Courtesy of Preferred Financial Services

Is your entire retirement plan relying on your 401k to fund it? If so, you might be in for a shock when it comes time to retire. While a fully funded ($16,500/year) 401k with a company match is probably enough to cover your retirement needs, the fact of the matter is that only a tiny minority of workers are able to do this. Even if you are in this tiny minority, placing all your eggs in one basket is generally not considered a wise move by retirement planners. So what are your options besides a 401k?

If you are currently contributing to a 401k, continue to do so and work towards maxing out this contribution as you near your retirement date. Always contribute enough to at least get the full matching contribution from your employer if it is offered. Beyond this simple step, there are many other things that you should take into account when planning your retirement funding. Post tax money invested in a Roth IRA is a great tool to add some diversity to your portfolio by allowing you to withdraw your savings tax free after the age of 59 ½. Social security can also be considered another option for most Americans who are already near retirement age (less than 10 years). For us younger generations, social security should not be used when planning your retirement, but if it is still around any amount you get from that will just be a bonus. Beyond this, having a strong, diversified portfolio of investments is critical to accumulate the amount of wealth you will need in retirement. Before you make any decisions in regards to funding your retirement, figure out when you want to retire and how much you will need. These two critical numbers will allow you to devise a funding plan for all your retirement dreams.

Readers, how are you planning for retirement?  Click here to visit original article.

Courtesy of Preferred Financial Solutions

Have you made your New Years resolutions yet? Have you had success in the past when making a New Years resolution? Well, if you have been following my blog at all over the past year, I hope you made some New Years resolutions that involve your finances. If not, check out the list below and eliminate some of your poor financial habits once and for all.

1. Ignoring your cash flow…

2. Making impulse purchases…

3. Using credit cards for purchases you can’t afford…

4. Forgetting an emergency fund…

5. Procrastinating saving for retirement…

6. Turning down employer contributions to your 401(k)…

Click HERE to read the entire article.

Courtesy of Superior Debt Relief Services

For a moment, pretend that you’ve just sustained a compound fracture to your leg; the bone is visible, and you’re in shock. In a flurry of pain and confusion you are rushed to the emergency room, where the doctor promptly places at least 100 Band-Aids on your leg. Despite your pain, you do know something is seriously wrong with this scenario. Nothing has been done to treat the root of the problem – your broken leg.

Though no right-minded Doctor would treat a compound fracture with band-aids, many consumers seek to employ this same logic to their debt problems. Instead of treating the real problem, they place ‘band-aids’ over their issues – short-term fixes that don’t offer true relief.

To find a real solution to debt woes, consumers need to look past treating the symptoms and deal with the root of the problem. This often involves dealing with a person’s mindset, or beliefs, perspectives, and feelings toward money. Once a healthier mindset is instilled, then the consumer is in a place to start practicing better financial habits. Here’s a breakdown of what it might look like to kick the habit of harmful thoughts about finances:

Please click HERE to read the entire article!

Courtesy of Perferred Financial Services

With the use of credit cards becoming less appealing by the day, many business owners are turning to cash as a way to attract new customers. Since any credit card transaction costs the store owner a certain percentage of the sale price, businesses have an incentive to increase the number of cash only transactions that take place each day. As such, many companies in a variety of industries are offering discounts when consumers put away their credit cards and pay for the good or service in cash.

Click HERE to check out the full article and a list of the most common places to get a discount for paying with cash…

Courtesy of Preferred Financial Services

As the year comes to an end, it is important that you get your financial house in order so you can begin 2011 with sole focus on strengthening your financial situation. As such, we at Preferred Financial Services want to present the following list of steps you should take a look at before 2010 comes to an end. Some are just minor steps to take while others could prove to be a huge factor in your long term financial success. These lessons are particularly important as we all try to recover in 2011 from what has been a brutal 2 year stretch. 

1. Run your credit report. This is a simple step that doesn’t take more than 20 minutes to do with an internet connection. By running your report once a year from the free federal website www.annualcreditreport.com, consumers can not only take a look at all their current open accounts but also see if there is any fraud occurring. If so, make sure you stop it ASAP and contact your creditors to prevent any further theft.
2. Pay off holiday debts before New Year’s Eve. Any debt that you bring into the New Year will continue to become more expensive as interest rates continue to go up for consumers with less than perfect credit scores. By paying off your bills before the New Year, they will remain off your credit report which will allow you to start the 2011 with the best credit score possible.
3. Don’t close recently opened store cards. This is one of the unknown rules of the credit score. By closing newly opened accounts in the near future, you are lowering the amount of available credit you have which lowers your credit score in the short term. If you know that you will be needing some form of a loan anytime in the next 6 months, keep the cards open and just pay off the balances as quickly as possible.
4. Protect your Identity. The first few month of a New Year are the most common time for your identity to be stolen. Think about it, all your tax bills, W2’s, yearly statements from your banks are mailed to your house and almost all of them include your name, address and Social security number. This makes them ripe for theft and in the right hands can lead to extremely expensive fraud. Make sure you dispose of all forms correctly that are not needed to prevent any unnecessary thefts.

 Readers, are you ready for the New Year? Do you have any resolutions for your financial future? What steps are you taking to make sure 2011 is a better year for you and your family than 2010 was?

Andover, Massachusetts December 6th, 2010 –  Winter has arrived and with it the seasonal bump in your heating bill. Unless you live in the few areas of the USA where seasonal changes don’t occur, you should be expecting quite a large increase in your monthly energy bill. In the Northeast and upper Midwest this jump can be over 50%! While you can’t eliminate the increase entirely, there are many things that you can do as a homeowner or renter to lower your monthly heating bill and thus allow you to use those savings to further pay down your existing household debt. The following is a list of items, some expensive and some free that I suggest all of you consider the next time you look at your heating bill.

To read more, please click here.

Andover, Massachusetts October 11th, 2010 – Every budget, either those meant for organizations/companies or personal budgets for a family includes two parts, income and expenses. The economic data over the past two years dealing with everything from bankruptcies to foreclosures to unemployment indicates that many families not only didn’t have a budget, but regularly spent more than they earned each and every month. The end result is the situation we are in now. Pay attention to the following list as it lists a few simple, not too painful changes you can make on a personal level that can dramatically improve not only your short term financial situation but could also potentially set you up for a worry free financial future.

To read the full article, please click here.

With the biggest shopping day of the year rapidly approaching, American consumers should be cautious of the potential dangers of overspending during this holiday season.

Financial guru Kristine McKinley, of Ms FinanancialSavy.com , suggests that shoppers follow these ten easy tips to minimize your chances and racking up significant debt during the holiday season.

1. Make a list to decide how much you can afford to spend this year and who you are shopping for.  

2. Pay cash for your holiday gifts. 

3. Do your shopping online this year. 

4. Have a Secret Santa gift exchange, where you put names in a hat and each person draws one name to purchase for. 

5. Another alternative for those with large families is to do a group gift. 

6. Start early!  Shopping early allows you to comparison shop and to catch pre-holiday sales, which could mean huge savings. 

7. Make your holiday gifts.  If you have creative talents, such as cooking, crafts, etc., making your own gifts can be very special. 

8. Purchase wrapping paper, holiday cards and other decorations for next year right after the holidays.  9. If you’ll be traveling this holiday season, book your travel plans early. 

10. Start a Christmas fund in January for next year’s shopping and contribute a little each month.  

For more holiday shopping tips visit MsFinancialSavy.com. Remember the holidays are about spending time with family and loved ones, not overspending on materialistic things.