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Review Category : Investments

Should You Delegate Everything?

For many years I have had the opportunity to coach and train numerous financial advisors and high net worth entrepreneurs. One of the biggest challenges is helping them calculate what an hour of their time is worth. Truly understanding this concept is incredibly valuable for executives.  Something all these successful folks have in common is the keen ability to delegate. Successful people are productive because they are able to spend their time on mission critical activities. In order to accomplish this, they need to pass off some of the more tedious, but necessary work. If you are an incredibly busy and productive individual but you spend two hours a day driving to the office, it may make sense to hire a driver. Maybe you’re realizing how long you spend maintaining your house each weekend, for a small expense you could consider hiring a maid, and free up that valuable time. My family has given me a hard time over the ...

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Five Financial New Year’s Resolutions For 2020

It’s 2020, and that means that most of you have made at least one New Year’s resolution for this year or even for the next decade. For most of you it will surround either diet or exercise, but for some of you, getting your financial plan in order may rise to the top of the list. With the average American now surpassing more than $7,000 of credit card debt, student loans at more than $1.6 trillion, and 50% of the people in America who are 55 years and older having no retirement savings at all, it may appear cash flow management will be THE term we all need to learn for the next decade. In Your Smart Money Moves fashion, here are my ideas for a sticky 2020 financial New Year’s resolution that can help you grow your bottom line. Get Your Financial House In Order Take The 21 Day Budget Cleanse – I just published a new book to ...

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Congress Just Passed the Biggest Bill in a Decade – The SECURE Act: 7 Things You Need to Know

On December 19th, the Senate passed the most sweeping retirement bill since the Pension Protection Act of 2006. The SECURE Act, whose progress had stalled until lawmakers tacked it onto a spending bill to keep the country running, aims to make saving easier amongst a bevy of changing rules. The House already passed the legislation, and President Donald Trump is expected to sign the bill into law. So, how does that impact you, your money, and how you will be able to save money for the future?  Does it mean you will pay more taxes?  Here are seven things you need to know about the Secure Act. (some excerpts are from Yahoo Finance) SECURE Act #1:  RMD’s Are Changing Starting January 1, 2020, the new bill pushes the age at which you need to start withdrawing money from your traditional retirement accounts from age 70½ to age 72. These required minimum distributions, as they’re called, are Uncle Sam’s way of ...

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Should More Companies Offer a Holiday Bonus?

We know that the holiday season is coming down the home stretch, but there have been some amazing stories of companies whose generosity has gone above and beyond the call of duty.  Two out of three companies say they will give some sort of holiday bonus, but St. John Properties in Maryland surprised their employees beyond belief with handing out $10,000,000 in holiday bonuses https://bit.ly/36B7pfL. The bonuses were handed out based upon your length of service with the company. So, even though the average employee bonus was $50,000, the lowest bonus was $100 and one employee who worked for the company for 44 years received a $270,000 bonus?  anta, do you hear us calling you? The news continued over the past week with a giant insurance company called the Integrity Marketing Group who paid out a $50,000,000 bonus to its some 7,500 employees, but their bonuses were skewed to the overall performance of the individuals rather than tenure or the ...

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Know What You Own and What is a Bad Financial Product

As an advisor pre/post- the 2008 financial crisis and throughout subsequent periods of market volatility (such as 1994, wars, terrorist events, Brexit, you name it), when working with a new client I am regularly surprised by how often they do not have a handle on what is in their portfolio and/or purposes of an asset allocation or lack thereof. During periods like the one we are in now, we watch television pundits that depending on the channel/time of day, are either predicting total market chaos, or a continuation of an extended bull market. Inevitably, it can create a lot of stress and confusion for an investor (and some financial advisors). In the end, investing should have the intended goal of creating “peace of mind” that a person(s) is on track so that they can breathe easier® (shameless plug), feel okay when they turn on the news and can live their lives the way they want to. Knowing What You Own ...

