Roth IRAs

I told you yesterday that I loved Roth IRAs, and today, I'm going to tell you why. Roth IRAs are funded with after-tax dollars, so you don't get a tax deduction at the time you invest your money. However, if your Roth has been open for five years, and you are at least 59 1/2, you pay no taxes on any distribution. In other words, the growth is tax free!

In addition, Roth IRAs don't have the same kind of penalties for early withdrawals as a traditional IRA. If you fund an IRA and you later need the money, as long as you only withdraw the money you invested, you pay no tax and no penalty. Let's look at an example:

You invest $5,000 in your Roth this year, and you earn $500 in growth, making your account balance $5500. If you have an emergency, you can take a tax-free distribution from this Roth, regardless of your age and regardless of when you funded it, for $5,000. If you touch the $500 growth, you will owe taxes and penalties.

This is somewhat logical, since you already paid your taxes on the $5,000 before you put it in the account. However, it's a very nice feature, especially for a young investor who can't imagine tying up money until she is 59 1/2.

The other advantage to the Roth is that you don't have to take Required Minimum Distributions (RMDs) when you're 70 1/2 from your own Roth. You can maintain the account and pass it to heirs. Therefore, the principle has longer to grow before distributions must be made. Also, as long as you have earned income, you can fund your Roth after the age of 70 1/2.

In 2010, you can fund your Roth with $5,000, assuming you don't fund a traditional IRA. (The total funding of both cannot exceed $5,000). If you are 50 or older, you can invest an additional $1000.

If you are single, you can fully fund a Roth if you earn less than $105,000 a year. You cannot fund a Roth at all if you earn more than $120,000. The $15,000 phaseout allows partial funding. If you are married, filing a joint return, you can fully fund a Roth if you and your spouse earn less than $166,000, and you cannot fund at all if you earn more than $176,000. The $10,000 phaseout (yes, I know it makes no sense when compared to the single phaseout) allows partial funding.

Tools and Taxes

Greetings from the Arctic! As I sit working, ice is accumulating on all the trees, the grass, the now, finally, the roads. How happy am I that technology lets me work wherever I am?

No, I'm not talking about hammers and screwdrivers today! I'm talking about the tax impact of different kinds of accounts you can use to save for retirement.

Basically, the tax treatment of your investment accounts take one of three forms, and they each have advantages and disadvantages.

1. You put the money in the account in pre-tax dollars. This means that you don't pay any tax on the money until you withdraw it during retirement. The idea is that you have more money to grow for all those years, and that helps your compound rate of return. (We talked about that a couple of days ago.) Then, once you are in retirement, you are supposed to be in a lower tax bracket, so when you take the withdrawal, you pay fewer taxes than if you had paid taxes back when you were working. This is the most common way to save for retirement. The only thing to ask yourself is whether or not you believe you are in a higher tax bracket today than where you will be in retirement. And this assumes that you do, in fact, retire. I'm beginning to think that for some people, retirement is actually no longer a major goal. Of course, health issues can interfere, but I really believe this demographic is changing quickly.

2. You put the money in a Roth IRA in after-tax dollars. If you wait until you are 59 1/2 and the account has been open for five years, when you take the distributions, you pay no tax. Withdrawals are totally tax free. I love Roth IRAs and will be devoting an entire blog to them in the near future.

3. You put the money in a normal, taxable account in after-tax dollars. Then, rather than paying income tax, you pay capital gains on the realized gains of each investment. A realized gain is a position you actually sold for a profit, not a position that you still hold. Also, if the investment pays any dividends, these are also taxable. Capital gains tax takes two forms: short term and long term. Short term capital gains are for those investments you have held less than a year. The short term capital gain rate is your ordinary income tax bracket. Long term capital gains are for those investments you have held longer than a year. Capital gains tax rates have been very low and are expected to increase, probably in 2011, but only to 20% on most investment portfolios. The advantage to this kind of account is the access to the funds and the lower tax bracket than ordinary income taxes.

What to do? I can't tell you. But I would suggest looking at your financial situation and deciding whether or not you would be wise to diversify the tax treatment of your invested money.

Be prosperous!
Peggy

Extreme Makeover Home Edition info. (yes, with Ty)

Okay--change of topics just for today (not caused by the boring nature of yesterday's post)!!!

