James C. Molet's Blog, page 69

A SavvyInterview – Michael

I met Michael through social media and was intrigued by not only the title of his book,  An Average Joe’s Pursuit for Financial Freedom, but also the suggestion on the cover to change your perception of money. I’m glad he has taken some time to sit for a SavvyInterview and share some of his thoughts on personal finance. What was the catalyst that started you on the road to fiscal fitness? In the Spring of 2009, my company’s management announced that they were going to restructure their assets. For those of Read the Full Story

SavvyPoll Number Seven

This bull run in the stock market turned five years old a few months ago is now up over 200% in that time period, as measured by the S&P 500 Index. In the context of historical bull runs, it is neither the strongest or longest in duration. Though it has a ways to go to surpass the longest run in history – the one that followed the crash of 1987 and stretched all the way through the 1990′s and ended in March of 2000 – it has worked its way Read the Full Story

Let’s Talk About Money

Way back in 1991, Salt-n-Pepa implored us to talk about sex. Not saliciously, but openly and honestly about the positive and negative aspects of the act. Similarly, I try to implore people to talk about money. Not in a braggadocio manner, nor as a means to feed hyper-consumerism; but as a way to become more knowledgeable about how to manage money in such a way as to become wealthy, to achieve financial freedom. I should note that my definition of wealth probably differs from many others. As I have noted Read the Full Story

‘Deadbeat’ Dad Chronicles: Trouble Finding a Job?

If you’ve been following this series you’ve become familiar with the various frugal options non-custodial parents can employ in order to keep up with child support payments during financial storms. In this final installment of the series I’d like to discuss an option that can, honestly, be a bit painful but is very effective. In 2009, I started applying for jobs out-of-state partly because finding local employment yielded only temporary jobs & I needed something long-term. I applied for anything that was legal and paid American greenbacks. The hardest part was Read the Full Story

Longevity Annuities

Earlier today, the U.S. Treasury announced new rules which will permit employees to purchase longevity annuities – with guaranteed lifetime payouts – in their 401(k) and IRA plans. Apparently the US treasury and Department of Labor have been working on this new option since 2010 when they issued a request for information on how 401(k)s could provide better lifetime income. The objective of the longevity annuities is to protect retirees from exhausting their savings in their later years. A noble objective. As noted in the latest Merrill Edge Report, 55% of Read the Full Story

Living Frugally: Be a Savvy Traveler

Summer is a great time of the year, not only because most families take a break from work and school, but because the warm weather offers a chance to enjoy a family vacation. Here are three things you should do as you prepare for a vacation, during the summer or really, anytime of the year. It will be much more enjoyable if you keep expenses manageable and do not accrue significant debt as a result of your vacation: Start saving early Buy your tickets in advance Choose your vacation location Read the Full Story

Start Investing Early

During these summer months, many teenagers are working – or will be looking for a job – as a means of earning a little spending money. While there is certainly nothing wrong with spending a little of that hard-earned money, some of the money should be invested. There is a tremendous benefit to investing as soon as possible; harnessing the power of time and compound interest. Unlike simple interest, which is calculated one time solely as a percentage of the principal sum, compound interest is calculated not only on the Read the Full Story

Don’t Forget Inflation

in·fla·tion [in-fley-shuhn] noun – In economics, a persistent, substantial rise in the general level of prices related to an increase in the volume of money and resulting in the loss of value of currency (opposed to deflation). Interesting definition but what does it mean? The operative passage within that definition is loss of value. On a small scale, over a short time period, the impact is generally insignificant. As an example, assume you deposited $100 in your local savings account on January 1st, 2013. You did not make any deposits Read the Full Story

Find Your Balance – Part II

Find Your Balance continued… In our retirement plan, over the last few years, I have consistently adjusted the desired annual income up. The retirement income goal has gone from $125,000 to $150,000 to $200,000. Why have I been adjusting the income goal up the last few years? There are multiple reasons: increased household income, stellar market returns, and increased estimates of what we will be receiving from our various pensions. So why I am now reducing the desired annual retirement income goal? Over the last six months the wife and Read the Full Story

Find Your Balance – Part I

One of the things I discuss ad nauseum with my wife and some friends is the idea of finding financial balance; that sweet spot between living for today and preparing for tomorrow. Following a string of conversations, and a thoughtful reassessment, I have recently reduced the amount of planned retirement income. More on that shortly. First, some thoughts. My experience has been that most families generally fall into one of four groups with respect to their financial planning. The first group simply has no understanding, and no real desire, to Read the Full Story