Re-balance Your Life-Work Balance.

My favorite season is here – Summer. And with it, the desire to work less, play more and live happily. Because if you’re living a wealthy life, you better be having fun.

So, what better time than right now to re-balance our lives between the work we have to do and the fun we want to have.

That sounds great. But the big questions is: How?

Well, here are a few things that you can do to even things out. Now, you might say “There’s no way I can do that.” But remember, if you want to make a big change, you have to take a big action. Here goes.

1. Leave Work at Work
That’s right. Don’t take work home. If you can’t perform your duties during your regular working hours, then you’re doing something wrong – like scheduling too many meetings, making too much out of the minutia of work or even surfing the web too much.

2. No Weekends
Just like #1, if you can’t accomplish your work duties between Monday and Friday, you’re not working as efficiently as you can.

3. Shut-off the Crackberry
When did it become OK to check email at all hours of the day and night, during family dinners, at 3am in the morning and when you’re helping your kids with their homework? Well, it didn’t become OK, we just accepted it because we became workaholics. I believe that if you really want to re-balance your life and your work, the most important thing you can do is to turn-off your Blackberry when you’re home.

4. Ramp-up Your Social Life
Yes, do more social things. Schedule them on your work schedule so you don’t “forget” about doing them.

5. Coach Your Kid’s Teams
I know, you don’t have time to coach your kid’s teams. Well, make some time. Don’t think you can? Then next time you’re sitting in the stands, watching your kid play, look at all the different parents who are coaching. Then after the game, ask those coaches how they do it. You might learn a few things about scheduling and the importance of being with your kids. Also, NEVER take your laptop to your kid’s games. NEVER.

6. Take Weekend Trips
Every few months, take your family on a fun weekend trip. No, this doesn’t count as your “vacation”. Just schedule it and go have some fun.

7. Date Your Mate
Show your significant other how special he/she really is by scheduling and going on fun dates. The results will astound you.

8. Read Something Different
Change your reading habits to stimulate your brain. And to bring new knowledge and ideas into your life. If you’re into business books, try some fiction instead. If you like non-fiction, crack open a few mysteries. You’ll be glad you did.

9. Swim in an Ocean, Lake, River, Stream or Pond
To me, this is one of the most important ways to re-balance my life and work. I love to swim in natural waters (not pools) because it brings me back to nature. I know that this may sound crazy in an article on a wealth site, but try it. I promise you that it’ll bring you back to a time in your life when life was more important than work. And life was a lot more fun, too.

Ed McMahon Can Save Your Financial Life.

He’s the guy who surprised people every year with those million-dollar checks from Publisher’s Clearing House. He hosted or co-hosted a ton of shows. And he pitched everything under the sun.

But at the tender age of 85, Ed McMahon finds himself in a deep financial mess. His mortgage company is foreclosing on his multi-million-dollar house. Citibank is suing him for hundreds of thousands of dollars in credit card debt. And he can’t work because of an injury – at age 85.

I can see how some people can feel sorry for Ed – he’s an 85-year-old celebrity who’s broke. And I can see how some people can’t feel sorry for him – he’s a celebrity who’s made hundreds of millions of dollars.

But whatever you feeling are about him, there’s one thing you can learn from him – manage your money wisely.

You see, if Ed had just done a little better job managed his money, he wouldn’t be in this situation now. If he didn’t spend more than he made. If he didn’t buy so much on credit cards. If he kept a closer eye on where his money was going, he’s be fine now. And we wouldn’t be talking about or reading about his financial problems.

OK, so what can you do to prevent your life from being “Ed McMahoned”? Read more

Don’t Make These Mistakes with Your 401(k).

If you’re one of the few, smart workers (only about 33%) who invest in a 401(k) plan, good for you. But there are some basic things that you should avoid if you want to give yourself a shot at better returns. This is the topic of a great article I read today on TheStreet.com by Lauren Tara LaCapra.

The piece goes on to state some of the common mistakes that a lot of 401(k) investors make, such as picking the wrong funds, not keeping an eye on their accounts and not rolling over their plans when they change jobs.

