A Pocket Guide to Homeowners Insurance

October 18, 2021

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Bir Grewall

Bir Grewall

Sikh American, India born; Bir is a "Top Recommended" Financial Strategist, Advisor & Author



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October 11, 2021

The Real Reason You Aren't Saving

The Real Reason You Aren't Saving

“I’ll start saving when I turn 30.”

“I’m too old to save.”

“I’m in too much debt to save.”

“Why do I need to save? I don’t have any debt!”

You may have heard your friends and loved ones say things like this before. You may have even said them yourself!

It doesn’t take much sleuthing to recognize these statements for what they are—excuses. And excuses always suck.

But the fact that people feel compelled to make excuses reveals the truth…

People are afraid of saving.

In one sense, it’s easy to see why. Everyone knows saving is critical. But no one knows the “right way” to go about it. And that ignorance makes building wealth seem mysterious, or even dangerous.

An excuse serves as a justification for avoiding that great unknown. It makes not saving feel like the safer option… for now.

But never saving can have disastrous consequences like…

  • Running out of money in retirement
  • Struggling to cover medical emergencies
  • Constant stress about affording the basics

The choice is simple…

Risk a financial disaster.

OR

Face your fears and start saving.

Here’s the good news—you don’t have to face that fear alone.

Having mentors and companions to aid you on your journey can mean the difference between success and financial shipwreck.

In fact, that’s what I’m here for—to offer insight, tips, and support as you start building wealth and financial security for your family.

So if you’re ready to face your fears and to start saving, let’s chat! We can review your situation, and what it would look like to overcome your financial obstacles.

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October 6, 2021

Lessons From the Super Frugal

Lessons From the Super Frugal

The world of the super frugal can be an overwhelming place.

In a sense, it’s inspiring. The creativity and grit of the super frugal are sure to put a grin on your face. You may even find a few fun money saving projects that are worth your time. Saving money with french toast? Sign me up!

However, there’s a fine line between inspiring and weird, and the super frugal sometimes cross that line. Could reusing a plastic lid as a paint palette save you money? Sure! The same is true for bartering with store clerks. Will you get funny looks? Almost certainly.

It’s not that funny looks are bad. There’s wisdom to defying the crowd and marching to the beat of your own drum. But sometimes there’s a good reason to raise an eyebrow at super frugality…

That’s because it can miss the point.

Your financial top priority must always be providing for those you love. In this day and age, that means building wealth.

Some people may need extreme measures to do that. Let’s say you have deep credit card debt or a spending problem. Coupon clipping, saving on utilities, and thrifting may help you knock that debt out faster and free up the cash flow you need to start building wealth.

But don’t mistake the means for the end. Obsessing over coupons, stressing over recycling, and cutting too many corners can reach unhealthy and even pathological extremes. That doesn’t create wealth and prosperity—it can just cause more suffering.

So take lessons from the super frugal. Find a few money savings projects that you enjoy. Maybe do a spending cleanse. But keep your eye on the ultimate prize—building wealth for you and your family.

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October 4, 2021

Wealth Is Security, Not Paycheck Size

Wealth Is Security, Not Paycheck Size

Wealth isn’t about how much you earn. It’s about how secure you feel.

Consider two examples that illustrate this truth…

Mark works for an up-and-coming software company in middling America.

He earns a handsome salary.

He wakes up at 5 a.m., works out, and meditates for 30 minutes. His chakras stay open. His creative juices stay flowing.

He shows his coworkers pictures of his Tesla between ping pong matches.

He’s never had any of them over to his rented downtown apartment. They mostly just eat sushi at that new place, hit the town, then go their separate ways.

His flat screen TV and triple monitor setup display more pixels than his eye can perceive.

In short, Mark is rich… but he isn’t wealthy.

He’s not wealthy because he has no security. If he gets laid off, he loses his Tesla, his community, his apartment, everything.

Let’s consider another example…

Sarah earns average money running a small creative studio in Nowhereville, U.S.A.

She‘s late to her weekly lunch dates with her long-time friends. Projects don’t finish themselves!

The kids rushed cleaning the dishes… again.

When her mom died, her friends worked around the clock to keep her family fed with homemade meals.

When the dust of her day settles, she sits down in her bed, does some light reading, journals things she’s grateful for, and then hits the hay.

What’s left after business and living business expenses goes to her Roth IRA that’s been steadily growing for two decades.

Sarah may not be rich… but she’s wealthy beyond belief.

If anything happens, she has assets—a family, a community, a business, and savings—to support her. She rests easy the moment her head hits the pillow.

The takeaway? Invest in your security. That could be a savings account, a healthy relationship, a community, life insurance, or a stable business. Over time, those investments can help bring you the peace of mind you’re searching for.

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September 29, 2021

Are You Ready?

Are You Ready?

It’s not a question if buying is better than renting. It’s a question of when you’ll be ready to buy.

That’s because rent money is lost to your landlord forever.

A homeowner, though, has the chance for the value of their house to increase. It may not be an earth-shattering return, but there’s a far higher chance that you’ll at least break even from owning than renting.

