December 2010 Archives

Each year I look forward to the slightly slower pace of the week between Christmas and New Year's. I finally get time to sit down and write thank you notes to friends and relatives for gifts received, meals shared, or cherished time as a guest in their homes over the holiday season.

I'm still a believer in the handwritten thank you note delivered via snail mail. But more often than not I feel like I'm part of a growing minority of hold-outs that still view handwritten notes as more personal than email or texting.

Maybe it's the way I was brought up or a reluctance to let go of old traditions, but I like receiving handwritten thank you notes. I appreciate the time someone spent to write me a short note, address the envelope, place a stamp on it, and drop it in the mail. There's an intimacy associated with the whole process that can't be easily replicated in email. When you get a handwritten note, you know it's meant for you and hasn't been cut and pasted, and blasted to the masses.

I think that when someone takes the time to select a gift for you, prepare a meal, or entertain you in their home, it's important to acknowledge that by putting some time and effort into how you thank them.

I have one friend who claims I'm confusing level of difficulty with level of gratitude. Her perspective is that it's better to send a timely thank you via email than a handwritten note that may sit on her desk for weeks before she gets around to buying stamps.

What's your opinion? Will technology eventually render the handwritten note a thing of the past?

Editor's Note: With 2011 just around the corner, we're going to take a short break from posting, but will be back next year. Please have a wonderful, festive, and safe New Year's celebration!

I'm on a mission. A health mission.

Now that I'm a member of the 40-40 club (as I like to call it), I'm more focused on my health. I want to prevent and/or delay the illnesses that have unfortunately made their way into my family's health history when we turn 40. As you no doubt know, though, it's hard to stay on track during the holidays – and it's even harder to stay on track on vacation.

Well, earlier this month I had the pleasure of having to tackle both, when we celebrated my husband's 40th birthday onboard a cruise ship. It was my first cruise, and anytime I told someone about it, they were quick to tell me about the all-you-can-eat buffets. Not one person told me about the fitness classes, the gym, or the spa.

Right then I knew I needed a plan to help me stay on track and still enjoy the birthday celebration.

If there's a time of year when more becomes less, it's now. Many of us add more and more to our busy schedules, on top of our regular day-to-day juggling acts. December often means piling on holiday cooking, decorating and shopping; attending band, dance or chorus recitals; and traveling or engaging in special religious, community and volunteer activities.

Even though we wouldn't miss some of these activities for the world, there's no doubt that trying to accommodate everything and everyone can prove downright exhausting. That's because doing more doesn't necessarily equate to accomplishing more.

I find that I become less productive after a certain point if I take on too much. Fill me to the max with meetings, or a weekend spent navigating through holiday crowds and traffic, and I've had it. I have to consciously schedule balance into my life to rejuvenate, even if it's just a 30 minute walk before dinner or taking a few minutes to catch up with a friend or neighbor. Then I can return and tackle everything else with more energy.

How about you? What do you do to regain your sense of balance during hectic periods?

As I rambled through the mounds of papers on my desk, an envelope seemed to jump up from the pile as if it was purposely trying to get my attention. Ironic, since I've spent months avoiding this very envelope, yet here it is again.

This time, however, instead of tucking it away out of site — which for me definitely means out of mind — I ripped it open. It turned out to be my 401k envelope from June. So I've spent the second half of 2010 playing hide and seek with an envelope. I got a good chuckle over that one.

Anyway, I found the envelope — or better yet, it found me. And I felt different than when I was avoiding it. I was calmer and my head was clear. I was energized. And instead of feeling like I was ripping off a band-aid, I felt like I was ripping open a gift. Opening that envelope was a gift not only to my 65 year-old self, but also to my 41 year-old self, because it represents financial stability, which gives me choices both now and later in life.

That thought triggered a Dr. Phil moment: I accepted that I couldn't change what I didn't acknowledge (or in this case open). So I actually read the full statement.

In Minnesota we bring out the winter wool early compared to most regions of the country. In fact, this year our first snowfall of the season arrived well before Thanksgiving. But snow or no snow, there's something therapeutic about the process of putting summer clothing away and bringing out the winter gear. Taking out the coats, sweaters, boots and gloves immediately conjures up images of brisk hikes, mugs of hot cocoa beside a cozy fire and newly fallen snow.

