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Money Opportunity for Kids

marcus — Tue, 16 Feb 2010 12:00:36 +0000

Teaching kids to ride a bike is easy … if you have a bike for them to ride. Imagine trying to learn to ride a bike by only watching videos and with no bike to actually try your new found skill. So if you’re with me, then you can imagine to effectively educate your kids about money … it really helps to have some money for them. Remember, you don’t want to dilute their beginnings to a foundation to value money by just handing over a bunch of cash to your kids. You want them to understand there is a price/sacrifice for money and learn it’s not to be wasted. To help, provide your kids with opportunities to earn money. Create a “After-Chores Opportunity List.” This list will be chores around the house or neighborhood that are outside the realms of their daily/weekly chores. Possible jobs are picking up litter at the park, shining dad’s shoes, scrubbing the car tires, taking the trash out for a elderly neighbor….be creative and pay modestly. Paying large sums of money in a short period of time will not provide a realistic flow of money and may diminish the value and worth of the perception of “an honest day’s work and pay.” However, without getting too deep, let’s keep it simple and provide a method for your kid to earn some money, so that we can begin teaching some simple components of financial literacy and personal finance.

Retirement Review

marcus — Tue, 08 Dec 2009 19:02:14 +0000

As New Year goals are formed, don’t forget your retirement. Most understand the importance of saving money for one’s future and many even hope to retire someday; however, very few of us ever take steps to actually achieving the ability and financial freedom to retire. The days of working at one company for a lifetime and receiving the “gold watch” on the day of retirement have all but vanished as part of the American way of life. Today’s American employees are apt to change jobs more often than any proceeding generations, and therefore creating opportunities for the individual to explore new and different retirement savings options. Be attentive to the rules, penalties and taxes of withdrawing or borrowing against these employer or self invested retirement funds. Speak with 3rd party financial advisors that will explain the options available to you and the benefits and pitfalls of each. Make sure to discuss any upfront or “loaded” fees attached to any investments. Consider speaking with brokers and direct sales representatives of mutual funds and compare the cost associated with each. When deciding on investments don’t let past performance be the sole indicator to your decisions, as any good investment broker should warn, “past performance is not an indication of future performance.” Understand the difference between the different types of investment and do not be driven solely by the percentage return. And most importantly, recognize the need for this money, to not only aid in planning, but in helping to choose between investments. Some investments are taxed during different stages of the investor’s holding or withdrawal of the investment benefits. For example one may not be taxed on money contributed to a investment plan, but the money will be taxed during the beginning of the withdrawal…or vice versa. You would hate to find that your hard fought retirement plan was going to tax you earlier rather than later and your money on hand is short for your immediate financial plans.

There’s Money in Your Home’s Walls

marcus — Fri, 04 Dec 2009 16:11:13 +0000

A “new-again” trend is resurfacing within the real estate market. People are staying in their homes and remodeling. Sagging real estate values and lack of equity has ushered in the thought of “sweat equity*” and an extended time in a home as major factors to increasing a home’s value. The US Census Bureau states that over the last year remodeling projects has replaced new construction in over 20% of all new business. In addition, spending on remodeling has experienced nearly a 9% increase since this time last year. The $1500 federal tax credit for installing/upgrading energy efficiency systems into homes has lead the charge on many of the remodeling projects across the nation. The tax credit could actually offset the remodeling project costs and lower your energy financial obligation. *Sweat Equity – is the idea that physical work on a project will heighten the value of the item on which the work is being performed.