I retired in April and I’m 65 and single. I sold $2000 worth of things on Facebook Marketplace since my divorce 2 years ago. I’m sure I could sell that much more. People will buy anything. I just subscribed keep up the great work and thank you for being so honest about your daughter. I am sure you’re helping a lot of people.
Great video! Sinking funds are a game changer. I use them for several things such as car tags, my recertification for my degree, Christmas, etc. you just take the amount you need and divide it by how many months you have until it’s due. Then you put that amount away every month in a sinking fund account. I also have sinking funds that don’t have specific dates like for a furnace. Those kind you can save whatever you can afford each month. I’m interested in what the financial planner has to say. I’ve wanted to look into one but it seems intimidating to me for some reason.
Hey Melinda…. Great video!! It was awesome meeting you this weekend and great to collaborate on a couple of videos. Thanks again for the shout out and keep the great content coming!!!
Thanks for another budget video. I’d love more details. Whatever you are comfortable with sharing. Income $ vs expense $. Which items were over estimated or what surprises you had. I like to see lists even on a white board. Maybe your budget line items with a green check if under and a red X if over for the month.
Thanks as always for your videos Melinda! You are terrific! Why not just create an excel spreadsheet- put revenues and budget them - then put expenses and budget that. Create a second column with actual expenses and you can compare against the budget. and create a new sheet for every month. I have been doing this for over 20 years and it allows me to budget and then track my expenses by category. It has helped considerably. I also have a separate account that I call escrow. I list out all of my annual expenses such as car insurance, property tax, and annual fees like license and membership fees. I divide it by 24 and every pay check I put that into escrow. When one of those bills come in, I have the money already. No surprises for me!
I’ve often wondered what a financial advisor would tell me beyond what we can already see for ourselves; money in, money out, save/invest. Stay out of debt. You know the common sense stuff. What’s left? I would love to know what I don’t know or what else I should think about that I may not even be considering. I’m serious. Growing up we did not talk about finances. I hear folks on videos talk about tax strategies…..Income/pension is taxed, future withdrawals will be taxed. I see no way around paying those taxes, therefore, I see no way to save on or adjust my taxes. I don’t think loop holes exist for us stuck in the middle. I think this late in the game (just retired last month) we work with what we have. Live life, help the kids along the way and have some fun with what is left afterwards 😊
Look into saving into sinking funds. This helps with once or twice a year expenses and I have about 10 categories. I have some with fixed expenses or some just for big medical or general repairs categories.
@@lynnhensley4326 Oh thank you! I have been researching sinking funds and it’s great to know you have 10! I thought that might be too many but it makes sense. I feel like I always wonder what’s “right” or “wrong” and I don’t think there is that way to categorize things.
Another great video, Melinda. Whatever you choose to share about YOUR budget. it may help to have it written on a White board for your end of month videos. Would you mind sharing with us the name of your budget group and is it on TH-cam or Facebook? Take care and enjoy yourself!
Sinking Funds are savings earmarked for specific items such as can maintenance, home maintenance, property taxes, etc.. You don't have to put them all in separate accounts, but you do need to keep track of each fund's balance. Dave Ramsey calls those "surprise" funds a snowflake and advises to apply them to debt.
I like notebooks for my planning & budgeting. We are planning on retiring sometime after 3 years from now. At that time we will reevaluate and make some decisions. It’s fun though- thinking about what we might do after retirement. Right now our trajectory is debt payoff and I’m pretty excited about that!
I think it’s okay to not be specific about your budget numbers. You’re smart to pay off your car. We paid ours off early when we had loans and there is a lot of freedom when you don’t have payments.
