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.

If the premise of a new book, Academically Adrift, is correct, college might be just a waste of money. 

In spite of soaring tuition costs, more and more students go to college every year. A bachelor’s degree is now required for entry into a growing number of professions. And some parents begin planning for the expense of sending their kids to college when they’re born. Almost everyone strives to go, but almost no one asks the fundamental question posed by Academically Adrift: are undergraduates really learning anything once they get there? Continue Reading »

I’ve had an interesting conversation on Twitter recently where I was “tweeting” (that’s “talking” for the over-50 crowd) about a research study that indicated when paying off debt, there is no advantage psychologically to paying off the smallest debt first.  Instead, you should apply your funds to the highest interest rate debt.

Of course, paying off the debt with the highest interest rate makes rational sense.  When just doing the math, it always is the better financial decision.  Still, the study suggests that the human brain is wired to pay off the smaller debt first. Continue Reading »

Millions of people have made a New Year’s resolution to finally start tracking their spending, making a budget, with the goal of spending less and saving more. “Understanding how to stick to a plan once you’ve made it isn’t a financial issue, it’s a motivational one,” writes Heidi Grant Halvorson, PhD.  She suggests five effective strategies you can use to make sure you follow through on your good financial intentions.  Click here to read more.

Some of the best material on how to successfully manage your money is produced by Dave Ramsey, a nationally syndicated radio show host.  I’ve recommended Ramsey’s material in several of my books. 

Here is a chance to attend a one night course that will give you a glimpse into his philosophy and 13-week course from Joel Hanks, a certified Dave Ramsey counselor. 

The one night workshop  will be on Tuesday, January 11th, at 6:30 pm at the Seventh-Day Adventist Church, located in the lower level of the church at 4703 South Canyon Road, Rapid City, SD.  You can get more information at 390-6962.

Maybe a great New Year’s resolution this year will be to forget those big, overwhelming financial goals and focus on the small stuff.  That’s exactly what Sheryl Nance-Nash suggests in her recent article for AOL’s DailyFinance.com.  “Baby steps lead to walking, and eventually to running,” Nash suggests.  She interviewed some of the top financial minds in the country and boiled their advice down to 10 great suggestions to super charge your path to a better financial future.   To read the entire article, click here.

As a species, humans are notoriously poor at following through with their plans. In this series on living a sustainable life, Tara Siegel Bernard writes that, “Sticking to a budget — a dirty word even among many financial planners, who prefer the more euphemistic ‘spending plan’ — feels too much like dieting. And we often fail at both for the same reasons: too much focus on the restrictions, not enough on fun. So it’s not surprising when people end up binging later, more than making up for dollars not spent or calories not consumed.”

To read the article and some of the advice she gleaned from her interview with Rick Kahler, CFP, click here.