Ready. Aim… Financial Plan!

October 02, 2013

I may have told you before that my daughter participates in the ROTC program at her high school. Over the summer, she joined the air rifle team and has been practicing for the last several months. I had a chance to watch her participate in her first competition this weekend. I must admit I wasn’t sure what to expect, but as I watched her and her team perform, I began to realize that there was a lot more to the sport than just putting a pellet in the chamber and pulling the trigger. Continue reading “Ready. Aim… Financial Plan!”

The 3 Most Important Words in Financial Planning

September 05, 2013

According to this article, the three most important words when it comes to investing are the “margin of safety.” The article discusses how inaccurate people tend to be at making predictions about things like the economy, industry trends, and business growth. Since this unpredictability can wreak havoc on investment plans, many of the top investment experts recommend investing with a margin of safety, which is “simply the distance between your predictions coming true and needing those predictions to come true. You can still try to predict the future, but a margin of safety gives you room for error to be wrong.” In other words, rather than pick the investment that needs to grow at 10% per year to payoff, pick the one that could grow at 10% but would still be a good investment if it only grew at 5% with anything else being gravy on top. Continue reading “The 3 Most Important Words in Financial Planning”

Putting It All Into Perspective

August 12, 2013

The real purpose of the financial planning process is often lost when we focus on just the specific elements of a plan such as budgeting, eliminating debt, investing, minimizing taxes, and saving for retirement. Financial planning is more than these things. It’s actually the process of aligning our financial resources with our life goals, values, and vision for the future.  Continue reading “Putting It All Into Perspective”

What is Risk?

August 08, 2013

For many people, reducing their risk is their top investment priority. Yet, in I’ve noticed that the word “risk” means very different things to different people. The standard definition in the financial world is the variance of returns. In other words, a risky investment is one in which the returns fluctuate a lot from year to year. But when most people use the word “risk,” I think they’re referring to the probability of their investment losing value. Continue reading “What is Risk?”

Perception vs. Reality

August 02, 2013

I read this article about how we are working fewer hours now than prior generations and we have more “leisure time” than prior generations too. At first, I was thinking that the article was absolutely wrong. I know that I spend way more than the 33.7 average hours per week in this report.  Most of my friends do as well. With our smartphones receiving emails and text messages from coworkers, along with the other technological tethers that many of us live with, it seems like we work all the time.  Continue reading “Perception vs. Reality”

The Case Against “Moderation”

August 01, 2013

In this blog post, Michael makes the argument for a moderate middle ground between a couple he knows that are living well beyond their means and another couple he read about in this article that managed to pay off their mortgage in less than 5  years. While paying off your mortgage early may seem like a great thing, Michael worries that the couple may look back on this time of their lives with regret at all the things they didn’t do with that money. I don’t and here’s why. Continue reading “The Case Against “Moderation””

Financial Tips for Recent College Graduates and Early Career Professionals

July 29, 2013

I recently joined a group of friends in a discussion about our first jobs and reminisced about those innocent days of youth (mostly innocent at least).  My first job tapped into my entrepreneurial spirit as I traveled yard to yard in my little corner of suburbia mowing lawns. The boss was a free-spirited adolescent and that venture provided zero benefits, but I did learn a lot about the importance of having a solid work ethic and it gave me hands on experience with managing and saving money. Continue reading “Financial Tips for Recent College Graduates and Early Career Professionals”

What’s On Your “Dream Board”?

July 17, 2013

Several weeks ago, I had the pleasure of meeting a young man who emigrated to the U.S. from Africa, and he wanted to know if he was saving enough for retirement.  As I proceeded to ask him the usual questions—when would you like to retire, what kind of lifestyle would you like to have, how much have you already saved — I began to realize that this individual was quite different from most of the ones I talked to.  It turns out that he is already saving 25% of his pay but was able to save more and wanted to discuss his options. Continue reading “What’s On Your “Dream Board”?”

Is It Time For Your Mid-Year Financial Check Up?

June 24, 2013

Summertime is officially here and things around my house are just as hectic as ever.  With all of the upcoming events my kids have on the schedule like summer camps, swim lessons, dance lessons, soccer camps, reading lists, vacations, and staycations, we have to do a serious balancing act as parents.  (When I say “we,” I actually mean my wife, Heather, because I admit that she is the master organizer in our household.)  Continue reading “Is It Time For Your Mid-Year Financial Check Up?”

