What If Money Fell Into Your Lap?

August 21, 2015

In a story that may or may not eventually turn out to be true, two men claim to have found a train that allegedly vanished at the end of the Nazi regime and it was (in theory) loaded with valuables. They are offering to share that location with authorities if they are given 10% of the value.  There are all kinds of legal, ethical and moral questions that would surround a found former Nazi treasure trove should this train actually exist and should they be given a nice finder’s fee. That could, if it’s a whole train filled with valuables, be quite the fortune! What are they going to do with it? Continue reading “What If Money Fell Into Your Lap?”

Permanent Life Insurance or Mortgage Payoff?

August 20, 2015

We recently received a question on our Facebook page from a couple in their 50’s who are trying to decide between a fixed universal life insurance policy with a quoted return of “7% minus fees” vs paying off a mortgage with a 3.5% interest rate. This combines two common question topics: using permanent life insurance as an investment and paying off a mortgage early. Let’s take a look at some things to consider: Continue reading “Permanent Life Insurance or Mortgage Payoff?”

Can You Put Your Investment Plan On A Note Card?

August 10, 2015

Does investing seem complicated? Despite the presence of overly complicated financial strategies and the often vexing financial jargon used by financial professionals, investing does not have to be so complex.Investing is simply a balancing act where the challenge is to find the ideal balance between risk and reward. Continue reading “Can You Put Your Investment Plan On A Note Card?”

Some Of The Riskiest Investments May Surprise You

July 30, 2015

One of the biggest fears people have when it comes to investing is a year like 2008, when the US stock market fell almost 40%. But as long as you didn’t bail out of stocks, you would have recovered your losses in about 5 years and then gone on to make more money. The same is true of every other market downturn since the Great Depression. If you’re worried about the real risk of permanent loss, some of the riskiest investments actually seem much safer. Here are ones that may surprise you: Continue reading “Some Of The Riskiest Investments May Surprise You”

Is A Financial Advisor Worth Paying For?

July 23, 2015

If you’re hiring an advisor to pick investments that will outperform the market, the answer is probably no. There’s no evidence that financial advisors’ recommendations add value in this way even if their advice were free. Add a 1% advisory fee and you’ll probably underperform the market. There are also now a host of “robo-advisors” that will help you put together and manage a customized portfolio of low cost index funds for a much lower fee. However, here are some services that may be worth paying a financial advisor for: Continue reading “Is A Financial Advisor Worth Paying For?”

Managing Your Pension In A 401k World

July 15, 2015

Lately there’s been a lot of criticism of 401k plans in the news and some of it is very valid. A 401k that is poorly designed and/or poorly managed can leave people in a bad place when they want to retire, but traditional pensions aren’t a perfect solution either. Don’t get me wrong. If you have a pension that is a GREAT benefit to have. You just can’t assume that everything will work out as planned. Continue reading “Managing Your Pension In A 401k World”

What Makes A Good Mutual Fund?

June 25, 2015

That’s a common question I get in our investing workshops. Most people instinctively look at performance. After all, that’s how we typically measure ability and try to predict future performance in most areas but investing is different. Continue reading “What Makes A Good Mutual Fund?”

There’s No Such Thing As A “Safe” Investment

June 23, 2015

There is so much information regarding the best investment mix for your financial goals. I challenge you to watch one episode of Squawk Box and see how long it takes for your head to spin with all of the conflicting information. On top of everything, everyone has a different idea about risk. I was talking with my colleague, Kelley, and asked her to share her perspective on how people should look at risk. Below is her guidance. Continue reading “There’s No Such Thing As A “Safe” Investment”

A 6% Guaranteed Return?

June 18, 2015

Would you like a guaranteed 6% return on your investments? Is that even possible? I recently got a helpline call from a woman who thought it was. Her advisor had suggested that she roll her 401k into an annuity that paid “a guaranteed 6% return regardless of what the stock market does.” She thought the only downside is that she had to leave the money in the annuity for 10 years and that there was a 1% fee so the guaranteed return would be 5% after fees. Continue reading “A 6% Guaranteed Return?”

Should You Buy or Rent a Home?

June 11, 2015

Summer is often a popular time for people to buy a home. In fact, I was recently talking to an employee who wanted to buy a place but she noted that the mortgage payment would be more than the rent for similar priced homes in the area she was looking at. However, after looking at the tax breaks and possible home appreciation, we discovered that owning would actually be cheaper for her. Continue reading “Should You Buy or Rent a Home?”