Sinking funds are like little savings accounts that are for planned quarterly, semiannual, and annual expenses. For example I have one for car insurance, Christmas, mortgage escrow shortage, etc. Of course, yours may be different. I figure out how much I will need and divide that amount by the number of months until it is due. For example, if something will cost $600 in 12 months, I save $50 a month into a high yield savings account. Ally has a “buckets” feature you can use to fund each sinking fund. An emergency fund is for unknown/unplanned expenses. I’m glad you’re following a budget group. Doing that is very helpful! It takes 3-4 months to get your budget figured out. You’re on the right track! ❤
Ally bank has something called Buckets. They are virtual envelopes accounts. We use these to accumulate savings for vacation, emergencies, training. We both look at the buckets once a quarter. Works great for extra income I.e. bonus, overtime etc.
Glad I and the wife have federal pensions ( with COLA's) which covers all of our expenses including health insurance, we also both have SS ( she took it at 63.8), I'm waiting until FRA, not touching IRA/TSP except for Roth conversions.
Hi Melissa, I think people need to budget according to what their priorities are. Buying lattes/eating out, might be a non negotiable for some people. If so, they budget for it and cut other items that may not be as important to them. I’m with you, coffee several times a week and eating out is expensive and I would rather use that money elsewhere or save it. Spending $30 per week adds up to $120 per month or $1,140 per year. I do have a budget for eating out, but I try to not use it. Usually there are funds left and I will sweep that into my buffer account. Thanks for the update!
Would the financial planner talk a little bit about the Windfall Elimination Act? I will have a Texas teacher's pension. This will reduce my Social Security and I would like to understand it better. I think it will also affect my ability to collect my husband's Social Security after he passes away.
You mentioned your spending/budget is so much better than expected. Could you share how? Maybe your groceries were less than expected? Maybe you're spending less on gasoline? Maybe you're finding you don't need to buy as many clothes? Without including details, could you share in what ways you're finding your spending is less than expected?
QUESTION- can a teacher retiring at 55 use HSA to pay health insurance premiums until 57 when I can get insurance at rate of current employees? I heard the you can’t use it for premiums but didn’t know if teachers who are allowed to retire at 55 could do. Thanks!!!
Should we take the full amount 401k $ and invest ourselves or leave it where it’s at through work and just withdrawal monthly or yearly when retired if we need it?
I have a thrift account (will retired in 2 years), my husband (still working) (almost 62 years old) has a 401k, at what age should we start taking $ from it? That is what Id be most interested in asking a financial planner.... Appreciate your videos!
To answer your 401k question… you should not take the money out until you need it! Let it grow as long as you can…if you do take some… An example is if you need 30k a year, you will take that out of his 401k and pay taxes on that as “income”…unless it’s a Roth account. According to current regulations, you generally MUST start taking Required Minimum Distributions (RMDs) from retirement accounts such as IRAs, 401(k)s, and other plans when you reach age 72 (73 if you reach age 72 in 2023 or later) starting in 2023. It is advisable to consult with a financial advisor or tax professional for personalized guidance on RMD rules and requirements based on individual circumstances. Hope this helps!!
How do I find a planner? I don’t want to pay giant fees. I’m a teacher planning to retire July 1, 2024. Reduced pension… 30 years in… plan to work elsewhere… age 57.
Talk to all of your teacher friends and ask them who they use. Teachers are a demographic group that shows up in the "unsexy" millionaires next door lists.
For the financial planner, not to be political, but I don't doubt the unfortunate reelection of Trump is not going to be good for our investments. Brief emergency crash course on how to protect this money we worked our whole lives for. From offshore accounts to under the mattress to trusts, please.
Hey just found your channel Godbless! Wanted to encourage you. Enjoying your content.
@@cynthiawooten9204 Thank you so much. I had to take a break over the holidays. Back at it!
I retired in April and I’m 65 and single. I sold $2000 worth of things on Facebook Marketplace since my divorce 2 years ago. I’m sure I could sell that much more. People will buy anything. I just subscribed keep up the great work and thank you for being so honest about your daughter. I am sure you’re helping a lot of people.
This is great. Thank you for creating this channel.
