Fixed it Friday: 06-03-11

4 06 2011

Have we all heard of Roth IRA Conversions?  No?  Neither has Amelia.

Amelia is back with another update.  Up until last week she had a Traditional IRA which was then converted in a Roth IRA.  With a Roth IRA conversion, the participant must pay taxes on the amount converted from the Traditional IRA into the Roth IRA.  Taxes can be paid this year or during the year 2012.  When the conversion is completed, funds within the Roth IRA grow tax free without the enforcement of Required Minimum Distributions.

Here is what Amelia had to say during her journey towards converting her IRA:

“I didn’t realize I have the option to convert my existing traditional IRA into a Roth IRA.  I’m glad it’s not too late!  I know I need to pay a little tax now but it’s on a small amount of money and then I’ll never have to worry about the future taxes  on what will have grown to hopefully a lot!  I double checked it out with the online calculator and plugged in estimates.


I previously deducted the traditional IRA on my taxes.  I understand I have to pay taxes now that I am doing a conversion.  But is there any other consequence?  Maybe I can speak with an accountant.”

Let’s hear it for Amelia!  She’s continuing to learn and explore all the options available regarding personal finance.

Fixed It Friday: 08-27-10

27 08 2010

Let’s all give another round of applause for Amelia.  As we recall, last month, Amelia emailed us her money-saving tips for our Friday’s edition of Fixed It Fridays.

Amelia is making extraordinary progress cutting back utility expenses.  She had this to say:

“I am cancelling wireless home networking, at least temporarily.  This is an $8 charge per month I don’t need.  I plugged the laptop directly into the modem.”

And when it came down to eliminating trips to the vending machine at work, she told us this:

“I’m estimating I’m saving $375 a year. About $7.75 every week I work in savings.”

And it doesn’t end, she is finding more creative ways to trim the monthly expenses!  And the best part, she is enjoying this newfound money! 

Way to go Amelia!  You are on the road towards Fixing your financial future!  Keep up the good work!!!

Fix It Tip.  Saving 10% of disposable income a year may not sound like much, but where else would you get that high of a return on your current investments?  Maybe you haven’t received a raise this year, think of your saving ability as a 10% raise!

We want to hear from you.  Email us your ”Fixed It Fridays” story.  Visit our Contact Page for submissions.

Fixed It Friday: 07-23-10

23 07 2010

Let’s put our hands together for Amelia because she recently took the first step towards Fixing It!  Below is Amelia’s email submission:

“I fixed it by stopping to buy iced coffee outside because I can get it inside for free.  It was a two-step process:  first I was getting coffee at Starbucks, then I went to get it at McDonald’s, then I realized that I can make it the way I want at work or at home, and it costs much less. “

It doesn’t end there!  With our advice on hand, Amelia began jotting her daily spending on a calendar page.  Amelia is working towards Fixing her spending by tracking more days on her calendar.

Amelia’s first step was realization – she knew she wanted to save more.  Her second step was awareness – writing her daily expenses reveals where she is overspending. 

Way to go Amelia!  You are on the road towards Fixing your financial future!  Keep up the good work!!!

We want to hear from you.  Email us your “Fixed It Fridays” story.  Visit our Contact Page for submissions.

Fixed it Fridays: Don’t Stop the Momentum

21 05 2010

The crowd cheers.  Fireworks are going off.  You FIXED IT!!! 

You –

  • Saved your first $50
  • Opened an Emergency Fund at the bank
  • Avoided contributing to your debt by charging something on that fantastic plastic
  • Made a sandwich rather than buying that overpriced $8 sandwich
  • Opened a 401(k) at your job
  • Deposited money into an account for your child’s college
  • Realized you needed to fix your financial situation
  • Turned down going to the mall with your friends
  • Created a monthly budget and spending plan
  • Held a family meeting and discussed the family’s financial future

Whatever steps – big or small – you have taken right now are shaping your financial future! 

Don’t stop.  Keep going.  Run Run Run!!!

We want to hear from you, drop us a comment.  Tell us what you Fixed!

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