Prosperity Trek

Tips on Writing a Good Cover Letter for Your Resume

Prosperity Trekker — Tue, 09 Mar 2010 23:17:41 +0000

To make a favorable impression, hiring managers say job hunters should craft different letters for every application and tailor them to both the employer and position they’re targeting.

Cover letters should be brief.

One way to customize a cover letter is to reference an employer’s products or services or point out content on its Web site. Another [...]

At Age 70 1/2: Required Distributions from Retirement Plans

Prosperity Trekker — Fri, 05 Mar 2010 21:38:09 +0000

Required Distributions Begin at 70 1/2

Age 70 1/2 heralds in required minimum distributions for owners of traditional IRAs, 401(k)s and other defined-contribution retirement plans. Roth 401(k) owners are also subject to RMDs at this age, but Roth IRA owners are not.

Generally an RMD must be taken by year-end. First-timers can choose to delay taking a [...]

At Age 65: Claiming Government Health-Care Coverage

Prosperity Trekker — Fri, 05 Mar 2010 19:24:57 +0000

Government Health-Care Coverage at 65

When you turn 65, Medicare coverage could be the best gift of all. But you will need to plan ahead. Enrollment periods vary among coverage plans, and you can get zinged by permanent late fees if you miss deadlines.

There are two main choices for getting Medicare. You can enroll in traditional [...]

On or After Age 62: Decision on When to Claim Social Security Benefit

Prosperity Trekker — Fri, 05 Mar 2010 19:00:27 +0000

The Social Security Dilemma at 62

Deciding on when to start claiming benefits depends on a number of factors: your life expectancy, your marital status and whether you’re still working. If you were born between 1943 and 1954, you can collect full benefits starting at 66. You’re eligible to start claiming benefits at 62, but your [...]

On or After Age 59 1/2: Avoid IRA, Roth, 401(k) Withdrawal Penalty

Prosperity Trekker — Fri, 05 Mar 2010 18:20:02 +0000

On the day you turn 59 1/2, you can tap a traditional IRA without incurring a 10% early-distribution penalty. You will still owe income tax on any distribution.

Roth IRA owners who are 59 1/2 are free of the 10% penalty on withdrawn earnings (those earnings are also tax-free as long as owners have held at [...]

Budgeting Resources

Prosperity Trekker — Sun, 28 Feb 2010 18:35:44 +0000

Services Budgeting

Visit Mint.com to do your budgeting with an easy to use and feature-packed web site. Synchronize your bank, credit card, and investment accounts with the site – it takes only a couple of minutes – and start tracking your cash flow. Mint tracks every noncash expenditure and summarizes your spending in categories, such as food [...]

Financial Planning Resources

Prosperity Trekker — Sun, 28 Feb 2010 17:51:39 +0000

Information Financial Planning

Visit ESPlannerBASIC which asks what you earn, what you spend, and how your financial obligations will change over time. (For example, when will your youngest kid graduate?) It then assumes that you’ll want your family to maintain the same living standard from today on, and figures out how much you can afford to spend, [...]

Trek IV: Reach Financial Goals

Prosperity Trekker — Thu, 25 Feb 2010 02:57:16 +0000

Once you’ve determined your initial goals for your financial plan, it’s time to begin the process of reaching those goals.

Think of the financial planning process as a journey.

You prepare for the trip by marking on the road map where you are today and the destinations you want to reach.

These destinations represent any life dreams and [...]

Trek III: Reach Financial Goals

Prosperity Trekker — Thu, 25 Feb 2010 02:47:48 +0000

Once you’ve determined your initial goals for your financial plan, it’s time to begin the process of reaching those goals.

Think of the financial planning process as a journey.

You prepare for the trip by marking on the road map where you are today and the destinations you want to reach.

These destinations represent any life dreams and [...]

Retirement Planning – Steps for Pre-Retirees

Prosperity Trekker — Tue, 09 Feb 2010 13:39:23 +0000

Even when one’s investments are doing well, facing retirement is stressful.

The good news is that, with the proper planning, a person can still retire without putting their nest egg at risk. Here are five last-minute steps pre-retirees should take before collecting their gold watches.

Adjust Your Asset Allocation

Whether retirement is six months away or three years [...]

