Latest Posts
The Co-Owner of Your Traditional 401K, IRA, & TSP Accounts
The Co-Owner of Your Traditional 401K, IRA, & TSP Accounts You may not realize it while you’re working to build your nest egg and enjoying the annual tax break, but your Traditional IRA, 401K, and [...]
Avoid These FAFSA Mistakes
FAFSA Mistakes To Avoid It's FAFSA Time! Last month, the Department of Education confirmed that the long-awaited new and improved Free Application for Federal Student Aid (FAFSA) would be available BY December 31st. It's now [...]
Don’t Give Cash To Charity
Don’t Give Cash To Charity…Do This Instead Charitable giving is a powerful way to make a positive impact on the world and support causes that matter. For most people, the default method of donating to [...]
Planning
The Co-Owner of Your Traditional 401K, IRA, & TSP Accounts
The Co-Owner of Your Traditional 401K, IRA, & TSP Accounts You may not realize it while you’re working to build your nest egg and enjoying the annual tax break, but your Traditional IRA, 401K, and [...]
Don’t Give Cash To Charity
Don’t Give Cash To Charity…Do This Instead Charitable giving is a powerful way to make a positive impact on the world and support causes that matter. For most people, the default method of donating to [...]
Paying for Long-Term Care
Paying for Long-Term Care: A Comprehensive Guide In part one of our series on Long-Term Care (LTC), we talked about the various LTC options and what makes up a good plan. You can find that here. [...]
Long-Term Care
Long-Term Care: Why Everyone Needs A Plan Introduction October is Long-Term Care (LTC) Planning Month. While no one likes to think about getting older and needing long-term care, it’s incredibly important to have a plan. [...]
Social Security Case Studies: Claiming for Couples
Social Security Case Studies: Claiming for Couples Planning for retirement involves numerous decisions, and one of the most significant factors is Social Security. Social Security retirement benefits provide inflation-adjusted lifetime payments to recipients and survivors. [...]
Social Security For Couples
Social Security For Couples: Spouse and Survivor Benefits Planning for retirement involves numerous decisions, and one of the most significant factors is Social Security. Social Security retirement benefits provide inflation-adjusted lifetime payments to recipients. Even [...]
Social Security: The Basics
Social Security: The Basics You pay your payroll taxes every month but unless you’re close to retirement, you probably don’t give Social Security much thought. Maybe you think about it once a year when the [...]
SBP Open Season
SBP Open Season: Should You Opt In or Opt Out? You often don’t get a second chance on your SBP decision, but this year’s NDAA provides that rare opportunity. So what are the SBP Open [...]
Survivor Benefit Plan (SBP) Case Study
This is part 3 of our series on the Survivor Benefit Plan (SBP). It provides an SBP Case Study. Links below will take you to parts 1 and 2 with some of the background information. [...]
SBP Decision (or Insurance) To Solve A Cash Flow Problem
SBP Decision (or Insurance) To Solve A Cash Flow Problem This is part 2 of our series on the Survivor Benefit Plan (SBP). The SBP decision is one of the biggest considerations facing military members [...]
Survivor Benefit Plan – The Big Decision
Survivor Benefit Plan - The Big Decision One of the biggest decisions military members face during their retirement transition is whether or not to take the Survivor Benefit Plan (SBP). The SBP decision can be [...]
Am I Behind?
I feel like I'm starting late. Am I Behind? I’ve talked with several people recently who have all expressed the concern that they were approaching military retirement and felt like they were behind where they [...]
Mid-Year Tax Review
Mid-Year Tax Review I know you’re probably feeling like you just finished taxes, but as we head into the middle of the year it’s a good time to check your tax situation. Most people will [...]
Plan Process Product
Plan Process Product Trying to decide on what you’ll invest in before understanding where you are and where you want to go is like trying to decide if you should use a hammer, a wrench, [...]
Tax Strategy & Tactics: Build and Execute Your Plan
Tax Strategy & Tactics: Build and Execute Your Plan Did you pay enough in taxes this year? You may be saying Mike, that is a dumb question. I paid TOO much in taxes. But are [...]
Retirement Red Zone
Retirement Red Zone The retirement red zone is the 5 years before and after retirement. This is the time when the sequence of portfolio returns is most important. The sequence of returns is the danger [...]
