Showing posts with label Financial Planning. Show all posts
Showing posts with label Financial Planning. Show all posts

Thursday, March 28, 2019

Keeping Afloat: 4 Tips for Staying Financially Stable after an Accident

Any kind of accident can be life-changing. Even if you’re not severely injured, any injuries that you do sustain can result in not being able to work as you did before the accident. 

This means that you won’t be able to support yourself or your family in a financial manner, which can then lead to getting behind on monthly bills that include your house payment or utility payments. Fortunately, there are a few tips to keep in mind so that you do stay financially stable.

Make Phone Calls

Before you get behind on your finances, contact the people you owe money to so that you can make payment arrangements. Many companies will work with you to accept a lower payment each month or even extend the number of payments that you have as long as you are upfront about your situation. Stay in contact with all of these companies to show that you’re willing to make an effort in staying on top of your financial obligations.

Seek Help

Consult with an auto accident lawyer who can often help you file a suit to get money for your injuries and lost wages. Give the attorney all of the information that you have about the accident as well as medical records and details about your finances. Your attorney can do the work for you regarding talking to insurance companies and working to get the best settlement.

Better Budgeting

Take the time to go over your monthly budget. Since you might not have as much money to work with, you need to examine the things that you have to pay each month and the things that you can set aside until you’re financially stable once again. 

Any subscriptions that you have can often be pushed aside as well as any entertainment expenses that you can do without. Think of ways that you can save money each month, such as buying items when they are on sale or turning the lights off in the home unless someone is in the room.

Side Work

There are often several people who are seeking assistance doing things that they can’t do on their own. Talk to some of the people in your community about odd jobs that you can take on, such as raking leaves or cleaning a house. You can also advertise your services to try to make extra money.

With a little more organization and making a few phone calls, an accident doesn’t have to set you back. You’re going to have to stretch the money that you have, but if you detail your budget and seek assistance when needed, then this can be a time when you can stay on top of the essential payments that you need to make. Keep in mind that your family is there to offer assistance along with organizations and your attorney.

Monday, March 4, 2019

Budgeting for Seniors: 4 Common Post-Retirement Expenses

Calculating the costs of retirement isn't always as straightforward as it seems. Certainly you will want to determine your monthly medical costs, mortgage or rent costs, food budget, transportation costs, and more. But there are also several unexpected costs that can come up during retirement. 

Since most people live on a fixed income during this time of their lives, the unexpected costs can eat away at your nest egg. As a result, it is vital to be prepared for the expenses of life as a retiree. Here are four common post-retirement expenses.

Home Repairs

As a retiree, it's possible you may have lived in your home for your entire adult life. After a while, homes can suffer and deteriorate because of inclement weather, accidents, and general wear and tear. 

Other times, structural incidences can occur without your knowledge such as a pipe bursting, mold infestation, and termite damage and turn into a serious issue. Lawn care, snow removal, and basic home maintenance can also pile up. As you get older, it can become much more difficult to do chores if you have arthritis or persistent pain. 

If you find yourself unwilling or unable to keep up with these tasks, you may want to consider downsizing to a condo, smaller house, or a retirement community to make these maintenance tasks and issues nonexistent or at least less stressful.


Retirement is a good time to see the world since you have some extra free time on your hands. It's exciting to see the world in your golden years and make new memories with those you love. 

Be sure you know what you’re getting into before committing to anything. If you’d like to see many different places or have a preference for private tours, be sure your budget can accommodate that. Be strict with your vacation budgets and always be on the lookout for deals and steals.


As you get older, the amount of medical expenses often goes up as health issues worsen or surface. Many medical issues are associated with age and require expensive treatments and medications. 

For example, if you fall and injure yourself, recovery is more difficult and takes longer than it did when you were younger. Plus, your bones are much more fragile when you're older, so you have to be more careful. Additionally, you may need things like general skincare help, denture repair, and vision care.

Expenses for Adult Children

Just because your kids grow up and move out doesn’t mean you won’t feel inclined to help them out financially. An adult child may get married and need help with wedding expenses or maybe even need help with purchasing basic necessities for your grandchildren if they’re down on their luck. You will probably want to help as much as you can. Be sure to be smart about your spending and saving.

