fbpx

Retirement Assumptions: What’s Your Legacy Goal?

When you are building out your long term retirement plan, a financial advisor will often have to make many different types of assumptions. I have authored numerous articles around this topic. You need to consider market downside risk, interest rate risk, inflation risk, liquidity risk, tax risk, sequencing risk, and several others. Often, one major mistake made around the discussion regarding building a quality retirement plan is actually having the end in mind. What do you want your legacy to be when you pass on? This is a crucial conversation to have at the onset of your overall comprehensive financial plan. Consider this for a moment. If you tell your financial advisor nothing, he or she will likely build out your retirement plan analysis by using a ‘death age’. From the conversations you have with your planner or from some default number in the financial planning software, you will arrive a set age usually in the 85 to 90 range. ...

Read More →

Please Slap My Hand When I Spend Money!

For Generation X, I’ve noticed something over the past couple of years around money that seems to becoming a trend.    Even though you are college educated (maybe an MBA), have a great job as a VP of company, and have traveled to several countries around the globe, you’ve reverted to the behavior you had when you were in college.   The simple rule is this.  If there is money in your pocket, then it’s sure to catch fire sooner than later and burn a hole in your pocket.    It doesn’t matter if it is a new pair of boots you see in a magazine, a remodeling of your bathroom that could probably wait, or staying at the best hotels like a Ritz Carlton or the Four Seasons.   Gen X’ers have seen a terrible recession over the past few years, but the trend is returning that spending money is a hard habit to break.   Gen X’ers have that Cyndi Lauper slang in ...

Read More →

Suze Orman’s New Prepaid Debit Card – Is it really a good thing for consumers?

It’s official.   Suze Orman is now in the game of selling financial products to consumers.    This past week she launched her new card called “The Approved Card” which is supposed to be a low cost alternative to other pre-paid debit cards in the market place.    While Suze gets on television to espouse the latest and greatest ways to make good decisions for your financial future, is a prepaid debit card something consumers need to make their financial picture better? Let me remind you some important notes about Suze Orman.  First and foremost that she isn’t a licensed financial advisor.    In fact, she hasn’t had a securities license since May of 1991.   There are tens of thousands of hard working licensed financial advisors out there trying to help clients every day.   While she spends countless numbers of hours on television trying to tell consumers to stay away from ‘high-priced’ products and avoiding paying people fees and/or commissions, it’s ironic that she ...

Read More →

Personal Finance 101 – College Education Planning – What Types Of Savings Vehicles Can You Use? —

Last week I discussed some of the assumptions you should be thinking about when it comes to planning for the goal of paying for your children’s college education.    Once you figure out the important metrics for each child on how much money you need to save monthly, the next step is to determine which of the myriad savings vehicles out there will serve you best in reaching your goal.   Since the tax laws and legal laws are different from state to state, I highly recommend you consult a financial advisor and/or a CPA before you make any final decisions as each of vehicles have tax and/or control implications down the road.    Here are few types of options that you may consider when investing your lump sum or monthly savings. 529 Plan Or Prepaid Plan – 529 Plans are usually where I get the biggest questions when it pertains to college planning.   Essentially, 529 plans are a way to save after-tax ...

Read More →

Personal Finance 101 – Retirement Planning What Are Your Retirement Assumptions

You often see the commercials on television today asking the question, “What’s Your Number”?   What they are really referring to is the notion of how much money do you need in order to be able to retire.  It’s funny that most people I talk to today don’t really call it retirement.  They really think about the term of making work optional.  This means having the ability to do what they want when they want irrespective of money.   Over the next four weeks on Your Smart Money Moves, I am going to share with you how to really think about the personal financial area of retirement planning. I have always thought about my ‘work optional’ number being the amount of money I actually need on a debit card when I retire to maintain my standard of living the way I want it when I go ‘work optional’.   The mistake that I see in many financial plans is that the assumptions made ...

Read More →