Avoid The Post-Military Retirement Tax Shock
Avoid The Post-Military Retirement Tax Shock Your military retirement transition introduces big changes across many fronts. Many of the decisions you will make during this period can have a long-term financial impact. While not a [...]
Discretionary Dollars
Discretionary Dollars In a previous article (LINK), I introduced the concept of Minimum Lifestyle Expenses (MLE). MLE is composed of your Food, Utilities, Transportation, Housing, and Healthcare. Income above this level is discretionary. There are [...]
Important Numbers for 2023
There are lots of important numbers to keep in mind when thinking about financial planning and taxes. In some cases, those numbers are annual limits that change each year. Other times, the figures do not [...]
Die With Zero
Die With Zero Ronald Reed, a former gas station employee and janitor died in 2014. He left most of his $8 million to the local library and hospital. No one guessed he was worth anywhere [...]
Secure Act 2.0
SECURE Act 2.0 Congress passed the Omnibus Spending Bill on December 23, 2022. Included in the monstrous 4,000+ document were numerous changes to retirement savings accounts collectively known as SECURE Act 2.0 (Setting Every Community [...]
Financial Health Checkup
Financial Health Checkup January is the perfect time to talk about financial wellness and to do a financial health checkup. I'll show you how to assess where you are on your financial journey and look [...]
Algorithm Versus Real-Life
I find myself answering more and more questions about financial topics with “It depends”. Because as much as we all want a simple formula, finances don’t fit into a neat little box. In recent years, [...]
End Of Year Planning
End-of-Year Planning If you’re like me, you’re probably thinking how can it be December? Where did 2022 go? Before we turn the page to 2023, there could be some actions you could take to improve [...]
Goal = Guess
Goal = Guess Do you get stressed when someone asks you about your goals? Concerned about either not reaching them or not sure what you want? Are you concerned because you’ve hit previous goals and [...]
3 Ways to Estimate Your Life Insurance Need
3 Ways to Estimate Your Life Insurance Need Life insurance is an important pillar within your financial plan. It can provide money for the people who rely on you should the worst happen. There are [...]
6 Critical Financial Plan Elements
Wednesday, October 5th marks the 6th annual World Financial Planning Day. My favorite made-up day of the year 🙂 So what should you have in your financial plan? When most people think of financial plan, [...]
Direct Your Money – Beneficiary Designation
Beneficiary designation for your financial accounts and life insurance take precedence over your will. Make sure they're up to date.
Micro-Actions Lead to Big Results
Micro-Actions Lead to Big Results When tackling big, audacious goals, you don’t need big, audacious actions. All you need is the contagious magic of micro-actions repeated consistently. Let me give you an example. Some of [...]
Tax Time Bomb
Are you building a retirement tax time bomb? UPDATED April 14, 2023 to reflect SECURE Act 2.0 RMD Changes Conventional wisdom says retirees will be in a lower tax bracket in retirement than when they [...]
Retirement Check-In – 10 Years Out
10 Years before your planned retirement is a great time for a retirement check-in. Here are 7 key things you should do.
Financial Planning Under the Cone of Uncertainty
I am fascinated by hurricane tracking models. Strange because I’ve never lived in an area prone to hurricanes. The cone or funnel shape of the forecast shows the probable path of the storm over 5-7 days. The “spaghetti” models are also interesting. These are the individual forecasts that one of the weather supercomputers thinks the storm will take. Sometimes they cluster together. Other times they are wildly different. The forecast improves and the cone narrows as the hurricane progresses and new information is obtained.
Less Wrong Tomorrow
Real Financial Planning is not about being right today, it’s about being less wrong tomorrow. Airline pilots know this. For years, every time I met one, I would ask two questions. The first was, “Do you prepare a flight plan for every single flight?” And every pilot I asked answered “Yes.” The second was, “How often does the flight go exactly as you planned?” To which they always answered “Never.”
