Money Advice

There’s never a better time than now to lay the foundation for financial success. While setting a resolution of saving money or paying off debt is a great start, there is much more to financial success than just setting goals.  A great way for families to increase financial success is by first shifting their thoughts around money and then evaluating exactly where they are financially. As your family sets financial goals for the New Year, consider the following money paradigm shifts and including your children in the ‘movement’ as well, if applicable.

In a world of IRAs, bonds, annuities and investment property, one retirement benefit often gets overlooked, or not discussed at all, by some financial advisers: Social Security.

In retirement, you need to create as much fixed, guaranteed income as you can. Social Security is just as valuable as any of your other assets.

After a lifetime of accumulating money, it’s common to start thinking about your legacy and what you want to leave to your children, grandchildren or a favorite charitable cause. However, despite the dollar signs you see on your investment and bank accounts, there’s no guarantee your loved ones or your chosen charity will get the full amount.

Uncle Sam is lurking to snatch a sizable share.

You probably heard it a million times before you walked down the aisle, "Money is the number one source of marital discord." There is a reason everyone from your Aunt Tilly to the nice old man at the bank advised you to talk about financial issues before marriage; research has suggested that it is the leading cause of divorce and the biggest reason couples cite for unhappiness.

While some of these issues stem from the lack of money, much of trouble is actually from lack of communication on the issue and differing views on how to handle money.

Many young people have the misconception that as they grow older and advance in their careers they will have more disposable income, giving them the freedom to do what they like and buy what they want. However, as life moves along bills add up, college loans need to be paid, mortgages need to be secured and insurance needs to be kept up to date. Throw in kids and many people find themselves living paycheck-to-paycheck much longer than they ever expected.

When it comes to retirement—and to passing on whatever wealth you’ve accumulated to a spouse or the next generation—you may think you’ve thought of everything. However, despite your careful planning it could be that Uncle Sam will be handing you a hefty tax bill while you’re living—or your beneficiaries one when you die.

Even people who have been great about saving for retirement don’t always realize the tax implications of what they’ve done. They may have created a significant tax problem for themselves, and they could be leaving behind a tax time bomb for their beneficiaries.

After living as renters for the first seven years of their marriage, Geoff and Kristi decided it was time to purchase their first house.

They chose to pass on making a purchase earlier in their lives for reasons ranging from unstable job security to high mortgage rates. Whether justified or not, Geoff and Kristi kept making excuses for not pulling the trigger on a new-home purchase. They had no idea of the opportunity they were missing to start building their personal wealth through home ownership.