Wealth Management 101
Do I Need an IRA?
March 19, 2024
An IRA can be a powerful wealth building and tax optimization tool. But with all things governed by the tax code, there is nuance. In this article I outline the what, why, and how of IRAs so you can decide if you need one.
New Year, New You: Setting Financial Goals in 2024
January 23, 2024
It’s been a rough couple of years for investors.
2022 saw the worst market for bonds in history. Stock investors didn’t do much better, suffering the worst year since the Great Financial Crisis in 2008. And while the stock and bond markets did deliver better results in 2023, these results came with volatility and many reasons to be fearful as inflation raged and interest rates rose to levels not seen in well over a decade.
UTMAs for Young Investors
February 20, 2024
Most of us started our investment journey as young adults with our first 401(k) or IRA. I find many investors are largely unsure of how to invest but press on anyway because they know it is important to save and invest for the future. If this was your experience, ask yourself: What if instead of being confused and uncertain you had been confident? Would that have changed anything about your present and future?
Tax Loss Harvest Time: Making the Most of Your Losses
November 28, 2023
Ah, autumn! The harvest season! Right now, images of pumpkins, squashes, fall fruits, and overflowing cornucopias abound. But what does this have to do with investing? I’m glad you asked. This fall, as thoughts turn to wrapping up for the year’s end, consider the idea of Tax Loss Harvesting. Put simply, if you have investments that have lost value, you might be able to use them to avoid taxes on investments that did better.
HENRYs and Why I Love Them
December 12, 2023
The first time I heard the term “HENRYs,” I cocked my head to the side and gave my colleague Steve a look of utter confusion. What is a HENRY? He kindly explained to me that HENRY stands for High Earner, Not Rich Yet. As soon as he explained, I knew that I finally had a word to describe my favorite clients. This is my love letter to all the HENRYs of the world.
Financial Advisor vs. Financial Planner: What's the Difference?
September 19, 2023
I often hear clients use the terms Financial Advisor and Financial Planner interchangeably. Some professionals call themselves Wealth Managers. With all these poorly defined terms, it’s no wonder many people new to personal finance are confused about what people like me can offer. You can’t possibly hire the right person is you don’t know what you are looking for. This month’s Wealth Management 101 is all about the titles we use, what they each (typically) mean, and what the professionals who hold them do.
How to Hire a Financial Professional
October 17, 2023
Why didn’t I title this post “How to Hire a Financial Advisor”?
If you read last month’s post, you’ll know there are a wide variety of professionals with various titles, and a Financial Advisor may or may not be what you need. The key to hiring the right financial professional is knowing your needs and which type of professional is qualified to meet those needs. Then, it’s a matter of asking a few key questions.
The Three Ss of Stocks: Size, Style, & Sector
May 23, 2023
When you talk to your Financial Advisor, it might feel like they speak a different language. “What’s a Mega Cap Tech stock?” you may wonder as your advisor plows through a dense investment presentation. Every profession has its jargon understood by insiders – finance is no different. While every advisor’s goal should be to speak plain language, jargon is sometimes unavoidable.
In my ongoing quest to help you become a savvier, more confident investor, this month I’m defining three major ways stocks are categorized and why those categories matter.
Do I Need a Financial Plan?
August 15, 2023
Does everyone need a Financial Plan drafted by a Financial Planner? No. Not everyone needs a Financial Plan, and not everyone needs to work with a Financial Planner. You didn’t think the post would be that short, did you? I take a great deal of pride in my work and believe wholeheartedly in the value of what I do. But I also recognize that not everyone needs me (or someone like me). But some key turning points and circumstances could lead you to need services like mine. But first, what is a Financial Plan anyway?
A Guide to 401(k): Learn All the Basics
May 23, 2023
If you work full-time and aren’t self-employed, there is a good chance that you have access to a 401(k) plan. There is also a good chance that you don’t understand the plan well. A 401(k) plan is a powerful tool for building wealth. Understanding it will help you make informed decisions about using this tool in your wealth-building efforts. In this article, I’ll teach you the basics. I’ll use plain language as well as outline potential steps you can take to make the most of this benefit.
Mutual Funds & ETFs
June 20, 2023
DIY investing is everywhere, and there are more ways to invest now than at any point in our collective history. But in my life as a Financial Advisor, I observe many individual investors are still confused about the different investment vehicles available.
In my ongoing quest to make you a better investor, I’m offering a tutorial this month on two of the most well-known- yet poorly understood investment vehicles available – mutual funds and exchange-traded funds.
10 Investing Mistakes to Avoid
March 21, 2023
My father used to say, “We teach by example, but we learn by experience.” Nowhere is this more true than with investing.
