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5 Steps to Building a Successful Savings Plan

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When it comes to meeting and exceeding your financial goals, the first step is always to come up with a reasonable and achievable budgeting and savings plan. The following steps can help you get a handle on your expenses and establish a clear plan toward building your savings and meeting your financial milestones.

1. Look into your company retirement plans: saving a small amount of money per month, directly from your paycheck is an easy way to get started. Even if you only elect to save a small percentage of your salary, many companies offer a match on a percentage that you choose to save.

A Client’s Journey: The Challenging Decision to Divorce Your House When You Divorce Your Spouse

The clients we encounter and develop relationships with come from all walks of life. Each person’s story is different. As is the case with all things, not everything is as it seems from a distance. This is an important thing to be cognizant of, especially as financial advisors and planners because it is our job to identify what we can do to help people make changes in their lives that will benefit them financially, but more importantly give them a feeling of confidence and self-empowerment.

We met Jeanette at a financial independence session that we held a few years back. She was in her mid-fifties and had been divorced for two years. Jeanette confided in us that her marriage ended due to infidelity on her husband’s part and that it had been difficult to let go of the pain and anger that those circumstances caused her.

Bulls and Bears, Trade and the Fed: Advice for the Head Scratchers

As an investment advisor and partner to our clients, it is our responsibility to put stock market and investment news in proper perspective. While the media is reporting daily on market fluctuations and speculating on what might happen in the short term, it is our duty to help guide you through the ‘noise’ and stay focused on what truly matters when it comes to your financial plan and your portfolio.

It is not completely outlandish to feel a sense of uneasiness about investing in our current market climate. Unprecedented growth and increased volatility leave us wondering when the next market “crash” will occur. Political and economic influences are on the forefront, as investors scratch their heads in concern with everything from trade wars and maintaining economic allies, to inflation.

Did You Get a Raise? Don’t Let Lifestyle Creep Eat It Up

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Your time has finally come. You spent your years since high school scraping by on ramen noodles and pulling all-nighters so that you could score that great job, right? Now you have paid your dues for a few years and the time has come for you to get a raise or a bonus. This is certainly a cause for celebration!

Rewarding your hard work with some new clothes, a night out on the town or possibly something bigger like a new car is okay, but don’t get too carried away. It is important, to maintain a sharp perspective on your cash flow and your goals when your income begins to increase.

Emotional Investing and Consequences of Behavioral Biases

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Distraction from the media, uncertainty or volatility in the markets, or pressure to buy and sell from friends, colleagues, financial “gurus” and other less than reliable sources for investment advice can directly challenge an investor’s ability to make consistent, rational and logical investment decisions. The barrage of information coupled with some inherent behavioral biases can make long term investing a challenge for most people.

Behavioral Finance has been an academic area of study since the early 2000s when Daniel Kahneman, a psychology professor at Princeton University published research that demonstrated “repeated patterns of irrationality, inconsistency, and incompetence in the ways human beings arrive at decisions and choices when faced with uncertainty.” Dr. Kahneman’s findings won him the Nobel Prize in economics in 2002 and the research strongly suggests that investors will often make decisions based on their emotions rather than on logic and historical data, even if it is right in front of them.

Empathic Listening and Building Trust

The Greek witch-goddess Circe gave her son Telegonus a poisoned spear to protect him on his journey to find his father Odysseus. When Telegonus finally found Odysseus he inadvertently killed his father with the magic weapon. This is similar to some of the consequences we may inadvertently incur when we try to administer well-meaning advice to someone who is coming to us for help or guidance.

I recently had this experience with a new client who came to us to discuss the challenges she faced with her finances. She was recently widowed and under an enormous amount of stress concerning her investments because her husband had handled all the family’s money. When she entered the conference room she appeared very nervous. We tried to set her at ease by playing soft music as we usually do when meeting with all our clients. We curiously watched her open her carton of statements and documents. Many of her documents were out of order and looked as if they had been filed haphazardly inside a wastepaper basket! Even before she spoke, her eyes reflected a plethora of misfit investment information, peppered with the sad assurances that her husband had instilled in her before he had suddenly passed away.

Fast Times: Evaluate Your Commitments as Often as Your iOS

All we have to do to create the future is to change the nature of our conversations, to go from blame to ownership, and from bargaining to commitment, and from problem-solving to possibility.

Peter Block, American Author

Remember the days when you were young and saved your money to buy something you really wanted? When you brought it home it was yours. You could repair it if it broke. The inner parts were relatively easy to understand. After you used it for a while it did not become obsolete; you could sell it to one of your friends, so he could enjoy it too.

Times have changed. Our cell phones now contain software that is not ours and we sign a licensing agreement to use it. We may own the shell of the phone, but we rent the technology. We don’t even wait for the phone to become obsolete. Many consumers crave the technology so much, they line up in droves for the next new upgrade.

Financial Education is an Investment in Itself

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Parents are a child’s first and most important teachers. Natural learning opportunities arise daily to teach children lessons in health, safety, manners and morals: eat your vegetables, don’t touch the hot stove, always say “please” and “thank you”, and treat others the way you wish to be treated. All are essential truisms for leading a productive and satisfying life. Just as learning and living these lessons will help forge a path to a successful and happy existence, instilling solid financial values early and often can set children on a healthy financial path and help avoid common but painful financial pitfalls later on in adulthood.