Even with its advantages, owning a home isn’t for everyone… at least, not yet. Here are a few criteria to consider before becoming a homeowner.

You’re ready to put down roots. If you’re not yet prepared to live in one place for at least five years, home ownership may not be for you.

Why? Because buying and selling a home comes with costs. As a rule of thumb, waiting five years can allow your home to appreciate enough value to offset those expenses.

So before you buy a home, be sure that you’ve done your homework. Will your job require you to change locations in the next five years? Will local schools stay up to par as your family grows? If you’re confident that you’ll stay put for the next five years or more, go ahead and start planning.

You can cover the upfront costs of home ownership. The upfront costs of buying a home, as mentioned above, are no laughing matter. They may prove a barrier to entry if you haven’t been saving up.

The greatest upfront costs you’ll face are the down payment and closing costs. A down payment is usually a percentage of the total purchase price of your home—for instance, a home priced at $200,000 might require a 20% down payment, or $40,000.

Closing costs vary from state to state, with averages ranging from $1,909 in Indianna to $25,800 in the District of Columbia.¹ These include fees to the lender and property transfer taxes.

The takeaway? Start saving to cover the upfront costs of purchasing a home well in advance. Your bank account will thank you!

You can handle the maintenance costs of home ownership. Say what you will about landlords, but at least they don’t charge you for home repairs and maintenance!

That all changes when you become a homeowner. Every little ding, scratch, and flooded basement are your responsibility to cover. It all adds up to over $2,000 per year, though that figure will vary depending on the size and age of your home.² If you haven’t factored in those expenses, your cash flow—as well as your airflow—might be in for trouble!

Do you have residual debt to deal with? The great danger of debt is that it destabilizes your finances. It dries up precious cash flow needed to cover emergency expenses and build wealth.

That’s why throwing a mortgage on top of a high student loan or credit card debt burden can be a blunder. You might be able to cover costs on paper, but you risk stretching your cash flow to take care of any unplanned emergencies.

In conclusion, owning a home is an admirable goal. But it may not be for you and your family yet! Take a long look at your finances and life-stage before making a purchase that could become a source of stress instead of stability.

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¹ “Average Closing Costs in 2020: What Will You Pay?” Amy Fontinelle, The Ascent, Sept 28, 2020, https://www.fool.com/the-ascent/research/average-closing-costs/

² “How Much Should You Budget for Home Maintenance?” American Family Insurance, https://www.amfam.com/resources/articles/at-home/average-home-maintenance-costs

September 27, 2021

Can You Create a Will Without An Attorney?

Can You Create a Will Without An Attorney?

The short answer is YES. You can create a will without an attorney.

There are dozens of templates you can download and use to draw up your estate plan. It’s fast, easy, and convenient.

But the real question isn’t IF you can create your own will. It’s if you SHOULD.

Your will is fundamental to your financial legacy. It’s a legal document that must meet specific qualifications and standards because it’s going to control how your loved ones will receive the wealth and assets you’ve worked so hard to amass.

Any oversight with your will could result in the mishandling of your estate. Your assets could end up in the hands of the wrong people. At the very least, it could cause a legal headache for your family.

If your estate is simple, you might be able to navigate those challenges alone.

But you’ll most likely need an attorney if you…

  • Own a family-run business you want to pass to your children.
  • Plan to pass your wealth to a step-child or step-children.
  • Want to disinherit someone in your existing will.

In other words, you should hire a lawyer if your will is anything more than boilerplate. Otherwise, the risk and consequences of errors become too high.

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September 22, 2021

Discover Your Retirement Number

Discover Your Retirement Number

How much money will you need to retire?

It’s a question that has no single answer. Everyone has different financial needs that arise from their specific situation.

But there are methods and tools you can use to discover your personal retirement number. In this article we show three ways to estimate how much you need to save for a comfortable retirement.

Use an online retirement calculator. The beauty of retirement calculators is that they’re simple. Input some data about your savings, and you’ll get an estimate of how much you’ll have in retirement. They’ll let you know if you’re on target for your retirement goals.

Always take retirement calculators with a grain of salt. They’re each built on different algorithms and assumptions, so expect a range of results.

They also don’t know you personally, or your situation. You may have specific needs and plans that they can’t take into account.

Here are a few retirement calculators you can try…

The 4% Rule. This is the tried and true strategy for discovering your retirement number. It takes a little math, so grab your calculator!

First, let’s assume your income is $60,000 per year.

Next, let’s say that your annual retirement income must be 80% of your current annual income. So that’s $48,000.

Now, divide that by 4%…

$48,000 ÷ 0.04 = $1,200,000

Using the 4% Rule, you would need to have saved $1,200,000 to retire on 80% of your current income ($1,200,000 ÷ $48,000 = 25 years).

The Income Scale. This strategy, recommended by Fidelity, is more of a rule of thumb.¹

It aims for you to save 10x your annual income by age 67. It provides benchmarks along the way…

-1x by 30 -3x by 40 -6x by 50 -8x by 60

The only issue with this strategy is that 10x your income may not be enough for a comfortable retirement. For instance, a family earning $60,000 per year would only have $600,000 saved!

