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Articles tagged with: personal finance

When to Pivot Your Career (And How to Pull it Off Financially!)

Change Can Be Wonderful When You Make it Strategically

20 July 2020

When to Pivot Your Career (And How to Pull it Off Financially!)

As human beings, we are hard-wired to be reluctant to change. We prefer the familiar, the predictable, the strategy that gives us the long view. Sometimes, though, we begin to feel the overwhelming urge to make a career change. Many people ignore the nagging feeling because it’s easier to maintain the status quo than embark on a transition that may be overwhelming or stressful. For those who choose to pursue a career pivot bravely, there can be opportunity and fulfillment waiting on the other side.

If you find yourself seriously considering a career change, you’ll need to determine the Why, What, and How. Let’s dig in.

The Why

Everyone – business owners and career professionals alike – have moments when they question their career paths. It may be that you’re going through a tough season at work where you feel less than inspired, or it may be that you are genuinely ready for a change. Before making any big moves, it’s crucial to evaluate exactly why you desire a change. Usually, your situation will fall into one of three categories:

  1. You’re feeling unfulfilled at work.
  2. You’re feeling unfulfilled in your personal life.
  3. You’ve reached a growth ceiling in your current position.

Do You Know Your Financial Independence Day?

25 June 2020

Do You Know Your Financial Independence Day?

Independence Day is one of America’s favorite summer holidays. What is one of your favorite traditions on Independence Day: fireworks, hotdogs, parades? In this blog, I want to talk about another kind of Independence Day, your Financial Independence Day.

If money and time were not an issue, what kind of activities would you be doing over the next twelve months? The day when work becomes optional—when you can choose to stop working and start doing those activities that you enjoy while maintaining your current standard of living—is the day you’ve reached your financial independence day. This day is the end result of a process of determining your retirement income goals, the actions, and the decisions necessary to achieve those goals. Retirement planning is, in essence, preparation for life after paid work ends, not just financially, but in terms of lifestyle choices, such as how to spend time in retirement, where to live, when to completely quit working.

A Plan for Every Stage of Life

People often deny themselves their dreams because they don’t understand the resources needed. This is why it’s important that I get their list of dreams during a discovery meeting in order to explore options and tell them what’s realistic. If a goal is unrealistic based on current net worth, income, and expenses, I can make suggestions for changes to get them to a better place. I can run some scenarios to show if they are spending too much now to retire in their target year, and I can offer recommendations. Financial independence isn’t necessarily just about retirement; it could involve the pursuit of a new career.

Second Marriage Financial Planning: Seven Steps to Success

24 June 2020

Second Marriage Financial Planning: Seven Steps to Success

Second marriages often bring with them a renewed optimism for the future. After all, you’re getting a second chance at a “happily ever after” and this time you have the benefit of more life experience and wisdom.

You likely also have a significantly more complex financial life than you did going into your first marriage. This means you and your partner must be thoughtful and savvy about how you will manage your finances. Use the seven steps below to help you navigate the process and ensure you remain on strong financial footing as you enter this new phase of life together.

Understanding the ‘Rich Person Roth’

08 June 2020

Understanding the ‘Rich Person Roth’

Recent world events have made it clearer than ever that it’s imperative to have a long-term financial strategy that allows you to weather volatile economic times. The Roth IRA is a popular tax-minimizing strategy, as it allows for tax-free growth and withdrawals in retirement, and many people make it part of their long-term financial plan. Unfortunately, high-income earners are either limited or ineligible when it comes to Roth contributions. At the moment, that means single individuals with incomes greater than $139,000 and couples with incomes greater than $206,000 in the year 2020 can’t take advantage of Roth IRAs the way those under these thresholds can.

Fortunately, there are a few ways around this. A Backdoor Roth lets you convert a traditional IRA to a Roth – even if your income precludes you from contributing directly to a Roth – through what amounts to some intricate paperwork. We help clients do this carefully and make sure that they report them properly on the tax returns.  The option I’ll discuss below, however, is a different type of tax-advantaged investment altogether. It’s called the Rich Person Roth and, though it’s not for everyone, it can be incredibly valuable for some high earners.

Resetting Your Financial Goals After COVID-19

It's Time to Map Out Your Next Ten Years

06 May 2020

Resetting Your Financial Goals After COVID-19

The novel Coronavirus has brought with it a lot of tragedy, devastation, and chaos; many are losing loved ones, finding themselves in financial peril, and questioning their job security. However, it also brought with it a lot of quality life lessons and a significant pause which provides a rare opportunity to turn inward and focus on what you want for your financial future. Normally, people wait until the end of the year to set out short- and long-term goals, but right now is ripe with potential for those who choose to take advantage.

One of the biggest lessons we’re learning is how fragile and short life can be; for those of us who are lucky to be healthy and safe, it’s important that we do what we can to make the most out of what we’ve been given and where we are at. It’s time to think about what you want your life to look like five, ten, twenty years from now – specifically, where you will be in your financial journey. One way to do this is to start a decade into the future – and work backward to understand how you’ll achieve your goals.

The following tips offer a roadmap to follow as you begin planning for a financially successful decade ahead.

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