Great video! Sinking funds are a game changer. I use them for several things such as car tags, my recertification for my degree, Christmas, etc. you just take the amount you need and divide it by how many months you have until it’s due. Then you put that amount away every month in a sinking fund account. I also have sinking funds that don’t have specific dates like for a furnace. Those kind you can save whatever you can afford each month. I’m interested in what the financial planner has to say. I’ve wanted to look into one but it seems intimidating to me for some reason.
Great advice.
@ thank you☺️
Hey Melinda…. Great video!! It was awesome meeting you this weekend and great to collaborate on a couple of videos. Thanks again for the shout out and keep the great content coming!!!
@@beforeitstoolate2023 Thanks for inviting me! Can’t wait to see you again!
Thanks for another budget video. I’d love more details. Whatever you are comfortable with sharing. Income $ vs expense $. Which items were over estimated or what surprises you had. I like to see lists even on a white board. Maybe your budget line items with a green check if under and a red X if over for the month.
Thanks as always for your videos Melinda! You are terrific! Why not just create an excel spreadsheet- put revenues and budget them - then put expenses and budget that. Create a second column with actual expenses and you can compare against the budget. and create a new sheet for every month. I have been doing this for over 20 years and it allows me to budget and then track my expenses by category. It has helped considerably. I also have a separate account that I call escrow. I list out all of my annual expenses such as car insurance, property tax, and annual fees like license and membership fees. I divide it by 24 and every pay check I put that into escrow. When one of those bills come in, I have the money already. No surprises for me!
@@2025Retiree Excellent advice! I do better on paper but tracking everything has helped a ton!
I’ve often wondered what a financial advisor would tell me beyond what we can already see for ourselves; money in, money out, save/invest. Stay out of debt. You know the common sense stuff. What’s left? I would love to know what I don’t know or what else I should think about that I may not even be considering. I’m serious. Growing up we did not talk about finances. I hear folks on videos talk about tax strategies…..Income/pension is taxed, future withdrawals will be taxed. I see no way around paying those taxes, therefore, I see no way to save on or adjust my taxes. I don’t think loop holes exist for us stuck in the middle. I think this late in the game (just retired last month) we work with what we have. Live life, help the kids along the way and have some fun with what is left afterwards 😊
Look into saving into sinking funds. This helps with once or twice a year expenses and I have about 10 categories. I have some with fixed expenses or some just for big medical or general repairs categories.
@@lynnhensley4326 Oh thank you! I have been researching sinking funds and it’s great to know you have 10! I thought that might be too many but it makes sense. I feel like I always wonder what’s “right” or “wrong” and I don’t think there is that way to categorize things.
Another great video, Melinda. Whatever you choose to share about YOUR budget. it may help to have it written on a White board for your end of month videos. Would you mind sharing with us the name of your budget group and is it on TH-cam or Facebook? Take care and enjoy yourself!
Sinking Funds are savings earmarked for specific items such as can maintenance, home maintenance, property taxes, etc.. You don't have to put them all in separate accounts, but you do need to keep track of each fund's balance. Dave Ramsey calls those "surprise" funds a snowflake and advises to apply them to debt.
I like notebooks for my planning & budgeting. We are planning on retiring sometime after 3 years from now. At that time we will reevaluate and make some decisions. It’s fun though- thinking about what we might do after retirement. Right now our trajectory is debt payoff and I’m pretty excited about that!
I am soooooo glad you are thinking farther ahead than I did:)
I think it’s okay to not be specific about your budget numbers. You’re smart to pay off your car. We paid ours off early when we had loans and there is a lot of freedom when you don’t have payments.
Sinking funds are like little savings accounts that are for planned quarterly, semiannual, and annual expenses. For example I have one for car insurance, Christmas, mortgage escrow shortage, etc. Of course, yours may be different. I figure out how much I will need and divide that amount by the number of months until it is due. For example, if something will cost $600 in 12 months, I save $50 a month into a high yield savings account. Ally has a “buckets” feature you can use to fund each sinking fund. An emergency fund is for unknown/unplanned expenses. I’m glad you’re following a budget group. Doing that is very helpful! It takes 3-4 months to get your budget figured out. You’re on the right track! ❤
Ally bank has something called Buckets. They are virtual envelopes accounts. We use these to accumulate savings for vacation, emergencies, training. We both look at the buckets once a quarter. Works great for extra income I.e. bonus, overtime etc.
