Financial Planning Insights

November 10, 2009
While managing debt is a primary consideration during your working years, it takes on added importance when you transition from earned income to retirement income. How much is enough? Generally speaking, you should plan to have approximately 75% of your preretirement salary to maintain the lifestyle you had while working. In addition, your nondiscretionary monthly payments (e.g., taxes, utilities, groceries) should equal approximately one-third of your monthly income. Given these parameters, you're now ready to take a closer look at your own potential future cash outlays in retirement. Read More

Most investors would agree that the first rule of investing is to buy low and sell high. This may sound simple, but it hasn't been easy for investors to stick to over the past year as emotion has been on par with the market's volatility. Read More

To help you eliminate your debt, the most powerful tool you have is the amount you're able to pay every month. Too often, people focus on which debt to pay first, negotiating interest rates, etc.—all of which can help—but skip over the one thing that helps more than anything else. So while it may seem counterintuitive, the place to start with eliminating your debt likely has nothing to do with the debt itself. Instead, your initial step should be to look for ways to increase your income and/or decrease your expenses so the extra money can be put toward the debt. Read More