Estate Planning With A Charitable Lead Annuity Trust

Prosperity Trekker — Tue, 02 Feb 2010 03:35:23 +0000

Similar to a Grantor Retained Annuity Trust (GRAT), a Charitable Lead Annuity Trust (CLAT) can pass most of their investment gains to heirs, while reducing or eliminating gift and estate taxes. But whereas a GRAT returns interest and principal to you, a charitable lead annuity trust, or CLAT, typically gives everything away. Annual income payments, [...]

Estate Planning With An Intentionally Defective Grantor Trust

Prosperity Trekker — Tue, 02 Feb 2010 02:38:36 +0000

A popular trust strategy, the sale of an asset to an Intentionally Defective Grantor Trust, or IDGT, can also be complex and expensive to set up. Why bother? For one thing, the payoff is potentially greater than with other strategies. Moreover, these give you a tax-advantaged way to pass assets to grandchildren while keeping the [...]

Helping Your Heirs With a Family Loan

Prosperity Trekker — Sun, 31 Jan 2010 21:30:54 +0000

One of the most attractive wealth-transfer strategies is also one of the simplest – a family loan.

The IRS permits relatives to lend money to one another at what is called the Applicable Federal Rate, which the government sets monthly. With these, relatives can charge far less than a bank.

The appeal of the Bank of Mom [...]

Preventative Medicine – Use Screening Tests to Save Money

Prosperity Trekker — Wed, 27 Jan 2010 04:17:14 +0000

Preventative medicine is an investment in the quality of your life. Not only does it decrease the probability of a future serious illness but it also substantially reduces your future health care costs.

Heart disease, diabetes and cancer contribute to a large number of illnesses, disabilities and deaths. They’re also some of the most costly conditions [...]

Debt – How Your Credit Score Affects Your Future Cash Flow

Prosperity Trekker — Thu, 21 Jan 2010 14:03:22 +0000

Your credit score can affect your future cash flow. It can increase insurance premiums, job offers, housing costs and interest payments.

Insurance

Different rules apply for life, home and auto insurances.

Life insurance

A bad credit score will exclude you from top-tier life insurance, but your score doesn’t weigh heavily at any other level.

Although it does get factored in, [...]

Saving For Retirement – Are You on Track? Find Out If You Are

Prosperity Trekker — Tue, 19 Jan 2010 13:54:23 +0000

It’s critical to do the math, know the facts, plan prudently and make sure you stay on track for retirement.

Let’s say you’ve been saving for retirement and you’re in the middle of your earning years. How are you doing?

It’s hard to know offhand. Many of us are not savvy about investments and feel overwhelmed with the [...]

Charitable Giving Starts With Finding A Cause You’re Passionate About

Prosperity Trekker — Tue, 19 Jan 2010 00:41:51 +0000

Charitable giving starts with finding a cause you’re passionate about. Find a cause or organization you are passionate about – whether it’s the environment, education, the arts, animals, or any other topic you care about. Ask what the needs are, and make a commitment to help.

When choosing an organization to assist, take a look at [...]

Your Credit History and Credit Score – An Overview

Prosperity Trekker — Tue, 12 Jan 2010 04:00:55 +0000

What is a credit score?

A credit history is a collection of all of the pieces of financial information that relate to your life. It contains information on how long you’ve had your individual credit accounts, the account limits, balances, and your payment history.

Current and future creditors only want to know one thing: if they loan [...]

Protecting Net Worth From Long-Term Care Costs

Prosperity Trekker — Sun, 10 Jan 2010 00:32:08 +0000

The cost of long-term care can destroy net worth and a lifetime of savings.

It’s difficult, but not impossible, to do estate planning that protects assets from long-term care costs.

One option is to use an irrevocable income-only trust in situations where the objective is to pass on a house or other asset to a child. By [...]

Charitable Gift Annuities – Charitable Giving Combined with a Lifetime Annuity

Prosperity Trekker — Fri, 08 Jan 2010 03:56:33 +0000

Unlike commercial annuities, which are sold by insurance companies, charitable gift annuities are offered directly by nonprofit organizations like charities, universities and hospitals.

Increasingly, people are discovering these products as a neat solution to both their charitable intentions and their desire to create more reliable income in retirement.

How they work

An organization accepts your donation – cash, [...]