What $40 and a Basket of Dirty Laundry Taught Me

June 03, 2011

A while back I had the opportunity to do what most college kids and moms with extra-large comforters find themselves doing. I was a frequent-flyer member of my local laundromat.

I was in the process of having a laundry room put in at my house. Great news, except that instead of having the convenience of working from my desk while my laundry churned away, I was going to have to haul my laundry elsewhere. No problem, I thought. I will tough it out. The project was set to be completed in 2-3 months’ time. Continue reading “What $40 and a Basket of Dirty Laundry Taught Me”

GUEST BLOG POST: To the Class of 2011: Financial First Things

June 02, 2011

I’m waiting, but the invitation to give a college graduation speech hasn’t arrived yet.  It’s really too bad, since I would be a great candidate.  I’m acceptably old, just of an age to be respected by the 20-something set, but not so old as to be irrelevant or needing assistance to the podium.  The fact that I’m a woman should appeal to the majority of college graduates.  Giving sage advice is what I do all the time as a financial advisor.  Plus my speech is already written. Continue reading “GUEST BLOG POST: To the Class of 2011: Financial First Things”

Priceless vs. Pricey

June 01, 2011

You’ve probably seen the commercial. A father and son enter the ballpark as the voiceover says:

Two tickets = $46

Two hot dogs, two sodas, two popcorns = $27

One autographed baseball = $50

Real conversation with eleven-year-old son = Priceless Continue reading “Priceless vs. Pricey”

Budgeting: You May not Think You Like it, but Give it a Try

May 27, 2011

So, this just might be the most embarrassing thing I have ever written. This is one blog I hope that NONE of my friends read, because this is just far too much information for them to have at their disposal. Here it is, my confession, I really like the show “Glee.” I can’t believe I’m admitting that. I watched one episode to see if it was acceptable for my kids to watch, and I won’t share my opinions about that part, but my daughter and all of her friends are huge Gleeks (fans of Glee), and now…so am I. Why do I tell you this most embarrassing of admissions? Continue reading “Budgeting: You May not Think You Like it, but Give it a Try”

What Happens When the Desire for Wealth Overtakes the Sense of Reason?

May 13, 2011

I recently saw a news article that caught my attention.  The headline was a grabber:  A woman had been arrested for stealing half a million dollars from her in-laws to help pay off her gambling debt.  She had acquired about 14 million dollars in debt over 2 years.  But the real news for me lay in the sentence that followed.  She had also won 13 million dollars over the same period of time.  This fact seemed noteworthy.  Yes, the woman had a gambling addiction.  She was arrested for stealing from her in-laws.  But, she also had an obvious winning streak.  To amass 13 million dollars in winnings takes some luck, or possibly even skill.  However, by the end of her run (which coincided with criminal charges!), with all of her time and money she was no better off, indeed much worse off, than when she started. Continue reading “What Happens When the Desire for Wealth Overtakes the Sense of Reason?”

Risk of Failure to Balance Budget

May 11, 2011

So in my last blog I outlined the real danger of government spending without a balanced budget.  If the government continues to borrow and spend, borrow and spend, borrow and spend, pretty soon Uncle Sam won’t be able to borrow any more.  If that happens – if foreign governments don’t lend the U.S. money, if investors don’t buy U.S. Government Bonds – how will the government pay for its expenditures?  This is a difficult question, and one we hope we never have to answer, but rather than cross our fingers and put our heads in the sand, we need to face this potential reality head on.  We know that the government’s going to have to do something, so here’s what you can do to be prepared: Continue reading “Risk of Failure to Balance Budget”

What the Navy Seals can Teach Us about Executing a Plan

May 06, 2011

The biggest news story all over the world right now is the U.S. Navy Seals Team Six’s mission into Osama bin Laden’s home.  This event has created an incredible amount of emotion across the globe and as of this writing, a controversy over publishing photos.  While I won’t go into a political discussion here or a religious one either, there are things that we can all take from this event and apply to our own lives. Continue reading “What the Navy Seals can Teach Us about Executing a Plan”

