Joe Lucey

One of the prominent media stories that emerged in the 2016 presidential election was the need for constant fact checking among the candidates. While many “untruths” are labeled as lies, often a case can be made that information was cherry picked, taken out of context, incomplete, misconstrued or misinterpreted.

However, that’s not to say that out-and-out lying is uncommon. One researcher asserts that 60 percent of people tell, on average, two to three fibs during a typical 10-minute conversation.

Why so common? A recent study found that dishonesty grows with repetition. Scientists posit that the first time a person tells a lie, he or she tends to feel guilty. That’s (human) nature’s way of curbing an implicitly incorrect behavior. However, over time, the more lies one tells, the less guilty he or she feels, indicating that the brain somehow adapts to this illicit behavior.

Research has demonstrated that lies appear to escalate more when there is an element of self-interest: The more an individual benefits from lying, the more likely he or she is to lie repeatedly. The lies get bigger, and that self-conscious feeling of guilt tends to get suppressed.

Despite its prevalence, we tend to feel guilty when we suspect someone of lying, which is one reason why we’re often duped. Men and women lie with equal regularity, but often for different reasons. Psychologist Robert Feldman says women are more likely to lie to make the person they are talking to feel good, while men lie most often to make themselves look better.

With holiday shopping and festive menu planning, it is easy to lose track of things that are less exciting – like taxes and money management. Knowing that, I have compiled a short checklist of 5 things that, if done now, can save you considerable money before the year is over. The best part is they are quick to do, so you will be back to celebrating in no time!

1. Get yourself organized. As year-end statements  and tax forms begin to show up in the mail, file them into a tax binder or folder. You might keep that folder next to where you usually sort mail to make this easy. Having your documents in one place can go a long way towards managing the cost of tax preparation.

2. Make an additional contribution to your retirement plan. If you have a traditional (non-Roth) retirement plan or a traditional IRA and are under 70½, you can save money on taxes by making a qualified contribution. The contribution will decrease your taxable income, and you get the benefit of boosting your nest egg! I know that holiday budgets can be tight, but the benefits of investing in your peace of mind will last longer than your Christmas tree.

3. Look into tax loss harvesting. If you can use a reduction in your taxable income this year, consider selling some underperforming stocks before December 31. Capital losses in excess of your gains of up to $3,000 can be used to offset your taxable income, and any excess can be rolled forward to 2017.

4. Keep track of your holiday budget. With the excitement of the season, it is easy to lose sight of your spending. Remember that the best predictor of your retirement success is your ability to save. Use a formal budget to manage how much you spend on gifts, holiday parties, shopping for the holiday table and eating out. A holiday does not have to break the bank to be memorable.

5. Criminals don’t take a Christmas break! Identity theft is a threat year-round, but especially so during the holidays. Now is a good time to request your free credit report. I recommend using www.AnnualCreditReport.com – it’s one of the few outlets that is truly free (no credit card required). Be sure to monitor the activity on your credit cards and bank statements a little more closely. Don’t let crooks go holiday-shopping on your dime!

Finally, remember that the best way to avoid wasting money and time is to make sure you have the right strategy in place for your retirement. Don’t leave your security and peace of mind to chance!

Call us today at 952-460-3260 or click here to set up your free 60-Minute One On One Retirement Readiness Lab™ With A Certified Financial Planner Professional.

We are here to help through the holidays and into 2017!

High income is not always correlated with a high accumulation of wealth. The difference often lies in the income-earner’s level of spending versus saving, but other traits may contribute as well. It’s not uncommon to hear about millionaires who end up penniless and humble workers who diligently save long term to amass wealth. For example:

• Oseola McCarty, an African American woman born in 1908, began a 79-year career of laundering clothes by hand. Saving diligently from the age of eight, she retired in 1995 with $280,000 in the bank, promptly donating $150,000 of it to fund scholarships for worthy but needy students at the University of Southern Mississippi.
• One couple saved millions while working in the airline industry with a combined salary of $115,000.
• Former boxer Mike Tyson, who, at his peak, was earning $30 million per fight, lost most of his wealth due to lavish spending, a divorce settlement and back taxes.

Intelligence, social skills, health and motivation are all traits that could determine someone’s net worth. In some cases, high net worth can also lead to a higher level of income. For instance, family wealth could play a part in a child receiving a better job. Someone who is already wealthy may also have increased confidence in pursuing new job opportunities.

It stands to reason that the older we get, the more we tend to accumulate assets that are not necessarily associated with our level of income. For example, years of saving, home equity appreciation and investment compounding all contribute to our net worth. More than 60 percent of households headed by someone age 65 and over have at least six-figures of wealth; more than 10 percent are into seven figures.