Your Wealth Puzzle » Other

Mark Zuckerberg Wealth

tgc — Sun, 19 Jun 2011 05:51:20 +0000

We all known how rich Mark Zuckerberg of Facebook is, but this infographic demonstrates what he could buy with all his money if he wanted to. It’s good to see a young, rich man not care about buying extravaganza items such as the items in the infographic as Mark is known to live a comfortable lifestyle without the fancy cars, houses and vacations.

Use A Financial Professional|Keep More Of Your Money

yourwealthpuzzle — Thu, 10 Feb 2011 17:01:12 +0000

What does the financial services industry offer most investors? They offer help. Help with saving money, help with financial direction and commitment.

The main goal of a financial service professional should be YOU and YOUR financial goals.

Financial professionals should help you find ways to keep more of your money in your pocket. If they are not doing that for you, fire them and find a financial professional who knows how to help you keep more your your money.

Financial services are offered by different financial segments in the market place. Your 401k plan representative, your insurance agent, your banker and your accountant can all offer you different financial services depending upon their specialty.

Lets review each financial professional separately so that you can see the value of each.

What Has Your Financial Services Professional Done For You Lately?

Your 401k Plan Representative.

The 401k plan representative at your work place specializes in retirement planning.
That representative can help you make the best investment selections in your 401k retirement plan.
The investment selections should be within your risk zone and time horizon.
Before the 401k plan representative advises you on your investment selection, they should help you determine your risk tolerance zone, which is your comfort level with risk.
The representative should also determine your time horizon, which is the amount of time your money will be invested before you have to use it.
Your investment representative can tell you if you are saving enough for retirement based on your age, risk tolerance and time line.
They should be helping you make good financial decisions centered around your retirement.

Your Insurance Agent

Your insurance agent should always be reviewing your insurance policies.
The agent should review your auto insurance and home insurance to make sure you are getting all the discounts you can in order to get the best premiums possible.
When they see a way to help you lower your premiums without sacrificing insurance coverage, they should notify you.
The agent can work with you to find ways to change your insurance coverages so you can save money on premiums.
By saving money on insurance premiums you put more money in your pocket.
Maybe they will advise you to increase your deductibles to save money.
Maybe you can drop certain coverages that may not apply anymore based on the age of your auto or home.
Have your insurance professional working for you by advising you on the best coverages for the best premiums.

Your Banking Institution

Your banker can provide financial services by discussing with you additional ways to save money.
Can they lower your interest rates on your loans?
Will the interest rates on CD’s be changing, if so, they should notify you ahead of time.
Maybe your banker has different products that may fit your personal financial needs that you were not even aware of.
Those little notifications of change can make a difference in whether you save money or not sometimes.

Your Accountant.

Your accountant should be advising you on ways to save on taxes.
Accountants know tax law; that’s their job.
A good accountant can tell you ways to save money that you may not have thought of.
The goal of your accounting professional is to help you have more of your money staying in your pocket; that’s their job too.

All of those financial services are available in the market place today. Each of those financial professionals offer a different financial specialty. By knowing the differences you can seek their help with better understanding of what they offer.

Always remind them that the reason you work with them is so that they can help you to keep more of your money in your pocket.

Improve Credit Score|Attain Financial Health

yourwealthpuzzle — Tue, 11 Jan 2011 17:02:39 +0000

Do you want financial health? Do you know what that means? Do you know how to get it?

One way to help you become financially healthy is to use good financial services.

With increasing life spans, rising medical costs and a volatile stock market you need good financial services just to keep pace with everything. When the economy is turned upside down, financial health seems hard to get; but it’s not. You just have to know what you are looking for and where to find it.

Improving your credit score can work hand in hand with using good financial services. So don’t ignore the basics in attaining financial health, improve credit score.

What You Need For Financial Health:

You Need A Good Credit Score.

