Organized to save money, energy, and time
Photograph Credit: Microsoft Images
With many of our armed forces fighting oversees for the freedoms we still have in America, this Veterans Day is hard.
One of my husband’s co-workers is currently deployed, and his family is not complete without him.
Most of our veterans have served abroad during their military career which is a sacrifice for them and their families.
To all those who are actively serving and to those retired armed forces soldiers and their families,
In working through our important documents, I am taking a bit more time on the retirement category to explain some very confusing aspects of investing.
Though I am not a financial adviser, I have been through this process. I know how confusing it is, and how much easier it is when you know your options.
Though I cannot choose for you, I can point you in the right direction and offer encouraging words along the way. 🙂
As we continue organizing our important documents, we are working on the second category of retirement plan documents in File Box 3. After the overview, we looked at the different types of retirement accounts. Today, we will consider how to allocate your money in those accounts.
When we signed up for our employer-sponsored plan, we had to choose how to diversify or invest our contributions. Honestly, this was the hardest part for me. I researched and found a breakdown I felt comfortable doing. Then I consulted my uncle to confirm my choices before forging ahead. This table from Personal Finance for Dummies by Eric Tyson provided the guidance I needed:
|
25-Year-Old, Aggressive Risk |
45-Year-Old, Moderate Risk |
60-Year-Old, Moderate Risk |
|
|
Bond Fund |
0% |
35% |
50% |
|
Balanced Fund (50% stock/50% bond) |
10% |
0% |
0% |
|
Blue Chip/Larger Company Stock Fund(s) |
30-40% |
20-25% |
25%
|
|
Aggressive/Smaller Company Stock Fund(s) |
25% |
20% |
10% |
|
International Stock Fund(s) |
25-35% |
20-25% |
15% |
At the time we setup our accounts, we chose the 25-year-old allotment recommendations. In the next few years, we will adjust to the 45-year-old recommendations.
We looked among the available funds offered through our employer-sponsored plan and found a reliable balanced fund, larger company stock fund, smaller company stock fund, and international stock fund. By going a quick search on Swag Bucks, we found options we liked. The chart guided us to our choices.
Unlike the employer-sponsored plan, the individual retirement accounts can be setup at any financial institution. Though having so many options, making this choice was actually less complicated for me.
I knew from all the reading I had done that we wanted to invest in mutual funds. A mutual fund is run by a fund manager. Many investors pool their money together to purchase the securities and each owns a part of the whole. So, with a small investment, you can own shares of a fund that your one investment would never have been able to purchase alone.
Knowing we wanted mutual funds, we just looked for no-load options. This means that there is no commission charged. We chose Vanguard which is the largest no-load fund company and consistently has the lowest operating expenses in the business. By going with Vanguard, we keep more of our investment rather than paying high fees and expenses.
The recommendations from Eric Tyson we used to decide were the conservative portfolio and aggressive portfolio:
For example: Vanguard Total Bond Market Index – 25%, Vanguard Star – 55%, and Vanguard International Growth or Vanguard Total International Stock Index – 20%
For example: Vanguard Star – 50%, Vanguard Total Stock Market Index – 10 to 20%, and Vanguard International Growth – 30 to 40% OR Vanguard LifeStrategy Growth – 100%
Making these decisions is a prediction. We do not know what the market will do, but we chose based on the recommendation we had. Thus far, these investments have done well. We have seen the market drop and rise, but overall our investment continues to grow.
By researching and using guidelines, you can make informed decisions in allocating your money. With your plan in place and your money diversified among the funds, your retirement savings can grow to meet your future needs.
Weekly Project: Review your asset allocation within your retirement accounts.
In using time wisely to file your important documents, continue making progress. Next week, we will look at selecting your beneficiary designations. In the meantime, happy organizing!
Question: How often do you change your investments?
Photograph Credit: Fotolia
With so many vacation savings options, I love sharing the strategies we used for our trip down to Florida.
Having generous family members scattered throughout Florida, who graciously allow us to stay and visit with them, I know our situation is rare.
