3 Hidden Pitfalls Coming to a 401(k) Statement Near You

December 18, 2014

When you see your 401(k) balance or even a projection of your future balance when you retire, do you really know what that number means for your retirement? If you’re like most people, you probably don’t. A $200k balance may look like the most amount of money you’ve ever had so you can easily think it will be more than sufficient even if it turns out to be nowhere near enough to generate the income you’ll need to retire comfortably. Continue reading “3 Hidden Pitfalls Coming to a 401(k) Statement Near You”

My 5 Favorite Bank Accounts

December 11, 2014

Last week, I wrote about my favorite credit cards for rewards. This week, let’s take on another unpopular financial institution: the bank. With typically poor customer service, rock bottom interest rates, and an endless stream of fees, most people probably look at their bank as a necessary evil. But if you’re willing to look beyond the local branch, there are some good banking accounts out there. Here are my personal favorites: (for the sake of avoiding repetition, all of these banks charge no maintenance or minimum balance fees) Continue reading “My 5 Favorite Bank Accounts”

Which Credit Cards Are the Most Rewarding?

December 04, 2014

One of my favorite things this time of year is being able to use credit card reward points to cover most or even all of my holiday shopping. While it obviously doesn’t make sense to buy things just to earn rewards (especially if you can’t pay the card off in full), why not get as much as you can from purchases you’re going to make anyway? In deciding which cards to use, there are a few rules of thumb I like to follow: Continue reading “Which Credit Cards Are the Most Rewarding?”

Happy Thanksgiving!

November 27, 2014

We at Financial Finesse would like to wish you and your family a happy Thanksgiving!

3 Reasons Not to Ditch Your IRA

November 13, 2014

I read this astonishing article today titled “3 reasons to ditch your IRA.” The author makes the case against contributing to traditional IRAs but all his arguments could be used against traditional pre-tax 401(k) plans as well. Before you cancel your pre-tax retirement account contributions, let’s take a look at his arguments and why they might be problematic: Continue reading “3 Reasons Not to Ditch Your IRA”

Are You Afraid of Your Student Loan Debt?

October 30, 2014

What’s really scaring you this Halloween? If you have student loans, getting that bill might rank pretty high on the list. After all, no one likes owing tens or even hundreds of thousands of dollars  that will seemingly take forever to pay off. That doesn’t mean paying off your student loans should be your only or even top financial priority though. Here are some other goals that you might want to prioritize first. Continue reading “Are You Afraid of Your Student Loan Debt?”

What’s Your Real Risk Tolerance?

October 23, 2014

With panic sweeping the stock market, it’s time to check your risk tolerance score. (You did take a risk tolerance quiz like this before investing your money, right?) The whole purpose of determining your risk tolerance is to use it as a guideline to create a mix of investments that you can “tolerate”…in other words, that you won’t bail out of during times like these. After all, if you do bail out and fail to get back in the market in time (and if you figure out a way to time the bottom, please let me know), you’ll miss the eventual recovery and turn a temporary loss into a permanent one. Continue reading “What’s Your Real Risk Tolerance?”

Should You Have an Anti-Budget?

October 16, 2014

A friend of mine recently sent me this blog post called “How the Anti-Budget Can Save Your Wallet.” The basic premise is that a traditional budget isn’t realistic for most people because they just don’t stick to it and it isn’t even necessary to have one. Instead, it suggests simply setting aside your savings first (at least 20% of your income) and just spending the rest without having to categorize each of your expenses. Continue reading “Should You Have an Anti-Budget?”

How to Minimize Your Investment Costs

October 09, 2014

In my last 2 blog posts, I discussed the various ways financial advisors can be paid and how they can present conflicts of interest to an advisor. But how would your actual investment returns be affected? Let’s take a look at some scenarios: Continue reading “How to Minimize Your Investment Costs”

Should You Use a Fee-Only Advisor?

October 02, 2014

Last week, we discussed the dangers of using  a commissioned-based financial advisor. One way to avoid those conflicts of interest is to work with a fee-only (not fee-based, which is fees PLUS commissions) advisor. Instead of selling investments for a commission, they typically charge a fee that’s a percentage of the assets they manage for you. You can search for a fee-only advisor through NAPFA, the National Association of Personal Financial Advisors. Continue reading “Should You Use a Fee-Only Advisor?”

