Finance Lessons from Professional Athletes

professional athletes finance

Many athletes have come and gone. Many have made unthinkable amounts of money and many have lost unspeakable amounts of money. A lot of professional athletes, lacking time and the right advisors end up losing the fortunes they make. Oftentimes, they lose their fortunes and end up in significant debt. Their experiences serve as great lessons for the rest of us who would like to make and keep a sizeable nest egg. Professional athletes finance lessons provide a treasure trove of information. Continue reading

Financially Prepared for the Coronavirus Economy

financially prepared coronavirus

With the coronavirus squeezing the economy of its growth, it becomes more important to secure one’s financial plans. These are times of great insecurity that call on us to be financially prepared for the coronavirus economy. Many workers have had their workplaces completely shut down while others work from home, worried about the future of their career. In these times, a deeper sense of financial security must be built. Continue reading

Changes in Life that Affect Retirement Planning

Changes that affect retirement planning

Retirement planning is a challenging endeavor. With so much uncertainty in life, it pays to give enough thought to retirement plans. Many events take place which we do not expect. Such events can unfold new opportunities and challenges. The right plan and execution can allow one to leverage the resources one has to improve their future. But what life changes affect retirement planning? Continue reading

Should You Roll Over A Retirement Plan Distribution

retirement plan redistribution

Different circumstances arise that call for one to rollover their retirement plan. You may be left with little time and tough decisions to make. The decisions you make on whether you rollover your retirement plan and how you rollover your retirement plan distribution can have profound effects on several areas of your life, including how much you are taxed. Whether or not you rollover your distribution is not a decision to be taken lightly.  Continue reading

How Much Does an NHL General Manager Make?

NHL-general-managers

If you ask NHL team owners what they look for in a General Manager, they’re likely to say they look for strong leadership qualities, superb communication skills, and of course unbreakable commitment to win. These qualities are harder to come by than most people expect. For this reason, General Managers of ice hockey teams make sizeable amounts in take-home pay.  Continue reading

David Beckham’s Net Worth

david beckham's net worth

Few names in soccer are as popular as that of David Beckham. Despite being retired for so many years, the former Manchester United player has managed to remain relevant in the sporting world, building a brand that transcends the soccer stadium. Around the world, the mention of David Beckham raises ears. Thus, it is no surprise that his net worth of $450 million continues to grow.  Continue reading

3 Easy Post New Year’s Financial Resolutions

A new year signals a new start for many people.  Whether it is with your health, your relationships, or your finances, it is as good a time as any for a re-birthing.  When it comes to one’s finances, there are some relatively easy New Year’s financial resolutions you can do to exit 2018 in a better financial position than when you started.  Listed below are 3 easy post New Year’s financial resolutions you can make.

Financial Resolution 1: Build an Emergency Fund

It is estimated that roughly one out of every three American adults has no money stashed away in an emergency fund.  This often means that they will have to take on high-interest credit card debt in order to pay for an unexpected expense.  No matter your age, any amount of money in an emergency fund will be of benefit.  Focus on saving $100 a month into an emergency fund.  By the end of 2018, you will have $1200 stashed away for those unexpected expenses.

Financial Resolution 2: Create a Budget

Earning money is important, but also of high importance is tracking your spending.  I love the following example:

A teacher making $40,000 in annual post-tax salary, but spending $35,000 of it, has more savings at the end of the year than a doctor earning $120,000 in post-tax salary but spending $130,000.

The point of this example is that if you can make a lot, but if you spend a lot you will never get rich.  Budgeting allows you to monitor you income while also keeping track of your expenses.  We offer a free monthly budget on our website to help you get this resolution underway.

Financial Resolution 3: Open an IRA

Recent tax reform has lessened the financial burden of taxes on many individuals and families, but another way to reduce taxes while funding retirement is through an IRA.  Traditional and Roth IRA’s are both good options to help save for those late years in life.  I prefer a Roth IRA; you put in after-tax money now, and it grows tax-free and has tax-free withdrawals.  Most people qualify for IRA’s, and the best part is that they are easy to open.  Many IRA’s can be started with as little as $100.

Not everyone is a fan of New Year’s resolutions, but that is part of the reason why people make them.  They have goals they want to achieve.  Those goals may be monetary, personal or health, either way they hope to be in a better place at the end of the year than they were at the beginning.  If you haven’t made a New Year’s resolution, it isn’t too late.  We aren’t even a week into the new year.  I challenge you to try at least one of these 3 easy post New Year’s financial resolutions and make your finances great again.

