent on your adjusted gross income and traditional IRA withdrawals--but not Roth IRA distributions--count as income.

To read the entire article from Emily Brandon | U.S.News & World Report LP:
http://finance.yahoo.com/news/why-open-roth-ira-151137320.html

Inspirational Quotes@Inspire_Us from Twitter:
Don't wait. The time will never be just right. -Napoleon Hill

Hi my name is Philip J. Miano and I am the founder of PJM Personal Finance and Productivity Coaching specializing in Budgeting, Debt Reduction, Bank Reconciliations, Goal Setting, Time Management, and Organizational skills. Please visit my website: http://pjmcoaching.com

Personal Finance News Tuesday 1/29

Phil's Personal Finance Tip of the Day:

Are You Planning a Big Life Change This Year?

By Andrea Coombes | The Wall Street Journal – Fri, Jan 25, 2013

Life goes on. If you are anticipating some major changes in 2013, you'll need to do some planning.

Here's a checklist of essential money strategies to consider before you take one of these five key steps in your life.

So, if you're ...

... Getting Married, Then

Talk with your intended about money. Discussing finances before the wedding can help forestall disagreements that can ruin a marriage.

"Money is an area of intimacy that a lot of couples heading into marriage have not yet addressed," says Maura Griffin, chief executive of New York-based Blue Spark Financial. The conversation should include a discussion of the couple's money values and earliest money memories. That "sets the stage for being open about money," she says.

[More from WSJ.com: How Good Is Your Company's 401(k)?]

Get specific. Create a budget for managing expenses, discuss how to pay down debt outstanding, talk about specific savings goals and compare investing philosophies.

Decide how to merge finances. Some planners suggest separate checking accounts in addition to a shared account, but Randy Warren, chief investment officer with Warren Financial Service in Exton, Pa., says all of a couple's money should be pooled.

"If you want your marriage to be solid, then you need to work as a team," Mr. Warren says. Put all the money in one account, and agree on an amount above which neither spouse will go without talking to the other first.

Update beneficiary designations and add your spouse's name to accounts. "That's especially important for second marriages," says Keith Beverly, principal with New Paradigm Advisory Group in Durham, N.C. "If they haven't done proper planning, they don't necessarily know where their assets will be directed if something were to happen to them."

... Having a Baby, Then

To read the entire article from Andrea Coombes | The Wall Street Journal:

http://finance.yahoo.com/news/are-you-planning-a-big-life-change-this-year--;_ylv=3 

Inspirational Quotes@Inspire_Us from Twitter:

Empty pockets never held anyone back. Only empty heads and empty hearts can do that. - Norman Vincent Peale

Hi my name is Philip J. Miano and I am the founder of PJM Personal Finance and Productivity Coaching specializing in Budgeting, Debt Reduction, Bank Reconciliations, Goal Setting, Time Management, and Organizational skills. Please visit my website: http://pjmcoaching.com

Personal Finance News Monday 1/28

Phil's Personal Finance Tip of the Day:

9 Ways to Go Broke in 2013

From Dave Ramsey.com

Chances are pretty good that you’ve set some type of financial goal for 2013. And we want to help you get there—which involves knowing what not to do as much as knowing what to do.

So if you want to make it happen with your money in 2013, make sure you don’t do the following things—they’re sure to make you broke.

 

1. Just wing it.

This is the opposite of making a plan. If Dave Ramsey had an evil twin brother, “just wing it” might be his catch phrase. You can’t just wing it with your money. You have to make a plan—including a budget—that includes all your short-term and long-term financial goals. If you want to make a plan but you’re not sure where to start, download the all-new Dave Ramsey's Guide to Budgeting for free now.

 

2. Wait until 2014.

If, while thinking about your goals for the year, you said something like, “This just isn’t a good year to try and get out of debt,” then you’ve already set yourself up for failure. Now is the time. This is the year. Unless you just enjoy stress and debt, no more procrastinating.

To read the entire article from Dave Ramsey.com:
http://www.daveramsey.com/blog/ways-to-go-broke


Inspirational Quotes@Inspire_Us from Twitter:
Pain is nothing compared to what it feels like to quit. -Unknown


Hi my name is Philip J. Miano and I am the founder of PJM Personal Finance and Productivity Coaching specializing in Budgeting, Debt Reduction, Bank Reconciliations, Goal Setting, Time Management, and Organizational skills. Please visit my website: http://pjmcoaching.com

Personal Finance News Saturday 1/26

Phil's Personal Finance Tip of the Day:

Positive thinking has no negatives

January 24, 2013 By Harvey Mackay

One of life’s great annoyances is the tendency of folks who ask you to perform an impossible task, list the issues they foresee and the problems that have plagued previous attempts — and then admonish you to “think positive.”

