Once you’ve settled down and don’t have to worry about finances, your business, or really anything else—what do you do with your time? You work your whole life investing and preparing for retirement, but what are you even going to do in retirement? Hey, Retired Person—Understand That You Hold the World in Your Hands. Well,…
Planning for Retirement: 5 Smart Savings Strategies when Inflation Looms Ahead
The Consumer Price Index (CPI) is often used as a standard way to follow inflation. It measures the average change in prices from one year to the next. When the CPI increases, it’s a sign that overall living costs are on the rise. In May 2021, the CPI for all items increased 5 percent before…
Rising Prices and Investments: A Close Look at How Retirement Accounts Can Be Impacted During Periods of Inflation
Inflation increased by 5 percent from May 2020 to May 2021, as reported by the U.S. Bureau of Labor Statistics. The projected inflation for the coming year sits at 2.26 percent. Still, those saving for retirement and considering their future are frequently feeling nervous. Perhaps rightly so. “While a moderate and consistent degree of inflation…
Saving by Choice, Not by Chance
A question that I answered in a previous column brought a small avalanche of mail, mostly from readers who were aghast that I would suggest they save such a significant portion of their paychecks for retirement. It was money they insisted they could not afford to save. I can only imagine that for a person…
It’ll Work Out Better in the Long Run
Dear Dave, My wife and I are having a financial disagreement. I would like to go ahead and fully fund our Roth IRAs, even though we have about $10,000 in car loan debt. She, on the other hand, thinks we should pay off the debt first. We can probably have either one completed by the…
Struggling With Retirement Savings? Uncle Sam May Give You Extra Credit
Dear Carrie: I work for a small nonprofit. I love my job but don’t make a lot of money, so saving for retirement is hard. The company offers a retirement plan that I contribute to, but there’s no match. How can I save more?—A Reader Dear Readers: This is a great question—and a great time…
Should I Take the Lump Sum Option From My Pension?
Dear Carrie: I’m about to retire, and I have to decide between taking a lump sum or lifetime income payments for my pension. I’m leaning toward the lump sum. Is this a good idea?—A Reader Dear Readers: My first thought is to say congratulations! A pension in any form—whether taken as a lump sum, as…
Seniors Obsess Over ‘Maximizing’ Their Social Security
“I want to make sure we maximize our Social Security payments.” “I am very concerned that we will make a wrong decision and leave Social Security money on the table.” “My wife and I both took our benefits at 62. We are now in our 70s. Everyone I talk to says we made a huge…
Retirement Funding Comes Before College Savings
Dear Dave, A friend told me about your Baby Steps program. I have one question, though. I noticed that according to your plan, saving for retirement should come before saving up a college fund for your kids. Why is this? Natalie Dear Natalie, In short, college funding is not a necessity. Being able to…
Put a Little More Thought Into It
Dear Dave, I don’t like admitting this, but I absolutely hate my job. Last year I almost cashed out part of my 401(k) to start my own business or open a franchise, and doing something like this is still on my mind. Considering how I feel, do you think this would be a good idea?…
-
Recent Posts
-
Archives
- May 2025
- April 2025
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- September 2013
- July 2013
- March 2013
- January 2013
- December 2012
- November 2012
- December 1
-
Meta