Post-retirement expenses are common and unique to each senior. Now that you are aware, you can plan your budget and savings for the future you want to have.

Wednesday, November 28, 2018

5 Tips For Preparing For Retirement

Retirement can be an exciting time in your life. You’ve completed your life’s work, and now it’s time to reap the rewards of your efforts. Thinking about retirement is not only for those of retirement age. Saving for retirement is best started early. Here are five tips to help prepare you for retirement, whatever stage in life you may be in. 

Start Investing Early

That’s right! Ideally, you should start saving for your retirement in your 20s. This gives you the maximum amount of time to invest into your retirement and form a solid foundation of discipline for managing your finances. Retirement is one of the great experiences in life. 

Solid planning early on can ensure that your retirement is enjoyable and that you’re able to financially sustain it. Make a plan, create a budget, and begin investing as soon as possible. Monitor your accounts, make sure you’re contributing as much as you possibly can to each one.

Find the Right Plan For You

Generally, there are seven types of retirement plans which you can choose from:

  • 401k or 403b offered by your employer
  • Solo 401k
  • Simple IRA
  • IRA
  • Roth IRA
  • Health Savings Account

The 401k or 403b plans are offered by many employers. You can save up to $18,000 per year, and if you switch employers the account will roll over to your new employer. 401k plans are usually offered by for-profit companies, while public servants have access to 403b plans which include contributions by the employer. 

A solo 401k is available to sole proprietors, and you can make contributions to this account as an employee of the business and as an employer.

A SEP IRA, or simplified employee pension, is used by small businesses. You can contribute up to 25% of your income or up to $53,000 to this type of account over the course of the fiscal year. If your business has employees, you will have to make contributions to their accounts if they meet certain requirements. 

A Simple IRA is a simple savings account in which you can deposit up to $5,500 per year. The money grows at a set interest rate completely tax free. Anyone can set up this type of retirement plan. You are able to contribute to a simple IRA and a 401k simultaneously.

A Roth IRA is an account in which you contribute after-tax dollars, which get no extra deduction. You can withdraw whatever you’ve deposited at any time without tax obligation, and there’s no mandatory withdrawal age.

A health savings account is an account offered by certain health insurance companies for medical expenses. The company will set aside money for you from your deductible payments in an HSA, allowing you access to healthcare when your medical expenses aren’t covered by your insurance plan.

Whatever plan you choose, make sure you are contributing the maximum amount each year, if possible. You can really never have too much money, as you’ll need to account for things such as medical emergencies or sudden expenses along with your everyday spending.

Pay off Your Mortgage

One of the biggest expenses of your life is bound to be your mortgage payment. Your house is more than just a place to take shelter however, it can actually provide you with equity that can be accessed later on. 

As with any loan, it’s important to pay off your mortgage as soon as you can, but especially before you retire. The last thing you want to worry about is making your mortgage payment when you’re not working anymore.

Pulling from your retirement savings for the mortgage can drain your accounts very quickly, possibly forcing you out of retirement to make the payments. Be sure to get your house paid for before retirement, and save yourself one more expense. 

If you need help managing or getting out of debt, there are many debt consolidation and settlement services online or in person. Find debt payoff tools on sites like Get Out of Debt, and start to take control of your debt before it’s time to retire.

Plan For Inflation

As much as we hate to admit it, prices rise on everything eventually. Fluctuations in the prices of goods and services, labor costs, and the value of the dollar all affect inflation. The amount you originally paid into your retirement fund may not be worth the same dollar amount it was forty years ago, or even ten or twenty years ago.

Inflation is always changing, and the value of the dollar fluctuating. When investing in your retirement it’s essential to remember this fact. You may have to invest a little extra into your accounts, to ensure that your money will last for the duration of your retirement. Try to cut down travel and leisure expenses in your retirement to account for inflation. Enjoy yourself, but be wary of your spending.

Focus On Your Health As A Pre-Retirement Condition

Your physical health should be a top priority at any point in your life. Health problems create complications and often are a drain on your wallet and savings accounts as well. Retirement is no different in this aspect. 

Medical bills can add up quickly, draining the money you’ve set aside for enjoying your retirement. Who wants to spend their retirement in a hospital bed or their entire IRA account on medical bills?

