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”

Financial Planning: When a Spouse Passes – How to Stay Out of the Dark

March 17, 2011

Well you knew I would be broaching this topic at some point.  In many years of financial planning I have seen numerous situations which made me sad, and which inevitably led to me becoming a financial educator.  Some of the most searing memories, and sad to say happened all too frequently, were of widows who were in the dark as to what their financial condition was. Continue reading “Financial Planning: When a Spouse Passes – How to Stay Out of the Dark”

Financial Planning: Paying for College

March 16, 2011

In last week’s blog entry I discussed some of the tax-free ways to save for education.  If you are able to save enough to fully pay for a child’s education then I tip my cap to you because that is an impressive feat.  Unfortunately, for most parents the amount they are able to save will only cover a portion (and in my case a small portion) of the full cost of education, so in this week’s blog entry I’ll focus on the next pillar of college planning known as (imagine the thunderous voice of Zeus as you read) FINANCIAL AID. Continue reading “Financial Planning: Paying for College”

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”

Financial Lessons from a Group of Retirees

March 04, 2011

I have had the opportunity lately to talk with a number of people who have been retired for at least a decade.  I asked them to take a look back at their financial lives to see if there were any lessons they had learned that today’s workforce could learn from.  All of these people were comfortable financially and had successful careers in their chosen fields.  I did not expect to hear so many comments about what they would do differently if they had the opportunity to turn back time.  They had some advice for their grandchildren’s generation, and here are just a few of their observations and recommendations: Continue reading “Financial Lessons from a Group of Retirees”

Retirement Preparedness: Save Forty Years then Spend Forty

February 28, 2011

Think about it.  We work for forty years of our lives starting from our early twenties to sometime in our sixties.  Then we have to support ourselves for the rest of our lives.  In other words, save for forty then spend for twenty, thirty or even forty years depending how your cards are dealt.

In my case, the longevity hand I was dealt isn’t the strongest.  Continue reading “Retirement Preparedness: Save Forty Years then Spend Forty”

Frugal vs. Cheap: How to Tell the Difference

February 25, 2011

In my prior blog, Car Buying: A Way to Save a Fortune, I talked about how I like to be a bit frugal when it comes to buying my cars.  Many of my friends have read that blog and, of course since they’re my friends, they aren’t afraid to chime in and tell me what points I failed to make.  With friends like that…well, you know the rest of that line.

Here’s the overwhelming commentary I got from people I know.  There is a difference between being frugal and being cheap.   Continue reading “Frugal vs. Cheap: How to Tell the Difference”

Cash Management: How to Manage the Extra Money in Your Pocket

February 23, 2011

Have you ever found yourself at the end of the week with a little extra cash lying around?  (I know, it doesn’t happen that often, but when it does, what exactly do you do with it?)  For many, they just simply find something to spend it on, and who wouldn’t.  I mean after all, you’ve worked hard all week to earn it, so why not enjoy it.  Well, I can’t argue with that, but there may be another reason why you’re not sure what to do with it: you lack financial goals. Continue reading “Cash Management: How to Manage the Extra Money in Your Pocket”

Budgeting: Is that Laptop Really Worth $1500?

February 16, 2011

I’m not sure who said it, but I can bet you they were trying to sell you something.  If you’ve read any of my previous blogs  (and if you haven’t, why not?) then you know I have a tendency to prefer paying more for higher quality stuff that should last longer rather than buying cheaper stuff that will likely break down sooner and only end up having to be replaced more frequently.  Well, I’ve since modified my position on the issue.  Here’s what happened: Continue reading “Budgeting: Is that Laptop Really Worth $1500?”

Financial Planning: Leave Room in Your Budget for a Snow Day!

February 02, 2011

It doesn’t snow very often in North Carolina, but when it does, you can hear the children across the playground shouting – SNOW DAY!!!

Snow days are my kid’s greatest day of the week, but for Susan and I, not so much.  I love to watch the snow fall, and fortunately for me, I haven’t had to travel much, so I look forward to playing in the white stuff just as much as the kids do, but when they are ready to play, I’m sitting at my desk – no snow days for me *drat.* Continue reading “Financial Planning: Leave Room in Your Budget for a Snow Day!”

