For most small business owners, discussing the pros and cons of a pension plan vs. a 401(k) vs. a SEP IRA is about as exciting as watching paint dry. I get it. Yet, I’ve noticed over the years just how much time entrepreneurs invest in growing their business and how little time and money they spend on designing smart and sensible tax savings strategies that could save them big money at the end of the year.
There have been a lot of books written, articles published as well as countless TV and Radio shows on the who, what and why of the recent stock market crash. In my opinion, “Inside Job” a new documentary is one of the best out there and is in the running for an Oscar. Documentarian Charles Ferguson’s exploration of the 2008 financial crisis and its deep roots walks a fine line, explaining complicated economic concepts while trying not to talk down to lay viewers. If you don't have time for the whole documentary - check out the trailer.
Before I write about a must have insurance policy, let me make it clear that I do not sell insurance. I’m a fee-only financial planner and never sell anything, period.
Upon engaging a new client, one of the first steps in our financial planning process is to assess your current risk management plan. Playing devil’s advocate, I simulate worst case scenarios. What I’m looking for is your current exposure level to risk or put another way, what’s your asset protection strategy. Do you have an asset protection strategy that’s bullet proof? Can you withstand an aggressive attorney’s attack on your hard earned assets or are you vulnerable and exposed?
Growing up, my Mom made sure to teach the lessons of delayed gratification. No dessert until you finish dinner. Who doesn’t remember hearing that growing up? Lucky for me, my dog Bochie was more than happy to act as my willing accomplice so I could get to the ice cream sooner rather than later.
As adults managing our personal finances, the lessons of delayed gratification are more important than ever. Spending money is all about choices. Many of us have a hard time resisting the instant pleasure a purchase can bring us. It’s the impulsive side of us that wants everything now. Who wants to delay consumption when you can buy it now and pay for it later?
If you’re a boomer nearing retirement, no doubt you have read, watched and listened to enough about retirement income planning to probably write a book about this topic yourself. I mention that because, yes, I too am discussing retirement planning, but my info comes with a twist. Please indulge me and allow me to offer you an alternative to the usual suspects when it comes to planning for your financially secure retirement.
It’s usually at the end of the year that you’ll notice lots and lots of articles offering money savings tips. But with the New Year only four months away, putting your tax planning hat on now is a smart financial move as well as a good investment of your time. Similar to investment planning, tax planning is pro-active and has the potential to lower your overall tax bill.
Is it just me, or does it seem that lately there are an abundance of investment professionals that have suddenly been gifted with a crystal ball? Why do I say that? Because every time I turn around there seems to be another “expert” predicting where the economy will be two, four, ten years from now, where the stock or bond market will be or where the price of gold, other precious metals, wheat or oil will be in the future. How can so many so called “experts” have such a diverse set of predictions? The answer is simple-being quoted with a prediction is good for business. So please…take these predictions with a heavy dose of salt.
Before I go much further, let me distinguish between those seeking press for the sake of boosting their business vs. the investment professionals that are truly adding value and knowledge to the community of interested and financially intelligent investors.
