Asset Allocation: What is it?
Asset allocation is a term you may hear mentioned when analyzing an investment portfolio. You’ve most likely seen it displayed as a pie chart on your statement or online investment account. So what exactly is it and why should you be concerned about it. Asset allocation is just a fancy term used to describe how the investments in your account are spread around. Sometimes you will hear it used to describe how diversified your account is. I like to say it helps you make sure all your eggs are not in one basket. The word asset in asset...
read moreSave more than the Joneses
We have all heard the phrase “Keeping up with the Joneses.” According to Wikipedia the phrase refers to the “…comparison to one’s neighbor as a benchmark for social caste or the accumulation of material goods.” This type of comparison is often used in a negative sense but it doesn’t have to be. In the course of my financial planning business I get the opportunity to meet with a lot of “Joneses.” I often use comparisons when speaking with clients because it helps them put things into...
read more3 Reasons to Hire a Financial Planner
We hire people to do a variety of tasks we either don’t want to do or don’t have the resources to do ourselves. When it comes to your personal finances, hiring a financial planner can provide you with instant expertise, help you develop a comprehensive plan and provide you with the motivation to get things taken care of. Consider the benefits of hiring someone versus doing it yourself when it comes in important areas in your life that you can’t make mistakes with.There comes a time when you need specific expertise to...
read moreDisability Insurance Primer
Disability insurance is a topic that doesn’t get enough coverage and one item that many people overlook. Disability insurance provides income in the event you suffer a disability that prevents you from working. It provides you money to pay for the mortgage or rent, food, health care and other necessities of life. Disabilities can occur because of an accident or sickness. You don’t hear much about disabling accidents or sicknesses in the US but they occur very frequently. In fact the risk of disability is greater than the risk that...
read moreShould I Use a 401k or an IRA?
Today’s post title is a little bit of a trick question. Many times I have people ask me if they should be using a 401k or an IRA to save for their retirement. The answer largely depends on how much you are looking to save each year and in many cases people use both. However there is still a lot of confusion on how you use both of these accounts in combination with each other. The reason I say this is a trick question is the more important question should be how much should you save for retirement each year. Once you know the answer to...
read moreThe One Legged Stool Retirement Plan
For years financial planners spoke of the three legged stool when it came to retirement planning. What they were referring to were the 3 sources of funds a client would typically receive in retirement. Many baby boomers and those from prior generations could expect to receive Social Security, a pension from a prior employer and money from their own retirement savings. Generation X and Y could potentially be looking at the one legged stool when it comes to their retirement.For most people pensions have all but disappeared from the retirement...
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