How to Invest While Getting a Tan

June 10, 2015

June signifies summer, a time when millions of Americans flock to frolic in the sand and soak up some sun. If only investing were as easy as a day at the beach…or is it? It can be if you follow these simple guidelines: Continue reading “How to Invest While Getting a Tan”

Which History Matters?

June 05, 2015

Risk is something most people want to avoid.For that reason, and with 2008’s stock market crash and a lot of talk about today’s market being at or near all-time highs, I am seeing people re-evaluating the level of investment risk in their 401k’s. One trend that is a bit troubling is going on with young employees in their 20’s and 30’s who entered the workforce or were relatively new hires when the 2008 collapse happened. Many of these employees are shunning investment risk at perhaps the expense of their future financial security. Continue reading “Which History Matters?”

Small Changes Now Can Mean Big Long Term Results

May 08, 2015

In a conversation I had recently with an employee of a large healthcare company, the topic of retirement planning and investing merged together. She had recently started her job and wanted to be sure that she got off to a good start. Her prior employer had no financial wellness benefits provided so this was her first conversation with a financial planner. The conversation was very revealing about her views of herself, the world of investing and the level of financial knowledge that many people who work in financial services business assume that individuals have when they walk in for a conversation. Continue reading “Small Changes Now Can Mean Big Long Term Results”

Passing On Your Money Skills

May 05, 2015

Working as a financial planner gave me the opportunity to meet so many people and to hear their amazing stories as to how they became wealthy. Most came from humble means, from former refugees who did not speak English, to former teenage moms, to those that grew up in foster care. Their stories are an inspiration.   Continue reading “Passing On Your Money Skills”

How New Online Tools Will Save One Woman Tens of Thousands of Dollars Per Year

April 30, 2015

Last week, I wrote about my three favorite online investment services. This week, I’ll show you an example of how a couple of those tools saved a friend’s mother tens of thousands of dollars. When I spoke to my friend, his mother had just retired with a $1 million portfolio and he wanted to know how she should invest it for retirement. Since we can’t provide specific investment advice at Financial Finesse, this was a rare opportunity for me to be more hands-on. Here’s what we did: Continue reading “How New Online Tools Will Save One Woman Tens of Thousands of Dollars Per Year”

3 Tools That Can Make Your Investing Simpler and Cheaper

April 23, 2015

Last week, we discussed the three keys to successful investing being properly diversified, minimizing costs, and re-balancing periodically. Over the last few years, we’ve seen the emergence of online automated investment services (often called “robo-advisors”) that aim to make these steps even easier. After reviewing the various options, there are three in particular that I really like. Here’s a comparison of how each of them can help you with the three steps and what type of person they might each be best suited for: Continue reading “3 Tools That Can Make Your Investing Simpler and Cheaper”

Three Investment Terms You Should Know

April 22, 2015

Have you ever noticed how different words mean different things to different people? The other day I was talking with a helpline caller who was looking for a way to invest their retirement funds such that they couldn’t lose money and could draw an income from it in the future. When I mentioned the word “annuity,” they immediately had a negative reaction as they were lead to believe all annuities were bad, which seemed ironic considering that’s exactly what they just described they were looking for. When it comes to investment terminology, not understanding the meaning of a word can be a financial mistake. Here are three investment terms that are frequently used but often misunderstood: Continue reading “Three Investment Terms You Should Know”

Do You Understand Your Advisor’s Recommendations?

April 21, 2015

I recently spoke to a friend who wanted to ask my opinion about her current financial advisor. Knowing that I have a slight addiction to chocolate, she offered me her homemade Godiva Hot Chocolate with a chocolate coated bottom for my trouble. Of course I would have offered my opinion at no cost, but who am I to turn down her homemade hot cocoa? As I listened, she started to describe how she was referred to him though a family friend so she did not feel the need to do a background check or ask him questions about how he gets paid. She took it on faith that if her family member recommended him then she would be fine. Continue reading “Do You Understand Your Advisor’s Recommendations?”

All You Need To Know About Investing In 3 Simple Steps

April 16, 2015

Whenever I talk to people about investing, I find that most people fall into one of two groups. One group feels that investing is too complicated for them so they want to hire a professional to manage their money for them. The other group is make up of active investors who try to time the market with statements like “I think the market is too high to get in right now” or “I’m going to wait for prices to come down before I buy” and/or pick stocks or actively managed funds that they think will outperform the market. The problem is that there’s no evidence that market timing or even actively picking stocks really works (unless monkeys or cats are doing the picking). If the vast majority of professional money managers continue to underperform the market with these methods, do you really think you can in your spare time? Continue reading “All You Need To Know About Investing In 3 Simple Steps”