Yet, winter is hardly without its perils as we recently witnessed with the collapse of the roof of the Metrodome here in Minneapolis on December 12th.

I think cold weather is often met with a combination of joy and trepidation similar to how many of us experience investing. When things are going great (the markets are on the rise; our power stays on during an unusually heavy snow storm) we revel in our good fortune. But when things get a little rough (the markets decline; we lose power for 3 days) it's hard to maintain our enthusiasm.

Like the weather, the investment markets are outside of our control. However, we can still take smart steps to help minimize our risk. Storing extra clothing and blankets in the car in case of a breakdown or keeping a generator on hand for power outages help to minimize certain weather-related risks. Likewise, diversifying portfolio assets by investing across a broad range of investment types and securities can help to better insulate your investment portfolio.* To better determine your risk tolerance, and develop a strategy for managing investment risk, grab a hot mug of cocoa and try our risk assessment tool.

*Diversification does not guarantee profit or protect against loss in declining markets.

I recently came across an article about the October 2010 White House Women's Entrepreneurship Conference, sponsored by the White House Council on Women and Girls that states the following:

Women-owned businesses are a critical part of America's 21st century economy. Between 1997 and 2007, the number of women-owned businesses grew by 44%, twice as fast as men-owned firms. During this period, women-owned businesses added roughly 500,000 jobs, while other private firms lost jobs.

The most recent data show that women-owned businesses have annual sales/receipts of $1.2 trillion. Even during this trying economic time, women-owned businesses continue to create jobs. The article also notes that, as we continue on the path to recovery, women-owned businesses will play an essential role in growing the economy and putting Americans back to work.

I'm interested in hearing your thoughts and opinions on why you think women-owned businesses are experiencing this level of growth and success. Specifically, what factors differentiate women as business owners or entrepreneurs? And why do you think more women are choosing to launch new businesses than men?

When I married my husband, we formed a blended family and the "OURS" column in my life grew. It continues to grow.

As an experiment, I googled "What is a blended family?" and 1,780,000 results popped up in .13 seconds. In a nutshell, if one (or both) of the spouses in a relationship have children from a previous relationship, have adopted and/or biological children, or even just remarry after a divorce, it's a blended family.

We're an "after a divorce" blended family. And as with all families, there's no owner's manual. It's not easy. Our marriage counselor explained during a pre-marital counseling session that a stepparent is a symbol that "Mommy and Daddy aren't getting back together," which is heartbreaking for the child. Our counselor always reminded me how that sadness could be emotional fuel for the "Wicked Stepmother image" fire. It really helped me give everyone — including myself — time to adjust.

The good news is that, slowly but surely, a blended family culture evolves. Things settle into place, and the family "OURS" column opens a little wider, making room for the members of both families.

So although it's not easy, it's definitely possible to be happy blended family.

This time of year is great because the holidays always present an opportunity to (pardon the pun) "blend" as a family — and this season's been no different. Basically, my stepdaughters have never known what to call my mom, so when they wanted to ask her something or get something from her, they just referred to her as "Natalie's Mom."

Adding my mom to their lives means they now have a "step-grandmother." I know that isn't a very mainstream image (wicked or otherwise), and the role doesn't have a title. But after several snack-filled, Wii marathon-packed, "kids-can-do-no-wrong" visits to my mom's house, this holiday season we have finally reached an important milestone.

My youngest son Paul recently received his driving learner's permit. He was nervous and excited; I was just nervous. Now that we are out driving and he is practicing, his confidence is building and my nerves are calming — except on the highway! We recently were on a four-hour road trip and he was "practicing" on the highway rather than on city streets. Many of the same rules of the road apply: Check your blind spot, look over your shoulder, signal, drive defensively.

However, when we got to the point of passing a car, I was reminded that what's second nature when you've been driving for 30+ years is not the case for a new driver. The "look in the mirror, check your blind spot, signal your move..." all worked just fine. We cruised by the slow car in the right lane that was going a leisurely 50 mph. Whew! I felt myself let out a sigh of relief until Paul decided to quickly move from the left lane back into the right lane, with perhaps not as much clearance as would have been comfortable or safe. After a bit of a panic and a few unedited comments on my part, I realized that this was completely new for Paul, and it wasn't really fair for me to expect him to know what to do. He was doing this for the first time.

Tell me about a time when you've had to learn something new. Does asking for help or direction come easily to you? Or do you prefer to wing it on your own? What steps do you take to master something new or unfamiliar?

