Personal financial planning should be a requirement in college curriculums

Just a few decades ago, personal financial planning was something only geeks and wealthy people did. Today, everyone knows it's a necessary talent we should all acquire. Most of the major television networks now have some kind of regular programming devoted to the topic of our money and individual financial planning. These segments are educational, but a great many newborn boomers are truly lacking in an effective personal financial program that will cover them in aged age. So now they're playing catch-up, trying to mend those years of neglect. This being the case, it makes sense that our kids should be exposed to the basics of personal financial planning while they're still in high school, so they don't go down that same road.

When you're young, retirement is the last thing on your mind. Reaching that stage of life may as well be generations away in young people's mind. Yet, that day will come. If financial planning were a required course in high school, at least the concepts will make more sense. Doubtless, the modalities will change in their lifetime, but imparting a basic understanding of the current Roth-IRAS, 401K plans and mutual fund portfolios will convey the concept and benefits of these investment models.

Such a course might present case studies which show the results of various avenues of personal financial planning begun at various points in life. For example, three case studies based on persons making identical incomes, but implemented at the age of 30, 40 and 50 could be eye-opening lessons. Other case studies might examine the results of weighting the percentages of income invested in a balance of investment automobiles.

Other subjects might include the Dow Theory and historical trends of the stock market, what day trading is and how successful such investors fare statistically. The idea wouldn't be to make the students specialists in personal financial planning, but to make them aware that making such a plan will impact their possessions in a tragic way. Who knows that Social Security benefits will even be an option for these young folks, come retirement.

In addition to these more complex areas of study, students could learn more about the everyday issues they'll soon face in the real world. For example, these kids will eventually purchase their own vehicle. There are lots of ways to approach purchasing a car. A lesson could show the financial outcomes of saving and paying cash versus financing and paying interest. How about financing a college education? Some recent college grads will be paying off those loans for many years. This information should not serve to discourage the college bound student, but to encourage the examination of options. Grants, scholarships and two-year stints at junior colleges can make a huge difference in their financial situation after graduation.

Perhaps some clever educator should suggest a pilot program on personal financial planning in their school. This success might spread!

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Fast retirement plans

There are more and more statistics being released annually about the number of retired persons that we're going to have in our country within the next few years. Of course this has to do with the infant boomers reaching the age of retirement. Many folks retire from their careers at any early age and then take a part-time job doing something else. Most folks enjoy these part-time jobs because it gives them a few extra dollars and it gets them out of the house.

The media is running stories about how much money we have to have at retirement in order to maintain the lifestyle that we're used to when working. There seem to be many complex formulas that are presented at diverse conferences that are suppose to help the person know when they have enough money to retire. My husband and I have developed quite humble retirement plans. We started thinking about this and planning for retirement when we were quite young. We are very glad that we did. We listened to some sound advice from a retirement planner through our jobs. Our lowly retirement plans have included putting aside fifty dollars of each pay check into deferred compensation. This lowers your salary so less taxes are taken out. When we were ok fiscally one of us or some times both of us would also place any raise we received into the deferred compensation program. At first we placed the money into a fixed account which had higher interest rates than the banks did. Then we began placing percentages of the amounts into low risk stock options and mutual funds. Our money grew over time. We also had our public employee retirement accounts. When I had been with the county for twenty years I left, knowing that when I turn fifty five I will begin receiving a pension check monthly for the rest of my life. I will be able to work an alternative fifteen years at another job and will have the 401k plan from there. We also invested in term life insurance policies with low monthly premiums.

Our humble retirement plans do not include a great deal of wheeling and dealing and playing the stock market; on the other hand the accounts are steadily developing. When we quit work we will be making the same income we have now, but with fewer expenses because our home will be paid off. The steady, consistent putting the money aside was a great way to plan for retirement for us. We could not take the money out without penalty and when it was taken fixedly from our check we did not miss it, nor were we tantalized to spend it.

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