FiGuide - A Retirement Plan That Works! » Erin Baehr CFP®, EA

Buckle Up… It’s Going to Be a Bumpy Ride

Erin Baehr CFP®, EA — Tue, 09 Aug 2011 15:48:41 +0000

Here we go again.Yesterday we witnessed an extreme reaction to the S&P downgrade of the US’s credit rating (which ironically drove investors to seek safety in Treasuries). Today’s futures are all over the place.

How To Plan For Your Social Security Benefits

Erin Baehr CFP®, EA — Tue, 26 Jul 2011 10:51:11 +0000

With social security reform looming, we dissect what soon to be retirees can and should expect from the program. We provide you with tips on how to apply, your eligibility, and the best time to apply for your benefits.

Dipping Into Your Retirement Savings Before You Retire

Erin Baehr CFP®, EA — Mon, 20 Sep 2010 13:40:52 +0000

We are well advised and encouraged to put money into our retirement accounts and treat it like the proverbial "lockbox" until retirement. But with the difficult economy, many people have had to tap into those funds to survive,

What’s the Big Deal About the F Word?

Erin Baehr CFP®, EA — Mon, 13 Sep 2010 21:42:00 +0000

Congress recently passed the long debated 2,300 page Financial Reform bill, created in response to the abuses leading up to the recent financial crisis.

My Wish for the New Year

Erin Baehr CFP®, EA — Fri, 29 Jan 2010 20:28:46 +0000

“Year’s end is neither an end nor a beginning, but a going on, with all the wisdom that experience can instill in us.”—Hal Borland Once again I find myself surprised that the end of another year is upon us. But what a year 2009 was, and if experience instills wisdom, then there was a lot of wisdom to be gained. The world has changed in so many ways; our complacency shaken, our sense of security disturbed. It seems that we have taken those things to heart and are getting back in ...

Save on Taxes With Qualified College Expenses

Erin Baehr CFP®, EA — Sun, 24 Jan 2010 22:01:47 +0000

The holiday decorations are put away, things have been tidied up and we've turned the page on another year. No need for post-holiday blues, though — a new season is coming. This time instead of opening Christmas cards, we'll be opening Important Tax Documents. With the new tax and stimulus legislation passed in 2009, this tax season is shaping up to be a confusing one. The best defense against missing deductions or credits and leaving money on the table is to be aware of the changes that apply to you and bring them up with your tax preparer. The new credit I'm happiest about is the "American Opportunity Credit" for qualified college expenses. This credit is worth up to $2,500 per dependent student on 100 percent of the first $2,000 of qualified expenses plus 25 percent of the next $2,000, for the first four years of school.[...]

Smart Social Security Decisions for Women

Erin Baehr CFP®, EA — Fri, 08 Jan 2010 20:22:15 +0000

Best Tools for Budgeting

Erin Baehr CFP®, EA — Fri, 01 Jan 2010 20:04:26 +0000

“What’s in your wallet?” So goes the question on the Capital One credit card commercials. Some of us may answer “a hole!” because the money seems to drain out. But where does it go? There’s just not enough time in the day to get everything done, and the dreaded chore of keeping track of the finances ends up pushed off again, leaving behind the nagging feeling that you should be doing something about it. But who has the time or discipline to write down every penny that gets spent? I sure ...

Smart Social Security Tips for Women

Erin Baehr CFP®, EA — Fri, 01 Jan 2010 02:16:58 +0000

The US Department of Labor estimates that almost 90% of women will end up solely responsible for their financial well being. Given that women tend to earn less than men over their lifetimes to begin with, and may spend a good deal of time out of the workforce to care for families, women facing retirement may have fewer retirement resources, maximizing Social Security benefits available is critical.

The first thing for women (and men for that matter) to understand is how Social Security benefits are calculated in the first place. To be eligible for Social Security, you need to have been employed in a job that participates in the Social Security system for about 10 years. The benefit amount is calculated based on your highest 35 years of earnings, indexed for wage increases over the years. If you haven’t worked for 35 years, years you were out of the workforce will count as zero, and naturally bring the average down. On the other end, earnings are capped at an amount determined annually, and earnings only count up to that amount, no matter how high they may be. In 2010 that cap is $106,800. Those 35 years of earnings are then converted to a monthly amount, to come up with your “average indexed monthly earnings,” or AIME. That number then goes through a calculation to come up with your monthly benefit amount, or “primary insurance amount,” PIA. Obviously, if you have several years of zero or low earnings, that is going to bring down your PIA. One way to increase your benefit, if you are now earning a higher wage is to stay in the workforce long enough to replace those years with your current higher earnings. This is especially important for a never married woman.

Good Money Sense in an “I Want it Now” Society

Erin Baehr CFP®, EA — Mon, 26 Oct 2009 00:12:27 +0000

My six-year-old niece asked for an iPod this past Christmas. Not some kid-sturdy version of a portable CD player, not an MP3 player, but specifically an iPod. She didn't get it (thanks to my sister-in-law's good sense). But the fact that she knew to ask for it-an expensive name-brand electronic device-astounded me. Maybe it shouldn't [...]