AdviceIQ Articles

  • How Not to Blow a Windfall

    Submitted by Hilary Martin on Thu, 05/16/2013 - 12:00pm

    Most people think sudden money only occurs infrequently. But a windfall occurs far more frequently than we think. Unfortunately, we often don’t see it coming or plan for it before it’s too late.

    When I tell people I specialize in helping people who suddenly come into a substantial amount of money, the often say sarcastically, “Great! Expect a call when I win the lottery.”

    The lottery win is only one exceedingly rare example of a sudden money event. Real ones can happen any time someone receives an amount of money that dramatically alters their financial future.

  • Living With Slow Growth

    Submitted by Lewis J. Walker on Thu, 05/16/2013 - 9:00am

    With our economy in slow-motion growth, will investors continue to see good gains? You hear different scenarios all the time, but on balance, the case for cautious optimism is the most compelling.

    We end each year with a plethora of fearless forecasts from gurus and sellers of books and newsletters. As we move into a new year, much ink and hot air is expended explaining why or why not certain prognostications did or did not come to fruition.

  • More on a Bad Insurance Plan

    Submitted by Rick Kahler on Wed, 05/15/2013 - 3:00pm

    I recently wrote about a highly marketed insurance plan that I labeled a very bad idea. My column criticizing the Be Your Own Banker scheme drew the ire of several fans of whole life insurance. Nevertheless, BYOB is still something to avoid.

  • Financial Disaster Prep

    Submitted by Jeff Rose on Wed, 05/15/2013 - 12:00pm

    Preparing for a natural disaster is about much more than having a safe zone ready in the house and stocking up on bottled water. A natural disaster can be financially devastating for survivors, particularly if they didn’t take the time to prepare.

    Many Americans don’t think about the possible financial fallout of acts of God until it is too late. Especially after massive storms that happen with increasing frequency these days, it’s more important than ever to prepare.

  • A Rally Too Good to Be True

    Submitted by Kevin Flynn on Wed, 05/15/2013 - 9:00am

    A market that goes up in a straight line, like the current one, sows the seeds of its own grief. Momentum investing, where a rising market encourages investors to push shares even higher, can be dangerously seductive and make you think that investing is easy.

    All you do is put your money into the machine and it goes up. If the needle drops for a moment, just drop in some more cash and it goes back up again.

  • 30 Basic Financial Tips

    Submitted by Ara Oghoorian on Tue, 05/14/2013 - 3:00pm

    If you are coming out of a rough patch in your career, or just starting, it’s sometimes hard to figure out how to improve your finances. Basic money skills often are not taught in schools.

  • How to Stop Wasting Time

    Submitted by Neal Frankle on Tue, 05/14/2013 - 12:00pm

    There is no skill more important than learning to stop wasting time. Using time wisely isn’t just about being more productive at work. It’s also about living life to the fullest. What good is creating wealth or getting out of debt if you squander the fruits of those triumphs playing BioShock Infinite all day?

    Here are five steps to kick bad habits and make sure you don’t waste a precious moment going forward.

  • Shareholder Meeting: Why Go?

    Submitted by Matthew Illian on Tue, 05/14/2013 - 9:00am

    Springtime ushers in a rush of annual shareholder meetings, but these days, few investors are making this corporate pilgrimage. That’s a mistake. Attending at least one meeting for a stock you own is a very good idea.

    Every publicly traded company holds an annual shareholder meeting, and most companies fulfill this requirement with as little time or meaningful content as possible. But failing to participate can be costly when investors and executive managers fail to look each other in the eye.

  • Giving Kids Money, Wisely

    Submitted by Jeff Rose on Mon, 05/13/2013 - 3:00pm

    Many parents want to give their children assets to call their own, but kids are usually not the most level-headed stewards of wealth. This is why many choose to give their children custodial accounts that give the children ownership, but not total control over the gift.

    If you’re scared that your children might blow through their savings, here’s what you need to know about custodial account rules.

  • Why to Buy a Cheap House

    Submitted by Neal Frankle on Mon, 05/13/2013 - 12:00pm

    If you are looking for a house, try to find the cheapest one you can fit into. A less expensive home gives you more latitude to make good financial decisions.

    When it comes to buying a house, the conventional wisdom is that you should select the most expensive one you can afford. You might want one that provides extra growing room, in hopes that your income and financial resources grow into the house as time goes on.

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SMART ADVICE

 

A Tragic Mistake: ‘I Don’t Need Help Handling my Money’

 

By Larry Light, Editor-in-Chief

May 1, 2013

 

We all like to think we’re smart and self-sufficient. A lot of folks believe they can manage their financial lives by themselves. These do-it-yourselfers are woefully wrong.

 

AdviceIQ is about giving the world the wisdom of smart, honest (none can have any regulatory infractions) advisors. Are we blindly pro-advisor? No, we are clear-eyed about being pro-good advisor. Everyone, even the financial cognoscenti, should have such a helper to sort out life’s perplexities.

 

Lamentably, the financial crisis and the Bernard Madoff scandal convinced many to steer clear of advisors. According to a Deloitte consulting firm study, 57% of those polled say they’re more comfortable handling their retirement planning on their own. Plus, 38% contend they need no professional advice to plan.

 

Really? A story from Paul Sullivan shows how wrong-headed they are. Sullivan is enormously well-versed in personal finance, which he writes about for the New York Times. But it turns out that even he could use some help with his portfolio. One day he went before Tiger 21, an investment club of very wealthy (with at least $10 million in net worth) types who assessed his financial situation. To Sullivan’s surprise and dismay, the group found major holes: He and his wife didn’t have enough insurance, they carried an unneeded vacation home and spent too much.

 

The blasé DIY attitude vexes Edmond Walters, founder and chief executive of eMoney Advisor, which provides support services to advisors. He watches discount broker TV ads that promise you can direct your investments by yourself, without paying an advisor. “It’s dangerous,” he says. “The ads say you can come home after work and spend a couple of hours trading a month. But the professionals have a lot more information than you.” Result: You get slammed.

 

As the Times’ Sullivan attests, it’s good to have a more knowledgeable someone guiding you, an expert who keeps up with all the arcane changes in the financial arena. Do you know how much disability coverage you need? Are you saving adequately for your kids’ education? How much money are you wasting for no good reason? Will your investments support you through your retirement?

 

Walters spent almost two decades as an advisor before he started his current company. “But,” he says, “even I have an advisor.”

 

 

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