Each of these tools will help you estimate your retirement number. But the best way to discover your true number is to meet with a licensed and qualified financial professional. They can help you consider all the variables that may impact your retirement, and how to prepare.

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August 25, 2021

3 Saving Strategies For College

3 Saving Strategies For College

In this day and age, it seems like college tuition is skyrocketing.

Students and parents are increasingly reliant on loans to cover the cost of higher education, often with devastating long-term results.¹

In this article we’ll cover three saving strategies to help you cover the cost of college without resorting to burdensome debt.

Strategy #1: Use “High-Yield” savings accounts. This strategy is simple—stash a portion of your income each month into a savings account. Then, when the time comes, use what you’ve saved to cover the costs of tuition.

Unfortunately, this strategy is riddled with shortcomings. The interest rates on “high yield” savings accounts are astonishingly low—you’d be hard pressed to find one at 1%.²

Even if you did, it wouldn’t be nearly enough. For example, if you had $3,000 saved for college in a savings account earning 1% interest per year, it would only grow to about $3,100 after four years—not enough to cover a whole semester’s tuition!

Even worse, inflation might increase the cost of tuition at a pace your savings couldn’t keep up with. Your money would actually lose value instead of gain it!

Fortunately, high-yield interest accounts are far from your only option…

Strategy #2: Consider traditional wealth building vehicles. That means mutual funds, Roth IRAs, savings bonds, indexed universal life insurance, and more.

The growth rates on these products are typically significantly higher than what you’d find in a high-yield savings account. You might even find products which allow for tax-free growth (the Roth IRA and IUL, for example).

But, typically, these vehicles have two critical weaknesses…

  1. They’re often designed for retirement. That means you’ll face fees and taxes if you tap into them before a certain age.

  2. They’re often subject to losses. A market upheaval could seriously impact your college savings.

Note that none of these vehicles are identical. They all have strengths and weaknesses. Consult with a licensed and qualified financial professional before you begin saving for college with any of these tools.

Strategy #3: Use education-specific saving vehicles. The classic example of these is the 529 plan.

The 529 is specifically designed for the purpose of saving and paying for education. That’s why it offers…

  • Tax advantages
  • Potential for compounding growth
  • Unlimited contributions

It’s a powerful tool for growing the wealth needed to help cover the rising costs of college.

The caveat with the 529 is that it’s subject to losses. It’s also very narrow in its usefulness—if your child decides not to pursue higher education, you’ll face a penalty to use the funds for something non-education related.

So which strategy should you choose? That’s something you and your financial professional will need to discuss. They can help you evaluate your current situation, your goals, and which strategy will help you close the gap between the two!

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Market performance is based on many factors and cannot be predicted. This article is for informational purposes only and is not intended to promote any certain products, plans, or strategies for saving and/or investing that may be available to you. Any examples used in this article are hypothetical. Before investing or enacting a savings or retirement strategy, seek the advice of a licensed and qualified financial professional, accountant, and/or tax expert to discuss your options.


¹ “Student Loan Debt: 2020 Statistics and Outlook,” Daniel Kurt, Investopedia, Jul 27, 2021, https://www.investopedia.com/student-loan-debt-2019-statistics-and-outlook-4772007

² “Best high-yield savings accounts in August 2021,” Matthew Goldberg, Bankrate, Aug 25, 2021, https://www.bankrate.com/banking/savings/best-high-yield-interests-savings-accounts/

August 23, 2021

Financial Essentials for Retiring Baby Boomers

Financial Essentials for Retiring Baby Boomers

Are Baby Boomers out of time for retirement planning?

At first glance, it might seem like they are. They’re currently aged 57-75, meaning a good portion have already retired!¹

And those who are still working have only a few precious years to create their retirement nest eggs and get their finances in order.

Perhaps you’re in that boat—or at least know someone who is. If so, this article is for you. It’s about some essential strategies retiring Baby Boomers can leverage to help create the futures they desire.

Eliminate your debt. The first step is getting rid of your debt. After all, it’s not optional in retirement—you’ll need every penny to fund the lifestyle you want.

That means two things…

  1. Don’t take on any new debt. No new houses, boats, cars, or credit card funded toys.
  2. Use a debt snowball (or avalanche) to eliminate existing debts.

That means focusing all of your financial resources on a single debt at a time, knocking out either the smallest balance or highest interest debt.

Eliminating, or at least reducing, your debt can help create financial headroom for you in retirement. It frees up more cash flow for you to spend on your lifestyle and on preparing for potential emergencies.

Maximize social security benefits. Delay Social Security as long as possible (or until age 70). Delaying Social Security increases your monthly payments, so it’s a simple way to maximize your benefit.

For example, if you started collecting Social Security at age 66, you would be entitled to 100% of your social security benefit. At 67, it increases to 108%, and by 70 it increases 132%. That can make a huge difference towards living your dream retirement lifestyle.

Check out the Social Security Administration’s website to learn more.

