Money Matters

Money Matters: How late starters can still save for retirement

Mon, 20 May 2013 11:43:34 -0500

There's still time for late-starters to get the ball rolling on retirement.

"It's money in and money out, those are the two ends of the equation. Try to figure out how to get more in and then look at what's going to be coming out to support the lifestyle you want for retirement," Christopher Robinson, Senior Vice President at Lubbock National Bank said.

Robinson said the "money out" side has changed in recent generations.

"Retirement is not sitting on the front porch on the rocking chair and just waiting. Many pursue lifestyles and hobbies that they didn't have time to when they were pursuing their career; that costs even more money," Robinson said.

Conventional wisdom indicates to keep up with the lifestyle you're accustomed to, you'll need to live on 70 percent of what you make per year pre-retirement.

"However, as we talk to retirees today, many are saying that 70 percent is not enough," Robinson said.

Once savers calculate lifestyle expenses, focus on ways to increase cash-flow in. One option is delaying retirement.

"Many are working past that 65 year retirement age to be able to extend those income-earning years to fund retirement," Robinson said.

Robinson advises to also take advantage of catch-up contributions.

"If you have a company-sponsored 401k plan you can contribute additional funds beyond the maximum for people under 50 years of age. This year that's an additional 5,500 dollars," Robinson said.

Extra funds, like a bonus, should be saved and not spent.

"I know that's fun and you want to celebrate, but many companies allow you to defer that bonus into your retirement plan," Robinson said.

Some may consider an additional job.

"Working from home is a common thing now, or a second side job or business to supplement income now," Robinson said.

That's because social security shouldn't be relied on as a sole-source.

"Social security only replaces 25 to maybe 45 percent of your pre-retirement income," Robinson said.

Money Matters: Program helps teens find summer work

Tue, 14 May 2013 11:29:58 -0500

A lot of young people compete for a limited number of positions this time of year, but one resource arms those aged 14 to 22 with useful strategies.

"We have a group of counselors that specialize in that age group," Martin Aguirre, Workforce Solutions CEO said.

Aguirre said they are on a mission to build the local labor force and counselors on staff recognize the need for teens to earn summer money.

"We do have some families that are disadvantaged and underprivileged. Those families need teens to work during the summer to afford their school clothes and help with tuition and books if they're in college," Aguirre said.

However, a paycheck isn't the only benefit that comes with summer employment.

"Teens gain the ability to learn jobs and to explore jobs, you may try something that you realize you don't want to do," Aguirre said.

Aguirre advises brushing up on age-related working regulations that apply to youth not working for their parents.

"Ages 14 to 17, you can't do any hazardous work. You can do customer service work and basically non-motorized work. You can't really be out using chainsaws and power equipment," Aguirre said. "Ages 18 and up you're fully able to any job in the market.

One way to get the job-search started is to hit the internet.

"We have workingtexas.com which is an online job search tool utility," Aguirre said.

Also, teens interested in job-search assistance can contact the Workforce Solutions Career Center to meet with a youth counselor. Contact information is posted on this website under the "Seen On" tab.

Money Matters: Buying vs. building a new home

Mon, 06 May 2013 11:34:51 -0500

There are options for those seeking a new residence, including buying an existing home or building from the ground up.

Coby Crump, Lubbock Association of Realtors President, said there are key elements to consider.

"It's the time, the price and the relationship. A lot of people can't handle the constant decision making that goes along with a new build project," Crump said.

Crump said buying an existing property is an efficient route.

"It's simply like going shopping," Crump said. "People should create a list of the pros and cons of what they want in a new property, and they should be flexible on those."

However, flexibility isn’t on every agenda. One local couple needed something more tailor-made.

"When you're looking on the market, you never know when you're going to find the perfect home or when it's going to close. For us, we needed something a little more guaranteed," Daniel Burgner said.

Burgner and his fiance, Emily Hood, considered both buying and building.

"We figured out our budget and looked at all the different companies you could build with it was about the same price for the same amount of square footage but we could get exactly what we wanted," Hood said.

However, Crump said that’s not always the case.

"The current home we're standing in on an existing neighborhood, the average prices are between $94 per square-foot up to about $106. To reconstruct this property, without additional amenities, you'd be looking at $114 to $122 per square-foot," Crump said.

Hood and Burgner found going with a small building company offered a reasonable expense.

"Since the price was so comparable to buying a pre-owned home we decided that if we built a home we were able to pick the carpet color, the tile, the granite, the color of the cabinets and every aspect of it. That was all for the price we were looking for, instead of buying a home in that same price range and having to change things," Burgner said.

"From here we can start from scratch and buy exactly what we wanted as far as appliances and big purchases," Hood added.

While finances are a vital factor, the emotional aspect shouldn’t be overlooked.

"We are engaged and we're getting married this summer. It has been so exciting to really begin to build our life together. We are starting, literally, with the foundation of it and seeing it go up has been so exciting," Burgner said.

Money Matters: Tourism & travel impact local economy

Tue, 30 Apr 2013 10:57:55 -0500

Tourism and travel are powerful forces when it comes to generating local profit

"We feed into a variety of different industries. as a result of that it has an infiltration turning those dollars over and over again into our local economy," John Osborne, President of Visit Lubbock said.

Osborne highlights what attracts visitors.

"People come here for their healthcare, their education and for their retail shopping. We are really the hub of West Texas because this is where people gather," Osborne said.

That includes sporting events and various attractions.

"The Silent Wings Museum, The Buddy Holly Center, The Ranching Heritage Center are all great Lubbock museums," Osborne said.

Whatever the appeal, tourism is producing serious revenue.

"In 2011, which is the most recent data we have, we had just over five million visitors come to Lubbock. They spent nearly $700 million in our local economy," Osborne.

Osborne sayid tourism contributed $9.6 million in local tax receipts, while $455 were saved per household in property taxes.

To celebrate this economic impact, Visit Lubbock is introducing the "Live Love Lubbock" campaign.

"It's an opportunity for us as citizens to remember what it is that we have here in lubbock and to learn more if we don't know," Osborne said.

It's happening Saturday, May 4 through Sunday, May 12.

"We've got an itinerary that you can download online coming this Friday. It provides a listing of all the different attractions that are offering discounts or free admission," Osborne said.

Visit Lubbock will also be offering daily deals via social media all throughout National Travel and Tourism Week.

For details go to the Visit Lubbock website.