financial advice

Jeffrey Beall / Flickr.com https://tinyurl.com/ybflthpd

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.

frankieleon / Flickr.com https://tinyurl.com/ycktk7nk

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
Michael Newman / Flickr.com https://tinyurl.com/yavegt8n

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.

Timothy K. Hamilton / Flickr.com https://tinyurl.com/y7blnhhn

Are you ready to retire?

How would you know?

Retirement is certainly about financial readiness. But it is also about so much more than that. I think it is important that you address some very important issues:

First, Are you emotionally ready to retire? Work is a great source of identity for most of us. Just read the death announcements. “Joe Blow, 66, a plumber, died.” That’s it – how old he was when he died, and what he did for a living while he lived.

Thomas Hawk / Flickr.com https://tinyurl.com/ybe4gzea

Last week, I reviewed the identify crisis suffered by insurance companies, who forgot they are primarily security providers and not investment managers.

History shows that no matter how you package it, using the cash values of a life insurance policy as an investment accumulation vehicle is rarely a good idea.

What escapes many, however, is the corresponding truth that investments are usually very poor insurance.

Pictures of Money / Flickr.com https://tinyurl.com/ydcara3c

Life insurance. We need it. We hate it. We don’t really understand it. But we know we don’t want to be sold it.

If I had a message for life insurance companies, it would be this:

When you forget who you are, it’s easy to lose your focus.

The two decades spanning the 1980s and 1990s represent one of the most lucrative periods in history for investors. It was a time of declining interest rates, expanded borrowing, baby boomer buying and a growth in productivity made possible by the dawn of the personal computer.

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.

Your Example is More Important Than Your Words

Feb 21, 2018
Michael Lehet / Flickr.com https://tinyurl.com/y93e89ok

Adult children. Sometimes it seems they just don’t get it, right?

So what can you do to help your adult children not repeat the same financial mistakes you made at their age?

…not a thing.

There is no way to guarantee your kids won’t repeat your mistakes. In fact, most of the time, that’s exactly what happens.

Here’s the problem - your words don’t carry much weight when your way of life contradicts those words.

Grant Tarrant / Flickr.com https://tinyurl.com/y8z8exnx

When counseling someone with a debt problem, I usually have to explain to them that the easy way is often the worst way.

Consider the individual with several maxed out credits cards. Of course they want to get rid of them. So they look at their 401K account and notice there’s enough money in there to pay off all their credit cards.

They tell themselves they can then save all that money they were paying to the credit card company and pay back the 401K.

If they ask my opinion, my answer is usually – “No.”

Paul Inkles / Flickr.com https://tinyurl.com/yb2g6myd

If you own a small business that involves family members, I’ve got a question for you:

Do you have a family-oriented business or a business-oriented family?

It doesn’t really matter what your answer is…

What if I just showed up one night for dinner at your house? Is it likely you would be there for dinner? And if I asked your kids the “family-oriented business or business-oriented family” question, what kind of answer do you think I’d get?

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