Posts filed under 'Spending Control'
Our Comment by J. David Lewis – Believe it or not, I am glad to see services like these. Many people need and deserve financial planning help. Far too many have told us they didn’t think they had enough to be our clients, when we have been able to help them in many ways. A minimum fee structure, instead of requiring a minimum portfolio, permits us to help several clients who now have growing resources. We will do all we can to help those who are serious about improving their resources, even to the point of helping them find one of these services.
By EMILY GLAZER
You dont need a high net worth or complicated investments to create a financial plan.
There are a crop of new resources that let you get financial-planning services on the cheap. For a flat or hourly fee, a certified financial planner can help you develop a savings plan, get your budget in order and pay down debt. Enlarge ImageClose Andy Rash
But keep in mind that you get what you pay for—so dont expect any of the bells and whistles of a full-service financial-planning or brokerage firm. Some financial planners dont offer any investment advice. And most of the consultations are done over the phone and via email. Whats more, some financial experts warn that this isnt a solution for every investor since the quality of financial advice can be limited. And you may want to do some due diligence on the financial planner you are considering.
See if these tools will be useful for you via How to Find Financial Planning Help – WSJ.com.
Contact J. David Lewis directly with dlewis@resourceadv.com or share your thoughts on this topic below. He founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family. 58522
April 1st, 2012
Our Comment by J. David Lewis – If you believe you do not have enough to find a good fee-only, fiduciary financial advisor, this is the article for you. It gives good research tips.
by Mark Miller, Morningstar
“Resolved for the New Year: I will not make a financial plan for my future in 2012.
Thats the disturbing finding of a survey showing that 80% of Americans wont focus on financial planning this year–the highest percentage found since Allianz Life Insurance of North America started asking about this three years ago in an annual New Years resolution survey.
Why? The largest group of nonplanners–35%–said they “dont make enough to worry about it.”
Read the steps via 6 Crucial Steps To Take When Hiring A Financial Planner.
After you read this article and followed its advice, talk with us. We do not have minimum investment accounts for new clients. We do expect serious commitment to improving your financial strength. There is more to money than money®. With that commitment, we will quote fee arrangements that should make sense for your particular situation.
Contact J. David Lewis directly with david.lewis@resourceadv.com or share your thoughts on this topic below. He founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family. 57279
January 16th, 2012
by J. David Lewis
The time around each New Year has become very special for me. Of course, the news media fills its commentary with events of the last twelve months. We take a longer view; to consider events in each client relationship since we began our journeys together. I must say the letters we write with this season’s Quarterly Reports are among the most personally rewarding for me. Several of our clients have been with us more than twenty years. Even the much shorter relationships have personal stories. They all provide many memories I savor. There is more to money than money®. Life as an adventure is exciting. A new year is starting, with more in store for all of these relationships.
We use graphs, with annual columns to represent each client’s history of Total Assets – not just investment accounts. While increasing investments is important for future security, we also think it is important to have appropriate increases in those things that make life better now. Adjacent columns represent Total Liabilities. The distances between the tops of these columns graphically display net worth progress, which is the most comprehensive measure of financial strength. At a glance this measure of success – or lack thereof – is clear. These reports are not about how well we managed investments. They are about how well our clients managed their financial strength with our help.
The text of these reports compares each client’s financial strength now to several recognized events. These histories are important tools. If you cannot compare your current total assets and debts to your past, I encourage you to document them now, so you can make this comparison at the end of 2012 and at least once a year thereafter. I am finished with mine for 2011. The “Once a Year Task” doesn’t take that long and the information is amazingly useful.
Even if progress is less than you intuitively believe, you can actually feel more secure. Facts, even disappointing facts, help guide confidence in managing resources. In our experience, the exercise of measuring results regularly reveals that most people are in better shape than they imagined. Whether you are doing better than you believe or worse, knowing facts is better than not knowing.
Let’s say your change in net worth is positive. Was that because you have more assets than a year ago or did you reduced debts? We like to see net worth increased by both these components.
What assets increased or decreased? Do you have more investments, a nicer home or a new car? We have seen several situations where people displayed great distress over publicized market events, when their net worth was relatively stable. Investments were just not that big a factor relative to other issues for them.
The significance of maintaining these annual Net Worth Statements takes on more meaning with just three years of history. At the end of 2008, markets had been particularly brutal for several months. At the time, knowing how much that bear market effected net worth could make the events of the time more bearable. Not all the components of net worth are affected by the ups and downs of stocks.
Since December 31, 2008, investment returns for those who “weathered that storm” should be a contributor to net worth growth. The S&P 500 Index return from December 31, 2008 to 2011 was 14.11% per year. For many people, personal debts have also been reduced significantly in these years. With records of your historical net worth, you could expect to see encouraging improvement. Your view can be more comprehensive than just the last twelve months.
Five years ago, markets were approaching their highest level ever. The peak was reached in the third calendar quarter of 2007. Except for rare circumstances, investment performance has probably not contributed a great deal of personal net worth growth, with a five-year S&P 500 Index return of -0.25%. However, for those who continued systematic contributions to 401(k)s and other investments, alongside debt reductions, net worth growth should be respectable.
