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Major Spending Changes For Middle Age and Soon-To-Retire Americans In The Last Twenty Years

October 2012 Last week, the National Center for Policy Analysis issued a study that compared spending by Americans in the two decades before their classic retirement age of 65 years, and compared this information to what existed twenty years ago.  The study used the Bureau of Labor Statistics’ Consumer Expenditure Survey. Here is a summary [...]

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Avoid Investments Using Significant Non-GAAP Financial Measures

May 2012 In 2003, in response to Sarbanes-Oxley requirements, the Securities Exchange Commission (SEC) adopted Regulation G and Item 10(e) of Regulation S-K.  These regulations concern financial reporting that is not in accordance with Generally Accepted Accounting Principles (GAAP).  Generally, Regulation G requires a reconciliation of the GAAP and Non-GAAP measures.  In January 2010, the [...]

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Applying Investment Rules Increase Returns and Satisfaction

July 2011 Behavioral economics and finance use social and emotional factors to understand the limits of rationality in making economic decisions.  A recent survey by Barclays addressed techniques used by wealthy investors to increase both investment returns and their personal satisfaction.  The survey covered over 2000 net worth individuals across the world, all of whom [...]

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401(k) Savings Calculator

401(k) Savings Calculator A 401(k) can be one of your best tools for creating a secure retirement. It provides you with two important advantages. First, all contributions and earnings to your 401(k) are tax deferred. You only pay taxes on contributions and earnings when the money is withdrawn. Second, many employers provide matching contributions to [...]

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Simple Loan

Loan Amortization Enter your desired payment - and let us calculate your loan amount. Or, enter in the loan amount and we will calculate your monthly payment. You can then examine your principal balances by payment, total of all payments made, and total interest paid. Press the report button to see a monthly payment schedule. [...]

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Plan Savings

Is your brokerage or insurance company offering you a free or low cost 401(k) using using 'Safe Harbor' or SIMPLE provisions?  If so your 'free' plan could be costing hundreds of thousands of dollars over a plan with vesting provisions.  This will help you calculate the savings, which can be used to improve your bottom [...]

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The Ten Best Ways To Save Big

September 2012 There are plenty of ways to be thrifty. We do not mean to minimize Benjamin Franklin’s advice that “a penny saved is a penny earned”, but there are some ideas that have a much bigger impact. Here are the most important areas which are often neglected: Your career is your most important asset [...]

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Seven Biggest Retirement Mistakes

December 2012 As with most things in life, a few mistakes can dominate the final results achieved. Here are the most expensive common retirement financial mistakes to be avoided: Failing to build an adequate starting point – Sure, this one seems obvious, but no list would be complete without it. Albert Einstein said, "Compound interest [...]

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Investing Made Easy

November 2012 The best-performing investment type varies from year to year, and is not easily predicted. For this reason, financial advisors uniformly suggest diversifying (or spreading) investments among different asset classes. Asset allocation refers to how an investor distributes investments between stocks, bonds, and other alternatives. Each of the major asset classes can be achieved [...]

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Affluent Should Consider Roth Conversions In 2010

October 2009 Starting in 2010, taxpayers at any income level can convert regular IRAs to Roth accounts. Roth accounts have easy-to-understand advantages and disadvantages. Roth advantages include tax-free income and no required minimum distributions. But, taxes must be paid on all initial contributions to a Roth account, including immediate additional taxation on conversions from a [...]

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Investment Calculator – Should You Sell Before New Capital Gains Rate Increases Occur?

September 2008  One of the differences between the presidential candidates is their tax policies. Current tax rates arise from two pieces of legislation supported by and signed into law by President Bush during his first term, as follows: The Economic Growth and Tax Relief Reconciliation Act of 2001 lowered ordinary income tax rates for individuals. [...]

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Affluent Get Big Benefit From the Roth 401(k)

March 2006   Effective January 1, 2006, a Roth 401(k) option is available.  This Roth 401(k) option does not have the income limitations that have previously prevented use of Roth IRAs by affluent persons.  Employers with an affluent work force (such as law firms) should definitely be offering this option. Roth contributions, unlike pre-tax deferrals, [...]

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