You’ve no doubt heard of shoemaker’s children without shoes. But have you ever heard of a financial planner not heeding their own advice?
We are all human and we all make mistakes. Even when we don’t take the advice we give others. So, I admit it. I have been that same “shoeless” financial planner. Continue reading “GUEST BLOG POST: We’re All Human: Even Financial Planners Make Mistakes”
Beware the financial expert who has the answer before you have even posed the question. It’s a telltale sign that he or she isn’t really interested in the facts or circumstances of your personal situation, and has something to “sell,” whether you need it or not. As the saying goes, when all you have is a hammer, then everything (or everyone) looks like a nail.
As a CFP® professional, my usual answer to most questions is “It depends…” It depends on your tax bracket, your marital situation, your age, your objectives, etc. And then we get down to work. But I have to admit, there is one situation where I am tempted to make a recommendation no matter the question, or the personal details. Continue reading “GUEST BLOG POST: She Who Hesitates, Loses”
Clipping coupons and watching out for store sales and promotions will be important, but elementary strategies, for keeping back-to-school spending in line. This year, however, parents of college-age kids may need some higher grade ideas for keeping their back-to-school expenses affordable.
School-aged children have a long list of supplies for the classroom, many of which remain unused. Keep abreast of sales on school supplies and forgo the expensive flashy versions in favor of basic notepads, folders and pencils. Here are some tips to keep your shopping to the minimum. Continue reading “GUEST BLOG POST: Back to School – Saving on Supplies”
The countdown begins. American retailers are doing a happy dance, while American kids are doing a sad shuffle. It’s time to go back to school.
Parents and providers are counting, too, not just the days, but the money they’ll need to get their students ready. As a nation, we will spend approximately $23 billion to equip and clothe our kids for grades K to 12. When our college-bound children are considered, that adds another $46 billion to the price tag. This anticipated surge in consumer spending is second only to the money we will spend for the holidays at the end of the year.
Let’s get to the root of the problem. Our national problem with debt belongs to us all. It is a startling fact that the aggregate amount owed by U.S. consumers to their creditors is approximately equal to, if not slightly greater than, our government-held debt, according to various official estimates. So, while Congress and the Administration works to clean up our national act, we could all do some housekeeping of our own. Continue reading “GUEST BLOG POST: 4 Lessons from the Debt Ceiling Debate”
Once upon a time, there was such a thing as a “risk-free” rate of interest. This was the rate at which the federal government could borrow money from lenders, who happily went to sleep at night because, after all, the United States government could always pay its bills. Unlike mortgage lenders Freddie Mac or Fannie Mae, Uncle Sam really was “too big to fail.” (His unique ability to tax and print money helped, too…) Continue reading “GUEST BLOG POST: Is the Government Going to Shutdown or Increase Our National Debt?”
401(k)s have gotten some negative press due to the market downturn during the recession, which took a big toll financially on many employees. Even so, as someone who has dedicated my whole working life to retirement planning, specifically to the 401(k), I wanted to share six important points on why 401(k) are still a better vehicle for saving for retirement.
Question: Your research is showing the gender gap in financial knowledge is still prominent. It seems there shouldn’t be a gender gap at all these days. Shouldn’t women and men be pretty equal in their financial knowledge and overall financial security?
Liz Davidson: Well, yes, you’d think so. But there are several issues at play here: Continue reading “GUEST BLOG POST: Q&A with Liz Davidson on the Gender Gap in Financial Literacy”
Wedding season is upon us, with the most popular months for weddings in this country being, in order, June, July, September, and August. Starry-eyed couples will no doubt have images of the Royal Wedding in mind as they plan their own fairy-tale nuptials. Across the country, florists are scrambling not just to assemble the usual profusions of roses and forget-me-nots, but to find leafy trees suitable for a church or temple. Continue reading “GUEST BLOG POST: Wedding Season”
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”
Summertime and the living should be easy. Unfortunately, the cost of easy living – what most of us call “vacation” – is going to be hard to swallow this year. The prospect of $6 gas and soaring airfares have a lot of Americans wondering if they can afford to travel this summer. Continue reading “GUEST BLOG POST: Vacations for Memorial Day or Thereabouts”
From the podium, I look out at the sea of faces and begin, as I always do: “Hello, I am Eleanor Blayney, CFP® Consumer Advocate for the Certified Financial Planner Board of Standards.”
At the mention of “consumer advocate,” there is a slight lifting of chins. The audience at least knows I wear a white hat, figuratively speaking. But referring to the CFP Board rarely elicits a glimmer of recognition. I can see in their eyes, “This lady has some explaining to do…”
The fact is I have a great story to tell. It’s my job to get the word out to the public that there are nearly 63,000 financial professionals in America who have qualified to be “Certified Financial Planners™ professionals” or CFP® professionals. I myself have held this designation for more than twenty years, and like my professional colleagues, I subscribe to a process called financial planning, which involves setting specific financial goals, analyzing the options for getting to these goals, and developing an individual-specific strategy.
Everyone—of all ages and financial circumstances—can benefit from financial planning. Those who have gone through the process will tell you that they face the future, even amid these uncertain economic times, with greater optimism and confidence than those who don’t.
From the back, a hand is raised: “But what about the CFP Board — what do they do?” Here’s another important message for consumers, especially those uncertain about how to find a financial advisor they can trust. The CFP Board exists to grant and uphold the CFP® certification as the recognized standard of excellence in personal financial planning.
As many readers of Financial Finesse’s blogs may know, to earn the right to use the CFP® marks, an individual must meet four “E” requirements: he or she must be Educated (have a bachelor’s degree and pass a registered course of study), Examined (i.e., pass a rigorous two-day 10-hour exam), Experienced in the profession (have three years of relevant work experience), and Ethical (i.e., subscribe to and meet the standards of a Code of Ethics.) There is, however, yet another important “E” for CFPs: namely, they are subject to Enforcement actions by the Board, such as public censure or revocation of the certification, if they are found to have violated an ethical or practice standard.
But back to me. In the coming weeks and months, you’ll be hearing a lot from me, on a variety of personal finance subjects — all the topics that CFP® professionals believe are part of a comprehensive plan. It may surprise you, but financial planning is not just about managing your investments or 401(k). It looks at how you manage all financial aspects of your life — your benefits, spending, debt, property, income, taxes, the transfer of your assets to your family. Another myth I will dispel: the idea that you need to have a lot of money or be close to retirement in order to benefit from planning. On the contrary, you need to do a lot of planning to have a lot of money and get close to retirement.
I’ll also help point you in the right direction—with easy to follow tips, resources, and guidance you can begin to implement today as well as ongoing guidance on how to find a qualified, ethical advisor and how to avoid fraudulent financial advice.
Bottom line—along with the Financial Finesse planners who contribute to this blog, I’ll always act as your advocate. Just as they do, I’ll demystify the financial planning and give it to you straight. Your finances are your own, but you are not alone in figuring out the best decisions to make.
