Hey, Remember the IRA?

How many American families who were eligible to make direct IRA contributions in 2006 (the most recent data available) actually did so?
__ 100%
__ 85%
__ 50%
__ 25%
__ None of the above

The answer, according to a great article by J. Alex Tarquinio on today’s NYTimes.com, is…14%!

Can you believe that? Only 14% of eligible American families contributed directly to their IRAs. I think that’s insane. And don’t tell me the reason is because they’re contributing to their 401(k)s at work.

Because, according to the article, 57% of Americans 25 to 64 have NO RETIREMENT PLAN AT WORK.

So, what’s going on here? Do they think that Social Security will be their retirement plan? Will SS even be around when they retire?

Sure, deciding which IRA is right for you could be a little confusing, but it’s really not a good excuse for not putting at least something into your IRA. And not having the money after paying all of your bills can also be a reason. But if you can find a few dollars to buy a latte or a pack of cigarettes even once a week, you can afford to put something into your IRA.

So, what do you think is the reason why so few of us take advantage of IRAs? Give us your take.

Talkin’ about your salary: The last taboo?

There’s an interesting article by Alex Williams on today’s NYTimes.com about how comfortable or uncomfortable different generations are when it comes to talking about their income to friends, family and co-workers.

According to the article, people under 35 seem to feel that it’s OK to tell others what they make. In fact, it’s pretty normal. But those over 35 would rather keep it private.

I know that when it comes to my income, I keep it pretty much to myself. But then, I’m over 35. By about 15 years.

So, how do you feel? Is it OK to tell friends, family and co-workers what you make? Or would you rather walk barefoot over broken glass? Let me know.

Financial Planner - Yes or No?

The idea of having a Financial Planner really appeals to me. But each of the 4 times that I met with a Financial Planner over the years, I walked away feeling that someone was just looking at me as a “Commission Generator”.

One time, a “Planner” turned out to be just an Insurance Salesman who tried to sell me a Whole Life Policy as the sole investment in the retirement part of my “Plan”. This might’ve been a smart option if I were 25 and could really take advantage of my premiums building up over the years. But I was 48 at the time. And that didn’t leave too many years for the premiums to build up.

But today, I read a great article by Terry Savage on The Street.com about How to Choose a Financial Planner. And it really got me thinking . Could I use one? Probably. Could I trust one? That’s a tougher question to answer right now. But who knows? I might interview a few and find one that I can really work with. How about you? What’s your take on Financial Planners?

Why am I a great fake trader, but a bad real trader?

So I got my weekly email this morning from Marketocracy, the online paper-trading site. It’s a site where you can practice your trading by making fake trades with fake money. And after seeing my results, I can’t help ask myself “Why am I a great fake trader, but a bad real trader?”

My fake account is doing great considering the downward spiraling market that we’re in. But my real portfolio is stagnant. So, why is this? Why can I pick fake trades that return 6.79% for the past 7 days and beat the S&P 500 (4.31%), the NASDAQ (4.92%) and the Dow (4.25%)? But when I make real trades in my real portfolio they usually turn out to be crap?

Oh, and to make me feel even worse, my (fake) account returned 16.26% over the past 30 days and also beat the S&P (7.08%), NASDAQ (8.73% and Dow (6.20%). So, what do you think is going on inside my head when it comes to trading? I’d really like to hear your take on it.