D.M. Wealth Management, Inc. is a food drop off point for Ideal's EXTREME Food Drive, in conjunction with "Extreme Makeover Home Edition's" coming to Norman for a segment.

The food goes to United Way of Norman, and is distributed among local charities.

Bring me nonparishable food (cans, bottles, dried, etc.)! I want to fill three offices!

D.M. Wealth is located at 3750 W. Main St., Norman, OK 73072 in Park on Main Executive Suites in a two-story building with a red roof behind the Kinkos. Call 405-329-8884 if you get lost.

Thanks a lot and be prosperous!
Peggy

Calculating the Numbers (Ugh!)

First, thanks to everyone who attended the Norman Chamber of Commerce Business Marketplace this evening--lots of fun and a nice opportunity to meet more community members!

Now, let's talk about how financial planners dazzle you with "The Number" you need to retire. "The Number" is the size of the account you need to live in the way you want. It's not magic--it's a financial calculator. Here's how it works.

The calculator has a built-in function that calculates compound interest. It needs to know several things:
1. How many years will you live during retirement (the assumption today is that you will live to between ninety and one hundred years old).
2. How much interest can your money earn during this period of time? This is the rate of return your portfolio grows (often a number between 5-8%).
3. What will inflation run?
4. How much money are you going to need every month to live?

With these numbers, the calculator can help you calculate the total value of all money you will need at the beginning of retirement.

You offset this need with any monthly pension or Social Security you expect to receive.

The next step involves how long you have until you retire:

1. How many more years are you going to work?
2. How much money do you have saved right now?
3. How much money are you going to be able to save every month?
4. What rate of return will your portfolio grow (again, being safer involves assuming between 5% and 8%)?
5. What will inflation run?

The calculators are easily purchased at discount stores. My favorite is the HP 10B II, and there is also a function in Excel that can do it.

I know, I know......you're never going to do this. I don't blame you. Ask your financial advisor to show you the steps involved (in fact, make them calculate it for you).

I just want you to understand the inputs and the assumptions. This way, you understand how "The Number" is calculated.

Be prosperous!
Peggy

Retirement Spending

There is a common rule of thumb that suggests you will need about 80% of your current expenses during retirement. Although a convenient assumption, if you think about it for a minute, it likely isn't true. Some people dream of a retirement with cruise ships, warm water, and fruity drinks. Others, look forward to spending a week or two at the lake. Some want vacation property; others just dream of Sunday dinners surrounded by children and grandkids.

Your vision for your retirement will determine how much money you will need.

Now, there are some trends about retirement income. Low income individuals need nearly as much in retirement as they make while working because their monthly expenses consist of paying all the necessary bills with little money left. If someone rents, not owns, and has little "spending" money, they will have virtually no difference between working and retirement.

Middle class families often see a decline in expenses, as houses are paid off, working expenses minimize, and retirement plans are modest.

However, upper-middle to upper class families may actually see an increase in retirement expenses, as the desire for living the good life leads to second mortgages and expenses.

Just be careful not to accept immediately a vision of your retirement provided by someone who doesn't know you!

Be prosperous!
Peggy

Summing It Up

We've spent the first three weeks of the year looking at cash flow. You've written down your short, mid, and long term goals, and you know about how much they will cost. You know (or you're figuring out) how much you spend each month, and you're looking at ways of cutting down your discretionary spending if you need more to save.

If you have credit card debt, you're creating a plan to pay it off. And I believe that if you're still reading this three weeks later, you will be successful in that goal! Patience is the key. If your credit score isn't great, you're taking steps to repair it.

Where do we go from here? I think it makes sense to address a question I hear often from clients: "Do I have enough money to retire?" We're going to look at how to determine the answer to that question. We're also going to look at different ways you can save for your retirement and advantages and disadvantages to each. It is not my goal to tell you what to do this year. My goal is to give you all the tools and let you do it, yourself!

Be prosperous!
Peggy

The Magic of Compound Interest

Albert Einstein, the scientist of Relativity fame, is rumored to have said "The most powerful force in the universe is compound interest." Not a bad endorsement from a man who believed that time could turn on itself in certain conditions! I don't know if he really said it, but I hope so. And I know that compound interest is an amazing phenomenon.

Compound interest is the alternative to simple interest. If you earn 5% simple interest on $100, at the end of one year, you have $105. You put the five dollars in your pocket, and at the end of year two, you have $105 again. On the other hand, if you earn compound interest, at the end of the first year, you again have $105, but this time, the entire $105 earns interest the second year, raising your amount of interest earned to $5.25, for a total of $110.25. The third year, you earn interest on that entire amount. The results of this compounding can be incredible.

