Parents who start having their own kids when some of their peers are already becoming grandparents face some unique financial challenges. This is a topic Rick knows first-hand, so he had plenty to contribute when Dinah Wisenberg Brin interviewed him for an article on the advantages and disadvantages of being older parents.

One of the biggest concerns is what Wisenberg Brin calls the college/retirement overlap, when parents are ready to retire at the same time the kids are ready for college. This is one of the many reasons Rick strongly advises parents to make saving for their own retirement a higher priority than saving for their kids’ college expenses.

The piece was published September 26, 2011, on CNBC.com. In addition to college and retirement funding, it covers topics such as naming guardians, the challenges of caring for elderly parents and kids at the same time, and the potential role of Social Security benefits.

Read the entire article here.

This post was written by Alan Moore, Financial Planning Analyst with the Kahler Financial Group.

I am writing this post to let everyone know that I will be departing Kahler Financial Group at the end of the week. My wife and I made this incredibly difficult decision in order to pursue other opportunities, both professional and personal. I have thoroughly enjoyed my time here, and appreciate the opportunity I have had to work with each and every one of you on your path to financial independence. My experience here has been memorable, and is something I will forever cherish.

My wife and I are looking forward to the next phase of our lives, however are deeply saddened by our departure. I wish you all the best, and thank you for trusting me to be a part of your financial lives.

We have been searching for someone to replace me, however are still looking. The job has been posted online, and can be viewed here. If you know of anyone that would be interested in being a part of this great company, feel free to direct them to Rick.

An article published online September 23, 2011, in Fortune/CNNMoney suggests that keeping a cool head during volatile times is easier if you deal with your own money issues. The author, Eric J. Dammann, Ph.D., is a clinical psychologist who offers an explanation of money scripts and discusses their role in uncertain economic times.

He cites three common money scripts: “Money is bad,” “More money will make things better,” and “There will never be enough money.” He says that the money scripts term “was first coined by psychologists Brad and Ted Klotz and financial planner Rick Kahler,” but doesn’t mention that the three scripts he cites are taken from the “Top Ten Money Scripts” sections of our book Wired for Wealth.

Read the entire article here.

Theoretically, timing the market could give you a huge payoff. At a recent conference I attended sponsored by Dimensional Fund Advisors, Walton Wellington, Vice President of Investment Strategies, gave the following numbers.

Suppose, 70 years ago, you put $1000 in a savings account. It would have grown to $16,000. If you had invested in the S&P Index and left it alone, you would have $1.8 million. If your holdings included an index with over 3,000 companies, you would have $13.4 million.

However, had you perfectly timed the market, buying at the start of every bull market and selling at the top, you would have $7.2 billion. Conversely, had you sold before every bull market and bought at the top, you would have $3.40, enough for a cup of coffee at Starbucks.

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According to an article on Yahoo Real Estate, the average time it takes to sell a home in the US stands at 117 days. The top 10 cities in the nation average 86 days or less. Tim Hoffman, office manager of Prudential Kahler Realtors, says Rapid City clocks in at a respectable 94 days.  This  underscores the fact that the Rapid City real estate market is one of the better in the nation.

Many of us dream of the perfect business that we would start if we only had the time and money. After we hit 50, we begin to realize that if we don’t start that business soon, we never will. For many, the money might not be readily available, so they dip into their retirement savings by borrowing from their 401k, or taking an early distribution from their IRA. AARP recently released a study showing that starting a business after age 50 was extremely detrimental to the business owners’ retirement nest eggs.

This isn’t to say that you can’t start a business after you turn 50, just that there are some financial considerations: Continue Reading »

As we’re faced with another period of dramatic market swings, investors who panicked and sold everything during the last crash have a chance to take a different course this time. Will they?

Some investors who got out of the market last time learned from that mistake. Others, unfortunately, did not. Based on what I’m hearing from clients, financial planning newsletters, and other financial planners, investors can be divided into three groups.

The largest group (for my clients, that was about 77%) “stayed the course” through the last crash. Around a third of those needed some help in processing their feelings to avoid taking action on their fear and selling out. This time, most of them seem to be comfortable handling their own anxieties and staying in the market.

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With all of the market turmoil over the last several years, what should you be telling your children? We know that our kids are watching and they know things are going on that stress us out. With limited knowledge of markets and economies, how do you explain to them that the stock market is volatile and that unemployment is above 9%?

The first step is to talk in their language. This means using metaphors that they will understand and relate to. Depending on the age of your children, a simple explanation like “We aren’t going to be able to go to the movies for a little while” might be sufficient. For a teenager, this might be the perfect time to teach them about budgets. Sit down and write down every expense that they are responsible for, such as school tuition, gas, cash for dates and dinners out. Then look at where they can help cut expenses to understand the tradeoffs of there not being enough money. Continue Reading »

Almost everyone expected interest rates to rise when S&P downgraded US long-term debt. In a predictably irrational market response, long-term interest rates fell. While this downward trend may eventually reverse itself, now would be a great time to dig out all your mortgage loan paperwork and consider refinancing.

Start with finding out what your current interest rate is on your mortgage loans. Let’s assume you currently have a mortgage with a balance of $200,000, with principal and interest (P&I) payments of $1264 at an interest rate of 6.5%.

Next, do a little shopping. Call two or three mortgage brokers and find out the interest rate you could obtain on a new loan. You will need to give them your household income, the value of your house, and the current balance on your mortgage. If you don’t know the current value of your home, call your county Director of Equalization and find out its assessed value.

Ask the broker to give you the interest rate and payments on a mortgage that is almost equal to the number of years you have left to pay on your loan. Also find out what the interest rate and payments are on a shorter-term loan than your current mortgage, maybe comparing 15-year and 30-year mortgages. Usually, a shorter term has a lower interest rate.

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Westhills Village is probably the most popular retirement community in our region.  We have several clients who reside at Westhills and they all love it!  Westhills is not a senior apartment complex or an assisted living center.  On September 22nd we will host Jenny Telechan, Marketing Director of Westhills to give us all the facts in this informative teleclass.

Join us to learn more about this wonderful retirement community option. To register for this exciting teleclass, please click here.