Improve credit score to lower the cost of everything you buy.
Financial institutions will charge you less in goods and services if you take the steps to improve credit score.
By paying less on auto loans, insurance premiums, mortgage loans and other goods and services, you will keep more of your money to start building wealth.
A credit score above 750 is a good credit score. A credit score of 850 is considered to be a perfect credit score.

You Need Good Financial Services.

Financial services involves more than a phone call from a financial advise once a year.
To become financially healthy takes more of a hands on approach.
The purpose of financial services is to keep more of your money in your pocket.
Advice and guidance on financial fitness.
Direction on how become financially healthy.
How to also stay financially health.
It’s a process.

Understanding The Different Stages of Financial Health.

Financial health is a moving target.
As your financial needs change, your financial health changes.
Your financial needs change as your life changes.
As you go through different stages of life, your financial priorities change.
You have different financial priorities when you first start a job.
You don’t even have a financial plan when you are new in your career.
As you start to settle into your working years, you begin to develop your financial goals.
Your financial priorities are different from when you start to accumulate wealth compared to when you have already accumulated wealth.

Already Accumulated Wealth.

You want guidance.
You need to preserve your wealth.
Your financial needs are projections and analysis.
You do not want to exhaust your investments.
You do not want to outlive your investments.
Just because you had the expertise on how to make it, does not mean you have the same expertise on how to preserve your wealth.
Good financial services should have that expertise.

Just Starting To Accumulate

If you are new to investing, you want a financial education.
If you just started to accumulate wealth, you want a different kind of guidance.
You want to be financially healthy, but don’t know how.
You want an education on how to build wealth.
Advice on how to grow and manage wealth.
You will learn that one key to financial health is avoiding debt and not living pay check to pay check.
If you want to build wealth, you need to live within your means.
Accumulating wealth is a long-term process.
Use the financial services available to you to learn the process.

Where Can You Find These Financial Services?

Your 401k plan

Some 401k plans offer financial advisers.
These advisers can help you with 401k investment selections.
The adviser can gauge your risk tolerance level.
Give you an idea of how much money you will need to retire.
Whether you are saving enough to meet your time horizon for retirement.
Your 401k adviser can tell you if you are on track.
What you can change to make your 401k investing better.
Where you can make improvements in your other investments.

Your Auto & Home Insurance Agent

Your agent can help you save money on your insurance.
The money they help you save, you can invest.
Ask your agent how to save money on premiums by credit repair.
Your credit score is one key to lowering your insurance premiums.
By improving your credit score above 750 you will lower your insurance premiums.
Maybe you can increase your deductibles to save money on insurance premiums.
Maybe you can drop certain coverages that may not apply anymore due to the age of your auto or home.

Your Banker

Your banker can discuss ways for you to save money.
Maybe refinance your mortgage to get a lower interest rate.
Invest the extra money you save.

Your Accountant

Save you money on your tax bill.
Find additional write-offs, so more money stays in your pockets.

All of those financial services are available to you in the market place. You just need to be aware of them. You need to know who can offer you the financial services that you personally need.

Want Good Financial Advice|Trust Your Financial Planner

yourwealthpuzzle — Tue, 07 Dec 2010 09:57:04 +0000

When you get to the point in your financial life when you need a financial planner, you really want a good one. You have a lot at stake. You want financial advice that will provide the guidance you need for making strong financial decisions.

To get a good financial planner you will want to shop for one. You will want to interview several planners. To find a good financial planner, you will need to know what to look for. You will need to know what makes a good adviser; so we will outline some things you should look for.

Things To Look For In Your Financial Planner

Financial Knowledge

The way to test a financial planner on their financial knowledge is by asking them to talk to some of their other clients…ask for references.

Communication Skills

You need a financial planner with good communications skills.
You want to trust them to help you plan and problem solve.
They need to able to communicate solutions to you – you need to trust their skills.
They need to provide feedback and possible solutions to you in a timely manner. Test them on this.
Can they analyze your investment and financial situation and explain solutions in a manner that you understand and can work with.
If you can’t understand the investment analysis and documents they prepare for you, then that analysis and documentation is worthless to you.
Work with someone you feel comfortable with and can communicate with.

