Playing Defense! The Role of Insurance in Your Financial Plan
Financial Planning 101: Avoiding Bad Advice
Vince Lombardi once said, “the best defense, is a good offense.” Well, that may be true in football, but, in financial planning, the best defense…is defense. In a financial plan, some set-backs have the potential to be so catastrophic that, recovering from them on one’s own, might be next to impossible. So how do we deal with these? The potentially catastrophic risks? Well, in a word, this is most likely a time for the application of insurance.
Watch “Playing Defense: The Role of Insurance in Your Financial Plan” to hear Jeff’s thoughts on making sure you have proper risk protection incorporated into your plan.
529 Plans & College Savings!
In today’s vlog, Jeff speaks on how to avoid bad advice. Or, maybe, more positively stated: how to insure you are being advised well. In this video, Jeff distills his advice into just two principals: 1) choosing a planner or advisor who is competent, and 2) choosing a planner who is unbiased. To hear Jeff’s thoughts on seeing to it that you are advised well, watch the “Financial Planning 101-How To Avoid Bad Advice” video content.
Should You Buy Real Estate?
In this video, Jeff is talking about 529 College Savings Plans and what he calls: the Good, the Bad, and the sometimes Ugly. 529 Plans have a little of each!
With a 529 College Savings Plan you make contributions with after-tax dollars. However, when you go to withdraw these funds, you will owe no taxes on the gains that your savings have produced, provided that those funds are used to pay for qualified education expenses. That’s a good deal! Furthermore, as of 2018, these funds are no longer restricted to exclusively higher education expenses. Now 529 assets can also be used for private education at the primary or secondary level.
Watch “529 Plans and College Savings!” to learn more about whether a 529 Plan might be right for you!
What Every Millennial Should Know! AKA, The Time Value of Money
So, here’s a question: should you consider direct investment in real estate? Possibly, purchasing a house and then using the rental income to pay off the mortgage that you used to finance the purchase. Certainly, the idea of adding real estate to your investment portfolio has merit. Real estate is a distinctly different asset class. It has different characteristics than other common investment options such as, stocks or bonds. Adding that diversity to your portfolio might be a good idea. However, this question goes a bit beyond that. Here one is asking: should I consider direct investment in real estate? Purchasing an individual piece of property and taking on all the risks and responsibilities that go along with being a property owner. Watch “Should You Purchase Real Estate” to get Jeff’s thoughts on real estate as an investment.
Roth Savings! To Roth or not to Roth: that is the question...
Something that young people far too often waste is that which is among the most powerful wealth generating investment tools, possibly the most powerful investment tool, and it is a something that they have in greater abundance than anybody else. It’s not a stock, it is not a tax strategy or a particular type of retirement account, it is simply the wealth compounding power of: time. In this video Jeff goes through a case study; a scenario in which two friends each begin a savings and investment strategy, and shows the investment compounding power of time on their accounts.
Budgets! 5 Reasons Why They Fail ...And Ways To Fix Them!
In 1997, there came an alternative to traditional, tax-deferred savings. Named after the late senator from Delaware, the Roth IRA, and, some years later its close cousin, the Roth 401(k), was born. With this type of account, things work quite a bit differently. There is no tax deferral for your contributions to the account; you will bear the full brunt of your current year’s income tax when you make the contribution. However, presuming that you let your money stay in that account for the required length of time, not withdrawing it prior to reaching the age of fifty-nine and a half, you will never pay taxes on that money again. Wow.
So, which is better? Are you better off keeping more of your money now, allowing it to grow and collect investment returns, deferring the taxes until later? Or, would it be better to simply bite that proverbial bullet and pay the tax bill, never having to worry about taxes on that money again? Unfortunately, these are questions that do not have simple answers. Watch “Roth Savings! To Roth or not Roth” now to see which type of savings might be right for you and your retirement savings!
Should You Prepay Your Mortgage?
Budgeting! There are few topics of greater importance to successful financial planning than this one! Some would say, it is the cornerstone. And whether your income is five figures, seven, or anywhere in between, failing to have a firm grip on your cash flow can spell financial disaster. So, why would anybody not make a budget?? Well, budgets can be discouraging! And, like having been on one too many diets that failed, when budgets fail it can be tempting to just give up. However, doing so is about guaranteed to result in your own, personal financial chaos! So, in this video, Jeff suggests another option: five reasons why budgets fail…and ways to fix them!
Link to view the Cash Flow Questionnaire: https://docs.google.com/spreadsheets/d/e/2PACX-1vQNFaN6-OW2kT2cP8xkdgaPIjyOug8YdaqPtO2e-KeVQn3QbtBqBolHutGD4jGdhTk2q8G76_sNaQoa/pubhtml
What is a Fee-only Financial Planner?
There probably isn’t a month that goes by that I do not get asked the question, should I be prepaying my mortgage? Seeing the interest expense of your mortgage, paying on an accelerated schedule, and reducing that expense, might seem like the obvious thing to do. In this video, Jeff goes through a few scenarios. He compares prepaying your mortgage, versus other options available to you, and looks at the financial consequences of each.
Have a 401(k)? Congratulations! You're a Money Manager! ...how do you feel about that?
Has this ever happened to you? You get some financial advice that you follow and afterwards you find yourself thinking, "was that really in my best interest, or was I just sold something?" Today’s topic: Fee-Only Financial Planning; planners who do not sell products, and don’t earn commissions or sales loads.
Starting in the early 1980s, many employers began adopting the 401(k) as their retirement savings plan option. Now, approximately 94% of private employers in the US offer a 401(k) plan. The effect of this? You are now the person responsible for overseeing, managing and investing the assets in your plan. In “Congratulations, You’re A Money Manager!” Jeff offers his thoughts as to what your investment options likely are, and which might be most appropriate for you.