Archive for Planning

Waterfall Approach to Money Management

| June 27, 2011 | 0 Comments

Taking a page from project management methodology, the Waterfall model follows a step by step flow that moves in one direction through phases of a project to reach the end with the desired result.  The project cannot move to the next stage until each preceding stage is complete.  Any changes that alter a prior stage’s results trigger […]

Filed Under: Planning

How Big Does Your Nest Egg Need to be to Retire?

| April 14, 2011 | 0 Comments

Anyone who plans to retire at some point should run through this abridged formula to get an estimate of where they stand with their retirement goals.  Five major questions need to be answered when figuring out how much money you will need to save to retire and live a lifestyle similar to what you are […]

Filed Under: Planning, Retirement

Tips To Become a Saver

| March 4, 2011 | 0 Comments

I’ve talked to a number of people who say they have a hard time saving money, not just for investments, but even for a stable emergency savings account.  The excuse I hear most often is that they don’t know how to save.  The easiest commitment I recommend is for people to not buy anything unless […]

Filed Under: Planning

SEP-IRA Pros and Cons

| September 9, 2010 | 0 Comments

A SEP-IRA is a Simplified Employee Pension plan in the form of an IRA (Individual Retirement Account).  A SEP-IRA allows employers a easy way to contribute to their employees’ (and their own) retirement.  To fund a SEP-IRA, an employer contributes directly to an IRA for each employee in an equal percentage basis (See IRS Publication 560).  The […]

Filed Under: Planning, Retirement

Understanding Risks in Investing

| May 14, 2010 | 0 Comments

Understanding the risks of your investment choices is a key element in planning.  Risk is not limited to how much one might lose in the markets.  That’s only downside risk.  Risk also includes opportunity cost or upside risk.  While most investors think of an investment’s risk in relation to how much they might lose if it goes down after they buy it, upside risk […]

Filed Under: Investing 101, Planning