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Random Money Saving Ideas 2013 #1

  By remymartini • January 9, 2013

If you’re like me, you don’t carry much cash. So when you tire goes flat and the closest gas station that has air for the tire charges 75¢ in quarters, you may be in a slight jam. No worries! I’ve got a strange and unique idea to keep you ready for emergency of the tire-inflating or surprise toll road type.

Keep $20 in cash in your car but in $2 bills, but you can just keep it in the glove compartment because everyone knows to look there. You have to figure out what nook you have in your car to put 10 little bills. Every car I’ve been in has some random, unthinkable nook to hide something small so search around your car and I bet you can find it.

I warned you it was strange, but it’ll keep you out of a jam. I saw $2 bills because if you’re like me you would try to avoid spending it because its not very common but if its an emergency you’ll be ok to part with it.

So do you have any goofy, fun ways to save (or stash) money for those random emergencies? I would love to hear your ideas!

– Financial Landscaper

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Retirement?!? Who’s retiring now-a-days?

  By remymartini • January 7, 2013

Whether you’re 20 or 60 or older, you hear the word retirement thrown around a lot. The younger you are the idea of retirement seems so far away and a concern for another date and time. The older you get the more you worry that you haven’t saved enough, how does social security factor in/work, and/or can I afford to retire given the state of the economy?

Retirement means a lot of different things to a lot of different people. But planning for it is key to success, no matter the definition. For example, you love what you do and can’t think of ever retiring and not coming in again. Your definition of retirement may mean stop working 70 hours a week and working 20-30 hours or having the financial capability to come in/out as you please. On the other hand you may want retirement to be never coming in or talking to the office ever again. Maybe it’s something in between. Retirement is whatever you want to make it, but make sure you can define it for yourself and create a plan on how to get there.

Here’s great things to consider when creating your plan:
What is your time frame for your retirement vision?
What is the amount of risk you’re comfortable with?
What are the appropriate investment vehicles to get you there?
How does inflation factor in?
How does social security factor in?
What is the total amount you’re shooting for?
What have you done so far to save for retirement (IRA’s, 401k’s, etc)?

Does this seem a little overwhelming? Understandable, especially when you have a full time job, a family and want to sleep a few hours at night. Whether you’re an expert in numbers and problem solving, sometimes taking the time out to sit down and create a plan can just be the straw that breaks the camel’s back. Hiring a financial planner to guide you through the process and do the hard work for you can save you money and valuable family time. A financial planner is there to help explain where you are, help develop a picture of what you want retirement to look like, and how to get there in a way that is right for you.

If you’re curious to see how you’re doing make sure to check out Waddell & Reed’s personal retirement assessment calculator to see if you’re saving enough!

Until next time, stay sane in this crazy economy!

– Financial Lanscaper

PS. If your plan is to win the lottery to pay for “retirement,” make sure that step 1 is buy a lottery ticket. ;P

 

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Financial Inspiration Friday

  By remymartini • January 4, 2013 , , ,

To help encourage you to live a financially freeing life, every Friday you’ll find an inspirational quote to get through the weekend. Whether it’s to inspire saving or help curb temptation Friday Financial Inspiration should help you get through the weekend with a conscience mind.

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To start us all off on the right foot, let’s take this weekend and the entire year to focus on your goals and dreams. Don’t worry about your neighbor’s or best friend’s flashy cars & houses. Take this to set up your dreams and focus on achieving those this year. If you’re the competitive type, compare your progress each day. Just ask yourself: Am I closer to my goal today than I was a day, week, or month ago? There will be speed bumps along the way, just stay focused on your goal and it will happen.

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Top 5 – Fun Reasons to Chat w/ a Financial Landscaper

  By remymartini • January 2, 2013 ,

1) A Financial Landscaper isn’t the dull banker across the street in a strict suit & tie. A Financial Landscaper keeps it professional, but casual so it’s easier to talk to like a real person and not a banker robot.