Wow!  Does that mean you are so good that you can achieve what no one else has?  Or are you being set up to fail?

Because I am an eternal optimist, I prefer to believe the first premise.  Positive thinking is more than just a tagline.  It changes the way we behave.  And I firmly believe that when I am positive, it not only makes me better, but it also makes those around me better.  I think that good attitudes are contagious.  I want to start an epidemic!

A friend who also prefers to look for the silver lining suggested I Google “The Positive Pledge” by author and inspirational speaker Jon Gordon.  Several promises stand out among the fifteen in the pledge, including:

• I pledge to be a positive person and positive influence on my family, friends, co-workers and community.
• I vow to stay positive in the face of negativity.
• When I want to be bitter I will choose to get better.
• When I meet failure I will fail forward towards future success.
• I believe my best days are ahead of me, not behind me.

The full pledge is a terrific framework for a positive attitude, because we know that positive thinking isn’t always easy.  Negative thoughts can creep into our mind – and jump out our mouths – when we least expect them.  The trick isn’t to fight them, but to manage them so they don’t paralyze us.

To read the entire article from Harvey Mackay.com:
http://harveymackay.com/column/positive-thinking-has-no-negatives/

Inspirational Quotes@Inspire_Us from Twitter:

A winner never stops trying. -Tom Landry

Hi my name is Philip J. Miano and I am the founder of PJM Personal Finance and Productivity Coaching specializing in Budgeting, Debt Reduction, Bank Reconciliations, Goal Setting, Time Management, and Organizational skills. Please visit my website: http://pjmcoaching.com

Personal Finance News Friday 1/25

Phil's Personal Finance Tip of the Day:

When Is the Optimal Time to Book a Flight?

By Kathy Kristof | CBS MoneyWatch – Tue, Jan 22, 2013

Bargain-conscious travelers have been trying to answer the question for years and are still stymied: How far in advance do you have to book to get the best airfare?

According to new research by CheapAir.com based on the travel site's review of 560 million airfares, the optimal time to book a domestic flight is 49 days in advance. If you're flying overseas, you should book almost three months -- 81 days, to be precise -- before you travel.

Too much planning for you? Don't worry. While the average domestic flight was the cheapest 49 days out, it didn't start to rise dramatically in price until about two weeks before the departure date. But if you wait until the day or two before you want to travel, get ready for some serious pocketbook pain. Domestic flights that would normally cost less than $400 jump to about $625.

Notably, it's also bad for your pocketbook to book too far in advance, according to CheapAir. People who booked 210 days before the flight ended up paying an average of $475 for a domestic ticket. There are exceptions and caveats, however. If you're booking for a high-traffic time, like Thanksgiving, it can make sense to book well in advance. The optimal time to buy a flight for Thanksgiving weekend in 2012, for instance, was 96 days in advance.

To read the entire article from Kathy Kristof | CBS MoneyWatch:

http://finance.yahoo.com/news/when-is-the-optimal-time-to-book-a-flight--181159230.html

Inspirational Quotes@Inspire_Us from Twitter:

I'd rather regret the things that I have done than the things that I have not done. - Lucille Ball

Hi my name is Philip J. Miano and I am the founder of PJM Personal Finance and Productivity Coaching specializing in Budgeting, Debt Reduction, Bank Reconciliations, Goal Setting, Time Management, and Organizational skills. Please visit my website: http://pjmcoaching.com

 

Personal Finance News Thursday 1/24

Phil's Personal Finance Tip of the Day:

Get-Out-of-Debt Checklist

Real Simple.com

Does the old saying "Another year older and deeper in debt" ring too true? Take these steps now to reduce your debt and fix credit problems.

http://www.realsimple.com/work-life/money/planning/credit-fixing-checklist-00000000000211/index.html

Inspirational Quotes@Inspire_Us from Twitter:

The harder I work, the luckier I get. -Samuel Goldwyn

Hi my name is Philip J. Miano and I am the founder of PJM Personal Finance and Productivity Coaching specializing in Budgeting, Debt Reduction, Bank Reconciliations, Goal Setting, Time Management, and Organizational skills. Please visit my website: http://pjmcoaching.com