Choosing the Best Investments

December 13, 2016

Planner: Daphne via Helpline Consultation

Problem: Wanted to learn how to choose the best investments during her company’s annual investment selection time.

Suggested Action Steps: I explained the different investment options and helped her see how her current mix of 100% stocks was way riskier than she understood or wanted.

Results: She changed to a more appropriate mix for a retiree.

Testimonial: “Thank YOU Daphne…it was good talking with you and I now am confident and happy about this decision…was having some sleepless nights. You have a wonderful day!” -Anonymous

Planning for College Costs

December 13, 2016

Planner: Greg via Webcast Particpation

Problem: Wanted to better understand how to prepare for children’s college costs.
Suggested Action Steps: Decided she should review cost estimates, plan ahead, and understand her options and resources.

Results: She was motivated to be more proactive.

Testimonial: “Thanks, Greg!  This was easily one of the best webcasts I’ve ever attended.  Very information and helpful.  You taught me a ton and, more importantly, got me really motivated to be more proactive.” – Anonymous

Refinancing to Save Money

December 13, 2016

Planner: Greg via Helpline consultation

Problem: She wanted to know if it made sense financially to refinance her mortgage.

Suggested Action Steps: We reviewed the length of her current mortgage and renewal terms, the current versus new P&I payment, and the cost to close to determine that refinancing was the right thing for her to do.

Results: We determined she should refinance and as a result, she will save $17,000 in interest.

Testimonial: “Thank you so much for all your assistance. I can live with those numbers a bit better… more digestible. Thank you Greg. I am more at peace with my decision now to refinance the home due to your assistance. Thanks again for all your help.” – Anonymous

Dealing With a Spouse’s Job Loss

May 23, 2016

Planner: Tania via 1 on 1 consultation

Problem: Her husband lost his job and she wanted some guidance on prioritizing their finances.

Suggested Action Steps: We discussed creating a solid budget and leveraging online tools to track their expenses. We also pushed back ideas around adding debt and moving to a different home until they got their finances under control.

Results: She created a budget and started tracking her expenses like we had planned. In addition, she managed to pay off all of her credit card and reduce her student loan debt! Her plans to avoid more debt and moving stayed in place.

Testimonial: “I hope all is well.  I’ve been reflecting on my financial situation over the past couple of days and I feel GREAT!!!  I am so much more optimistic about the future and for the first time in years, I feel like I have a pretty good handle of my finances.  I’ve been saving more and spending less on non-essential things.  I’m taking steps to reduce my student loan debt and I have no credit card debt as of today.  Pretty liberating!  I am so thankful that you talked me out of supporting my husband by getting more student loan debt and for getting me to think through the financial implications of the move to PA.  You have no idea how glad I am that we did not make that move.  I’m on Mint.com every chance I get and setting monthly goals has helped me stay on task.  Love that site!  Anyway, I am really thankful for your insight and support.  I’m not sure that I’d be in this place had I not spoken to you when I did.  Please forward my email along to your supervisor.  THANK YOU!!!!!!” – Anonymous

Finding the Right Mix of Investments

May 10, 2016

Planner: Mark via 1 on 1 consultation

Problem: She needed to understand how her 401k worked and figure out the right mix of investments. She also wanted some tips on choosing a financial planner after she retired.

Suggested Action Steps: We reviewed specific 401k distribution options available through her employer’s retirement plan and discussed the pros and cons of directly transferring her 401k balance to an individual retirement account (IRA) once she retired. Completing a risk tolerance and asset allocation questionnaire would also help her see which balance of stocks, bonds, and cash might be appropriate given her time horizon for retirement and her individual appetite for investment risk. We also reviewed online tools available to assist her with locating and interviewing financial planners in her area if she needed additional financial guidance in the future.

Results: Armed with a better understanding of investment choices and distribution options within her 401K, she was able to rebalance her investment portfolio and select monthly distributions to support her income needs in a few months when she retires. In addition, she began to identify and interview a variety of Certified financial Planner(tm) professionals in her area for consideration in the future when she is looking for additional financial guidance.

Testimonial:  “I was so relieved after our meeting I felt like a ton of bricks had  been lifted from my shoulders!” – Anonymous

Catching Up on Retirement Savings

May 09, 2016

Planner: Doug via 1 on 1 consultation

Problem: He was approaching retirement and needed to find more ways to save money.

