Great Online Retirement Calculator!

Let me ask you one question - how much money do you have saved up for retirement? Do you have at least one CD in your name, one savings account (for emergencies) that earns a minimum of 4% (it may be weak, but it keeps up with inflation), and have you put anything into that unique thing called a Roth IRA? "NO?" "Hello?!!!!" I will keep this simple - and it is "simple" - truly it is:

If you are over 25, you should have already begun these 3 things. Why? Because the simple effect of compound interest will work in your favor. A 25 year old who becomes savvy about what they need to do with their $30,000 income will retire far wealthier than someone who is 32 and makes $50,000; that 32 year old can try as they might, but they will struggle to "catch up" with the 25 year old.

Many times my friends and I have each said, "I want to retire young enough so I can still enjoy life." I would guess each of us, including you, would have a different take on how much will be enough money when we are "old". I used to think that once I got my house paid off, that my state retirement plan might be enough. Oops, I forgot about that thing called "inflation"....and I am ASSUMING my health will still good. But what happens if I can't take care of myself and I need to enter one of those $5000 a month assisted living homes? Egads - nope, one retirement plan is NOT enough for most of us if this happens. I'm not saying being poor is a good thing at all mind you, but if you did "O.K" and had a decent job most of your life, I doubt any government or charitable agency is going to help pay to put you up during retirement - I think this group should be called "the once hard working, but now poor group".

I have viewed more websites about how to prepare for retirement than I care to remember. Each one was more confusing than the previous; I could hardly understand what information they wanted me to enter in those dang boxes - until today. I found an 'EASY to understand' website that doesn't take a degree in finance to use. I discovered it when I read an article on Ben Stein - he is that guy with the glasses that many of us know as a comedian/actor. Well, I never knew that this "funny guy with the weird voice" has an impressive education at 2 Ivy league schools, a law degree, an amazing career path that spans both government and private agencies, among other things. I suppose I prejudged him - you know...the weird voice and all made me think he was a just another funny, political satirist type guy. Nope, this guy is incredibly smart, and he is into teaching people about retirement. He sits on a board of this agency that distributes free information. Click on and take a tour - print off some of the materials. Use the retirement calculator and see how much money you will have coming in at age 58, 64, 68, and so on. It took me two tries to figure it out, and here are my tips to you. You HAVE to put in two different savings plans - if you don't have one, just put in something measly like "I have one dollar now and I will put in the same beginning in one year"....you will see what I mean by this. Also, the website forces you to say you have an IRA - use the buck trick again. It may also force you to put in a pension plan amount - again, I don't have this, so I did the buck trick. It will highlight anything it still needs in red...after you fix it an amazing color bar graph will pop up for you. Pretty cool. I discovered at age 66 that my income will drop dramatically before my SS steps in. Lucky I am young enough to fix this problem, but if I had waited I would have had several very lean years, and little travel money to enjoy.

Are you ready to get serious..... or are you still not convinced that today is THE day that you need to get going? I say it's about baby steps; 20 minutes today will get you going.

please check the website out and let me know if you like it, or don't. I'll be looking for your comment!

http://www.retireonyourterms.org/

P.S. You also might want to check out the AARP magazine website. It's pretty useful even if you are younger!
http://www.aarpmagazine.org/ OR http://www.aarp.org

Tucson Money Classes begin Jan. 2007:

Various organizations, in cooperation with the Tucson Public Libraries, will be teaching free financial literacy classes from 1/17/07 through 2/28/07. You will find a tremendously wide range of one hour classes spread throughout the city, so log on now before it's too late. For a schedule, click on http://www.tppl.org.

Tips on Repairing Your Credit:

Now that the holidays are over you, like many people, may find yourself struggling to pay off debt or trying to keep up with a car payment or rent. By summer you may want to apply for a loan or credit card but will be turned down because banks consider you too high a risk. Despite that, there are other banks out there that will take advantage of you. These lenders will lend you money, but do so by jacking up the lending rate as much as 22%! They do this knowing you are desperate for financial relief, and they may rightly assume you don't understand the game of percentages and lending rates. They fully intend to snag and lock you in at these high rates. To your own financial demise you will end up paying off their high percentage "loan"- eventually. What do they do with all the money they make? They take it and re-invest it, and make even more money off you. Lenders prey on those who can least afford a high interest rate, while those who don't need credit can routinely purchase it for as little as 5.9%.

Here are my 4 simple, but mindful, suggestions. The fourth tip comes via Oprah Winfrey.

