Your Safe Money Show Money Advice for Newlyweds 6 18 16

Highlights of Your Safe Money Show for the week of June 18th

June is a big month for weddings and I have thoughts about paying for a wedding and money advice for newlyweds.

Also I have found some financial guidelines that for most people, can help them understand finances better

Compounded Interest

Albert Einstein was once quoted as saying “Compound interest is the eighth wonder of the world. He who understands it, earns it ... he who doesn't ... pays it.” To understand the quote we need to get the definition of “compound interest”. It is interest paid both on the original amount of money and on the interest it has already earned. Simple interest, on the other hand, is the interest on the original principle only.

 Compound interest is applied to both loans and deposit accounts. Compound interest essentially means "interest on the interest" and is the reason many investors are so successful. 

You want savings to compound as often as possible. It's better if you compound quarterly rather than annually when you're saving money. If you're borrowing, just the opposite applies. Compound interest and time go hand in hand. Because as time goes on you will keep collecting interest and you can reinvest that interest and get more interest. That is the magic that is compounding interest! The great thing about compounding is that it doesn't require additional work on your part: you just sit back and watch your money grow.  

Highlights for June 11 Your Safe Money Show

Coming up on this week's Your Safe Money Show:

Federal regulators from the Consumer Financial Protection Bureau recently proposed new rules in regards to payday lenders to protect borrowers. I’ll explain what this means for consumers.

You’d think that our government would have the latest computer technology running from nuclear weapons to Social Security, but guess what, it’s just the opposite. You won’t believe what a recent report found.

And it is graduation time! Open houses are in full swing and I will share ways that graduates can achieve financial freedom.

Roth IRA's

Did you know that the Roth IRA was established by the Taxpayer Relief Act of 1997 and named for its chief legislative sponsor, Senator William Roth of Delaware? Traditional IRA’s had been around since 1974 but this new investment vehicle was different.

 A Roth individual retirement plan or Roth IRA is a savings account that lets qualified individuals invest after-tax money for retirement. Earnings on the contributions are tax free if withdrawn after retirement age of 59 1/2, if the money is kept in the account for five consecutive years. That makes Roth IRAs ideal savings vehicles for young, lower-income workers who won’t miss the upfront tax deduction and who will benefit from decades of tax-free, compounded growth. Roth IRAs also appeal to anyone who wants to minimize their tax bite in retirement as well as older, wealthier taxpayers who want to leave assets to their heirs tax-free. Is a Roth IRA right for you? 

Your Safe Money Show Replacing SS Numbers on Medicare cards

Highlights for Your Safe Money Show for the week of June 4th

The Pew Research people recently said that 18 to 34 year adult children (millennials), for the first time in history, are still living with their parents more than any other living arrangement. What does that mean for them and their parents in the long run? That's one of the topics on this week's Your Safe Money Show.

The push is on to replace Social Security numbers on Medicare cards, we'll look at how and when that will happen.

The Federal Reserve's 2015 report is out on U.S. household economic well-being, I think you'll be surprised what that report found.