Next Mission Answers Ten Questions For A Financial Planner
In a previous article, I discussed why it’s important to perform due diligence when you’re hiring a financial professional and how military members have unique requirements they should seek to address because of their benefits. Based on the questions I compiled, I believe it’s only fair and transparent that I publish my answers
10 Questions Military Should Ask Before Hiring A Financial Planner
Do a quick Google Search on “Questions to ask your financial advisor” and you’ll find a page of articles. All have a slightly different focus depending on whether they emphasize planning like this one from the CFP Board, or investments likes one from Nerd Wallet, or some personal questions like this one from Dave Ramsey. While good starting points, none focus on financial planning for military members and the unique benefits available to members. With that in mind, consider these questions when interviewing advisors.
Saving & Investing
Beating Some Index
Beating Some Index In personal finance, what matters is not beating some index. What matters is meeting your goals. Too often the investment industry confuses the two. An index is simply a collection of investments [...]
Start Them Early – Roth IRA For Kids
Start Them Early - Roth IRA For Kids “Compound interest is the 8th wonder of the world”. While there is little evidence that Einstein actually said this, compound interest is amazing. But to really see [...]
Get The Big Things Right – Accumulation Phase
Get The Big Things Right - Accumulation Phase Personal finance, like most things in life, is subject to the Pareto Principle which says 80% of the results come from 20% of the effort. This means [...]
15 Ways To Save More [Checklist]
15 Ways To Save More During January and February, we like to help clients identify proactive ways to start the year off right and save more. Perhaps you… Received a bonus or a raise and [...]
Loss Aversion
We feel the pain of loss more than we feel the pleasure from gain. Because of this, we try to avoid loss. This is called loss aversion.
3 Considerations for Investing a Lump Sum of Money
3 Considerations for Investing a Lump Sum of Money Investing is typically an ongoing process tied to the steady rhythm of receiving their pay. Occasionally though you may receive a larger lump sum of money [...]
The What and How of I Bonds
I Bonds are currently yielding 9.62%. What are they and might they be a good place for you to save money you don't need for at least a year.
Inheriting a Traditional IRA? New Rules May Increase Your Taxes
The SECURE changed the rules for Inherited IRAs. If you inherit a Traditional IRA it could cost you more in taxes. Here are some things you can do.
How To Diversify Your TSP Holdings
The proposed TSP Mutual Fund Window is too expensive for small accounts. Here are some other options to diversify away from TSP and when and how you might consider using the Mutual Fund Window.
TSP Mutual Fund Window – Too Expensive For Small Accounts
The Thrift Savings Plan (TSP) may soon provide access to mutual funds. Based on the current proposal is it a good deal? As proposed, the fees and expenses make it a bad deal for small accounts.
TSP Rollover: 3 Reasons To Consider
The Thrift Savings Plan is a great retirement savings option, but it can sometimes make sense to rollover those funds after Federal service.
5 Ways to Optimize Your Saving
Saving money is a critical component of long-term wealth. Making savings a continuous habit is key. Here are some tips to make it easier.
The Power of Increasing Savings
Increasing your savings rate annually by a small amount can have a profound impact on your long-term wealth accumulation.
College Planning, Saving, and Funding
Student Loan Repayment
Student Loan Repayment As of the end of December, nearly 40% of federal student loan borrowers had missed at least 1 payment after COVID pause ended in October. 25% hadn’t made any payments. Student loan [...]
Avoid These FAFSA Mistakes
FAFSA Mistakes To Avoid It's FAFSA Time! Last month, the Department of Education confirmed that the long-awaited new and improved Free Application for Federal Student Aid (FAFSA) would be available BY December 31st. It's now [...]
FAFSA Changes
FAFSA Changes The Free Application for Federal Student Aid (FAFSA) is undergoing a major revision for the 2024-2025 and future school years. The FAFSA Changes are the biggest overhaul in over forty years. The revisions [...]
College Bound – Freshman and Sophomore Checklist
High School Freshman and Sophomore Checklist Preparing for College For students planning to attend college, starting off their high school career strong is very important. While 4 years may seem like a long time, it’ll [...]
College Bound – Junior Year Checklist
College Bound - Junior Year Checklist A student’s Junior year in high school is arguably the most critical year for college preparation. It’s the last full year of information a college will evaluate when making [...]
College Ahead – Senior Year Checklist
Senior Year Checklist to Prepare for College It’s here…senior year. You’re child has worked hard and this will be the culminating event of their high school career. They will likely be busy with school and [...]
