What Every Woman Needs to Know About Saving for Retirement

What Every Woman Needs to Know About Saving for Retirement

Saving & Investing
We all dream of the day we can retire from work. Unfortunately, most retirement planning is done by men. Complicating matters further, it is critical for women to think about saving for retirement differently than men.   Things to Know About Saving for Retirement. Here are four things women need to know about saving for retirement. 1. You Will Live Longer Than Men in Your Life On average, women live longer than men. In the U.S., the preliminary data for 2020 from the CDC shows that for all races, women have a life expectancy of 80.5 years, while men have an average life expectancy of 75.1 years.  This means that you’ll likely need to save for an additional five years of retirement as compared to a man in the same position.…
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What to Do With Extra Money

What to Do With Extra Money

Saving & Investing
Have you recently received a stimulus payment? Or a tax refund? Or perhaps a company bonus? This time of year is one of the most common to get a chunk of unexpected extra money. In this article, we will discuss the best things to do with that extra money depending on whether you are in debt or not.  4 Ways to Use Extra Money So what should you do with extra money? Here are four ways to use it based on your current financial situation. 1. No Matter What: Spend Some Money on Something Fun Regardless of whether you are in debt or have hefty savings, I always recommend using some of your extra money to spend on something fun. Whether it’s a fancy meal, a mini-vacation, or a shopping…
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Best Articles About Asset Allocations

Best Articles About Asset Allocations

Saving & Investing
I’ve been doing a lot of reading on asset allocation recently. Specifically, I’ve been reading about asset allocation related to the FIRE (Financially Independent Retire Early) movement. What is asset allocation? It is how you portion your investments among different stocks, bonds, and cash. Your asset allocation will vary depending on your age, your tolerance for risk, and when you need access to the money. The Best Articles About Asset Allocations Here are the best articles I've read on asset allocation. 1. Boggleheads on Asset Allocation The Boggleheads wiki page on Asset Allocation is one of the best articles there is with several different sample asset allocations in it. The Lazy Portfolios page is the next best reading following the asset allocation page.  2. Mr. Money Mustache Forum on Asset…
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The 2 Times When You Should Stop Saving For Retirement

The 2 Times When You Should Stop Saving For Retirement

Saving & Investing
Image credit: CalcXLM There is plenty of talk about Americans saving too little for retirement. Almost half of those under 30 have saved nothing for retirement, and nearly half of those 55 and older have saved nothing for retirement. But let’s talk about the other end of the spectrum. What about those who have saved enough or too much for retirement? Here are two signs you should stop saving for retirement. 1. You are under 40, and you've saved at least $500,000 for retirement.  Let’s say you are 38 years old and graduated from college in 2005. Since then, you have worked steadily and been able to nearly max out your retirement contributions most years since you graduated. If you had contributed $15,000/year since 2005 to an index fund that…
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The 1 to 5 Plan for Easy Financial Planning

The 1 to 5 Plan for Easy Financial Planning

Saving & Investing
For many people, the new year means a whole new look to your paycheck. Maybe you received a raise or a cost of living increase. Chances are your health insurance premiums went up. And, of course, taxes may be coming out at a slightly different rate. Whenever I get my first paycheck in the new year, I always closely look at my paystub compared to last year’s and determine where I can make adjustments to better reach my savings goals. One of my favorite plans to build wealth is what I call the “1 to 5 Plan.” I developed this plan for myself, but you can make adjustments depending on where you are currently at and your goals.  If you are looking for a great way to kickstart your year and…
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Double Your Down Payment Savings

Double Your Down Payment Savings

Goals / Taking Action, Miscellaneous, Saving & Investing
Buying a home is a big financial goal, however saving for the down payment can be a major roadblock. There are several different routes to achieving this goal. When the lease on the apartment my boyfriend and I rent was nearing expiration, we considered buying a home. In the process, we discovered a savings program, called a ‘matched savings’ program, to help speed up down payment savings.Matched savings programs are also called Individual Development Accounts (IDA) and are generally offered by nonprofits and/or government agencies in local areas. There are three things these programs can be used to fund.Buying a homeOpening a small businessSaving for college/job training.As you probably gathered from the name, when you enroll in one of these programs every dollar you deposit is matched. Depending on the…
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Is the Mortgage Tax Deduction in Your Best Interest?

Is the Mortgage Tax Deduction in Your Best Interest?

Debt, Miscellaneous, Money in Your 20s/30s/40s/50s/Retirement, Saving & Investing, Take Action
So tax season is upon us, and if you’re paying on a mortgage, you probably feel pretty excited about the home mortgage tax deduction that comes with it. After all, everyone says that you should hold off on fully repaying your mortgage because the tax deduction saves you money. Unfortunately, that common sense advice isn’t really sensible at all, and may actually be costing you money. The home mortgage tax deduction is a type of itemized tax deduction that allows you to reduce your taxable income by the amount you paid in interest. This deduction combines with all other itemized tax deductions and if that total exceeds the standard deduction it will take its place. Now, you can claim up to two homes for this deduction, and the definition of…
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Where Does Your Money Go?

Where Does Your Money Go?

banking, Goals / Taking Action, Miscellaneous, Saving & Investing
Have you ever had such a terrible customer service experience or been charged so many fees at your bank that you seriously considered closing your accounts, but didn’t because, well, would another corporate bank be any different? Credit unions are a viable alternative to big banks. After a terrible customer service experience, this was exactly the course I took. There are always considerations when changing banking institutions. Your number one concern should always be bank fees. While credit unions will often have lower fees than a corporate bank, this is not always the case and should never be taken for granted.So what exactly is a credit union? A “cooperative financial institution chartered by the federal government and owned by individual members”. This means that when you put your money in…
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