Budget Smart, Invest Wise

How to Become Independently Wealthy

Become Independently Wealthy

Becoming wealthy is a goal many of us hope to achieve in our lifetime.  Whether you want to be wealthy so you can have unbelievable lifelong experiences or to validate your success, the goal is often dreamed of but rarely achieved.  Ken Fisher, the author of The Ten Roads to Riches, discusses the many ways people can achieve wealth throughout their lifetime, ten to be exact.  All of these roads have proven to make someone independently wealthy throughout their lives.  Some are more common than others.  So if the question of how to become independently wealthy has crossed your mind, I will discuss two of the ten Ken illustrates in his book.

How to Become Independently Wealthy: Save and Invest Wisely

I usually sign off my posts with a simple phrase: Budget Smart, Invest Wise.  Budgeting allows you to allocate your funds to various categories, and hopefully one of those categories is savings.  Whether your savings vehicle is an IRA, Roth IRA or other type of investment, saving money is critical to building wealth.  However, saving is only half of the battle to building wealth this way.  The other key ingredient is investing wisely.  Investing wisely means creating a smart investment plan, be it with a financial advisor or through acquired knowledge, that creates a return on one’s investment.  For example, I have found that investing on a monthly basis in a mutual fund that covers the broad range of the U.S. Stock Market to be of most benefit to me.  I recognize that this investment, although it has risk involved, prevents me from being susceptible to the failure of one company or one sector of the market.  Saving and investing wisely is the road most traveled, but it also provides the greatest chance of reward.

How to Become Independently Wealthy: Invent Income

Inventing income can cover a wide spectrum of earning additional money.  For example, if you are a songwriter or musician, you can create an ongoing stream of royalties from your lyrics or music.  If you purchase a property that you decide to rent out, you could turn it into a cash flow positive stream of income.  The possibilities are endless.  Maybe you have a specific skill that people are willing to pay for you to teach them.  Perhaps your area of expertise at work can lead to consulting other companies on the side.  Do you have something you’re passionate about that you can create into a blog or website and charge for ad revenue?  Many of us have the tools, knowledge and capabilities to put our talents towards creating additional income.

Becoming independently wealthy or successful all boils down to one’s level of commitment.  If you are committed to becoming independently wealthy, then most likely you can find a way.  Some individuals, like Bill Gates or Mark Zuckerberg, created an enormous amount of wealth.  Maybe you want billions like these company creators, or maybe you will be satisfied with millions or even a million.  Only you can determine what being wealthy is to you.

25 Ways to Improve Your 2016 Finances

A new year is fast approaching.  While many are finishing up their holiday shopping and setting their New Year’s Resolutions, now is also the best time to lay out your financial framework for 2016.

As is always the case with every new year, it is time to prepare a new budget.  Getting your budget off to the right start is the best way to help your financial situation in the new year.  Go to the Monthly Budget page on my website and download an Excel version for yourself.

Create your monthly budget for the new year, using your best guess estimates for various income and expense categories.  Remember that it doesn’t have to be perfect, and you can always change it as the year goes on.

After you have set up your monthly budget, I highly suggest you check out Kimberly Palmer’s article that was shared on Yahoo Finance.  I have provided the link below:

http://finance.yahoo.com/news/25-ways-improve-finances-2016-154142827.html#

Look at some of the suggestions outlined and see where you can tailor your budget to focus on paying down high interest debt, or finding spare money to invest for your future.  You might not be able to relate to or benefit from all 25, but find at least three that you can implement into your 2016 budget.

 

Budget Smart, Invest Wise

 

What Is Retirement?

retirement

The other night I was pondering what actually classified as retirement.  We all think of retirement as falling towards the end of one’s life.  You work for a while, save up enough money, then use those savings to enjoy the latter part of your life.

 

But what if you don’t want to wait until you are 65 or older to retire?  Say you want to save up money for 15 years, take 5 years off and then re-enter the workforce.  Is this retirement?

I didn’t know the answer, so I did what everyone does nowadays to find such an answer.  I Googled it.  Webster’s Dictionary defines retirement as the following:

The act of ending your working or professional career; the period after you have permanently stopped your job or profession.

So if you did decide to take 5 years off during the middle of your working career I guess it would be classified as a hiatus.  Regardless of when you decide to retire, there are a few things I believe retirement truly is.

  • When one’s passive income is greater than one’s expenses.

Your investments, rental properties, royalties or whatever revenue generating sources you have other than trading your time for money are greater than your expenses.

  • Finding ways to spend your time with people you love and doing the things you love.

You can have all the money in the world, but if you don’t have ways to enjoy it or enjoy your time then it has no purpose.

  • Creating your very own legacy.

Volunteering, raising money for a worthy cause, instilling wisdom in the minds of younger generations.  Creating a legacy to be remembered by is the ultimate goal of success.

 

Budget Smart, Invest Wise