$15 for your will. Now what's your excuse?

I recently met with a great young married couple who are well on their way to getting out of debt and financial peace. It's great to see spouses on the same financial page and attacking debt together.

One of the many things we discussed was there need for a will. Well, Dave Ramsey to the rescue again. Linking to US Legal Forms from Dave's web site allows you to get a will for only $15. If you don't have a will get one. With only costing $15 there is absolutely no reason not to have this vital legal document in place.

If you don't want to do it yourself, they do it for you for only $49.

Click here and you'll be taken to US Legal Forms and have your will in no time.

Big Day . . . .

Friday was a big day for me and my just turned 15 year old son Chaz.

I picked Chaz up after school and we headed over to JP Morgan Chase bank. For his 15th birthday, I helped Chaz open up a checking account complete with a debit card. He's more excited about the money his mom and I deposited into the account for his birthday than the checking account but I'm more excited about the money lessons he's already learning. Here's some of the money / life lessons he's learning already.

1. How to fill out a deposit slip and record this in his checkbook.
2. The first check he wrote was his tithe check.
3. How to record his tithe check in his checkbook.
4. How cool it is to see his balance increase with depositing his other birthday money and this weeks mowing money. (He's mowing 4 yards this year.)
   
5. Trying to decide whether an Xbox is really worth taking his new checkbook balance down to zero. (No final decision yet.)
   
   

Best lessons here for me.

1. Knowing and trusting my son enough at 15 year young to manage his own money and put a checkbook and debit card in his hand.
   
2. Seeing his mental wheels turn with all the "firsts" in using his checkbook.
3. Watching him go back and forth in trying to decided "do I or don't I" buy an Xbox or save the funds towards' his first car. (There's another great blog post here.)
4. Knowing that I showing and teaching him good money habits that's he'll be using long after he's moved out of our house. (Sooner than I think his mom or me will be ready for.)

This is one of these life moments for me where I think to myself "Life is good." Thanks God!

Roth IRA Basics

I've talked about Roth IRA's in lots of posts. In doing so, I've made some assumptions that everyone knows what a Roth IRA is. We'll, we all know what happens when we assume.

So, here's the 411 on a Roth.

1. Where did the name "ROTH" come from? The Roth IRA was born on January 1, 1998 as a result of the Taxpayer Relief Act of 1997. It's named after the late Senator William V. Roth, Jr.
   
   
2. What's the big deal with a "ROTH" vrs a regular IRA? The chief advantage of the Roth IRA is the ability to have investment earnings completely escape taxation. This is a really big deal.
   
   
3. When can I contribute to my Roth? Annual IRA contributions can be made between January 1 of that year and April 15 of the following year. Because of the extra three and a half months, if you send in a contribution to your IRA custodian between January and April, be sure to indicate the year of the contribution so the appropriate information gets sent to the IRS. Remember, contributions to a Roth IRA are never deductible from a taxpayer's income (unlike a traditional IRA).
   
   
4. How much can I contribute in 2008? $5,000 if under age 50. $6,000 if 50 and older.
   
   
5. Can I take money out of my Roth without penalty? *Contributions can be withdrawn tax-free and penalty-free at any time. *There is 5-year clock 'A'. Clock 'A' starts on the first day of the first tax year in which any Roth IRA is opened and funded. *Earnings can be withdrawn tax-free and penalty-free after Clock 'A' hits 5 years and a qualifying event (such as turning 59.5, disability, etc.) occurs.
   
   
6. Are there income limits for eligibility? (Can I make too much money to contribute?) Yes. You need to look at your Modified Adjusted Gross Income. This is the last amount on the first page of your tax return. If this amount is greater than:
   
   *Single filers: Up to $101,000 (to qualify for a full contribution); $101,000-$116,000 (to be eligible for a partial contribution)
   *Joint filers: Up to $159,000 (to qualify for a full contribution); $159,000-$169,000 (to be eligible for a partial contribution)

I'm a firm believer that no matter what type of retirement plan your employer offers, you will greatly benefit from having a ROTH IRA.

What type of retirement plan is right for me?

This post is in response to a recent comment I received form relientk008.

The question posed to me was, "as a teacher, should I consider other forms of retirement savings in addition to State Teachers Retirement?" Now if your not a teacher this post is still for you because everyone should save for retirement both through their employer and on their own using a Roth IRA.