The Employee Benefit Research Institute (EBRI) recently announced that the total aggregate national deficit in U.S. retirement income adequacy is an estimated $4.6 trillion (PDF). In layperson's terms, that means Americans as a group are currently saving well below what they need to in an effort to generate adequate income in retirement. The EBRI's estimated $4.6 trillion retirement income deficit translates to a shortfall of about an average of $48,000 per individual.

Even more alarming was EBRI's analysis that found the aggregate retirement income deficit would almost double to $8.5 trillion if Social Security retirement benefits were eliminated. They estimate an individual average income deficit of approximately $89,000 under that scenario.*

While these are big numbers to digest — and ones that will vary based on your personal savings habits and retirement income needs — the data still stands as a wake-up call to those saving for retirement or those spending in retirement.

What can you do now to reduce the potential of a retirement income shortfall? To determine if you should be saving more today, it's important to understand if you are on track to generate sufficient assets to meet your retirement goals.

The Wells Fargo Quick View Calculator can help you project your retirement outcome and determine if you're on track. If it appears you're on track, consider sharing your results with your financial advisor to confirm your findings. If it appears that you need to save more there are a number of steps you can take now to make additional progress toward your goals:

1. Examine your budget and spending habits to identify ways to cut costs and save more.
2. Ensure you're taking full advantage of retirement plans like 401(k) and IRA plans that offer preferential tax treatment.
3. Work with your financial advisor to develop a comprehensive saving and spending plan; this will help you identify and remain focused on important goals and priorities now and in the future.
4. Determine if delaying retirement by a few years or opting to work part-time during retirement will help you get closer to your goals.

What steps are you taking to remain on track for your retirement goals?

Over the years, I've repeatedly heard the media claim that many Americans spend less time planning for retirement than planning a two-week vacation. That may be true for some, but decidedly not all. Unfortunately, those people who do spend countless hours poring over retirement information often find the process confusing and intimidating.

Why? Well, one reason is that we're inundated with conflicting reports, information and misinformation from the media, well-meaning coworkers, friends and relatives. Each source has a different perspective on how much to save, where to save, and how best to invest your savings or contributions in your employer plan.

The problem is, no matter how well-intentioned the advice, your situation will never be identical to another person's situation. Your goals, income, age, tolerance for risk and other factors will differ, making your circumstances unique.

In fact, 45% of pre-retiree women participating in our 2009 Retirement Fitness Study (PDF) told us they wish they had educated themselves sooner about retirement (vs. 36% of men), and 37% wish they had cut back on their lifestyle to save more (vs. 30% of men).

Pre-retired women also tend to be reaching out to their financial advisors more often than before the downturn (27%, vs. 14% of men), suggesting a greater need for assurance and guidance from these advisors.

What sources do you rely upon when making decisions about your retirement strategy or investments? A financial advisor? Your spouse? The internet? Information provided by your employer? Suze Orman? Please share your thoughts and answers below.

I'm happy to say that it's December, and I'm still pursing one of my New Year's Resolutions. Truth is, I like making New Year's Resolutions. Typically, however, I start out like gangbusters, then within weeks my good intentions fizzle, and within months my resolution is pretty much forgotten.

So this year I tried a different approach and actually got different results. Instead of overwhelming myself with a laundry list of big goals, I set one major resolution that would require changes in my behavior and included a few, smaller, short-term goals that I could treat as "mini-projects" and work on throughout the year.

My one major resolution for 2010 was to work out 240 times over the course of the year. I made it a point to focus on the behavior I wanted to change, based not only on my personality, but also my lifestyle — which I believe why the goal is still alive and well 11 months into the year.

See, I didn't do the typical "I'm going to lose X number of pounds this year" goal. Why? When I set that type of goal, my Type A personality goes into overdrive, and I begin to live and die by the number on the scale. Now, this wouldn't be so bad except for the fact that my mood also goes up and down and sideways depending on the three numbers that show up on the scale that day. Too many misses, I get discouraged, and simply give up.

I also made it a point to be realistic about the demands of my life, which can often include a demanding and unpredictable work and business travel schedule. Instead of setting my usual "I'm Going to Work Out Five Days a Week" goal, I focused instead on aiming to do 20 workouts a month. This approach has helped me keep my head in the game simply because of the flexibility it gives me.