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How Rich Do You Think You Are?

Wealth can be defined in many different ways, but classically it is measured through one’s net worth.  Your net worth is simply everything you own versus everything you owe.  The own part of the equation includes real estate, cash, stocks, bonds, 401(k)’s, IRA’s, businesses, and much more.   The owe part of the equation includes mortgage debt, student loan debt, car loans, credit cards, and more.  Once you subtract the liabilities from the assets, you can begin to determine just how rich you really are in today’s day and age. WHERE DO YOU RANK IN WEALTH (source: wsj.com) (If you have a household net worth of X … you rank in the Y percentile): $50,000 … 60th percentile $93,000 … 50th percentile $100,000 … 48th percentile $200,000 … 34th percentile $500,000 … 18th percentile $750,000 … 12th percentile $827,000 … 10th percentile $1 million … 8th percentile $1.4 million … 5th percentile $6 million … 1st percentile There is a really ...

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Run Your Family Finances Like A Business

When we opened oXYGen Financial back in 2008, we introduced two very important financial planning concepts.   Number one; in order to be successful with your personal wealth you need to take ownership as the CEO of your family’s finances.   Number two; all successful CEO’s surround themselves with an effective CFO to help run the company, which is why oXYGen Financial pioneered and trademarked the term Private CFO®.    Between the combination of an effective CEO and CFO, you can focus on the key performance indicators in your “business” to help you reach your goals.   I was most intrigued this week when almost five years after our founding, the Wall Street Journal finally ran an article called Family, Inc. (http://on.wsj.com/12YfX8z), which is a really interesting article and can help articulate what families will need to consider as they manage their finances in the future.  Here are my smart money move tips on how to run your family like a business: Get one ...

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Estate Tax To Return In 2011

All I hear these days from concerned citizens is that the Government is doing nothing.  Well, if we continue down this path that nothing is going to be something in the world of estate taxes.    If no legislation is passed around the estate tax this year, the likelihood is that it will revert to the original 1 million dollar level with a 55% top estate tax percentage. Ten years ago, 1 million dollars was a lot more uncommon than it is today.  With real estate prices being higher in many parts of the country than a decade ago, it only takes some bank accounts, 401(k)’s, real estate, and some personal furnishings to get an estate above a 1 million dollars.   If you had forgotten, life insurance death benefit value that you own is also includible in your estate as well.  It may pass income tax free to your heirs, but the death benefit is added in to your overall estate ...

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