Protect your wealth and health with long-term care (LTC) coverage. The next step is to protect your assets from the burden of LTC. It’s a challenge 7 out of 10 retirees will have to overcome, and it can be costly—without insurance, it can cost anywhere between $20,000 and $100,000. That’s a significant chunk of your retirement wealth!²

The standard strategy for covering the cost of LTC is LTC insurance. It pays for expenses like nursing homes, caretakers, and adult daycares.

But it can be pricey, especially as you grow older—a couple, age 55, can expect to pay $2,080 annually combined, while a 65 year old couple will pay closer to $3,750.³

The takeaway? If you don’t have LTC coverage, get it ASAP. The longer you wait, the more cost—and risk—you potentially expose yourself to.

Pro-tip: If you have a permanent life insurance policy, you may be able to add a LTC rider to your coverage. Meet with a licensed and qualified financial professional to see if this option is available for you!

Review your income potential with a financial professional. The final step on your path to retirement is reviewing your income options. You want to strike a balance between maximizing your sources of cash flow and keeping control over your retirement plan.

Many retirees lean heavily on two primary income opportunities: Social security and withdrawals from their retirement savings accounts.

And that’s where a financial professional can help.

They can help you review your current retirement lifestyle goals, savings, and potential income. If there’s a gap, they can help come up with strategies to close it.

You’ve worked hard and made sacrifices—now it’s time to reap the rewards of all that elbow grease. Which of the essentials in this article do you need to tackle first?

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¹ “Boomers, Gen X, Gen Y, Gen Z, and Gen A Explained,” Kasasa, Jul 6, 2021, https://www.kasasa.com/articles/generations/gen-x-gen-y-gen-z

²”Long-term care insurance cost: Everything you need to know,” MarketWatch, Feb 19, 2021, https://www.marketwatch.com/story/long-term-care-insurance-cost-everything-you-need-to-know-01613767329

³ “Long-Term Care Insurance Facts - Data - Statistics - 2021 Reports,” American Association for Long-Term Care Insurance, https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2021.php

August 18, 2021

The Non-Financial Investment That Can Dictate Your Success

The Non-Financial Investment That Can Dictate Your Success

Some factors that influence your success are out of your control.

You can’t change your height or birthday or birth order or a dozen tiny variables which can all impact your success.¹

But there’s one factor that radically impacts your financial and personal success that you can control. And it impacts everyone, regardless of their background or income…

That’s right. Relationships are critical predictors of your life success in every category.

A Harvard study followed hundreds of students and inner-city boys from the 1930s to the present. The emotional, financial, and physical well-being of the subjects were regularly examined for almost 80 years.

The results were stunning…

Loneliness was as deadly as smoking and drinking Stable relationships protect from memory loss² Men with warm relationships earned $150,000 annually on average than men without³

The takeaway is clear. The healthier your relationships, the greater your potential for achieving success.

Practically, that has implications…

1. Prioritize your family over your career. Don’t think that you’re doing your family and finances a favor by working long and stressful hours. Invest in the ones you love, and you might be surprised by the long-term career benefits.

2. Examine roadblocks to creating healthy relationships. High-quality friendships and marriages don’t fall into your lap. If you have a track record of complicated and dramatic relationships, seek to understand the cause. You may need to enlist the help of a mental health professional. It’s well worth the investment!

3. Seek mentors. They’re a source of perspective, encouragement, and can help to overcome your weaknesses. And unlike friends (who might be less objective), mentors can be completely devoted to helping you meet your goals.

Relationships aren’t always easy. Like your career, they require mindfulness, intention, and effort to succeed. But they’re well worth the time, attention, and sacrifice.

If you haven’t recently, take stock of your life satisfaction and relationship quality. Then, talk with a loved one or friend about steps you can take to make improvements going forward. It might just change your life.

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¹ “26 surprising things that can make you successful,” Shana Lebowitz and Rachel Gillett, Business Insider, Jul 20, 2018, https://www.businessinsider.com/surprising-things-that-affect-success-2017-1

² “Good genes are nice, but joy is better,” Liz Mineo, The Harvard Gazzette, Apr 11, 2017, https://news.harvard.edu/gazette/story/2017/04/over-nearly-80-years-harvard-study-has-been-showing-how-to-live-a-healthy-and-happy-life/

³ “Love and Money: The Surprising Wealth Predictor,” Partners 4 Prosperity, Nov 17, 2017, https://partners4prosperity.com/love-and-money/

August 9, 2021

Why Optimism Pays Off

Why Optimism Pays Off

Optimism is the fuel that keeps us going.

It’s what makes life worth living and pushes us to reach for our goals, no matter how difficult they may be. And it turns out optimism has a financial upside as well, according to an article from Harvard Business Review.

In fact, people who are optimistic make more money than those who are pessimistic or neutral about their future prospects, and they are more likely to get promoted. They also tend to have healthier money habits—they’re more likely to save for large purchases and have emergency funds than pessimists.¹

Why? Because optimists are better equipped to handle and adapt to challenges. They’re more likely to ask for, accept, and use help. As the article points out, it’s because they expect good things to happen. Even better, they believe in the power of their actions.

