“Even the checkbook-challenged, filing system-deficient and perpetually messy can take steps to shore up their finances without undergoing a major personality overhaul.”

In a January 18 article at CNBC.com titled “How the Financially Disorganized Can Budget and Save,” financial writer Dinah Wisenberg Brin has some suggestions for keeping track of your spending without a detailed budget. She cites Rick’s suggested strategy to “remove everything of importance — taxes, insurance, car and house payments, vacation and emergency savings, retirement funds — from the paycheck before it hits the bank.”

You can read the entire article here.

Here’s a new twist on an old New Year’s Resolution: If you want to give yourself the security of financial independence, try budgeting the way many wealth accumulators do.

The secret? They don’t budget.

Your first reaction might be, “Of course these people don’t budget! They have so much money, they don’t need to.”

That may be true for some of those who have money today, but I’m referring to people who want to remain wealthy or those who are “wealth accumulators.” These are people who don’t start out with money, but who build up significant wealth over time.

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In a December 16 article in the online magazine Mainstreet, Kristen Colella discusses some innovative ways to give financial gifts. She goes beyond ideas like college funds or cash for grandkids to consider stocks, collectible items, and even remodeling projects. Rick is one of the financial planners she interviewed for the piece. It offers some creative suggestions for last-minute Santas, especially those who have generous budgets for stocking stuffers.

Read the entire article here.

Salvation Army bell ringers. Angel trees. Appeals in the mail from charities, churches, and community organizations. Office and club gift exchanges. The family Christmas list that expands year by year.

This time of year, the spirit of giving gets a serious workout. For some of us, it can quickly turn into a spirit of frustration as we feel overwhelmed by requests and obligations.

Maybe one answer to make the season more manageable is to become more conscious about your giving by creating a “giving portfolio.”

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Retirement is a word I’ve tried to purge from my vocabulary. Few people really know what it means anymore. Instead, I like to think of retirement as being a stage in life where you get to choose what you want to do, when you want to do it, and with whom. It can also be that time when you attain financial independence and no longer intend or need to earn an income to support your lifestyle.

Sometimes, however, “early retirement” can throw us a curve ball before we’re prepared for it or ready to become financially independent. This often comes in the form of a job layoff, termination, or health issues that require we no longer work for an income.

Here are some action steps for an unexpected early retirement:

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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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Traditionally, advisers have said a well-diversified retirement portfolio could throw off 4% per year in income in perpetuity; more recently, some firms have created more flexible models that let retirees take 8% or more. Catey Hill, a reporter with Smart Money, writes that now that’s in jeopardy, with some advisers recommending retirees take no more than 2% to 3%, less if they can help it. “A lot of the old rules go out the window,” says Jeff Seymour, managing director of Triangle Wealth Management in Cary, N. C.

Catey spoke with me about whether the 4% rule was dead.  I told her that not everyone is ditching the 4% rule.  “A large number of people can still use it and have a 90% confidence that they will not run out of money.” To get the best results, clients need a diversified portfolio (I recommend an equal mix of stocks, bonds and alternative investments like commodities and real estate), as well as both international and domestic stock and bond exposure.)  Read the entire article here.

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

Did you know that the average cost of a wedding is $25,000? For those that are financially established, this may not seem like a very daunting price tag, but for a young couple, this amount could hurt their new relationship.

Based on personal experience, most young couples don’t have $25,000 in the bank for pay for their wedding, and some may end up borrowing the money. Continue Reading »

We are happy to have Alan Moore, Financial Analyst with the Kahler Financial Group guest blog for us today.

According to a recent study, 45% of Americans didn’t pay any federal income tax last year. Many of those Americans not paying any income tax actually received money from the government through refundable income tax credits.

I was shocked at the number of Americans not paying tax largely because I sent Uncle Sam a check for $1,463, even though my wife and I were students last year. According to the Bureau of Labor Statistics, the average household in 2009 (2010 numbers aren’t available yet) earned $43,460. In 2010, my wife and I were graduate students earning $1,000 each per month, plus some money for additional summer work, totaling $35,664. We made less than the average household, and yet did not qualify to be in the 45% group that didn’t pay federal income taxes. Continue Reading »

I’ve known Bari Tessler Linden for a number of years.  She is one of the early pioneers in financial therapy and  the creator of the Conscious Bookkeeping.  I had Bari come up to Rapid City several years ago to present to KFG clients.  She has recently created a new Home Study Program that I am excited about.  She will host  a free 90 minute teleclass on April 19^th, at 6:00pm MT.

The teleclass will provide a gentle walk through of:

• How to build your financial house on a foundation of clarity, intimacy, and ease
• Find out which money tools can help you end your unconsciousness around money
• How to do self-guided Financial Therapy to transform your relationship to money
• 3 ways to turn boring bookkeeping into an enlivening spiritual practice
• Secrets to making finances fun (hint: your values will guide your spending)
• How to get clear on the big vision for your life and how to align your finances to make it happen
• How a healthy relationship with money can make the other areas of your life glow

I highly recommend Bari to anyone who is wanting to get more our of their money.   To sign up, click here.