Will You Still Get Social Security? Better Late Than Never-

The cornerstone of most Americans' retirement plans is Social Security.  More than 53 million people collect Social Security benefits each month.  And for nearly two-thirds of elderly American households -- those with at least one member who is 65 or older -- Social Security provides at least half of their income.  In some cases, it is the only source of income.  Even more amazing, 55% of 50- to 60-year-olds say they are counting on Social Security as a key part of their retirement income, according to a recent survey by Charles Schwab.

Do I Have to Do Anything on My Taxes if I Did an IRA Rollover Last Year?

Did you roll over an IRA or 401(k) during 2010? Were you told it wasn't taxable?  First the good news: Rollovers aren't taxable.  Now the bad news: Rollovers are reportable, meaning the rollover will somewhat complicate your tax return.

Anyone who rolls over an IRA or 401(k) should receive a 1099-R from the custodian of the account which has been terminated as a result of the rollover. Properly coded, the 1099-R will indicate no taxable amount and also have a letter code of "G" in box 7. (If your 1099-R indicates something different promptly contact the custodian). Still, you must put the entire amount of the rollover on line 15a of Form 1040. Since

One Small Step - What's Your Financial Strategy?

Recent research shows that while 52% of participants in a resolution study were confident of success with their goals, only 12% actually achieved their goals. A separate study in 2007 by Richard Wisemen from the University of Bristol showed that 78% of those who set New Year resolutions fail, and those who succeed have 5 traits in common.  Men achieved their goal 22% more often when they engaged in goal setting, (a system where small measurable goals are being set; such as, a pound a week, instead of

No One Ever Died With Too Much Money

Statistics say that 15 percent of husbands and 28 percent of wives have no life insurance.  I tend to believe that this is so because  we believe that insurance is complicated.  Let me help and shed a little light on the topic.

In the world there are only two kinds of life insurance.  I'm sure you have heard many different names, 10-year term, 30-year term, whole life, graded premium life, decreasing term, universal life, etc., etc., etc.  Every company has its own names and its own variations.  But know this; there are only two kinds of life insurance - term and permanent.  Each of these products has four unique characteristics.  As I explain these characteristics, I want you to consider an analogy.  Think of term insurance like renting a home and permanent insurance like buying a home.  As we go through, I think you'll find amazing similarities.

I Have A Dream

It is indeed a sobering realization that those that sacrificed before me, afforded me the lifestyle that I enjoy today.  It is also incredibly important that I never forget them.

If you've never see Dr. Kings "I have a dream speech" in it's entirety.  Please take the time to look and listen carefully.  Our nations future depends on it.

K. Michael Ferguson

Are You Going To Outlive Your Retirement Savings?

The problem? The average Baby Boomer has less than $50,000 accumulated for retirement (which means many have less than that), primarily due to bad habits and having money invested in the wrong places where economic downturns can diminish their nest egg. 
The solution? Social Security isn’t the answer. Taking ownership is the answer—through asset optimization and equity management with proper financial planning.


When it comes to planning for retirement in these tough economic times, it’s apparent that many Boomers are confused. They feel isolated. They feel powerless. Many fear that it’s too late to plan for a comfortable retirement. Many are concerned that they haven’t saved enough—that they may outlast their retirement resources.

Should You Leave Your 401(k) With Your Old Employer?

A client told me today that her brother left his job a while back to start his own business, but his retirement money still was sitting in a 401(k) account with his former employer. She wanted to know if he should just cash it out.

"No, that's a bad idea," I said because he would have to pay a 10% early-withdrawal penalty and taxes. A better idea would be to roll the money directly into a traditional IRA or Roth IRA. 

Because my client's brother is self-employed, he also could roll his 401(k) over into a SEP IRA or solo 401(K ),

Is Anyone Minding the Store at the Federal Reserve?

Top 5 Reasons Why Not To Cancel Your Life Insurance Policy

Twice this week I sat with good clients who were torn about keeping or surrendering their life insurance policies because of the economy. They worry about how to pay their bills on time, such as their mortgage or car note. 

Unfortunately, often times they do not strategize well.  Instead of eliminating vices (e.g., cable TV, alcohol, cigarettes and gambling) from their budget, they eliminate necessities that they do not use on a daily basis, such as life insurance.  They are not going to eliminate soap and deodorant from their budget, for individuals use soap and deodorant on a daily basis. However, they will drop their life insurance policies.

The rational for canceling their life insurance, especially when they are financially struggling, range far and wide.  Here are a list of some of the excuses that I've heard:

14 Trillion Reasons Why You Need A Personal Retirement Plan

14 Trillion Reasons Why You Need A Personal Retirement Plan


Recently AARP released a new survey report that shows that three in four (76 percent) adults age 18 and older rely on or plan to rely on Social Security for their retirement income, including a large majority(62 percent) of younger adults age 18-29.

Take a hard look at the US Debt Clock link and see why every American needs  a personal comprehensive financial and retirement plan in place.

US Debt Clock

Sources & Related Articles:

http://www.aarp.org/about-aarp/press-center/info-08-2010/social_security_poll_release.html

http://www.thirdage.com/retirement/5-reasons-women-need-worry-more-about-retirement

Expecting An Early Tax Refund? You Might Have To Wait.

IRS 2010 Federal Tax Return Delay – Earliest Date to File U.S. Taxes in February for Some

We all know that we have a deadline to file our taxes but not much is said about the earliest you can mail in your tax return. Typically, the IRS begins accepting individual tax returns in January, following the end of the calendar tax year. However, due to recent tax legislation, the IRS cannot accept returns from certain individuals until at least February.

When President Obama signed the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act into law in December 2010, the tax law necessitated changes to 2010 IRS tax forms and processing systems.  According to IRS Commissioner Doug Shulman, most taxpayers will not be affected by the changes, but some will have to wait until at least mid-