If you are one of the very few people that DOES NOT have problems controlling all the projects they have and the amount of time they have to do them, feel free to skip this great article published in Business Insider titled “26 Time Management Hacks I Wish I’d Known at 20” put together by Max Nisen. For the rest of us it just might save us a little frustration!
http://www.businessinsider.com/time-management-and-productivity-hacks-2013-4?op=1
Thursday, January 2, 2014
Now is a great time to think about what we don’t know about investing…
Another year has flown by and many people are making New Year’s resolutions that will fade well before January ends. Prognosticators are out in droves telling us what will happen with everything from how we will dress to when the world will end. There will be people in the financial circles telling us the economy and the stock market will go up, or the economy and the stock market will go down. And, of course it will. The truth is no one really knows the future.
When it comes to investing there seems to be quite a lot we don’t actually know so I thought it would be a good time for us to review a great article by Allan Roth titled “5 things to know you don’t know about investing.” Some writers have the gift of explaining things simply so we can all ‘get it’. Allan is certainly one of those writers! Some of you have already seen this article since it is now in my handouts for our ‘Get Acquainted’ meetings. The wonderful message in the article is not only that you and I don’t know these things, but that no one does. So if you happen to be talking to a friend, neighbor or even a person that claims to be an expert, and they start to act like they know all about those things – hang on tight to your wallet and run away quickly.
A little knowledge about what you don’t know can be a very powerful thing. I hope you enjoy the article!
http://www.cbsnews.com/news/5-things-to-know-you-dont-know-about-investing/
When it comes to investing there seems to be quite a lot we don’t actually know so I thought it would be a good time for us to review a great article by Allan Roth titled “5 things to know you don’t know about investing.” Some writers have the gift of explaining things simply so we can all ‘get it’. Allan is certainly one of those writers! Some of you have already seen this article since it is now in my handouts for our ‘Get Acquainted’ meetings. The wonderful message in the article is not only that you and I don’t know these things, but that no one does. So if you happen to be talking to a friend, neighbor or even a person that claims to be an expert, and they start to act like they know all about those things – hang on tight to your wallet and run away quickly.
A little knowledge about what you don’t know can be a very powerful thing. I hope you enjoy the article!
http://www.cbsnews.com/news/5-things-to-know-you-dont-know-about-investing/
Thursday, November 21, 2013
An Advisor's Guide to Navigating Health Insurance Exchanges
By Ellen Breslow
Nov. 18, 2013
Clients shopping the exchanges will likely be confused at the variety of options and requirements they have to deal with. Help them out with this primer on how to navigate the exchanges, the information needed, how to qualify for premium subsidies, and tips for getting the best coverage for the money.
Open enrollment is upon us, and with it, the dawn of the new health insurance exchanges. As an advisor, it's critical that you understand what is involved in gathering information on these plans, enrolling through the website, and determining your client's eligibility for a premium tax credit. You've heard about how difficult the health insurance websites are to navigate and understand; here is your opportunity to add value to your client's health care planning by assisting in the process.
State or federal?
The first component to consider is where the client lives (see the figure) and whether the exchange is state run, federally run, or run by a combination of the two. This will impact where your client goes for information and enrollment.
The 34 states or so that have defaulted to a federal government-run exchange will access information at healthcare.gov. Other exchanges will have their own websites, and most likely, additional enrollment data will be required. The standard information is the same, and as an advisor, that is where you'll want to focus.
Source: Brookings Institution; data from the Commonwealth Fund
Client information
Although the federal government and state exchanges have a means by which your client can compare plans, it will allow comparisons between only the costs of plans. For example, after completing a generic questionnaire, healthcare.gov will display plans under provider, metal level (bronze, etc.), and cost. However, it won't address the differences among the plans from the assorted providers. Before you can help clients plot a course through the exchange, they should pull together the following information:
Premium subsidy eligibility
One of the major benefits that the public health insurance exchanges offer is premium subsidies. To qualify for a subsidy, income sources and requirements must be met—hence, the necessity of supplying this information on the enrollment application.
