Financial Planning

Focus, Focus, Focus.

Leonard Lauder, son of Estée Lauder, donated 78 cubist paintings to the Metropolitan Museum of Art. Thirty-three of them were by Picasso. Art expert William Acquavella described the donation as “without doubt the most important collection any private person has put together in many, many years. It is fabulous and worth a billion dollars, easily.” [source: Economist] How did Mr.…

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Financial Planning

New Orleans Saints’ running back Alvin Kamara banked his signing bonus, rather than spending it. More players should be coached to do the same.

Alvin Kamara’s got his priorities straight. pic.twitter.com/9jeFLrJvqb — NFL on ESPN (@ESPNNFL) January 4, 2018 “I got my signing bonus and I put that s— in the bank and I went and got some m—–f—ing wings.” The above quote, from rookie running back Alvin Kamara, went viral on social media yesterday after being posted by The MMQB. Kamara went on…

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Financial Planning

A word of caution regarding ‘Step-Up Callable CDs’

One advantage of “step-up callable CDs” is they generally pay a higher interest rate than traditional bank CDs, which is appealing to fixed income investors. However, these products come with a wide set of unique risks. A Certificate of Deposit (CD) is a financial product commonly sold by banks that is popular among conservative investors because the deposit is protected…

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Financial Planning

Should You Pay Off Your Mortgage?

After years of dutiful payments, you find yourself in the enviable position of having enough accumulated savings or discretionary income that you could aggressively pay down—or completely pay off—your mortgage. But should you? Are there better ways to ensure your financial security? Making the best choice for you Paying down your mortgage faster—or paying it off in a lump sum—seems…

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Business Planning

Practice owners can surpass 401(k) contribution limits with Cash Balance plans.

Professionals (doctors, dentists, lawyers, etc.) may have very high wages, but the earnings come after years of school, training, buying into a practice, and paying down student debt. Because of these factors, professionals often are unable to make meaningful retirement contributions until the middle or later parts of their careers. Professionals, who are owners in a practice, can make up…

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Other

The Rise of the Cryptocurrencies

Roughly seven years ago, Laszlo Hanyecz made a proposition on an Internet forum. Hanyecz was looking for someone to send him some pizza, so he could cure his hunger pangs. In return, he offered up 10,000 units of a little-known currency called bitcoin. Hanyecz ended up getting two Papa John’s pizzas for his bitcoin payment (which at the time was…

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Financial Planning, Other

Hurricane deductibles and other exclusions can trigger large out-of-pocket bills for homeowners

Thousands of homeowners in Florida suffered hurricane damage this year, and many were surprised to learn their homeowner’s insurance policy contains a separate “hurricane deductible” that shifts responsibility for thousands of dollars’ worth of repairs to the homeowner. For those fortunate enough to not have had enough damage to file a claim, now would be an excellent time to review…

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Business Planning, Financial Planning

Seasonal and Cyclical Revenue Declines will make Realtors Save More Money.

I have previously written that home builders and contractors need to keep more money in emergency savings than most professionals do. Several realtors and real estate agents have since contacted me to point out that they also have to keep extra money in emergency savings due to seasonal and cyclical sales fluctuations. They are absolutely correct. Financial planning professionals have…

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Education Funding, Financial Planning

Preventing a Parent from Raiding Their Child’s College Savings.

Relatives and divorced parents often want to fund a child’s college savings account, but fear the money will be inappropriately spent by a manipulative or irresponsible parent. This post will discuss how to ensure the money will be used strictly for college, and how to avoid legal entanglements with the parent(s). Situations often arise where a family relation wishes to…

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