August 17, 2009
School supplies on a budget
Karen Croke
kcroke1@lohud.com
The rules of back-to-school shopping have changed. This year, it's buy only what you need, check for sales and coupons before you hit the stores, and, like Linda Fraylick of Pleasantville, consider alternative sources for your supplies.
Fraylick has two kids in high school, and their age, she says, helps, because older kids can make do with the bare minimum. "It's so nice not to have that list of things that they must have for each class," she says. "I definitely make the kids reuse anything we have in the house."
When she does shop, it's "Target or wherever they're having a sale, even ShopRite. If I have to, I go to Staples for items my kids have to have that I can't find anywhere else."
And whether that's colored markers for kindergarten, a graphing calculator for high school or a laptop for college, it's just one more thing to budget for.
"I am definitely cutting back," says Katonah's Stacey Cohen, the mother of two girls.
And so are a lot of other parents. Here are six ways to save when and where you can.
1. Needs versus wants: Your daughter wants new skinny jeans, but she needs a backpack. She wants a cute Pylones flash drive, but she really needs a calculator. What to do?
Make a list. The first thing you have to do is to figure out what you actually need. Chances are kids in elementary and middle school will already have a teacher-generated supply list, and those things are essentials.
(Although, honestly, how many glue sticks can one kid really need? Check out savings tip No. 2)
Stick to the list. No matter how much your child complains, cross those essentials off your list before venturing into the "wants" territory. Then consider extra costs that will crop up in the course of the school year, such as field trips, sports equipment, drama club dues, and yearbooks.
"If there's money left in the budget, have your child prioritize their 'wants' and let them get one or two on the list," says North Salem's Ken Mahoney, a financial planner, who has two school-aged boys.
2. Shop at home: Before you buy anything, look over your list and figure out what you already have. You'd be surprised. Last year, Wendy Wechler of Pearl River bought new supplies for all three of her sons - twins age 8, and an 11-year-old middle schooler.
This year, her closet yielded unused floppy binders, two packages of looseleaf paper, graphing paper and two entire boxes of glue sticks (see savings tip No. 1 above) - all items from last year's list. "I guess all those essentials weren't that essential," she laughs.
Even some of the things your kids did use are bound to be in good enough condition to re-use this year, such as rulers, protractors and that trusty Larousse Spanish-English dictionary.
"I definitely am taking stock of what supplies I have in-house," says Cohen, whose daughters are 12 and 15. "In previous years, I would end up buying all the items on the girls' school list without regard of what supplies we already had."
3. Incredible bulk: You do it with paper towels, water, even cleaning supplies, so why not school supplies??Take advantage of bulk discounts on pens, pencils, paper, and you'll have a ready supply to dispense as the year progresses.
4. Buy now and you will not save later: Whether it's that pair of must-have shoes, or a trendy lunch box, it's best to hold off buying some items until after school starts. Why??Once your kids arrive at school and discover everyone else has a different trendy lunch box, they are going to pester you relentlessly to trade in theirs for another model. And that's more money spent.
You can avoid this by planning out a purchase schedule. Determine what you need now, and what you can wait to buy later. Back-to-school shopping is a summerlong process at the Mahoney house. "We don't go out and do it all in one weekend," says Ken Mahoney.
Instead, his wife, Trish, shops all summer long, often going back to stores to see what's on sale.
"There is no big crescendo of shopping,"?he says. "We're out and about, and we make the best of it. It really does help us save a lot of money."
Another way the Mahoneys save: they buy clothes with school spirit. "Our school sells T-shirts and sweats as fundraisers, and ... we buy a lot. It's a win-win."
5. Think outside the pencil box: Consider new other sources for your back-to-school needs. At Futterman's Stationery in Larchmont, owner Minu Shah says the attraction of her small shop is the personal service.
"Customers come in and hand us their school list and get it filled in a half hour," says Shah, who has owned Futterman's with her husband for 23 years.
"It's a small store," she says, "but I?have everything." Shah stocks with the local school-supply lists in mind, and if she sells out of something, no worries.
"If we don't have it, we get if for you in a couple of days," she says.
