Build Your Rainy Day Fund Like an emergency fund, it can come in handy. Sometimes, life gets expensive. A little bad luck or a twist of fate can hit us right in the checkbook and challenge us to live within our budget. An emergency fund may help us handle major financial disruptions. For the minor ones, a rainy day fund may suffice. A rainy day fund and an emergency fund differ in scale, but not purpose. Both funds are designed [...]
Smart Financial & Insurance Moves for New Parents As you start a family, consider these ideas. Being a parent means being responsible to a degree you never have been before. That elevated responsibility also impacts your financial decisions. You are now a provider and a protector, and that reality may make the following financial moves necessary. Think about a budget. As a couple, you may have lived for years without budgeting. As parents, this may change. You will face new [...]
Good Reasons to Retire Later Working longer might work out well for you. Are you in your fifties and unsure if you have enough retirement savings? Then you have two basic financial choices. You could start saving and investing more of your pay than you currently do, or you could work longer so you have fewer years of retirement to fund. That second choice might be more manageable, and it may also work out better financially. Research suggests that working [...]
The Snowball Effect Save and invest, year after year, to put the full power of compounding on your side. Have you been saving for retirement for a decade or more? In the foreseeable future, something terrific is likely to happen with your IRA or your workplace retirement plan account. At some point, its yearly earnings should begin to exceed your yearly contributions. Just when could this happen? The timing depends on several factors, and the biggest factor may simply [...]
Annuities for Retirement Income Why seniors choose them, and what prospective annuity holders should consider. Imagine an income stream you cannot outlive. That sums up the appeal of an annuity. If you are interested in steady retirement income (and the potential to defer taxes), you might want to look at the potential offered by annuities. Before making the leap, however, you must understand how they work. Just what is an annuity? It is an income contract you arrange with [...]
