While growing up, you probably heard many of the same old wives’ tales I did: if you keep making that face, it will freeze that way. Coffee stunts your growth (or makes hair grow on your chest). You can’t go swimming for 30 minutes after eating, or you will get cramps and drown. We’ve all heard them, and some, you may still believe. I’d like to dispel a few common financial myths.
With everything going on in your life, why do you make time for your annual physical? Maybe your insurance covers it. Maybe you want to ensure you are in good physical shape and catch any potential problems early. I believe the same can be said for your financial health. To ensure you are in good financial condition and stay that way, you must take time for an annual financial review with a professional.
At the start of a new year, people often make resolutions about things they want to change going forward. Finance is one area in which resolutions are made – and often fail. It’s good to make a resolution to make positive financial changes, but without a sound plan, we set ourselves up for failure. Here are three tips to help you develop your plan – simple steps that can set you on a path to a better financial future.
When discussing retirement plans with my clients, I always discuss taxes. Taxes can make a huge difference in your income during your retirement years. I believe my clients need to develop retirement strategies that address taxation, while providing sources of supplemental retirement income. Here are some of the specific topics I discuss with my clients.
One of the most debated financial questions of modern times is whether you should prioritize paying off your home mortgage over planning for your retirement. The answer to that question often is rooted in emotion more than sound financial wisdom. Emotion embraces the dream of a retirement with no debt, great health, and doing whatever you want whenever you want. However, for the vast majority of Americans, this will not be their reality. Sound financial wisdom says that before blindly adhering to the mantra of paying off your home mortgage as quickly as possible, you should examine your situation to see if it really makes financial sense for you.
As a life planner and business coach, I find one of the main things people lack is a basic understanding of financial principles. I wonder- how much easier could their lives have been if they’d been taught these basic facts as children?
What if you could use the magic of compound interest for decades (i.e., a child policy), yet never pay taxes above basis because you take distributions as a loan?
It is not deemed as income, is not subject to required minimum distributions, and will not affect taxation on social security if in a life insurance policy. Death benefits are tax-free as well.
As a parent or grandparent, you can leave a legacy by using the magic of compound interest.