2) Keeps it real AND keeps it simple. Though a plan can seem complicated and have lots of intricate details, it’s the goal of a good Landscaper to explain any complex issue in easy understandable details while keeping true to all the facts present

3) Fun to talk with over coffee/smoothie/lunch. Forget about sitting in a sterile office. Take a break from the day to day grudge and chat about life. Share life experiences and goals for down the road to help understand what is important for your financial future.

4) It’s not just about the numbers on a statement, but habits you form for long term financial growth. Sometime the smallest habit can snowball into an avalanche of problems down the road.

5) Failing to plan is a plan to fail and we all know you don’t want that. Have a plan on paper to refer to helps keep your mind in the right place. The other way to keep on track is someone to hold you accountable for your goals and habits, where a Financial Landscaper comes to play.

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Lessons Learned with Skinned Knees

  By remymartini • December 31, 2012

When I was a little kid I got dinged up all the time. I was a proud little tomboy (and still am) always hanging with the boys doing whatever they were doing. Jumping from walls that shielded the walkway from the dirt that held the boundary of my house growing up. Most of the time we’d land on our feet, other times our knees onto hard cement that kissed our knees with it’s rough touch. Once I when landed on my feet but stumbled, my knees landed in broken glass. Not the greatest experience, but I didn’t cry I just walked home went to the bathroom to clean it up. Boys didn’t cry, why should I? Growing up I never had the concept of girls & boys. We were just kids. Some kids like barbies others liked bikes. I always saw it as personal preference, not girly or tomboyish. It’s only now looking back I can reflect on parts of my childhood.

Before I go too far off topic, the reason for my story is not to remember my lovely falls as a child, but to reflect on what I learned from them. The smallest moments can have the most valued lessons as I found out. Horrible things happen, but you learn from them and move on. You can’t dwell on the problems, you can only bandage them up and figure out how not to do it again. Same with work and life. Figure out the problem, bandage it up and figure out how not to do it again.

Another story to share came from a BEAUTIFUL Sunday afternoon on the softball field. I would like to warn you that I have only played softball 1 time in my life. Yes, ONCE. The guys (and gals) at work wanted to start a team and needed players, so I said I would join. I needed something active to do and until basketball season is around I don’t know what else to do. However, I did know I could catch, throw, and hit a ball with a bat, so I’m sure I can do this.

We started about a month ago, I’ve played a total of 4 games now. 1st went well, though if you’re ever out of shape and just throw yourself into any sport, you must realize how your body will probably respond – not the best. This week, I was all rested up and we were playing a double header. I had yet to score, but now was my chance. Garrett hit a line drive down center field and I was on second. I sprinted to 3rd. Everyone’s yelling to keep going. So around 3rd I curve….. SPLAT! right on my face in the dirt. All I was thinking was getting to homeplate. I got up as fast as I could and ran the rest of the way. I MADE IT! I SCORED! Skinned knees, hands, mouth full of dirt, and glasses to match, I made it across that plate! Ha! Take that dirt!

This is what I realized – this is how I live my life. Make a goal and strive your very best to make it happen. Yesterday was scoring, no matter the cost. Today it will be get a client, tomorrow who knows? Take over the world … (I think I’ll leave that to Pinky & the Brain actually). Things happen in life, but what are you going to do to make sure that you reach your goals? Don’t let the dirt in your eyes (and mouth) stop you, keep striving and reaching for those goals!

If you have goals that need guidance and a path to get you there, make sure to contact me and I can see how I can help! Complimentary consultations to sit down and chat and see if I can help as always.

Until next time, stay sane in this crazy economy!

– Financial Landscaper

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The Talk of the Town – Estate Buzz

  By remymartini • December 24, 2012 , ,

Whether I’m at a networking event, meeting with clients, or forming a wonderful new business partnership, I’ve heard a theme recently. Estate planning is the buzzword. A few people I can understand, but so many in such a short period just has to be more than a coincidence.

I’m sure my attorney friends are tired of me bugging them asking them pesky little questions. Which to side track a bit, it is always an “it depends” kind of answer. Nothing is as straightforward as it should be when it comes to the law books.