That belief is what propels them to take charge of their lives and seek out opportunities. It’s the same belief that enables a major league baseball player to want to win the game when he’s down two strikes in the bottom of the ninth, or an author to hold his book in his hands after countless rejections from publishers.

So if you’re interested in making an investment in yourself and your future, cultivate a mindset of optimism. It will help you reach your goals. And it’s especially important when it comes to your money, where optimism can help you break free of mindset barriers that prevent you from building a more secure financial future.

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¹ “The Financial Upside of Being an Optimist,” Michelle Gielan, Harvard Business Review, Mar 12, 2019, https://hbr.org/2019/03/the-financial-upside-of-being-an-optimist

August 4, 2021

Should You Pay Off Your Mortgage Early?

Should You Pay Off Your Mortgage Early?

On the surface, paying off your mortgage seems like a no-brainer.

It’s become a staple of personal finance advice that everyone should eliminate their mortgage ASAP.

But here’s the truth—there are some drawbacks to eliminating your mortgage quickly. Read on for the pros and cons of paying off your mortgage early.

The pros of paying off your mortgage early. Your mortgage can be a serious drain on your financial resources. Those monthly payments can hamper your ability to save, build wealth, and enjoy the lifestyle you desire. It makes sense that the sooner you eliminate those payments, the sooner you’ll have the cash flow to make your dreams a reality.

You might also save a significant amount of money in interest by paying off your mortgage early. The less time your mortgage accrues interest, the less you’ll pay overall.

Perhaps most importantly, eliminating your mortgage creates peace of mind. So long as you’re paying off a mortgage, you’ll always run the risk of defaulting and losing your home. Owning your house outright can greatly reduce this danger and the stress that comes with it.

The cons of paying off your mortgage early. But eliminating your mortgage is not necessarily an unalloyed good. There are a few downsides to consider, too.

What if, instead of devoting your financial resources towards your mortgage, you saved them at a high interest rate?

There’s a chance you would actually walk away with more wealth. That’s because the sooner your money starts compounding interest, the greater potential it has to grow.

When you should and shouldn’t pay off your mortgage early. Paying off your mortgage early might be viable if your mortgage makes up a small fraction of your monthly expenses. So long as it doesn’t interfere with your other savings goals.

However, always consult with a financial advisor before you make this decision. They can determine if eliminating your mortgage quickly will derail your wealth building strategy!

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August 2, 2021

5 Warning Signs That You Need a Financial Professional

5 Warning Signs That You Need a Financial Professional

With the cost of living on the rise, many people are struggling to make ends meet.

It’s important to know when you’re in over your head and need some help from a professional. Here are five warning signs that could indicate it’s time for some financial advice.

You’re not sure if you can afford to retire. The first warning sign that you may need financial advice is when you’re not sure if you can afford to retire when you want to. Retirement is the centerpiece of many financial strategies, so if you feel like you’re short here, it’s a serious red flag.

A financial professional can help you…

  • Determine how much wealth you’ll need to retire comfortably
  • Create a plan that can help you reach your goal

So if there’s any uncertainty about your financial future, schedule a meeting ASAP!

You have a lot of credit card debt and don’t know how to pay it off. When credit card balances start piling up, it can quickly become overwhelming. If left unchecked, your credit card debt can drain your cash flow and slow your progress towards financial goals. A financial professional can help you figure out a strategy to attack debt to help mitigate damage to your finances and avoid potentially lowering your credit score.

You struggle to afford necessities. Sometimes, life throws us curveballs and our budget gets stretched to the max. If you’re struggling to pay rent or put food on the table, it’s time to consider getting some help. Most people are at their best when they’re working towards goals. That’s exactly what a financial professional is here to offer—guidance so you can be the best version of yourself and accomplish your dreams.

You’ve been living paycheck-to-paycheck. If you have a lot of expenses but no savings, it’s likely that your financial strategy is lacking one or more key components. That’s because living paycheck-to-paycheck hampers your ability to build wealth—all of your cash is going straight from your wallet into someone else’s pocket. A financial professional can help you discover areas to dial back your spending and start saving.

You feel like your savings are shrinking, not growing. Have you started to rely on your retirement savings, today? If so, contact a financial professional immediately. They can help you discover the roots of your financial condition and put a financial strategy in place to help protect your nest egg for the future.

It’s important that you know when you need help. These five warning signs could indicate your financial situation is in dire straits and requires professional help. If any one of these apply to you or if you’re just not sure if they do, contact me today!

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July 28, 2021

The Difference 15 Years Can Make

The Difference 15 Years Can Make

Choosing between a 15-year and 30-year mortgage is one of the most important financial decisions you’ll make.

The answer which is better for you depends on your personal situation, but there are definite pros and cons to each. In this article we’ll take a look at both types of mortgages and see what they offer along with their drawbacks so that you can make a more informed decision about which mortgage works best for you.

