financial planning

Predictions

Sep 12, 2018
Thomas Hawk / Flickr.com https://tinyurl.com/y8xhg4xu

Stop trying to aim at (and hit) a target you can’t see. Doing so usually results in harm to yourself or others.

Here’s a news flash: the future is really, really difficult to predict. For every economist pessimistic about the remainder of 2018, I can find you an optimist. But to be honest with you, I have no idea which one is going to be right about 2018. Or 2019.

 

In April 2000, the International Monetary Fund released a statement affirming that “the picture for global growth is a strong and quite positive one for the year 2000 and we believe beyond.”

Aim For the Sweet Spot

Sep 5, 2018
William Murphy / FLICRK.COM https://tinyurl.com/ycp3vcyn

“What really makes for a good financial plan?”

“What all I should try to plan for?”

“What do most people do?”

I get these sorts of questions from individual who come to see me for the first time.

What do most people do? Nothing.

Or they wait, saying they’ll do “something” later. Waiting allows you to do nothing, but with dignity.

ShinyPhotoScotland / Flickr.com https://tinyurl.com/y7m4j3vl

Are you an optimist or a pessimist?

 

You remember what Garrison Keillor used to say about the children of Lake Wobegon, who are “all above average.” Sociologists have tagged this “illusory superiority,” or the tendency we all have to overestimate our positive qualities. CBS News reported on a classic 1977 study in which 94 percent of professors rated themselves above average relative to their peers.

So, most people view themselves as positive, optimistic, capable people. If this is how you see yourself, you are…average (sorry).

Getting back to normal

Jul 25, 2018
Ren Kuo / Flickr.com https://tinyurl.com/yb9a5cqa

When are things going to get back to normal?

Funny, isn’t it - things are always getting back to normal. But they are rarely normal. What’s that all about?

In math, they call this reversion to the mean. A simpler way to express this might be “the more things change, the more things stay the same.”

Investment Zen / Flickr.com https://tinyurl.com/y7lb7lmq

Is it a good idea to pay off your home mortgage loan early?

I find there is an economic answer to that question and an emotional answer to that question.

 

Which is right? That depends on who YOU are…

Well, I’m glad I could clear that up…

Maria M / Flcikr.com https://tinyurl.com/y9tfdkfu

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.

Exit Planning

Apr 11, 2018
Chris Griffith / Flickr.com https://tinyurl.com/yawlybyn

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.

Dogan Kokdemir / https://creativecommons.org/licenses/by-nc/2.0/legalcode

Financial planning is very important at any phase in life.  It becomes even more important when older adults have to make crucial decisions relating to long-term care.  Pre-planning helps when the time comes to seek long-term care. 

Jordan Smith, a financial planner for senior citizens, explained that many times people may suddenly enter a long-term care facility without any financial pre-planning.  In those instances, financial advisors for senior citizens could provide crisis planning.

Vimal Kumar / Flickr.com https://tinyurl.com/ychaps6l

You are a very normal, average American.

You know financial trouble is down the road – even a cursory look at what you’ve got in the bank and in your 401K proves that. But the thought of what it would take to fix things is just too much to fathom.

So instead of dealing with it, you put it off…again.

You put off thinking about it in your 20s because, hey, you had your whole life ahead of you.

You put it off in your 30s because you were having kids and stuff.

And you put it off in your 40s because now putting stuff off had just become a habit.

Jake Kitchener / Flickr.com https://tinyurl.com/y7yt6shv

How much money do you need to save?

The answer: enough.

What other answer makes sense?

OK. But “enough” to do what?

Enough to make you financially free during your working years and enough to make going to work optional as soon as possible.

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