For example, if you invested $46,030 at 8% compound interest for 40 years, at the end of that time, you would have $1,000,000! Of course, the problem with this equation is that you have to start with $46,000, and most 25 year olds can't do that. So let's use an easier (more realistic) example.

Let's assume you can save $50 a month for forty years and earn 8% compounding interest. At the end of the 40 years, you will have approximately $174,550! If you could save $100 a month for forty years, the final balance grows to almost $350,000! That's impressive.

Don't get discouraged if you haven't been saving as much as you need--start today, and you will be excited with the results.

Be prosperous!
Peggy

How Are You Doing?

For Christmas, Santa brought my husband and me a Wii, with "Fit Plus." Now, every morning, I turn it on and a virtual balance board asks me how I'm doing and whether or not I've eaten breakfast. It congratulates me if I've lost weight and encourages me if I haven't. Today is my Wii update to you.

How are you doing writing down all of your expenses? Really good? Great--keep it up! Not so good? That's okay. You could actually start today and still be on track for nearly all the year. Don't give up! You can do it!

The hardest part of any lifestyle change is beginning. Your goal to gain control of your finances in 2010 is super! Don't let a little slump stop you.

(Now, don't you feel better?)

Be prosperous!
Peggy

"The Way You Do The Things You Do"

I am a big fan of Suze Orman, as I think I have already told you. I particularly enjoy her conversations about how the events in our lives impact our financial choices. She is actually participating in a bigger conversation where people in different professions discuss the emotional component of our money.

To illustrate my point, I'm going to give you a fictionalized account of a conversation I have had with many (usually, but not always, female) clients.

"Peggy, I don't know how I got back in debt. I had paid everything off, and suddenly the debt is back."

To which I say something to make them feel better (because they are already beating themselves up; I don't need to help). Then, I start asking questions about how life is--work, relationships, attaining goals, etc.--and because I work from the beginning to establish a position of trust, they tend to tell me the truth. 99.9% of the time, something is going wrong somewhere else in the person's life. When I ask about the timing of this other event, it nearly always coincides with the reacquisition of the debt. Why? Because our relationship with our money is impacted by our relationship with other things.

Not only that, once it starts going wrong, it gets worse. Think about the last diet you tried. Somewhere along the way, you ate something not on the "approved" list. What did you do? Well, I have a tendancy to eat everything in sight for the rest of that day. Once I've made a mistake by eating the donut at the office for breakfast, I might as well have fast food for lunch and buttered popcorn that evening as I watch television. I reason that if I've already messed up, what's the point. Well, people make this same mistake with their money. If they make a mistake and buy something they didn't need, they rationalize that they might as well buy two or three other things as well.

Suddenly, you're spiraling out of control. Diets don't work, and budgets don't work, either. They are lifestyle changes.

I close with two pieces of advice: if you're wondering why the debt won't go away, look at other areas of your life. Sometimes, when those situations can be resolved, the money problems resolve themselves. The second piece of advice is whether you are on a diet or a budget and you make a mistake, forgive yourself. Don't compound it out of guilt.

Be prosperous!
Peggy Doviak

Becoming a Perfect "10" (credit, that is)

Tonight I'm going to give you a few ways of improving your credit scores. We'll see next week why the scores matter so much. If your credit score isn't as high as you like, try these ideas:

1. Never, ever make a late payment. Credit card companies don't actually care if you pay the balance off in full, but they care if the payment is late. (I care if the card isn't paid off in full, but this column isn't about me!) If you can set an automatic minimum payment coming from your bank account, you won't forget to pay the bills.

2. In fact, set every payment you can to be made automatically out of your bank account. Be aware that in spite of credit reform legislation, you may have a very short window between when you receive your bill and when payment is due. If the payments are autodeducted, you don't have to keep up with them as much.

3. After you have paid off a credit card, don't cancel it. Part of your credit score is your debt to potential credit ratio. Cancelling a card lowers your potential credit.

4. Make more than the minimum payments on bills whenever possible, as often, the minimum payments may not even cover the interest expense. This causes you to lower that debt to credit ratio even further.

