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Investments

Dec 26
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10 Financial Resolutions for the New Year

By Investments, Money Management No Comments

The New Year is a great time to overhaul your financial life for the better, and one excellent place to start is by making good resolutions that can help get you closer to your money goals.

Joshua Kennon, Investing or Beginners Expert, shares ten financial resolutions for the new year that we should consider adding to our agenda.

Financial Resolution 1: Know What You Want

Have a clear, concise financial goal for the year. It isn’t good enough to say, “I want to have my credit card paid down and more money in the bank”. Instead, you should say something like, “I have the balance on my credit card paid down to $0, over $5,000 in my savings account, and a fully funded IRA.”

Financial Resolution 2: Prioritize Your Debts

Not all debt is equal. Make a list of your liabilities and organize them by the annual interest rate. Those with the highest rates (most likely your credit card debt) should be paid off immediately. It does no good to invest money while you are paying 19%+ each year. In a lot of cases, the wisest course of action is to sell any certificate of deposits, savings bonds or other cash holdings and use them to pay the balance. Why? If you owe $10,000 on your credit card and pay 19% interest annually ($1,900 per year), while at the same time, own a $10,000 certificate of deposit at a bank, paying you 4% interest ($400 a year), you would actually save yourself $1,500 a year by paying the debt!

Financial Resolution 3: Open an IRA

If you haven’t done so already, open an individual retirement account (or IRA for short). Your financial planner or accountant should be able to tell you whether a Traditional or Roth IRA is better for you. Both offer important tax advantages that can add up to a significant amount money by retirement.

Financial Resolution 4: Enroll in an Automatic Savings Plan

Automatic savings plans are now offered for everything from brokerage accounts to government bonds. Simply call your broker and tell them you want a certain amount of money withdrawn from your checking or savings account each month, on a certain date, and deposited into your investment account. This way, you are forced to save because the cash is drawn directly from your bank before you can get your hands on it. Investors can often sign up for ASP’s through a company’s direct stock purchase plan. In these instances, the money is withdrawn and used to purchase additional shares of stock in the particular company. The United States government offers a similar service to those interested in investing in savings bonds.

Financial Resolution 5: Close Unnecessary Accounts

Banks and financial institutions charge fees for everything under the sun. Is it really necessary to have several credit or checking accounts? Although there are exceptions, in the vast majority of cases the answer is a firm no! To put things into perspective: imagine your bank charges you $8 each month for your checking account. In thirty years, that $8 will have added up to more than … (continue reading 10 Financial Resolutions for the New Year by Joshua Kennon)

Mar 04
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Women Need To Put Away More Money For Retirement Than Men

By Investments, Money Management, Retirement, Saving, Women's Wealth No Comments

The U.S. is facing a massive retirement crisis, with a whopping $13 trillion retirement savings shortfall.

The retirement savings crisis is even more severe for women since they face a gender-pay gap and will likely live longer.

That means women need to be saving more than men. The goal should be 8 to 10-times an annual salary.

“[That’s] what you need if you want to spend 90% of your pre-retirement levels annually. It’s a bit more than you hear at the majority of investment firms, but we want you to retire like a boss — more travel, more fun,” says Sallie Krawcheck, the CEO of women-led digital investing platform Ellevest on a new episode of MAKERS Money. “And, since we women live longer on average it’s better to have a bigger cushion. Yes, in this case, bigger is better.”

On the fourth episode of MAKERS Money, Krawcheck presents steps that women can take to increase their likelihood of having more money in retirement, including investing in a diversified portfolio and asking for a salary increase.

On the show, she’s joined by Tanya Van Court, the CEO of Goalsetter, an online saving and gifting platform to help kids save. According to Van Court, women need to put themselves in a position for a raise.

“[Women] need to have those conversations about how much they want to make, but not only how much they want to make, but what the clear expectations are that will get them to that point to be deemed successful,” says Van Court.

“I completely agree,” says Krawcheck.

Krawcheck spent nearly 30 years on Wall Street, holding high-level positions including CEO of sell-side research firm Sanford Bernstein, CEO of Smith Barney, CFO of Citigroup, and president of global wealth and investment management at Bank of America Merrill Lynch.

