Review Category : Gen X & Y Financial Advice

Five Reasons You Never Want To Borrow On Your 401(k)

Many millennials are stretching financially to buy homes, and the numbers are getting scary.  People in the younger generation are modeling behavior that is far riskier and more dangerous than they even realize for their future.  According to a new survey by the Bank of the West, approximately 1 in 3 millennials say they raided either their 401(k) or even worse liquidated part of their IRA to put a down payment on a home.  Even more millennials are tapping these retirement accounts to pay down their growing student and personal debt.  There is a reason these are called “retirement accounts”, and specifically there are five enormous reasons you never want to borrow on your 401(k). The Magic Of Compounding – In a recent story I did on CNN Headline News, I discussed the power of compounding. A 25-year-old who puts away $300 a month and hypothetically earns 8%, will have roughly 1 million dollars at the age of 65.  A ...

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Five Numbers Every Investor Should Know About Their Portfolio

Do you find yourself engaged in a conversation sometimes about your portfolio and someone asks you what should seem to be a simple question?   How much of your portfolio is in stocks and how much is in bonds?  Do you know what your biggest holding is in your portfolio?  Why did you pick that XYZ mutual fund? Or XYZ stock?  Nobody expects you to become an expert in investments, but as the CEO of your family finances you sure want to get yourself educated enough to be able to answer some important questions.  Here are five numbers every investor should know about their portfolio. What your risk level is currently – There are a whole number of ways to calculate risk depending on the angle you are taking with the question.  You aren’t going to be asked to know your beta, your alpha, or your Sharpe ratio because they are for the experts to know.  However, you should be able ...

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Five Money Tips To Start Your Side Hustle

In almost every meeting I have today, clients often ask for me for ideas about stopping the job they hate (even though it is paying them) and trying to figure out how to start that side business or hustle that fires them up to get out of bed every day.  When reality sets in, most people realize they can’t quit the job they have today.  However, getting multiple streams of revenue are one of the keys to increasing your chances for massive financial success whether that is rental real estate, passive investments, a business, or even your own little side hustle.  So, here are five money tips for when you decide to turn that extra burst of energy into a money-making venture. Make Sure You Have A One Page Business Plan How much do you need to start the business? How will it make money? Remember, when you start this side hustle you don’t some 27-page business plan that you ...

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How To Avoid A Big Tax Surprise In 2019

With only five months left in 2018, it is probably time you start thinking about what your income taxes will look like before the end of the year.  The 2018 Trump tax overhaul not only changed the entire tax table system, but there were serious alterations for individuals and small businesses that could throw a real knot in your income taxes if you don’t carefully plan.  The challenge for most families is that they plan reactively versus proactively often only thinking about taxing when it is time either write a check or collect a refund.  Here are my five ways to avoid a big tax surprise come March or April in 2019.   Review Your Withholdings And Do A Mock Tax Projection The IRS did an overhaul of the tax withholding tables and most people didn’t change their withholdings from Married 1 or Single 2 or wherever you had your overall withholdings. The big question you want to start with ...

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Is It Time To Do The Holidays In July

It’s July.  Why in the world would we want to start thinking about holiday time in December right now.  One of the biggest financial hangovers people have in their budgets is when they overspend during the holiday season.  Now that we have hit July, I have some smart money moves tips that can put a few of those dollars back in your and maybe even take some of the stress out of your life.  Here are five money ideas for doing Christmas, Chanukkah, or whatever holiday you celebrate with your families in December to save you some money. What’s On Sale Now – When you are out and about at the stores, you should always take a peek at the clearance racks. You might find some cool piece of clothing, shoes on sale, or some piece of technology that is being upgraded to a new version.  For sure, all summer clothes will start to go on sale, so this can be ...

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Five Money Moves To Make If You Are Buying Or Selling A Home In 2018

With interest rates creeping up and home sites being built by the droves, many people are wondering what they should do on both the buying a selling side here in 2018.  Is it too late to buy home?  What interest rate is too much? How can I sell my home quickly? What other factors should I watch out for with my real estate?  Here are five money tips on buying and selling homes for the rest of 2018. This Is The Law Of Supply and Demand Supply is shrinking amongst great demand – Remember, real estate is always driven by supply and demand. Depending on where you live, you may want to wait for the bubble to burst before you buy or look for areas in your city that are still gentrifying and try to buy before the big uptick happens in those areas. Monthly Supply of houses is at the bottom range – Monthly housing supply is at five ...

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How Do You Know If Your Portfolio Is Doing Well

Happiness is all about expectations met or unmet.  There have been so many articles written about how to discuss fees with your wealth manager or financial advisor, but very few that talk about the mutual responsibility between the advisor and the client about how to measure performance of your investment portfolio.   This is an important discussion because whether you are managing your money yourself or you turn it over to a professional, the question is do you know how to measure the performance of your portfolio? In 2008, when the S & P 500 had a -37% return, if your portfolio achieved a return of -35% because you were using the S & P 500 as a benchmark would you have been happy?  Conversely, in 2013 when the S & P 500 had a 32.39% return, would you have been happy if you and your advisor agreed that 6% return was the absolute return that was agreed on with you ...

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5 Amazing Technology Gifts For Mother’s Day

Mother’s Day is less than a week away and word on the street is that spending is up this year.    The National Retail Federation estimated that consumers will spend 19.9 billion dollars on Mom this year in 2018 which is actually down from last year.  If you are counting that is an average of $162.94 per consumer which is $6 decrease from a year ago.  Men will spend more than Mom than women by more than $70!  Being a Mom is a tough job, and we need to all appreciate what Mom’s do throughout the year. Most consumers will acknowledge that appreciation with a greeting card (81.3%), though it appears her loved ones will also look for special gifts. Two-thirds (66.6%) of those celebrating will buy mom her favorite flowers, spending a total of $2.3 billion, and 33.5 percent will look for spring sweaters and blouses, spending a total of $1.7 billion on apparel and accessory items. Mom’s loved ones ...

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How To Get A Better Airline Price Even After You Book The Flight

All of us have experienced that fear of price gouging when we book our flights on line.  When you go to a major website such as Expedia, Priceline, or Kayak, you often wonder whether or not you are getting the best possible deal.  Then, when you hesitate to book the flight when you go online, you get even more bitter when you come back a day or two later only see the prices go higher.  Or, even worse is when you actually book the flight and then you see the price go LOWER!  Well, with the power of Artificial Intelligence there may be an answer to help you sleep better at night when you are booking flights or hotel called DoNotPay (www.donotpay.com/travel) that may just solve the problem. The real beauty about DoNotPay is that it works AFTER you have booked your flight ensuring that you get the best possible deal on your flight.  Since flight and hotel prices change ...

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