Discover Your Retirement Number

September 22, 2021

View Article
Lee Duncan

Lee Duncan

President and CEO

1424 North Brown Rd
Suite 200
Lawrenceville, Georgia 30043

Subscribe to get my Email Newsletter

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.

  • Share:


September 20, 2021

The Breakdown: Term vs. Perm

The Breakdown: Term vs. Perm

Navigating the world of life insurance can be a daunting task.

Even more daunting can be figuring out what policy is best for you. Let’s break down the differences between a couple of the more common life insurance policies, so you can focus on an even more daunting task – what your family’s going to have for dinner tonight!

Term Life Insurance. A Term life insurance policy covers an individual for a specific period of time – the most common term lengths being 10, 20, or 30 years. The main advantage of this type of policy is that it generally can cost the consumer less than a permanent insurance plan, because it might be shorter than a permanent policy.

The goal of a term policy is to pay the lowest premiums possible, because by the time the term expires, your family will no longer need the insurance. The primary thing to keep in mind is to choose a term length that covers the years you plan to work prior to retirement. This way, your family members (or beneficiaries) would be taken care of financially if something were to happen to you.

Permanent Life Insurance. Unlike term life insurance, permanent life insurance provides lifelong coverage, as long as you pay your premiums. This insurance policy – which also can be known as “universal” or “whole” – provides coverage for ongoing needs such as caring for family members, a spouse that needs coverage after retirement, or paying off any debts of the deceased.

Another great benefit a perm policy offers is cash accumulation. As premiums are paid over time, the money is allocated to an investment account from which the individual can borrow or withdraw the funds for emergencies, illness, retirement, or other unexpected needs. Because this policy provides lifelong coverage and access to cash in emergencies, most permanent policies are more expensive than term policies.

How Much Does the Average Consumer Need? Unless you have millions of dollars in assets and make over $250,000 a year, most of your insurance coverage needs may be met through a simple term policy. However, if you have a child that needs ongoing care due to illness or disability, if you need coverage for your retirement, or if you anticipate needing to cover emergency expenses, it may be in your best interest to purchase a permanent life insurance policy.

No matter where you are in life, you should consider purchasing some life insurance coverage. Many employers will actually offer this policy as part of their benefits package. If you are lucky enough to work for an employer who does this, take advantage of it, but be sure to examine the policy closely to make sure you’re getting the right amount of coverage. If you don’t work for a company that offers life insurance, don’t worry, you still may be able to get great coverage at a relatively inexpensive rate. Just make sure to do your research, consider your options, and make an informed decision for you and your family.

Now, what’s it going to be? Order a pizza or make breakfast for dinner? Choices, choices…

  • Share:

September 15, 2021

Big Financial Rocks First

Big Financial Rocks First

A teacher walked into her classroom with a clear jar, a bag of rocks, a bucket of sand, and a glass of water. She placed all the large rocks carefully into the jar.

“Who thinks this jar is full?” she asked. Almost half of her students raised their hands. Next, she began to pour sand from the bucket into the jar full of large rocks emptying the entire bucket into the jar.

“Who thinks this jar is full now?” she asked again. Almost all of her students now had their hands up. To her student’s surprise, she emptied the glass of water into the seemingly full jar of rocks and sand.

“What do you think I’m trying to show you?” She inquired.

One eager student answered: “That things may appear full, but there is always room left to put more stuff in.”

The teacher smiled and shook her head.

“Good try, but the point of this illustration is that if I didn’t put in the large rocks first, I would not be able to fit them in afterwards.”

This concept can be applied to the idea of a constant struggle between priorities that are urgent versus those that are important. When you have limited resources, priorities must be in place since there isn’t enough to go around. Take your money, for example. Unless you have an unlimited amount of funds (we’re still trying to find that source), you can’t have an unlimited amount of important financial goals.

Back to the teacher’s illustration. Let’s say the big rocks are your important goals. Things like buying a home, helping your children pay for college, retirement at 60, etc. They’re all important –but not urgent. These things may happen 10, 20, or 30 years from now.