Reduce Financial Stress with Clarity and Direction

May 02, 2011

Overwhelming stress takes its toll.  Research shows that stress is the leading cause of disease and financial stress is the most common stressor.  Imagine the feeling of not making ends meet and not having a safety net – no emergency fund and high debt so you feel like you may never get out of it.  In our latest research, we studied stressed out employees who used our financial wellness assessment and found there were two things they all had in common — no emergency fund and high debt.  Maybe it was the combination of the two that put them over the edge of “high stress” to “overwhelming stress.” Continue reading “Reduce Financial Stress with Clarity and Direction”

Good News Doesn’t Generate Headlines

April 29, 2011

So, I was in an airport waiting for yet another flight that’s been delayed, and I read this article about famous pro athletes that go broke within what seems like days of retiring.  The story is primarily about Latrell Sprewell, a former NBA star who turned down a $30 Million offer because it wasn’t sufficient enough for him to be able to feed his kids.  That line about feeding his kids became a punch line of sorts about the rich, pampered, spoiled athletes and stars who seem to run through money like they can simply print more.  (Wait, isn’t that Tim Geithner’s job?)  Rather than piling on and saying, “Yeah those guys are _________,” I’d like to tell a story about a different kind of person than the ones that make the headlines. Continue reading “Good News Doesn’t Generate Headlines”

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”

Six Steps to Follow to Help Improve Your Credit Score

April 22, 2011

With the American economy still not firing on all cylinders, unemployment at very high levels (the rate only seems to come down when people have received the maximum number of weeks’ payments and fall out of the workforce altogether), and no sure signs of economic recovery imminent, it doesn’t surprise me that one of the topics that I talk about with people on a very regular basis is how to rebuild credit scores after a period of unemployment and falling significantly behind on debt obligations.  I don’t have any data to support this, but it seems like the average credit score of all Americans has probably dropped 100 points or more in the last several years.  (I think I just found a weekend research project for myself.  Yep, I just might need a hobby.) Continue reading “Six Steps to Follow to Help Improve Your Credit Score”

7 Steps to Follow after Losing a Loved One

April 20, 2011

My neighbor Mr. P passed away several weeks ago, and now I find myself in the difficult position of having to help Mrs. P sort through all the financial details.  Mr. P took care of all the financial decisions in their household, so you can imagine how upset and confused Mrs. P is right now.  While there are many important financial decisions that need to be made, very few need to be made right away.  Here are some steps to take following the loss of a loved one: Continue reading “7 Steps to Follow after Losing a Loved One”

Financial Planning: It Starts with a Simple Goal

April 15, 2011

When I read the article, Sumo Wrestler becomes Heaviest Man to Ever Finish Marathon, about a Sumo wrestler who ran and finished the Los Angeles marathon and in doing so became the world’s heaviest man to ever finish a marathon (~400 lbs.), I felt inspired.  If you look at most marathon runners, the LAST THING you think of is sumo wrestling.  When you look at sumo wrestlers, the last thing you think of is long distance aerobic exercise.  That’s what makes this story so interesting to me.  This guy (Kelly Gneiting), not only did something that most people would think he had no shot at doing, he has set the bar even higher.  He wants to swim the English Channel.  He knows how to set goals and not only achieve them but set them higher again after reaching the 1st goal.  Many people could learn a thing or two from him. Continue reading “Financial Planning: It Starts with a Simple Goal”

Financial Advisors Speak Financial Mumbo Jumbo

April 08, 2011

I read a great column about the financial planning/financial advisory business recently.   The column was a mock conversation between a financial planner (who wanted to look at the big picture before offering ANY advice and spoke mostly in financial industry jargon) and a prospective client (who was looking for VERY specific advice on several topics and immediate investment recommendations, “ Should I buy gold?”). Continue reading “Financial Advisors Speak Financial Mumbo Jumbo”

Top Ten Most “Foolish” Financial Decisions

April 06, 2011

It was only after my son Ethan got home from school and played an April Fools’ Day joke on me that I even realized it was April.  In the spirit of laughing at ourselves, I thought it would be fun to do my best David Letterman impression by offering what I consider to be the top ten most “foolish” financial decisions we make: Continue reading “Top Ten Most “Foolish” Financial Decisions”