Last month, feminist media brand MAKERS and Yahoo Finance launched “MAKERS Money,” a weekly show hosted by Krawcheck that features advice for women from top female financial experts.

 

Originally appeared on Yahoo Finance!

Feb 16
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13 Easy Ways to Improve Your Finances On Your Lunch Break

By Insurance, Investments, Money Management, Saving No Comments

If you work full time, you know how hard it is to keep up with all the little things outside of your job. But have you tried putting your lunch break to good use? Instead of spending the hour chatting at the watercooler while you munch on a snack from the vending machine, grab something healthy and use the rest of the time to tackle some important odds and ends – like your finances. Below, we share 13 tasks that you can accomplish over lunch that will help you build a better financial future.

1. Pay your budget a visit

Check your budget from time to time so that you can visualize the progress you’re making toward paying down debt or saving. Make it a habit.

“This will help you stay on track and help you feel motivated to keep working hard toward reaching your goal,” said consumer finance expert Andrea Woroch.

She suggests using an app like Mint, which links all of your financial accounts in one place and provides a real-time snapshot of your spending and saving habits.

2. Write down your goals

Rather than just thinking about your financial goals, write them down in a diary or on a vision board. “You’re more likely to stick to your budget if you write down your plans and are specific,” said Marshay Clarke, a certified financial planner at Betterment, a financial advisory site. Make sure to revisit your goals periodically to stay on track.

3. Open a savings account

You’re more likely to save money if you have somewhere to put it. During your lunch break, you can easily open a savings account at your current bank or with an online bank that offers a high-yield savings account. While you’re at it, set up a recurring monthly transfer from your checking account for automatic savings.

4. Save with ease

There are apps that help you save and take minutes to set up. Dr. Elizabeth Dunn, co-author of the book “Happy Money“, is an adviser for the Joy app and their free FDIC-insured savings account. The app allows users to automatically save extra cash without having to do much extra work. “This is important because just adopting the goal to save money doesn’t seem to change people’s financial behavior,” Dunn said. “But getting a little nudge to save a manageable amount of money can make a difference.”

Other apps that allow you to save incrementally are Digit and Qapital. Digit will recommend how much you should save, based on your spending habits and financial obligations, whereas with Qapital, you create your own saving rules.

5. Earn more

If cash is really tight, or you want to save for a large purchase, maybe it’s time to pick up a side hustle with Fiverr or TaskRabbit. Plenty of people have been known to use their lunch hours to pick up riders as Uber or Lyft drivers, too. Put those extra funds toward a future goal, like a vacation or down payment for a new home.

6. Get familiar with your insurance

If something unforeseen should happen in your home, like a fire or a robbery, do you know what you’re covered for? If not, take a few minutes to find out so that you’re not caught off guard should something occur. No insurance? Research policies online over lunch.

7. Sign up for credit monitoring

Knowing your credit score is important because it can positively or negatively affect your ability to secure a loan, qualify for certain credit cards and, in some cases, get a job. A free service like Credit Karma or Credit Sesame will monitor your score and send you emails if something is amiss.

8. Think about the future

Use an online retirement calculator to determine if you are saving enough for your long-term goals. If you’re falling short, consider increasing your 401(k) elections from your paycheck, or set up an automatic deposit from your bank account to your investment account.

Also, check your retirement account online and make sure your beneficiaries are in order. It only takes a minute to add a beneficiary and you’ll have peace of mind that your funds will go to the right person(s) if you were to pass away.

9. Review your paid subscriptions

Review those subscriptions you’re being billed for each month. You might be paying for things that you rarely, or never use. If those New Yorker magazines are piling up, or you can’t remember the last time you listened to Amazon Music, it might be time to cancel.

10. Negotiate with service providers

Call your phone or internet provider to see what promotions they are offering. Or, contact your credit-card provider about a possible APR reduction. If you have good credit, you might be in luck.

11. Review your credit card statements

Do you blindly pay your credit-card bills each month? Even if you use autopay, you should take a few minutes each month to scan your statements to ensure that all of the transactions belong to you and are accurate.

12. Get fit

Take a walk or attend an exercise class. Health care is expensive, and the better you take care of yourself, the better your chances of avoiding costly medical bills. Some life insurance providers offer reduced rates to customers who show a certain level of fitness activity on their fitness trackers. Fitness can pay!