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Is Your Sister Or Brother Laughing All The Way To The Bank?

They say that absence makes the heart grow fonder.  I say it makes it grow absent.  One of the most challenge items facing families today is the fragmentation of brothers and sisters spread out across the country and the challenge of who will ultimately become Mom or Dad’s caregiver.  What does this mean to the family inheritance?  Should your brother or sister get paid?  Is the total decisions a proxy by proximity or something that should be more fully discussed?  It’s challenging to get siblings on the same page when it comes to money and it’s why so many squabble about the family inheritances even before Mom and Dad pass away.  Here are some tips to make sure your brother or sister aren’t laughing all the way to the bank as you discuss this delicate situation with your parents. Have An Estate Plan This means that your parents should have something more in many cases than just a will.  It ...

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Would You Spend Less Than $100 On An Engagement Ring?

Buying an engagement ring can be an emotionally draining purchase. For most people, it’s more than jewelry: It’s a symbol of love and affection and of the serious commitment they want to make to a lifelong partner.  For years, it’s been bandied that the diamond industry spearheaded this notion that you have to spend 3 months of your salary on an engagement ring.  As we have witnessed millennials and now generation Z changing the way we do many things in their lives, are they going to change what we spend on engagement rings?  How much is love worth? In a recent study that was one, here is what late-stage millennials and generation Z had to say about engagement rings:  Engagement rings should cost… Less than $100: 11 percent of Gen Z and 8 percent of young Millennials  Between $100 and $999: 43 percent of Gen Z and 31 percent of young Millennials  $1,000 to $2,499: 28 percent of Gen Z ...

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Impeachment and the Stock Market

A lot of people are nervous about the stock markets after the latest drama with the President and the potential for his removal from office. After Speaker Nancy Pelosi announced that the House would launch a formal impeachment inquiry in response to the President’s dialogue with Ukrainian president Volodymyr Zelensky concerning former VP Joe Biden’s son, the US markets quickly fell. Investors were shaken by the potential of removal of President Donald Trump from office. By the time the closing bell rang, most sectors in the US were in the red after starting the day in the green. How does this process work and what history do we have to draw on for past performance of the stock market during impeachment proceedings? The answer to the former I can lay out for you, the answer to the latter is a bit harder to gather answers from. From October 1998 to February 1999, stocks rose despite the Clinton impeachment. But the ...

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Why Your Parents Financial Advice Might Be Wrong (Sort Of……..)

A recent study that came out on CNBC showed that when it comes to debt, Gen Xers are now at the top of the class.  Especially in the category of personal debt where the average Generation X individual (ages 39 to 54) has racked up $36,000 of personal debt.  This is on top of the student debt that is still lagging in the background and potentially taking on new college debt for their children. I think about the advice I got from my parents and the advice that I am giving today.  We all need to consider that as life evolves, so may some of the traditional financial advice that we give when it comes to money decisions.  Here are four areas where parents’ financial advice may be (kind of) wrong: Go To College And Get A Degree:  Let me say up front, I’m not advocating that a college degree is a bad idea.  But we need to consider what’s ...

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The October 1st Deadline For Small Businesses

After an owner makes heads or tails at the end of the year, they will usually determine whether or not money is left behind for setting up some sort of long-term retirement plan within their business.   Since there are so many people setting up individual LLC’s or home-based side businesses, you need to keep a close eye out this time of year for setting up one kind of retirement plan, a SIMPLE IRA.   The deadlines are just around the corner in the next few weeks, so could this be the right type of retirement plan for you? A SIMPLE IRA (Savings Incentive Match Plan For Employees) was first available to small business owners in 2001. A SIMPLE IRA plan is an IRA-based plan that gives small employers a simplified method to make contributions toward their employees’ retirement and their own retirement. Under a SIMPLE IRA plan, employees may choose to make salary reduction contributions and the employer makes matching or ...

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