Estate planning will mean different things to different people. It can mean a “simple” will that you print off the internet and fill in the blanks or it can be a complicated Trust situation. Every family is different. When it comes to estate planning, there is no simple answer and it, like the law, will have an “it depends” kind of answer.

Here is a short list of things to consider when planning how you want to leave your legacy behind.

1) Make sure you have an accurate, up to date inventory so there’s no grey zones. Check out Nino’s www.thestuffinmyhome.com to catalog your belongings. This list not only should include physical items, but money, investments, and insurance to name a few.

2) Hire an experienced estate planning lawyer. The reason I say this is because I can speak from personal experience here. My grandfather hired a lawyer to draft his will. He was a friend of the family that dealt more with oil & mining law than estates. He made a very large mistake and almost costs the family lots of money. It eventually worked out, but it could have ended very badly. If you need a list of suggestions, please let me know and I’ll send you some good names.

3) Be open and honest with your lawyer on who you do and don’t want in your will. This will more than likely include telling the lawyer your family drama and dirty secrets. This isn’t gossip, it will help the attorney figure out the best route to take your plan from a tactical point. They’re bound my attorney/client privilege and want to do what’s in YOUR best interest. Everyone has some kind of family drama and/or secrets, so it probably won’t shock the seasoned estate attorney.

4) Make sure your financial planner is in the loop with your estate attorney. They should go to the meetings and make sure everyone is on the same page. They can also help the attorney with the financial side so you don’t forget anything. Having them work together will not only save a lot of time, it can save a lot of money when you’re considering tax implications of your estate plan. If you don’t have a financial planner, or you don’t have one that will go with you to the estate attorney, give me a call and we can fix that.

5) Be involve and follow up. Make sure to ask lots of questions until you understand. Having a good financial planner with you can really help with the jargon gap between attorney & client sometimes. If there is something the attorney or the planner need you to do, make sure you do it! Once you have a plan in place, make sure you check on it every so often as laws will change and may effect your plan.

These are just some things to consider when developing your own plan of action around your legacy.

Estate planning can be very involved, so make sure you have the right team members to win.

Until next time wonderful readers!

-Financial Landscaper

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Lessons Learned: Use the Right Tool

  By remymartini • December 17, 2012

When I worked at Best Buy, one of the 5 safety steps was “use the right tool.” Pretty harmless and common sense, but you’d be surprised the things that would be MacGyvered up to get something done. Well this same rule applies when you want to get things done, specifically your estate. I know I’m on shaky ground when I refer to a person as a tool (ok, go ahead and laugh now to get it out of your system) but hear me out.

I’m going to draw from my family’s experience with estate planning, more specifically creating a will. When my grandfather wanted to create a will, he went the “easy” route and used a lawyer that he used all the time for MDU in North Dakota. Now this lawyer did wonders with oil and gas law since MDU was a utilities company, so he can make an easy basic Will, right? I mean it should be pretty simple and straight forward. WRONG. Lawyers have specialties for a reason. When my grandfather passed away he left a Trust to his heirs; his children and their spouses. HOWEVER, his wife was not mentioned in the will. Not because of some dramatic reason, but because she had been in a coma for 20+ years. No one imagined that he would die before she did. When you’re an attorney, you should not take these assumptions when drafting a will and need to make sure it is drafted properly to account for whomever may die first. Luckily for our sanity my grandmother had no living relatives to claim the inheritance when she died 2 weeks later. So that was a happier ending to a case that could have easily turned rotten quick.

My grandfather did not have the right tool (still debating if the pun is intended here) to draft his will. Recently in the news Etta James hadn’t sought out the right tools to create a proper estate. Forbes has a great article that you should read here. Another one that comes to mind is the author of the Girl with the Dragon Tattoo. Have you heard of that book (now movie)? I hope so. Stieg Larsson’s last known updated Will was from 1977. He died in 2004. Why would does it matter now, 7 years later? Given the MASSIVE popularity of the books, his estate is in a position to make a LARGE sum of money, but who does it go to? Who owns the rights? His dedicated partner of 20+ years, Eva, or his father & brother? The last updated will is vague on this point. Blood gets the inheritance while the longtime partner gets his manuscripts. Since the manuscripts were published after death, that seems to be a clear cut case for Eva, but if things were simple we wouldn’t need lawyers and wills. It’s a very interesting case, probably worth writing a novel about, but currently there is no ending. It’s just another example of why you should hire the right person for the job.