Ah, but I'm getting ahead of myself. Before you start thinking about saving for retirement, You must establish an Emergency Fund. Start with $1,000 in savings. Next, you need to pay off all you consumer debt. Attack it! Kill it. When it's zero, now it's time to start saving for retirement.

Here's what I do.

1. I contribute 3% into NewPointe's retirement plan. Why 3%? Because the church matchs 100% up to that amount. I've just made a 100% return on my investment. That's way cool.
2. Next, I fund my Roth IRA as much as possible. The limit for 2008 is $5,000 / $6,000 if you are 50 or older. If your married, then double these amounts. (Hands down, the outside of company matching funds, the Roth IRA is the greatest retirement vehicle ever.) Why? Because 100% of the growth, and that's where the wealth comes from is TAX FREE when you take it out at retirement age.

Where do I have my Roth? Sound Mind Investing Fund.

relientk008, I hope you and everyone found this post helpful.

Fantastic Results - Lives changed!

Last night we finished this round of Financial Peace University classes here at NewPointe. The results were fantastic. Take a look.

1. # of graduates 29
2. # of Credit Cards cut up / destroyed in class 56
   
3. New Debt offered through credit cards $4,261,050
4. Total debt paid off during the class $57,110
5. Total amount put into savings $16,794
6. Most debt paid off by one couple $13,100
7. Most amount put into savings by one couple $5,000

I can't describe how great I feel in being part of this life change. It's truly a gift from God

5 best and different retirement calculators

I'm always on the lookout for great financial tools. Today I stumbled across CNN Money's web site that list the "Best online retirement calculators". You can visit the site by clicking here. These calculators address the following issues.

1. Am I on track to a secure retirement?
2. Am I investing properly?
3. Should I go for a Roth IRA?
4. How long will my money last?
5. How much income can I get?

Check it out when you have a minute

Eliminate Pre-approved Credit Card Offers from your mailbox

Those pre-approved credit card offers that arrive in your mailbox can be very tempting to identity thieves. Once they get their hands on that credit card offer, they can complete it and change the address in the process.

That's all it takes to open up a credit card account in your name. Unbelievable isn't it. Fortunately, there is a way for you to opt-out of these pre-approved credit card offers. Just visit the Consumer Credit Reporting Industry website at www.optoutprescreen.com. The process takes less then 5 minutes. It's well worth your time and it's a great step toward financial peace.

Did you know?

I know I'm a financial nerd. So much so that I subscribe the the Social Security Administration's monthly digest bulletin. Sound exciting? Ok, maybe not but here's some news you may find interesting.

2017 is the year the projected point at which tax revenues will fall below program costs. Translation. Benefits being paid out exceed money coming in. Ouch. If this is only 9 years away, why isn't anyone talking about it?

I'm not a "sky is falling" person. I do think this topic should be on the forefront of what our elected officials should be talking about.

And if you were wondering, The projected point at which the Trust Funds will be exhausted comes in 2041.

Been contacted by the IRS yet?

Be on the lookout in your email inbox form anything that says its from the IRS. There are several email and even telephone scams using the IRS name as a lure.

The scam is to trick you int revealing personal and financial information such as:

1. Social Security Number
2. Bank Account Information
   
3. Credit Card Information

They will use this info to commit identity theft.

Here are a few of the most recent scams:

1. Email notifying you that your tax return has been selected for an audit. (The IRS does NOT contact taxpayers via email.)
   
2. Early filer rebate. You get a phone call from a so called IRS agent saying that because you filed your taxes early, you qualify for a special rebate.
   
3. Status of IRS check. Phone call or email from the "IRS" saying your rebate hasn't cleared the bank yet and they want to verify your banking information to follow-up on your refund check.
   

If you receive anything like this, the IRS is asking you to notify them via email at phishing@irs.gov. (Now I think it's kind of funny that the IRS is warning taxpayer about email scams and then the IRS is asking you to report it to them via email)

Cool Financial Site & I'm published there

I'm always on the lookout for tools, articles and tips that give me "financial nuggets". Recently, I was introduced to "Your Money Now" by Amanda Ransburg. She's the Deputy Director of Communition Technology for the Ohio Treasurer of State's office.