Get The Big Things Right – College Planning / Funding
Get The Big Things Right - College Planning / Funding The decisions around college can be emotionally charged. It’s nearly always an expensive decision. The list price for top schools is now $350,000 for 4 years. [...]
4-Year Graduation Rate: How to increase your odds
4-Year Graduation Rate: How To Increase Your Odds College is expensive. And it’s getting more expensive every year. One way to help keep costs down is to make sure your student graduates in four years. [...]
Financial Aid Appeal: Should You Do It?
Financial Aid Appeal: Should You Do It? I’ve written before about college aid award letters and making sure you understand your true out-of-pocket expenses. You can read that here (LINK). So now that you have [...]
5 Ways To Get More Money Into 529 Plans
The 529 Savings plan is a great option to save for your children’s education. 529 plans can be used to pay for qualified college, K-12 tuition, apprenticeship programs, and possibly for student loan repayment. 529 [...]
529 College Savings Plan: A Primer
529 College Savings Plans: A Primer Are you looking for a way to save for your children’s college education? A 529 College Savings Plan is a great way to start. A 529 plan is a [...]
The College Aid Award Letter
The College Aid Award Letter When I talk to parents about college most have 2 concerns. The first is their child getting into the college they want to go to. Once they've gotten in, the second [...]
Student Loans: How Much Is Too Much?
Student Loans: How Much Is Too Much? Student loan debt is growing at $3,000 per second (student loan debt clock link). It is now approaching $2 Trillion. Most 4-year colleges now cost at least $100,000 [...]
College Tax Credit
College Tax Credit Paying for college for you, your spouse, or any dependents you can claim on your taxes? If so, you could be eligible for a college tax credit when you file your federal [...]
Where To Find College Scholarship Money
Where To Find College Scholarship Money Many people I talk to about preparing for college assume their children will qualify for scholarships. They are surprised though when we talk about where most of the scholarship [...]
5 Mistakes to Avoid When Splitting the GI Bill
5 Mistakes to Avoid When Splitting the GI Bill The Post 9/11 GI Bill is a fantastic benefit for those who served in the military after 9/11/2001. The ability to transfer the benefit to military [...]
7 Reasons To Save For College In A 529 Plan
529 plans provide a tax-advantaged way to save for future education costs. Here are 7 reasons to use a 529 account.
Life
Buy Good Things…Own Them A Long Time
Buy Good Things - Own Them A Long Time Thrift or as some (my wife) might say being cheap, is one of my core values. I never had to go without any necessities growing up. [...]
Next Smallest Step
Next Smallest Step Do you have big ideas about things you’d like to do? How often do actually complete them? How about the things you REALLY want? Is there a difference between the ones that [...]
Alpine Style Living
I usually write something original when I post these images, but I really liked Carl Richard’s thoughts on extending alpine-style to life. I’ll have a few more comments at the end. When people think of [...]
Recency Bias
We are great at projecting what has happened recently will continue to happen in the future. This is also known as recency bias.
Your Future Self
It's often hard to imagine our future self even in the near-term. Thinking about our future self is important.
Process Over Outcomes
Process Over Outcomes Have you ever made a decision that didn't work out as you had planned or hoped? Did that make it a bad decision? Maybe, but maybe not. I believe in process over [...]
Comparisons
Comparisons Many people seem obsessed with comparisons to others. This is pointless behavior, of course. How other people are doing has nothing to do with how you are doing. But it’s what we do. Last week [...]
Focus On What You Can Control
There are many things that matter in life. There are also things that I can control. The overlap is what you should focus on. What should focus look like for your financial life?
Enough
Are you continually trying to "get ahead" or are you satisfied with having enough? Enough usually requires much less.
Removing Our Blind Spots
We all have blind spots, and by definition, you can’t see your own. Let me give you an example. One time, I was having a conversation with a friend of mine. Let’s call him Dave. Dave was a retired investment banker who really knew his way around money. If anyone knew how to invest, it was him. But he was looking for help managing his portfolio. I asked him, “Dave, of all the people I know, you’re in the best position to deal with your own money. Why do you need help?”