Are you planning on a miracle or planning for success in 2012?
Are you planning on a miracle or planning for success in 2012?
I heard two new great phrases pertaining to money this week. The first was “living below your means” which I wrote about in a previous blogpost after hearing Suze Orman promoting her new Money Class. Living within ones means is now a common phrase, but below ones means? – now that’s a concept that I truly hope goes viral.
The second phrase appeared in an article one of my favorite clients, Eddie M sent me – the phrase is “time affluent.”
Of all the many golden rules when it comes to managing money, one of the most classic and familiar is to “live within your means”. How many times have you heard that expression?
But how about “living below your means”? Suze Orman, (whose style is not my favorite, but whose message is clear and spot on) has a new series called The Money Class which is where I heard the phrase living below your means. I’ve watched some of her specials before, yet I think this is her best yet. From the intro I watched on PBS, I believe this Money Class series is going to really benefit many, many people in bad financial shape.
No, this is not an oxymoron. Over 200 people that make over one million dollars per year are asking, practically begging, the leaders in Washington to raise their taxes. I have never seen anything like this in my life.
To counter the image that most if not all wealthy people are greedy and only care about their own self interest, this group of citizens are determined to shake things up and let us all know that they deeply care about the social contract we have with all our fellow citizens and that they are deeply passionate about our collective common good.
I'm a big a fan of former U.S. Secretary of Labor Robert Reich, so I wish I could have been on the steps of Sproul Hall at UC Berkeley last night where Reich gave the annual Mario Savio Memorial Lecture.
Reich called his speech "Class Warfare in America," and he talked about the concentration of wealth in the US at the top of the economic pyramid, and what he called, "the irresponsible use of wealth to undermine our democratic system.”
Last week Lemony Snicket's Daniel Handler wrote these 13 Observations on Occupy Wall Street. I caught him on Rachel Maddow's show last Friday where he shared the story of how these observations came about.
While taking a swim at his health club, he found he had to share a lane as it was a little more crowded than usual. The guy he was to share the swimming lane with wasn't too happy about it, and had no intentions of sharing his lane because, "I'm a major donor in this building, so I don't think I have to share a lane."
When considering the retirement alternatives out there - people are getting more and more creative in their thinking. Karen DeMasters outlines some other options you may not have considered, including what is known as a '"transitional strategy', in an article she wrote that appeared in the most recent Financial Advisor magazine.
In laying out a case where when approaching retirement, one has to balance both time and money, the article states, "T. Rowe Price believes that even if you both work part-time in your 60's while you begin playing, the financial benefits may be significant, or, in some cases a couple may choose to have one spouse retire while the other continues working." It's not often you read an article about retiring with the phrase 'funding your fun' in it.
Over the years, I’ve heard the same concerns again and again by people who are dipping their toes into the financial planning waters for the first time. As when I started Spiritus Financial nine years ago, my aim continues to be on financial education and empowerment, not on selling. The more you learn about money – the more successful you’ll be financially. So here they are, the five most common myths I’ve encountered in my financial planning practice.
I suppose that depends on how one defines risk. I define it as running out of money before you run out of life. If a major allocation to fixed income will produce returns that virtually assure you of depleting your portfolio in this lifetime, how can one define that as a low-risk portfolio?
Adding the appropriate allocation to equities may create more fluctuation, but it could reduce the risk of running out of money. Before constructing an investment portfolio, one must not only measure 'risk tolerance,' but the return necessary to achieve their goals.
In an recent article by the Financial Planning Association (FPA) a 2010 study of wealthy female investors showed that women were more likely to consult a professional advisor than men. One reason is that women in general are more cautious or conservative when making financial decisions.
According to the study, in addition to seeking professional financial advice, women are opting for more education around money issues. And just like the old stereotype about the differences between men and women in asking driving directions (in pre-GPS days) - women are not afraid to ask for financial guidance and advice.
