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  • Buying Stock In The…Packers?!

    December 6, 2011

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    Jon

    The entire concept of owning part of an NFL team sounds pretty cool, until you realize it’s the Green Bay Packers.  Having lived in the Chicago area all my life I’m still surviving off the fumes of the Super Bowl Shuffle.  Which should offer some explanation toward my anti-Packer stance.  That said, if the Bears offered a similar gimmick stock offering, I might think twice about buying shares, until I saw the price.

    The $250 Super Fans Dream

    What’s the #1 item on all the Packer super fans Christmas lists this year?  Yep, stock in the team and starting today it’s on sale for the low, low price of $250 per share plus $25 shipping and handling. Limit 200 shares per customer.

    There’s something to say about the timing of all this.  Certainly the shares should sell well.  As much as I hate myself for saying it, the team’s actually playing better than last year.  But the fact the shares are on sale right before the holidays should give you an idea of what they actually are.  Just a good gift.  Something to hang on the wall and point to when your Packer friends come over. Continue Reading…


  • Savings Stuck On Pause? Pay Yourself First

    December 2, 2011

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    Jon

    Automatic SavingsWhen it comes to saving money, sometimes it can be easily overlooked in these debt focused times. Deservedly so, paying down debt has its importance.  Typically, with any budget, money is set aside each month for all the bills and other monthly costs.  Leaving savings to sometimes take a backseat to those credit card bills or student loans.  Which only puts off those savings goals another month. Before long that vacation fund is four months short and sitting on a beach in December is looking very unlikely.

    There’s a reason company retirement plans tend to work well from a savings perspective.  How many 401k deposits can you miss when the money is taken out before you get paid.  It’s basically an automatic bill pay for your retirement account.  As long as you show up for work, your retirement savings gets it’s monthly payment.

    A Lesson From The Past

    As a kid getting any amount of money is a big deal.  It can be hard to grasp what things cost and how it relates to the value of the dollar.  So, even getting a few quarters can be exciting.  At least it was when I was growing up.  A quarter back then got me a game of Pac-Man or a bunch of candy. Continue Reading…


  • We Need U.S. Debt, Just Not All Of It

    November 22, 2011

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    Jon

    U.S. DebtThere’s been a singular view that has swept through the nation over the past few months since the debt debacle back in August.  Apparently the U.S. has too much debt.  The U.S. government currently has over $15 trillion in outstanding debt obligations.  Some view it as excessive, wanting it paid down to a reasonable level.  Others believe it should be eliminated entirely.

    This isn’t the first time that the U.S. debt has become a political hot topic.  The last time was back in 1992, when then presidential hopeful, Ross Perot made eliminating the deficit a major campaign issue.  Clinton eventually was elected, signed the Deficit Reduction Act of 1993, and all was better.  For the most part, until you fast forward to today and it’s playing out again.

    A Super Committee was set up to solve the debt problem.  It failed, not surprisingly.  Putting debt reduction as a major talking point in the next election cycle.  On a side note to the government, don’t name a committee “Super” if it’s bound to fail.  It tends to destroy all meaning of the word.  Anyways, the committee’s failure enacts forced spending cuts starting in 2013.  Being that far out, they’ll never see the light of day.  But enough about politics.

    Another way of looking at this debt issue, there is currently about $15 trillion invested in U.S. debt.  Used as a safe haven for money, backed by the full faith and credit of the United States.  Which is the biggest argument that the debt level is fine for now.  Continue Reading…


  • Want To Invest In Stocks? Consider This First

    November 15, 2011

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    Jon

    Investing In StocksSo you’re thinking about investing in stocks?  There’s a lot to consider before finally taking the plunge into individual stocks.  Additional risk factors, new learning curve, costs involved, liquidity and where to start, are just a few of the concerns.  But when you finally boil it all down, the biggest thing to consider before buying stocks is time.  Do you have the time?  There’s a finite number of hours each week.  Are you willing to give up some of them to manage your money?

    Investing in stocks is more than just getting that “hot stock tip” from your neighbor or friend.  You may be able to get by on luck a couple times betting on stocks this way, but it usually turns out bad.  In reality it involves keeping up with all the news, ratings changes, and earnings reports.  And that’s just the day to day stuff.  There’s also the initial research that needs to be done with stock screeners, research sites, financial statements, balance sheets, and a whole list of other tools.  So you still want to invest in stocks? Continue Reading…


  • The Benefits Of Tax Free Bonds

    November 10, 2011

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    Jon

    Tax free bonds can be a great investment that lowers your tax obligations while still maintaining a fixed passive income.  These bonds generally come in the form of municipal bonds or Treasury bonds.  The tax advantage comes into play on the interest earned.  Which can be exempt from your state, local, or federal income tax.  Making tax free bonds a favorite investment among retirees and individuals in higher tax brackets.

    Municipal Bonds

    Municipal bonds are bonds issued by states, cities, and counties for funds to build public projects.  That new school, hospital or highway being built in your area is probably funded through a municipal bond.  The local government gets the funding up front which usually gets the project started and finished sooner.

    The interest income from tax free municipal bonds is exempt from federal income tax.  Depending on the state you live in, it may also be exempt from state and local taxes, too.  Generally, the higher your tax bracket the more benefit you’ll get from a tax free municipal bond.  One thing to note, you’ll get no added tax benefit by holding these bonds in an IRA or retirement plan.  Since the IRA or retirement plan already offers tax exempt status, you’re better off looking into taxable municipal or corporate bonds. Continue Reading…


  • 401k Contribution Limits Finally Increased For 2012

    November 8, 2011

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    Jon

    Starting in 2012 your 401k contribution limits will rise, thanks to inflation.  Every year the IRS is required to calculate cost of living adjustments if certain CPI (Consumer Price Index) thresholds are met.  The last time this adjustment happened was three ago heading into the 2009 tax year.  Since then the CPI has remained low enough to not trigger any cost of living adjustments until now.

    Maximum 401k Contribution Limits

    If you save for retirement through a 401k the maximum amount you can contribute will be higher in  2012.  The new maximum contribution limits will also apply to 403b and most 457 plans.

    The maximum contribution limits for 401k retirement plans will be $17,000 for 2012.  Slightly higher than the 2011 401k contribution limits of $16,500.  This amounts to an additional $500 ($41.67 per month).  Which doesn’t seem like much, but every little bit counts when it comes to retirement.  This new contribution limit applies to Roth 401k plans as well.

    If you’re in the situation of having multiple 401k plans from several employers, this contribution limit change is not on a per plan basis.  So if you have two jobs both providing a 401(k), you’ll only be able to contribute a maximum of $17,000 between the two plans. Continue Reading…


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