1. Be organized and smart with your money.
2. Don't let people take your hard earned money out of your hands.
3. When trying to crawl out of debt, look back! Don't forget what got you in debt - do something smarter with your money. For starters, try keeping more of it!
4. Ask for a lower rate on an existing credit card. You can't cancel a card while still paying it off, but you can cut it up and not use it! Explain to the bank rep that there are too many competing interest rates out there; tell them nicely if you cannot get a lower interest rate, your spouse (or parent) is forcing you to cut up your card immediately, and while you really hate the thought of this, it's out of your hands and up to them (banks want to keep you). A rep will transfer you to someone who will try to convince you to stay on with them. By all means give them the chance! Staying with a lender/bank for a long time is GOOD for your credit, and paying it off will help you mend it.

"For me, doubt means don't. Don't move. Don't answer. Don't rush forward." - Oprah Winfrey, June 2003. Oprah is a wise woman and smart with her money. I think this statement from her book called, "What I Know for Sure" is a winner. If you ever doubt yourself, or need a pick-me-up, I recommend you read this book; although it is short, it is full of heartfelt and sound advice and will only take about one hour to read.

I won't re-write all the tips on mending bad credit, but if you want some advice on what do to work on just click on the link below.
http://www.practicalmoneyskills.com/English/at_home/columns/repair_110606.php

Save Money - Eat Right!

While I was doing my daily scanning of worthy news articles, I came across this site: www.mypyramid.gov It has some things to get you moving in the right direction towards creating a better you, beginning with what you eat!

I got to thinking (again) that those of my friends who take care of their health and eat right often appear to manage their finances more wisely. Come to think of it, that's really hogwash, but it sounded like a great intro! *laugh* Honestly though, people who watch what they eat, who eat out less often, who walk and smile more, generally seem to have "it" together, if you know what I mean. These people traditionally procrastinate less and are more organized - heck, they have more energy so why wouldn't this make perfect sense!!!

Are you one of those people who eats out more than is healthy? Do you grab a piece of fruit, or a fresh veggie, as often as you do a meal replacement bar, or a bag of chips? If you eat too much meat for breakfast and/or lunch, do you cut back at dinner and make a wiser choice? This website has some good pointers on it, beginning with a daily worksheet - it helps you plan ahead (which saves money as well).

How would you like to have more energy and feel better? How would you like to sleep better, smile more, and cringe less? How would you like to save money, while making your whole life better? Stop procrastinating - knowledge is power! Just like your finances, eating right takes a little bit of extra time, and a little bit more elbow grease. But once you get the tricks down, it becomes second nature. Log on for your life, your happiness, and your pocket book. O.K., I'm stepping off my podium now. "Whew!"

The Old Adage is New: Payment is Compliance

An old adage in probation is, "Payment is Compliance." Walk around the halls at any adult probation office in the nation and you will see at least one sign above a desk reminding us all of this steadfast rule. However, the old rule is "kind of" new again, and people need to sit up and take notice. As minimum wages go up, so do court costs. People can earn themselves an extra payment plan that the courts call "restitution and payments". Those who commit a crime and refuse the (possible) option of probation...who don't want to do community service, or who don't care that much about their families may serve out their time in a jail somewhere. This cold hard fact is certainly not very appealing to many of us. But staying out of jail costs someone money, and that someone is the defendant.

For many people, keeping up with paying their fines is one of the most difficult parts of being on probation. So, in order to help, Pima County Adult Probation developed an in-depth financial literacy program to help people get into the swing of banking and saving, and that is where this blog comes into action. "Show Me The Money!" is a once a week, five week program designed to motivate people to cut corners and save more. By sharing information and learning how to get out from underneath debt, people can begin to get ahead. In probation circles this means complying with the courts and taking charge of financial obligations. I decided I should address this underlying challenge of payment compliance right here - upfront, but not to personal.

The other day I was talking with a supervisor who explained some things to me about payment compliance. He explained that many inmates in jail would gladly pay $2 a day to be "out"... working. They could then go home at nights and enjoy time with their families. That is what probation is all about - giving people an opportunity to have some kind of life while they make work to better themselves, take classes/counseling, and make restitution with the courts and/or a victim. When an officer is encouraging a client to make a payment he is attempting to help someone stay compliant and out of jail. The goal is to keep the case moving ahead in a forward direction so that termination occurs on schedule, or sooner if at all possible. A probation officer's main goal is to supervise and assist people in getting ahead, not to make their life miserable as some people may mis-think. Keeping up with payments and such is only one part of an officer's challenging job, and it is a necessary one.