Availability

You want to work with a planner who you trust to take time to be available to you.
You want to build up your trust and confidence in this individual so you want them to be there at least at the beginning of the relationship.
Do they call you back or do you always have to call them back?
Do they personally take your questions, or do they have a staff member help you? T
Test them, ask these questions; that is one of the best ways to establish trust.

Are Your Best Interests #1

You want to trust that your financial planner will have your best interests at heart.
You need someone to take you through the process.
You don’t want to just be sold an investment product, you want to understand what you are buying and why. What problem will that investment product solve for you.
Is it an investment product commonly used in the market place to solve the same problem you are having?
Is there a guarantee of any kind?
What happens if you change your mind – is there a free-look period?

Even if you do trust your financial planner it does not hurt to get a 2^nd opinion. If your financial planner is confident in their own talents, skills and investment knowledge is, they won’t object.

Solution To Debt Problems

yourwealthpuzzle — Tue, 21 Sep 2010 16:03:57 +0000

In other words, debt settlement can also be termed as credit settlement or debt arbitration. Its main feature is reducing the debt by the reduced balance which is considered as the full payment as agreed by both debtor and creditor. The reduced balance is not negotiated by the creditors till the minimum monthly payments are made by the consumers. However, the balance grows when the payments stop due to late fees and also the ongoing interest. There are many ways by which the consumers can arrange for the settlement of debt. They can do so online on websites, or through a lawyer or through debt settlement companies.

Debt settlement involves negotiation with the creditors for reducing the overall debts by paying a lump sum amount. Debt settlement can be considered successful if the creditor is ready to forgive a certain percentage of the total amount of balance. Settlement of debt can be done only for unsecured debts such as medical bills and also the debts associated with credit cards. Debt settlement is a good option for debtors as they can avoid bankruptcy which is associated with the stigma and intrusive court control. At the same time, their debt balance is reduced by a large percentage, in some cases by 50% or more.

Debt settlement is also advantageous for the creditors as they regain trust of the borrowers intention of paying back the loan, whatever he can, instead of filing for bankruptcy when the creditor may lose all his money.

If a consumer chooses the path of employing a debt settlement company for the purpose of the settlement of the debt, he needs to have lump sum cash. Or he can build up funds over a certain predetermined time period. For those who don’t have lump sum cash, a trust account of third party is set up by the debt settlement companies. Funds are accumulated in this account for the process of settlement. The process of negotiation with each creditor individually begins once the funds are accumulated. The creditors can hold the accounts or they can be bought by the collections agency, in such case the debt is still negotiable. Consumers can negotiate the settlement of debt themselves.

Property Trusts

yourwealthpuzzle — Mon, 22 Feb 2010 14:44:16 +0000

Property trusts can hold most types of property. The property can be tangible or intangible. The trust can be created in writing, orally, by court order or be a testamentary will.

In a property trust, the property is managed by one person (or organization) for the benefit of another person (or organization).

Property trusts can be used for will and estate planning, tax planning, protection of beneficiaries and charities. Protection is for beneficiaries who are unable to handle money. This comes into play especially if the beneficiaries will be small children. In regards to charities, some charity structures do require the use of trusts.

You will need to work with your attorney when setting up your property trust. Every situation is different and your attorney can clarity the details for you.

Who Else Wants To Know Their Net Worth?

yourwealthpuzzle — Tue, 12 Jan 2010 11:51:56 +0000

Net worth sounds so formal. It sounds like something, everyone else should be doing, but not you.

Unfortunately, you should not be thinking like that because every one has a net worth and everyone needs to periodically evaluate their net worth. Determining your net worth is not a small task. It takes time to gather the pertinent information, and evaluate it. But you should run the analysis, so that you have a financial base to work from. Don’t you want to know where you stand financially?