Exercise and monitoring your diet are great ways to stay fit and healthy. Be sure to make your annual check-ups and blood work appointments with your physician, and take all 
medications as needed.

Don’t Forget…

Whether you’re 27 or 47, retirement is important to think about. Put a plan in place that’s right for you and start investing in your retirement right away. The peace of mind you’ll feel when the time comes to retire, and your finances are in order cannot be understated. Remember to save the maximum amount each year, monitor your accounts, and pay off large debts before you retire.

Sunday, November 25, 2018

5 Ways to Make Your Savings Last Through Retirement

The typical life span in the U.S.A. increased considerably to about 80 in 2018.

If you retire at 65, a 30-year retirement is quite possible. Here are 5 ways to make your savings last.

1. Make 1.85% on your cost savings with a high-interest account.

If you have $250,000 in a high-interest account and keep it there over 20 years, you 'd earn $110,712 in interest.

The CIT Bank Money Market Account uses 1.85% interest and doesn't charge any service fees. You can open an account with a $100 minimum deposit.

2. Work with a financial consultant.

These professionals can supply expertise on how best place you assets in the best places, make wise financial investments and maximize your pension contributions. 

Financial advisors can also direct you to find out the very best order to withdraw from your accounts, so you do not lose out on important compound interest or prospective tax rewards.

3. Downsize your large home and think about a low-tax state.

Real estate is among the biggest expenses for retirees, even if the home mortgage is settled. Many individuals purchase big houses when raising children.

4. Avoid typical financial mistakes.

A financial advisor can direct you to optimize social security benefits and advise on when to begin accepting them in the most tax-efficient method. They're likewise extremely skilled in assisting individuals lessen capital gains taxes and preventing paying penalties on pension circulations.

5. The Best Way to Make Your Retirement Savings Last.

There are a number of highly qualified financial consultants in your town. Nevertheless, it can be daunting to select one.

This brand-new tool makes it simple to discover the ideal financial consultant for you. Now you can get matched with as much as 3 regional fiduciary advisors that have passed an extensive screening process.

Saturday, November 10, 2018

6 Steps to Successfully Managing Your Personal Finances

If you regularly feel frustrated by your financial situation, you are in good company. Across many income levels, people commonly feel as though they do not have enough money to accomplish their goals. At times, they may not even have enough cash on hand to cover their bills. Paying down debts can seem challenging, and it may feel as though you can never get ahead financially.

Regardless of your income level, it is reasonable to live within your means and to achieve financial goals. However, you must approach financial management strategically in order to do so. These are essential steps for successful financial management.

1. Create a Budget

Managing your money properly without a budget is an impossible feat for most people. A budget tells you how your income is allocated each month. It enables you to find areas to cut back on, and it may help you to determine if you can afford to buy an extra pair of shoes or head to the movie theater tonight.

Budgeting may sound simple enough, but many people struggle in this area. Ensure that your budget is based on accurate numbers rather than hopeful numbers. Use your spending history to ensure accuracy. In addition, reconcile actual income and expenses regularly so that you always know where you stand financially.

2. Trim Down Spending

One of the many benefits of living on a strict budget is the ability to identify areas to reduce spending in. Financial stress often occurs when your spending is very close to your income level or if it exceeds your income level. Most expenses can be trimmed with proper effort, so there may be plenty of wiggle room to work with. 

For example, you may be able to refinance your home mortgage or move to a more affordable rental home. You can make energy efficiency improvements around the house, shop for better rates on Internet and smartphone service, prepare more affordable meals at home and more. With effort, you may be able to reduce regular monthly spending by hundreds of dollars or more.

3. Plan for Short-Term and Long-Term Goals

Your budget gives you the ability to allocate regular contributions for savings and investments. By doing so, you may meet your short-term and long-term goals. For example, you can plan a short-term goal of taking a vacation or getting orthodontic braces for your child. A common long-term goal is to save for a comfortable retirement.

You will never reach these goals without saving money regularly. Therefore, you need to adjust your budget to include regular allocations of funds for each of your short-term and long-term goals.

4. Take Advantage of Modern Technology

Many years ago, personal financial management involved manually logging income and expenses through a handwritten ledger. You may have had to wait for a monthly bank statement or call a customer service phone number regularly to reconcile numbers and to ensure that you did not make a mistake.