Suggested Action Steps: We discussed using the catch-up contributions available in his 401k and also funding a Roth IRA for him and his wife for last year and the coming year.

Results: He ended up following through on our discussion, saving on taxes, and put quite a bit more aside for retirement.

Testimonial: “Thanks for your help the other day, Doug!  After you helped me realize that I could contribute to my Roth IRA in addition to having maxed out my 401K contributions (I will check on this too), I went ahead and contributed in time for 2015, and fully contributed to my 2016 IRA as well.” – Dave T.

Defining Your Financial Future

May 09, 2016

[fusion_text]Planner: Paul via 1 on 1 consultation

Problem: She needed to create a new financial plan for her life after her divorce. This included putting together a new budget, saving and spending plan, retirement & home purchase funding plan.

Suggested Action Steps: We discussed using a Rate Escalator function in her 401(k), putting in place automatic debits for building an emergency reserve & house down payment, and having her start to take part in workshops and follow up sessions to learn about investing, budget tools and college preparation for kids.

Results: She ended up adjusting her 401(k) investments, put automatic debits in place to fund her cash reserve, started saving for a house down payment, and also started funding her HSA.

Testimonial: “I wanted to thank you for your patience and kindness!!  I was very intimidated to looking into my financial future, because I wasn’t sure that where I wanted to go was possible.  You gave me direction that is both hopeful and manageable.  I am going to study what you’ve given me, and I am confident that I will be able to work towards a financial future that will fit the lifestyle that I hope to live.” – Valerie B.[/fusion_text]

Allocating Extra Money Well

March 17, 2016

Planner: Scott via Financial Helpline

Problem: She wanted guidance on how to prioritize use of her bonus income.

Suggested Action Steps: We discussed paying down her vehicle loan, and using future money to accelearate paying off of student loan. We ran a retirement calculation to focus on this long term goal along with paying for her children’s future college costs.

Results: She paid off her debt, began saving more for retirement, while also planning for her children’s education.

Testimonial: “The Financial Finesse program helped me prioritize various financial issues, such as reduction of debt, retirement planning and saving for my childrens’ college tuitions.” – Financial Helpline Caller

Dealing with Disability

March 17, 2016

Planner: Michael via 1 on 1 Consultation

Problem: Her husband broke his back and became disabled, which led to their income dropped to only disability income. She was only contributiing 2% to her 401k & it was all in Stable Value.

Suggested Action Steps: We discussed getting her contributions up to 6% & broadening their allocations. I recommended looking into Target Date funds, downsizing their residence, and getting an estate plan in order.

Results: She increased her contribution to 6%, prepared their estate plan and re-allocated her 401k.  They also listed their house for sale with the goal of downsizing, reducing their housing costs & being able to save money on a monthly basis.

Testimonial: “The planner helped me to understand how to better save and invest my money, he put it in terms I could understand and encouraged having my spouse be on future calls.” – Anonymous

Escaping Enormous Debt

March 17, 2016

Planner: Michael via 1 on 1 Consultation

Problem: She was over $160,000 in student loan debt and her loan payments were greater than her monthly income.  She was really worried because her wages were about to be garnished.

Suggested Action Steps: Since she was suffering severe financial hardship, we discussed consulting an attorney to see if bankruptcy would be a good option.

Results: She contacted an attorney who specializes in bankruptcy, specifically those including student loans.  The early indication was that her case looked promising and she may be able to arrange a payment plan that enabled her to live her life AND deal with the debt.

Testimonial: “My consultation was amazing, I think I am just in a different situation than most with overwhelming student loan debt. The financial advisor I met with was awesome and I would recommend this to anyone!” – 1 on 1 Consultation Attendee

Balancing Financial Priorities

March 17, 2016

Planner: Michael via 1 on 1 Consultation

Problem: She was worried about funding retirement & her child’s college tuition at the same time

Suggested Action Steps: She had lots of income coming in each month, but had no idea where it was going, so we tried to figure that out.

Results: We found where her money was going, and she was able to reduce a lot of spending on wants rather than needs. She is now funding the bulk of her college costs with that money.

