Queercents

My partner and I recently decided to start saving to build a new home in 10 years or so. I’ve been saving for my retirement via a 401k plan for some time, but saving a significant sum for a shorter-term goal is fairly new to me.

Since we have an investment horizon of 10 years and the flexibility to wait a few years longer if we need to, it makes sense to invest in stocks or mutual funds to get the greatest return. I’d rather not have to monitor my investments daily, so I started my research by focusing on mutual funds. After all, I’ve been investing successfully in my 401k plan’s mutual funds for nearly 10 years already, and it seems simple enough. Read the rest of this entry »

“How is it possible that 90 percent of women don’t know anything about their own money?” – Suze Orman

A few weeks ago, Ramit Sethi at IWillTeachYouToBeRich.com, a well-known personal finance blog, conducted a reader survey about gender and money. The results (served up in a 30-page SlideShare presentation) revealed some stunning differences in how men and women think about money:

Slide 16: Feelings towards money are different:
Confidence = 58% men vs. 44% women
Anxiety = 18% men vs. 33% women
Apprehension = 15% men vs. 26% women
Confusion = 8% men vs. 14% women

Slide 19: Differences in personal finance topics followed:
Investing = 83% men vs. 70% women
Frugality = 53% men vs. 67% women Read the rest of this entry »

“They want the federal government controlling Social Security like it’s some kind of federal program.” – George W. Bush

Recently, I heard from Lea Abdnor, the Executive Director at Women for a Social Security Choice in response to my post about how gays and lesbians are Denied Social Security Benefits. In case you forgot, families of gays and lesbians (upon the death of a spouse) are denied the same benefits of heterosexual Americans, even though we contribute equally to Social Security throughout our careers.

Abdnor writes, “You are SO right about Social Security penalizing gays and lesbians. I’m straight but I’ve complained about this for years! ‘Legal’ spouses who don’t work a day in their life, and pay zero in Social Security benefits are granted FREE an additional 50% on top of his/her spouse’s Social Security benefit. A relic from the old ages.” Read the rest of this entry »

Laurie Flynn is a Financial Advisor with Smith Barney and is a supporter of Queercents. She’s written a few posts these past weeks on the topic of investing. These are her words…

How To Smartly Give Away Assets During Your Lifetime
Giving away your financial assets can be more complicated than just writing a check. If you want to engage in lifetime gifting of some of your assets, you should be aware of certain rules. For instance, in 2007, the maximum annual gift tax exclusion amount is $12,000 per person. The lifetime federal gift tax exclusion amount is currently $1 million, and it will remain at that level through 2009.

The top federal gift tax rate is 45% for 2007 (the maximum that your heir may need to pay on your gift). In 2010, the top gift tax rate will equal the top individual income tax rate (currently 35%). Any portion of the gift tax exclusion used will reduce dollar-for-dollar your estate tax exclusion available at death. In light of all this, you may want to consider some creative lifetime gifts. For one, charitable trusts can offer you several financial benefits, including the potential deferral of capital gains taxes, as well as possible gift and estate tax savings. They may also serve as effective vehicles for transferring wealth. Read the rest of this entry »

Laurie Flynn is a Financial Advisor with Smith Barney and is a supporter of Queercents. She’s written a few posts these past weeks on the topic of investing. These are her words…

Super-simplified 401(k) Plan: Good Choice for Today’s Self-employed

As a small business owner, you should be both interested and concerned about two prevailing trends coming together in the American workplace: the job growth created by small businesses and the responsibility of individuals for their own retirement planning. If you are a business owner, with no employees other than co-owners or spouses, then you may wish to consider establishing a Super-simplified 401(k) plan for your business. That’s right. As a small business owner, you can enjoy the same 401(k) retirement plan benefits currently provided to millions of other Americans. Read the rest of this entry »

Laurie Flynn is a Financial Advisor with Smith Barney and is a supporter of Queercents. She’s written a few posts these past weeks on the topic of investing. These are her words…

The Capital Gains Tax Rate: Is Change on the Horizon?

If you are a business owner, you may not be inclined to keep yourself informed of every change in the tax law. However, the current battle over the capital gains tax rate would certainly be one to watch. A capital gains tax is a levy charged on the profit realized on the sale of an asset. While the most common capital gains are realized from the sale of stocks, bonds and precious metals, of far greater consequence is the impact of the capital gains tax when a valuable business is sold. Read the rest of this entry »

Laurie Flynn is a Financial Advisor with Smith Barney and is a supporter of Queercents. She’s written a few posts these past weeks on the topic of investing. These are her words…

Access to Retirement Plan Funds Now Easier than Ever

The Pension Protection Act of 2006 (”PPA 2006″) brought with it many opportunities that could impact your retirement and long-term wealth planning. Now in effect, this legislation makes effective important changes that may allow you easier access to spousal, non-spousal and your own retirement plans: Read the rest of this entry »

Laurie Flynn is a Financial Advisor with Smith Barney and is a supporter of Queercents. She’s written a few posts these past weeks on the topic of investing. These are her words…

The Lowdown on the Roth 401(k)

Now that PPA 2006 has made the Roth 401(k) a permanent tool in the arsenal of retirement planning options, many more employers may offer these new accounts in addition to their traditional 401(k) plans. As the name implies, the Roth IRA combines features currently available with Roth IRAs with those available with traditional 401(k) plans. Before you make a decision on this or any other retirement option, here are a few things you should know. Read the rest of this entry »

Laurie Flynn is a Financial Advisor with Smith Barney and is a supporter of Queercents. She’s written a few posts these past weeks on the topic of investing. These are her words…

New Tax Structure May Affect Your Retirement Accounts

President Bush recently signed the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) into law, creating many challenges and new opportunities for taxpayers. In 2010, for example, the new tax structure makes high-income earners eligible for Roth IRA Conversions as it lifts the $100,000 income ceiling. Read the rest of this entry »

You wouldn’t operate on yourself, would you?

Many people have asked me, “Why would I hire a financial planner? Wouldn’t it be better if I just invested in ‘no-load’ mutual funds, bought my own stock and signed up for term insurance on my own?”

Good question.

I have many “do-it-yourselfers” as friends, family and even clients. Specifically, with my clients who are of the mindset that they can handle things themselves, I have been hired, at the minimum, to be a guide, offer a blueprint or do an annual checkup.

For those of you who feel that handling your own investments (the E-Trade crowd) without professional assistance are, at the least, operating on yourselves amidst major surgery with enormous implications.

Nowadays, mutual funds have been so investor-friendly, moreover, advisor unfriendly, that the argument to do-it-yourself becomes even stronger.

Nowadays, many people ask, “what’s a good stock pick?…if I invest in this stock my buddy told me about, I should see 2000%!…I just put all my money in my company stock because I get a 15% discount.” Remember Enron? Not that your company operates in similar, slimy fashion, but you know what they say about putting all your eggs in on basket…

Nowadays, I hear the quote “I just buy term insurance and invest the rest.” According to the insurance commissioner in Oregon, 97% of the time term insurance doesn’t pay out. Meaning, only 3% of participants actually die within the term they purchased, and because the premium for the “cheap” insurance skyrockets once the term expires, most don’t renew. Is term insurance really what you “need?”

To answer the aforementioned questions, I propose the following:

Read the rest of this entry »