How Some Financial Decisions Are Like Bounce Houses

December 07, 2012

I read this article about the increasing number of “bounce house” injuries and at first I thought it might have been a hoax. But then I remembered a bunch of kids’ birthday parties that I’ve attended and if my memory serves me correctly (and that’s not always such a sure thing!), there has been at least 1 injury at each party. One was particularly memorable because it was one of my good friends who was in the bounce house with her son and his head collided with her lower lip. A whole lot of paper towels and a few stitches later, she had a fat lip for over a week. Her son, to this day, jokes with her about the time he nearly knocked her out and made her go to the hospital. (It was an urgent care center but he likes to embellish a little bit for an audience.) Everyone loves the idea of a bounce house. Not everyone loves the end result of jumping around in one. They may look wonderful, but it isn’t all a 100% pure joy. Continue reading “How Some Financial Decisions Are Like Bounce Houses”

What Your Financial Planner Needs to Know About You

December 06, 2012

One of the questions I commonly get from people is about what information to bring to a financial planning consultation. In my own meetings with employees, some people come with spreadsheets or even thick binders of information while many bring nothing at all. In both cases, they often have no idea what information is relevant and useful in making financial decisions. Whether you work with a planner or manage everything on your own, here is some information that you’ll want to have at your fingertips: Continue reading “What Your Financial Planner Needs to Know About You”

Are the Rich Really That Different?

November 29, 2012

At Financial Finesse, we are expanding more into financial planning for high-income executives, which is surprisingly an underserved population for unbiased financial guidance. Many high net worth individuals have access to financial advice but not necessarily from an unbiased source. I recently had the opportunity to work with a group of senior executives with much higher incomes and account balances than the employees that we typically talk with. Now, you may expect that those in the top income tax brackets would have significantly different financial problems than the rest of us and to some extent you would be right. They’re generally able to cover their expenses so they usually aren’t struggling with debt or cash management problems. But other than that, many of their problems are the same ones typically facing other people at the same stage of life. They just have more digits in their numbers. Here are their three biggest financial issues: Continue reading “Are the Rich Really That Different?”

How to Prepare for an Impending Divorce

November 28, 2012

Marriage is not easy. (Can I get an AMEN?) Marriage takes a lot of work, a lot of sacrifice, and a lot of compromise. Couples must find a way to bring two separate worlds together, and that means finding common ground on everything from having children, to where you spend Thanksgiving. Continue reading “How to Prepare for an Impending Divorce”

With the Election Over, Now Really Ask Yourself If You Are Better Off Than You Were Four Years Ago

November 26, 2012

Are you better off than you were four years ago? Now that the election is over, it is not a question loaded with political implications so you can actually take some time to think about your answer. It is actually a very important question and here is another one, where are you headed four years from now? Most people, unless they work in politics, don’t anchor their life on four year increments but you could — it may actually be very useful financially to do so. Continue reading “With the Election Over, Now Really Ask Yourself If You Are Better Off Than You Were Four Years Ago”

Favorite Financial Resources That Help Me Manage My Money

November 21, 2012

This week, I’ve been asked to write on my favorite financial resources that help me navigate the financial universe. There are literally thousands of resources dedicated to helping people manage their finances, but for me, it really boils down to just a few simple resources that have helped shape my views about money and have led me to a career teaching others how to manage theirs. I’ve broken them down into the categories of philosophy, curriculum, and tools & resources: Continue reading “Favorite Financial Resources That Help Me Manage My Money”

Work More, Stress Less?

November 09, 2012

In several of my recent conversations with employees of companies that have access to our financial helpline, I have talked to people about their monthly budget. Often, the line between success and failure for their monthly budget has been a matter of a few hundred dollars per month. In a good month, they have $100-$200 in excess cash flow. But…it seems like there is NEVER a good month and there are ALWAYS extra expenses. A car breaks down, kids get sick and need to see the doctor and get a prescription or there is some other expense that blows up the monthly budget. For people who are in this situation, there are a few things you can do to make it more manageable and reduce the stress level of the situation. The cumulative level of stress was very evident in their voices, and the reason they called the financial helpline was to find a solution to their budget issues but also to drastically reduce the daily level of stress. Continue reading “Work More, Stress Less?”

5 Unromantic Reasons to “Put a Ring On It”

November 08, 2012

I’m amazed at how often I speak to people who have lived with a significant other for many years and even have children together but haven’t tied the knot. Now, I’m not trying to make a religious or moral argument for marriage. In fact, I’m a bachelor myself. Rather, I think it’s important for these couples to understand the various financial implications of “living in sin.” Continue reading “5 Unromantic Reasons to “Put a Ring On It””

Check Your “Financial” Smoke Detector

October 31, 2012

We all know it’s a good idea to check the smoke detectors once a month to make sure they are working properly, but let’s be honest; how many of us actually do? If you’re like me, you probably don’t even know the smoke detector is there until you burn the toast. It’s not that we don’t care about safety (although I do like to live on the edge). Most likely it’s simply because it’s out of sight and therefore out of mind. Continue reading “Check Your “Financial” Smoke Detector”

