What the rich people wished they knew about money in their 20s

Mark Cuban shared his important personal-finance advice.  When we asked him what he wishes he’d known about money in his 20s, he said:

That credit cards are the worst investment that you can make. That the money I save on interest by not having debt is better than any return I could possibly get by investing that money in the stock market. I thought I would be a stock market genius. Until I wasn’t.

I should have paid off my cards every 30 days.

Cuban zeroed in on some core personal-finance concepts: using credit cards responsibly, staying out of debt, and not fancying yourself a stock market savant. Interestingly, his insight doesn’t touch on buying sports teams or the hottest investment of the moment, which just goes to show that no matter who you are, or how rich, the same basic financial guidelines apply.

The other rich performers value following their passion, learning, saving early, joining a company with a future, and always thinking about long term value and looking for opportunities.


To start saving now in your 20s at $100 or more per month in a long term tax free cash accumulation inside a perm life insurance policy, contact Connie Dello Bono 408-854-1883 by cell and motherhealth@gmail.com CA Life Lic 0G60621 in 50 US states.

Turning 50? it is not late to prepare for your retirement savings plan

A senior costs her three homes to pay for 15yrs of staying in a care home facility.She has no retirement savings, long term care or other means of generating income. Her diabetes caused her death after 15 yrs in a care home with not enough exercise and motivation to eat healthy food even when the care home prepares a gourmet meal for her. So if you are planning to retire with sufficient funds, plan early.

Here are a few of her rules of thumb to help you catch up after age 50:

Make savings non-negotiable

People who are not really taking their savings seriously, unfortunately, are going to move themselves into this area of poverty. For someone who has not been saving, take a real hard look at where their money is going and make savings automatic, non-negotiable.

If you make savings a high priority, there’s a lot of opportunity to make a difference. Let me give you a financial example: If a 50-year-old was to take advantage of the 401(k) and save $23,000 for the next 15 years until they’re 65, at a 6% rate of return that money can grow to [about] $570,000. Also take a look at credit card debt because the interest that you’re paying could easily be going to savings.

The 25 Times Rule

You will need 25 times the amount you’ll need to withdraw from your savings to supplement retirement or any other reliable income. So, for instance, if you need $40,000 per year of supplemental income, you will need a million dollars saved at the time of retirement.

The Minus 10 Rule

If you start saving in your 20s, you can save up to 10% and you should have a relatively comfortable retirement. However if you wait until your 30s, you’re going to have to save at least 20%. And then your 40s [save] 30%, and 50s of course 40%. That sounds like a lot of money, but in this country two-thirds of Americans use Social Security as their primary source of income. For a third of Americans, it’s their only source of income. And, unfortunately, the average amount of Social Security is approximately $15,000 [a year].

Are there things that you can cut out? For instance, even life insurance. For a lot of people it’s a waste of money — they don’t have dependents or a small business. Really look at where you can cut money — is it cable television? Do you need that car?

Saving for your health

Keep in mind we’re living longer. In our early retirement days we are going to be active and that’s where our money is going to go. But in our later years, a lot of our money is going to go to health care. A lot of people don’t really think about health care costs and embedding that into their savings.

If you have access to an Index Universal Life policy consider maximizing the funding in it and let it grow over the years so that when you do retire, you have that nest egg.

A lot of people assume that Medicare is paid for and all their medical expenses are going to be paid for, but actually the premium is deducted from your Social Security benefit so Medicare only covers about 60% of your health care costs, so it’s really important to embed health care in your whole retirement savings plan.


Contact Connie Dello Buono CA Life Lic 0G60621 for a investment-retirement-savings plan that will provide a lifetime income, a similar to long term care insurance, with estate plan, life protection and tax-free and risk-free. Best of all it has been growing up to 8% during the last 20yrs.

Do you need a financial planner?

Good leaders know when to delegate, and when to seek expert opinions. So as the leader of your personal finances, you shouldn’t be afraid to consult a financial planner–when appropriate.

Here are ten scenarios to help you determine when it makes sense to hire a professional to provide investment and financial advice. Planners typically charge a flat fee of $100 to $500 an hour for their advice. If they also manage your money, they’ll typically charge you a percentage of assets, around 1% to 2%, less for larger accounts.

A planner’s job is to solve tax or investment problems, help you deal with your estate and coach you toward long-term goals. If you simply want to get more organized, download a software program such as Quicken. Or try an online money tracking Web site such as Mint.com.

A planner may not be able to help you achieve a 13% annualized return, which is what it would take to reach your objective without any additional savings. That’s awfully ambitious. But good, ethical planners will help you to set realistic expectations (they can’t guarantee results). You’ll fill out a questionnaire before your first meeting, which should be free and informal. Part of the survey will discuss your investment style and your expectations.

Perhaps all you need is a sit down with your father’s favorite to assert your individual wishes and customize your portfolio. But if you are looking for a fresh perspective, you may find a consultation with a new adviser worthwhile, even at a cost of $500 to $1,000. You can then decide which adviser is right for you.

