University of Chicago social scientist Harold Pollack says that everything you need to know about finances will fit on one index card. His advice is summarized below: MAX your 401(k) or equivalent employee contribution. Buy inexpensive, well-diversified mutual funds. Pay attention to fees. Avoid actively-managed funds. Never buy or sell an individual security. The person… Read article
Tag Archives: savings
Get Better Savings Rates
With interest rates on savings accounts near zero, what do you do with your money in savings? Here are 2 ideas: 1. Get a high-yield checking account. You can earn nearly 20 times the rate of the average savings account and also avoid typical checking account fees. Local banks and credit unions typically offer the… Read article
Emergency Cash Fund
Given the volatile nature of the world we live in, it is prudent to prepare yourself with a basic supply of food, other necessities, and money—in case of an emergency or a change in life situation. Emergencies or Life Changes When you hear “emergency,” you probably think of a hurricane, earthquake, or other natural disaster. Maybe you… Read article
Wait for Retirement a Few More Years
In 1995, workers said they expected to retire at age 60 on average. In 2012, the average worker expects to retire at 66. Benefits of postponing retirement: First, you can nearly double your annual Social Security payouts if you delay retirement from age 62 to 70. In addition, your extra 8 years of income play… Read article
6 Ideas to Build Your Savings
1. Have money automatically deposited to your 401(k), savings account, or college savings account. This is a more sure way to build your savings. Although fewer than 40% of savers do this, it is easier to exercise self-control if your money is less available. 2. Each time you get a raise in pay, send half… Read article