The Charles Schwab Guide to Finances After Fifty: Answers to Your Most Important Money Questions - Hardcover

Schwab-Pomerantz, Carrie; Cuthbertson, Joanne

 
9780804137362: The Charles Schwab Guide to Finances After Fifty: Answers to Your Most Important Money Questions
Hardcover
ISBN 10: 0804137366 ISBN 13: 9780804137362
Verlag: Crown Currency, 2014

Inhaltsangabe

Here at last are the hard-to-find answers to the dizzying array of financial questions plaguing those who are age fifty and older.

The financial world is more complex than ever, and people are struggling to make sense of it all. If you’re like most people moving into the phase of life where protecting—as well as growing-- assets is paramount, you’re faced with a number of financial puzzles.  Maybe you’re struggling to get your kids through college without drawing down your life’s savings. Perhaps you sense your nest egg is at risk and want to move into safer investments. Maybe you’re contemplating downsizing to a smaller home, but aren’t sure of the financial implications. Possibly, medical expenses have become a bigger drain than you expected and you need help assessing options.  Perhaps you’ll shortly be eligible for social security but want to optimize when and how to take it.

Whatever your specific financial issue, one thing is certain—your range of choices is vast. As the financial world becomes increasingly complex, what you need is deeply researched advice from professionals whose credentials are impeccable and who prize clarity and straightforwardness over financial mumbo-jumbo.

Carrie Schwab-Pomerantz and the Schwab team have been helping clients tackle their toughest money issues for decades.  Through Carrie’s popular “Ask Carrie” columns, her leadership of the Charles Schwab Foundation, and her work across party lines through two White House administrations and with the President’s Advisory Council on Financial Capability, she has become one of America’s most trusted sources for financial advice.
 
Here, Carrie will not only answer all the questions that keep you up at night, she’ll provide answers to many questions you haven’t considered but should.
 

Die Inhaltsangabe kann sich auf eine andere Ausgabe dieses Titels beziehen.

Über die Autorin bzw. den Autor

CARRIE SCHWAB-POMERANTZ is president of the Charles Schwab Foundation and senior vice president at Charles Schwab & Co., Inc., where she has spent the past thirty years serving clients and advocating for investors. Under her leadership the Foundation has established several notable financial education programs, including a curriculum for teens developed in collaboration with Boys & Girls Clubs of America that has been cited by the U.S. Treasury’s National Strategy on Financial Literacy as a best public-private sector initiative. She also spearheaded a program with AARP Foundation to provide financial education and coaching to people age fifty and older. Her popular personal finance column “Ask Carrie” is syndicated weekly through Creators News Service.  She’s a Certified Financial PlannerTM certificant and the coauthor of the popular book about family finances It Pays to Talk.
JOANNE CUTHBERTSON is also a Certified Financial Planner(TM) certificant and publishing director at Charles Schwab & Co., Inc. She has worked in financial and technology publishing for three decades.

Auszug. © Genehmigter Nachdruck. Alle Rechte vorbehalten.

My Top Ten Recommendations for Every Age

Your financial life begins long before age 50, whether it’s with your first savings account or your first job. So before we get into the questions that particularly concern finances after 50, I’d like to share some financial steps that I believe are essential at every age—­whether you’re 25, 50, or 75. Think of them as exercises you can do to make sure you’re in the best financial shape for whatever the next phase of your life brings. I suggest you review them one by one, and keep them handy for future reference. And please share them with anyone—­at any age—­who wants to be financially fit.

1. Figure Out Your Net Worth

This simply means writing down and adding up what you own (your assets) and then subtracting what you owe (your liabilities). Are you in the plus or the minus? Knowing your net worth will help you decide next steps for saving, debt reduction, and budgeting. It also gives you a way to measure future progress. If your net worth is in the plus, great. If it’s in the minus, read on. Many of the questions in this book will help you take positive action.

Set Up a Personal Net Worth Statement in Three Easy Steps

Setting up a net worth statement is as easy as creating a simple checklist and doing some basic math.

1.List your assets (what you own), estimate the value of each, and add up the total. Include items such as:

oMoney in your bank accounts

oValue of your investment accounts

oValue of your car

oValue of your home

oBusiness interests

oPersonal property, such as jewelry, art, furniture

oCash value of any insurance policies

2.List your liabilities (what you owe), and add up the outstanding balances. Include items such as:

oMortgage

oCar loan

oCredit card balance

oStudent loans

3.Subtract your liabilities from your assets to determine your personal net worth.

2. Track Your Spending and Make a Budget

Now that you have the big picture, let’s get into the details. Are you on top of monthly expenses? Write down your essential expenses such as your mortgage, food, transportation, utilities, and loan payments. (Include savings in this list!) Then write down nonessentials—­restaurants, entertainment, even clothes. Be sure to factor in big-­ticket items that come periodically, such as insurance premiums and real estate taxes. Does your income easily cover all this? If it doesn’t, it’s time to prioritize.