If you’re in the market for a great lawyer that does estate planning I would strongly recommend Sarah Thacker of Thacker Law Firm. I can’t say enough good things about her and how she helps her clients. She makes sure that not only do you understand the will but anyone reading the will understands it. No “where to,” “here unto,” etc. A well written will that people without a law degree can understand. Imagine that!

Do you have a will? If you don’t, make sure not to post it here because that means you have a target on your back and I’ll bug you until you do. If you do, is it up to date and can anyone that picks it up understand it? Let me know your thoughts!

Until next time my wonderful readers!

– Financial Landscaper

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Cash is CrAzY and Stocks are solid… Say WHAT?!?

  By remymartini • December 10, 2012 ,

I read an interesting article the other day that is great food for thought. Warren Buffett writes a letter every year for Fortune magazine that is like a little chat. He explains “complex” investing terms or scenarios into a language anyone should be able to understand. The article from businessinsider.com is just a preview, but I found it so enlightening.

A basic breakdown is that though many people find cash the least riskiest investment, it’s one of the worst. I find it to be a comfort blanket for people. Something they’re use to and comfortable with and just really don’t want to part with. The reason Buffett says it’s one of the worst investments is because of INFLATION. I know, it’s a horrible, horrible word so we’ll just call it the “I” word from now on. He points out that the value of a $1 from 1900 has the equivalent spending power in 2012 as 3.8 CENTS. That’s pretty depressing. So for all those grandparent and great grandparents that stuffed mattresses and other poor furniture with cash, it’s not worth too much (not assuming it’s a collectible now).

Stocks, on the other hand, people are scared of because of the big crashes and the huge losses we see on TV. However, from just comparing the stock market in 1965 to now, the stock market is up 13X. That can really put the past few crashes into a bit of perspective. If you’re using the stock market for a long term solution, just keep trucking.

Now he goes on to say that cash has it’s place and he keeps a lot on hand knowing that the value will be depleted due to the “I” word, but it’s just a piece of his diverse portfolio puzzle. Whether it’s to maximize the stock market when it’s down (buying low) or cashing out the stock market (selling high) so that he can flip another stock, every type of investment has its place and you just have to understand what that means for your personal investments.

So what are your thoughts? Do you think Warren is off his rocker, or do you see some value in what he writes?

I’d love to hear your thoughts and comments!

Until next time loyal readers,

Solutions Engineer

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Are you part of the 95%?

  By remymartini • December 3, 2012 ,

Are you a woman?

If you said yes, then you may be part of the 95% of women who will be their family’s primary financial decision maker at some point in their lives.

That’s a staggering number I wasn’t expecting, but at the same time not fully surprised. I found this fantastic JPEG on investmentnews.com and thought I would share.

I’m a numbers nerd, as I’m sure you should know by now. But even those that might not like numbers as much will be surprised or at the very least intrigued by these numbers.

What are your thoughts?

-Financial Landscaper

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The New Reality: Student Debt Ball & Chain

  By remymartini • November 28, 2012 , , ,

For the times I just want to mindlessly read silly things, such as best dressed at some awards show I don’t watch or why a NFL superfan has quit his team, I go to Yahoo! News. While turning the pages of the stories, I came across a story about student loans. After turning my brain back on I read a few of the many horror stories about student loans. You can check out the story here.

 

I was VERY lucky that my parents/grandparents helped me go through college without any student loans. For many now it’s just a way of life that they will never pay down. Every month they write a check to Sallie Mae or private bank that holds the loan. Since many are set up like a mortgage, the payments are all interest first so even those payments aren’t paying off the debt itself, just the interest for the debt. Sounds pretty depressing to me. For those parents and students shopping around now let’s take these horror stories and learn from them so we don’t repeat the same mistakes. There are a few areas to look at when gauging your finances to pay for college.