Eligibility for premium subsidies depends on modified adjusted gross income (MAGI) and, for early retirees, the extent to which MAGI can be effectively managed. Here's an easy way to understand the MAGI calculation:
Source: HealthPocket
Table 2 outlines the MAGI threshold for subsidies. Subsidies are a percentage of modified adjusted gross income. Premiums will not exceed this percentage of MAGI—up to 9.5% of 400% of FPL.
Source: HealthPocket
Whether your client qualifies for a subsidy or not, the application process will be the same, although there shouldn't be any income verification requirements. Once an application is submitted, the client will be able to see all levels of plans that are available in the area where he or she resides.
Review existing plans
Although an individual may find a plan where the cost seems to be within acceptable limits, what the plan offers in the way of coverage will differ and network providers will vary from plan to plan. All metal plans will cover the essential health benefits (10 categories of coverage including preventative services); however, there may be other things to consider:
There is a six-month enrollment window for the public health insurance exchange plans. In order to meet the January 2014 deadline and meet the individual mandate for establishing coverage, enrollment may be completed by March 31, 2014.
This article is reprinted with the permission of Horsesmouth.com. To learn more go to Horsesmouth.com. Ellen Breslow is the managing director of www.eabhealthworks.com. She spent her 26 year career as a managing director of Citi Smith Barney’s Global Wealth Management division, most recently as the creator of the Retirement Resources Group, focusing on healthcare advisory for clients and prospects of Smith Barney and Citi Family Office. She is a graduate of Lehigh University.
Nov. 18, 2013
Clients shopping the exchanges will likely be confused at the variety of options and requirements they have to deal with. Help them out with this primer on how to navigate the exchanges, the information needed, how to qualify for premium subsidies, and tips for getting the best coverage for the money.
Open enrollment is upon us, and with it, the dawn of the new health insurance exchanges. As an advisor, it's critical that you understand what is involved in gathering information on these plans, enrolling through the website, and determining your client's eligibility for a premium tax credit. You've heard about how difficult the health insurance websites are to navigate and understand; here is your opportunity to add value to your client's health care planning by assisting in the process.
State or federal?
The first component to consider is where the client lives (see the figure) and whether the exchange is state run, federally run, or run by a combination of the two. This will impact where your client goes for information and enrollment.
The 34 states or so that have defaulted to a federal government-run exchange will access information at healthcare.gov. Other exchanges will have their own websites, and most likely, additional enrollment data will be required. The standard information is the same, and as an advisor, that is where you'll want to focus.
Source: Brookings Institution; data from the Commonwealth Fund
Client information
Although the federal government and state exchanges have a means by which your client can compare plans, it will allow comparisons between only the costs of plans. For example, after completing a generic questionnaire, healthcare.gov will display plans under provider, metal level (bronze, etc.), and cost. However, it won't address the differences among the plans from the assorted providers. Before you can help clients plot a course through the exchange, they should pull together the following information:
- Dependent Social Security numbers
- All sources of family income (if applying for premium subsidies)
- Tax filing status and income estimate for 2014 (if applying for premium subsidies)
- Dependent residence addresses
- Dependent tax filing status (if applying for premium subsidies)
Premium subsidy eligibility
One of the major benefits that the public health insurance exchanges offer is premium subsidies. To qualify for a subsidy, income sources and requirements must be met—hence, the necessity of supplying this information on the enrollment application.
Eligibility for premium subsidies depends on modified adjusted gross income (MAGI) and, for early retirees, the extent to which MAGI can be effectively managed. Here's an easy way to understand the MAGI calculation:
- Gross income (GI) = Salary + interest earned + income from investments + other taxable income
- Adjusted gross income (AGI) = GI - qualified deductions
- Modified adjusted gross income (MAGI) = AGI + Social Security + tax-exempt income + foreign earned income
Source: HealthPocket
Table 2 outlines the MAGI threshold for subsidies. Subsidies are a percentage of modified adjusted gross income. Premiums will not exceed this percentage of MAGI—up to 9.5% of 400% of FPL.