And shop around. Linda Fraylick goes to ShopRite for basics, and that's good advice because it turns out, if you're not looking for a specific brand or item, supermarkets can be a quick source for pencils, pens and notebook paper, and often have better prices.
6. Shop end-of-summer sales: So it's not the latest style, but end-of-summer sales are great for stocking up on T-shirts, underwear, shorts and even jeans. ?And take advantage of buyer incentives, says Cohen. "There are currently a lot of promotions that I'm paying more attention to." For instance, Staples was offering a $10 card for every $50 you spend. And at Futterman's, most items are 10 percent off the list price.
Senin, 10 Agustus 2009
A Financial Blueprint by Ken Mahoney
A Financial Blueprint
by Ken Mahoney
When builders build a house, they start with an architect’s plan--a blueprint prepared by a trained professional. Then, as the project progresses, and as job conditions require changes to the initial design, sometimes the architect is brought back in but, often, the builder makes the necessary adjustments.
The same is true for financial plans, which I believe should be professionally prepared by an advisor who has the necessary experience and tools, then regularly reviewed and, if necessary, modified. Small adjustments can be made on the fly, but major adjustments probably deserve a consultation. Too often, once prepared, financial plans are treated as the “holy grail,” to be put away in a drawer, never again to see the light of day.
I’ve had new clients come into my office with antique financial plans, sometimes decades old that have never been updated to reflect changes in such critical areas as current assets, rates of return, life changes, inflation, and tax rates.
I remind my clients that we’ve established a good starting point, not an irrevocable program, and that, like a golf caddy, not only can I point out the financial water and sand traps, I can help you avoid them.
Perhaps picking a financial advisor doesn’t require the same level of intimate awareness that goes into selecting a life partner, but it does deserve the same care that should go into choosing an auto mechanic, doctor, lawyer, or tax preparer.
Like architects (and doctors and lawyers) financial planners often specialize in a particular area – retirement or estate planning, for example. It is essential to take some time to consider your financial goals and to keep in mind that as you grow older, as your circumstances change, as the market changes, your financial goals will change. Once you have an idea of your goals it is easier to narrow your search for a financial planner and develop a financial blueprint.
The financial planner and the blueprint should compliment your goals. The plan should allow for flexibility in the construction of your financial structure. And the planner should understand not only your goals but you. A good financial planner will understand your risk tolerance and your social preferences (perhaps you want to invest only in eco-friendly companies).
And a good financial planner will want to visit the blueprint from time to time. “Remodeling” is almost always essential to the continuity of a given structure. Taking a look at your financial blueprint from time to time to see where and whether or not improvements are necessary is fundamental to achieving your goals.
Give your financial planner a call and take a look at your financial blueprint today!
This email and its contents is neither a solicitation nor an offer to buy/sell any financial product(s). Information about financial product(s) provided herein may not be suitable for all investors. Moreover, the information contained herein has been obtained from sources believed to be reliable; its accuracy and completeness cannot be guaranteed.
by Ken Mahoney
When builders build a house, they start with an architect’s plan--a blueprint prepared by a trained professional. Then, as the project progresses, and as job conditions require changes to the initial design, sometimes the architect is brought back in but, often, the builder makes the necessary adjustments.
The same is true for financial plans, which I believe should be professionally prepared by an advisor who has the necessary experience and tools, then regularly reviewed and, if necessary, modified. Small adjustments can be made on the fly, but major adjustments probably deserve a consultation. Too often, once prepared, financial plans are treated as the “holy grail,” to be put away in a drawer, never again to see the light of day.
I’ve had new clients come into my office with antique financial plans, sometimes decades old that have never been updated to reflect changes in such critical areas as current assets, rates of return, life changes, inflation, and tax rates.
I remind my clients that we’ve established a good starting point, not an irrevocable program, and that, like a golf caddy, not only can I point out the financial water and sand traps, I can help you avoid them.
Perhaps picking a financial advisor doesn’t require the same level of intimate awareness that goes into selecting a life partner, but it does deserve the same care that should go into choosing an auto mechanic, doctor, lawyer, or tax preparer.
