With all the turmoil in the market and changes in tax law on the horizon, are you looking for a financial advisor to help you sort all of it out? No, this is not a solicitation. In fact, as financial educators, we often get asked if we provide financial advice directly for individuals and unfortunately, we have to turn them down. First, we don’t provide any financial advice at all in the sense that we don’t make investment recommendations or manage money. Second, we only work with people through employers or credit unions that hire us to provide financial education. It’s unfortunate because Financial Finesse has managed to put together the most impressive team of financial planners I’ve ever worked with. I would be happy to recommend any of them to a friend or family member in need.
I once heard that in order to reach the moon, NASA made over a thousand mid-course corrections. At first I was surprised. If you know where you’re going, why not just set the trajectory and plot the course, like they do on Star Trek?
But then I realized it’s a perfect metaphor for a trap we often fall into.
Over the years, I have encountered a great deal of confusion among the public surrounding Fee-Based vs. Fee-Only advisor compensation.
Fee-Only is pretty straightforward. The client pays the advisor for his/her advice. The fees can take one or more of several forms:
• A flat fee for the services rendered.
• A percentage of the client’s investment assets or in some cases another metric such as net worth.
Additionally the fee can be for one-time or ongoing services. In no case will a Fee-Only advisor receive any compensation from sales commissions, trailing commissions, or any other form of compensation derived from financial product providers.
He found that millionaires aren’t necessarily always in the highest income or highest status professions, but that they tend to live below their income, live in average homes and drive average cars. They appreciate value, but don’t appreciate status symbols.They enjoy what they do, but also enjoy spending time with family, and are usually generous to a fault.
On a post on his blog Stanley talked about one profession in particular that has shown a high rate of millionaires, and in fact being in this profession means that you are ten times more likely to be a millionaire than the average worker.
While it seems to be a simple idea to just make your estate the beneficiary of your IRA, thereby allowing you to make adjustments to your final beneficiaries via your will – there is a problem that will arise if you decide to take this route. Most often this line of thinking is used because there is the assumption that the money will be treated the same via your estate as it would if you specifically named the beneficiaries on the IRA documentation.
The problem is that IRAs are (as we’ve discussed in many other posts) much different from your other assets, with special rules that apply ONLY to IRAs, and of course, those special rules extend beyond the grave.