CDs have been a simple low risk investment for generations. What happens when you add a little spice to your grandma’s CDs? Banks and Wall Street firms are trying to add some zest to what is historically the most boring way to save outside of putting money under your mattress (until a house fire).
Owning your company’s stock in your 401k is a common way to save for your retirement. When you leave your company you will probably just roll your 401k or other workplace plan into an IRA and not think twice about the process.
When you pass away if you could not leave any money to your children, but only one piece of financial advice, what would it be? I was asked this excellent question and had to pause. My mind raced trying to think of all the financial advice I had heard and also given, things you want your kids to avoid and habits you want kids to know sooner than you figured them out.
As humans we are built to recognize patterns. If we roll two dice and they come up with snake eyes three times in a row our natural inclination is to think that on the fourth time they’ll come up again. The odds remain the same to roll two ones on the dice but our minds are drawn to the trend. Overtime these trends start to form biases in our thinking.
“An ounce of prevention is worth a pound of cure.” – Benjamin Franklin
The Wall Street Journal ran a story that discussed how financial institutions are marketing loans directly to parents to help their kids cope with the rising costs of college.
Parents are all too familiar with the rising cost of education. College costs have been surging for decades and the trend has filtered down to the private high school ranks. We have been tracking the costs of Kansas City area private high schools for several years. The average cost to send one child to a private high school in the Kansas City area is increasing on average 4.5% from 2015.
In our 30’s and 40’s we typically have a lot of financial commitments. Mortgage, maybe student loans, trying to save for your child’s college, save for your retirement and the list goes on and on. We all know we should be contributing more to our retirement accounts but all of the expenses above plus a dozen other items are preventing us from contributing more.
We live in a world filled with numbers. It can be tough to figure out the ones that are important and the ones we can forget! Here are TEN numbers you should know about your personal finances.