Urgent things are the sand and water. A monthly payment like your mortgage payment or your monthly utility and internet bills. The urgent things must be paid and paid on time. If you don’t pay your mortgage on time… Well, you might end up retiring homeless.

Even though these monthly obligations might be in mind more often than your retirement or your toddler’s freshman year in college, if all you focus on are urgent things, then the important goals fall by the wayside. And in some cases, they stay there long after they can realistically be rescued. Saving up for a down payment for a home, funding a college education, or having enough to retire on is nearly impossible to come up with overnight (still looking for that source of unlimited funds!). In most cases, it takes time and discipline to save up and plan well to achieve these important goals.

What are the big rocks in your life? If you’ve never considered them, spend some time thinking about it. When you have a few in mind, place them in the priority queue of your life. Otherwise, if those important goals are ignored for too long, they might become one of the urgent goals - and perhaps ultimately unrealized if they weren’t put in your plan early on.

  • Share:

September 13, 2021

The Cost of Goodbye

The Cost of Goodbye

The emotional cost of losing a loved one can’t be quantified, and knowing how to say goodbye can’t be taught so much as learned. It can be a long and difficult road for many.

Offsetting the financial aspect of that struggle can be done.¹ Not through gimmicks or escapism, but through a real, tangible solution: Final expense plans.

A traditional funeral can cost up to $10,000. If that number seems a bit outrageous, look at how quickly some of the basic items and services can add up:

  • Cost of the grave site: $1,000
  • Cost to dig the grave: $600
  • Cost of a casket: $2,300
  • Cost of a grave liner/outer burial container: $1,000
  • Cost of a headstone: $1,500

That’s already $6,400… and says nothing of payment of mortician’s services, use of the funeral home, the fee for the funeral director, the cost of flowers, and more details that one never thinks about until they’re in a position where they need to think about it. These costs will vary by geographic location, but one thing you can count on is that the emotional cost you or your loved ones experience later could be compounded with financial cost that could be avoided with a bit of careful preparation now.

In the face of losing someone you love, finances might be the last thing on your mind. With a solid final expense plan, you can keep it that way.

  • Share:


¹ “Funeral Costs: How Much Does an Average Funeral Cost?” Parting, Sep 13, 2020, https://www.parting.com/blog/funeral-costs-how-much-does-an-average-funeral-cost/

September 8, 2021

About To Splurge? Sleep On It

About To Splurge? Sleep On It

Splurging is awesome. At least, it feels awesome.

Shopping unleashes dopamine, the brain chemical that fuels our biological reward system. Dopamine is the reason you crave food, sugar, affection… and splurging.¹

Think about the last time you splurged. Remember the feeling of anticipation when you walked into the store or pulled up the website? That’s the dopamine pushing you towards buying.

It’s also responsible for the rush when you open the box when you get home or try on that knockout dress for the first time.

There’s nothing wrong with indulging those feelings from time to time. But what can you do if you’re craving a shopping spree that your budget can’t handle?

Simple. Sleep on it!

Waiting 24 hours between feeling the urge to spend and going to the store gives you space to think. Do you really need that new gadget? Will that fancy dress make you happy?

After thinking it over, you may still want to splurge. That’s fine (as long as it’s within your financial strategy)! The key is that when you give yourself time to think things over, you won’t be as likely to make an impulse buy. Instead, you’re more likely to make a calculated, well-reasoned decision. And delaying your gratification will make it all the more rewarding when you walk out of the store.

Keep a close eye on your splurging habits. If you feel like your spending is out of control, you may need to seek a mental health or financial professional. There might be more to your shopping habits than meets the eye!

  • Share:


¹ “Why Retail “Therapy” Makes You Feel Happier,” Cleveland Clinic Jan 21, 2021, https://health.clevelandclinic.org/retail-therapy-shopping-compulsion/

September 1, 2021

Homemakers Need Life Insurance, Too

Homemakers Need Life Insurance, Too

Are you a stay-at-home parent? Even if you’re not contributing monetarily to your family’s income, you still need life insurance.