@@WayneMarcy Yes! That is what I am looking at right now. Thank you!
Glad I and the wife have federal pensions ( with COLA's) which covers all of our expenses including health insurance, we also both have SS ( she took it at 63.8), I'm waiting until FRA, not touching IRA/TSP except for Roth conversions.
For the financial planner, in general, what order should we start using our retirement plans?
Yes! I used to dread opening the mail knowing I didn't have the $
Have a budget and stick to it. Live below your means
Hi Melissa, I think people need to budget according to what their priorities are. Buying lattes/eating out, might be a non negotiable for some people. If so, they budget for it and cut other items that may not be as important to them. I’m with you, coffee several times a week and eating out is expensive and I would rather use that money elsewhere or save it. Spending $30 per week adds up to $120 per month or $1,140 per year. I do have a budget for eating out, but I try to not use it. Usually there are funds left and I will sweep that into my buffer account. Thanks for the update!
Would the financial planner talk a little bit about the Windfall Elimination Act? I will have a Texas teacher's pension. This will reduce my Social Security and I would like to understand it better. I think it will also affect my ability to collect my husband's Social Security after he passes away.
You mentioned your spending/budget is so much better than expected. Could you share how? Maybe your groceries were less than expected? Maybe you're spending less on gasoline? Maybe you're finding you don't need to buy as many clothes? Without including details, could you share in what ways you're finding your spending is less than expected?
Yes, I will talk about this next time too. Less on groceries and my "no spend" month taught me all the dumb stuff I was spending money on.
QUESTION- can a teacher retiring at 55 use HSA to pay health insurance premiums until 57 when I can get insurance at rate of current employees? I heard the you can’t use it for premiums but didn’t know if teachers who are allowed to retire at 55 could do. Thanks!!!
I will ask this question. We recorded one episode and I couldn't get through all the questions.
Should we take the full amount 401k $ and invest ourselves or leave it where it’s at through work and just withdrawal monthly or yearly when retired if we need it?
I have a thrift account (will retired in 2 years), my husband (still working) (almost 62 years old) has a 401k, at what age should we start taking $ from it? That is what Id be most interested in asking a financial planner.... Appreciate your videos!
To answer your 401k question… you should not take the money out until you need it! Let it grow as long as you can…if you do take some… An example is if you need 30k a year, you will take that out of his 401k and pay taxes on that as “income”…unless it’s a Roth account.
According to current regulations, you generally MUST start taking Required Minimum Distributions (RMDs) from retirement accounts such as IRAs, 401(k)s, and other plans when you reach age 72 (73 if you reach age 72 in 2023 or later) starting in 2023. It is advisable to consult with a financial advisor or tax professional for personalized guidance on RMD rules and requirements based on individual circumstances.
Hope this helps!!
How do I find a planner? I don’t want to pay giant fees. I’m a teacher planning to retire July 1, 2024. Reduced pension… 30 years in… plan to work elsewhere… age 57.
💖💖💖
Use a white board a 3 month break down each area you spend would help you
Agree
Talk to all of your teacher friends and ask them who they use. Teachers are a demographic group that shows up in the "unsexy" millionaires next door lists.
Hi, so you’re not completely retired. You still subbing?
Dental school for dental work or new dentist and dental ins
For the financial planner, not to be political, but I don't doubt the unfortunate reelection of Trump is not going to be good for our investments. Brief emergency crash course on how to protect this money we worked our whole lives for. From offshore accounts to under the mattress to trusts, please.
Wrong! Stock market up already!!!
I fear you may be correct. Our investments may tank, but a carton of eggs might be cheaper, while other costs skyrocket