Like architects (and doctors and lawyers) financial planners often specialize in a particular area – retirement or estate planning, for example. It is essential to take some time to consider your financial goals and to keep in mind that as you grow older, as your circumstances change, as the market changes, your financial goals will change. Once you have an idea of your goals it is easier to narrow your search for a financial planner and develop a financial blueprint.
The financial planner and the blueprint should compliment your goals. The plan should allow for flexibility in the construction of your financial structure. And the planner should understand not only your goals but you. A good financial planner will understand your risk tolerance and your social preferences (perhaps you want to invest only in eco-friendly companies).
And a good financial planner will want to visit the blueprint from time to time. “Remodeling” is almost always essential to the continuity of a given structure. Taking a look at your financial blueprint from time to time to see where and whether or not improvements are necessary is fundamental to achieving your goals.
Give your financial planner a call and take a look at your financial blueprint today!
This email and its contents is neither a solicitation nor an offer to buy/sell any financial product(s). Information about financial product(s) provided herein may not be suitable for all investors. Moreover, the information contained herein has been obtained from sources believed to be reliable; its accuracy and completeness cannot be guaranteed.
Senin, 20 Juli 2009
As a Small Business owner, does a SEP make sense?
As a Small Business owner, does a SEP make sense?
By Ken Mahoney
A SEP is a Simplified Employee Pension retirement plan for self-employed individuals and small businesses. A SEP allows a self-employed person to contribute towards retirement or allows a small business owner to contribute towards employee retirement plans.
Eligible participants include:
• A self-employed person
• Employee of a small business who has reached the age of 21
• A self-employed person who has worked for you at least 3 of the last 5 years
• An employee of a small business who has worked for you at least 3 of the last 5 years
• A self-employed person who has received at least $450 in compensation for the year
• An employee of a small business who has received at least $450.00 in compensation for the year
Contribution maximums
Just like there are maximum contribution limitations set for IRAs, there are contribution maximums for SEPs also. Self-employed individuals or employees of a small business who are covered by a SEP can contribute 25% of their net self-employment earnings or $45,000, whichever of the two figures is lower.
Advantages of a SEP
There are several advantages for having a SEP retirement plan, which include:
• Investment earnings grow tax-deferred until distribution
• Easy to set up and operate
• You are not locked into making contributions every year
• Sole proprietors, partnerships, C and S corporations, and LLCs can establish a SEP
• Administrative costs are low
Many employers offer matching contributions to employee retirement plans. If your employer does this, try to contribute whatever the employer is willing to match—even if it is only a percentage of your contribution and not a dollar for dollar match. Essentially, this is free money to you and can significantly impact how much money you have at the time of retirement.
For example, Zoe Zoerson contributes $1,000 per year into her retirement account. Her employer matches her contributions dollar for dollar, so her employer also contributes $1,000 per year to her retirement account. Zoe is able to deduct her contribution amount from her taxes, not having to pay tax on it. Furthermore, Zoe’s $1,000 contribution and her employer’s $1,000 are invested in her account and grow as time goes by. Zoe does not have to pay income tax on the interest, dividends, capital gains, or the appreciation of her retirement account investments until she begins to withdraw the money when she turns 70½.
Matching contributions are common for 401k, 403b, and 457 plans. Sometimes the employer is only willing to make a partial match to your contributions, but you should still take advantage of this opportunity. Even if the employer contributes 50 cents for every dollar you contribute, up to the first 6 percent of your salary, it is worth it. This is free money that will compound and grow. Einstein said, “The most powerful force in the universe is compound interest.”
By Ken Mahoney
A SEP is a Simplified Employee Pension retirement plan for self-employed individuals and small businesses. A SEP allows a self-employed person to contribute towards retirement or allows a small business owner to contribute towards employee retirement plans.
Eligible participants include:
• A self-employed person
• Employee of a small business who has reached the age of 21
• A self-employed person who has worked for you at least 3 of the last 5 years
• An employee of a small business who has worked for you at least 3 of the last 5 years
• A self-employed person who has received at least $450 in compensation for the year
• An employee of a small business who has received at least $450.00 in compensation for the year
Contribution maximums
Just like there are maximum contribution limitations set for IRAs, there are contribution maximums for SEPs also. Self-employed individuals or employees of a small business who are covered by a SEP can contribute 25% of their net self-employment earnings or $45,000, whichever of the two figures is lower.
