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The Retirement Conundrum: Near-Term vs. Long-Term Goals
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Everything I read tells me the same thing when it comes to saving for retirement: contribute to your 401(k) and start a Roth IRA.
I contribute to my 401(k) so that my employer-match is maximized, but that's it. I don't max out on the overall contributions, nor have I yet opened an IRA.
Many people would tell me I really should either max out the 401(k) and/or start funding a Roth. I totally understand why they'd say that; I realize the benefits of tax-free growth.
But the reality is, I have near-term goals that need addressing, namely purchasing a larger house, getting ready for a family, and saving up for a possible business venture.
Socking away a bunch of money for use when I'm 60 or beyond is the practical, conservative thing to do.
But what happens if I never reach that age? Or what if I do reach that age and do get to my money, yet I realize my "prime years" were spent living in a cramped house, working for someone else, and did not contain any luxuries?
Has it been worth it?
I'm not saying I'm not planning for a retirement, because I am with my 401(k) and other investments, including mutual funds and real estate.
I am planning to use those investments wisely and spread them out over my life. So I'm not so sure the bulk of my savings should go into formal retirement programs.
If anyone has any advice or has been in the same situation, I'd like to hear it.
Tom Valenti is a marketer and project manager who currently works for a financial institution in New Jersey. For more info, visit him at http://tomvalenti.com.
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Do You Manage Your Money Online?
Within the last year, there has been a proliferation of interactive money management sites. If you don't know how they work, they basically categorize your income and spending so that you can better track your finances.
Depending on the service, you enter in your own data or can have it scraped from online banking sites you already are signed up with. Kind of like what one would see in Money or Quicken, but online, and often they give advice based upon your data.
For instance, if they see you have a high-interest credit card, they might suggest one with a lower rate. As of now, they all seem to be free of charge.
Some examples: Wesabe, Mint, Buxfer, Geezeo, Billeo, Quizzle. I know I've seen even more. I can't recommend or offer too much individual comment on any of these because I haven't used them enough and, frankly, I don't feel like going through the set up for each one.
I really don't know how anyone decides which ones(s) to use.
The ancestor of this technology seems to be the account aggregators, such as Yodlee. With the explosion of so-called Web 2.0, they've evolved into something more. It's inevitable there will be a shakedown sometime soon, with some collapsing, some merging, maybe some charging, and some being bought by banks or online banking providers.
Until that happens, I plan to sit on the sidelines.
Is anyone using any service like this yet? If so, how has it (or not) helped you?
Tom Valenti is a marketer and project manager who currently works for a financial institution in New Jersey. For more info, visit him at http://tomvalenti.com.
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Save the Earth, Save Money
I recently watched Al Gore's An Inconvenient Truth.
Wow, what a downer.
I've always been somewhat mindful about not being wasteful in terms of consumables, but I was never an "environmentalist." This movie really makes you rethink priorities, both personally and on a global level.
The conclusion is what you'd expect — if we don't change our ways now, Earth as we know it will no longer exist. Some might say that this movie presents only one side of the argument, and perhaps it is does exaggerate some risks (as a few scientists have pointed out), but I think the only ones who totally refute the idea of global warming are those who value big business over all else.
So, what does caring about the environment have to do with saving money? A lot!
Think of all the things you could do to cut down on waste and thus save money: use public transportation, instead of buying that book or magazine read it at the library, insulate the pipes in your house, switch to CFL bulbs, etc. Bankrate.com has a nice guide that goes into more detail, as does Green And Save.
I've already begun to change my ways, switching from conventional electricity to a mix of solar/wind/water power. It's a little more expensive, but spending an extra $5 per month is the least I can do.
Tom Valenti is a marketer and project manager who currently works for a financial institution in New Jersey. For more info, visit him at http://tomvalenti.com.
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Refer a Friend, Make Some Extra Dough
As a reader of this blog, you already know that there are some pretty attractive returns available to you in the online realm.
In addition to earning a higher rate, you can pad your account even more by taking advantage of programs such as "Refer A Friend."
ING's program is perhaps the most popular of this variety. You refer a friend who funds a new account with at least $250, and the friend receives an extra $25, and you get a bonus of $10.
ING says you can earn up to $500 in bonus money through this program (that would be 50 successful referrals!), but I know that just recently they cleared their lists so people have the potential to go beyond even that amount.
I have successfully referred probably four people to ING. I'm happy to earn the money, and I'm also glad I can help them save. ING makes it very easy to send the referrals; I just wish I knew more people who wanted to invest online!
Another large bank with an online referral program is Bank of America. Though I don't know if this is a standing offer, they are currently offering a bonus of $25 to both the referring party and the one who opens a new checking account.
Unlike ING, BofA has fairly complicated rules about forfeiting the money in the case the new checking account closes before a certain amount of time passes. The process also isn't as streamlined as ING's, but if you know someone who is looking for a free checking account and doesn't mind signing up online, this is a nice deal.
I'd be interested in finding out what percentage of new accounts and/or balances comes from these referral programs. If anyone knows of any similar programs offered by other banks, or other types of bonus programs, let us know in the comments section.
Tom Valenti is a marketer and project manager who currently works for a financial institution in New Jersey. For more info, visit him at http://tomvalenti.com.
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File Your Taxes Online: What's the Best Option?
It seems everywhere I go I'm inundated with solicitations from H&R Block, Liberty, and a slew of local accountants.
It's tax time, they all want my business, and most seem to want me to come into their physical establishments.
Maybe a coupon or promo item would at least make me to consider moving from the online tax filing service I've been using the last few years. Until that happens, I'll stick with H&R's online TaxCut service.
Before starting with TaxCut, I filed using one of the free services the IRS promotes on their site. I must say, TaxCut (and its competitors I quickly researched) are far superior to the couple of free services I had used in the past.
But I do now see that TaxCut and some other higher profile services are now available for free, as well. For those who qualify, that's a nice deal.
How do you file your taxes? Also, let us know what your experiences have been with online tax services.
Loading ...Tom Valenti is a marketer and project manager who currently works for a financial institution in New Jersey. For more info, visit him at http://tomvalenti.com.
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