What to Do With a Windfall of $10,000

October 22, 2012

Ten thousand dollars is a lot of money but certainly not enough to make you independently wealthy. I remember watching the California lottery television show when I lived in Sacramento. The lottery ticket scratcher winners were chosen randomly to be on the show. Then a few lucky people were pulled from the audience and got a chance to spin a wheel so a ping pong ball would determine whether they won a million dollars all the way down to a minimum $10,000. Most people actually won $10,000 but every single one of them had high hopes of winning the million. Continue reading “What to Do With a Windfall of $10,000”

What to Do with $100

October 15, 2012

People often ask me what to do with $10,000 or $100,000 because they have saved those assets in their 401(k) and want to make sure they are invested appropriately for their retirement. I can’t recall anyone ever asking me what to do with $100, but that question may actually be the key to financial security and building wealth. Continue reading “What to Do with $100”

Can You Really Trust Your Financial Adviser?

October 04, 2012

When it comes to financial advisors, we often hear the term “trusted adviser” so often that we can take the “trusted” part for granted and forget just how important that trust is. This is someone we may entrust with some of our deepest and most intimate goals, our financial secrets, and our life savings. Yet, we often rely on very little to decide who’s worthy of that trust. We may choose an adviser based on who greets us at the nearest brokerage office, a cold call, a casual recommendation from an acquaintance, or even who happens to be sitting next to us at our child’s soccer game. Equally difficult can be the decision of when to fire an adviser we’re working with, especially if it’s been for a long time. Continue reading “Can You Really Trust Your Financial Adviser?”

Is Your Work Really Fulfilling?

September 19, 2012

Saving money isn’t easy, and every now and then I need to remind myself why I do it. I watched the national political conventions a few weeks ago and heard a lot of speakers talk about the “dignity” you feel from having a job as though the mere act of doing work provides personal fulfillment. I am deeply sympathetic to the millions of American struggling to find work in order to pay bills and to those who need every dollar they earn just to make ends meet. At the same time however, almost every day I meet people who tell me how much they don’t like their job or don’t like going to work. I find no dignity, only profound sadness, in thinking that most people will probably spend day in, day out, for most of their lives doing something they really dislike, dreaming instead about doing something else. Continue reading “Is Your Work Really Fulfilling?”

Should Married Couples Have Separate Accounts?

September 19, 2012

Susan and I have been married for seventeen years, and when we were first married, we decided to pool our financial resources and have one checking account. This made sense since at the time, we shared all of our expenses. In fact, for most of our married life we have maintained a joint checking account, but several years ago, I asked Susan to open her own checking account. With all of the different inflows and outflows of money, it was getting harder and harder to keep track of how much was available at any point in time, so I asked her to open a separate account as a way for us to keep better track of how much we could spend on food, clothing, and other expenses associated with running a household of four kids on a daily basis. Continue reading “Should Married Couples Have Separate Accounts?”

What Another Obama Term Could Mean For Your Wallet

September 13, 2012

With the party conventions now over and the presidential election cycle in full swing, you may be wondering what the candidates’ plans might mean for you personally. Last week, we looked at how a Mitt Romney presidency could affect your wallet and this week we’ll do the same for a second Barack Obama term. Let’s start with the good news: Continue reading “What Another Obama Term Could Mean For Your Wallet”

How the Wealthy Think Differently Than the Rest of Us….

September 07, 2012

Last week, I talked about the messages you give yourself prior to setting goals. In the next 60 days, you’re going to hear a whole lot of political messages talking about the poor, the middle class, and the rich. I’m not going to get into a political discussion about which policy positions I think would be best for the country, but I will talk about some financial behaviors and attitudes discussed by the author, Steve Siebold, of a book called How Rich People Think. I read an article written about 21 ways rich people think differently. While they are all important differences, a number of them stand out as things that we can all do better and perhaps take our own financial lives to greater heights. If we all started to think a little bit more like this, I can only imagine what differences we could make in our lives and the lives of our families. (Disclaimer: I am NOT part of the top 1% of income earners in the country. I just happen to have been fortunate enough to advise a portion of that population in my career) Continue reading “How the Wealthy Think Differently Than the Rest of Us….”

Money and Marriage: The Missing Manual

September 03, 2012

It is commonly known that money is the leading cause of marital problems. As a financial planner working with couples for over 25 years, I have seen why. Couples often take the wrong approach to love and money, thinking that love and money don’t mix. Continue reading “Money and Marriage: The Missing Manual”

Warning: Getting a Second Opinion on a Financial Advisor May Have Saved This Woman’s Retirement

August 20, 2012

“Interview at least three financial advisors in your area and then call me back for a second opinion on your top choices.” That was the guidance I gave to a woman who called our financial helpline. She is retiring in about six months and wants to have a relationship with a local financial advisor when she retires. We discussed what she was looking for, how to find someone, and what questions to ask, and I sent her a follow up resources that had the list of questions. We talked about choosing someone who has made a commitment to their industry by earning a CFP® or ChFC® designation or a masters degree in financial planning. After giving her some links on how to search for a planner (click here) and some questions to ask (click here for the resource), she set out to find one. Continue reading “Warning: Getting a Second Opinion on a Financial Advisor May Have Saved This Woman’s Retirement”