Money Talk

MARCH 7, 2024

Financial shocks are events that result in unexpected expenses and they are especially challenging for individuals and households with limited resources and tight budgets. Examples of financial shocks are plentiful and include the following: ¨ Big spikes in expenses due to inflation (e.g., childcare, food, insurance, rent, utilities) ¨ Car accidents ¨ Disability ¨ Divorce ¨ Large home repairs (e.g., roof, furnace) ¨ Large out-of-pocket medical or dental bills ¨ Loss of a job ¨ property damage du

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Money Talk

FEBRUARY 29, 2024

A frequently used quote is that “nothing is certain in life except death and taxes.” One of the topics that I wrote about in my book , Flipping a Switch: Your Guide to Happiness and Financial Security in Later Life, is having a “good ending” to your life. But what exactly does that mean? For many people, a “good ending” means dying in peace, preferably at home with loved ones nearby.

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Money Talk

FEBRUARY 22, 2024

With income tax season well underway, many people are getting ready to see a tax preparer to get their 2023 income tax return prepared and filed before April 15, 2024. Some may have a long-standing tax pro while others are selecting a tax preparer for the first time. About half of U.S. taxpayers use a paid preparer according to the Department of the Treasury.

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Money Talk

FEBRUARY 15, 2024

With 2023 tax season well underway, now is a good time to examine income tax rates, which are a percentage of taxpayers’ income that is taxed. The U.S. income tax system is progressive, which means that taxes take a larger percentage of income from taxpayers with higher taxable incomes. Federal marginal income tax rates are established by Congress and change periodically.

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Money Talk

FEBRUARY 8, 2024

A key factor that determines what people spend money on every day is convenience. Convenience generally saves time but can add to the cost of products and services because somebody did some work for you (e.g., marinating meat or fish or making kabobs). An estimated $751 billion is spent annually by Americans on convenience items according to a study by Finder, an online data aggregator.

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Money Talk

FEBRUARY 1, 2024

Many people think you need to earn a high salary (e.g., $100,000+) to become a millionaire. In reality, many people of ordinary means (i.e., middle-income earners like teachers and police) become wealthy over time and achieve a net worth (assets minus debts) of $1million or more. A key factor in their success is financial capability, which includes financial knowledge, decision-making skills, and habits.

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Money Talk

JANUARY 28, 2024

One dictionary definition of the word “misperception” is a wrong or incorrect understanding of something. Often, misperceptions result in faulty decision-making or inaction to address a pressing situation. A financial example where misperceptions are common is estate planning. Below are eight common estate planning misperceptions: Estate Planning is for “The Rich”- No matter how modest their net worth, most adults own some property (e.g., a car, a bank account, and perhaps a house).

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Money Talk

JANUARY 18, 2024

The Wall Street Journal recently published an article with an intriguing title: “The Secret to Sweet Dreams May Be Not to Sleep Together.” It described the not-so-uncommon situation of couples who sleep apart as a result of issues such as snoring, tossing and turning, insomnia, and CPAP machine noise. What happens, however, when couples who sleep apart at home (or friends) go on a cruise and are confined together to a 200 to 300 square foot cabin for days?

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Money Talk

JANUARY 11, 2024

Mutual funds are 100 years old this year, but they have a formidable competitor for investor dollars. In recent years, exchange-traded funds (ETFs) have been gaining market share versus mutual funds. This post describes what ETFs are and how they differ from mutual funds. Like mutual funds, exchange-traded funds (ETFs) are a popular investment that provides broad diversification that helps reduce investment risk.

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Money Talk

JANUARY 4, 2024

Here is a financial New Year’s resolution: make the most of free money! “Free money” is exactly what these two words indicate: money (or goods and services in lieu of cash) that comes with no (or sometimes a few) strings attached. Free money does not have any work requirement, however, and is often income tax-free. Common sources are businesses, individuals, and the government.

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Money Talk

DECEMBER 28, 2023

On December 12, I presented the ninth annual (2023) Personal Finance Year in Review webinar for OneOp , an online professional development resource for military family service providers. Below is a summary of ten key events and trends from the past year that were discussed: Inflation Rate- The year-to-year inflation measure, the consumer price index (CPI), was 6.4% in January 2023 and 3.2% in November.

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Money Talk

DECEMBER 21, 2023

Every few months, I review my personal learning journal and summarize notes taken from various webinars. Below are 12 nuggets of information that I gleaned from 2023 webinars: Getting Going- Some people procrastinate on saving for financial goals because goals seem too big and intimidating. Flip this around, focus on small do-able steps, and start doing something. 529 Plan Myth - Some people think having a 529 plan lowers chances for college financial aid.

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Money Talk

DECEMBER 14, 2023

Many older adults retire at the end of December to “start fresh” financially in a new calendar (and tax) year. Many younger adults wonder when they will be ready to retire and how they will know. Below is a brief discussion (in no particular order) of 12 signs of retirement readiness: Financial Preparedness - This includes adequate savings and other income sources (e.g., Social Security, pension, rent) as indicated by online tools like the FINRA Retirement Calculator.