Investing mistakes can be costly, not just in dollar terms, but in terms of reaching your goals. I want to save you the experience of making these mistakes so that you can learn from my example.
Saving Money: How much should I be saving? And where?
April 18, 2023
“How much should I be saving? And where?” In the context of a financial plan, this question is the one I hear most from those seeking savings advice. Money is finite. You have financial goals for today, goals for five years from now, and goals for 30 years from now that must all be balanced. So how do you get the most bang for your buck when it comes to saving money?
When Do My Investments Get Taxed Exactly?
December 17, 2022
As the famous saying goes, only two things in life are certain: death and taxes. Most of us understand how our paycheck drives our taxes — we earn money, and the federal government taxes it.
But how do our investments drive our taxes? What actions trigger taxes? What actions mitigate taxes? And what choices might be driving up (or driving down) our taxes? In my ongoing effort to help you, dear reader, understand all things personal finance better, this month's edition of Wealth Management 101 will answer the question: "When exactly do my investments get taxed?"
Five Steps to Getting Financially Fit
February 21, 2023
The New Year often brings thoughts of getting fit. Yes, I know that usually means physically…but why not financially? The thing is, few of us know what it really means to be financially fit. And even fewer of us know how to get there. This article will cover the five key elements of financial fitness and how to achieve them.
Making a Will: What's the Big Deal?
October 18, 2022
When I sit down with a client to review their overall financial health, I almost always ask if they have a will in place. My Type A’s typically do, but the majority of others don’t. Overwhelmingly, the reasons clients give for not having a will are: 1. It’s not that important 2. I don’t want to think about dying There’s not much I can do about the second reason, but maybe I can help with number one.
How Should I Pay Down My Debt?
November 15, 2022
Debt — most of us have it. While debt can be an excellent tool to achieve major milestones like a college education or a home purchase, it can also be corrosive to your financial health and stability. And very few “regular folks” have ever been educated on how to deal with debt optimally. In my ongoing quest to bring good financial advice directly to you, this month I’m taking on debt.
Risk Tolerance: What is it? Why does it matter?
August 15, 2022
When I sit down to talk with new clients and prospective clients who are considering the decision to hire me, I often ask them about their “risk tolerance” or “risk appetite.” “Have you ever completed a Risk Tolerance questionnaire?” I ask. More often than not, they shrug their shoulders and tell me they don’t even know what Risk Tolerance means.
4 College Savings Options for Your Child
September 20, 2022
Fall means back to school and that may have set you to thinking about what happens once your little ones finish high school. In the spirit of the back to school season, I’m going to dedicate this month’s Wealth Management 101 to college savings.
In Praise of Simplicity: Tips for a Healthy Portfolio
June 21, 2022
All too often, clients come to me with investment ideas they like. Some are good and some are not so good, but many of them are complex. As humans, we are often seduced by complexity, as though the more glamorous or intricate an investment instrument is, the better it must be. Why own a set of simple and low cost index funds when you can buy a hedge fund? Why buy and hold when you can trade actively? Is the market falling? Why not short some stocks?! Just think of the possibilities!
Just Eat the Treat Already
July 26, 2022
Walking down the stairs one afternoon, I saw my little dog Foxy resting on her spot on the couch. As I got closer, I saw her tiny body stiffen, her ears turn down, and her eyes grow big. Arriving next to the couch, I asked her: “Foxy, what are you doing?” She responded with a soft growl and moved her body to cover a small lump in her blanket. She was hoarding a treat.
3 Reasons You Might Need a Financial Advisor
April 19, 2022
Does everyone need a Financial Advisor? No. not everyone needs a Financial Advisor. But have you ever wondered how you would know if you needed one or not?
How Do Taxes Work?
May 17, 2022
The U.S. tax code is a mystery to the typical individual. But federal taxes (not to mention state and local taxes) are a big expense for most of us — and most of us are interested in paying less in taxes. But you can’t mitigate what you don’t understand. In this installment of Wealth Management 101, I’m going to lay out the most common types of federal taxes we all pay, give you some insight into how each works, and outline ways to potentially lower your tax bill.
Want To Be Wealthy? Then Plan On It
February 15, 2022
Add this to the long list of things I hear that drive me crazy: “Financial Planning is just for rich people.” Let me say it louder for the people in the back: In general, you don’t become rich (or wealthy) without planning to do so. I understand that you may be skeptical, so please allow me to break down my passionate argument for the value of Financial Planning in your long march toward wealth.
Why Financial Advisors Charge Fees, and Why That’s OK
December 14, 2021
We live in an age of self-service. We ring up our own groceries, do our own taxes, shop for our own insurance, book our own vacations, and invest our own savings. The innovations that allow us to do these things have led to lower costs for providers and consumers, making these goods and services cheaper to consume and thus more widely available. I believe that this is a good thing.