Advantages of a SEP
There are several advantages for having a SEP retirement plan, which include:
• Investment earnings grow tax-deferred until distribution
• Easy to set up and operate
• You are not locked into making contributions every year
• Sole proprietors, partnerships, C and S corporations, and LLCs can establish a SEP
• Administrative costs are low
Many employers offer matching contributions to employee retirement plans. If your employer does this, try to contribute whatever the employer is willing to match—even if it is only a percentage of your contribution and not a dollar for dollar match. Essentially, this is free money to you and can significantly impact how much money you have at the time of retirement.
For example, Zoe Zoerson contributes $1,000 per year into her retirement account. Her employer matches her contributions dollar for dollar, so her employer also contributes $1,000 per year to her retirement account. Zoe is able to deduct her contribution amount from her taxes, not having to pay tax on it. Furthermore, Zoe’s $1,000 contribution and her employer’s $1,000 are invested in her account and grow as time goes by. Zoe does not have to pay income tax on the interest, dividends, capital gains, or the appreciation of her retirement account investments until she begins to withdraw the money when she turns 70½.
Matching contributions are common for 401k, 403b, and 457 plans. Sometimes the employer is only willing to make a partial match to your contributions, but you should still take advantage of this opportunity. Even if the employer contributes 50 cents for every dollar you contribute, up to the first 6 percent of your salary, it is worth it. This is free money that will compound and grow. Einstein said, “The most powerful force in the universe is compound interest.”
Rabu, 08 Juli 2009
How to help your 401k beat volatility by Ken Mahoney
How to help your 401k beat volatility by Ken Mahoney
While there is no surefire formula for protecting the investments in your 401(k), there are some things you can do to help your 401(k) survive when the market is on a rollercoaster cycle.
First, keep a close eye on how the current investments in your 401(k) are performing. By paying attention to what is happening in your portfolio, you can research, diversify, and re-balance your investments to create growth - even in a volatile market.
When the market is down, as we have witnessed recently, it is an opportune time to take advantage of rebalancing and diversifying your portfolio. Rebalancing is a way of changing the allocations of the funds in your portfolio to meet your original goals. For example, if your portfolio was fifty percent stocks and fifty percent bonds but the stock market was very volatile you might rebalance your portfolio to be eighty percent bonds and twenty percent stocks. Not only will you want to consider the allocation of these types of investments you will also want to consider the allocation with in a type of investment. How well are growth versus value stocks, large cap versus midcap versus small cap stocks allocated in your portfolio? To rebalance, you will need to sell enough of the investments that are above your original goal and buy enough of the investments that are below your original goal.
While it is important to look at the investments in your portfolio, it is also important to review the investment options available. Research the track record of each investment and decide which one(s) fit your risk tolerance and investment style. Visit www.stockcharts.com to view historical stock market charts that plot the progress of the stock market for the last few decades. Overall, those who invest in the stock market see long-term growth, but that doesn’t mean you don’t have to pay attention to what is going on with your investments.
Of course all of this may have you confused if you have a 401(k) administrator who manages your account. The administrator is a fiduciary that is responsible for watching and adjusting the investment options offered to you and other 401(k) holders. You, however, can choose from the investment options offered to create your own portfolio. This is why it is important for you to pay attention to how your investments are performing, so you can make changes and adjustments when necessary.
And remember to continue to contribute to your 401(k). Because you plan to use these monies in your retirement remember each contributed dollar reduces your taxable income. And try to ensure that your contributions are in line with your investment goals.
Last but not least seek out the assistance of your plan’s administrator, your personal financial advisor or the website for your plan. Their knowledge and your own research will help you keep a handle on protecting your portfolio during both stable and unstable times.
While there is no surefire formula for protecting the investments in your 401(k), there are some things you can do to help your 401(k) survive when the market is on a rollercoaster cycle.
First, keep a close eye on how the current investments in your 401(k) are performing. By paying attention to what is happening in your portfolio, you can research, diversify, and re-balance your investments to create growth - even in a volatile market.
