financial advice

JM / Flickr.com https://tinyurl.com/y5f92zuz

“I trust my wife completely,” he said to me. “It’s the guy after me I’m worried about.”

“I’ve decided to buy a pretty large life insurance policy on myself so that if something happens to me my wife can keep raising the kids,” he explained his reasoning to me…

 

“She would have to forgo much of her career to raise our kids alone, so it wouldn’t be fair for her to have to go back to work later in life just because I died early.”

Kat Grigg / Flickr.com https://tinyurl.com/yag6cofe

I talk to a lot of parents who want to actually see their adult children enjoy the wealth they will one day pass on to them.

 

But these same parents don’t want to give themselves broke so that those same children will one day have to take care of them financially. And they also don’t want to create dependency of their adult children on financial gifts they might give them.

The secret to finding balance is having a plan.

Salesman or advisor?

Jan 2, 2019
jerseygal2009 / FLICKR.COM https://tinyurl.com/y7b6j8mo

Along your way to finding a prince of a financial advisor, you might have to kiss a few frogs.

I hate buying clothes or cars, and it’s not just because of the financial cost. I hate spending my time shopping.

So, the last time I bought a car, I looked around on the internet (like most car buyers do these days). I was looking for a car I thought might be the proverbial right car at the right price. Then I took a deep breath, prayed for patience and walked in the dealership. How painful was this going to be?

Europeana EU / FLICKR.COM https://tinyurl.com/y9t6pvfe

When it comes to investment advice, you have to decide if you are purchasing a commodity or a specialty item.  

A commodity is something usually uniform in quality between companies that produce or sell it. You cannot tell the difference between one firm's product and another. When dealing with a commodity, price is the only thing that can differentiate. It becomes all important. Why buy a bag of sugar for $2 when I can buy the same bag for $1?

pseudoplacebo / Flickr.com https://tinyurl.com/yagbz9o3

Do you have a wish list?

If not, I suggest you get one and keep it up to date.

We are living in an age where thrift is valued little, where gratification is rarely delayed and where consumers are bombarded with messages of why we need everything now. For this reason, I am often telling folks to slow down, get their financial lives in order and then think before they spend. It’s about being intentional and balanced.

In days gone by, they called this “thrift.”

Intra-family Loans

Oct 10, 2018
GotCredit / Flickr.com https://tinyurl.com/yd96kymk

Banks and other financial institutions play a wonderful, indispensable role in our economy. They are the intermediaries that most efficiently bring together large numbers of savers looking for a safe place to store their money and borrowers, looking for money to spend they do not presently have.

Our economy couldn’t do without banks.

But that doesn’t mean you’ve got to use them every time for every transaction. There are a few occasions where getting rid of the middle man makes sense.

 

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.

Craig Edwards / Flickr.com https://tinyurl.com/ybhqbua2

I remember the day he came to see me.

“She’s just so emotional,” he said, as if he was talking about a disease. “About everything really, not just money. How can I get her to see that?”

 

“See what?” I asked. “That’s she’s emotional?”

Buddy, she already knows that. My guess is that she needs to see that you value her emotions as the powerful force for good they can be. Then, with that assurance, she can also see that her emotions don’t need to run her life (or yours)…just enhance it.

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.”

Christos Tsoumplekas / Flickr.com https://tinyurl.com/yb3qazpm

Fear is a funny thing – it often tricks us into exchanging one perceived problem for a much larger one.

I don’t know too many folks who break into a cold sweat when they get into a car to drive a few hours. But let that same person board an airplane, and they are much more likely to experience a heightened sense of fear, even dread.

 

The National Safety Council estimates your lifetime odds of dying in a car accident at about 1 in 100. For air travel, the lifetime odds are about 1 in 200,000.

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