Top 10 Things My New Client Has Learned About Financial Planning
I love those “aha moments” when my clients fill in the gaps in their knowledge, and I decided it would be fun to share some of them.
A divorced professional woman recently met with me. Like many people who seek my services, she knew she needed help managing her money. But what exactly is “money management”? Often, that concept is as squishy as children’s play clay. As we walked through the process, however, the concept became more concrete, and I saw the light bulb come on. So, I asked my client, “What have you learned about financial planning?” Here’s her Top 10 list: Continue reading
Worried about Social Security Retirement Funds?
I hear questions on Social Security such as:
1. Will Social Security Retirement Funds be there for me?
Yes, I believe they will be there… especially if you’re in a “close to retirement group” of 56 years or older.
Changes, though, may need to be made to address long term “solvency”. These changes may include raising the retirement age or reducing the monthly benefit, among many other ideas. Continue reading
Knowing your Goals for Retirement May Help the Process
I get to work with wonderful couples in their late 40’s, 50’s and 60’s that are planning their retirement.
Many hope retirement will allows them to:
- Volunteer for a cause close to their heart
- Travel more domestically and internationally
- Try out a new job
- Spend more time with and help their kids and grandkids
- Exercise more
- Develop and expand their hobbies and
- Meet new people experiencing retirement also. Continue reading
Building a Financial Foundation to Help Weather Life’s Storms
You’ve probably seen recent headlines like, “More Snow Storms Expected to Hit Parts of the U.S.” Life can be unusual and unpredictable, just like our weather!
An emergency fund, such as a savings account, can be a financial foundation that may help to “support” you during the “storms” of life. These may include unexpected job layoffs or medical costs. Funds may also be used for unexpected opportunities such as a discounted airline fare to visit a friend. Continue reading
Need Cash? There May Be More Money Available in Your Paycheck
Could you use some extra cash from your paycheck now rather than waiting for your tax refund? Would you like to reduce a possible balance due on your 2010 Federal income taxes?
You can make adjustments to your Federal Income Tax (FIT) withholding to increase the amount of money you get with each paycheck. But, the opportunity is NOW! You must take advantage before you receive your last paycheck for 2010. Continue reading
Push through your feelings and start your financial planning!
We all have feelings… well…maybe some people don’t—but MOST of us do. I talk to people that are nearing retirement and I can easily see a benefit to them from financial planning help. But they say:
“I’m hopeless”,
“I can’t get over my fear of what I’ll find out”,
“I’m embarrassed of my situation (haven’t saved much, can’t control spending…)”,
“You’ll laugh at me”,
“I’m dumb in numbers and financial stuff-it goes over my head”
I have a fair share of these feelings on some life issues myself!! Don’t let your feelings get in the way of taking the first step in financial planning.
I was talking to a divorced, unmarried, wonderful woman, who has given much of her life in teaching 2nd grade school children. We were at a public garden, and several students came over to hug her and say “hello”! She had taught these students roughly 8 years ago and their bubbliness and warmth was like she was still their teacher! I think the students must have played all day in that 2nd grade classroom for that kind of reception!
An incredibly successful teacher, yet, she has said she feels hopeless on retirement issues. She has sighed and said “I’d like to do an international trip when I’m retired, but know that’s probably not likely”. There may be embarrassment due to her lack of planning and fear that retirement may be 1 to 2 years away and financially—– she may not be ready.
Recently, I e-mailed her some information on Social Security where at 66, if she chooses to take her ex- husband’s benefit , which is actually likely to be lower than hers, she may be able to let her benefit grow until she’s 70. Everyone is unique, but many in her family pass away in their late 90’s. So in her case, in the long run, she may receive a greater net Social Security Benefit by taking her ex-husbands slightly lower Social Security benefit first! There are risks to this and it’s not “fool-proof”, but it may be worth analyzing.
Could a few ideas from a Financial Advisor do a little to help chip away at that “hopeless feeling”?
If you talk to a financial advisor and they make you feel dumb, you don’t understand what they’re talking about; they are busy trying to sell you something instead of listening to your goals or concerns and you should turn around and RUN away—–as fast as you can. Then say to yourself….. “Self, that financial advisor does not have the skills that are needed for regular people like me!” Go back to your list of Financial Advisors and meet with the next one. Look for someone where you feel relaxed and you can share your concerns.
Push through your feelings, fears and take the first step.
- Look at your calendar and set an appointment with yourself to take one action to start your financial planning.
- Search for information on the internet, call or email a Financial Advisor.
In the long run, you may achieve a sense of achievement, confidence and peace of mind.
Heidi Davis is a Certified Financial Planner™ professional licensed with a registered investment adviser that provides personal financial advice online for a fee. A former commercial lender, she helps her clients with investment reviews, financial and retirement planning issues. Contact with virtually any financial need.
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