Should You Use a Commission Based Advisor?

September 25, 2014

When it comes to getting advice with your money, are you suspicious of financial advisors? How can you find one that you trust? We received another question from our Ask a Planner campaign on Facebook last week asking “Is Edward Jones looking out for the best interest of clients? Is it best to rather use a fee based CFP®?”   Continue reading “Should You Use a Commission Based Advisor?”

When Should You Sell Your Mutual Fund?

September 18, 2014

As the stock market reaches new highs, have you been wondering if you should sell and take profits before the next eventual dip? If the stock market does take a dip, should you sell and cut your losses? With the launch of our “Ask a Planner Week” on Monday, here was the first question we received: “I have absolute percentage rules for taking profits and losses on individual stocks. When should one consider taking profits or losses on index funds?” Continue reading “When Should You Sell Your Mutual Fund?”

The Three Most Useless Things a Financial Columnist Tells You

September 11, 2014

I often like to question much of the conventional wisdom of the financial services industry so I was intrigued when I saw this article titled “The four most useless things financial advisors tell you” by Howard Gold. Instead, I found myself questioning most of the conclusions in the article itself as pretty useless (with one exception). Let’s take a look at each of these “four most useless things:” Continue reading “The Three Most Useless Things a Financial Columnist Tells You”

The New Cell Phone Plan That’s Allset to Save You Money

September 04, 2014

A couple of years ago, I wrote about prepaid cell phone plans and how they can save you money. I ended up switching from the LG Optimus V on Virgin Mobile to the Samsung Galaxy Nexus on Ting. However, I’ve recently had some problems with my phone losing data connection and battery power so I decided to upgrade again. That’s when I discovered Verizon’s new “Allset” prepaid plan. Here’s why I think it offers the best deal in cell phone plans right now: Continue reading “The New Cell Phone Plan That’s Allset to Save You Money”

Lessons From a Tragedy

August 28, 2014

If you’re like me, you were shocked and horrified when you found out about Robin Williams’ death. I can’t tell you how many interviews I listened to and movie clips I watched of him in the days after the horrible news. Buried in all that media coverage, I also saw this article pointing out that unlike so many other celebrities with untimely ends, at least Williams spared his family additional stress and grief by taking care of his estate planning with a revocable trust. Continue reading “Lessons From a Tragedy”

Your House Needs a Vacation Too

August 26, 2014

With summer coming to a close, have you planned your last vacation of the season?  As you pack your bags and finalize your itinerary, make sure to plan a holiday for your home as well. Specifically, give your home a rest regarding the electric use when you are away.  Here are four tips on how: Continue reading “Your House Needs a Vacation Too”

Should You Buy Life Insurance as an Investment?

August 21, 2014

In response to this article we published on Forbes, we received this question on our Facebook page:

I recently read your article “Should You Use Life Insurance as an Investment?” on Forbes. I wanted to know how this article would apply to me. I just graduated and started my first job that pays pretty well. I don’t have any dependents so I didn’t think about life insurance until I meet with a financial advisor. He said starting insurance young is a better investment where I could keep safe dollars and be more risky in other parts. Would I be better off buying insurance now and benefiting from compound interest or use that money in other investments? Thanks! Continue reading “Should You Buy Life Insurance as an Investment?”

In Defense of the Traditional 401(k)

August 14, 2014

Should you make pre-tax or Roth 401(k) contributions? I recently read this article by Penelope Wang called “The Great Retirement Account You’re Not Using” that argues for Roth contributions. However,  I still think pre-tax contributions make more sense for most people. Here is my response to each of her main arguments: Continue reading “In Defense of the Traditional 401(k)”

Would You Rent a Stranger’s Bedroom on Vacation?

August 07, 2014

Have any remaining travel plans before the end of the summer? You may have noticed that with gas prices and airfare on the rise, travel can be quite expensive. I’ve written previously about using ride sharing services like Uber or Lyft to save on short distance trips but the same sharing concept can be applied to longer, overnight trips with services like Airbnb. Continue reading “Would You Rent a Stranger’s Bedroom on Vacation?”