5. Don't apply for too many cards. A rumor is that if it looks like you're desperate for credit, the credit ratings lower your score. I'm not sure this is true, but I do know that every time you apply for credit (even just to get that in-store discount), they run a credit check on you. An excessive number of credit checks lowers your credit score.

Come back on Tuesday, and we'll look at the impact of credit scores an areas of your life you may not believe! Have a great holiday weekend.

Be prosperous!
Peggy

Frisbees, Airline Miles, and Debt

When I was in college, walking between classes, there were always tables set up with young people in brightly colored t-shirts tossing around Frisbees or offering free pizza. The only requirement for obtaining the shirt, disc, or dinner was to sign up for the credit card they were offering. They promised low interest rates and the lure of using more money than you had. Many students were lured by this (which is why you have exactly the same memory as I, even if you live in another state).

The number one reason that students have to drop out of college isn't bad grades; it's that they cannot afford to stay any longer. They have applied for too many cards, spent more than they can afford, maxed out student loans, tapped loved ones dry, the minimum wage job they have isn't enough.

As we age, the promotions don't go away; they just change. Now, I get credit card applications with the promise of enough free miles to take a trip if only I will apply.

I have credit cards. My favorite offers free miles, but my husband and I pay it off every month. If you want to rent a car, you have to own a credit card. Using credit responsibly is not a bad decision, but the trick is understanding the difference between good credit decisions and poor decisions.

Taking a loan to purchase a home is very common. If the home is within your budget, you pay a sizable down payment, and every month, you pay off both principle and interest, you are likely okay. (I've seen situations where the person wasn't okay, but usually one of the criteria wasn't really met.) Taking out a student loan to pay for a college education is an investment in yourself and your future. However, buying a bigger house to impress others or using student loans for Friday night parties with friends is a poor use of credit.

Often, if you break down your credit card purchases, you will find they are spent on the discretionary items in your budget. Borrowing money for discretionary spending creates nightmarish situations. If you can't afford to pay for it this month, just wait a month. Don't put it on a card with the idea of paying it off over time. Save the credit for those items that really matter, where you can obtain a long-term accomplishment or gain. The Frisbee just isn't worth it!

Be prosperous!
Peggy

Emergencies in Retirement

First, sorry for the gap yesterday. I got caught up doing other projects--my bad.

Many times, I'm afraid we think of an emergency fund in terms of younger peoople with less job stability, less money in savings, and more monthly bills. However, emergency funds aren't only for the young. Do you need an emergency fund during retirement? Yes, you do. Even if your house is paid off, you pay cash for cars, and you don't carry a credit card balance, you still need an emergency fund during retirement. Two areas loom over your plans--healthcare and a stock market decline.

A reserve fund for healthcare can assist if an unexpected illness has treatments not covered by insurance or if your out-of-pocket is high. If you rely on your investments for monthly income, the worst thing that can happen is the need to sell securities to generate monthly cashflow in the middle of a market turmoil. (Now, by this, I am not saying that buying and holding through anything is correct. A buy and hold strategy actually needs to be implemented as carefully as a trading strategy, but that's a conversation for another day.) Not holding enough cash forces the selling of stocks, bonds, or funds at times you might not want.

How much reserve fund do you need? Well, the healthcare component has a lot to do with the quality of your current insurance (both health and long-term care). Holding at least the deductibles might be wise. The investment emergency fund is much more complicated. I like to hold at least a year of monthly distributions in cash, but I cannot advise you what would work for you in this blog. Everyone's needs are different, and you might need two or three years. I recommend you talk with a CERTIFIED FINANCIAL PLANNER (TM) certificant to help you with this decision.

Retirees are often looking at their life savings in front of them and a significant number of quality years ahead. Planning for financial emergencies at this time can help with your quality of life and your ability to sleep at night.

Be prosperous!
Peggy Doviak

Financial 911

Those of you of a certain age remember the television show, "Emergency." For those of you who don't, the title gives it away. It was a show with two good-looking paramedics who went on emergency runs to help people deal with unexpected events. We also have unexpected financial emergencies, and it's important that we plan for them as best we can.

In today's economy, if you aren't worried about losing your job, you're lucky. With one cold snap, pipes burst and carpet, appliances, and dry wall suffer. In that same cold snap, going to get the mail can be a treacherous adventure. (Sorry I'm focusing on arctic weather; it just seems so appropriate right now!) The one thing these emergencies have in common is a need for money.