Your Money Now is a web site dedicated to helping you make heads and tails out of your finances. I'm very proud to say that an article I submitted to the is currently featured on the home page.

If you've ever wondered how to respond to a cashier when you have handed over your debit card as payment for a transaction and the cashier asks, "debit or credit" then you'll want to follow this link to read my advise.

Spring Cleaning to Debt Freedom!

Well I think I can say that Spring is finally arriving here in Ohio. Temps in the 50's and low 60's all this week. This weekend, while I was hosing and blowing out all the salt from my garage I noticed all the "Stuff" (thinks I don't use or want anymore) that just seems to accumulate over the winter.

Spring cleaning is a great time to identify the stuff you no longer use or could do without. Resolve to get that stuff out of your house via Ebay or an upcoming garage sale. You'd be surprised at how much other people are willing to pay for you so called junk.

Selling stuff you have around your house is one of the best ways to eliminate your consumer debt and begin to build wealth. Just this week, I had a conversation with my neighbor and he sold his "off-road" motorcycle that he hasn't ridden in two years. (Way to go Ben build some wealth.)

I'm guessing if you'd spend 10 minutes in your basement or garage, you could find 10 things worth selling. Give it a try. Let me know what you come up with.

Money Advise

Money. It's not a dirty word. Money by itself is not good or bad. It's what you do with what you have that makes the difference. Ah but I'm getting ahead of myself.

Have you given thought as to why you do what you do with money? Where or who has taught you how to handle it? We all know that you have to spend less than you make or you'll never get ahead. Yet we as American's have a negative savings rate.

Where's a good place to start to get your financial life going in the right direction? I'd like to suggest a book. Hey, books are low to no investment dollars and a great return on your time.

By far one of the best books you could ever read is Dave Ramsey's Total Money Makeover. If you're looking for a financial game plan, this book is for you. If your wondering, "am I doing this financial thing the best way I can, then read the book. Go get it at the library and read it for FREE.

If you're like most, handling money in your household has been hit and miss at best. You'll never get control of your finances this way. Make the decision today to win financially.

Did you see one yet?

In getting the cash register door ready for Aqua tonight. (Aqua is our Singles ministry every other Tuesday night.) For the first time I came across one of the new $5 bills.

My first reaction was, wow, this is pretty cool. My second reaction was this looks like monopoly money. Have you come across one of these new $5 bill yet? When you do, please post a comment on where you first saw it.

Things I did on a Snowy Spring Saturday

Well, this weather stinks. I woke up to snow flurries and it's been that way all day. I didn't let the weather get me down. My day has been very enjoyable so far. Here's some highlights.

1. Coffee and the local paper.
2. Walked the dogs. Twice so far today.
   
3. Catch up on the blogs I follow.
4. Read a few chapters of the book "Margin". Thanks Kevin.
5. Off to the library and read the following magazines: Bicycling (5 issues), Fortune, Forbes, Men's Health, Money, Real Simple & Smart Money. I love the library.
   
6. Check-out the following books: Lance Armstrong Performance Program; Becoming a Millionaire God's way,The Millionaire Maker, and Not-for-Profit Accounting.
7. Detailed my Felt Bicycle and put on two brand new tires. (Can't wait to put miles on them.)

The rest of my day? I'm trying to get the grease off my hands from detailing my bike. After that, I'm cook'en fish for supper then I'm diving into the books I checked out of the library today.

Have a great Easter Sunday.

Is the sky falling?

Even if you don't follow the stock market on a consistent basis, I'm sure you've heard all the gloom and doom about your investment or retirement dollars. We'll I'm one more voice that here to tell you, don't panic.

First of all, investing is considered to be savings for a period of greater than 5 years. I'm 41 years old so retirement for me is still 25 years away. So, that means I'm an investor when it comes to saving for retirement. At this stage of the game for me, I look at the down turns in the market as "everything" is on sale. So using the principal of dollar-cost-averaging, I'm getting more shares for my investment dollars right now.

Why and I calm when the market is down so much already this year? Great question. Take a look a the chart below. There are some major "bad news" events listed here. Look at where the market ended up 5 years after the "bad news". The worst return was over 8%. So take heart, keep funding your retirement plan and ignore all the "financial experts" on TV.

I love a bargin

I'm always on the look out for getting the most for my money. I get really excited when I get a great deal on something that I've been looking for.