Teaching children the importance of prudent money management is a lesson that is sometimes neglected by even the most caring and astute parents. Among the many crucial lessons children learn at home from their parents, basic financial literacy is often overlooked. Sometimes parents skip this lesson because they themselves struggle with understanding core financial concepts. If parents, as natural family teachers, fail to take the lead by modeling unhealthy attitudes towards money and its true value, children may grow up gaining independence in every aspect of life except when it comes to their money. Achieving a certain level of financial independence is essential to being successful as an adult. Parents can attain much peace of mind by educating themselves on basic financial literacy and passing that knowledge down to their impressionable children.

Finding Confidence in Retirement Planning

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In a perfect world, planning for retirement should be exciting (I can’t wait to retire early!), easy (automatic savings/contributions) and not stressful (I have so much money to save!)

In reality, thinking about retirement can make people feel very anxious. How much should I be saving? Will I have enough to live? Will I run out of money? Planning for the future can be very overwhelming and it can be difficult to picture how saving into an investment portfolio can actually provide an income for you when you are no longer working.

Many times, people don’t realize the importance of starting to save early on. The earlier you begin to save money for retirement, the more successful you will be. You will have saved more dollars, and you are giving it a longer time to grow and earn interest.

As we get older, the idea of no longer earning an income and receiving a paycheck is hard to comprehend. We’ve seen a lot of our clients fearful of making a mistake as they near retirement and they become very fearful of market declines. As you approach retirement, it is so important to discuss any concerns that arise with your trusted advisor.

As financial planners, we hope our clients can achieve a peaceful transition into retirement. Here are a few suggestions:

How to Disaster Plan and Build a Financial Emergency Kit

As Hurricane Season ramps up and with Sandy only a few years down in the history books, it is important to consider what plans you and your family have in place in the event of a natural disaster. Disasters rarely give us a heads up. The best we can do in the face of disaster is have a plan and build a Financial Emergency Kit. Having these essential items safe, secure, and at the ready, in case the unthinkable occurs will save a lot of headache and heartache. There are various websites, including Homeland Security’s government webpage and the Red Cross, which can help. In this article we will go over some of the basic essentials everyone should have stored safely in case of emergency, specifically relating to your finances.

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Mirror Mirror, Off The Wall!

“Life is like a mirror, we get the best results when we smile!”

Looking directly into a mirror gives you one perspective of yourself. However, if you turn the mirror at a right angle to another you will discover several images of yourself. Some may appear distorted and backward, like in an amusement park fun house. Nevertheless, each one allows you to see yourself differently. Similarly, the choices available to us when making decisions with our money can appear to be hard to figure out as well. Like the right-angle mirror, we are forced to view our finances differently even though they are the same.

Whether you are a budding Millennial or an aging baby-boomer our attitude and behavior regarding money and the way we consume it is crucial.

Saving for Retirement as a High-Income Earner

If you are a high-income earning professional, you may need to take additional steps to ensure you are saving enough for retirement. Many investors find that maximizing their company retirement plans may not be enough. You want to make sure you are saving enough in your income-earning years to maintain a similar lifestyle in retirement. Here are some tips to get you there:

Use your HSA as a savings vehicle

Health Savings Accounts are what we call triple tax free. This means that contributions made into HSAs are not just tax deductible, but the earnings are tax-deferred and the withdrawals are tax-free as long as they are used for qualified medical expenses the scope of which is very broad.

To Bit or Not to Bit: What Should Investors Make of Bitcoin Mania?

Bitcoin and other cryptocurrencies are receiving intense media coverage, prompting many investors to wonder whether these new types of electronic money deserve a place in their portfolios.

Cryptocurrencies such as bitcoin emerged only in the past decade. Unlike traditional money, no paper notes or metal coins are involved. No central bank issues the currency, and no regulator or nation-state stands behind it.

Visualizing Goals for a Confident Financial Future

 “There's no scarcity of opportunity to make a living at what you love. There is only a scarcity of resolve to make it happen.”

—Wayne Dyer, author and new-age thinker


 This past year we (Walter and I) wrote a book, “The Millionaire Within”. We are proud to announce that it has been published and that it is available for sale on Amazon! We chose to write it in order to share our experiences working with clients to help them change their perceptions about money. People often seek financial consultation to gain insight into “new” investing strategies or promising stock trends for the coming year. What we know is that trying to predict an unpredictable market is as futile as spending your last dollar in the hopes that more will come out of thin air.

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What a Long Strange Trip it's Been...

Bulls and Bears

Many experts consider investing in the stock market the best way to grow wealth, especially if you are young and have a long investment time horizon. However, it can be difficult to avoid much of the daily market “noise,” and you may start to question your financial decisions. Such seemingly extreme volatility can have even the most steadfast investor feeling a little unsure on occasion. The deluge of unprecedented news and the responding economy may leave investors questioning how best to proceed. Better to hunker down and ride it out? Sell? Invest in more conservative products?

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