I’m often asked “How do I begin to get my financial affairs in order?”
That’s a great question. The task can be daunting. Do you begin with gathering documents, or do you start reviewing your investment portfolio, or do you start reading Money magazine and hope that you’ll be able to solve this seemingly complex problem?
I suggest to forget about all of that stuff…for now. Honestly, that stuff just isn’t as important as the more meaningful discussions you should have about your finances. Let me explain.
By Anthony J. Ogorek, Ed.D., CFP®
A major impediment to financial success, as well as to personal happiness, is loss aversion. In a nutshell, loss aversion is the strong preference we have to avoid losses, even at the expense of gains. Another way of putting it is that we feel the pain of a loss much more intensely than we do the joy of a gain.
There are many decisions that we make in life, often to our detriment, due to a subconscious aversion to risk. For example, some people will gravitate to public sector jobs because of the perception that they offer more security than a position in private industry. When examined more closely, the potential pain of a job loss, reduced pay and possible relocation may outweigh the benefits of employment in the private sector.
If your parent or loved one needs home health care, you may choose to hire a home health aide to assist with routine tasks, such as bathing, preparing meals, getting dressed, shopping, and housekeeping. However, once your loved one has agreed to receiving this care, a number of potential problems may arise. Anticipating the issues that seniors may have with new home health aides and other caregivers coming into their home can prevent problems before they arise.
First and foremost, seniors have to feel completely comfortable with the people who are entering into their home. Many seniors are settled into familiar mindsets and routines, and trying to change those ways of thinking can be difficult. But, there are steps you can take to help ease the process for all involved.
Are your baby boomer business owner clients prepared for retirement? Many are not. Find out how you can help get them significant retirement nest egg.
Nicholas Paleveda MBA J.D. LL.M, Adjunct Professor, Graduate Tax Program, Northeastern University, Boston.
USA Today recently reported the first baby boomers are turning 65 ….We all know that this huge group called the baby boomers are beginning to enter their retirement years at a time of historical market volatility. There’s no doubt that you have seen the harsh economic climate of the past two years erode your 401(k) s. Your 401(k) may have become, what is jokingly referred to as, a 101(k); and other retirement plans have been hit as well. If your client happens to be a small-business owner or professional, they may face even greater barriers to a secure retirement. The strategy that many small business owners have traditionally fallen back on is “my business is my retirement.” In today’s environment that strategy may not be as viable as it once was.
This is a guest post from Nick Paleveda, National Pension Partners
Equity out to fund your pension plan.
By: Nick Paleveda J.D. LL.M
Large companies have traditionally funded their pension plans by obtaining loans. General Motors borrowed 17.6 billion dollars in 2003 to fund their pension. A big question looms for many Professional owners. How to fund for their retirement prior to the business sale? The “equity out plan” may be the way to go. Certain business owner can obtain a loan to fund their pension. A defined Benefit Pension Plan allows much greater tax deductible contributions then a 401(k). In many cases, these contributions can be $150,000 to $200,000 or more depending on your age and salary.
I'm not exactly sure why this has made news on a few different sites but it has. Having a desk job is a contributing factor to weight gain. Is anyone surprised by this "finding"?
I think this bit of news is more of a wake up call than an actual bit of "guess what we discovered!" We as Americans need to realize that sitting for 8-10 hours a day isn't exactly good for us. Our job descriptions have vastly changed from "back in the day". Gone are the days where us office folk at least had SOME need for physical activity.
I was reading this article on Medscape and wanted to see if anyone has any opinion on the subject. As the internet continues to grow and evolve...more and more information is at our disposal. Are we at a point where we now expect TOO much of that information to reach us? Have we finally thrown privacy out the window? Obviously you risk losing your personal privacy every time you use a computer these days, but how much is too much anymore? Full article after the jump.
Picture this – leaving your home, your familiar surroundings, your friends, your clubs, your favorite restaurants and the doctors that you’ve finally located and call your own … to move into a brand new home, a neighborhood you are not accustomed to, at an age when change is more difficult than ever before.
The potential need for long term care (LTC) is one of the greatest threats to one’s happy retirement, not only from a monetary standpoint, but from an emotional one as well. Don’t be tricked into believing that you will not be affected by the need for LTC. Statistics indicate that 70% of individuals age 65 and older will at some time in their lives need LTC. Are you prepared? It’s not going to happen to you, you say. Maybe you and your spouse will not be part of these statistics. What about your elderly parents and in-laws, do you think they might be affected? Think about your adult children and their spouses and in-laws, might they be affected in this situation?
Welcome to the all new MD Preferred site! As you can tell, everything has been revamped. We’ve really worked hard to make this site as accessible as possible, for both the physician and the provider. Hit the read more to see what has changed.
By: Charlotte A. Dougherty, CFP® In conjunction with Lincoln Financial Advisors
Having a career that brings you personal satisfaction and financial success places many demands on your time and energy. You may find yourself putting off important tasks simply because there’s no strict deadline for completing them. But, no matter how busy you are, there’s one task you shouldn’t put off — planning for your financial future. Married or single, with or without dependents, you need a comprehensive financial plan.
Chances are, you’ve taken care of the basics. You’ve set goals, diversified your investments to mitigate risk and outpace inflation, and started saving for retirement. Now it’s time to consider additional strategies. A financial plan tailored to your needs and personal circumstances can help maximize your potential assets and preserve them for your loved ones.