First of course is the college or university you want to attend. How much is that going to cost? The sticker price isn’t the final price in many cases and is negotiable. Also as a cautionary tale from the last horror story, make sure the school you want to go to has substance. Do some research on the college as well as the field you are interested in. Make sure the expectations the college is giving you is reasonable. If it seems too good to be true ask for referrals or see if you can chat with some recent graduates. They will be the best gauge if it’s worth spending the money they are asking to attend the college.

 

 

 

Next make sure to apply for as many grants and scholarships as possible. Here are a few resources:

A quick note on scholarships & grants: make sure to read the fine print. A full ride may require a minimum GPA or other requirements such as working the first 2 years out of college at a certain job. Make sure those requirements are doable in the near future, if you have doubts now, they will probably only get worse later.

 

 

 

Now that you have a solid number (Cost of College MINUS all grants/scholarships MINUS any help from family/friends/savings) now you can shop around for a student loan. Of course interest rate is very important, so the lower the better, but also think about how long the payments are and what exactly will that look like right out of college? That is where the Vertex24’s handy dandy Amortization Loan spreadsheetcan come in handy. This will help you figure out your monthly cost based of the total amount, interest rate, start date and term.

 

 

To get a real gauge on if this payment is ACTUALLY reasonable let’s make a little Post-Graduation budget. For a fun example, let’s say you graduate as an mechanical engineer. We’ll assume you get a mechanical engineering job right out of college that starts at $50,000/year. The Monthly budget might look something like this:

Monthly Income(+) $4166

Expenses(-)
Rent $600 (1 bedroom apartment or with a roommate)
Electric, Water, Trash $100
Internet $50 (You know you have to have fast internet)
Car Insurance $75 (This is cheap if you haven’t hit 25 yet)
Car Maintenance $50 (even if you don’t use it every month, save it)
Food – Groceries $400 ($100/week)
Food – Dining Out (Fast Food, Bars, coffee, etc) $300 ($10/day)
Going Out $500 ($125/weekend)
Savings – Emergency $416 (Save 10% for emergencies)
TAXES $1041.50 (25% Tax Bracket)
Student Loan Payment ???? ($217.50 based on this budget)
401K savings $416 (10% of salary)

Based on this lifestyle, $217.50/mo is the only thing that’s left to pay back student loans. This budget is very rough and doesn’t account for some expenses that a new grad may have such as car payment, gym membership, new professional wardrobe, etc. Though 401k & savings numbers may seem like easy targets to pull money from I would not advise seeing those parts of the budgets as easy targets. Those are your nest eggs and emergency plans when life throws you a curve ball. If you don’t automatically save each month, you’re asking for trouble down the road when life throws you a tree full of lemons.

 

Now let’s take a look at what it might look like if you don’t get that mechanical engineering job right out of college and you can land a job at $13.50/hr full time until the right job comes along.

Monthly Income(+) $2340

Expenses(-)
Rent $400 (Roommates)
Electric, Water, Trash $75 (split with roommates)
Internet $25 (You know you have to have fast internet)
Car Insurance $75 (This is cheap if you haven’t hit 25 yet)
Car Maintenance $50 (even if you don’t use it every month, save it)
Food – Groceries $200 ($50/week)
Food – Dining Out (Fast Food, Bars, coffee, etc) $150 ($37.50/week)
Going Out $250 ($62.5/weekend)
Savings – Emergency $234 (Save 10% for emergencies)
TAXES $351 (15% Tax Bracket)
Student Loan Payment ???? ($296 based on this budget)
401K savings $234 (10% of salary)

Yep, you’ve cut back a lot, and can even afford a higher monthly payment. Is that what your student loan agreement(s) look like though? Under $300/month? The average student debt is now $27,000 and if the interest is 7%, that’s $179.63/month, so maybe. Clearly for those going to a school with a much larger tuition bill it may not be as easy to see a payment less than $300/mo.

 

Do you have a student loan story you would like to share? Horror stories or happy endings are both welcome. I always love hearing feedback.