Financial Planning: New Year, New Goals

December 31, 2010

Year end is a perfect time to take a look back at the progress you made in your financial life in 2010 and set new goals for 2011.  So many New Year’s resolutions fall by the wayside by St. Patrick’s Day.  (Dialing back on the chocolate consumption makes my list EVERY year.  Still, there’s something about dark chocolate that is stronger than my resolve.)  There are some resolutions, though, that are not only good for you but sustainable.  And, maybe a bit more realistic than my dark chocolate resolution too. Continue reading “Financial Planning: New Year, New Goals”

Financial Planning for the Dream Vacation

December 29, 2010

Recently I booked a surprise vacation for my wife and me.  It’s been ten years since we’ve taken a vacation by ourselves, and I thought it was about time for the two of us to get reacquainted.  Now there are a couple of reasons why I’m doing this as a surprise.  The first is simply because I enjoy surprising my wife, and who doesn’t like surprising someone they love.  The second reason I’m surprising her with this trip is because she has trouble spending money on herself.  She spends money every day on the stuff we need, such as food, clothing, and medical bills, but when it comes to spending money on luxury items like a vacation, she just doesn’t have a mind for it.  Continue reading “Financial Planning for the Dream Vacation”

3 Actions to Take in an Hour to Prepare for Emergencies

December 27, 2010

In my last blog,  3 Actions to Take in an Hour to Build Wealth, I pointed out that many of us waste at least an hour a week.  I came up with three very important actions that take an hour or less to do but can significantly improve your finances.  I am writing this blog immediately after the last one and will predict right here that I will lose the playoffs in my fantasy football league.  First of all because my team isn’t that good and secondly because I am not a good manager.  I will admit that I have only gone this far by luck.  So in other words, I have free time.  What will I do with the extra hour? Continue reading “3 Actions to Take in an Hour to Prepare for Emergencies”

Get Rich Quick, or Not so Fast?

December 17, 2010

In my blog, Danger Spots When Getting Rich Quick!,  I talked about a few ways to STAY wealthy when people become millionaires overnight.  While becoming a millionaire overnight sounds really exciting and fun and maybe even a little glamorous, it’s not how most of the millionaires I have met during my career have become wealthy.  OK, so if that’s not how they got there, what have they done? Continue reading “Get Rich Quick, or Not so Fast?”

Lost Focus: Planning Your Finances

December 10, 2010

Sometimes we just don’t want to look in the mirror and ask ourselves tough questions.  I had one of those moments recently.  I was going to a football game and the line outside of the stadium was incredibly long.  It took 40 minutes to get inside the stadium when it usually takes 5-10.  If we were going to get to our seats in time for kickoff, we were going to need to really hustle.  Sitting in the upper deck, in a stadium without escalators, can be a challenge.  I have seen a lot of people heading toward my section stop at a halfway point (it’s almost a legitimate cardio workout just getting up to our seats!) to catch their breath.  I got to my section and realized that I was breathing heavily and felt very tired and out of shape.  It was at that moment that I had to ask myself the question “Have I lost my focus?” Continue reading “Lost Focus: Planning Your Finances”

Commit to Save and Retire Early

December 08, 2010

I just got back from a business trip where I sat down with employees to do some one-on-one financial planning.  The main focus for the majority of the participants was retirement planning.  I met with some employees who were just a few months out of college, and others who were a few months from retirement, so I’d like to share some of the perspective I gained during the trip. Continue reading “Commit to Save and Retire Early”

Time for a Change

July 21, 2010

Despite it’s never-ending and (often questionable) invention of “innovative” new financial products, services, and securities, the financial services industry is woefully behind in the area that matters most to Americans in this economy: financial counseling.

You see, there is no money in helping someone to get out of debt, or helping someone deal with a job loss, yet every day I come across individuals that are dealing with just those sorts of issues. Personally, I think every financial professional should be required to receive training in the area of financial counseling. For starters, someone dealing with high debt or low income could probably benefit the most from professional help. Secondly, we need improvement in financial literacy among all consumers in our country if it’s truly going to rebound from this difficult economy, and what a better way to do that than by having financial experts available for folks who may otherwise never work with a financial professional.

So how do you get tens of thousands of financial professionals to suddenly take interest in a group that has little to no assets to invest? Continue reading “Time for a Change”