Clients need to appreciate that at any time supervisors may suggest revocation to an officer, or vice versa. At the judge's decision, a case can be revoked, whereby the defendant is re-arrested and returns to jail. When someone tells me it is more important to keep food on the table for their child than to pay restitution that month, I have to remind them that if they are in jail for failure to pay, someone else will be taking care of their child. The cold hard fact is that probation comes first and people have to find the means to "Get the job done regardless of their other responsibilities." Sometimes I will ask someone to rank the importance of what it is worth to them to get off probation. If they say a 10, but they are behind in their payments, then what they are saying and what they are doing are not matching up. Keeping up with payments needs to be a high priority.

I find both anger and resentment holds back quite a few of my workshop participants. They are angry for being put on probation, and they waste valuable time talking/arguing about the circumstances that got them there. I suspect the person they are really angry at is themselves - for trusting another person, for being in the wrong place, for making a poor choice, or for simply getting caught. Probation is about time, education, and the development of a good tool box. It's also about being financially responsible and visiting the county clerk every week, or month, to make that payment. I encourage people to let go of the anger and just deal with the consequences because resentment only makes for a bad day, and goodness knows things are tough out there as it is. Be thankful of the opportunity you have been given to still be a responsible citizen.

When it comes to paying, something is better than nothing - remember that. The Nike ad says it best, "Just do it!" If you have not paid in months, then for one week avoid fast food, a soda, or Starbuck's coffee...and put the $5 in the clerk's payment box. Next time, make a game of it - can you find a way to put in $10 next week? Most of my students, regardless of their income, can do this quite easily I have found. College students know how to stretch their money very well, hence the term "starving college student" and many do it better than anyone. They eat so much spaghetti, Top Ramen, and baked potatoes it makes me shudder. In 1996, I watched one break off the ends of the broccoli at Safeway one time, and I asked her about it. She told me she wasn't going to pay "that much for all the tough ends." College students do what they can to afford staying in school, and they do so knowing in the end that by pinching money they are buying themselves an education, and that someday soon they will be able to afford steak. We should all be so creative.

Be glad this money management workshop is free. Be happy you still get to "go home" everyday. Be glad someone is the courts thought you were good enough for probation (not everyone is). Begin somewhere, and begin today if you already have not, and ask for help along the way. It doesn't matter how well equipped we are, or how fancy our educations are (or, are not). Basically, it doesn't matter who we are...we all need guidance. It's why some people hire accountants, though it's only the smart people who know what their accountants are doing. Know what you are doing with your money. Know where it is going, understand it's control over you, and most of all appreciate it's power and what it can do for you tomorrow instead of just living for today.

All my best to your future success, Shanon

Online Thefts of Brokerage Retirement Accounts

It turns out, not even your retirement account at a big brokerage is safe! Go to this link for more details on potential web thievery.

http://redtape.msnbc.com/2007/01/one_moment_dave.html#posts

It's 2007; Time for Some Goal Setting!

Every time this year we think about what we have accomplished over the last year, and then we think about the new year, looming ahead of us. We ask ourselves, "Do I want to repeat 2006 all over again, or do I want to do something different, or perhaps do something more with my life, my money, and so on?"

Often we get into a rut; we do the same things over and over again. Well, ruts can be destructive to the spirit. Just like our bodies, our spirits need some kind of "food and water" to grow and survive. I think about "changing things up" nearly every day when I wake up, and I try to look at it as a good thing (though I admit is can be scary at times). It may be something as simple as going out to see a movie after work (when I'd rather be home after working 10 hours), or waking up and taking a bath (with candles) before I head off to work. lately though, my thoughts turn to finding a better interest-earning bank, or about moving versus staying in my rather cramped home. I think about "things" a lot because that is my nature. I also recall a simple greeting card that a friend gave me many years back; it was a drawing of a brick wall. That's it - JUST a red brick wall, with gray mortar. Inside it read, "The next time you feel like talking to a man, beat your head against this until the feeling goes away." I laughed, she laughed...everyone laughed. For me however, the card has more meaning than what it implies. It reminds me that, "If I continue to do what I've always done, I'll keep on getting what I've always got." The analogy to the card is that if a man isn't listening to you, then you need a different approach to help him want to listen. Goal setting is something like this for me; if one approach doesn't work, I have to try another way until I succeed. I understood this principle when I accepted teaching this workshop. To be successful at managing money meant I HAD to learn to "like" managing it...or at least find some sort of amusement, or challenge. I knew I had to make it fun for me - somehow, someway.

Who sets goals? My answer is, "nearly every successful person you admire". Many write them down, though I work with someone who claims she hates the word "goal", much like I dislike the term "budgeting". You see, procrastinators NEED to write a goal down, and look at it often so they will act on it. The movers and the shakers, who arise at 5AM, often prefer to keep their goals in their heads. Well, this may work for them, but it isn't for everyone. For many of us, setting goals is a PROCESS, and this process has definite steps, the first of which is to write things down! Buy a journal or notebook, or use your computer if you have one. Just don't forget to print the pages off so you can see them, handle them, write and take notes on them. Tucking them away does us no good whatsoever. It's like the cattlemen I used to work with who religiously weighed and recorded calf weights, but who never did anything with the data - their time and efforts were nearly worthless. So, if you don't plan on working on your goals, you are better off going and cleaning your kitchen counter right now. Reading my blog won't help you, unless you truly want to learn to make better use of your time and money.

