Luck & Sequence of Returns

Last week’s topic was taxes. This week I’ll talk about luck, which can matter nearly as much to our financial lives. Taxes and luck can go hand in hand – with planning being the link.

The following are highlights from TGIF 2 Minutes one year ago entitled, The Luck Factor otherwise known as “Sequence of Returns.”

Despite all of the calculations involved in investing, there is still an element of luck involved. A specific term for this luck is, “Sequence of Returns.” Otherwise known as risk of timing, which can be the #1 most important concept if you ever wish to spend your savings – and have them last as long as you need.

close up clover depth of field environment
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Continue reading “Luck & Sequence of Returns”

How Much is Too Much in a 401k?

Now that the 2018 tax filing season is mostly over it is time to talk the reality of 2019 taxes – and more important, taxes beyond 2019. This leads to the question, “How much is too much in a 401k?”

work desk
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This subject requires more than one edition of TGIF 2 Minutes. For starters here are a handful of issues, facts and questions to ponder over the upcoming long weekend: Continue reading “How Much is Too Much in a 401k?”

Cars: Costs & Decisions

How much is the “right” amount to spend on BUYING or MAINTAINING a car?? A loaded question. For insight on the answer, know that experts in financial planning cite the “Big 2” expenses of life that must be addressed: Shelter and Transportation. These are the “Big 2” no matter a person’s economic situation. (Note that the experts also say that when analyzing monthly spending, to start with these “Big 2” items, then pay yourself savings monthly, then figure out the rest with Food another “big” and obvious item.)

mercedes benz parked in a row
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Regarding personal transportation, consider the ever-changing world of cars. Cars remain a sizable chunk of our lives in terms of expense, enjoyment …and frustration! It occurred to me to talk a bit about this major expense item when a certain car’s (whose owner will remain nameless) odometer passed the 163,000 mile mark this past weekend. Continue reading “Cars: Costs & Decisions”

Somewhere Between Bitcoin and Cash

PayPal and Venmo: Non-Traditional banking says time and fees

No doubt you have heard of PayPal – and if you have not then read on for a brief introduction. Then there is Venmo, owned by PayPal, which gives you the ability to make payments even more easily in the digital world. Think: potentially saving time and money in a secure way.

cash graph

This is NOT an article about Bitcoin, the non-cash virtual currency which, in the graphic above, would be on one far end of the spectrum (above, far right) …with coin and paper “cash money” on the other end (above, far left). Continue reading “Somewhere Between Bitcoin and Cash”