At least not as a first step. Save the $1,000 you might have spent on a planner to hear advice you probably know already: Leaving your money on the sidelines is the surest way to lose in the long run. Arrange for a fixed sum to go into your retirement plan every month. Your HR department can help you take care of this in no time at all. If you feel clueless about HOW to invest that money, however, you may find it helpful to get advice — and, perhaps, some reassurance — form a planner.

A good planner can improve a haphazard portfolio by analyzing its risks and returns, its redundancies and unnecessary investments, and the fees and taxes you’re paying. You can pay for ongoing service, or you might get a one-time-only “X-ray,” or portfolio analysis, for a few hundred dollars.

Just be sure to seek someone who specializes in “holistic” financial planning or “life planning.” You don’t want someone who only knows bonds and tax planning but nothing about what you want to do.

Planners are not economists, and they rarely endorse unbalanced investment strategies. Be honest with yourself: If you want to move most of your assets into real estate or other hard assets, you’ll probably need more advice than any financial planner can provide. Just remember, you can lose money in this stuff just as easily as you can in stocks and bonds.

Planners will tell you that many of the situations they deal with result from family problems, whether it’s divorce, failure of a family-owned business, jealous relatives or a bunch of other things. To set up appropriate trusts or investment accounts and keep the peace, you need guidance — a sensitive adviser or team of advisers will be worth the money.

Learn some lessons — about you, about investing — on your own first. You can find free guidance from your employer, your 401(k) plan sponsor, perhaps a local investors’ organization, or trusted media source such as Kiplinger’s Personal Finance magazine and Kiplinger.com. Still feeling unsure? A consultation with a good planner could provide the sounding board and encouragement you need.


Call Connie Dello Buono 408-854-1883 or email motherhealth@gmail.com for information on index annuities and index Universal life policy with five indexing strategies for risk-free and tax-free investment with life protection and similar to Long Term Care added at no cost and for lifetime retirement income/pension. CA Life Lic 0G60621. In 50 US states. 1708 Hallmark lane San Jose CA 95124

Retirement planning for doctors and health care pros

doctors tax free retirementImage

tax free retirement for doctors and health care professionals_

Here is an example of saving during  a low tax environment and taking retirement income when tax rates are higher.

As you can see, although you may accumulate more money through a pre-tax plan, if your tax bracket is high enough in retirement, your net income distribution may be much lower than if you saved through tax-free alternative.

Call Connie Dello Buono,  Personal Finance Concierge for Doctors, Health Care pros and Bay area pros
CA Life Lic 0G60621 at 408-854-1883 connie_dellobuono@glic.com or motherhealth@gmail.com San Ramon, San Jose and San Mateo office at http://www.guardianlife.com

Cars costing you your retirement savings plan

If you’re feeling broke at the end of the month and don’t know where all your money disappeared to, just take a peek in your garage. Your car could be sucking your bank account dry.

AAA recently released its 2013 Your Driving Costs report, which reveals what Americans are really paying to drive. It showed an almost 2 percent increase in the cost to own and operate a vehicle in the U.S.

Los Angeles, Calif., traffic on Interstate 405 © VisionsofAmerica/Joe Sohm/Digital Vision/Getty Images

If you drive a mid-size sedan, like a Toyota Camry, Chevy Impala or Ford Fusion, you’re paying about 60.8 cents per mile, or $9,122 a year. That is based on driving 15,000 miles per year, which is common for American workers. If you drive an SUV, you’re paying about $11,600 per year, AAA said.

That’s a lot of money. And more than some people pay for rent.

According to a press release from AAA:

“Many factors go into the cost calculation of owning and operating a vehicle,” said John Nielsen, AAA director of automotive engineering and repair. “This year, changes in maintenance, fuel and insurance costs resulted in the increase to just over 60 cents a mile.”

Here’s a breakdown of the costs that AAA said drove the 2 percent increase in operating and owning a vehicle:

  • Maintenance costs — up 11.26 percent between 2012 and 2013.
  • Fuel costs — increased 1.93 percent.
  • Tire costs — no change between 2012 and 2013.
  • Insurance costs — rose 2.76 percent.
  • Depreciation costs — increased by 0.78 percent.

If you’re looking for a way to trim your car costs, Autoweek recommends following these tips:

  • Bigger isn’t better. “Don’t buy more car than you need,” Autoweek said. You could save about $2,000 per year by purchasing a size down.
  • Don’t buy new. Cars depreciate by nearly 20 percent in the first year. That’s a big hit. Do your homework and consider purchasing a vehicle that holds its value.
  • Know your car. Read your car’s manual and make sure you’re keeping up on its recommended maintenance. Most cars will easily exceed the 100,000-mile mark if you regularly maintain your vehicle.
  • Price insurance. Before you buy a vehicle, research the costs associated with insuring it. Depending on the make, model and year of car, insurance costs can fluctuate significantly.
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  • Comments:
  • My 19-yr old son commutes by bus from the house to his school and then to his part time job as computer technician. And he wants me to buy a hybrid car the next time since I like to be in a carpool lane and to save on gas as I drive a lot in my business of helping others with tax-free retirement plans. I have driven my car for 8 yrs (carpools at times) and now giving it to my daughter. When I worked in Taiwan, I commute by bus and most people drive a scooter.