financial advice

401(K) 2012 / FLICKR.COM https://bit.ly/2VKkIoI

Last week I talked about the benefits and limitations of taking your Social Security benefits early…before the so-called “normal retirement age (NRA).”

So now, let’s see what happens if you take your Social Security benefits “on time” or on a delayed basis.

401(K) 2012 / FLICKR.COM https://bit.ly/2VKkIoI

When should you begin taking your Social Security benefits?

Should you opt to begin your benefits as early as possible, usually age 62? Or should you wait until your normal retirement age (NRA), which may vary from age 66 to 67 these days. Or you may want to wait until the last possible minute, age 70.  

The first thing to do … is get your facts straight.

401(K) 2012 / FLICKR.COM https://bit.ly/2EP7y37

Have you gotten to the age where your investment company is sending you the required minimum distribution amount from your IRA each year?

 

If you’re like a lot of folks I know, you don’t really need the money, so it’s just sitting in the bank, earning nothing.

If that’s you, you may be wondering if you have other options.

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.

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