It then gives some intelligent advice on how to get the most from your 401(k). Here are 5 things to do.

1. Contribute more
If you’re not putting in enough to get the most from your employer’s matching funds, then you’re walking away from a lot of money. And if you don’t make “catch-up” contributions, then you’re really leaving money on the table. Remember, for 2008, the maximum contribution is $15,500 if you’re under 50 and $20,500 if you’re 50 or over.

2. Strategize and then track performance
Make a PLAN. And then follow it to a T. If your plan offers life-cycle funds, check them out to see if they fit your needs. They could be a good alternative to you just guessing what to invest in. Read more

10 Million Millionaires in the World. Are You One of Them?

Read an interesting article on the NYTimes.com today. It seems that, for the first time ever, the Earth is home to 10 million millionaires at once. This is according to research by Merrill Lynch & Co. and Capgemini Group consulting firm.

And 33% of the M-aires (1 out of 3) live in the good ‘old U.S of A. Africa, the Middle East and Latin America combined have just 10% of the group.

The article goes on to say that last year, the combined wealth of these 10 million has grown to almost $41 TRILLION, up 9% from the year before.

This means that each M-aire has an average wealth of more than $4 million. And that doesn’t include the values of their homes!

So, when I read this, a few questions came to my mind.
1. How did they do it?
2. Why ain’t I part of that group?
3. What do I have to do to get into that group?

Obviously, every one of them has taken a different journey to get to that point. Some inherited it. Some made it. Some stole it. Some got lucky. Some made their own luck. Read more

10 Investing Ideas for 2008: How They’re Doing Now.

You know those “Best Investments of 2008″ articles that appeared at the end of 2007/beginning of 2008? Ever wonder how those investments are doing now? And what changes you should make now?

Well, if you answered “yes” to both of those questions, then you should check out Jonathan Burton’s current in-depth article on MarketWatch.com.

Back on November 12, 2007, Jonathan wrote “Ten investing ideas for the next 12 months”. Now, seven months later, he looks back to see what happened. And what investors can do now.

He checked-out areas from Treasury Bonds and Large Caps to International Markets and Financial Services.

For instance, he saw that large and midcap Growth Stocks performed better than Value stocks. And that Technology stocks are among the top performers over the past quarter.

He also warns that although Energy stocks have shot up recently, right now they’re more speculative. And he basically says stay away from Financials.

To help investors find winners amongst these stocks, Jonathan also lists a few investments in most areas that you might want to look at.

So, if you’re trying to create some wealth, you should check out this article to see what’s happened, and what you can do now to put your portfolio in a better position in the near future.

The Start of a Recovery? Check out the Small Caps.

I don’t have to tell you how volatile the stock market is right now. Add in all that angst around sky-high old prices, the housing/real estate debacle and rising job losses, and the economy seems to be heading even lower.

And if you’re an investor (which you might want to consider if you want to create some wealth), you’ve probably made major changes to your portfolio in order to ride out this drop in the market.

But things might be looking up. Yes, up.

How can I say such a thing? Well, according to an interesting article on yesterday’s NYTimes.com by Paul J. Lim, something interesting has happened recently that historically has led to a turnaround in the economy.

And that is the Russell 2000 Index of small caps has jumped 12.7% since mid-March.

That’s 12.7% in about 3 months!

I don’t know about you, but I’d take that percentage gain for the year and be happy right now.

According to the article, when small stocks rally during an economic slowdown, that has often indicated that the economy would get better, soon.

The article goes into a much more in-depth look at what this can all mean. So, if you’re looking for a clearer perspective on what might be happening, check it out here. And let us know what you think.

13 Lucky Tips to Save on Life Insurance

Let’s be honest: we all hate life insurance. We hate thinking about it. Hearing about it. And especially trying to buy it.

But it’s an important part of protecting your family from financial ruin and your assets from disappearing. So, it’s a pretty good idea to get it.

OK, so how do you go about that without getting ripped off? Well, lucky for you, I have some tips
on what to look for and how to save some real money. As well as your sanity.