13. Sharpen your financial skills

Skip the digital Solitaire or Candy Crush and read a financial book, like The Wisdom of Finance by Mihir Desai. Doug Kinsey, certified financial planner and Partner at Artifex Financial Group, enjoyed the book so much that he took Desai’s Harvard HBX Course, Leading with Finance, which you can complete online.

“Another helpful HBX course is Economics for Managers,” said Kinsey. “Either one of those courses will help almost everyone by providing greater insight into how the world works from an economic and financial perspective.”

Clarke recommends the financial books Rich Dad Poor Dad, by Robert T. Kiyosaki, and A Random Walk Down Wall Street by Burton G. Malkiel. So take a look at those, too.

Also check out the financial book Financial Fornication by Tarra Jackson.

MagnifyMoney is a price comparison and financial education website, founded by former bankers who use their knowledge of how the system works to help you save money.

Originally appeared on WWLTV.com. 

Oct 18
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How to Find a Good Financial Advisor

By Investments, Money Management, Retirement One Comment

Let’s be honest, your money is the product of your sweat and tears …  and sometimes your blood. I think it’s safe to say that you want to find a good financial in whom you have complete and total trust. But how do you do that? The process is easy, it starts with the internet and ends with an interview – yes you can do that.

Here are four ways to find a good financial advisor:

Search for financial advisors in your area

A Google search is the quickest and easiest way to find financial advisors in your city. If you want to get super specific you can even add in an area of expertise that you’re looking for such as Financial Advisor, Brooklyn, Millennials. This is the base of your search. From here you can create a short list based on their location, description and the information you find about them online.

Google will return results based on (among other things) the relevance to your search and the popularity of the website (also known as the authority a.k.a. legitimacy) as well as how up to date they are. Regularly updated websites will usually rank higher in Google. I would choose five financial advisors to start. Also, the top results with the word AD to the left, pay to be seen at the top of your search results.

Check them out on social media

From the five financial advisors you chose, narrow it down to a short list of three advisors based on their online presence. Have a look at their website and see if you get a good vibe. Take a look at their biography and see if their area of expertise aligns with your goals (such as buying a new home or saving for retirement) and ask yourself if their product offering meets your needs. Look up the financial advisors on LinkedIn and see if you like their overall presence and if the content they’re sharing is relevant to the type of services you need.

Ask about their credentials and education

Now it’s time to initiate personal contact. Send an email or give the advisors a call. This will give you an idea of what their level of customer service is like. If they get back to you within 48 hours, it’s a good sign. If your call or email goes unanswered for several days, it’s a big red flag.

Once you are in contact with the three advisors on your short list, have a phone conversation with them and ask about their designations, credentials and education. Ask if they operate with a firm, where they are licensed and which designations they have (i.e. securities dealer, life insurance and financial planner). I don’t know about you, but I wouldn’t trust just anyone with my hard-earned money. I would like to know (if I wasn’t a financial planner myself) that my money is being managed by an experienced professional.

Meet them in person – at their office

Talking with a person can give you a good idea of whether your personalities match. It also will give you an idea of how the general working relationship will be. Narrow your short list down to two advisors and book appointments to meet them in person. It’s preferable to meet them at their office to ensure the operation is legit. Be open with them and ask questions about service expectations and fees. After meeting with them, take all the information home and follow up with them in a few days. It’s never a good idea to make an on-the-spot decision when it comes to your money.

And voila, you just found yourself a good financial advisor.

Sep 22
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The Secret To Being A Great Saver

By Investments, Money Management, Saving No Comments

“What’s the difference between ‘paying yourself first’ and saving money?” — Ayesha

Paying yourself first is a way to save money. In fact, it’s the best way to save money.

The trick is that rather than setting extra money aside, you’re saving for yourself and your future goals right away, before spending the rest on non-essentials. Treat the savings goal like an important bill — just like your rent or mortgage — that must be paid every month. The only difference is it’s a bill you pay to yourself.

“Anybody can save the remnants of a paycheck after they’ve spent most of it,” says George Galat, a California-based financial adviser.

“[Paying yourself first] is purposeful, proactive and implies a level of progression toward a collection of goals,” says Galat.

Here are a few ways to pay yourself first — without feeling like you’re making a big sacrifice.




