It’s one thing learn something it’s another thing to actually act on the information

It’s one thing learn something it’s another thing to actually act on the information

A couple days ago my wife was reading CNN in the morning when she came across an article on a peanut butter recall, we both read the article and seeing how she is thinking about starting her own parenting blog I even mentioned to her that breaking news articles like that could fill some of her content on her blog. I sort of smiled to myself throughout the day as I ran across blog articles like this here, here, here, and probably about 5 other blogs. Well about 3-4 days go by and I’m about to leave work yesterday and my wife IMs me and says “My goodness MFJ do you realize you’ve been eating the bad peanut butter!” Sure enough even though we never purchaase Peter Pan, for whatever reason last time we went shopping we picked up Peter Pan crunchy peanut butter and sure enough the product number starts out with 2111.Also turns out that I spent most of last night praying at the porcelain alter, although I doubt it is because I was eating tainted peanut butter as the stomach flu has been going around my family.

Peter Pan Peanut Butter

Needless to say this is a prime example of even if you know what you should be doing, if you don’t go ahead and use the information you have to your benefit it does you no good. You can spend all day reading personal finance blogs like this, but unless you actually act on the information you have gleemed from your research you aren’t doing yourself any favors. So take this peanut butter snafu of mine to motivate yourself to start saving for retirement now, boost your 401k deferral percentage, buy disability/life insurance, finish your will, or whatever other items you have been putting off even though you know what you should be doing and just need a kick in the pants to act on that information.

  • JohnR

    That is hilarious. But sounds like something I would do. I started reading personal finance blogs about a week ago and am already acting on suggestions from blogs. My move?
    I have about $55k in a 401k and $8k in my ROTH IRA and a spousal ROTH (just getting ready to do the 2006 contributions for those). Anyway, since $19k of the money in the 401k is from a previous employer, they allow you to roll that over even while you are still employed there. So, I’m rolling that over into an IRA. Then, I’m going to transfer about $10k of it into my Roth IRA. I’ll pay the tax man next year for that ammount. Since I’m about $10k under the next tax bracket, I’ll still pay lower taxes.

    Result:
    1) Rolling to the roth effectively increases my retirement income.
    2) I get closer to a 60/40 ratio of pretax retirement savings and post tax, keeping my current taxes under the next bracket while also managing the % I will pay at retirement.
    3) Adding a bit of insurance against tax rates increasing.

    I know this would be moot if my employer had a roth 401k, but I still think I am taking a good step toward good retirement management. I plan to to the $10k rollover again next year and will also do more of this if I change jobs.

  • JohnR

    1 more bonus… in the 15% marginal tax bracket, i’m taking a $1500 loan for 0% interest until i balance out my tax payments by filing an temporary change to my W4 in december. Speaking of that…

    I know there are penalties for owing too much at tax time. But, would there be any penalty for, say, claiming 25 deductions for most of the first part of the year, then claiming 0 and adding enough in the last month or 2 of paychecks in the year to balance out at near the point of owing 0 taxes?

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