1: First of all, you need to know that a goal is different than a dream or a vision. The Dream = No financial worries. The Vision = I'm going to become a millionaire. The Goal = I'm going to pay off my debt, and here are the steps that are going to take me there. You need to stop dreaming that someone is going to come along and give you money so you can do what you dream of. If you are on probation and owe money to the courts or a victim, you need to stop getting upset about it, and organize yourself - let things take their course. You can't control everything - you can do only what you can do. You need to do something- not make excuses. Take a posititve step and own up to what you owe, and step up to everything in front of you.

2: You need a PLAN and the plan needs to be yours - not your mother's, or your wife's plan, but yours! What will make you happy and help you to look toward your future? How are you going to get there - baby step your plan of attack. You must also recognize that many things in your life need some goal setting. You should plan to improve both your spirit and your finances. If you are stuck at home, for whatever reason, you need an outlet. Maybe it's learning to paint using watercolors, or learning to read better. Maybe you can be a pen pal to a person in another country and learn about their life in third world country. Explore the library as an adult - they've changed a lot since we were children! Go to the dog park - even if you don't have a dog. Volunteer at the hospital, holding children whose parents are kept away while they work out of town. Find a reason to improve your own life, whatever that means FOR you.

3: Goals must be specific in order to work for you. I can't just say I want to buy a house. I need to understand what kind of house, what area it should be in, how large, what view it should have, and how much it should cost. I can't simply say "I want lose weight" and expect to lose it. How much, by when, how will I do it, what do I need in order to reach my goal...now the goal is becoming specific.

4: Goals need timelines: If I state that I want to buy a house before March 2007, I should plan on it happening by then. With that said, timelines require baby stepping and they too must be reasonable. When you set timelines, you are setting a goal in an of itself. For example: By January 15, 2007 I will call the mortgage lender and begin the pre-approval process. By January 20, 2007 I will call my agent and ask him to begin locating houses that fit my needs and wants. If I had simply stated that my goal was to find my dream house by the end of next week, then the chance I will find that house is pretty poor. My goal is doomed to fail. Be serious about goal setting and write down some good baby steps and make sure each step has a good timeline. To the procrastinators: Don't give yourself too much time, or you will lose steam. Set a moderate pace - not too slow and not too fast. This leads to success!

5: Now for the doozie---you should state your goal in past tense, so it sounds like you have already accomplished it. Example: "Today is March 15th: I have lost 10 pounds by thinking carefully about what I eat and by walking with Cindy twice a week. I love the feeling of being in control and I am really happy about achieving my goal." Some people call this a "mantra". Sales people are well known for getting up each day and saying their mantras outloud. Think of it this way: People who fail often are telling themselves, through their words and actions, that they are not good enough. They wake up, look in the mirror, and say, "Gosh, I look AWFUL today!" A grunt usually follows that sounds something like, "UGH." Well, do you really think the day gets much better when we do this to ourselves? Hello? Are you listening? We need positive re-enforcement, not negative. Try this simple test: Next time you feel sad, go to the grocery store - walk around pushing a cart and smile...at everyone you see. Smile at the old man who has missing teeth, smile at the lady with the screaming child and tell her she looks nice today, smile at the produce man who has been working 9 hours and wants to go home - tell him he does a great job at keeping things in order. When you go home, ask yourself if you don't feel better. I will bet you do, because when you smile it changes the brain and you actually do perk up! Put a goal in past tense and repeat is outloud.

6: Review your goals: Put your goals on paper, where you can see them occasionally, and then review them once in a while. If you are not moving ahead towards your goal then you aren't doing something right. Plan to make adjustments along the way and you will succeed.

When goal setting some people like to remember the acronym, SMART. Goals must be: Specific, measurable, achievable, reasonable, and timely.

I believe many of spend more time thinking about what shampoo we want to purchase than sitting down and thinking about what we really want in life. We dream, but we don't spend much time planning. Maybe we should all devote two hours a month to planning out our dreams so we can finally feel what it's like to live fully. Live your dream! Create and give a name your vision- close your eyes and feel what it will be like to reach your goal. Then write down what you need to do, set a timeline, and create the baby steps. When you falter, ask for help from someone you value. Successful people love to help other people succeed. Good luck!