Ten years ago, December 31, 2001, it was about 3 ½ months after 9/11 and about 15 months before markets reached that low point in the spring of 2003. In 2001, we did not know when the bottom would come. It was painful, after two years of decline from the robust 1990’s. Now, the ten-year S&P 500 Index return is 2.92%, which has increased through 2011. This ten-year return is very low relative to the vast majority of ten-year S&P returns. Yet, we know that many people have managed to increase net worth through these years. Consider how knowing your progress might help you face the future now.
There is more to money than money®. Investment performance is only one of many factors that influence growing financial strength. Investment contributions, withdrawal management and debt management are the keys to building and maintaining resources, whether the markets are performing well or poorly. Returns cannot come close to these factors – particularly since the year 2000. Knowing the reasons for your unique results is important. So, now is the time to start building your documented history. The knowledge will make a difference in your enjoyment of life. Start this New Year with at least 2011 data in hand. This is a core service we provide clients and will be glad to help you.
Contact J. David Lewis directly with david.lewis@resourceadv.com or share your thoughts on this topic below. He founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family. 56975
January 4th, 2012
Our Comment by J. David Lewis – This is a good article to illustrate the kinds of money conversations that are very important in families. There is More to Money than Money®. We share it here to help our friends think about this facet of money in everyone’s life. It is important to recognize how personal feelings are affected by the ways couples discuss and use money.
“Last week, when chatting on the phone at work with Joe, I mentioned that I had purchased online a $20 pair of pajamas for my niece.
“They were $29,” he said.
“Excuse me?” I replied.
“They were $29,” he said. “I just happened to be looking at our statement.”
“You are driving me crazy,” I said. Like many situations that get on my nerves, this is one of my own creation. It started with……….”
Read Katherine Rosman’s article via Its Time to Be a Grown-Up With Money – WSJ.com.
Contact J. David Lewis directly with david.lewis@resourceadv.com or share your thoughts on this topic below. He founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family. 53298
May 8th, 2011
Our Comment by J. David Lewis – This article points to the importance of good financial communication within couples. One of the things Resource Advisory Services has always tried to facilitate is improvement of theses communications. Preparing regular Quarterly Reports that describes the current state of each family’s resources, along with our thoughts on ways to improve the management, gives information that enhances these discussions. Our reports are addressed to both members of each couple. Most couples have asked for each individual to receive a separate copy by email. They get to see the results of financial decisions and events independently. We find that couples seem to develop better common understanding of their circumstance as this foundation of accurate information works its way into the culture of the family.
Marriages financial minefields
By Jason Alderman
For the HeadlightPosted: 10/07/2010 12:00:00 AM MDT
“As with all challenges in a marriage, often what starts as a small issue can fester and grow into a large problem, given enough time. Its not surprising that after being together a few years, some couples realize that the financial quirks they initially found amusing or simply ignored in their spouse now dominate their marital disagreements. In fact, money issues tend to top the reasons for divorce.
If youre having financial difficulties, long before they escalate step back and examine how and when you and your spouse discuss — or dont discuss — your financial situation, and explore ways to ease the tension.”
Read Mr. Alderman’s recommendations via Marriages financial minefields – The Deming Headlight.
Contact J. David Lewis directly with david.lewis@resourceadv.com or share your thoughts on this topic below. He founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family.
49956
October 13th, 2010
Our Comment by J. David Lewis – Over the last few weeks or months, I have seen several enjoyable Carl Richards cartoons and columns about very basic personal financial issues. The column with this cartoon, particularly the few sentences I have excerpted below to recommend it, is worthy of space on our blog. I expressed a similar sentiment in Economic Perspective – January 4, 2010. “Yes, the people making those loans were completely irresponsible. Mortgaging the home for vacation money wasn’t particularly bright either. It seems everyone contributed.” Richards’ says more on the subject.
“Focusing on the actions of others and the impact they had on us does little good. Sure, it might make us feel better for a while, or give us something to talk about at parties. But if we’re not careful, blaming others can lead us to continue many of the same habits that got us in trouble in the first place.
It’s a bit like the moral hazard problem that Wall Street faces in the era of bailouts; when we start to believe that someone will save us from the consequences of our actions we act differently than we normally would. We engage in more risky behavior, thinking all along that someone will rescue us if we get in over our heads.”
Read this example from Carl Richards via Whining Is Not a Financial Strategy – NYTimes.com. Carl Richards, a certified financial planner, regularly publishes new sketches at BehaviorGap.com that try to simplify complex money decisions.
Contact J. David Lewis directly with david.lewis@resourceadv.com or share your thoughts on this topic below. He founded Resource Advisory Services in 1985. National Association of Personal Financial Advisors (NAPFA) was formed only a few years before. Lewis became a NAPFA-Registered Financial Advisor in 1986. He is a passionate advocate for fiduciary, fee-only financial planning and has been associated with financial services since childhood in a banking family.
49912
October 10th, 2010
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