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You can never strip the emotions out of investing. Nor would you want to, emotions are what makes us human.

I always want to know how my clients are feeling, I don’t want a bunch of robots that are tough to read. BUT with that said, sometimes, you’d wish that client’s didn’t have such emotional overreactions.

Part of a planner’s job is to know your clients tolerance for risk. Part of a planners job is to reassure clients when things start to get rough, when the investing ocean gets a bit choppy.

Part of a planners job is to meet with the client periodically to go over the plan and reinforce the process and what we’re trying to accomplish. Part of a planner’s job is to know your client’s temperament and teach your clients how to manage their emotions better.

Continue Reading “Stripping the emotions out”

I’ve talked about how a financial plan brings clarity to a client’s current situation and allows you to plot a course for the future.

The planning experience gives the client more confidence and a new resolve that is hard to shake. But I never said the client’s new resolve “can never be shaken”.

As helpful as a financial plan can be, it doesn’t insulate the client from overreacting to the volatility the markets can create. This is especially true of growth oriented clients that were invested in stocks over the past 10 years.

Continue Reading “A client’s resolve”

I’ve had times in my life where I’ve just felt overwhelmed, not knowing where to start or how to deal with something out of my comfort zone.

I’ve gotten discouraged, frustrated and ended up pushing things off indefinitely, feeling somewhat paralyzed… you ever feel that way?

Well, I think that’s how many people feel when it comes to managing their personal finances.

Not unlike a lot of things in life you have to address the problem, educate yourself and find someone you trust to help you…

Continue Reading “The upside of good planning”

Currently, if your AGI is less than $100,000 annually you are eligible to convert your regular IRA to a Roth IRA.

Unfortunately, for a married couple with dual incomes, making 105K, you can’t convert to a Roth IRA because you make too much money. You’re barely crossing the eligibility threshold and it just doesn’t seem fair. That’s an especially hard pill to swallow.

As I’ve written before that’s all changing in 2010 when the 100K AGI restriction is lifted. Gone. Goodbye. In the meantime, there are still a couple things you can do now to get ready…

Continue Reading “The Secret to Funding a Roth IRA, regardless of your income!”

I’m still pumped up from writing about all those TAX FREE withdrawals but I’m also in a bit of pain right now. I went for a run at lunchtime today and sat by the water for a half hour and somehow caught a bad sunburn… my poor fair skin.

I’ve never been too good at judging the sun’s intensity, especially when there’s a bit of wind like there was this afternoon.

I know I should just stay out of the sun but from time to time I’m seduced by the siren song and promise of a bronzed complexion… or in my case a less pale complexion. I can’t help it, sometimes you don’t always want to be the whitest guy on the beach… haha. OK enough feeling sorry for myself, time to get focused here and get my mind off the burn…

The future

I want all the GenXer’s to really understand the benefits of investing for your future and why this needs to be addressed sooner than later. From my perspective, I see clients all the time and most of them are lucky enough to have secured their retirements’ and legacies.

Continue Reading “Lying in your beds”

As I mentioned in my last post… it would be hard for a financial planner to justify spending the time to sit down with a 35 year old with little assets and no plan.

Personally, I’d love to spend 1 hour with every 35 yr old I come across and talk to them about the importance of preparing for the future, opening a Roth IRA or about making the right investment choices in their company 401k (or 403B, etc.) plan; but there’s not enough time in the day.

(BTW, for the purposes of many of these posts I will use an arbitrary age or age range… I’m really speaking to all of you in your 30’s and 40’s and anyone else that may find this information relevant)

But a little light bulb went off in my head and I figured out a way to speak with one voice to a large audience…

So I got on the phone and called Giant Stadium and asked if there were any days still available to pack 70,000 people in there, to talk about the importance of Roth IRA’s and GenX financial planning issues. Unfortunately, they told me that U2 and Ozzfest had priority over my little function and I’d have to wait til 2020.

Haha… I hope you didn’t believe that but don’t tempt me in the future.

Continue Reading “Babysteps to filling a sizable void”

I thought originally of naming this blog “A Sizable Void.” (As you can tell from my posts so far… I spent quite a bit of time deliberating over many different names, almost 2 weeks actually:)

I almost went with that name because I thought it was a fitting description for the sizable gap between the amount of young people that need good financial planning advice and the amount that are actually receiving it.

There are tens of millions of Americans in their 30’s and 40’s that are working very hard for a living and I believe many aren’t even doing the basics when it comes to financially securing their futures. The basis for that statement is 100% anecdotal but I feel comfortable saying it… because I see what is happening with many of my own friends and people my own age (and older) that I come across.

Continue Reading “Why the sizable void?”

In my last post I made a few references to retirement planning. I’d like to briefly outline the process and talk about why a large percentage of Americans nearing retirement age are completely unprepared.

In preparation for retirement there are three phases people go through:

1. accumulation of assets
2. consolidation of assets and
3. distribution of those assets.

• Phase 1-The accumulation of assets generally occurs during one’s working years, when ‘you’re strong as bull’ between the ages of 30 and 55.
• Phase 2- The consolidation of assets logically occurs between age 55 and whenever the distribution of assets will occur. You’ve worked hard to accumulate your monies and as you get closer to retirement you want to protect your investments and switching to a more conservative approach is in order.
• Phase 3- The distribution of assets often coincides with full retirement where you no longer have the stream of income from your job. It’s time to start replacing that stream of income from your savings… supplemented by you collecting social security, a pension, etc.

Continue Reading “Here’s the rub”

I’ve been a licensed financial planner for nearly 13 years now. I’d like to give you an example of what a typical client of mine looks like, keeping in mind I only deal with retail customers:

A couple in their late 50’s to mid 70’s, with anywhere from no children up to 6 children… the BabyBoomer generation.

I know I’ve given you a very broad range here but it does encapsulate the demographic that makes up the overwhelming majority of my client base… and I’m willing to bet… the client base of most financial planners and advisors in this country.

Continue Reading “The Sweetspot”