The 15-Year Mortgage. As the name suggests, a 15-year mortgage has payments spread over 15 years, as opposed to 30 years for the standard loan. That has two practical implications…

  • Your monthly payments will probably be higher
  • The total cost of the home will likely be lower

Those might seem contradictory. But the math is simple.

Let’s say your monthly payment for a 15-year mortgage is $1,000, while for a 30-year mortgage your payment is $750.

For the 15-year mortgage, you’ll pay $180,000 over the lifetime of your loan. For the 30-year loan, that number is $270,000, a $90,000 difference! So if you can afford the higher monthly payments, a 15-year mortgage might save you a substantial amount of cash over the long-term.

The 30-Year Mortgage. But make no mistake—the 30-year mortgage has distinct advantages of its own. How? It often offers lower monthly payments, which frees up your cash flow. That extra money can go towards saving, financial protection, and building wealth.

Not every family will have the financial resources to afford potentially higher monthly payments with a 15-year mortgage. Depending on your financial situation, a 30-year mortgage may be a better option.

The bottom line? The mortgage you choose can impact your financial security now and in the future. That’s why it’s best to consult with a financial professional before buying a home. They’ll have the knowledge you need to make an informed decision that aligns with your long-term goals.

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This article is for informational purposes only and is not intended to promote any certain products, plans, or strategies that may be available to you. Any examples used in this article are hypothetical. Before taking out any loan or enacting a funding strategy, seek the advice of a licensed and qualified financial professional, accountant, and/or tax expert to discuss your options.

July 26, 2021

6 Viable Passive Income Sources

6 Viable Passive Income Sources

The idea of having a passive income is something that many people dream about.

That’s because it means you can earn money above and beyond physical hours of work that you might put in! And there are plenty of ways to establish a passive income. In this article, we’ll discuss 6 different sources of passive income and how you can take advantage of each.

1. Rental income. This could come from renting out a room in your home, a basement, or a property you’ve purchased. The income from your tenants can help cover maintenance costs and provide you with a reliable, consistent source of income. It’s a simple, classic cash flow creator.

But it’s not perfect. Buying properties may require you to borrow money, which can create risk. Furthermore, managing unruly tenants can be time-consuming, taking the “passive” out of passive income.

2. Affiliate marketing. What if you could get paid to sell someone else’s products? It doesn’t get much more passive than that. Affiliate marketing is where you simply place a link to a product on your social media feed, YouTube video, blog, or website. You get a cut of the profit every time that link leads to a sale.

Just know that affiliate marketing works best for those with some measure of online following—more eyes on your affiliate link means more potential clicks!

3. Create ebooks and courses. Online educational content isn’t the purest form of passive income—it requires upfront work to research and create. But once they’re published, they can provide regular extra cash. Just be sure that you’re creating content on a subject matter you’re familiar with!

4. Blogging. Overwhelmed by writing an entire eBook? Start with a blog! It’s a simple way to get your ideas down on (digital) paper AND generate some ad revenue at the same time. Just remember, blogging may have a long lead time before it becomes profitable.

5. Peer-to-peer lending. Investing in loans has been around for ages—and with peer-to-peer platforms like Lending Club or Prosper, investing can be done quickly online. It’s a simple, quick way to earn interest on the fly.

But be warned—putting money into this type of service could be a substantial risk. There’s no guarantee that your creditors will repay their debts, which could leave you out to dry. So while it’s a viable option for passive income, it may not be 100% safe.

6. Start flipping! And I don’t mean doing gymnastics in the park (though that could earn you some cash—maybe). Instead, hit up a local thrift store. If you see a find that catches your eye, check to see how much you could sell it for on eBay or Craigslist. You might be surprised by the price difference! Buying at the thrift store and selling online could result in a serious profit.

This isn’t a fully passive income—it requires some investment and time searching and shopping for items. But it’s far more fun and feasible for most than real estate or writing an eBook.

So what are you waiting for? If you have the skills, time, and patience for it—then go for it! You might be surprised by how much you can earn with minimal effort.

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July 21, 2021

Strategies to Beat Inflation

Strategies to Beat Inflation

Inflation can creep up on you and take your money before you know it.

In this article, we’ll be talking about strategies for beating inflation and protecting yourself from its effects. We’ll start by clearing up what inflation is, then talk about the best ways to protect against it (you’ve got options!).

First, what is inflation? Simply put, inflation is the increase of prices over time. This means that if something is worth $100 today, it will probably cost more than $100 dollars in the future. That means the value of your money will probably decrease over time. $1 million may be all you need to live comfortably today, but it may not get you as far as you’d like during retirement if prices continue to rise.

Inflation primarily impacts cash value and money that sits in low interest bank accounts. Since those assets don’t grow at all—or grow very slowly—inflation can torpedo your purchasing power.

The key, then, is to find assets that grow at the same or a faster pace than inflation. That includes things like physical commodities (oil, grain, etc.) and real estate. While they’re not guaranteed to keep up with inflation, they typically increase in value as prices rise.

Investing in the market follows the same logic—the value of stocks typically rises as inflation increases. Again, it’s not a perfect solution, and stock values aren’t guaranteed to rise in value. But they’re options for those seeking to protect their wealth over the long-term from the slow decay from inflation.