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Money Talk

DECEMBER 7, 2023

As the year winds down so, too, does your opportunity to take proactive steps to reduce 2023 income tax due in April 2024 and, perhaps, taxes due in future years as well. Below are some money-saving tax planning strategies to consider. Seek professional advice as needed. Early RMD Withdrawals - The “financial gap years” between age 59½ and 73 (or 75 if born in 1960 or later) are when there are no longer penalties for withdrawals from tax-deferred accounts but required minimum distributions are n

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Money Talk

DECEMBER 2, 2023

I recently attended the 2023 Association for Financial Counseling and Planning Education (AFCPE) Symposium along with over 600 financial educators, researchers, planners, counselors, and other practitioners. Below are six key take-aways: Climate and Finances - Financial impacts of climate change include the cost of property damage and infrastructure repairs (think floods, hurricanes, wildfires, and tornados), higher home energy spending (e.g., air conditioning due to more frequent heat waves), c

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Money Talk

NOVEMBER 25, 2023

It seems like everyday we hear stories about people who become victims of fraud. They are tricked into sending advance deposits for products or services they never receive or making wire-transfers to fraudulent accounts, or divulging sensitive information that can be used to wipe out bank accounts or commit identity theft. What to do? Nobody can completely reduce their risk of being defrauded because not all of our personal information is under our control.

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Money Talk

NOVEMBER 10, 2023

Whether you shop in person at “brick and mortar” stores or prefer to shop online, price discrimination is a fact of life. In simple terms, price discrimination is the practice of charging different customers a different price for the same product or service. Think airline seats, hotel rooms, cars, auto insurance, credit card interest rates, cell phone plans, and items sold at garage sales.

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Money Talk

NOVEMBER 9, 2023

When someone uses the phrase “gap year,” we often think immediately of young adults who plan experiential learning activities (e.g., traveling, volunteering, and working) between high school and post-secondary education or college graduation and graduate school. In other words, something that young adults do in their late teens and 20s. Think Malia Obama and Elon Musk.

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Money Talk

NOVEMBER 2, 2023

The statistics are startling! According to a 2020 study , 28% of retirees suffer from depression. That’s almost 3 in 10 older adults! As blogger Fritz Gilbert wrote in his Retirement Manifesto blog , “that’s a shockingly high number and far too little is written about this problem.” He went on to note that “those forced into retirement (i.e., through downsizing or illness) are especially prone to experiencing the challenge of depression.

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Money Talk

OCTOBER 25, 2023

Earlier this year, I taught a class and a webinar about inflation where I presented dozens of ways to mitigate the effects of rising prices through reduced spending. Inflation is down significantly from 2022 but still remains elevated. Below is a list of inflation-fighting strategies to consider listed by household expense category: Groceries Make substitutions (e.g., applesauce for eggs in baking), buy store vs. national brands, eat more meatless meals, stock up on sale items, consider shopping

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Money Talk

OCTOBER 19, 2023

Several months ago, in the space of one day, I attended a webinar about longevity by a financial planner, read a research report about “longevity literacy,” and attended a health education class for older adults. At the end of the day, I realized that all three of these events were interrelated. Below are nine of my key take-aways from information that was provided about living well in later life and not running out of money during your lifetime: Medical Advances - Many of the leading causes of

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Money Talk

OCTOBER 11, 2023

Almost half of all U.S. workers age 65-69 are self-employed as are over two-thirds (68%) of those age 75-79. For almost four years, I have been a full-time financial education entrepreneur. For 27 years prior, Money Talk was a “side hustle.” For this post, I decided to reflect upon ten benefits of self-employment in later life that I (and other older entrepreneurs) have experienced: Additional Income - A successful business provides additional cash beyond Social Security and other expected sourc

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Money Talk

OCTOBER 5, 2023

We are all influenced by things that we see online and social media is one of the biggest online influences. An estimated 81% of Americans say they have ever used YouTube vs. 69% for Facebook, 40% for Instagram, 28% for LinkedIn, 23% for Twitter, and 21% for TikTok. According to a 2022 report by the Global Web Index, 58.4% of the world’s population uses social media and the average usage is 2 hours and 27 minutes.

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Money Talk

SEPTEMBER 28, 2023

Longevity is defined by the Merriam-Webster dictionary as “a long duration of individual life.” It is also a key financial risk for older adults (i.e., not having enough saved and outliving retirement savings because this money has to last a long time). A recent study found that 63% of pre-retirees feared running out of money more than death vs. 46% of retired respondents.

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Money Talk

SEPTEMBER 21, 2023

I recently taught a class with the same title as this post. It began with a summary of recent “scary” economic events: recession fears, rising interest rates, bank failures, volatile stock prices, increased costs of basic expenses due to inflation, layoffs, low savings rates, increasing credit card APRs and household debt, housing unaffordability, and more.

