Open a Roth IRA

From Kiplinger and Yahoo Finance: "Why You Need A Roth IRA."

1. You can invest $5,000 per person per year. (Couples $10,000).
2. You do not get the tax deduction now, but you will not pay tax on the tax deferred growth and when you retire you are not forced to take Required Minimum Distributions/ or pay tax on distributions if you decide to take money out.
3. Beware of the income limits.
4. You can withdraw your contributions (not earnings) at any time without tax penalty.
5. Special tax breaks for home, education and medical expenses.

If your company is not giving you a match in your 401k, open a Roth.
http://finance.yahoo.com/focus-retirement/article/106797/Why-You-Need-a-Roth-IRA;_ylt=AirBN2_8XNyDO4jZaU369Zi7YWsA?mod=fidelity-startingout

Preserve your wealth by planning your estate

There are many reasons why people fail to plan their estates.

Some people mistakenly think that the rules that are in place will adequately distribute their property.  Others think that a will is a magic document that encompasses the beginning and end of an estate plan.  Still others think they have not accumulated enough wealth to require estate planning.  Some people even think that their lawyer, accountant, broker, or some other professional has already efficiently and intelligently planned their estates.

These are just some of the many misconceptions that lead people to plan poorly.  It is unfortunate to see people spend so much of their lives living frugally and worrying about money only to give a big chunk of it away to Uncle Sam rather than their loved ones.  

The first step of planning your estate is to recognize the importance of a good estate plan.  

Trump / Kiyosaki Videos

Check out the following, free, Trump / Kiyosaki videos: 

• Adversity  
  
• Art of the Deal
• The Power of Debt
• Increase Your Financial IQ
• Keys to Success
• Respect

It is refreshing to hear the insights of these financial literacy educators.  

http://www.richdad.com/RichDad/trump_kiyosaki3.aspx?utm_campaign=New%20Exclusive%20Trump/Kiyosaki%20Videos&utm_medium=Email&utm_source=VerticalResponse&utm_term=Watch%20the%20videos%20now.

Who can you blame for the financial crisis?

Time Magazine has identified 25 people to blame for the financial crisis.

Note that these people were supposed to be some of the smartest and best educated in the US. But their mistakes indicate that they did not have common financial sense, or they chose to personally profit by (mis)using it.

The article does not mention how much money they have made from their decisions and that they will not have to pay back this money even though they brought down the financial system and helped bankrupt their companies.

http://www.time.com/time/specials/packages/article/0,28804,1877351_1877350,00.html

Lessons Learned From Madoff Fraud

The Wall Street Journal gives a listing of very prominent banks, investment funds, and rich investors who lost millions (sometimes billions) from Madoff's fraud:
http://s.wsj.net/public/resources/documents/st_madoff_victims_20081215.html

You should learn the following lessons from this fraud (and be better than these investors who didn't adhere to the following advice):

1. Never invest in something or someone just because of name recognition.

2. Always investigate for yourself if something is too good to be true.

3. Double, triple check. Get more than one opinion. Never trust just one advisor (broker, lawyer, accountant).

4. Never assume that just because a person has a degree/or is a specialist that they are competent, or have your best interest in mind.

5. Never assume that the specialist has done the correct planning/paperwork/advice for you.
Investigate for yourself what needs to be done.

6. For the average investor- Diversify, never invest a majority, or even a large minority, of your assets with one person, fund, stock, or company stock.

7. Most importantly, understand what you are investing in, or what you are doing at the advise of a broker/lawyer/accountant. If you don't understand it either: educate yourself about it, or don't go through with it.