What Fantasy Football Can Teach Us About Investing

December 14, 2011

I fielded my first fantasy football team back in the late 90’s, and what I enjoyed most about it was that it gave me an excuse to watch games I would otherwise care less about.  (I mean after all, unless you live in St. Louis or Cleveland, why would anyone have a reason to watch a Rams versus Browns football game?)  This year I decided to introduce fantasy football to the staff at Financial Finesse.  Those of us that had played before had to convince some of the “rookies” that experience wasn’t necessary (hey, every league needs a patsy) and that they would have fun regardless of the outcome.  The truth is, it has been fun, but more important than the bragging rights are the lessons it can teach us about investing. Continue reading “What Fantasy Football Can Teach Us About Investing”

7 Things to Give Thanks For (even in this economy)

November 24, 2011

Happy Thanksgiving! As a financial planner, I talk to a lot of people with all kinds of financial difficulties and I try to write about how to solve some of those challenges in this blog. But today is different. Thanksgiving isn’t about dwelling on what we don’t have, but about giving thanks for what we do. With the economy in the dumps, you may not feel that you have much to be thankful for, especially when it comes to your finances, but here are 7 things to consider: Continue reading “7 Things to Give Thanks For (even in this economy)”

Do Employees Need (or Even Want) Help with Asset Allocation Decisions?

November 22, 2011

When it comes to investment planning, sometimes it pays to get a little help (or at least a second opinion).  But what are the best options for providing guidance to employees and how does online advice fit into the mix?  Retirement plan participants have a variety of options available when seeking help regarding their investment selections.  Professionally managed accounts, target-date mutual funds, online advice, and the use of financial advisors outside the retirement plan are some of the most common sources of investment guidance employees typically utilize.  While these tools are proven to be effective, there is still a need to increase usage rates in order to improve the confidence employees feel relating to the way their investments are allocated. Continue reading “Do Employees Need (or Even Want) Help with Asset Allocation Decisions?”

How Being a Pro at Fantasy Football Can Translate to Investing

October 24, 2011

This is my third year playing fantasy football so I am no longer a novice.  When I finished second to last my first year, no one took notice because they figured I was a rookie and of course, a girl who doesn’t know anything.  They were right.  Last year in a complete surprise to everyone, especially me and especially to my husband, I took first place.  A big shout out in thanks to Sebastian Jankowski the kicker for the Oakland Raiders, who if you looked at the points he brought in, you’d have thought he was a running back, and to my quarterback Jay Cutler Chicago Bears who had a great season last year.  This is a new season with new challenges, and once again I am holding my own and enjoying playing in my family league.  Truthfully, I like to play to stay connected with family and friends, and I have to admit that I love to “trash talk.” Continue reading “How Being a Pro at Fantasy Football Can Translate to Investing”

When in Doubt, Balance it Out

October 05, 2011

As more and more of the onus of saving for retirement falls on employees, more and more employers will look for ways to enhance their retirement savings plans.  One of the emerging plan features that many employers are adopting is the addition of a Roth option in their 401(k) plan.  If and when an employer adds this option, it seems inevitable that employees will immediately ask “which option should I use?”  To help shed some light on this basic question, here are some things to consider: Continue reading “When in Doubt, Balance it Out”

One of My Favorite “New” Features of 401(k) Plans

September 16, 2011

I would love to write about my favorite flavor of ice cream (Ben & Jerry’s Karmel Sutra) or other favorite foods (too many to list, which is why it would be fun to write about it), but I’m having trouble finding a way to make a connection into the financial world.  I just got done watching the Food Network’s “Best Thing I Ever Ate,” so forgive me for the food references.  While watching that, I happened to be reading an article in a financial journal at the same time (is that multi-tasking or A.D.D.?) about features that are available today in 401(k) plans that weren’t widely available 10 years ago.  They listed things like auto-enrollment and a cap on the percentage of company stock allowed in the plan, as well as a few others.  The one that really stood out to me as something that, if I could wave a magic wand and get everyone to enroll in I’d do it in a second, is the automatic rebalancing feature.  Why do I like this feature so much?  Well, I’ve seen it work as a means of managing your investment risk.  I’ll use an example to illustrate my point.  Continue reading “One of My Favorite “New” Features of 401(k) Plans”

Why Didn’t I Sell?