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Money Talk

SEPTEMBER 14, 2023

One place where there is a gap in adult financial education is programs for older adults age 65+. The bulk of community and workplace programs cover financial tasks and decisions to get “to retirement,” not “through retirement." One of the niche audiences for my business, Money Talk , is older adults grappling with financial issues such as creation of a retirement “paycheck,” paying taxes on required minimum distributions (RMDs), and simplifying financial accounts.

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Money Talk

SEPTEMBER 7, 2023

This year, my husband and I kept our Christmas tree up until late March by converting it to a red Valentine’s Day tree in February and a green St. Patrick’s Day tree in March. Back in March, I posted a photo of my tree full of green shamrocks and noted that my grandparents were Irish immigrants who came to America with dreams for a better life and very little money.

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Money Talk

AUGUST 31, 2023

I recently attended a seminar about financial concerns facing women in retirement. Below are seven key take-aways that I gleaned from the presentation and accompanying materials: Income Gap - This is the difference between an individual’s (or couple’s) total retirement income from various sources (e.g., pension, Social Security, annuities, dividends/capital gains, full- or part -time employment, self-employment) minus fixed (e.g., rent and car payments), variable (e.g., gas, food, and gifts), an

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Money Talk

AUGUST 24, 2023

I recently attended several programs geared for older adults and read several books about living in retirement. Below are some key takeaways: Common Fears - Many surveys indicate that the #1 fear of retirees is running out of money during their lifetime. Other frequently cited fears are health care expenses, long-term care expenses (e.g., assisted living and/or skilled nursing care), steep stock market declines, death of a spouse and a subsequent loss of spousal income, the financial needs of ad

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Money Talk

AUGUST 16, 2023

After declining in early years of the pandemic, the percentage of older adults in the labor force is increasing. An estimated 21.9% of Americans age 65+ were working in 2022. In 2019, the older worker cohort included nearly 15% of those in their 70s. Reasons for continued work include a need for additional income (inflation), boredom, social contact, structure, and a sense of purpose.

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Money Talk

AUGUST 10, 2023

As noted in last week's post, I am creating a new Money After 70 course for older adults. Below are 10 more changes, opportunities, and challenges for septuagenarians (people aged 70 to 79): Lasts and ROLE Calculations - As people age, their time orientation changes. As I wrote in my book, Flipping a Switch , people start doing return on life expectancy (ROLE) calculations.

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Money Talk

AUGUST 3, 2023

I am currently creating a new Money After 70 course for older adults. Below is a brief summary of 10 changes, opportunities, and challenges for septuagenarians (people aged 70 to 79): Social Security Benefits - Older adults should claim Social Security at or before age 70. After age 70, monthly benefits stop increasing, even if people continue delaying benefits.

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Money Talk

JULY 27, 2023

While most people associate the word “salon” with a hair styling establishment or a nail technician, it also has another meaning. According to the Merriam-Webster dictionary, a salon is also an assembly of notable people, i.e., those with special expertise or accomplishments. I first became acquainted with this alternative definition of salon when it was used by the National Endowment for Financial Education to invite personal finance educators/researchers to convenings related to retirement dec

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Money Talk

JULY 20, 2023

In 2020, I wrote the book Flipping a Switch to describe 35 transitions experienced by older adults. The target audience was clearly the age 55+ set, but occasionally I am asked if younger adults can also benefit. My answer: an enthusiastic Yes! Below are eight ways that Flipping a Switch content may be useful to younger readers: Understanding Your Parents Time Horizon - An insightful chapter is Green Bananas, ROLE Calculations, and Lasts , which describes the changed time orientation of older ad

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Money Talk

JULY 13, 2023

The SECURE 2.0 Act of 2022 , passed last December, has financial planning opportunities for both the accumulation and distribution phases of retirement planning. Below is a brief summary of a few key retirement savings provisions from about 100 changes contained in this legislation: RMD Changes- Effective January 1, 2023, the starting age for required minimum distributions (RMDs) for people born from 1951 to 1959 is now 73 instead of 72 and the starting age for those born in 1960 or later is now

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Money Talk

JULY 6, 2023

During the past two months, I summarized information from various recent webinars that might be useful to others. Below are seven more information tidbits in my final installment: Back-Door IRAs- This is where people who earn too much income to qualify for a Roth IRA contribution put money into a non-deductible traditional IRA because there are no income limits for non-deductible traditional IRAs.

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Money Talk

JUNE 28, 2023

It’s halftime for your 2023 finances and a perfect time to review where you stand, make mid-year adjustments, and complete recommended financial planning action steps. Below are ten mid-year financial tweaks and tasks: Tax-Deferred Savings Tweak - Perhaps you will get a raise on July 1. Consider completing the paperwork needed to save more money from July to December in your employer’s tax-deferred retirement savings plan.

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