Strong financial planning can help business starters build equity in their companies while saving for their future.
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There are several ways grandparents can help pay for a grandchild’s education without giving money directly to the student. It’s crucial that grandparents, parents and students understand each of the options before deciding which one may be appropriate for them.
Sen. Elizabeth Warren wants to make fixing the U.S. economy a priority if she becomes president, and she has a plan to do it. But long before she was running for president, Warren was a personal finance expert hoping to help the average American take control of their finances. She even co-authored two books on the subject. Her 2005 New York Times bestseller, “All Your Worth: The Ultimate Lifetime Money Plan,” includes her popular budgeting rule, the 50/30/20 budget. According to the 50/30/20 rule, 50% of your income should be dedicated to monthly expenses that are needed, such as housing, transportation and groceries; 30% can go toward wants or discretionary spending; and 20% should be dedicated to savings.
The average American is expected to live to 79, which means that many people are living even longer. And when it comes to planning for retirement, it’s always better to be safe than sorry — which means it’s best to start making small (and large) changes now to make sure your money can last three decades or more in retirement, especially given that the future of Social Security is unclear and some believe that Social Security running out is a real possibility in our lifetimes.
You’re Doing It Because of FOMO (Fear Of Missing Out)
“I have had clients who have retired earlier than they should have because they felt they ‘deserved it,’” said Joseph Conroy, CFP, a financial consultant at Synergy Financial Group. “The problem is while they may have deserved it, they weren’t prepared for it. This can happen more often when there is an age gap between spouses.”
Conroy gave the example of a couple with a husband in his late 60s and a wife in her early 60s where FOMO — or the fear of missing out — got the best of them.
For people like doctors, lawyers and engineers, success takes time … and sacrifices along the way. Once you finally make it, you probably have the urge to start living large, but that could be a mistake.
Professions that take a long time to develop into fruitful careers come with unique financial challenges. For example, doctors sometimes make bad decisions with money. Part of the issue is they get caught in a perfect storm of circumstances that lead to poor financial choices.
You’re busy taking care of your clients’ financial needs, but are you neglecting your own financial plan? One of the biggest challenges is managing cash flow. Most financial advisors are tied in some way to the performance of the market. Generally, as the markets drop, so does the income.
The answer is: it depends. Our financial experts’ insight on whether leasing vs. buying is right for you, will help you make the best decision for you.
Buying a car is very similar to buying a home. If you’re taking out a loan, the lender holds the title until the loan is paid off, and when you want a new one, you can sell it. “The only real difference is, while a home will typically appreciate in value, your car’s value is going to depreciate, which, depending on circumstances can make leasing vs. buying a car more attractive,” says Richard Best, a writer for Dontpayfull.
RETIREMENT IS A TIME TO pursue new passions, says Lisa Odoski, vice president and partner for advisory firm TFG Wealth Management in Newtown, Pennsylvania. “It’s the second phase of your life. It’s the best one,” she says.
That often means trying new activities that, depending on your interests, could get expensive. “The trick is to make sure your hobby is at least revenue neutral,” says Joseph Conroy, author of “Decades & Decisions: Financial Planning At Any Age” and financial advisor with advisory firm Synergy Financial Group in Towson, Maryland. The way to do that may be to look for hobbies that make money as well as fill your time.
Almost everyone I meet, after they learn I have written a book, tells me how they always wanted to write a book. A lot of financial advisors tell me that, too.
But why have so few actually written books? Writing a book is a complicated process, requiring – not to pat my own back – a lot of effort and time. Things are made more difficult given the fact that I am a financial advisor who does not have a writing background.