Don’t Get Caught with a Financial Holiday Hangover

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December 17, 2018
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The holidays are meant to be a joyous time, one of socializing, gift-giving and charity. Multiple holiday influencers, such as our faith, family and even the media, can impress upon us what celebrating the holidays mean and possibly lead us to overextend ourselves. The result can leave us recovering physically, emotionally, and often, financially. With a little forethought and discipline, though, we can bring in the New Year without suffering from a financial holiday hangover.

The first step is to establish a holiday budget. If married, be sure that this is a joint project with your spouse. Start with a gift list – who do you want to gift and how much do you want to spend on that gift. Be realistic with what you can afford and who warrants a gift. Don’t feel compelled to give one just because you receive one. Most importantly, stay focused on the meaning behind your gift, rather than the price tag. Your recipient will value the thought and care you gave.

The budget doesn’t stop with gifts. Consider all the non-typical expenses that arise during the holiday season; décor, food for entertaining, tips for preferred vendors, dry-cleaning for the holiday parties, hostess and host gifts or dinner tabs, and travel. Also, don’t forget about charitable giving. Including this in your budget will deter you from being influenced by emotion and possibly overextending yourself.

Clearly, when all is considered, this can be quite an extensive budget. Ideally, you want to start saving in January as the last thing you want to do is use a credit card to cover these expenses. For those who find it difficult to stick to their budget, utilizing cash or prepaid cards can help you stay on track. There are many tools available if you’re willing to use them.

This may sound like a lot, but a little forethought and discipline can go very far for you. I wish a happy and healthy holiday season to all. More than that, though, I wish you a happy and healthy new year, free from the financial holiday hangover.

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By Trilogy Financial
March 3, 2020

In almost every journal entry I write, I include, “I am grateful for…” and list three to four items from my day that reminded me of how grateful I am. Just last night my wife of 10 years, laughed out at loud as she noticed, I had written, “Popcorn” as I enjoyed a bag in the last minutes of the evening after putting our young boys to bed. It is the little things that make life grand, right?

In light of the deep gratitude I experience on a daily basis, here are 8 financial planning action items I’m grateful for. I know my clients feel the same way because of the significant impact these ideas have over time:

  1. Automatic monthly savings plans into investment accounts.

I am grateful because these plans create structure and commitment.

  1. The proper 401(k) allocation.

I am grateful to help align risk, time frames, performance, and cost with the fund options available.

  1. Roth IRAs and Roth 401(k)s.

I am grateful because we are in a historically low tax environment and Uncle Sam has already been paid.

  1. Intentional and proactive communication with an Advisor.

I am grateful to help eliminate inefficiencies and “leaking out the back door” with surplus cash flow.

  1. The right insurance solution.

I am grateful for financial reassurance.

  1. An understanding of where my current savings rate ends up at the end of the road.

I am grateful when I can provide clarity to planning so that my clients know what they are actually saving for.

  1. An outside, objective, fiduciary perspective.

I am grateful when a client calls asking about a refinance option, a car purchase, or stock options. Even though I don’t directly manage these decisions, they do have an impact on your financial plan.

  1. Non-retirement investment accounts earmarked for future priorities.

I am grateful when clients can save and grow their money, yet still have access to their funds for that next down payment, big trip, or redoing the kitchen.

Yes, I am grateful for buttery popcorn, but more importantly, I am grateful for the motivation and trust of my clients and business partners.

 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine what is appropriate for you, consult a qualified professional.

By
Gonzalo de Leon Plata
September 27, 2017

When you put the words, “retirement,” “investments” and “risk” in the same sentence, most of us will automatically think about market risk, you know, the possibility for an investor to experience losses due to overall performance of financial markets1.  According to the 2014 Annual Retirement Confidence survey, 88% of retirees are worried about maintaining the same standard of living.  While Market Risk is a very real reason to worry, there are other risks that may throw a wrench into your financial plan. This time we will discuss the possible need for Advance medical care, how much it could cost, and how to be ready for it.

The Risk: There is a 50% chance that any of us will need some form of Advance Medical Care2.  In other words you or your spouse WILL need Advance Medical Care. The risks are so high and yet most investors don’t prepare of it.

The Cost: Know the potential damage. The numbers don’t lie. The average cost of long term care in the US for Nursing Home Care for a Semi -Private room is a whopping $225 per day3.  The average stay in a Nursing home is 892 days.  For easy math you are looking at a $200,000+ cost above and beyond your living expenses.

The Solution: Use small dollars to cover big expenses. Get life insurance with living benefits.

One solution that is becoming more and more popular is getting a life insurance plan that can be used to cover Advanced Medical Care. Some insurance companies offer something called Living Benefits Riders. These riders allow you to “advance” a portion of your death benefit if certain conditions are met, such as Terminal illness, problems with the Activities of Daily Living  and life threatening conditions.

Building a Financial Plan that can withstand the risks of life is complicated.  Make sure you hire a Financial Coach to help you prepare for the unknown. Thinking outside the box may be a way to protect your golden years.

[1] www.investopedia.com/terms/m/marketrisk.asp

[2] http://www.aaltci.org/long-term-care-insurance/learning-center/probability-long-term-care.php

[3] www.genworth.com/about-us/industry-expertise/cost-of-care.html#

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