That’s because you offer support to your family that’s as valuable as the main breadwinner.

Let’s break it down…

The goal of life insurance is to replace income. If the main income earner dies, the death benefit can replace their salary. It offers financial headroom for grieving families to help put their lives back together.

However, a stay-at-home parent provides services for their family that are just as important and can be expensive to replace.

For instance, what if you provide childcare for your family? Replacing your services could cost $8,355 yearly per child.¹

Then factor in other potential costs like…

  • Education
  • House cleaning
  • Driving kids to events
  • Running errands
  • Managing home repairs and yard maintenance
  • Planning meals, shopping, and cooking

And so much more! These costs are simply a snapshot of how much life insurance a homemaker could need. It should be enough to cover expenses to replace all the work you do around the house and on your family’s behalf.

If you’re not sure what that number is, contact me. We can sit down, review your family’s situation, and draw up a strategy to help provide for your loved ones, no matter what.

  • Share:


“Parents spend an average of $8,355 per child to secure year-round child care,” Megan Leonhardt, CNBC, May 19 2021, https://www.cnbc.com/2021/05/19/what-parents-spend-annually-on-child-care-costs-in-2021.html

August 30, 2021

What You May Not Know About Life Insurance

What You May Not Know About Life Insurance

Life insurance has one main job—helping to protect your family’s financial security in the event of your death.

And it does that by providing your loved ones with a one-time payout that replaces your income.

Your family depends on you to provide. It’s how they afford necessities like food and shelter. It’s also how you support them with their lifestyle.

But if you pass away, your income dries up. Your family would have to face their financial responsibilities with fewer resources.

That’s where life insurance helps. If you pass away, your family receives a benefit that can help ease the financial pressure.

Instead of a yearly salary, your loved ones now receive a once-in-a-lifetime salary.

That’s why it’s common to base the size of your life insurance policy on your income. Rule of thumb, you want a policy that’s 10X your annual income.

So if you currently earn $60,000, you probably would need a $600,000 policy.

There are factors besides income to consider. For instance, your family may need more protection if you’re paying off a mortgage.

In conclusion, if anyone you love depends on your income, you need life insurance. It’s a way to provide for your family, even if you’ve passed away.

  • Share:


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.

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!

  • Share:

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?

  • Share:


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.

  • Share:


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 16, 2021

Financial Moves to Improve Your Mental Health

Financial Moves to Improve Your Mental Health

Can wise money moves help improve your mental health, decrease your stress, and boost your peace of mind? Absolutely.

It’s easy to see why. A lot of stress comes from worrying about the future, as well as problems that might seem small but are stressful in practice (such as getting stuck with a $400 car repair bill because your brakes went out).

How much better would it feel if you could stop stressing about money? How much less anxiety would you experience if your retirement savings were on track? And how much more secure would you feel, knowing that should an emergency arise, you have the resources to handle it?

With that end in mind, here are simple financial moves you can make to help improve your mental health!

Create a financial vision statement. Whether you use a financial professional or do it on your own, creating a financial vision statement is the first step to improving your quality of life with personal finance.

What’s a “vision statement?” It’s a one or two sentence description of where you want your money to take you in the future.

Why does it help your mental health? For starters, it gives you a goal to strive towards, and goals tend to increase mental resilience.¹

It also may help reduce uncertainty and ambiguity about the future. When your financial vision statement is clear and complete, your next actions may become clear and obvious.

But while it may seem simple on paper, it can feel overwhelming in practice. Try this process to help take the stress out of creating your vision statement…

Create a list of things you value. That could be family, adventure, stability, comfort, and more.

Write out what a future full of your values would look like. This gives you a more concrete—and inspiring—vision of your goals.

Describe how money can make your vision a reality. This final piece is your financial vision statement. It’s how much money you’ll need to enjoy the lifestyle you want in the future.