Testimonial: “The website that was recommended to track monthly purchases was very helpful.  It gave a clear line of site to where our money was going each month and will help us be more thoughtful when making purchases.” – Lynn M.

Evaluating Financial Opportunities

March 17, 2016

Planner: Michael via 1 on 1 Consultation

Problem: Her husband was offered an opportunity to purchase additional pension dollars with his 401k funds.  They were looking to know if it made sense.

Suggested Action Steps: We ran projections at a few retirement ages with and without the pension purchase.

Results: At the end of the meeting, they clearly understood the facts, the risks & rewards of each choice and were able to make the best decision for their family.  In the end, they decided that the certainty of the pension fit perfectly with their goals.

Testimonial: “I’ve never consulted a financial planner before – I assumed they were only for people who make more money than my husband and I do.  I was pleasantly surprised after contacting the Financial Finesse helpline to discover that there is help for every facet of financial planning.  There are no questions or judgements about where we are financially – just thoughtful advice on how to make better financial choices for the near term and the future.” – Financial Helpline Caller

Paying for College

March 17, 2016

Planner: Michael via 1 on 1 Consultation

Problem: He was really stressed about how to simultaneously pay for his son’s college education while saving for retirement.

Suggested Action Steps: We talked about lowering his 401k contribution from the maximum (18k/yr) to 6% to capture his company’s match, and then using the extra cash to pay for part of college.

Results: His cash flow improved and his son got a partial academic scholarship. Now he will be able to pay for college and have absolutely no impact on his ability to retire comfortably.

Testimonial: “Peace of mind. It was the best hour I ever spent with a Financial Consultant. I was offered a great roadmap for paying college tuition for my children, in addition to outstanding advice for future investments.” – Guy M.

Revising Budgets

March 17, 2016

Planner: Michael via 1 on 1 Consultation

Problem: She had just gone through a divorce & was only contributing 2% to her 401k.  She thought she was going to have to work forever & never be able to retire.

Suggested Action Steps: We discussed increasing her 401k contributions to 6% after finding areas in her budget that could be downsized. We also talked about using the Rate Escalator feature with a 2% annual increase (had been getting 4% annual increases, so 2% was a way to get to maximum contribution in less than a decade)

Results: After the increase in contributions, her retirement projections had her on track.  The added savings allowed her to buy a home within 3-5 years at a mortgage cost lower than her current rent.

Testimonial: “I was nervous that I would never be able to save enough for retirement or afford the contributions. The planner showed me how to do this without lowering my monthly take home pay too low. I am currently saving to buy a home.” – 1 on 1 Consultation Attendee

Rebuilding After a Divorce

March 17, 2016

Planner: Michael via 1 on 1 Consultation

Problem: She got a late start on retirement savings due to being a stay at home mom & then going through a messy divorce.  Needed to go from 0 to 100 real quick.

Suggested Action Steps: We discussed looking for expenses  that could be reduced and getting serious about saving. I suggested making maxmimum 401k contributions, including catch up contributions while paying additional principal on her mortgage.

Results: Before our meeting she was only able to  replace 20% of her income in retirement.  With the changes implemented, we got that up to 55%.  With additional savings, she could get to 80% in a few years.

Testimonial: “I went into the consultation with a focused list of questions and a tentative plan to help me reach my retirement goals. One day after the consultation, I implemented all of the plans discussed and feel more confident now about my ability to meet my retirement timeline.” – Pamela W.

Tackling Credit Card Debt

March 17, 2016

Planner: Michael via 1 on 1 Consultation

Problem: She was loaded up with credit card debt.

Suggested Action Steps: We discussed using her bonus to knock down highest interest debt, then paying off remaining debt starting with the highest interest rate & moving to lower rate debt.  With the Debt Blaster worksheet, we estimated 18 months to go from totally stressed to totally debt free.

Results: Two years later, the debt was gone and the 401k contributon was increased from 3% to 15%.

Testimonial: “My financial planner, Michael, was a life saver.  I had so much credit card debt and saw no way out.  He explored every option with me – explained that I could borrow from my 401K and helped me reduce my credit card debt by half.  He also devised a plan that will help me pay off the rest of the credit card debt in a year. Now there is an end in sight and I am on my way to becoming debt free and financially stable!” – 1 on 1 Consultation Attendee

Dealing with Reduced Income

March 17, 2016

Planner: Mark via Financial Helpline

Problem: Her family was struggling with reduced income after her husband’s job was downsized and he could only find part time work.. Even with her substantial promotion, they were struggling to get ahead of credit card payments and medical bills.