My Field Trip to Seoul

June 03, 2013

For the past three years, I have been working on a Ph.D. in personal financial planning from Kansas State University. One of the final requirements prior to completing my doctoral studies and defending a dissertation is to examine global markets and to directly experience how other cultures approach the management of their money. So this week, I am writing you as I return from Seoul, South Korea after a ten day trip to learn about the country’s approach to personal financial planning. Continue reading “My Field Trip to Seoul”

10 Financial Lessons From the Celebrity Apprentice

May 16, 2013

While I don’t generally watch tv or even own one, I have to admit that I’m a huge fan of one particular show: The Apprentice, which is currently on the verge of the finale of its All-Star Celebrity Season. While the show has its share of mindless reality tv entertainment, there are lessons that can be derived from it, not just for the business world that the show is based on (albeit loosely) but for our own personal financial lives as well. Here are some financial lessons from this season’s celebrity firings: Continue reading “10 Financial Lessons From the Celebrity Apprentice”

Why I Love What I Do

April 05, 2013

We usually discuss what to do with your money but not how you earned most of it in the first place. Without trying to sound too much like I’m sucking up to my boss…I’m one of the few people I know who really love what they do for a living. I’ve met a lot of people who hate their jobs but “have to” stay for financial reasons, benefits, or something else.  I’ve met people who like their jobs but aren’t all that enthusiastic about it. And, occasionally I’ll meet someone who feels like they are doing what they were put on Earth to do.  When that happens, I feel like I’ve met a kindred spirit.  Why do I enjoy what I do so much? Continue reading “Why I Love What I Do”

Ways to Avoid Financial Foolishness on April 1st (and Beyond)

April 01, 2013

Happy April Fool’s Day! Today marks my very first day as a regular contributor to the Monday blog spot for Financial Finesse. When I was first informed of this new role, I thought it may have been some kind of April Fool’s Day prank. Now I know that it wasn’t a practical joke (and hopefully you don’t find my financial tips and guidance comical either) and I look forward to the opportunity to share some of my thoughts and experiences as a financial planner and educator. Continue reading “Ways to Avoid Financial Foolishness on April 1st (and Beyond)”

Roseanne Rosanna D’Anna, Sequestration and You

March 01, 2013

I grew up watching Saturday Night Live, back when it was ridiculously entertaining.  I know it’s in a good cycle again now, but the old shows are still funny now.  When you can laugh 20-30 years after something was created, you know it’s good.  Lucille Ball and the chocolate candy on the assembly line will be funny 100 years from now!  That’s quality entertainment…  Continue reading “Roseanne Rosanna D’Anna, Sequestration and You”

Don’t Let Your Focus on Today Keep You From Planning for Tomorrow

December 12, 2012

What a great weekend.  As a family, we drove to Bethlehem (North Carolina) on Saturday night to see a live nativity, but what made this trip even more noteworthy was something that happened on the ride home.  As we were driving home, I took a detour to check on the status of my boat at the repair shop.  (Basically, I just wanted to make sure it was still there.)  After putting my mind at ease, we turned around, and I was about to make a left turn back toward the main road when something caught our eye.  Continue reading “Don’t Let Your Focus on Today Keep You From Planning for Tomorrow”

Are the Rich Really That Different?

November 29, 2012

At Financial Finesse, we are expanding more into financial planning for high-income executives, which is surprisingly an underserved population for unbiased financial guidance.  Many high net worth individuals have access to financial advice but not necessarily from an unbiased source. I recently had the opportunity to work with a group of senior executives with much higher incomes and account balances than the employees that we typically talk with. Now, you may expect that those in the top income tax brackets would have significantly different financial problems than the rest of us and to some extent you would be right. They’re generally able to cover their expenses so they usually aren’t struggling with debt or cash management problems. But other than that, many of their problems are the same ones typically facing other people at the same stage of life. They just have more digits in their numbers. Here are their three biggest financial issues: Continue reading “Are the Rich Really That Different?”

7 Steps to Your Financial Independence Day

July 04, 2012

This week America celebrates its 236th birthday.  To honor the occasion, why not declare your own personal “Financial” Independence Day.  To me, financial independence equates to not having to worry about money, so if you are worried about your finances, take these seven steps to economic freedom: Continue reading “7 Steps to Your Financial Independence Day”

Powerball: How to Cash in When You Don’t Win

April 09, 2012

My son reminded me that if you don’t buy a ticket, the odds of winning the Powerball lottery were zero.  He also said, “Someone has to win you know.”  He does have a point and that line of thinking is shared by many people who are in a frenzy buying lottery tickets even though the odds of winning a mega-jackpot are 175.7 million to one. I didn’t play the Powerball but I have to admit that I did buy into the California lottery pool with a bunch of my co-workers only because if they DID win, I wouldn’t want to be left behind. Continue reading “Powerball: How to Cash in When You Don’t Win”

Imagine Your Worst Case

February 17, 2012

Over the last few months, I’ve had the opportunity to learn a whole lot more than I ever knew about some “behind the scenes” things that happen before a soldier gets deployed overseas.   My girlfriend works as part of a dental team that goes to military bases on weekends and performs dental work on a ridiculously large number of soldiers prior to their deployment.  On a normal day in a normal private practice, she may see 8-10 patients.  Continue reading “Imagine Your Worst Case”

What Going to the Shooting Range Can Teach Us About Financial Planning

February 15, 2012

Recently, some colleagues and I visited the local shooting range to practice firing pistols at paper targets.  I hadn’t fired a pistol in years, but I remembered that the last time I did I had fun. I was excited to go, but at the same time I was a little nervous.  What if I miss the target and my friends laugh at me? What if I do something wrong and somebody gets hurt?  What if I hurt myself?  What if, what if, what if? Continue reading “What Going to the Shooting Range Can Teach Us About Financial Planning”