Post Tagged with: "saving"

Roth IRA Conversion 2012: A Roth Conversion Calculator

Roth IRA Conversion 2012: A Roth Conversion Calculator

Nearly everyone is an excellent candidate for executing a Roth conversion this year. At the end of 2012, tax rates are going up across the board. With political gridlock and a debt-strapped national government, tax rates are unlikely to be this low again in the near future. Because you can always undo part or all of a conversion with a Roth recharacterization, you can’t convert too much. But it is helpful to have a target amount in mind before you begin.

Read more ›
Compute Your Net Worth Once a Year – 2012

Compute Your Net Worth Once a Year – 2012

If you are within 20 years of retirement (age 45 to 65), it’s critical to get your retirement planning updated. Computing your net worth annually is like taking a sextant reading to chart your course toward financial security. The changes of the past year provide another incentive to take stock of where you are in relation to your goals and readjust your asset allocation and savings rate.

Read more ›
Your Portfolio Needs Rebalancing

Your Portfolio Needs Rebalancing

Most investors do not have a balanced portfolio. They look for investments with little to no risk that still provide great rates of return. And by chasing this elusive chimera they miss the easy money they could make from having a good asset allocation in the first place and rebalancing it periodically. To have a balanced portfolio, you must know your asset categories and what percentage of your portfolio to put in each one. Without such a plan, your portfolio is automatically out of balance.

Read more ›
Seven Financial Resolutions for the New Year

Seven Financial Resolutions for the New Year

Financial resolutions usually don’t even last until the end of January. Making a permanent change in our behavior requires both time and a steely resolve. We can only develop financial character one action at a time. Here are seven practices to take you from pauper to prince or princess if you add one each year. Share your resolution with everyone you meet. You are 10 times more likely to act on a goal that you have articulated to someone else. Don’t wait until you have everything perfect to take ownership verbally.

Read more ›
Economic Lessons from “Farmville”

Economic Lessons from “Farmville”

Zynga was already the leading Facebook platform developer when it launched Farmville in June 2009. The idea was not original, but Zynga implemented it better and advertised it more than other companies. A year later Farmville had 80 million users, with most people coming back every day and representing about 10% of the Facebook population. If we celebrated our efforts at financial responsibility as much as we do Farmville, the savings rate in this country would rise significantly.

Read more ›