Technology has thankfully improved. Banking apps can tell you immediately what your balances are, if transactions have posted and more. You can also use Excel to prepare a fixed budget as well as to keep a running budget for income and expenses. Excel is a part of the Office 365 suite and is available to everyone.

5. Save Regularly

Part of your budget should include a small allocation of funds to a savings account on a regular basis. Healthy personal finances include a well-funded emergency fund. This account may be used to pay for unexpected expenses, and it can help you to avoid relying on credit cards in a time of need.

Many people wonder how much money they need in their savings account. There is not a fixed answer that is right for everyone. Depending on your financial situation and life circumstances, you may feel more comfortable if this figure covered three months of your regular income, six months of regular expenses or another amount. 

For example, if you live in a large house and would need to pay an expensive deductible if you file an insurance claim, you may need more money in savings than a renter may need. You may also feel more comfortable having more money on hand if you are concerned about getting laid off soon, if you live very close to your means and would struggle if even a small unexpected event occurs and more.

6. Focus on Debt Reduction

High debt balances can erode financial security. They can also inflate monthly expenses and prevent you from saving and investing more. Reducing and ultimately eliminating debt is essential for smart financial management. The first step to take for effective debt reduction involves living within your means and avoiding taking on any new debts.

After you have accumulated a healthy sum of money in an emergency savings account, you may then contribute additional funds toward debt reduction. Concentrate any additional funds available to a single account, and focus on this account until the balance is paid in full. You can then move on to your next account. Debt elimination may take years in many cases, so avoid feeling discouraged by slow results.

Wrapping Up

Effective financial management can improve your life in countless ways. Each of these tips can have a profound effective on your personal financial health and security in different ways, and their cumulative results may be life-changing in some cases. Begin applying these steps to your financial management efforts today to benefit from their transformative effects.

Jasmine Williams covers the good and the bad of today's business and marketing. When she’s not being all serious and busy, she’s usually hunched over a book or dancing in the kitchen, trying hard to maintain rhythm, and delivering some fine cooking (her family says so). Contact Jasmine @JazzyWilliams88

Wednesday, September 19, 2018

4 Financial Prep Tips for Elderly Home Care Support Services

If you require in-home or even long-term care, the costs can start to be astronomical. You have to be financially prepared in order to afford these additional care support expenses. Here are some of the tips that you should use in order to prepare for elderly home care support services.

Look into Long-Term Care Insurance

There are insurance plans that will offer a long-term care assistance package. It may cost of a little extra each month, but if you do end up requiring additional assistance, your insurance would help to cover the costs. 

Some plans will offer to pay a portion of the costs that may be associated with living in an assisted living facility. You may even be able to stay in your own home for longer if in-home health aid costs were covered.

Consider Disability Options

In some instances, disability may be the only recourse that you have when it comes to paying for the costs of care. Some companies, like Simply Helping, know that most insurance plans offer an optional disability portion on them. 

You could use this to help cover some of the elder care support agencies that would be willing to assist you. This would allow you to stay in your own for a longer period of time. Typically, in-home care aids will come to your house and do the tasks in which you need assistance.

Make Modifications to Reduce Assistance Needs

Another option is to make your home as accessible as possible. This could include things like adding grab bars in the bathroom to provide you with additional support. 

You also might want to consider having a step-in shower so that you don’t have to worry about stepping up and into the tub. Wider doorways and adding ramps for easier access into and out of your home is another thing that you might want to take into account.

Reduce Household Expenditures

Cut back on your budget so that you can put more money away just in case you need additional funds as you age. If you’re already at that point, there may be places in which you can cut back on your monthly expenses. 

There are programs that will assist you with reducing your energy bills by working with you to make your home more energy efficient. Another place to cut back is with volunteer organizations that will bring meals to your door.

There are lots of options that you can consider if you need help paying for in-home care assistance. Use these tips to get you started on the process of financially preparing for the costs of needing elderly home care support services.

Monday, August 27, 2018

Prepare for Retirement with an HSA

Retirement planning isn't something that happens by chance. It requires planning, financial commitment, and a long-term perspective. No matter where you are in your retirement planning process, we have an additional way to save tax-free funds for retirement. Enter the HSA (health savings account).