Financial Goals: Looking for Greener Pastures

April 01, 2011

My girlfriend and I joke about her country life in upstate NY (almost Canada!) versus my city life in Baltimore.  While this time of year brings blossoms and green grass in my neck of the woods, her climate is still dominated by brown grass, barren trees, frigid winds and the residue of salt from the endless maintenance of those snow-laden roads.  She laughs as I brace myself for the cold every time I walk out the door of her house.  “My weather is so much better!” I joke, but deep down I am serious.  I am always wishing her weather was my weather.  I am always wishing my drive for a visit was on my terms…green, lush, and just plain old bearable. Continue reading “Financial Goals: Looking for Greener Pastures”

Happy Birthday to Me and to the 401(k)

March 22, 2011

The 401(k) is celebrating its 30th birthday this year – I wish I could say the same for my birthday next week!  I wasn’t quite old enough to be in the workforce back in 1981 (I was in junior high) when the first 401(k) was conceived by Ted Benna, a fellow Pennsylvanian like myself.  As I age I’ve gained wrinkles, a few grey hairs, and a few extra pounds.  As the 401(k) has matured, we’ve seen the growth of auto enrollment, auto escalation, target funds, and even the Roth option.

So why are some employees still not taking advantage of the 401(k) opportunity?  I hear excuses ranging from “I can’t afford to contribute,” “I don’t have faith in the stock market,” to “I plan to eventually after I’m sure I will be staying at my job.”  These are employees that could have been getting matching money over the years but just don’t realize how much that means to their bottom line.  I have actually spoken to a few employees who thought they WERE contributing, but they were NOT!  Try this trick that a client of ours used a few years ago as an eye-opener: Mail a dummy 401(k) statement with a zero balance to all your employees that are not actively participating in your plan.  I guarantee you will get at least a few calls from those workers that thought they were contributing and they are calling wondering why they don’t have any money in their account!

Money Management: Are Mega-earning Youth Receiving Too Much, Too Soon?

March 18, 2011

I read this article about Billy Ray Cyrus’ concern for his daughter Miley.  (I have a daughter, so you shouldn’t laugh at me for knowing who Hannah Montana is and being caught up in observing her personal drama.)  She isn’t the first, nor will she be the last child star to earn a fortune.  There seem to be more stories about “child stars gone wrong” than there are about those who have taken their fame, celebrity and wealth and done something good for themselves and their families.  Maybe it’s that only the train wrecks get reported – it’s not newsworthy when someone helps others or fades from the spotlight into a well balanced adult life, but that’s a different topic for a different blog.  While reading it, I started to wonder if the whole combination of youth and wealth is a poor one. Continue reading “Money Management: Are Mega-earning Youth Receiving Too Much, Too Soon?”

Commercial Fishermen Teach Financial Planning Strategies

March 14, 2011

Earlier this week I flew home on Southwest airlines – got the A ticket so I had an aisle seat and my bag stowed and I was all settled in for my flight.  A young man in his early 30’s with a 9 month old baby was the last one to get on the plane.  There wasn’t much of a chance that he’d be able to find bin space for his bag and get situated with the baby so the young man next to me (named Steve) and I did the bag switch around, and seat switch to make it all happen so the dad could sit comfortably for the flight and not have to check his carry-on bag.  I ended up sitting between them. Rich (with the baby) was a talker and we three got to know each other on the flight home and surprisingly I learned something new about finances from these travelers. Continue reading “Commercial Fishermen Teach Financial Planning Strategies”

Retirement Preparedness: A Wake-Up Call for Generation X Investors

March 11, 2011

Talking with a group of pre-retirees, one of the people in the room (a born entertainer) used Styrofoam coffee cups as visual aids to illustrate his point.  We were talking about incomes and expenses during retirement, and he broke out into a comedy routine/illustration of his financial life.  He filled a big pitcher with water and filled the first cup, broke out a Sharpie and labeled it “Pension.”  He had been an employee of the phone company for 40 years and has a very solid pension income.  The next cup he labeled “Social Security” and he filled that cup about ¾ full.  The 3rd cup he put a few drops of water into and labeled it “Investments.”  He said the 401(k) plan arrived a little too late in his career and he had not participated until the last several years of his career, plus he had a number of children that all went to college which left his personal savings and investment balances rather low. Continue reading “Retirement Preparedness: A Wake-Up Call for Generation X Investors”