Meet with a licensed and qualified financial professional about inflation hedging strategies. They can help you identify vehicles and accounts that may grow at the same (or faster) pace as prices.

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Market performance is based on many factors and cannot be predicted. This article is for informational purposes only and is not intended to promote any certain products, plans, or strategies for saving and/or investing that may be available to you. Any examples used in this article are hypothetical. Before investing or enacting a savings or retirement strategy, seek the advice of a licensed and qualified financial professional, accountant, and/or tax expert to discuss your options.

June 28, 2021

Habits of Successful People

Habits of Successful People

Successful people come from all types of backgrounds.

But did you know there are certain habits they tend to have in common? What’s better yet, they’re mostly practices that don’t require a huge budget to start doing. Here are three concrete ways that you can imitate the wealthy—starting today!

Wake up early (but also get enough sleep) <br> Let’s establish right away that most people shouldn’t wake up at four in the morning if you’re going to bed at midnight. Lack of sleep can exacerbate or cause dozens of health and mental issues ranging from obesity to depression (1). That’s the exact opposite of what rising with the sun is supposed to do!

The primary perk of going to bed early and waking up early is that it helps give you control of your day. You’re not simply rolling out of bed forty-five minutes before work and coming home too tired to do anything useful. Instead, you get to devote your most productive hours to something that you care about, whether that’s meditating, working on a passion project, or exercising. Speaking of which…

Exercise <br> Exercise is something that the successful tend to prioritize. One survey found that 76 percent of the wealthy devoted 30 minutes or more a day to some kind of aerobic exercise (2). It seems obvious, but working out doesn’t just improve physical health; it can help ward off depression and increase mental sharpness (3). It’s no wonder so many successful people make time to exercise.

Read <br> Almost 9 out of 10 wealthy people surveyed said they devote thirty minutes a day to reading. Why? It turns out that it can improve mental awareness and helps keep your brain fine-tuned (4). But reading can also be a valuable way of expanding your perspective, learning new ideas, and drawing inspiration from unexpected places.

Some of these habits might seem intimidating. Switching your bedtime back three hours so you can wake up before sunrise is a big commitment, as is working out consistently or reading books if you’re just used to scanning social media. Try starting off small. Get out of bed thirty minutes earlier than usual for a week and see if that makes a difference. One day a week at the gym is much better than zero, and reading a worthwhile article (like this one!) might pique your appetite for more. Whatever your baby step is, keep expanding on it until you’re an early rising, iron-pumping, and well-read machine!

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June 23, 2021

Begin Your Budget With 5 Easy Steps

Begin Your Budget With 5 Easy Steps

A budget is a powerful tool.

No matter how big or small, it gives you the insight to track your money and plan your future. So here’s a beginner’s guide to kick-start your budget and help take control of your paycheck!

Establish simple objectives <br> Come up with at least one simple goal for your budget. It could be anything from saving for retirement to buying a car to paying down student debt. Establishing an objective gives you a goal to shoot for, and helps motivate you to stick to the plan.

Figure out how much you make <br> Now it’s time to figure out how much money you actually make. This might be as easy as looking at your past few paychecks. However, don’t forget to include things like your side hustle, rent from properties, or cash from your online store. Try averaging your total income from the past six months and use that as your starting point for your budget.

Figure out how much you spend <br> Start by splitting your spending into essential (non-discretionary) and unessential (discretionary) spending categories. The first category should cover things like rent, groceries, utilities, and debt payments. Unessential spending would be eating at restaurants, seeing a movie, hobbies, and sporting events.

How much is leftover? <br> Now subtract your total spending from your income. A positive number means you’re making more than you’re spending, giving you a foundation for saving and eventually building wealth. You still might need to cut back in a few areas to meet your goals, but it’s at least a good start.

If you come up negative, you’ll need to slash your spending. Start with your unessential spending and see where you can dial back. If things aren’t looking good, you may need to consider looking for a lower rent apartment, renegotiating loans, or picking up a side hustle.

Be consistent! <br> The worst thing you can do is start a budget and then abandon it. Make no mistake, seeing some out-of-whack numbers on a spreadsheet can be discouraging. But sticking to a budget is key to achieving your goals. Make a habit of reviewing your budget regularly and checking your progress. That alone might be enough motivation to keep it up!

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June 14, 2021

Getting a Degree of Financial Security

Getting a Degree of Financial Security

The financial advantage gap between having a college degree and just having a high school diploma is widening!

As of 2019, the average college graduate earned 75% more than the average high school graduate.¹ When you crunch the numbers, it’s actually a more robust investment than stocks or bonds.

This income difference is making saving for retirement difficult for millennials without a college degree. According to the Young Invincibles’ 2017 ‘Financial Health of Young America’ study, millennial college grads – even with roadblocks like student debt – have saved nearly $21,000 for retirement.² That’s quite a lot more as compared to the amount saved by those with a high school diploma only: under $8,000.

