My name is Dan Veasey and I work for a local credit union.  Piedmont Credit Union!  I’ll be sharing some thoughts about money, credit, and personal finance with you every so often.  I hope you find them enjoyable and sometimes even grow in your knowledge and expertise regarding all things financial.  If you have something to share about finances or a comment about what you read here, send it to dan@piedmontcu.org.

10.28.10

Do You Want a Grilled Cheese Sandwich?

I can cook a really great grilled cheese sandwich!  But that’s about the extent of my culinary prowess!  No one in their right mind would dare take cooking advice from me.  However, people every day take financial advice from their neighbors, friends and online buddies without really knowing if they are remotely qualified to offer such advice.  If you listen to financial advice from people who are always broke, guess what you’ll be.  Broke!

Fortuntately financial education has come into the limelight over the last two years.  Schools have begun making it a part of the curriculum, local credit unions such as mine have established formal programs, churches and other non-profit groups are offering opportunities as well.  If you are struggling with finances to any extent at all, you’re not alone. Connect with a local organization that is offering educational opportunities and get some good advice.   If you’re looking for a list of opportunities email me at dan@piedmontcu.org [8] and I’ll connect you with one of them.

My credit union’s program is called Financial Focus.  Our next event, Planning for a Golden Retirement, is November 8, 2010.  We’ll have a local expert on retirement & estate planning, Richard Jones, as our special guest.  For all the details or to sign up visitwww.piedmontcu.org/FinancialFocus [9].

financial education Financial Focus financial literacy grilled cheese retirement Other
Source URL: http://www.piedmontcu.org/content/would-you-grilled-cheese-sandwich-financial-education-opportunities
Links:
[1] http://www.piedmontcu.org/users/dan
[2] http://www.piedmontcu.org/category/savings-story-tags/financial-education
[3] http://www.piedmontcu.org/category/savings-story-tags/financial-focus
[4] http://www.piedmontcu.org/category/savings-story-tags/financial-literacy
[5] http://www.piedmontcu.org/category/savings-story-tags/grilled-cheese
[6] http://www.piedmontcu.org/category/savings-story-tags/retirement
[7] http://www.piedmontcu.org/category/type-savings-story/other
[8] mailto:dan@piedmontcu.org
[9] http://www.piedmontcu.org/FinancialFocus

Q: Which goal should have a higher priority? Saving for my own retirement or saving for my child’s college education?

A: Both of these goals are very important, however, one of them clearly holds a higher priority. Let’s look at the options available for these two life events.

College: When it comes to paying for college there are lots and lots of options. Student loans, financial aid, scholarships, tuition payment plans, work study and part time jobs are just a few ways to help pay for college. There are lower cost options for college like community colleges or online programs as well.

Retirement: Now consider what the options are for funding retirement. First we should try to figure out just how much regular income we’ll need to have an enjoyable retirement. For this to be even remotely accurate we’ll need an idea of what we’re spending on day to day life right now. A general rule is that 70% of your net pre-retirement income makes for a good target retirement income.

Once we’ve got an idea of how much money we’ll need in retirement, let’s ask the question of the day, “Where am I going to get that money?” Here are the options to fund your retirement: Pension, social security, investment income (401K, IRA’s, annuities, certificates, etc.), and work. Unlike college, a loan is not a viable option for retirement funding. A big loan during the golden years usually only serves to make those years a little less golden.

The short and simple answer is that retirement savings is almost always a higher priority than college savings. The quality of life in your golden years will primarily be the result of the choices you have made in regards to saving money for it. Stay tuned to this page in the coming months for more information about the details of planning for a successful retirement.

2010, The Year of Broken Stuff

Let me share a little story with you which, I hope, will emphasize the importance of regular savings.  First here’s a little background information.  I have a wife, three children, two cars, and a seven year old house.  Surely you have heard the expression, “When it rains, it pours!”  Well that’s what 2010 has been like for my family finances!  I know I’m not alone in this and that others in our area have had much worse years than me, but take a look at my list of expenses for 2010 that were not present in 2009:Read more...