Budget Method #2: Save First System I’ll let you in on a shameful I-should-know-better-because-I’m-a- financial-planner secret of mine. I HATE making a budget and tracking my expenses. So, I don’t. “WHAT?!?! Don’t they make you turn in your meticulous monthly budget with corresponding receipts in CFP Class?” you say. NO! What’s my secret? Well,…
Budget Method #1: Envelope System Maybe you’ve heard your grandparents talk about how they managed money in their younger years. They got paid, cashed their paychecks, and divided cash into envelopes labeled for each monthly bill: Rent, utilities, groceries, gas, clothes, and entertainment. When the cash in each envelope ran out, you were done spending…
Budgeting: Why we hate it and how to make it our friend. Do you know why so few people have a budget? Because budgeting stinks! Budgets are just like diets. They call to mind what you can’t do and how you can’t enjoy life. A general feeling of deprivation surrounds the word “budget.” And, as…
One thing that I run into with older clients is a worry that they help their adult children too much. If they are worried about this, chances are they are right! By giving adult children money for cell phone bills, insurance, or unexpected car repairs, parents are not teaching them to save for unexpected expenses…
It’s summer time and the livin’ is easy…except when you are trying to entertain kids or guests without breaking the bank. Here are 3 fun ideas that don’t cost a lot and keep the smiles coming. Take in a non-concert at Red Rocks. Red Rocks Amphitheater is known for its great concerts and events, but have…
It’s a bitter irony that after years of slugging money into your tax-deferred retirement accounts (401(k)s, 403(b)s, Traditional IRAs, SIMPLE IRAs, SEP IRAs, 457s) and being told by the IRS that you CAN’T get the money out until you are 59 1/2, when you turn 70 1/2, the IRS tells you that you MUST…
For most of us, it’s hard to imagine not needing every penny of our retirement savings to support our own selves in our later years. However, for a lucky few, a portion of retirement savings will be passed on to their (hopefully eternally grateful) children. For those lucky few, the Roth IRA has the…
That’s right, folks. Albert Einstein thought the tax code was too complex to understand. Where does that leave us mere mortal non-physicists? Hopefully, reading the Sullivan Financial Planning blog! When anyone is talking to you about investment ideas, the question you need to be asking is simple: What’s in it for me? In the case…
Welcome back! Last week the blog was about the basic differences between Traditional IRAs and Roth IRAs. This week, I’ll get into more detail about how each works. How much can I put in? Traditional IRAs: You may contribute up to $5,500/year ($6,500 if you are aged 50 or over) and take a tax…
Welcome to the Sullivan Financial Planning inaugural blog. People in the know tell me that blogs should be short, entertaining, and informative. Easier said than done when talking about personal finance. At least the entertaining part. As far as informative goes, I’m starting with a series about using Traditional IRAs or Roth IRAs. This first…