However, a college grad may encounter a different type of retirement savings roadblock than a reduced income – student loan debt. But the numbers show that even with student loan debt, the advantages of having a college degree and a solid financial strategy outweigh the retirement saving power of not having a college degree.

Here’s an issue plaguing both groups: more than two-thirds of all millennial workers surveyed do not have a specific retirement plan in place at all.³

Regardless of your level of education or your level of income, you can save for your retirement – and take steps toward your financial independence. Or maybe even finance a college education for yourself or a loved one down the road.

The first step to making the most of what you do have is meeting with a financial advisor who can help put you on the path to a solid financial strategy. Contact me today. Let’s get your money working for you.

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¹ “College grads earn $30,000 a year more than people with just a high school degree,” Anna Bahney, CNN, Jun 6, 2019, https://www.cnn.com/2019/06/06/success/college-worth-it/index.html

² “Financial Health of Young America: Measuring Generational Declines between Baby Boomers & Millennials,” Tom Allison, Young Invincibles, Jan 2017, http://younginvincibles.org/wp-content/uploads/2017/04/FHYA-Final2017-1-1.pdf

³ “Retirement Plan Access and Participation Across Generations,” Pew, Feb 15, 2017, http://www.pewtrusts.org/en/research-and-analysis/issue-briefs/2017/02/retirement-plan-access-and-participation-across-generations

June 7, 2021

How to Make the Most of Your Life Insurance Policy

How to Make the Most of Your Life Insurance Policy

Your life insurance policy is one of the most important things you’ll buy in your lifetime.

Knowing how to make the most of it will help you sleep better at night and more easily plan for the future. We’re going to cover the aspects of life insurance with a focus on making those numbers work for YOU!

Choose a policy with enough coverage. As a rule of thumb, a life insurance policy should provide a death benefit that’s at least 10X your annual income. Why? Because the benefit can serve as an income replacement for your family if you pass away. A payout above 10X your annual income can provide your family with a generous financial buffer to recover and make a plan for their future. Buying enough coverage helps ensure your policy fulfills its function—to financially protect your family when you pass away.

Choose the right type of insurance. There’s no one-size-fits-all life insurance policy. They each have different strengths and shine in different circumstances.

Term life insurance, for instance, is typically better for families who need protection on a thin budget. That’s because term is often an affordable option for securing a large death benefit.

Permanent life insurance might be better if you’re looking for an investment that grows over time. It’s also a good choice if you need lifelong protection for your spouse and children, but don’t want to be burdened by higher premiums as they age. That makes it particularly attractive to families with permanent dependents or who are interested in wealth-building vehicles.

Choose a policy that fits your budget. Life insurance shouldn’t consume your income. Rather, it should protect your income in case of disaster. Get as much life insurance as your family needs, but don’t add all the bells and whistles if you can’t afford it!

You want a life insurance policy that protects your family, aligns with your goals, and doesn’t break your budget. If you’re not sure what that looks like, meet with a licensed and qualified financial professional. They can help you hammer out goals and find policies that help you meet those goals!

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This article is for informational purposes only and is not intended to promote any certain products, plans, or policies that may be available to you. Any examples used in this article are hypothetical. Before enacting a savings or retirement strategy, or purchasing a life insurance policy, seek the advice of a licensed and qualified financial professional, accountant, and/or tax expert to discuss your options.

May 19, 2021

The Advantages of Survivorship Insurance

The Advantages of Survivorship Insurance

A survivorship policy pays out only after two people pass away.

Why does that matter? For many families, it doesn’t. They need more traditional forms of life insurance that protect income for their spouses and children.

But there are specific situations where survivorship insurance might be critical for your legacy. Read on for the advantages of survivorship insurance!

First, survivorship insurance can be an invaluable tool for estate planning. If one spouse dies, they can pass their assets to their spouse without facing federal estate taxes.¹ Not so for wealth left to future generations! For some couples with substantial assets to pass on to children, survivorship can leave a sizable death benefit that can offset the cost of estate taxes.²

If this strategy appeals to you, reach out to an attorney and a financial professional. You’ll need their help to get your estate in order and navigate your state’s tax system.

Second, survivorship insurance can cover ailing or elderly couples. As a rule of thumb, survivorship insurance is a good option for those who don’t qualify for term or permanent life insurance due to health or age. That’s because the rates are based on two life expectancies, potentially lowering rates and increasing your likelihood of qualifying.³ This is especially useful if the couple has children who are still dependents or will need special care.

In conclusion, survivorship insurance can be a powerful tool for specific people in specific situations. That’s why it’s best to collaborate with legal and financial professionals to make a decision that will be right for you and your family.

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¹ “An act of mutuality: Survivorship insurance,” Shelly Gigante, MassMutual, Mar 30, 2021, https://blog.massmutual.com/post/survivorship-insurance

² “An act of mutuality: Survivorship insurance,” Shelly Gigante, MassMutual, Mar 30, 2021, https://blog.massmutual.com/post/survivorship-insurance

³ “An act of mutuality: Survivorship insurance,” Shelly Gigante, MassMutual, Mar 30, 2021, https://blog.massmutual.com/post/survivorship-insurance

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