HSA Overview

By all intents and purposes, HSAs were designed to help individual and families save pre-tax funds for qualified out-of-pocket medical expenses. It creates a clear path to save money and reduce the cost of health services and expenses.

The benefits of an HSA are that they provide triple tax-tax advantages: tax-deductible contributions, tax-free growth, and tax-free distributions (as long as they are used for qualified out-of-pocket medical expenses). This sounds great for health costs, but how does it connect to retirement?

After the age of 65, you can use your HSA funds for anything, just like A 401(k) or IRA. In fact, an HSA has no mandatory distributions in retirement. You get to decide when and if to use those pre-tax assets or sell investments in your HSA account. You can let your HSA funds grow into your 70s, 80s, and 90s.

Extra Tax-Free Retirement Savings

While the tax advantages of an HSA are clear, maybe the real value is an additional retirement savings account. Combining the savings power of a 401(k), IRA and HSA to create the only triple threat for retirement savings. That means more tax savings and more money for you in retirement.

Plan for Health Costs

Even with all of your detailed retirement planning, you might have missed the massive impact healthcare costs can have on your retirement savings nest-egg. According to a recent Fidelity Report, healthcare costs are expected to exceed $275,000 per couple in retirement. This is on top of Medicare coverage. 

HSAs can cover these expected health costs, so you can use your 401(k) or IRA for the stuff you want. Maybe some world travel?

Don't Wait to Open an HSA

HSA savings opportunities are based on HSA-eligibility. You must have an HSA-eligible health plan to contribute to an HSA. You can, however, use any accumulated HSA funds not matter your health plan. An HSA account is for life.

Your retirement planning might be in full swing, or you might be just getting started. No matter where you are in the retirement planning process, you can open an HSA to accelerate your retirement savings.

Friday, May 25, 2018

4 Financial Steps to Protect Yourself from Bankruptcy

Dealing with overwhelming debt can be a serious burden. Dealing with bankruptcy, however, can often be just as frustrating. Bankruptcy can do a number on your credit, after all. If you want to safeguard yourself from all of the stresses of bankruptcy, these financial tips can be highly effective and useful.

Work on a Budget

Assess the amount of money you use on a monthly basis. Set up a budget that can keep you accountable and focused. Tell yourself that you won’t go over your designated budget no matter what, too. 

If you want to take charge of your monthly spending patterns, maintaining a budget can make a strong foundation. You can handle your spending by using cash for anything you get. You can do so by throwing all of your credit cards away as well.

Say Goodbye to Frivolous Purchases

Viewing your purchases in a totally new light can help you steer clear of bankruptcy. Refrain from buying anything you absolutely do not need. If it’s not rent money or food, then there’s a strong chance that you can cut it out. 

Say goodbye to eating out at restaurants. Say goodbye to cigarettes, costly cable television packages, movie theater trips, spa pampering days and more as well. 

You can even save money by cancelling your fitness center membership. Jogging at the park can be just as effective.

Reach out to a Bankruptcy Lawyer

Attorneys who have bankruptcy expertise can supply you with comprehensive insight that can potentially help you keep filing at bay. 

If you want advice from a legal professional who knows all of the pitfalls that get people on track to bankruptcy, a lawyer consultation can be a superb idea. Book a consultation with a bankruptcy lawyer who possesses a blue-chip track record.

Put Your Property up for Sale

Putting property up for sale can often help people who want to stay far away from bankruptcy. If you have a vacation home that no one occupies, you can think about selling it. 

If you have a vehicle that you rarely use, you can consider putting it up for sale, too. Contemplate any and all items you may have with high value. Selling rare antiques may help you dodge bankruptcy filing.

The thought of bankruptcy shouldn’t make you lose your cool. If you’re calm, you may be able to think your way out of a scary debt situation. The answer is to think things through rationally.

Friday, May 4, 2018

How Business Owners Can Prepare for Retirement

As a successful entrepreneur, it is likely that you have spent a lot of your life working hard and putting the hours in. Instead of relying on someone else to pay your salary, you had the determination to take matters into your own hands. 

Therefore, the thought of walking away from a busy working life may seem like a huge and intimidating change. Don’t worry, it doesn’t have to be. If you are eager to enjoy retirement, without compromising the success of your business, you will need to read on.

