Morningstar's 30-Minute Money Solutions

The quick and easy way to manage money and achieve financial goals

The recent economic meltdown has left people in terrible financial shape with little idea of how to turn things around. Using Morningstar's time-tested strategies and sensible approach to money management, Morningstar's 30-Minute Money Solutions: A Step-by-Step Guide to Managing Your Finances breaks down important financial tasks into do-able chunks, each of which can be accomplished in 30 minutes or less. The practical, no-nonsense book

• Lays out the tools to get organized, including how to create a filing and bill paying system
• Details how to find the best uses for one's money, as well as how to properly invest for savings, college, and retirement
• Other titles by Benz: Morningstar® Guide to Mutual Funds: Five Star Strategies for Success

These are uncertain times. Morningstar's 30-Minute Money Solutions provides expert guidance on all aspects of personal money management, and it does so in quick, easily digestible steps.

Foreword xi

Preface xiii

Acknowledgments xix

Part one: Find your baseline 1

Chapter 1: Calculate Your Net Worth 5

Chapter 2: See Where Your Money Goes 11

Chapter 3: Set Your Financial Goals 17

Chapter 4: Create a Budget 23

Part two: Get organized 29

Chapter 5: Create a Bill-Paying System 33

Chapter 6: Create a Filing System 37

Chapter 7: Create a Master Directory 43

Part three: Find the best use of your money 47

Chapter 8: Determine Whether to Pay Down Debt or Invest 51

Chapter 9: Decide Where to Invest for Retirement 59

Part four: Get started in investing 65

Chapter 10: Create an Emergency Fund 69

Chapter 11: Find the Right Stock/Bond Mix 75

Chapter 12: Create an Investment Policy Statement 81

Chapter 13: Invest for Short- and Intermediate-Term Goals 89

Chapter 14: Create a Hands-Off Long-Term Portfolio 97

Part five: Invest in your company retirement plan 105

Chapter 15: Determine How Good Your Company Retirement Plan is 109

Chapter 16: Decide between a Traditional and Roth 401(k) 117

Chapter 17: Select the Best Investments for Your Company Retirement Plan 125

Chapter 18: Make the Most of a Subpar 401(k) Plan 131

Part six: Invest in an IRA 137

Chapter 19: Determine What Type of IRA is Best for You 143

Chapter 20: Identify the Best Investments for Your IRA 147

Chapter 21: Determine Whether to Convert Your IRA 155

Chapter 22: Roll Over Your Retirement Plan into an IRA 163

Part seven: Invest for college 169

Chapter 23: Find the Right College Savings Vehicle 173

Chapter 24: Find the Right 529 Plan 181

Chapter 25: Select the Right Investments for Your College Savings Plan 187

Part eight: Invest in your taxable account 197

Chapter 26: Identify the Best Investments for Taxable Accounts 201

Chapter 27: Manage Your Portfolio for Tax Efficiency 209

Chapter 28: Harvest Tax Losses 215

Part nine: Invest during retirement 223

Chapter 29: Determine Your Portfolio Withdrawal Rate 227

Chapter 30: Build an In-Retirement Portfolio 233

Chapter 31: Find the Right Sequence of In-Retirement Withdrawals 241

Part ten: Monitor your investments 245

Chapter 32: Conduct a Portfolio Checkup 249

Chapter 33: Rebalance Your Portfolio 257

Part eleven: Cover your bases on estate planning 263

Chapter 34: Get Started on Your Estate Plan 269

Chapter 35: Handle Beneficiary Designations 275

Chapter 36: Create a Personal Legacy 281

About the author 285

Index 287

“This book isn't one that requires you to read it all the way through, as the author freely admits. But if you have a question about retirement plans, emergency funds, 529 plans or the right stock/bond mix, among many other subjects, it's a fine financial road map. Benz's conversational, straightforward make this a pleasant and very useful read.”
—Associated Press, January 2010

CHRISTINE BENZ is Director of Personal Finance for Morningstar. She is also editor of the monthly newsletter Morningstar^® PracticalFinance and writes a weekly column on Morningstar's popular Web site, Morningstar.com. Benz is coauthor of Morningstar^® Guide to Mutual Funds: 5-Star Strategies for Success and is author of the book's second edition. Before assuming her current role in 2008, Benz served as Morningstar's director of mutual fund analysis. She has also served as editor of Morningstar^® FundInvestor™, a monthly newsletter for individual investors. Benz has been widely quoted in print and online media, and has made numerous appearances on national radio and television shows. For more information, visit the 30-Minute Solution Resource Center online at www.morningstar.com/goto/30MinuteSolutions. Today's investor faces money challenges that were unimaginable just a few short years ago. How can you meet the demands of housing, college savings, retirement, and other financial goals without spending all of your spare time focused on them?

Christine Benz, Director of Personal Finance for Morningstar, gives you the tools for tackling your money challenges with this practical guide. Morningstar's 30-Minute Money Solutions provides investors at all life stages with an effective road map to getting their financial affairs in order by breaking the process down into short, manageable 30-Minute steps. To keep your finances on track, you'll also receive access to an exclusive Web site where you can download worksheets, use financial calculators, find additional money-related articles, and view up-to-date lists of the best investments for your portfolio.

Written in a straightforward and easy-to-follow style, this reliable resource:

• Lays out the tools to get organized, including setting up a system for tracking your money and important financial documents, setting financial goals, and developing a budget and financial plan

• Shows you how to match the right investments to your goals—whether you're making your first investment or have an established portfolio of securities—using time-tested investment strategies and Morningstar insights

• Coaches you on how to tend to other important financial tasks, such as estate planning and managing taxes

Read Morningstar's 30-Minute Money Solutions in its entirety for a comprehensive money plan, or read select chapters to meet specific challenges, such as saving for college or reviving an ailing retirement plan. It's the ideal money guide for both new and experienced investors from the most trusted name in investment research, Morningstar.

Today's investor faces money challenges that were unimaginable just a few short years ago. How can you meet the demands of housing, college savings, retirement, and other financial goals without spending all of your spare time focused on them?

Christine Benz, Director of Personal Finance for Morningstar, gives you the tools for tackling your money challenges with this practical guide. Morningstar's 30-Minute Money Solutions provides investors at all life stages with an effective road map to getting their financial affairs in order by breaking the process down into short, manageable 30-Minute steps. To keep your finances on track, you'll also receive access to an exclusive Web site where you can download worksheets, use financial calculators, find additional money-related articles, and view up-to-date lists of the best investments for your portfolio.

Written in a straightforward and easy-to-follow style, this reliable resource:

• Lays out the tools to get organized, including setting up a system for tracking your money and important financial documents, setting financial goals, and developing a budget and financial plan
• Shows you how to match the right investments to your goals—whether you're making your first investment or have an established portfolio of securities—using time-tested investment strategies and Morningstar insights
• Coaches you on how to tend to other important financial tasks, such as estate planning and managing taxes

Read Morningstar's 30-Minute Money Solutions in its entirety for a comprehensive money plan, or read select chapters to meet specific challenges, such as saving for college or reviving an ailing retirement plan. It's the ideal money guide for both new and experienced investors from the most trusted name in investment research, Morningstar.