Barrett's 2 Cents

I am a CERTIFIED FINANCIAL PLANNER™ professional. I write personal financial advice for baby boomers without kids. Some people say I help simplify their finances. Other people say I help them enjoy more life experiences. Read on and decide for yourself.

Category: Saving (page 1 of 3)

A Kibosh on the Rainy Day Fund

Do you really need to have several months of expenses sitting in an emergency fund, AKA a rainy day fund, earning no real return? I have offered such advice for most of my clients for years, even while I personally don’t maintain one. If you hate the idea of having a large chunk of money not working towards a goal, you might just be able to forego having an emergency fund altogether.

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Long-term Saving for the Short-term Worker: Spend One, Save Two (Part 3)

Scott, our Hollywood writer and producer who earns big paychecks for short periods of time, determined how big his nest egg will need to be to support his minimum lifestyle in Long-term Saving for the Short-term Worker (Part 2). Now, the tricky part. He wants to get there ASAP, but he also has a couple of big-ticket purchases he’d like to make in the near future (home and kids’ college) and faces an unknown income situation in 2 years when his show ends. To help reach his goals, we will try something that I refer to as the Spend-One-Save-Two Rule.

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Long-term Saving for the Short-term Worker (Part 2)

If you work in an industry that produces big fortunes in small doses (producer, writer, entrepreneur, etc.), you may reach a point early in your life where you could start living off your investment portfolio long before the word “retirement” even crosses your mind. So how much can you take out and when can you start?

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Long-term Saving for the Short-term Worker (Part I)

million dollar homeScott, once a struggling writer, landed his first major gig with a primetime TV show in the mid-90s that lasted for many years. He earned over $1million per year, but he made the same financial mistake that almost everyone does when a wealth event happens suddenly – he started buying things. He told me “I had no idea what the future would hold so I thought it would be futile to try and plan for it. I later realized that was the exact moment I should have started planning.”

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How to Die Broke(ish)

As someone with no kids, I’ve always loved the idea of giving away and spending down my assets in the final decades of life so that I die with very little. But a financial plan that involves “dying broke” is not very realistic for most of us, because we can’t predict how long we’ll live or how well our portfolios will perform in our final years. So, what if I told you that you can greatly increase your spending in those years as long as you’re willing to simplify your life and disappoint your heirs?

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