Everyone should have a financial emergency fund. Last week, you began calculating your monthly expenses. Your emergency fund should be equal to three (if your world is extremely stable) to eight (Suze Orman's recommendation) months of these expenses. If this amount of money seems overwhelming, eat it like an elephant--one bite at a time. You don't have to save it all right now. Just make saving the emergency fund a monthly goal.

Where do you keep your emergency fund? The answer is really boring--the bank. Your emergency fund is NOT to be invested in the stock market, mutual funds, or annuities. The only acceptable investment would be in a money market fund. Don't even use a certificate of deposit (CD). Why am I being so picky? Your emergency fund must be safe and liquid (or quickly convertible to cash without loss of principal). Stock market investments aren't safe, even if they're liquid. Annuities (variable) are often not safe or liquid, due to investment subaccounts and surrender periods. CDs are safe (insured by the FDIC), but they aren't liquid--you can't immediately convert them to cash. Savings accounts or money market funds are both safe and liquid.

Don't have a financial emergency, even to meet the cute paramedics. Keep your money safe and sound and know that there is space between you and a financial disaster.

Be prosperous!
Peggy Doviak

Getting Help

If you watch television at two o'clock in the morning, you've seen the ads for companies promising to help you get out of debt, reduce your bills, and pacify the IRS. Well, this column is a warning. Most of those companies overstate in promises and understate in performance. Yes, some are legitimate, but it is really a "buyer beware" world. Where do you turn for debt reduction advice you can trust?

One of your best bets is to call Consumer Credit Counseling Services, the not-for-profit organization. They can help you devise a plan for managing your debt. Their website will end in .org, not .com. Websites ending in .org are not-for-profit organizations. Companies using .com are commercial endeavors. CCCS can begin to help you get organized. Not only are the commercial sites expensive and of varying levels of competence, but they can also completely destroy your credit, depending on what tactic they choose.

If you owe the IRS money, talk with a good CPA. The CPA can tell you your payment options.

Finally, never pay off credit cards with home equity lines of credit. Depending on your situation, some of the credit card debt could be relieved in bankruptcy. Don't risk your home to pay off your discretionary spending, even though the interest rate is better.

Now, everyone's situation is different, and it's possible that some of this advice won't work for you. However, for most people these are good initial steps.

Be prosperous!
Peggy

No, really, where DID it go?

I promised you yesterday we would talk about what to do if you are cash flow negative. Remember, that being cash flow negative means you spend more than you earn. It's likely that you are cash flow negative because of your discretionary spending habits (rather than your nondiscretionary expenses). If you are cash flow positive until you reach your discretionary purchases, then look for places you can reduce. Maybe you should discover gas station coffee rather than designer coffee. Or you could eat a few less meals out, or take your lunch to work. Perhaps you should go to the mall or home shopping channel or amazon.com a little less. We are doing cash flow analysis (not budgeting), and it's your decision.

What if your nondiscretionary expenses are too high? This is more complicated. Here, you may need to do a combination of approaches. First, cut some of your discretionary spending. Then, look for adjustable nondiscretionary expenses. Turn off lights when you leave the room, buy regular gasoline not premium, and cut back on the cable premium channels. If you are still in trouble, cut more discretionary expenses and look at replacing cars with less expensive models.

If this is too painful, your other option is to earn more money. Maybe you want to keep your lifestyle more intact, and you would prefer to add an additional income to your household (through a first or second job by a family member). This may be an option for you.

Often, these approaches are sufficient, but sometimes, they are still not enough. If you are really in trouble, who can you trust? We will talk about that tomorrow.

Be prosperous!
Peggy

Where Did It Go?

As you track what you spend, you will notice that it falls into two basic categories--items you need to maintain your normal lifestyle and items you don't really need (but just want). The necessities include your mortgage, car payments on a reasonable vehicle, utilities, taxes, groceries, and the like. These are called nondiscretionary expenses. The wants include trips to retail stores, eating out, and a million text messages a month. These are discretionary expenses. On top of this, if you are "cash flow positive," you have extra money left at the end of the month. Later, we will be talking about saving for your retirement. You may already have a plan for this. However, any additional money you want to save for retirement will need to come from your positive cash flow or discretionary spending. That's why it's so important to know your expenses. What if you're cash flow negative? Don't panic. We'll talk about that tomorrow.

Be prosperous!
Peggy

Try to Remember!