Save up an emergency fund. Juggling a paycheck, credit card bills, student loans and other debt repayment, rent, and groceries is stressful.

Unexpected—and expensive—emergencies can make things even harder.

But being prepared helps! Having an emergency fund means that when something goes wrong, you’ll have cash on hand to help cover it.

In general, aim to save 3-6 months’ worth of income and keep it easily accessible. Then, when an emergency strikes, simply reach into your emergency fund to help cover the costs.

Will it totally eliminate the stress of emergencies? Probably not. But it can mitigate the financial anxiety that can loom over you if you’re not prepared.

Meet with a financial professional. Nothing reduces your stress levels quite like knowing your finances are in good hands. That’s where a licensed and qualified financial professional can help.

They can help you develop strategies for reaching your goals, identify obstacles early on, and refine your financial vision statement.

Plus, having someone you can talk to about money can make your finances far less intimidating and stressful. Find a professional who you’re comfortable with and who’s knowledgeable, and start cultivating your relationship. It may be one of the best investments you make!

If you’re feeling stressed about money, know that you’re not alone. And the good news is that you can do something about it. Try these simple steps, and see how you feel!

  • Share:


¹ “Goal setting,” healthdirect, https://www.healthdirect.gov.au/goal-setting

August 11, 2021

Saving Money With Credit Cards: The Ultimate Guide

Saving Money With Credit Cards: The Ultimate Guide

Credit cards are one of the most useful tools for saving money.

That may seem counter-intuitive. In fact, if you’re struggling with credit card debt, it might seem like an all out fantasy!

But if you have your credit cards under control, they can offer significant opportunities to save money.

Here’s your strategy guide for saving money with credit cards.

Eliminate your credit card debt. The simple truth is that credit card debt can derail your financial strategy. No matter how advantageous credit card rewards seem, they won’t offset the high interest rates that most cards feature.

So before you start leveraging the benefits a card can offer, take steps to eliminate your credit card debt completely.

The two most common strategies are the “debt snowball” and the “debt avalanche.”

Debt Snowball: Make only minimum payments on your other cards, and focus all of your financial firepower on your smallest balance. Once that’s gone, move on to the next smallest. Repeat until your debt is gone.

Debt Avalanche: Make only minimum payments on your other cards, and focus all of your financial firepower on the balance with the highest interest rate. Once that’s gone, move on to the next highest. Repeat until your debt is gone.

Another strategy is opening a new card with a 0% introductory APR. Then, use your new card to pay off your old card with no interest. This is called a balance transfer, and there are specialized cards with benefits tailored for this strategy. Check out this Nerdwallet article for a few options! (Note: Make sure you understand any fees that may be charged for a transfer.)

Build your credit score. It’s no joke—the higher your credit score, the greater the rewards you may earn. To help maximize your savings with a card, start building your credit score ASAP.

A simple step towards increasing your score is automating all of your loan payments. You can do this with your credit card, mortgages, and car loans. Once your credit crosses a certain threshold, look for cards with greater benefits. You might be surprised by the difference your score makes!

Choose benefits that align with your lifestyle. DO NOT get a travel card and then plan four international vacations to “maximize your benefits.”

Instead, choose a card that rewards you for your current habits, behaviors, and the way you live your life. It’s a chance to get something back for going about your daily routine!

Travel frequently for work or lifestyle? Consider a card that rewards you for flying or that waives foreign transaction fees.

Loyal to certain brands and stores? Look for cards that offer points for shopping with your favorites.

Above all, remember that credit cards ARE NOT FREE MONEY. The more disciplined you are with your credit card usage, the more you stand to benefit from the rewards.

Ask a financial professional about how you can leverage credit cards for your advantage. They can help you understand your financial position and develop a strategy to maximize your benefits.

  • Share:

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.

  • Share:


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!

  • Share:

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!

  • Share:

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.

  • Share:


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.

  • Share:

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.

  • Share:


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.

