Here are the Ten Commandments for achieving strong financial health.
The Ten Commandments:
- KNOW HOW IS YOUR ADVISOR IS PAID. It really does matter because the quality and kind of advice you receive is a result of how your advisor is paid. The best model for receiving investment and financial planning advice is the Fee-Only Advisor model because this kind of advisor has a Fiduciary obligation to put your needs first. Other types of advisors and brokers do not necessarily need to put your needs before their own.
- IT’S NEVER TOO LATE TO PLAN. It’s never too late to benefit
Let’s say you’re the lucky owner of a highly appreciated investment (stock, mutual fund) you’ve held for at least a year. What’s the best way to sell it? Or should you donate it? Here are several choices facing an early investor in Apple shares that I’ll call “Meg.”
Apple shares are valued at 246 per share. If Meg purchased the shares at 10, her gain is 236 dollars per share. If she owns 1,000 shares, that’s $236,000 of gains on $246,000 of proceeds. Her options include: 1) selling the shares outright and paying long-term capital gains, 2) gifting the shares …Read More
By Eve Kaplan, Certified Financial Planner™
The investment world is a confusing, opinionated and noisy place. Here are 2 classic investment mistakes that are very common: 1) trying to time markets and 2) stock-picking your way to investment success.
Mistake One: Thinking You Can Time Markets (And Do Better Than the Average Investor)
Markets are notoriously changeable, just like the weather. There are hundreds of types of investments (asset classes) that move somewhat independently of other asset classes. These movements cannot necessarily be predicted. Sometimes there is no logical trigger that makes (example) US mid-cap stocks appreciate more than many …Read More
By Eve Kaplan, CFP®
Unless you have a terminal illness you probably do NOT know when you will die. Accordingly, these tips are geared toward all individuals who hold investments, insurance, pensions and/or real estate and who want to pass these to a surviving spouse or other family members. Some of these steps may seem patently obvious and simple, but in my experience as a financial advisor, I can tell you that even smart, well-prepared people commit very dumb estate planning mistakes.
Estate Docs 101:
1. Prepare your next of kin or surviving spouse with updated estate documents – …Read More