1. Don’t rely on your employer to provide you with life insurance
If your company gives you life insurance, that’s great. But don’t count on it. First of all, if you get canned or quit, you’ll probably lose it. Plus, it’s probably not as much insurance as you really need. So, look into getting your own policy that can protect your family - and your wealth - properly.

2. Term, Term, Term
Life insurance comes in a variety of types - Whole, Universal and Term are the 3 most popular. Cut to the chase and stick with Term Life Insurance. I know that agents will tell you that Whole and Universal give you a “cash value” over time, but I haven’t found one agent who can tell me how much that “cash value” will be. I also read that it takes 13 years after signing a Whole or Universal policy for the “cash value” to be take hold. I don’t know if that’s true, but it just put one more question in my mind about these policies in relation to Term. With Term, you know how much you’re paying over a set period of time - say 10, 20 or 30 years. Read more

Pay Yourself First, Win $5,000!

Have you had your fill of Reality TV. With its crazy contests to see who can lose the most weight, who can find love and who can survive on a desert island?

Well, now the world of reality contests is about to invade another medium: the internet. But this time, it’s not about losing or finding or surviving anything.

It’s about saving MONEY. That’s right - stashing away some moolah, clams, greenbacks.

In The Pay Yourself First Challenge, sponsored by FNBO Direct, a division of the First National Bank of Omaha, 5 contestants will go head-to-head to see who can save the most over a 6-month period. Each participant’s savings will be matched dollar-for-dollar, up to $5,000. Which means, a contestant can walk away with more than $10,000 total!

And it will all be captured online - in video and on blogs.

Think you’ve got what it takes to win? Then create a 1-minute video about what you’re saving for. Enter the contest and you could be selected as one of the 5 finalists. Just visit pyfchallenge.com. Read more

Buy & Hold: A Sure Way to Wealth?

I spend a lot of time reading about building wealth because it’s one of my passions. But very rarely do I give any time to thinking about that old tried-and-true strategy of Buy & Hold.

Yeah, remember that? You create a plan. But your stocks/funds/bonds. And then hold on to them for the long term.

Not every exciting. But then, it’s not supposed to be. And today, Andrea Coombes reintroduced me to Buy & Hold with a great article on MarketWatch.com.

Andrea confesses to being a Buy & Holder. Most of her portfolio is in 2 retirement accounts. And no matter what the market does, she doesn’t change her allocations. And in those accounts? Just a routine mix of low-cost U.S. and international stock mutual funds and a bond fund. That’s it.

And she writes about finance for a living? Does she know something we don’t?

Andrea figures that no matter what the market does in the short term, the average historical returns will benefit her. Plus, she sees stock-market trading as little more than a guessing game, unless you devote a ton of time to it.

So, what are her 3 requirements for being a prudent Buy & Hold Investor? A diversified plan, of low-cost index funds, for the long term. Read more

Fund Managers That Don’t Invest in their Funds: Unbelievable.

I know stockbrokers who don’t invest in stocks. But I’ve never heard of a mutual fund manager who didn’t invest in his/her fund.

But, according to an article by Joanna Ossinger on TheStreet.com today, based on research from Morningstar, a lot of fund managers don’t invest in their funds.

In fact, according to the June issue of Morningstar’s the FundInvestor, 47% of U.S. stock funds have zero manager ownership. Even worse, 61% of foreign-stock funds, 66% of taxable-bond funds, 71% of balanced funds and 80% of muni-bond funds have no manager ownership.

What’s going on here? You would think that managers would invest in their own funds. Unless they don’t believe in their funds. Or do they know something we don’t? Mmmmmm, that’s something to think about.

Morningstar’s Russel Kinnel says that there are only 2 good excuses for a manager not owning a fund he/she runs:
1. if the fund they’re managing is a single-state muni bond fund and the manger doesn’t live in that state, because the manager won’t benefit from the tax breaks
2. foreign managers of foreign-stock funds are sometimes barred from owning U.S. funds Read more

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