By Arlen T Olberding, CFP® on July 15, 2013
It’s easy to succumb to the urge to sell if the market takes a header or buy if it’s headed upward. But sudden action is usually a mistake. In the late 1980s, Harvard psychologist Paul Andreassen made news with a research project that found that people who listened to market news actually made lower returns. Why? Because those who sold – or bought – during a market swing probably found a day later that the market was really running on hype, not fundamentals. Continue reading "UPS AND DOWNS ON THE PATH TO FINANCIAL INDEPENDENCE" →
Posted in Fundamentals, Investing, Retirement Planning | Tagged retirement planning, saving
By Arlen T Olberding, CFP® on April 8, 2013
There are many terms out there describing financial advisors and sometimes it’s hard to figure out what they all mean and why it matters. It does matter. Their “classification” can tell you a lot about how they are compensated, work with clients, and their fiduciary responsibility.
Fee-Only financial planners are registered investment advisors (RIAs) with a fiduciary responsibility to act in their clients’ best interest. They do not accept any fees or compensation based on product sales. Their main source of compensation is directly from their clients in the form of a quarterly bill for retainer services, assets under management fee or an hourly fee. Fee-Only advisors have fewer inherent conflicts of interest, and they generally provide more comprehensive advice.
Commission-based planners, also known as brokers, are solely compensated by the products they sell to their clients. These planners are only required to do what is suitable for their client, but not necessarily what is best for their client.
Continue reading "Fee-Only vs. Commission and Fee-Based Financial Advisors" →
Posted in Fundamentals | Tagged fee-based, fee-only, financial advisors |
By Arlen T Olberding, CFP® on March 28, 2013
It’s true that small savings can add up, especially when applied on a consistent basis. A list of spending strategies follows that you can apply almost every time you shop. And these savings can be invested to help you realize your financial objectives.
- Remember that you haven’t actually saved anything until it makes its way into a savings or investment account. Otherwise, you just haven’t actually spent it yet!
- Check your cars tire pressure on a weekly basis. Keeping your tires properly inflated can add up to 10% to your MPG.
- Watch the coupons you use. On average you will spend more on items you may not have needed anyway. Only clip coupons for things you actually buy on a regular basis.
Posted in Saving | Tagged saving |
By Arlen T Olberding, CFP® on March 18, 2013
Unfortunately, most people’s general education didn’t include some important life skills such as how to manage your finances. Of course, we develop many skills as life goes on just because we need them. Still, there are a handful of proven financial basics that aren’t common knowledge. It’s our hope that these best practices will help you on your financial journey.
- Educate yourself. The world is filled with honest people handing out bad advice. The world is also filled with biased advice. There are many crooks and con artists as well, who intentionally promote dishonest ventures. Each of us needs to be responsible for our own financial education so we can tell the difference between good advice, biased advice, and crooked advice. If you can educate yourself to know the differences between those three types of advice, reaching your financial goals is easy.
- Set measurable goals. If you are young, you may want to live a full life in a hurry. You might want all the trappings of the good life before you have really established yourself. However, set short-term (1-3 years) mid-term (3-7 years) and long-term (7+ years) goals. These will help you identify what you really want, and you can then plan to achieve the goals. Have a plan and stick to it!
- Spend less than you make.Spending less than you make opens the door to saving for the future. If you can’t afford the house, sell it. Can’t afford those car payments? Trade it in for a clunker you can afford. Get over your notion that money and material things are as important as you believe them to be. At a minimum you should save and invest 10-20% of each paycheck. Continue reading "Top Ten Tips for Your Financial Life" →
Posted in Fundamentals | Tagged fundamentals |