When the market is down, as we have witnessed recently, it is an opportune time to take advantage of rebalancing and diversifying your portfolio. Rebalancing is a way of changing the allocations of the funds in your portfolio to meet your original goals. For example, if your portfolio was fifty percent stocks and fifty percent bonds but the stock market was very volatile you might rebalance your portfolio to be eighty percent bonds and twenty percent stocks. Not only will you want to consider the allocation of these types of investments you will also want to consider the allocation with in a type of investment. How well are growth versus value stocks, large cap versus midcap versus small cap stocks allocated in your portfolio? To rebalance, you will need to sell enough of the investments that are above your original goal and buy enough of the investments that are below your original goal.
While it is important to look at the investments in your portfolio, it is also important to review the investment options available. Research the track record of each investment and decide which one(s) fit your risk tolerance and investment style. Visit www.stockcharts.com to view historical stock market charts that plot the progress of the stock market for the last few decades. Overall, those who invest in the stock market see long-term growth, but that doesn’t mean you don’t have to pay attention to what is going on with your investments.
Of course all of this may have you confused if you have a 401(k) administrator who manages your account. The administrator is a fiduciary that is responsible for watching and adjusting the investment options offered to you and other 401(k) holders. You, however, can choose from the investment options offered to create your own portfolio. This is why it is important for you to pay attention to how your investments are performing, so you can make changes and adjustments when necessary.
And remember to continue to contribute to your 401(k). Because you plan to use these monies in your retirement remember each contributed dollar reduces your taxable income. And try to ensure that your contributions are in line with your investment goals.
Last but not least seek out the assistance of your plan’s administrator, your personal financial advisor or the website for your plan. Their knowledge and your own research will help you keep a handle on protecting your portfolio during both stable and unstable times.
Senin, 29 Juni 2009
Ken Mahoney's interview with Jim Schier, who manages over 1 Billion Dollars
July 2009
Ken Mahoney’s Q&A with Jim Schier, CFA Portfolio Manager, RydexSGI Mid Cap Value Fund
Ken: Why do you like Mid Cap Value versus other asset classes?
Jim: Value stocks are low expectation stocks that offer better downside risk protection. Mid-caps are generally representative of companies that are large enough to have some scale and competitive advantage yet small enough to have above average growth opportunities.
Ken: What are some opportunities that you are looking at?
Jim: While we do not comment on companies that we are currently researching or working a ticket for, recent additions have been select electric utilities that are priced at a discount to peers and have above average growth via investments in higher return Federal Energy Regulatory Commission (FERC) regulated interstate transmission projects that tie wind farms to an interstate grid. We've also
Ken: How do you pick stocks for the portfolio?
Jim: The ideal stock is priced at a discount to the market and lower than usual versus its peers or has a history of being inexpensively priced for transitory and correctable reasons. The company also would have sufficient competitive stature to have strategic attraction and staying power in their industry. The company would have the ability to earn higher return on capital in the future.
Ken: Is there an area that you are over weighing or under weighing? And why?
Jim: Historically, we have had difficulty finding companies that appear to offer the ability to earn higher return on capital in financial and consumer discretionary. Therefore, we are underweight in those sectors.
Investors should consider the investment objectives, risks, and charges and expenses of the mutual funds available under the RydexSGI Funds carefully before investing. You may obtain a prospectus that contains this and other information about the mutual funds by calling 800.820.0888. You should read the prospectus carefully before investing. Investing in mutual funds involves risk and there is no guarantee of investment results.
The opinions expressed are those of Jim Schier, not those of RydexSGI or its affiliates. This information is subject to change at any time, based on market and other conditions and should not be construed as a recommendation of any specific security or strategy.
Investments in small and/or mid-sized company securities may present additional risks such as less predictable earnings, higher volatility and less liquidity than larger, more established companies.
Rydex Distributors, Inc. distributes the Rydex funds, which are managed by Rydex Investments, and Security Distributors, Inc. distributes the Security funds, which are managed by Security Global Investors. Rydex Investments, Security Global Investors, Rydex Distributors, Inc., and Security Distributors, Inc. are subsidiaries of Security Benefit Corporation (Security Benefit). Security Global Investors (Security Global Investors, LLC and Security Investors, LLC) and Rydex Investments (PADCO Advisors, Inc. and PADCO Advisors II, Inc.) make up the investment advisory arm of Security Benefit.
