finances

The Importance of Being Solvent

Julia

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Wealth Isn’t About Money;
It’s About Freedom to Do What You Want

True wealth is the freedom to spend your days doing what you’re passionate about and what you think is important. If you are not living within your means and your cost of living is high, you may have no choice but to keep slogging away at the job you don’t like. But if your costs are low, you’ll find it easier to save money and you’ll be in better shape if you get laid off.  You’ll need a smaller nest egg to retire in comfort, and you may have the financial freedom to take a lower-paying job that you like.

But store up for yourselves riches in heaven, where moth and rust do not destroy, and where thieves do not break in and steal. Matthew 6:20

Want to get your living expenses under control? Try these three steps: Read more →

Use Your IRA To Buy Investment Properties

Julia

Don’t put all of your IRA eggs into one basket.

 Putting your hard-earned IRA assets into a “self-directed” IRA can be a very good idea to grow long-term, tax-deferred or tax-free assets. But it doesn’t work for everyone.

With taxes going up for most people, you might be paying more attention to your tax-deferred retirement investing options, such as your Individual Retirement Account (IRA). And with property prices going up, you might ponder whether you can invest those IRA funds in real estate to both defer (or eliminate) taxes and earn a fair rate of return.

Here are a few things you should specifically consider if you think using an IRA to buy investment properties could work for you. Read more →

Unspoiled Children, No Rod Needed

Julia

Parents Can Be Generous Without Turning Children Into Entitled Little Terrors

You want to give your children everything. But sometimes you can go too far and create a spoiled, entitled brat.

The consequences can be severe: In addition to acting like whiny complainers now, spoiled children are more likely to grow into financially dependent, irresponsible adults plagued by overspending and debt.

“Some parents want their children to have everything for free,” says Katherine Dean, managing director of wealth planning at Wells Fargo Private Bank in San Francisco. “But the real world doesn’t work that way.”

Financial advisers and therapists suggest various ways to avoid spoiling your children. Read more →