Push forward with your expansion

The first step is to push forward with your plans for expansion. In order to leave your business in a good place, it is vital that you make it to the next level. If you are already thinking about retirement, you may not feel like taking any risks. 

However, it is far better that you are involved in these changes, as opposed to leaving it up to someone else. Even if you don’t yet have the available funds to move forward, you could resolve this issue by looking into Kabbage loans

This is a fantastic opportunity for you to get the money you need to secure a bright future for you and your business.

Get your finances in order

The next step is to get your company finances in order. If you don’t already keep a close eye on your funds, now is the time to start. You need to ensure everything is clear and correct in time for your retirement. 

While you might be able to understand the system you have in place, this means nothing if no one else can get their head around it. That is why you should embrace a professional approach. You could also think about hiring an accountant to do the hard work for you.

Train up your team members

Another important step is to train up your existing team members. Of course, you can do this in relation to your company finances, but you should also train them up to understand your approach to customer service, your marketing strategy, and your company ethos. 

It could also be a good idea to include select members of your staff in important business meetings. This will give them a better chance of holding onto contacts after you have gone. 

Furthermore, it will boost employee morale, as your team will be able to see just how much you care about their futures.

Gradually decrease your work hours

If you are intimidated by the prospect of leaving your business behind, you should consider gradually decreasing your work hours. This is a great way for you to enjoy the best of both worlds. 

It is also a brilliant way to ensure you aren’t making a huge mistake. After all, you only want to retire if you are truly ready for the change.

Hold onto your shares

Last but not least, you should do everything in your power to hold onto your shares. Even if you don’t keep them all, you should try to hold onto a substantial percentage. This will involve a little more work, but at least you will still have your foot in the door. 

If you have dedicated your whole life to building up your business, the last thing you want is for it to take off after you have gone. That is why you should hold back from completely severing your ties.

Saturday, April 21, 2018

Finding a Balance Between Spending, Investing and Saving

It can be difficult to decide what would be considered a ‘sensible’ use of money. Naturally, most people try to save whatever money they have left over after paying for all of the essentials each month. 

However, though saving money is important, it is not the only good use of each months paycheck. You need to find a balance between saving, spending and investing, so that you can get the best use out of your money. 

If you have never considered what benefits investing could have for you, or if you are wondering what the best way to save some of your money is, then here are a few tips for you.


Investing money is a great way to profit from your assets, with minimal work involved. To invest in the stock market, all you need is a small amount of start-up capital. 

From that starting point, you can then find a broker, and most of these are available online or even through apps nowadays. Of course, the stock market is not the only way that you can invest your money. 

You could instead invest in the real estate market, or in a local business or new startup company: where ever you feel your money is most likely to profit, with as minimal a level of risk as possible.


Of course, when you get your paycheck, you immediately factor in expenditure on the essentials: food, bills, items that the kids desperately need, etc. 

That is universally considered to be a sensible use of a person’s wages. 

However, sometimes it’s okay to put a little money aside to do something fun. After all, you work hard, and that deserves some reward! 

As long as you budget carefully, you might find that you can put fifty dollars or so aside each month to go to the cinema, treat the family to a fun trip out, such as to an Escape Room, or take everyone to a family dinner. 

Even if you don’t have enough to do that every month, you could always save some money over a longer period of time specifically for this purpose.


As well as saving up for family days out, it’s also important to keep saving for a number of other reasons. 

While saving won’t give you the same returns on interest as investing would, invested funds are a lot less accessible than saved funds, and you may need a store of money to turn to at one point or another. 

Perhaps the car breaks down, or the heating stops working: in these instances, you will need cash to hand in order to get the problem fixed quickly and easily. Therefore, make sure to keep some money aside which you know you will only spend in emergency situations, and that you are not going to invest. 

It is a good idea to keep this allocated money in a separate account, as that way you are less likely to spend it, either accidentally or on purpose.

Sunday, October 8, 2017

6 Tips to Help You Find the Right Financial Planner

Managing personal finances is sometimes difficult. People take the help of financial consultants when they couldn't manage it themselves. We call the consultants financial planners, and sometimes, financial advisors.