Suggested Action Steps: We reviewed her budget; compiled a debt inventory, ran a Debt Blaster strategy, and discussed negotiating with creditors for better terms and payment extensions.

Results: It took a few months, but they are now cash flow positive. Using the debt blaster strategy, aggressively applying tax refunds and bonuses from work, they were able to pay off all but two credit cards, and are still aggressively paying these balances down. This increase in cash flow also allowed them to begin rebuilding thier emergency fund. Contacting their creditors helped them not only get lower interest rates and extend payment terms, but the hospital also agreed to forgive ALL outstanding medical bills. Although it was difficult, they now have much less financial stress and can begin to see a positive way forward toward becoming debt free and saving more for retirement.

Testimonial: “Since we last talked, it’s been a very difficult few months.  Many things have happened and we hit a point financially where I didn’t think we’d make it out unscathed.  We were overdrawn most of the time and at any given moment, we were behind on many bills. However, we are better now.  [We] sat down and took inventory of everything financial and then split up the bills to call and ask for help where we could.  [Auto lender] gave us 2 “free” months of no car payment (tacked on to the end).  [Hospital] wrote off ALL of our outstanding balance to them!  [Credit Card Co.] gave us 45 days of no payment and then for 12 months took our very high interest rate to 9.99% where we’d be hitting the principal hard without all the interest. We got back way more in our tax refund than we were expecting/hoping and my bonus check was double what we expected.  We have managed to pay off all the credit card debt except the two highest ones… Now that we are in this [better] place, I wanted to visit with you again.  I think we need a bit of time to build that “floor” you spoke of earlier, but I think it’s a good time to revisit our financial situation and start thinking about what positive changes we want to (and can) make going forward (increase 401k, tithe, savings, pay off debt etc.)” – Anonymous

Increasing Retirement Contributions

March 06, 2016

Planner: Bruce via 1 on 1 Consultation

Problem: She was curious to learn whether she was on track to reach her retirement goals

Suggested Action Steps: We ran a retirement estimator to see if she was on track to reach her goals & tried to see if she could take advantage of the Contribution Rate Escalator

Results: The key action step that she acted on was signing up for her company’s contribution rate escalator. She went in and insured that every may when she gets her merit increase, she will be increasing her contribution rate by 1% each year. This step will get her closer to her goal of 70% income replacement in retirement.

Testimonial: “The session has opened my eyes as to how I was really doing in comparison to what I should be doing.  Time flies.  Act before it is too late!” – 1 on 1 Consultation Attendee

Making Difficult Financial Decisions

March 06, 2016

Planner: Doug via Financial Helpline

Problem: She was getting ready to retire and didn’t know whether to pay off her house, buy an annuity or do something else entirely.

Suggested Action Steps: We discovered that she actually wanted to have a smaller place to have less to maintain.  So instead of taking a big lump sum and getting taxed on it, we discussed looking for places that she could buy for the equity in her home.

Results: She was able to retire with more money, less to clean and a lot less financial stress by down-sizing her home.

Testimonial: “It made me more knowledgeable when discussing things with my financial planner.  So glad I made the call.” – Financial Helpline Caller

Increasing Savings

March 06, 2016

Planner: Erik via 1 on 1 Consultation

Problem: She wanted to know whether she should pay down her debt or increase her savings

Suggested Action Steps: I suggested she increase her emergency fund and then pay off her high interest debt. After that, she could contribute more to her 401(k) rather than pay down low interest debt

Results: These action steps resulted in her increasing her savings contributions and paying off high interest credit card debt

Testimonial: “The financial planner helped me change my perspective on my finances.  It took me a few days to process everything that we had spoken about and I didn’t make any changes for the first few days. After speaking with my husband and weighing our options, we decided that what the financial planner had advised was really the best plan for us and the following week we started making changes. It helped knowing that if we had any questions I could schedule another session with the financial planner.” – 1 on 1 Consultation Attendee