Set up automatic payments

A common obstacle to saving your money is that the amount you planned to save tends to dwindle toward the end of the pay period.

“The reality is that some competing interest always comes up to reduce if not eliminate well-intended savings,” says Howard Pressman, a Virginia-based financial adviser.

Related: What In The Wealth is an Annuity?

That’s why one of the principles of paying yourself first is to set up automatic payments into accounts set aside for retirement, debt repayment, or emergency savings. That way you don’t have to consciously think about choosing to save, and won’t be tempted to spend it first.

“If one has automatic savings taking place into the 401(k), Roth IRA or a sweep from checking to savings, it’s going to get done,” Pressman says.

Max out your 401(k) (if you can)

One of the first areas of your financial life you should pay attention to is your retirement savings.

But most people still aren’t saving enough. One in four workers have less than $1,000 saved for retirement.

Setting aside 10% or 15% of your income may seem daunting, but is not as impossible as it might seem.

When Jon Haagen, a New York financial adviser, asks people if they can save 15%, they usually disagree. However, when he rephrases to ask whether they might be able to live on 85% of their income, most say that they can.

“The second way of asking seems less daunting,” he says.

Change your mindset

Once you decide to pay yourself first, you may feel like you have a lot less money at your disposal than you once did.

The key is to change the way you think about your income, and accept that you need to — and can — live off less.

“It’s really about fooling your brain into thinking ‘this is how much I make and this is what I can spend,’ said Jeff Maas, a California-based financial adviser.

“Eventually you will adapt your spending habits to match your perceived income and it won’t feel like a chore or a sacrifice to save.”

 

Originally appeared on Money.CNN.com by Laura Sanicola @laurasanicola

Sep 19
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Bitcoin Wallets And How to Use Them

By Investments, Money Management No Comments

Are you new to Bitcoin and you recently purchased some? If so, I know you’re excited and happy about the bright future that Bitcoin has to offer. But like your real money, you have to be mindful of where you put it and how you spend it. Here are the different Bitcoin wallet types, how to safely store your new digital wealth and where to spend it.

There are two types of Bitcoin wallets, Hot and Cold, and I’ll give you a quick 50,000 foot overview of them.

Hot Wallets

Hot wallets are generally defined as wallets that exist on exchanges and are used primarily over the Internet. If you buy your Bitcoin from places like Coinbase or Bitstamp and leave them there, your wallet is a “web-based wallet.” Hot wallets offer users easy use that cold wallets do not. They are usually used in conjunction with apps that installed on your smart phone or on your PC. Think of your hot wallet the way you do a checking account at a bank. Just like you have to make certain that your checks and your ATM cards are secure at all times because people can steal them and make unauthorized purchases, Hot Wallets are exactly the same.




The private keys to your Bitcoin account (which are similar to your Account and Routing numbers) are not controlled by you. They reside with the exchange that houses your wallet. If you lose your smart phone or your PC or the exchange gets hacked, you can lose all of your investment. As a good rule of thumb, you should never keep large amounts of Bitcoin in a Hot Wallet.

Best practice is to never keep more than $100 USD in a hot wallet, unless I know you’ll be making a purchase more than that.

Cold Wallets

The vast majority of seasoned Bitcoin holders and traders keep their investments in a Cold Wallet. Cold wallets do not exists on the Internet and are controlled by you with private keys. Think of a cold wallet like a savings account at a bank. Using a banking scenario, savings accounts that are not linked to your debit card are a secure way of storing your funds. Cold wallets are the same way.

There are different types of cold wallets, which are paper wallets and hardware wallets. Paper wallets are wallets that you print and have both private and public keys displayed. Cold paper wallets rarely interact with the Internet, unless you are transferring funds to make a payment. There are lots of different ways to create Cold wallets. Here is a how to make your own.

The other type of cold wallets are hardware wallets, like a Ledger Wallet. They plug into your smartphone or PC via USB and have a separate interface that allow you conduct transactions. This method of Bitcoin storage is not quite as easy as a hot wallet but it is far more secure. This video explains how to purchase your own hardware wallet and how to use them.

When using Bitcoin, you are solely responsibility for securing funds. Pick a wallet or a combination of wallets that work for you. For more information, visit http://www.investnoir.com.