The two terms are not synonymous, though. Financial advisory is an umbrella term, which includes financial planning. A financial advisor helps people invest in the stock market, acts as a broker to settle a deal, delivers tips for a lawsuit, etc.

A financial planner, on the other hand, only helps individuals and organizations in taking care of their finances. 
You can see the basics of financial planning here.

Ask for certifications

According to Financial Industry Regulatory Authority (FINRA), anyone can call himself a financial planner. What it means is a complete charlatan might pretend to be a financial expert, and you may end up visiting him for financial advice.

Nevertheless, if someone wants to introduce himself as a financial advisor, then he’d have to obtain some certification. The National Association of Personal Financial Advisors or NAPFA keeps a registry of financial advisors. As far as its claim goes, there are over 100 certifications, any of which a financial advisor could obtain. 

Hence, if you ever visit a financial advisor, ask him to produce his credentials. He should be having certifications proving his sanguinity. If he couldn't produce them or give flimsy excuses, look for another one.

Fee structure

Select a planner, who asks for a flat rate fee. Planners, who prefer a commission based fee, may not work in an unbiased manner for their clients, as they are paid only when a product is sold. Because of this, they might prioritize the sale of the product, and not client’s interest.

Those, who ask for an hourly rate fee are like attorneys. They are extremely professional because the money they charge is not for the advice delivered, but for the time taken. Some lawyers accept an annual fee, which might be as high as 1-2% of your total assets.

Some financial planners limit their services to people, who are quite rich. More often than not, such planners offer investment related advice and secure a percentage in the return. 

They don’t accept clients, who don’t have enough money to invest. The minimum cap for qualification is $250000. If you are not opting for a large-scale investment, don’t go to them.

The planner’s credentials

In technical terms, it is called fiduciary. If a planner has fiduciary, that means he has pledged to serve the best interests of his client irrespective of situations. If a planner is not a fiduciary, then you have reason to doubt his authenticity. Investment professionals without fiduciary are presumed to lack the sustainability standard.

Simply put, they might offer you advice, which are attractive from a shallow angle, but not so in the long run. Ask the planner upfront whether he’s a fiduciary, don’t hesitate. 

Another thing to ask is whether he’s ever been put under an investigation carried out by any investment regulatory council. Such investigations are conducted only when a person is accused of serious charges.

Promotion through predictions

A financial planner working independently is always on the lookout for new clients. Someone visiting his office is a prospective lead, who might turn into a sale. To impress him, the planner might make predictions, which he couldn’t back with evidence.

The predictions made by such planners are mostly on the stock market. If your planner tells you to invest in a stock because he believes he’ll show a market-beating performance, leave his office, and start looking for another planner. 

That’s because the stock market is highly volatile, and nobody could correctly predict what’s going to happen.

Area of specialization

Not every planner can help you. Check the planner’s area of expertise. Some planners work in specific areas, such insurance or socially responsible investments. 

If you want solutions related to IRA conversion, and if a planner has reputation in areas such as stock market investment, then there’s no point going to him.

Sometimes, planners focus on clients on the basis of age. A planner, who is more than 60 years of age and has his own business might focus on people who are on the verge of retiring or business people themselves.

Technicalities aside

Financial planners often use technical jargons, the meaning of which is hard for a naive people to comprehend. If a planner uses any ambiguous term, ask him to elucidate its meaning. Make sure you know the meaning of every word, coming out of his mouth.

Follow the tips

And it’ll be incredibly easy for you to find the right financial planner, who’ll provide you with all the help you want.

What do you think of the tips shared here? Do you have any tip of your own? Share with us by posting a comment.

James Paul is the blogger at Basic Finance Care that covers best tips on budget management, frugal living, money saving, credit score improvement and more. He is also a contributing writer at Finance Guest Post - a community for personal finance blogger.

Saturday, September 9, 2017

Why You Need Professional Financial Planning

Preparing financial plans professionally offers several advantages, including help to ease the concerns that you may have regarding your financial future. Financial plans enable people to balance their daily needs and long-term goals while increasing the prospects of securing their retirement. They can introduce financial planning to individuals in ways to achieving a sustainable retirement income and planning a legacy that will last.

Comprehensive Financial Plan

An effective financial plan should deal with both the present and future. You begin with your current situation in terms of assets, debts and other obligations. A financial plan considers the spending habits that you currently have, creates a viable budget and maintains emergency funding.