Smart Move: Track your spending for thirty days. Does reality match your projections? If you need to cut back, Question 2 has some practical suggestions.

3. Reduce Your Debt

Should you get out of all debt? Not necessarily. Some debt, like a mortgage, can actually work in your favor. But how much debt is too much? An industry rule of thumb is that no more than 28 percent of your pretax income should go toward home debt; no more than 36 percent should go toward all debt (home, car, credit cards, etc.). If possible, it’s wise to stay well below those limits. For more on debt reduction, see Question 13.

Smart Move: To efficiently pay down credit card debt, focus on the highest interest rate balances first.

Good Debt vs. Bad Debt

Not all debt is equal. Some types of debt can be used as a financial tool to provide opportunities; other types can derail your carefully laid plans. The key is to know the difference.

•Debt that can work for you—­To work for you, debt should ideally be low-­cost and have potential tax advantages. For instance, with mortgages and home equity lines of credit, you’re borrowing to own a potentially appreciating asset, and it may be tax-­deductible. You can deduct the interest on mortgage debt of up to $1.1 million on your primary and/or secondary residence, whether the loan is to purchase the home or make major improvements. (Up to $100,000 of this can be home equity debt such as a home equity line of credit, which can be used for any purpose; be sure to check with your tax advisor.) Likewise student loans have comparatively low rates, and interest can be tax-­deductible, depending on your income. The benefit is enhanced career opportunities and increased earning potential.

•Debt that can work against you—­Generally speaking, debt that’s high-­cost and isn’t tax-­deductible is bad for you. Think credit cards and auto loans. This type of debt usually carries the highest interest rates. It’s the most costly over time. And it means you’re borrowing to own something that depreciates, so you’re immediately losing value—­like when you drive a new car off the lot!

4. Create an Emergency Fund

What if the unexpected happens—­you lose your job or have a medical emergency? Will you have the cash you need? Best to build an emergency fund that covers at least three months of essential living expenses so you don’t derail your financial plans. Keep these funds in a checking or savings account, or a money market fund where they’re easily accessible. If you have enough equity in your home and have good credit, you might also consider opening a home equity line of credit (HELOC). You don’t pay any interest until you use it, and if you do, interest payments may be tax-­deductible. It’s a smart way to cover yourself “just in case.”

5. Determine If Your Retirement Savings Are on Track

The earlier you start, the less you’ll have to save each year. If you’re 50 and haven’t started to save for retirement, you’re going to have to sock away a large percentage of your income every year for many years. But if you’re 30 or 40, you can save a smaller percentage. Even if you’ve been saving regularly, you might be surprised by just how much you’ll need—­especially when you factor in health-­care costs. To see if you’re on track, see Question 1. If you’re confused about which retirement account is best for you, see Question 4.

At a Glance: How Much Should You Be Saving?

Age you start saving% salary you need to save

20s10–­15%

30s15–­25%

40s25–­40%

50s40% or more

The benefit of these guidelines is that once you start to save, the percentage won’t change as you get older. The person who starts to put away 12% for retirement when she’s 25 will never have to save more than 12% of her income. And unfortunately, if you wait too long to start saving, you’re just setting yourself up for failure. You may not be in a position to save enough, so you’ll have to adjust your expectations. Starting early is a huge advantage.

saving fundamentals: What Should You Save for First?

One of the hardest things about saving is figuring out where your money should go first. The Schwab Center for Financial Research has developed these eight Savings Fundamentals to help you prioritize and make the most of your savings dollars.

1.Contribute enough to your company retirement plan to take full advantage of your employer match

2.Pay down high-­interest consumer debt

3.Build an emergency fund

4.Maximize retirement savings

5.Save for a child’s education

6.Save for a home

7.Pay down other debt

8.Keep investing

To make it easier on yourself, follow the first four fundamentals in order. Complete the final four according to your personal priorities and situation. But above all, save, save, save!

6. Automate Your Finances

Do you have your monthly bills on auto-­pay? How about your savings? Don’t stop with the...

„Über diesen Titel“ kann sich auf eine andere Ausgabe dieses Titels beziehen.

Verlag
Crown Currency
Erscheinungsdatum
2014
Sprache
Englisch
ISBN 10 
0804137366
ISBN 13 
9780804137362
Einband
Gebundene Ausgabe
Anzahl der Seiten
432
Kontakt zum Hersteller
Nicht verfügbar
Verantwortliche Person
gpsr@libri.de
gpsr@libri.de

Europaallee 1
Bad Hersfeld
36244
Deutschland

Weitere beliebte Ausgaben desselben Titels

9780553418965: The Charles Schwab Guide to Finances After Fifty (Signierte Kopie) (1. Druck)

Vorgestellte Ausgabe

ISBN 10:  0553418963 ISBN 13:  9780553418965
Verlag: CROWN BUSINESS, 2014
Hardcover