What should be included in determining your net worth will depend upon whether you are an individual or a business owner. Let’s explore.

Your Net Worth:

To determine your net worth, you simply subtract your total liabilities from your total assets – the difference is your net worth.
Where people get confused is not knowing what your assets and liabilities are.
Also not including all of your assets or liabilities in your analysis.

Individual.

Your Assets:

Your home.
All of your investments.
401k account, IRA investments, CD’s, Savings Accounts, Stocks & Bonds help outside your retirement accounts
High value jewelry, collectibles, coin, art.

Your Liabilities:

Your mortgage.
Car Loans.
Student Loans.
Credit card balances

Small Business Owner:

Business owners have many assets and liabilities that individuals do not. Some are obvious, some are easily forgotten or not considered.

Assets:

Buildings.
Equipment.
Inventory.
Account Receivables.
Investments.
If you have a Business IRA, which can be a SEP or a Simple IRA plan.
Solo 401k, which is available for business owners with no employees.
If your only other employee is your spouse, the spouse is not considered an employee.
A solo 401k plan is the same as a regular 401k plan except for the contribution limits.
The contribution limits on a solo 401k plan are higher.
If you are over age 50, for 2010, the contribution limits $54,500.
If you are under age 50, for 2010, the limit is $49,000.
Another asset to the business would be a self-directed Roth IRA, which is a Roth IRA where you determine where the money will be invested. This is how most Roth IRA’s are set up.
Setting up a self-directed Roth IRA is standard, contact your broker, complete the forms, start your contributions.

Liabilities:

Loans.
Accounts payables.

Ask your accountant for additional guidance in determining your net worth. These professionals usually have a lot of the information used in determining ones net worth. If you use your accountant as a source of information, not only will the task be made easier, but maybe the information will be more accurate also.

Who To Trust?

yourwealthpuzzle — Tue, 07 Jul 2009 16:58:31 +0000

Who can you trust to give you good, solid financial advice? And then with this economy, how do you know who you can trust to watch out for your best interests?

Our current economic strife may have derailed your trust in financial advice and advisors themselves.

Can you trust your co-workers, neighbors or relatives, who are in the same position as you are and may have also lost half the value of their portfolios due to the economy? Maybe. But you really need absolute trust in whomever is advising you on saving and investing. At least one of the reasons you are working, investing and saving is so that someday you can retire. You may be spending just as much time in retirement as you are in your working life. So with that in mind, you better make sure that you completely trust your advisors.

To find an advisor whom you trust you should interview that advisor for the job of being your advisor. To build up trust that interview process should include analyzing their accountability and integrity. Make sure they do what they say they will do. Test them on this. Ask them questions, ask for references, talk to their employees.

Your Guide To Using A Financial Advisor The Right Way

yourwealthpuzzle — Fri, 03 Jul 2009 23:00:47 +0000

A financial advisor can be an invaluable tool. But you must first understand what they can offer. Financial advisors are not intimidating if you know the right way to use their services. The value of a good financial advisor is their ability to identify and teach.

Everyone knows what financial advisors are supposed to do for you: give financial advice and provide investment information.

You can use your advisor to teach you about different investments. The advisor should be able to provide you information about the two most common investments individuals use when planning for retirement: IRA’s and 401k’s. They should be able to advise you on the difference between investing for example in an IRA versus 401k and Roth IRA’s vs Traditional IRA’s.

You should also use your financial advisor to teach you good financial habits. The advisor should then hold you accountable for changing the old habits into new ones. By developing new financial habits, you may avoid some unnecessary work like credit repair. Let’s review how to get the most out of your financial advisor.

How To Use A Financial Advisor The Right Way:

Teaching You Investments

Before seeking help from a financial advisor, knowing some basic investment information ahead of time will prevent you from just following them blindly.

Since 401k’s and IRA’s are the two most common investments used by individuals to plan for their retirement, let’s review some basic information about them.

