Much of the material available regarding personal finances is directed towards W-2 workers, or what we would consider a traditional “employee.” This makes sense, research from 2019 showed that roughly 72% of Americans are traditional employees.1 But, the other 28% of our working population has some specific financial planning needs as well. Today we want to touch on a few tips to help self-employed workers keep their financial house in order.
Do you know someone that is retired and receiving a nice, predictable pension check every month? Maybe you're lucky enough to be covered by a pension plan—perhaps your benefit is still growing, maybe it’s frozen, or perhaps you are already receiving payments. While the word pension still means something in our vocabulary, more and more the pensions of old are going the way of the dinosaurs.
You've been dedicated to your career - loved your job - but recently you're not so sure the hours or stress are worth it.
Even the most seasoned investors are prone to their influence.
Investors are routinely warned about allowing their emotions to influence their decisions. However, they are less routinely cautioned about their preconceptions and biases that may color their financial choices.
In a battle between the facts & biases, our biases may win. If we acknowledge this tendency, we may be able to avoid some unexamined choices when it comes to personal finance. It may actually "pay" to recognize blind spots and biases with investing. Here are some common examples of bias creeping into our financial lives.
How many pieces do you have in place?
When you read about money matters, you will sometimes see the phrase, “getting your financial house in order.” What exactly does that mean?
When your financial “house is in order,” it means it is built on a solid foundation. It means that you have six fundamental “pillars” in place that are either crucial for sustaining your financial well-being or creating wealth.
Some life and financial factors that can sometimes be overlooked.
We all have our “blue sky” visions of the way retirement should be, yet our futures may unfold in ways we do not predict. So, as you think about your “second act,” you may want to consider some life and financial factors that can suddenly arise.
You may end up retiring earlier than you expect. If you leave the workforce at “full” retirement age (FRA), which is 67 for those born in 1960 and later, you may be eligible to claim “full” Social Security benefits. Working until 67 may be worthwhile because it will reduce your monthly Social Security benefits if you claim them between age 62 and your FRA.1
Over the past months much has been said about how the presidential election might impact the stock market. Although we can't predict what will happen in this unexpected year, we can learn a lot from history.
Do you have a "Zombie Plan" roaming around somewhere in your financial past? An old 401(k), 403(b), or other employer sponsored plan that's been neglected and untouched for so long that it's almost left for dead!