But in working with our situation, we chose options that fit our budget and enjoyed a great time together while stretching our dollars.
In this 5-part series, we started with the cost breakdown of our two-week vacation where we spent less than $1,000. Then in Part 2, I shared the benefits of our zoo membership, followed by Part 3’s science membership and Part 4’s botanical gardens membership. In this last segment, I highlight guess passes.
When purchasing annual memberships, some establishments offer guest passes with your membership. With our current memberships, we have guest passes with our zoo membership.
Our science and gardens membership are only for our family. With these two memberships, we had the option of selecting a level with guest passes. In finding the prices better through daily deal sites for my parents’ admission, we bypassed the upgraded membership prices.
Having grown up in Florida, I have lots of friends and family in the area. On a previous visit, we were given passes to an amusement park from my mom’s generous neighbor, who had extra tickets through his business.
On this visit, another friend graciously granted our family admission to an aquarium. With a $6 parking fee, our family enjoyed a morning walking through the aquarium, touching the sting rays, watching the sea creatures, and racing the river otters, which seem to have boundless energy.
In accepting guess passes from generous friends, our family enjoyed an additional experience for a minimal cost of $6 while stretching our dollars. As this series comes to an end, I trust by showing you how we maximized our savings that you can go forth and prosper.
While planning your next vacation, use savings strategies, like memberships and guest passes, to save money and stretch your dollars. In using time wisely, start early and enjoy planning. Happy savings!
Question: How do you plan to stretch your dollars on your next vacation?
Photograph Credit: Outback Steakhouse
In support of Veterans Day, Outback Steakhouse will give all properly identified military personnel a free Bloomin’ Onion and a Coca-cola beverage. This offer is valid on Sunday, November 11, 2012, and Monday, November 12, 2012.
Beginning Tuesday, November 13 through December 31, 2012, Outback Steakhouse continues their support with a 10% off discount to all properly identified military soldiers.
As you visit your local Outback Steakhouse, compliment them on their support of our military. Thank you, Outback Steakhouse!
Photograph Credit: Microsoft Images
Going back to the drawing board provides a fresh start saving from scratch. Beginning with the basics and then working up allows the process to stay manageable. When the foundation crumbles, then one needs to start over.
In starting over, I took last week’s challenge and organized my food supply. This time around, the pantry took longer although I did not defrost my freezer. I stayed inside as much as possible this week with the drop in temperature.
In continuing this series with an organized pantry, freezer, and refrigerator, I move onto creating a menu.
In discovering a menu plan, I have used a weekly and monthly plan. Though I no longer plan the full month in advance, I prefer to schedule our meals a week in advance on a monthly menu planner. I like the calendar in the kitchen and a place to add meals as I get inspiration.
With my pantry, freezer, and refrigerator organized, I can “shop” from my food supply to create meals that I have in stock.
Once I have a meal decided, I assign that meal to a day on my menu planner.
Sample Menu Plan
Sunday:
B – Egg sandwiches with fruit cups
L – Roast beef in crock pot, mashed potatoes, vegetables, and bread
D – Pancakes and bacon
Monday:
B – Cereal and fruit
L – Pizza at school
D – Baked chicken, rice, and vegetables
After assigning the meals I can make with the ingredients at home, I might have a few days left on my planner for the week. I continue to see what parts of meals I have in my food supply. For example, to make open-faced pork chop sandwiches I might have the pork chops, cream of chicken, and milk, but I lack the hamburger buns.
For these partial meals, I add the meal to my menu planner on a day after I plan to grocery shop. I then add the remaining items needed, in this case the hamburger buns, to my weekly grocery list. I then plan hamburgers or chicken patties for another meal to use the leftover hamburger buns before they spoil.
In using time wisely to prepare for the week and to save money on food items, I use what we have at home and then write down the missing items on my grocery list for pickup during the week.
Shopping your food supply may only generate a meal or two, at first. But as you build your stockpile, you will find more and more meals in your food supply. Start where you are and work from there, and the savings will come. Happy menu planning!
Question: What type of menu planner do you prefer?