IRA vs 401k

IRA’s and 401k’s have different financial advantages.
Your age, income level, time horizon and job stability all help to determine if an IRA or a 401k works best for you.
If your employer matches your 401k contributions, a 401k plan may be a better option than an IRA because of the free money you get from an employer match.
Sometimes you can invest in both an IRA and a 401k plan; depending upon your income level.
Both may or may not be tax-deductible, depending upon your income level.
Both are tax-deferred.
You can take out a 401k loan, but you cannot take a loan out against an IRA.

Roth IRAs vs Traditional IRAs

Roth IRA investing is not for everyone.
If you are close to retirement, a Roth IRA is not a good investment for you.
If you cannot keep the money invested for at least 5 years, a Traditional IRA is a better choice than a Roth IRA.
Traditional IRA’s do have restrictions on when you have to take a distribution.
With a traditional IRA, you must begin minimum distributions at age 70 1/2.
With a Roth IRA, there are no distribution requirements.

Identifying Financial Habits

A financial advisor should help you identify your bad, bad, bad financial habits; and teach you how to modify them into good, good, good ones. Identifying a few of your own financial habits will help when you meet with the advisor.

Financial Habit # 1 – Carrying credit card balances.

One of the first bad habits that financial advisors usually advise clients away from is carrying high credit card balances.
Carrying credit card balances could lead to credit repair that you could avoid.
Making all of your purchases with your credit card and then just making the minimum payment will double and even triple your original debt.
That is a very bad, bad, bad habit to start because you never get ahead, you will always be in debt.
A better habit to develop is to pay off your credit card balance every month and not carry a balance.
Making minimum payments on credit cards needs modification.
The first step towards that habit is to not buy something if your only way to pay for it is on a credit card.
Your financial advisor may have additional suggestions.

Financial Habit #2 – Taking out 2nd mortgages.

This habit of taking out a 2nd mortgage to pay for the purchase of a big screen television or a new car is strongly discouraged by financial advisors.
The interest on a 2nd mortgage is usually higher.
You end up paying twice as much for the merchandise due to the interest.
The payback period is usually shorter.
A good financial advisor will tell you that if you can’t afford it do not buy it until you can afford it.

Financial Habit #3 – Separate your paychecks.

Get in the habit of using your first paycheck of the month to pay for your fixed expenses.
Your fixed expenses would be: mortgage or rent, car payment, real estate taxes.
Then use your second paycheck to invest and pay for your variable expenses.
Your variable expenses would be: utilities, food, entertainment costs.

Working with a financial advisor is similar to working on a puzzle; there are many pieces; individually they make no sense, but when put together they make a beautiful picture. We have just presented you with a few of the puzzle pieces that you will need to work with a financial advisor on.

There are many, many other financial habits that individuals have. We just identified for you a few of the more popular habits.

Just as there are other financial investments that exist besides just IRA’s and 401k’s…we have just talked about those two because they are the investments most often used by investors for retirement planning.

Each investor has different financial needs and situations which is why you want to work closely with an advisor to identify your personal needs and direction.

What Will My Financial Advisor Tell Me?

yourwealthpuzzle — Fri, 03 Jul 2009 22:57:29 +0000

Financial advisors often discourage taking 2^nd mortgages for home improvements or for the purchase of a new car. The interest is usually higher and the payback period is usually shorter. They will advise you that if you cannot afford it – do not buy it until you can afford it.

Good financial habits can lead to less stressful lives. If you do not have to constantly worry about your debt – you will feel more relaxed. Start to develop good financial habits by paying yourself first. Before you pay other accounts, pay into your retirement account – ira versus 401k account does not matter – just develop the habit of investing into your retirement account.

Another good financial habit is to separate the spending and investing of each of your paychecks. Use your first paycheck of the month to pay your fixed expenses (mortgage or rent, car payment, taxes). Use your second paycheck to invest and to pay for your variable expenses (investing, entertainment, food).