Demonstrators shouting in the streets. Chaos in the government. Politicians leaving the capitol. No, this isn’t the Middle East. I’m talking about Wisconsin and Governor Scott Walker’s proposal to reduce the bargaining power of public employee unions.

When politicians attack “special interest groups,” we tend to think of greedy corporate fat cats, small business owners, and various types of wealthy investors all jockeying to get the best possible deal from the government on grants, loans, regulations, and taxes.

Surprisingly, the largest special interest group of all is none of these. It is those who work for the government and the unions that represent them. No single interest group gives more to politicians than their public unions.

Continue Reading »

Only a small number of employers will benefit from the ballyhooed 35% tax credit for employers who pay for at least 50% of their employees’ health insurance.  The credit is available for employers with under 10 employees and average wages of under $25,000.   That will affect only small businessess who pay minimum wage, most of whom can’t afford to pay benefits anyway. 

In an interview with Investment News, I said, “Most financial planning firms with more than 10 employees probably won’t qualify at all because firms of that size likely will have at least a few professional salaries that will push the average too high.”

You can read the whole article at http://www.investmentnews.com/article/20110220/REG/302209987.  (Sorry, my hyperlink wasn’t working for some reason.)

Do you need motivation to help you save for retirement? Here’s a suggestion: try living for a month on nothing but your projected Social Security check.

The reason this might work lies within the human brain. There’s a big difference between what we know and what we do. Most of us intellectually “understand” that someday we’ll be unable to work and will need to survive on an income based on what we “did” rather than what we “do.” Most of us “understand” that Social Security and welfare programs provide for only a Spartan existence.

Yet, 68% of Americans say they haven’t saved enough for retirement and struggle to change this self-destructive behavior. And that’s just the ones willing to admit the truth.

Researchers have long searched for a psychological explanation as to why humans often behave so irrationally. What we know is that saving for retirement is similar to exercising, dieting, or quitting smoking. All these activities offer future benefits rather than immediate gratification. Such a value proposition doesn’t sell well to the human brain, which is wired for “now.”

Continue Reading »

The National Association of Personal Financial Planners distributes a bi-monthly newsletter for consumers.  This month the articles include: 

• Stock Ratings, For What They’re Worth
• Comparing Mutual Funds and ETFs Medical Planning Could
• Lower Your Taxes
• Should You Pay Off Your Mortgage Early?
• Ever Been Caught in the Rain?
• Consumer Webinar Schedule

You can optain a copy of the newsletter by clicking here.

I can’t tell you how many clients have told me they would be interested in having a Facebook account if either they could be sure it would be set up to protect their privacy or someone would just show them how to do it.
Well, it’s your lucky day.  In this teleclass, Rick and guest speaker  Michelle Kane will tell you everything they know about setting up a Facebook account and making it private.   In the teleclass, we will actually attempt to set up a new Facebook account for a surprise guest. 
The teleclass will be held this Thursday February 17, at 2:00 PM, MT, or, you can catch the recording on our website 24/7 under teleclasses.  Join the fun (at the very least it should be entertaining) and register today!

A recent online article in Financial Advisor magazine pointed out some disturbing factors that don’t quite support the “golden years” view of life after employment. The piece by Robert Laura, author of Naked Retirement, was titled “The Dark Side of Retirement.”

According to Laura, retirement for too many people is marred by what he calls a “hidden epidemic” of depression and addiction. He suggests financial planners can help clients avoid these pitfalls by paying attention to non-financial aspects of retirement.

For me, of course, Laura was preaching to the choir. I’ve long since learned from my clients that making a successful transition from employment to retirement is about much more than money.

One way to make yourself less vulnerable to retirement’s potential dark side is to think about retiring early. This doesn’t necessarily mean planning to quit your job at age 55. Nor am I suggesting that you start telling all your friends how you can’t wait until you qualify for Medicare and senior citizen’s discounts.

Instead, start well before retirement to think about what you want your life after work to be like. As part of that process, take a hard look at what you actually get from your work.

Continue Reading »

Three years ago I wrote a column critical of some investing advice offered by Dave Ramsey, the radio show host who specializes in helping people follow budgets and pay off debt. I have a great deal of respect for Ramsey and recommend his books, but on this particular issue I believed he was wrong, and I said so.

You’d have thought I suggested Mother Teresa wore combat boots. I received comments attacking my intelligence, my judgment, my investment knowledge, and my ethics. (To be fair, I also received some comments agreeing with me.)

The video of that column has over 44,000 views on YouTube and is still attracting new comments. One person pointed out indignantly that Dave had recommended LONG TERM GROWTH (shouted in all caps for emphasis) funds, while I was falsely claiming bond funds were superior. Excuse me? The column was actually about real estate investment trusts (REITS) and never mentioned bond funds.

Continue Reading »