Aspects such as what you want to save for aside from retirement, college education for your children, home renovations and your investments are also considered. 

There are issues that deal with estate planning for the purpose of ensuring assets are distributed in accordance with your wishes and life insurance for minimizing risk.

Debunking the Myths of Financial Planning

Various misconceptions regarding financial planning exist, including the belief that comprehensive financial plans are prohibitive because of high costs. Some people think financial plans consist of generic solutions that have been present.

The reality is that financial plans are worthwhile investments in financial security and they are tailor-made to fit each individual situation. 

Financial planning advice is provided by qualified and experienced financial advisors. A financial advisor can help you create and implement a plan that will be reviewed regularly to track your progress. Click here for physician financial planning.

What to Expect from a Financial Plan

Different financial plans have their unique features but the process of creating them consists of a number of distinct steps. It is important to develop a view of what your current financial situation is before you determine financial goals within specified time frames.

The plan that is created should have clear actions and steps. When you implement the plan, follow it up to ensure that you remain on the right track. As changes in your life occur, you can consider changing your investments as well.

Importance of Financial Planning

A financial plan goes beyond managing your money. It involves identifying the goals in your life, including the ones you may already be thinking about and those that may not be apparent. The process will help you broaden your horizons and sort out priorities. It also gives you an opportunity to explore the goals that you and your family have.

Comprehensive financial plans consider the interrelated aspects of your finances such as the money you earn, money you spend, retirement planning, investments, taxes, insurance and estate planning to ensure that everything is coordinated.


Good financial plans should be actionable to give you solid steps that you can take towards your goals and understanding how to adjust in case your goals change over time. There are many parts in a comprehensive plan. These include a net worth statement, cash flow analysis, retirement plan, education funding, insurance coverage, income tax profile and an estate plan.

Putting a financial plan together requires expertise and time. Experienced financial planners gather pertinent information, evaluate your financial situation, provide recommendations, develop the plan and get your finances on track.


Joel Walsh is a freelance writer and content developer. He has worked with different sites on a range of digital marketing projects. He describes himself as an artistic person and likes to draw and paint whenever he can. Visit this site for more information.

Wednesday, August 2, 2017

4 Ways Retirees Can Set Themselves Up for Financial Bliss

It can seem futile to consider how to plan for retirement especially for those who may have little to no savings currently. Knowing how much to save, where one is going to live and how many health care bills are going to roll in can be nearly impossible. 

However, even with all of these variables, soon-to-be retirees and the currently retired can take steps to ensure a financially secure and stress-free future.

Proper Savings

Plenty of savings is key to a comfortable retirement. Those who are still working should be saving a minimum of 10% of their gross earnings in a retirement account. 

However, spending strategies are best based on actual calculations of how much money will be needed in retirement and at what age saving will begin.

Wealth Management

Wealth management lets retirees hand over the reins of their financial planning to trained professionals. Some of these professionals, like those at Trajan Wealth, know how confusing financial planning can be. 

These people can help with retirement planning, estate planning, taxes, and other assorted accounting needs. Because they know the intricacies of investments as well as the health of the economy, they will have the best gauge of how money should be spent and saved during retirement.

Healthcare Coverage

Health care is often one of the biggest costs during retirement. In fact, according to CNN, health care costs the average retiree approximately $260,000. 

Therefore, seniors will want to evaluate their health care plans yearly even after they qualify for Medicare because Medicare typically does not cover everything. Moreover, they may want to consider long-term care insurance and health savings accounts.

Part-Time Jobs

Retirees who would like a little extra cash due to decreased savings prior to retirement, unexpected costs or the desire to make larger purchases during retirement may want to consider picking up part-time jobs. 

This is often something that the individual loves to do and may center on a former hobby, such as woodworking, music, gardening or crafts. These small jobs can often be enough to make travel possible or to fund expensive tastes.

While many aspects of retirement can be planned individually without any outside help, some aspects can definitely blossom with the help of a trained professional. Wealth management and investments are often best overseen by someone with years of experience who has a close eye on the current market and economic temperature. 

With proper investments and careful living, nearly anyone can retire comfortably and with at least a bit of spending money on the side for traveling and other dreams.

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