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What Changes (if any) Will a Biden Administration Mean to Your Financial Plan
Very little can affect your financial plan as much as Washington's policies. From the recent changes the SECURE act made to retirement planning to the tax planning changes made via the Tax Cut and Jobs Act, Washington has a lot to do with the moves we make. With Joe Biden seemingly guaranteed to be our next president, it is essential to think about how policy changes may affect your finances. It is also vital to realize, implementing any of the strategies I mention is a risk. You are betting on policy changes that may, or may not, occur. Ensure you weigh the pros and cons of the changes and the chance that the policy changes may not happen. Last disclaimer. This article is for informational purposes only. Please consult a professional with the details of your situation before making any changes. Congress Is Important Before diving into any planning changes, we need to discuss how policy comes about. All policies must start in the Legislative branch. Either the Senate or House of Congress creates legislation, and once approved by both houses, it goes to the president to sign into law. No president can create legislation, but they can make requests [...]
What This Weeks Uncertainty Can Teach Us About the Market
In case you have not followed it, the election was this week. It's Thursday, and we still do not yet know who our president will be. Though it seems more apparent who the winner will be, that's not been the case all week. Note: I am trying to relay facts and avoid any political opinions We've been told almost all year that we would end up with a Trump loss. Heading into the last week or so before the election, many polls showed an unsurmountable Biden lead. As is usually the case, as the election approached, some of those polls closed, but still had a reasonably safe Biden win. The night of the election, and through today, it's been a rollercoaster ride of uncertainty. Regardless of your side of the aisle, it has been constant vacillating from confidence to depression. In the meantime, the market has been steady. Why? 4 Years Ago Remember the market crash the night of the 2016 election? As Trump moved from a less than 15% chance of winning to being the next president, the stock market took a steady dive. I vividly remember one of my friends panicking and blaming conservatives for "destroying my retirement." [...]
A Quick Change That Will Help Your Kids With Money
If you think it's hard to make the right money decision, try coming up with a way to teach your kids to make proper money decisions. Earlier this week, I listened to a YouTube video with Dr. Jordan Peterson and Warren Farrell about fathers' role in children's lives. While the video's title has nothing to do with the conversation, it was a great conversation. An Interesting Correlation Dr. Peterson and Dr. Farrell pointed out the correlation between deferring gratification, i.e., having patience and success in life. After sitting in hundreds of households and speaking to hundreds of families that want new cars and bigger houses but were unwilling to wait until they could afford these luxuries, I came to this conclusion years ago. Some Advice It's great to know what to teach, but how do you teach it? I've been trying to teach my kids patience but not succeeding. I've been attempting to teach Jokco's "discipline equals freedom" mantra. Showing them that you work hard first, then play afterward. We've talked about it, but we have not done it well. This video helped me learn the mistake I've made, and I hope it will help you too. We had the [...]
Will a 15-Year Mortgage Really Save You Thousands of Dollars?
You can always tell when interest rates have dropped. Your Facebook feed suddenly gets overrun by Quicken Loans adds promising to save you thousands of dollars in interest if you switch to a 15-year mortgage. It seems too good to be true, so is it?Yes.It is true. A 15-year mortgage will drastically lower the total interest you will pay over the life of your loan. By putting more money toward your principal each year, you reduce the balance so quickly that your interest cost drops much quicker than if you were in a 30-year mortgage. Not only do you pay the principal down quicker, but you also save on 15-years of interest payments. Even though your interest paid decreases each year, the last 15 years of interest still packs a punch. For example, in a 30-year 3.25% mortgage for $200,000, year 16 still has you paying about $320 per month in interest. The interest is less than the first years, roughly $535 per month but still substantial. The savings can be so substantial that paying the same $200,000 mortgage off n a 15-year schedule would save you about $60,000. So that settles it. The 15-year mortgage is the best option.Except, [...]
Should I Refinance My Mortgage?
Mortgage rates are at an all-time low. The Mortgage Bankers Association just announced that the average rate for a 30-year mortgage is 3.06%*. That's basically free. Current inflation is around 1-1.2% and historically approximately 2.3%, so mortgages only costs you 1-2% in interest. Now is a great time to refinance.But is it the Right Time For You?Just because interest rates are meager does not mean you should refinance. There are some situations where it could hurt. Answering these questions should give you a more precise answer to this question.How Long Will You Live In This House?If you plan to move in the coming years, it is probably not a good idea to refinance. The typical refinance will cost you somewhere around $3,000 in closing costs and fees. The general rule of thumb is only to refinance if you will own it for more than seven years.While the 7-year guideline works, it oversimplifies your situation. Smaller mortgage balances will take longer to recoup the closing costs, while larger mortgages may save enough interest in one to two years. The best way to make this decision is to do a little math. Don't worry; it won't be hard. You will need two [...]
What is a Fiduciary?
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Achieve Your Financial Dreams
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Plan for Retirement
Sed porttitor lectus nibh. Vestibulum ac diam sit amet quam vehicula elementum sed sit amet dui. Curabitur arcu erat, accumsan id imperdiet et, porttitor at sem. Quisque velit nisi, pretium ut lacinia in, elementum id enim. Sed porttitor lectus nibh. Vestibulum ac diam sit amet quam vehicula elementum sed sit amet dui. Curabitur arcu erat, accumsan id imperdiet et, porttitor at sem. Quisque velit nisi, pretium ut lacinia in, elementum id enim.Sed porttitor lectus nibh. Vestibulum ac diam sit amet quam vehicula elementum sed sit amet dui. Curabitur arcu erat, accumsan id imperdiet et, porttitor at sem. Quisque velit nisi, pretium ut lacinia in, elementum id enim.Sed porttitor lectus nibh. Vestibulum ac diam sit amet quam vehicula elementum sed sit amet dui. Curabitur arcu erat, accumsan id imperdiet et, porttitor at sem. Quisque velit nisi, pretium ut lacinia in, elementum id enim.Sed porttitor lectus nibh. Vestibulum ac diam sit amet quam vehicula elementum sed sit amet dui. Curabitur arcu erat, accumsan id imperdiet et, porttitor at sem. Quisque velit nisi, pretium ut lacinia in, elementum id enim. Sed porttitor lectus nibh. Vestibulum ac diam sit amet quam vehicula elementum sed sit amet dui. Curabitur arcu erat, accumsan id imperdiet et, [...]
A Note About the Year 2020
I'm bullish. I tend to be. Not because I think the market will be up at the end of the year, but because I think it will be up in 5 years, 10 years and 20 years from now. I believe in the long term track record of the US economy. Here's a quick update of how well the market has actually done this year. In light of:Australia being on fireThe Corona VirusKiller hornets andJoe and Donald as our only choice The market has not done that bad.
Some Advice to 20-Year-Old Me
There's an old phrase, "youth is wasted on the young," and it was right in my case. In my 20's I had a ton of opportunities, but wasted most of them. I missed some opportunities because I didn't see them, others because I didn't have the courage, and some because I was uneducated about money. Where I Came FromMy family was around the poverty line until well into my high school years. A single mom raised me with two siblings. We each had different fathers, and not one of them was in our lives or paid child support. Yes, I grew up in an upper-middle-class white neighborhood but lived in the trailer park. When I was 22, I bought a house, except it wasn't a smart move. My grandmother needed help, so I began paying her mortgage. When I was in 4th grade, my grandfather died. The union he was a member of took the remainder of his pension and left my grandma on her own. They even kept his life insurance benefit. So, for the first time in her life, she had to work and live off Social Security.I made pretty good money for a 22-year-old single guy living at home [...]