Why Wealth is Elusive

Information today in the information age is readily available.  The problem lies in the credibility and verifiable nature of the information you have at your fingertips and which is being presented to you without you having to go searching for it.  “It’s on the news, it must be true…”
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Guilt-Free Spending (part 2)

Part II

When you keep a budget, you should know where your money is, where it went, what it’s being used for, and how much you have reserved for your personal use.  The reason that many people don’t have money is that they don’t plan to have money.  Really, that’s not a flippant statement.  People who have money have made a plan to have money; meaning they’ve made a decision and a plan to not spend everything they makeContinue reading “Guilt-Free Spending (part 2)”

Guilt-Free Spending (part 1)

 

Part I

‘Why do I feel guilty spending my own money?’ is a question that many people struggle with.

The seeds of this article stem from that question I saw posted in an online forum that I really had the desire to address.  When I tried to access the answer page to submit an answer, the user had retracted their question, likely thinking that it wasn’t a valid concern.  I thought it was a very valid concern and I had thought, “I know exactly why she feels guilty” and wanted to help.  So, since I didn’t get to answer the girl’s question, I’ll address it here and hope that she and others who have that same very common concern find it someday. Continue reading “Guilt-Free Spending (part 1)”

Seasoned Professional, 10 Years to Retirement

Photo courtesy: nokhoog_buckanchon at freedigitalphotos.net

This engineering professional had accumulated a good-sized 401(k) with a large public firm and had a desire to remove as much of his accumulated retirement wealth from the risk of any Wall Street market exposure as possible.  The description on his account statement that he was “100% vested” lead him to believe that he was in complete control of his retirement funds.  The reality, however, was that the company for which he worked and the custodian that held his funds would not release a surprisingly large portion of his retirement wealth despite classifying it as 401(k) to IRA rollover. Continue reading “Seasoned Professional, 10 Years to Retirement”

Business Entrepreneur’s Education / Retirement Fund for Daughter

Photo courtesy: David Castillo Dominici on freedigitalphotos.net

A business entrepreneur with a young, pre-teen daughter wanted to set up an account usable for college funding.  While a 529 account might come to mind, once funds are placed into a 529 account the government stipulates, in return for tax-deferred status, the purposes to which both the capital and the gains can be applied.  I suggested another strategy for this application that had much farther-reaching and beneficial lifetime benefits for this father and daughter. Continue reading “Business Entrepreneur’s Education / Retirement Fund for Daughter”

Grandfather with 5 Grandchildren, Age 85

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A grandfather of five grandchildren and one great-grandchild inquired if I could assist him in setting up a wealth-transfer to his several grandchildren.  “I have money in my bank account that I’m not using, am not likely to use, and am earning next to no return on!”, he stated, opening the discussion. Continue reading “Grandfather with 5 Grandchildren, Age 85”

Young Single Professional Woman, age 26

The account with which we matched this young professional woman provided the ability to leverage a large sum of tax-free money available to her while allowing her to build wealth away from the market downturn exposure of Wall Street and at much better rates than those available from the banking industry.    Both capital and earnings of such an account could be made available to her without it being classified as “earned income” and would therefore not be taxable.This young woman took a job with a doctor’s office as receptionist while in high school and advanced her training while working to become a medical assistant.  Being single and having a good relationship with her family, she continued to live at home with her parents despite making good money over nearly 10 years.  Maintaining low living expenses freed up considerable funds while she was yet young to begin building wealth that could grow over a number of decades prior to retirement. Continue reading “Young Single Professional Woman, age 26”

The Game You Write Your Own Rules For…

Empowered to do what you’d like to do and to be who you’d like to be.  All too often these days people, organizations, and ‘authorities’ are making all too many decisions ‘for your own good’.  If you’d like to retain or recover more of the ability to make your decisions based on your own values, you might want to ‘empower yourself’.  And you don’t need anyone’s permission to do it. Continue reading “The Game You Write Your Own Rules For…”

Wealthy And Rich Are Not The Same! Part 2

Once you have your own wealth which you create by learning how to save, the choices for investment vehicles that both protect your capital and make it grow is the next dividing line between those who have wealth and those who create financial riches.  The larger you grow your wealth, the better financial ‘games’ you are permitted to play.

An accredited investor (individual), a person with a $200,000 annual income track record ($300K combined spousal income) or a million dollar net worth, is a ‘legal status’ in the investment world as defined by the Securities and Exchange Commission (SEC)[i] where certain investment vehicles, heretofore unavailable, become available.  It would actually be a breach of ethics and illegal in certain instances to offer such investment opportunities to individuals that do not meet the standards.  Why?  In many instances the investments offered at this level involve a degree of risk that a non-accredited individual could not financially reconcile, or perhaps survive, if the investment went poorly.  Simply put, the average person could not afford the loss, whereas the accredited investor could financially recover due to a significantly higher cash flow.  That is not the asset class I work with as a wealth advisor.  I’m simply pointing out that such things are in fact possible and available. Continue reading “Wealthy And Rich Are Not The Same! Part 2”

Oh, Not So, Mr. Ramsey!

I agree with many things that Dave Ramsey says, this is one of those rare, yet glaring exceptions.

On a Facebook Meme this morning, Dave Ramsey issued, “Debt is dumb.  Cash is king.”  Without further explanation, I must take an exception to this blanket statement.


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