Yesterday, I gave you a task to write down everything you spend for a month. Today is your second day of that task, and I'd like to offer some suggestions on how to keep track of what you do.
1) If you have a "smart" phone, make a note to yourself.
2) After you finish shopping, call yourself and leave what you spent as a voice message.
3) Buy a little notebook, and carry it in your purse or pocket. That way, it's always with you.
Most people have trouble with this exercise when they are busy and make purchases early in the day. By dinner, that stop at Starbucks is a distant memory!

Be prosperous!
Peggy

Personal Cash Flow (We don't like budgets)

Yesterday, I told you that you would have an easy task today, and it's easy, but it will take you a little time to complete it!

I want you to write down every dollar you spend and what you spent it on for one month. I had a client return one time after completing this task, and $2,000 was labeled miscellaneous! Now, I don’t mind if just a little bit of money isn’t categorized, but $2,000 in misc. is a cop out. You need to be honest about how you spend your money. Remember that these are your cash flow decisions, so don’t worry about making me (or somebody else) mad. If you don’t do this honestly, it won’t work.

If you use an ATM card, the withdrawal isn’t the transaction, it’s what how you spent the money. So “ATM” isn’t a category either! If you have a weakness for $5 lattes, write it down. If you like electronics, write it down.

I don’t want you to judge yourself while you do this. There are no wrong answers, just an honest look at where your paycheck’s going. I told you it was easy. Tomorrow, we’ll figure out why this is so important…..

Be prosperous!
Peggy

Budget--a four letter word

Okay, I know that "budget" is a six-letter word, but you know what I mean! Budgeting is an awful process, and yet most of us (me too) need to understand how we spend our money. Since we all hate the word, I propose a new term: Personal Cash Flow.

"Personal Cash Flow" sounds like a corporate process, not a way to keep me from buying those cute Valentine napkins at the discount store that I don't really need! And I think the term is more descriptive.

Your cash flow decisions are personal. At the end of the day, you will spend whatever you want to spend. I might give you some ideas. Your loved ones might have ideas, but it's your choice.

I think when we realize that we actually get to control our money decisions (rather than feeling "acted on" by our money), we begin to change our relationship with money and become more successful. A new task tomorrow (it's easy)..........

Be prosperous!
Peggy

Merging Cash Flows and Dreams

After too many hours of football, today it's back to work! My friends (who don't own their own business) say "Isn't it nice to take off whenever you want?" I tell them yes, I'm free to work any sixty hours a week I want! So today, I'm back at it. And probably tomorrow, the Christmas gets put back in the closets and attic.

Yesterday, I suggested that you list some of your goals and dreams, from short-term goals to long-term. Why is it important to write things down? I believe that writing things down makes them more real to us. It's easier to change our minds when we don't have written proof otherwise! Some of your goals may be very achievable and some of them may be difficult or seemingly impossible. That's okay. You might be surprised what you can do.

Now, without worrying whether or not you can afford it, put a cost or price beside each of them. Don't underestimate it. Just write it down. If you aren't sure what it costs, then look it up before you continue. Remember the old proverb that if you don't know where you're going, you won't know when you get there!
Be prosperous!
Peggy

Happy New Year!

Welcome to 2010, the second decade of the new millenium! My name is Peggy Doviak, and I'm a fee-only CERTIFIED FINANCIAL PLANNER(tm) practitioner and a portfolio manager. Before I entered the finance field, I was a freshman composition instructor and then a corporate trainer. I changed careers when I saw some close friends suffer huge financial losses in their portfolios because they didn't understand investing, and they trusted that their financial professionals would take care of them. Now, many financial advisors are wonderful, but I believe it is still important for every single American to understand their money.

That's the goal of this blog. We are going to talk about all different kinds of financial issues, everything from budgeting to estate planning to knowing what questions to ask an advisor. Did you know that the number one New Year's resolution is getting control of money issues? If you break this goal into little pieces, it is much easier to achieve.

Most days I will give you a task. Your task for today is to write down where you would like to be financially in one month, one year, five years, and twenty years. If you would like to comment on these goals and dreams in the blog, feel free to do so!

Disclaimer: I work with many financial literacy organizations and teach for the College for Financial Planning. Please kinow that everything I say this year is only my opinion and doesn't reflect the views of any organization. Also, information I provide might not work for your risk tolerance or individual needs. Investing is risky, and you can lose money.