7 Money Conversations You Want To Have With Your Kids- Financial Life Focus

One of the most important things we can do is help our children learn how to handle money.  Michael Kay has some good ideas to help you do this.

Steve

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What you teach your kids about money lasts a lifetime.

And like most important lessons, it isn’t just what you tell them to do, it’s how they see you operate every day. The values you demonstrate will shade and shadow your kids’ money behavior for the rest of their lives.

And it starts early. Kids are like little sponges who absorb everything (like repeating that four letter word that just slipped out of your mouth).

So rather than letting your kids ONLY learn by example, consider these seven conversations to help your kids learn how to make money work for them:

Money is just a tool. Having money is not an objective by itself, but a means to live your life with options and a sense of security. This is a great lead-in to talk about work and what it takes to make money.

via 7 Money Conversations You Want To Have With Your Kids- Financial Life Focus.

There’s Only One Thing Certain About Market Uncertainty

This is a great article from Michael Kay about market uncertainty (which we are now very familiar with) and what you should do about it.

Without a doubt, the are things that we cannot predict.  You must have a plan and stick with your plan – in spite of market turmoil.

Let me know what you think.

Steve

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You sit down to breakfast, open the web page or your newspaper and the headline hits you right smack between the eyes: “Market Falls on _________ Uncertainty.” You can fill in the blank:

  • Global Concerns
  • Federal Reserve Meeting
  • Employment Report
  • Congressional Gridlock

The possibilities are endless, but there is a headline all stocked and ready for any given situation—conceived to draw you into the story and keep you glued to each successive story.

So what are the certainties in a universe of uncertainties and what can you do about any of it?

Let’s begin with what we know. We know history.

via There’s Only One Thing Certain About Market Uncertainty.

How to Win the Loser’s Game Part II With Eugene Fama

This is a short video on the importance of keeping investment costs low.  I think you will find it interesting.

Steve

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The investment industry and the media tend to focus on fund performance. But research shows that the most reliable indicator of long-term investment returns is in fact cost.

Expressed as percentages, fund fees appear relatively modest. But, in Part 2 of the documentary, the Nobel Prize-winning economist Eugene Fama warns that the effect of compounding means that, over time, the impact of fees and charges on the value of our investments can be huge.

Journalist Merryn Somerset Webb, Mark Dampier from Hargreaves Lansdown and Gina Miller from the True and Fair Campaign also express concern about overall charges.

The message for the investor is clear: keeping costs as low as possible is crucial to a successful investment experience.

via How to Win the Loser’s Game Part II With Eugene Fama.

A Little-Known Social Security Spousal Benefit Option

One more reason that it is worth thoroughly investigating your social security options.  An interesting article from Jim Blankenship.

Steve

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Most everyone is familiar with the concept of Social Security Spousal Benefits – if not, click this link for a complete explanation.

vintage photoIn this article, we’ll be discussing an option that is available to all married recipients of Social Security retirement benefits – but you might not have thought of it. For most all married couples, it makes the most sense for the spouse with the higher wage base – that is, the spouse that has earned the most money throughout his or her working career – to delay receiving Social Security retirement benefits as long as possible.

As described in the article about credits for delaying Social Security benefits, each year that you delay receiving your Social Security retirement benefit past your full retirement age (FRA) can result in up to an 8% increase in your benefit amount. When delaying like this, it often also makes sense for the spouse with the lower wage base to begin receiving benefits at the lower rate, either at the early retirement age of 62, or upon reaching FRA. Then later, when the spouse with the higher wage base begins taking the increased, delayed, benefits, the spouse with the lower wage base will begin receiving the spousal benefit, based upon one-half of the higher wage base spouse’s benefit.

But Wait, There’s More!

Read the complete article here:  A Little-Known Social Security Spousal Benefit Option – Getting Your Financial Ducks In A Row.