What Is Asset Allocation & Why Does It Matter?
October 21, 2021
Financial experts like to use jargon — it’s a character flaw, I must admit. And one piece of jargon you hear often is “asset allocation.” While this can sound intimidating, it’s actually a very simple concept. Asset allocation is how you divide (allocate) your savings (assets) between different types of investments. Those types of investments typically include stocks, bonds, cash, and sometimes real estate or alternative investments. When we talk about asset allocation, we typically talk in percentages. As in: let’s allocate X percent in stocks, Y percent in bonds, and Z percent in cash. So, we know what asset allocation is — but why does it matter?
Building Wealth With an HSA
September 21, 2021
Open enrollment season for employer benefits is upon us, and once again we are all being asked to make a big batch of decisions that will impact our welfare in the coming year (and our long-term prospects as well). As you gaze into your crystal ball and try to predict your needs over the next 12 months, allow me to put a bug in your ear about a little-known but highly valuable wealth-building tool that you may want to include in your upcoming benefit elections.
Understanding Credit: Your Score vs. Your Report
August 17, 2021
Credit: Most of us will need it at some point, but few of us really understand how it works. In fact, we may get our initial rude awaking when trying to make our first-ever big, meaningful purchase. If you have large financial goals like buying a home, buying a car, or financing a business startup, credit may play a key role in realizing those goals. Now is the time to educate yourself so you can be ready when the time comes.
Pre-Nup, Post-Nup: Which is Right for Me?
July 20, 2021
First marriages are happening later and later in life and second marriages are common as well. This means that more and more people are marrying at a time in their lives when they have meaningful assets like homes, retirement accounts, or businesses that they built up before the date of marriage. And while most enter marriage believing that it will last forever, we know that won’t be the reality for nearly half of all couples. If you failed to plan, you may find yourself waving goodbye to half of the assets that you worked so hard to build during your single days. So, how do you protect yourself and make any future divorce proceedings as painless as possible? A set of Nuptial Agreements is a good place to start.
What Is Diversification? And How Do I Do It?
March 16, 2021
If you’ve read almost any book, article, or blog on investing, you’ve seen the word “diversification.” But experience has taught me that most investors — even educated ones — still don’t understand what diversification is, how it works, or why it’s important. In my continuing crusade to offer plain English explanations of sometimes complex topics, I’m taking on this vital and often misunderstood concept. Strap in. This is going to be fun! (I promise.)
Romance, Money, and the Business of Marriage
February 15, 2021
It’s February again, and lovebirds all over the United States are preparing to celebrate with flowers, candy, and maybe even a beautiful engagement ring. It’s easy to get swept up in the romance of getting married, and planning a wedding can be one of the most fun and joyful times in a person’s life. But before you light the unity candle, say “I do,” jump the broom, or break the glass — make sure you’ve done your financial homework together.
Why We Do Stupid Things With Money: A Three-Part Crash Course in Behavioral Finance - Part III
January 18, 2021
Part III in a my three part series on Behavioral Finance. By simply being aware of our own potentially flawed thinking and vulnerability to emotional biases, we can check ourselves in real time to see if we might be on the verge of a poor decision. However, I suggest you do some legwork to set yourself up for success.
Why We Do Stupid Things With Money: A Three-Part Crash Course in Behavioral Finance - Part II
January 11, 2021
Part II in a my three part series on Behavioral Finance. Let’s agree that humans are flawed and our thinking is flawed. Let’s further agree that we are rarely completely rational. Now that we’ve accepted our own human frailty, let’s discuss the nature of these frailties and how they can cause us to make poor decisions.
Why We Do Stupid Things With Money: A Three-Part Crash Course in Behavioral Finance - Part I
January 4, 2021
We’ve all done it — made a poor decision about money. Maybe it was because we didn’t know any better. Maybe it was because we got some bad advice. Or maybe it was because we fell prey to a cognitive error or emotional bias. The software that operates our brains is rather outdated, written thousands of years ago to help us survive in a very different type of world. Our brains have yet to catch up to the realities of our modern world. That prehistoric lizard brain we all have deep inside us can really muck up our thinking. Nearly every investor will have to face down their own lizard brain at some point during their financial lives.
How Should I Invest My 401(k)?
October 19, 2020
Back in August, I wrote all about saving and where to put those savings. One of the first places I advised you to save was in your employer-sponsored retirement plan. For most people, that plan is a 401(k). This month I’ll be laying out principals and rules of thumb you can use in making choices that fit your specific situation.