August 08, 2011

“Why didn’t I sell before the market dropped?”  is a question I got from a caller to our helpline last week.  This is a common question, as you can imagine, after a big drop in the market or during an extended bear market.  This caller was extremely frustrated because he was stuck between a rock and a hard place.  He had already turned in his paperwork to retire within the month (too late to cancel) and was making a transfer from his 401(k) to a pension purchase to provide additional fixed income – essentially changing the goal of this money from long term growth to income.  The market drop would lower his monthly income for the rest of his life because his lump sum was being used to calculate his monthly income payment.  He was distraught. Continue reading “Why Didn’t I Sell?”

Wine Tasting and Your 401(k)

July 29, 2011

Yesterday was a great day.  I spent the day with my girlfriend Julie, doing some wine-tasting along the Finger Lakes Wine Trail in upstate New York.  This area is known for wineries dotted along the lakes, where you can spend the day traveling along, checking out what each has to offer.  The wineries range from quaint and home-spun, to modern and spacious.  Continue reading “Wine Tasting and Your 401(k)”

Investment Secrets Revealed

June 15, 2011

Several weeks ago I was in Chicago giving a workshop on investing.  Every time I give this workshop, I almost always get asked the same thing, “Greg, what is the best thing to invest in right now?”

First of all, if I really knew what the absolute best things to invest in at any time was, do you really think I’d be writing this blog?  I get the sense that people think financial professionals have some sort of secret knowledge when it comes to investing.  They think we can read the tea leaves and know where to invest, and where not to invest.  I can’t blame them, though.  I think the industry has done this to them on purpose.  For years financial institutions have spent countless dollars trying to convince you that they have an edge, a better way to research, a better strategy for picking winners, etc. Continue reading “Investment Secrets Revealed”

How Do I Start to Educate Myself About Investing?

June 09, 2011

Now that my wife and I have, for the most part, settled in our new hometown of Chicago, I have decided that my vacation from working out is officially over.  So last week I actually completed my first full week of the P-90X workout (haven’t joined a gym yet).  I must tell you that in some of the workouts, yoga and kenpo for example, I felt like an absolute klutz!  That got me to thinking about how many people might feel when they want to learn about investing on their own for the first time.  The good news is that like learning yoga (and kenpo), with time, continued education and practice, you will become more confident in your investing.  With that, take a look at these tips to get you started in the wonderful world of investing. Continue reading “How Do I Start to Educate Myself About Investing?”

Should I Manage My Investment Account or Use a Financial Advisor?

June 02, 2011

If I had a dime for every time I heard this question – I would have a lot of dimes! This is actually one of those questions I feel shows that an investor has entered the introspective phase of their investing life. The good news here is that the sooner you can answer this question, the quicker you can get on with the business of putting your money to work for you! Continue reading “Should I Manage My Investment Account or Use a Financial Advisor?”

What Should I Consider When Taking My RMD?

May 05, 2011

I was doing some workshops for a group of pre-retirees (talk about envy!) and we were going over a lot of the basic questions that group often has, how do I know if I have enough money, how do I plan for medical costs, what should I do about my investment allocations, etc.  But the question that seemed to generate a lot of interest was if there were any strategies surrounding taking the Required Minimum Distribution (RMD).  The strategies listed below can help you be more efficient in deciding which dollars you should consider using to pay your RMD. Continue reading “What Should I Consider When Taking My RMD?”

Make High Pay Off Financial Moves

April 25, 2011

You wouldn’t think I would get any insight about my finances from playing “Bubble Breaker” on my Palm Treo.  It seems like a complete waste of time but overall, I see playing games on my phone as a time passer – waiting at the doctor’s office to be seen or waiting for a phone call.  These little pockets of time don’t give me enough time to get something done and I hate to get deep into an article I can’t finish because I will always wonder what the outcome was.  So I play Bubble Breaker on my phone.  Even when I changed to a new phone, I keep the old one without a Sim card to play this goofy game. Continue reading “Make High Pay Off Financial Moves”

Dividends Matter

April 11, 2011

I thought about the power of dividends when I worked on my mother-in-law’s taxes.  She has been selling off an investment to help pay for her care and as the one who helps her with her taxes, I had to find her basis (what she originally paid for it) to report it on her tax return.  She’d owned this mutual fund as long as I’ve known her and that means she has been taking a dividend from it for almost 20 years.  When I dug into it, what I found was that she had a loss – her initial investment not only hadn’t grown but was less than she put in.  What a disappointment! Continue reading “Dividends Matter”