Last fall, my sandles finally bit the dust. (pun intended). So I've been casually looking for a new pair ever since. I now own a new pair. Check this out.


Original price was $45.00. The price I paid was $9.97. That's a whopping 78% savings. I must admit, I'm more excited about getting a pair of $45 shoes for $9.97 than the actual shoes themselves. Although I must say I look very stylish in them.

Anyway, always be on the lookout for getting the most out of your hard earned dollars. Here's to your financial peace.

5 cool "Free" softwares

I'm always on the look out for useful and free software. Here's 5 that you should check out for your own use.

1. Abiword
www.abisource.com
Replaces Microsoft Word
Want a good word processor but find Microsoft Word too expensive? AbiWord is my favorite replacement for Word. It’s lightweight (meaning it runs quickly) and includes pretty much every feature that I use regularly in a word processor, plus it can save files in formats that you can exchange with Word and WordPerfect users, plus open any of their files, too.

2. OpenOffice
www.openoffice.org
Replaces Microsoft Excel and Microsoft PowerPoint
If you want to replace the rest of the Office suite, your best bet is OpenOffice. It includes very nice replacements for Excel and PowerPoint (and workable replacements for Access and other Office elements).

3. KeePass
keepass.sourceforge.net
KeePass is a program that securely stores and manages the abundance of passwords we all use on a daily basis.

4. GnuCash
www.gnucash.org
Replaces Microsoft Money or Quicken
GnuCash is a slimmed-down version of the bloated Microsoft Money and Quicken packages, but it contains all of the features I want for managing my money. The interfaces are incredibly simple - it functions much like a checkbook ledger on your computer - but there’s a lot of meat hidden throughout the software.

5. Firefox
www.getfirefox.com
Replaces Internet Explorer
If you haven’t switched to Firefox for your web browsing needs, do it now. It stops annoying popups and it has lost of plugins that can make surfing the web even better.

Emergency Fund. . . . Thank you God

What's the first step in a sound financial plan? Answer: An emergency fund. I sure am glad my family has one. Unfortunately, today I got to use it.

I took my beloved 1998 VW turbo diesel Beetle into the shop today because it was sounding funny and not running the best. It has 101,000 miles on it. I dropped off the keys in the night drop, my wife picked me up and off to work we went. (We both work at NewPointe.)

The first call from the shop wasn't to bad. New glow plugs $275 parts and labor. I thought doable. About a 1/2 hour later, ten the other shoe dropped. The second call came, I need to replace the catalytic converter. Ouch! I'm looking at a total bill of $1,400. (Other than normal oil changes and the deer that hit me, this repair is all I've put into my car in more than 2 years.) Much cheaper than a car payment.

Anyway, I told the shop, no problems with the repair bill. Let's get my car running good. I thanked them for their work and asked them to give me a call when they are finished.

Do I like pulling $1,400 out of my families emergency fund? No way. But I'm very thankful that I have it to pull out. Because in the past, a car emergency also meant we had a financial emergency. Now I get to just fix the car then work on putting the dollars back into my emergency fund over time.

Take back your money for FREE

Ok, I'm assuming by now you have completed and filed your 2007 tax return or you are very close to doing so. I'm also assuming you received a refund. I'm sure you've heard that by getting a refund you are allowing Uncle Sam to use your money all year long without paying you any interest on your money. (This is true.)

With that being said, I know people are deathly afraid of owing money at tax time. So where's the balance? Hey, I even like getting a little refund. I found a tool that will help with this. Here's the link. It's Kiplinger's tax withholding calculator. You'll have to have your 2007 tax return in hand to use this tool.

When I ran the calculation for myself, it told me I should be claiming 2 extra withholdings. This would add another 87.50 per month to my take home pay. This sure will help when $4 a gallon gas comes this summer.

21 more. . .

Things keep getting better and better on Tuesday nights. Yep, Tuesday is Financial Peace University night at NewPointe and that pumps me up.

We began class again by cutting up more credit cards.

21 destroyed last night. That brings our class total to 54

I can't describe the feeling I have for days when people destroy their credit cards. Not because credit card by themselves are evil but because of the bondage people end up living in because of what they use them for.

Newsflash, credit cards are not an emergency fund and should never be used as such. A starter emergency fund is $1,000 in the bank. You need to get there ASAP.