If you have never lost a spouse, you can only imagine how difficult it can be for the one who survives. If you have lost a spouse, you know. Over the last several years I have had a number of people in this situation referred to me. It was meeting with one of them a few weeks ago that motivated me to write this entry.
At some point in your life you may have the good fortune to inherit money. Otherwise you may have a different type of windfall and “come into some money”. It could be a severance payment, lottery win or an IPO that explodes the value of your stock options. Making the wrong moves when you receive a large amount of money in a single transaction can lead to regret, stress and financial ruin.
About 10 years ago I was having a first meeting with a person who was referred to me. It was our normal “get to know each other” first appointment. At one point she pulled out an account statement summarizing most of her investments. I asked her how she decided what investments to buy and she said she had an investment manager “back east” that she really liked. I asked what she liked about her and the response was, “she returns my calls” and “”She doesn’t charge me that much”. Well, I took a look and her account was being traded like crazy. Her portfolio was being turned over more than 100% per year. I took a look at her tax return and there were a lot of gains listed attributable to this trading. That was the good news.
How Do Financial Advisors Help With Tax Planning? Read More »
This topic is one of the most misunderstood, yet vital topics to be included in your overall financial and estate planning. This one issue causes more retired folks to lose their home and go bankrupt than any other. Having a written plan to instruct family members, friends, successor trustees and those holding powers of attorney is a “must include”element to your retirement and other financial plans.
I have been fascinated by the Golden State Warriors and their meteoric rise to the top of the basketball world in one season. Without making major changes they have secured the best record in basketball, led the league in both offense and defense, and set many franchise “bests” in a whole range of categories (Wins, consecutive wins, point differential, three point shooting, etc…..). The way they play has brought me back to enjoying NBA basketball for the first time in years.
Golden State Warriors are a Blueprint for Success Read More »
For years, I have been hearing folks refer to “my Financial Advisor”. When I ask them what that person does for them, they usually say something to the effect: “they take care of my investments”. I will then ask if they provide any other services and the usual answer is no. I would not call these folks financial advisors, but Investment Advisors or Wealth Managers.
Take a moment and think back a few short years, its early 2007, things look great. Your house has never been more valuable, your retirement accounts have been humming along and you just got a promotion at work, then all heck breaks loose. Stocks drop by more than half, your job is gone and you fall behind on your mortgage. Maybe this didn’t happen to you, but it probably happened to someone you know. I want you to close your eyes and remember, how did you feel when that happened? Were you able to keep on going, feeling good about things and ignore what was happening in the markets, or were there sleepless nights and anxiety? Were you a seller or a buyer?
As the April 15 tax deadline approaches the frequency and variety of scams relating to taxes are picking up. A few weeks ago, when I walked into our house after work, Davi (my wife) had a very worried look on her face. “Are we in trouble with the IRS?” she asked. “We got this message and I am nervous.” So I listened to the message and I could understand her concern. The voice, with a thick Indian accent, said that we owed taxes and if we didn’t pay right away there would be serious consequences, even jail and forfeiture of our home and other assets. The caller ID identified the number as the IRS and was from the 703 area code. I told her that the IRS doesn’t call people and demand payment. They send letters before any phone conversations take place. A couple of days later, I read an article in the local paper about this scam and a few days after that, we received 5 more threatening messages, all left one after another, each more ominous than the last.
You may have heard this week that Chris Borland retired. Why is this important and what can we learn from his decision? Well first, you need to know who he is. Chris Borland is 24 years old, which may seem a bit young to retire. He retired from the San Francisco 49ers football team. He cited concern over long term negative health effects from playing professional football.
I find that most people I meet are not sure how to invest in their retirement plan and they definitely don’t understand the choices being offered by their plan at work. This is why so many opt for a so called “Target date fund” that has a date near to their expected time to retire. Ah, if it were only that easy.