W-2's in the mail

You should receive your Form W-2 by January 31. If you do not receive it, or have questions about the information on your W-2, contact your employer or the IRS.

January is the month we all begin with our earnest New Year's Resolutions.  I found a list on line of Financial Resolutions which have helped me add to my list.  The 15 Simple financial resolutions listed on practical money's site are worth a read.   http://www.practicalmoneyskills.com/personalfinance/tipsandtrends/15resolutions.php
I also think the list should include revisiting our Record of Important Papers:  Updating our home inventory list;  Making sure our insurance coverage is still adequate;  Updating contact information in our address books and  electronic address files(backing them up).  Changing batteries in our home alarms.    In my financial literacy classes I remind my participants that those of us who live away from our family,  need to create a list within our address books of who they should notify should they are having to wrap up our affairs upon our death.  None of us are planning to die, but unfortunatley might.    This advise came close to home for me this past year when my brother died, I had no idea of who his friends and coworkers were and I felt badly about that.   His life had included working and residing in four different states.   Mine has been in yet another.   We saw each other at family events and talked regularly on the phone, yet I didn't know who all the people were that made up his life.     I certainly could have been more honoring of him, had I had a list of those that mattered to him ( outside of his  immediate family).  A final  suggestion---take a finacial literacy class  and learn how to use a financial literacy tool.

Baby Boomers: Caring for three generations?

Baby Boomers, are the next generation set to retire. Saving for retirement continues to be the top priority for this group also known as the Sandwich Generation.  Some of Baby Boomers’ stress could be because saving for their own retirement isn’t their only priority. According to the sixth annual Scottrade American Investor Survey, nearly one in four Baby Boomers (born 1945-1966) reported they are financially supporting an adult child and their sandwich is growing. Grandchildren are being added to their financial demands; 9 percent of Baby Boomers surveyed reported they hold a college or education savings account, an increase from 4 percent in 2010. And, while most (72 percent) continue to name retirement as their primary reason for investing, they also reported saving:

• For their own or a family member’s education expenses (11 percent)

• To build an emergency fund (36 percent)

• To reduce their debt (21 percent)

See full article from DailyFinance http://www.dailyfinance.com/2011/12/08/the-triple-threat-to-baby-boomers-retirement-plans/

A recent Wells Fargo survey finds that Americans are expecting to work longer to ensure they have enough money for retirement, 80 may be the new 65 for many American retirees. Of respondents age 40 to 59, 54% indicate they need to work in their retirement years, while only 34% of the 25 to 39 age group indicates they will be working in retirment.





At one of my last Managing Money in Tough Times workshops the financial reality facing retired Wyomingites became very apparant. We haven't been unaffected by the financial turbulance experienced in our country in recent years. It is a very real and difficult financial challenge for seniors who find themselves facing the reality of having outlived their retirement savings.





A tip from the class.... if at all possible, practice living on your retirement income before making the big decision to leave the workforce.

Retirees aren't planning far down the road, study finds

Many retirees overlook important issues such as health care costs in their planning, according to a study by the Society of Actuaries. "The study highlights the importance of retirees educating themselves on how to successfully plan for their retirement years while understanding the value of partnering with a trusted financial advisor for guidance," according to the society. Retirees with financial advisers increased to 61% this year, from 56% in 2008.

Strategies for taking required minimum distributions

Older investors who must take minimum distributions from retirement plans should consider taking them from the smallest of multiple retirement accounts or taking the distribution in-kind if they don't need the cash, certified financial planner Gary Brooks writes. Another tip: Consider taking more than the required minimum in order to shrink a future tax bill, when income tax rates may be higher. Read the full article from The News Tribune (Tacoma, Wash.)

Evaluating buying vs. renting

Renting a home can be a better option than buying, Walter Updegrave writes. Potential buyers should consider that the housing market probably hasn't bottomed out, the job market is unstable and a down payment and other costs could leave buyers without enough cushion, Updegrave writes. In addition, renting offers more flexibility. Read the full article at CNNMoney.com