The funds are distributed by Rydex Distributors, Inc. (RDI). Security Global InvestorsSM is the investment advisory arm of Security Benefit Corporation (Security Benefit). Security Global Investors consists of Security Global Investors, LLC, Security Investors, LLC and Rydex Investments. Rydex Investments is the primary business name for PADCO Advisors, Inc. and PADCO Advisors II, Inc. SGI and RDI are both affiliates and are subsidiaries of Security Benefit.
This newsletter and its contents is neither a solicitation nor an offer to buy/sell any financial product(s). Information about financial product(s) provided herein may not be suitable for all investors. Moreover, the information contained herein has been obtained from sources believed to be reliable; its accuracy and completeness cannot be guaranteed.
Ken Mahoney’s Q&A with Jim Schier, CFA Portfolio Manager, RydexSGI Mid Cap Value Fund
Ken: Why do you like Mid Cap Value versus other asset classes?
Jim: Value stocks are low expectation stocks that offer better downside risk protection. Mid-caps are generally representative of companies that are large enough to have some scale and competitive advantage yet small enough to have above average growth opportunities.
Ken: What are some opportunities that you are looking at?
Jim: While we do not comment on companies that we are currently researching or working a ticket for, recent additions have been select electric utilities that are priced at a discount to peers and have above average growth via investments in higher return Federal Energy Regulatory Commission (FERC) regulated interstate transmission projects that tie wind farms to an interstate grid. We've also
Ken: How do you pick stocks for the portfolio?
Jim: The ideal stock is priced at a discount to the market and lower than usual versus its peers or has a history of being inexpensively priced for transitory and correctable reasons. The company also would have sufficient competitive stature to have strategic attraction and staying power in their industry. The company would have the ability to earn higher return on capital in the future.
Ken: Is there an area that you are over weighing or under weighing? And why?
Jim: Historically, we have had difficulty finding companies that appear to offer the ability to earn higher return on capital in financial and consumer discretionary. Therefore, we are underweight in those sectors.
Investors should consider the investment objectives, risks, and charges and expenses of the mutual funds available under the RydexSGI Funds carefully before investing. You may obtain a prospectus that contains this and other information about the mutual funds by calling 800.820.0888. You should read the prospectus carefully before investing. Investing in mutual funds involves risk and there is no guarantee of investment results.
The opinions expressed are those of Jim Schier, not those of RydexSGI or its affiliates. This information is subject to change at any time, based on market and other conditions and should not be construed as a recommendation of any specific security or strategy.
Investments in small and/or mid-sized company securities may present additional risks such as less predictable earnings, higher volatility and less liquidity than larger, more established companies.
Rydex Distributors, Inc. distributes the Rydex funds, which are managed by Rydex Investments, and Security Distributors, Inc. distributes the Security funds, which are managed by Security Global Investors. Rydex Investments, Security Global Investors, Rydex Distributors, Inc., and Security Distributors, Inc. are subsidiaries of Security Benefit Corporation (Security Benefit). Security Global Investors (Security Global Investors, LLC and Security Investors, LLC) and Rydex Investments (PADCO Advisors, Inc. and PADCO Advisors II, Inc.) make up the investment advisory arm of Security Benefit.
The funds are distributed by Rydex Distributors, Inc. (RDI). Security Global InvestorsSM is the investment advisory arm of Security Benefit Corporation (Security Benefit). Security Global Investors consists of Security Global Investors, LLC, Security Investors, LLC and Rydex Investments. Rydex Investments is the primary business name for PADCO Advisors, Inc. and PADCO Advisors II, Inc. SGI and RDI are both affiliates and are subsidiaries of Security Benefit.
This newsletter and its contents is neither a solicitation nor an offer to buy/sell any financial product(s). Information about financial product(s) provided herein may not be suitable for all investors. Moreover, the information contained herein has been obtained from sources believed to be reliable; its accuracy and completeness cannot be guaranteed.
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