July 19, 2021

Top 6 Tips for Cheaper Travel

Top 6 Tips for Cheaper Travel

It seems like there is light at the end of the tunnel for travelers who are itching to see the world.

And with travel restrictions seeming to be on the edge of lifting, they may have the opportunity to explore again.

But before you start planning your international adventures, here are 6 tips for cheaper travel.

1. Avoid expensive tourist spots. Paris is lovely this time of year. So are London, Dubai, and Tokyo. They’re also outrageously expensive to stay, eat, and play in. Fortunately, there are many other locations that are just as loaded with culture and fun things to do at a fraction of the cost. Central and South America, Southeast Asia, and Eastern Europe all feature affordable cities, lovely landscapes, and interesting attractions that go toe-to-toe with classic destinations.

2. Book flights well in advance. Usually the further out you can book, the better. Though some flight sites offer deals on last-minute fares, they’re not always that great of a bargain. It’s typically cheaper to buy tickets a few months in advance. The same logic works for lodging. Speaking of which…

3. Consider staying in a hostel. They’re a great opportunity to meet fellow travelers in a foreign land. They’re often cheaper than an Airbnb or a hotel, and sometimes offer tours. Just do your research in advance—not all hostels are equal as far as cleanliness and safety.

4. Cut transportation costs. Need to travel from city to city? Try taking the bus. It’s not glamorous, but it might be a more cost effective way to get around. While you’re in town, try walking as much as possible and getting public transit when needed. Save your money and spend it on something else like souvenirs or trying a meal you’ve never had before.

5. Explore opportunities to work and travel. You may be surprised by how many programs pay you to visit exciting new places. Whether you’re teaching English in Asia and South America or working as a tour guide in Sweden, opportunities abound. You may earn enough to offset some of your traveling expenses.

6. Eat local, prep at home. Eating out for breakfast, lunch, and dinner in a tourist destination is a surefire way to quickly deplete your travel budget. Instead, explore local markets to purchase ingredients that you can store or prepare where you’re staying, like protein bars or sandwiches. Those should cover your first two meals of the day. Then splurge on evening fare with local cuisine at an interesting restaurant!

Seeing the world doesn’t have to break the bank. Use these tips to plan your adventure, send me a postcard, and let me know if they make a difference for your budget!

  • Share:

July 14, 2021

Is Refinancing Worth It?

Is Refinancing Worth It?

What do you think of when you hear the word “refinancing?”

If you’re like most people, your first thought might be that it has something to do with a mortgage. And you’re not wrong! However, refinancing can apply to many different types and forms of loans. In this article we will explore what refinancing is, how it works, and when it can work to your advantage.

What is refinancing?

Refinancing is the process of transferring all or part of an existing loan from one loan to another. This is done in order to achieve a…

  • Lower interest rate
  • Lower monthly payments
  • More favorable repayment period
  • Or all of the above

Let’s consider an example. Say you have a $10,000 loan with a 5% interest rate and a 10-year term. You’ll pay $106 every month to service the debt, and over $12,000 in total once interest is included.

But you think you can do better! You find someone else who’s willing to loan you $10,000 at a 2.5% interest rate over a 10-year term. You’d save more than $1,000 in interest and pay less every month. That’s a far better deal.

So, you would borrow money from your new creditor and use that sum to eliminate your existing loan. You’ve used another loan to decrease your interest burden and increase your cash flow. That’s the power of refinancing in a nutshell. It’s often worth the effort if you can decrease your interest rate without increasing your term.

But it may not be a silver bullet for your debt.

Refinancing only works if you can score a new loan with a more favorable contract. There may be times when interest rates are high and finding lower rates simply isn’t possible. Even then, a lower interest rate may not offset the costs of a longer loan term.

That’s why it’s always best to work with a financial professional before you refinance any loan. Their expertise can help you determine whether refinancing will help or hinder your progress towards your financial goals.

  • Share:


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 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.

Subscribe to get my Email Newsletter