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Financial Planning |
Our approach to Financial Planning
The word that best defines our approach to financial planning is balance. We balance investment products with insurance products. We have met people that had so much insurance that there was nothing left for investing. This is shameful! On the other hand, we have met people with quality investments and little to no insurance. This too is shameful!
Our approach to Investments: Safety, Security and Diversification
Three words define our approach to investments; safety, security and diversification.
*Safety, because new investors who loose money usually just give up, and never invest again.
*Security, because without adequate insurance protection a person is simply betting they will have no set backs in life. It is extremely rare to go through life without setbacks.
*Diversification, because it is the one approach that has proven over time to be the best at reducing risk and producing a positive outcome. We take the “crock pot” (slow and steady) not “microwave” (quick but likely to burn) approach. The Microwave approach gave us the “dotcom bubble” and the “real estate bubble.” We prefer slow and steady; in order to avoid what Alan Greenspan called “irrational exuberance.”
Rate of return calculator
It doesn’t mater if you are a young person starting out or a person planning for the retirement years, understanding the power of compounding rate of returns is a must. The following site has a calculator that is very easy to work. http://www.moneychimp.com/calculator/compound_interest_calculator.htm
Financial Questions
Do you give investment advice?
Since I gave up my securities license I have to be careful not to overstep my bounds. I would be happy to share with you some things I have done and point you to others that can help complete the framework around your investments.
What if am buried in debt?
Step one is to get out of debt. This requires a disciplined plan. An outstanding program to start with is the Dave Ramsey Financial Peace course. I have taught the course and it has helped thousands of people turn their financial life around. Check it out: HYPERLINK "http://www.DaveRamsey.com" www.DaveRamsey.com
Where do I find competitive credit cards and bank savings rate?
Each month magazines such as Kiplinger and Money have a page informing readers of the top performing products in the county. They can be reached at www.kiplinger.com. or www.moneymagazines.com.
What should I look for in a Mortgage?
With the current mortgage mess, any loan that is considered unconventional is being protected against by charging a higher interest rate. If you are a first time home buyer it is best to have a conversation with a mortgage broker before you attempt anything. The broker will do an assessment, so you will have a good idea of what you can afford, what you will need for a down payment, and the amount you qualify for. In the end, the broker will give you the parameters for a conventional loan. It is important to understand that fees vary dramatically from broker to broker. The more competitive ones tend to be the larger ones. Because of their volume, they get a type of kickback, which many use to lower the fees. My personal broker is in Redondo Beach at www.loans4less.com. They are a good bargain but by no means the only bargain out there.