Wisdom on Wealth

WEDNESDAY MORNINGs AT 7:45

Everyone has money questions, whether it's what to do about retirement, or how to invest for the first time. Each week, Byron Moore offers practical, down-to-earth advice on handling money; and shows that even though money is important, paying attention to it can keep it from ruling your life.

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In order for priorities to be profitable, they must first be planned and then be practiced.

John Maxwell writes, “There are two things that are most difficult to get people to do: to think and to do things in order of importance.” Maxwell says this is the difference between a pro and an amateur.

So, step one is the thinking part – you’ve got to put together an actionable plan that gets you where you want to go as efficiently as possible. Here are the priority areas (as I see them) for any well-rounded financial plan.

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When it comes to spending, are you in control or out of control?

Well if you tilt towards the out of control camp, you’ve got a lot of company. But the good news is…you can change.

But it won’t be easy. And you likely can’t do it alone.

Some people look at themselves in the mirror and see someone who is out of control, impulsive and just plain messed up when it comes to spending habits.

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Question: When we were growing up my father constantly reminded us to be responsible with money. But I always got the feeling with him it was about much more than being responsible. He seemed to get a lot of validation out of how much money we had, which I think went too far. As a result, I find myself shy about teaching my own kids financial responsibility for fear they’ll get the same message from me. Suggestions?

 

Most of the time we communicate our messages very clearly, despite what we say.

No where is that more true than in the home.

Scared of Scams

May 16, 2018
Scared of Scams
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How do you know who to hire when you’re looking for financial advice?

 

Well, I have bit of bad news - slimy types will always be drawn to any profession offering access to people’s money.

The good news is they aren’t the only ones out there.

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Whether you are an employer looking for talent, or a student looking for an internship, we all know there are things you can learn in the marketplace that can never be adequately communicated in a classroom or textbook.  

So far, so good.

But we have to go a bit deeper than that. If you simply aim at everything, you will inevitably aim at nothing.

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Last week, we began looking at the four most common ways to tap into your retirement funds for a regular income stream.

Let me do a quick recap in case you missed it, then I’ll cover the third and fourth methods.

1. Interest only. This once most-common method involves depositing or investing one’s funds so they will produce interest, which is paid out and used as income. As we said last week, one risk is that interest rates fall so low that one can’t live off the pittance of interest produced. Like today.

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For all these years you have been faithfully putting money into your retirement accounts. At first it was hard, but then it became a habit. Then it just became a part of who you are…you’re a saver. And you feel good about that.

But then comes the day you’ve been working for – retirement – and they say you’re supposed to do the very thing that was anathema to you as a saver – take..money…out!

If you are a true, died in the wool saver, it just feels weird. Kind of…risky.

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With interest rates so low, does it still make sense to keep a pile of cash on hand for emergencies?

Short answer: yes!

You may have a line of credit at your bank or a credit card with high spending limits. Btu not a single one of your credit cards comes with a lifetime guarantee. You could get a letter in the mail any day informing you that your bank no longer wishes to extend you credit (under any circumstances) and your credit cards can be canceled with little notice.

Cash … can’t be canceled.

Here are a few reasons why you need to save money:

Advice for Young Adults

Apr 13, 2018
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The only question I get asked more than “which way is the stock market about to go?!” is “Can you give some advice to my young adult children so they don’t end up like me?”

SO…Kids, you heard your mom (or dad). You don’t have to make the same financial mistakes they did. You can do better (and believe me, they want you to!).

Here then is a short list of actions you can take, which if followed reasonably well, will give you the best chance possible for a successful financial life.

Best of all, It’s pretty simple.

Exit Planning

Apr 11, 2018
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You own a business…together. 

Most couples that are in business together know that in order for them to retire, they’ll have to do something with the business. You’ll either have to sell it to a third party or pass it on to the kids…assuming they have more than a passing interest in the business.

If you’ve been married long enough to have adult children (and you’re still together), you’ve figured out that incessant nagging isn’t a good idea. So, congratulations there.

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