This time of year it’s cliché to make resolutions for the coming year. Whether it’s to lose weight, stop a bad habit, or begin saving for retirement, many of us set these goals at the beginning of the new year. And then three weeks into the new year, we’ve left that goal astern – having changed nothing at all. The problem is in how we set goals for ourselves. For example, we might make the bold statement that we want to lose weight. Often, that’s all there is to our resolution – but there’s much more to setting a goal than making a statement about it. There has to be a plan, and some specifics around the goal. If the resolution is to lose weight, first of all you need to put some specifics around that goal: I want to lose fifteen pounds in 2014. Now, how are you going […]
December, 2013:
What’s in Store for 2014?
A few weeks ago I was interviewed by a local business journal about our firm’s thoughts as to how the market would react in 2014 and how to best prepare for that reaction. Essentially, the journal was asking us to predict where the market would be in 2014. Most of our clients know the answer I am about to write, which was, “No one can predict the direction of the market with any degree of accuracy.” “If that were the case, (as I told the interviewer) neither she nor I would be having this interview.” In other words, we’d be clinking our glasses on our respective tropical beaches because we’d have gotten filthy rich predicting and timing the moves of the market. Markets are pretty efficient – meaning that the price of any particular stock in any particular sector, industry or country is generally priced based on all available information […]
Share, tweet, print, email, like or pin this post:
Roth 401(k) Conversions Explained
Earlier in 2013, with the passage of ATRA (American Taxpayer Relief Act) there was a provision to loosen the rules for 401(k) plan participants to convert monies in those “regular” 401(k) accounts to the Roth 401(k) component of the account. Prior to this, there were restrictions on the source of the funds that could be converted, among other restrictions. These looser restrictions apply to 401(k), 403(b) and 457 plans, as well as the federal government Thrift Savings Plan (TSP). Recently, the IRS announced that guidance was available to utilize the new conversion options. As long as the 401(k) plan is amended to allow the conversions, all vested sources of funds can be converted, even if the participant is not otherwise eligible to make a distribution from the account. This means that employee salary deferrals, employer matching funds, and non-elective payins to the 401(k) account can be converted to a Roth […]
Share, tweet, print, email, like or pin this post:
Charitable Donations
This time of year many people find it in their hearts to give. They’ll give to friends, family, loved ones and charitable organizations that can help maximize the gift such as a church, charity, or foundation. Last week I had written about the law of reciprocity and giving, and this week I’d like to mention how you can make your giving work in favor when tax season rolls around. As of this writing there are about 11 days left in 2013. Some individuals will be looking to see how much they can give or how much more they can give in order to receive the biggest tax deduction they can for charitable giving. Of course, gifts to friends and family are not deductible, but there are times when gifts or donations are completely deductible and may be to the tax advantage of the person giving or donating the gift. According to […]
Share, tweet, print, email, like or pin this post:
Book Review: How Much Money Do I Need to Retire?
This book, by Todd Tresidder, cuts through much of the extra “stuff” that you find about retirement planning, to help you do some really useful, back-of-a-napkin retirement planning for yourself. Tresidder, who has a practice coaching folks with financial planning based on his concepts, developed his planning methods in real practice for himself. Tresidder “retired” from his regular job at the age of 35 using these tactics, and has been helping other folks to use these methods in planning for retirement ever since. In this book, Todd goes through the conventional methods of planning for retirement savings, which includes gathering some information that is impossible to calculate: How much money will you need every year for the rest of your life? What will be the rate of inflation? When will you die? Your spouse? What rate of growth will your investments experience over your lifetime? What will be the sequence […]
Share, tweet, print, email, like or pin this post:
Saving in The Military
If you or a loved one are in the military and are about to be deployed you may be able to take advantage of a special savings account that is specifically for our Armed Forces members that are deployed in a combat area. The Savings Deposit Program (SDP) is a unique savings account for service members that are deployed in combat zones and allows the service member to allocate some, most, and in some cases all of their combat pay to a savings account. The maximum that can be contributed to the savings account is $10,000 per deployment and that money grows at 10%, yes 10%. Eligible service members include: You are deployed to an area in support of Operation Enduring Freedom/Operation Iraqi Freedom (OEF/OIF), or other contingency operations where you are receiving HFP/IDP. You serve in the combat zone or in direct support of a designated combat zone for […]
Share, tweet, print, email, like or pin this post:
2014 Mileage Rates for Tax Deductions
Recently the IRS published the mileage rates for various classes of deductible miles driven for tax year 2014. This amount is used in place of managing, collecting and tabulating the exact costs involved in operating a vehicle throughout the year. In order to use the standard mileage rates, you just track the miles you drive for each purpose (see below) and then compute the deductible mileage on your tax return when you file it the following year. Keep a log of the miles driven and the purpose of the trip to substantiate the deduction. This can be as simple as a paper calendar with your log notes, or more elaborate (check around, I bet there are apps out there for your iphone or other gadgets to do this). You have a choice to either use the standard rate or the actual expense of operating your vehicle. In either case, parking […]
Share, tweet, print, email, like or pin this post:
The Law of Reciprocity
As your wealth accumulates and continues to grow, there is a law I want you to be mindful of and respect. You don’t have to follow it, but believe me, it will pay you more than any bank, investment, mutual fund, or stock could ever do. I’m talking about the law of reciprocity. Some call it tithing, luck, karma, reaping what you sow, give and take. Whatever you want to call it, it works. And I highly recommend that you do it. Following the law of reciprocity means giving a little of what you make. It could mean giving to your favorite charity, your church, a friend in need, a homeless shelter, or any other cause or helpful service in your community. The point is to give. And it will come back to you in droves. Don’t ask me how it works, it just does. I promise you that. Consider […]
Share, tweet, print, email, like or pin this post:
Book Review: The Other Talk
A Guide to Talking with Your Adult Children About the Rest of Your Life This book, a relatively short read at 176 pp before appendices, is a nice guide for folks facing (or in) retirement and dealing with those end of life issues that we all must face at some point in our lives. As the subtitle implies, this book guides the reader through the process of having the “other talk” with our children. The first talk is about the birds and the bees, and the analogy between that talk and the “other talk” is apt. The subject matter is profoundly difficult and emotional for both parties, but avoiding the talk (either one) can have serious impacts for both parties as well – because avoiding either talk will not keep the “event” from occurring. The author Tim Prosch relies on many personal experiences as well as a great deal of […]
Sterling Raskie, MSFS, CFP®, ChFC®
The latest in our Owner’s Manual series, A 401(k) Owner’s Manual, was published in January 2020 and is available on 
A Medicare Owner’s Manual, is updated with 2020 facts and figures. This manual is available on 
Social Security for the Suddenly Single can be found on Amazon at 
Sterling’s first book, Lose Weight Save Money, can be 
An IRA Owner’s Manual, 2nd Edition is available for purchase on Amazon. Click the link to choose the 
Jim’s book – A Social Security Owner’s Manual, is now available on Amazon. Click this link for the 
And if you’ve come here to learn about queuing waterfowl, I apologize for the confusion. You may want to discuss your question with Lester, my loyal watchduck and self-proclaimed “advisor’s advisor”.