Source: HealthPocket
Whether your client qualifies for a subsidy or not, the application process will be the same, although there shouldn't be any income verification requirements. Once an application is submitted, the client will be able to see all levels of plans that are available in the area where he or she resides.
Review existing plans
Although an individual may find a plan where the cost seems to be within acceptable limits, what the plan offers in the way of coverage will differ and network providers will vary from plan to plan. All metal plans will cover the essential health benefits (10 categories of coverage including preventative services); however, there may be other things to consider:
- List the family's prescription drugs and be certain the drug formulary covers those medicines that are taken regularly.
- If keeping the same doctors and hospitals are a key component of your client's coverage, check the plan carefully. Services may be covered, but the doctor or hospital may not be in the network of providers.
- Since this is not an employer-sponsored plan, it may make more sense for adult children to purchase their own coverage, especially if they live out of state. The coverage will likely be better. An adult child who is working may also be eligible for a premium subsidy if he or she enrolls separately and considers only one income.
- If your client is not expecting a premium subsidy, it makes sense to review claim, deductible, and premium records before deciding on which metal plan looks most attractive. Depending on what the history looks like, lower premiums and higher deductibles may look better than expected
- You may not drop COBRA and enroll now for 2014. There is a special enrollment period available after the COBRA period ends. The exchange plans may be selected instead of COBRA.
There is a six-month enrollment window for the public health insurance exchange plans. In order to meet the January 2014 deadline and meet the individual mandate for establishing coverage, enrollment may be completed by March 31, 2014.
This article is reprinted with the permission of Horsesmouth.com. To learn more go to Horsesmouth.com. Ellen Breslow is the managing director of www.eabhealthworks.com. She spent her 26 year career as a managing director of Citi Smith Barney’s Global Wealth Management division, most recently as the creator of the Retirement Resources Group, focusing on healthcare advisory for clients and prospects of Smith Barney and Citi Family Office. She is a graduate of Lehigh University.
Thursday, November 7, 2013
How to Set your Car’s Rear-View Mirrors to Eliminate the ‘Blind Spot’
Several years ago USAA, my automobile insurance company, sent out some instructions on how to set your car rear-view mirrors so you can eliminate the blind spots that normally occur when you are driving and another car is on one side or the other. I’m sure you’ve had it happen to you - you are cruising along and for whatever reason you want to change lanes. You check your rear-view mirror – nothing there to worry about. You check your side mirror – nothing there either. You put on your turn signal and start to change lanes. Then it happens, a loud car horn sounds and you jump back into your lane muttering to yourself, “where the (expletive deleted) did he come from?”
That’s exactly the spot you can eliminate if your mirrors are set properly.
I got in touch with USAA to try to have them send me a copy of the instructions so I could share them with you. No one there could find them, but a search of the Internet did bring some results. Here’s the information from the combined versions of Car and Driver Magazine and wikiHow.
It turns out that this information was first published in a paper by the Society of Automotive Engineers (SAE) in 1995. The paper advocates adjusting the mirrors so far outward that the viewing angle of the side mirrors just overlaps that of the cabin’s rear-view mirror. This can be disorienting for drivers used to seeing the flanks of their own car in the side mirrors. But when correctly positioned, the mirrors negate a car’s blind spots. This obviates the need to glance over your shoulder to safely change lanes as well as the need for an expensive blind-spot warning system.
The only issue is getting used to the SAE-recommended mirror positions. The cabin’s rear-view mirror is used to keep an eye on what is coming up from behind, while the outside mirrors reflect the area outside the view of the inside rear-view mirror.
Here is a link to the wikiHow site to get the actual steps for how to set your mirrors: http://www.wikihow.com/Set-Rear%E2%80%90View-Mirrors-to-Eliminate-Blind-Spots
Car and Driver says, “Those who have switched to the SAE’s approach swear by it, however, some drivers can’t adjust to not using the outside mirrors to see directly behind the car and miss being able to see their own car in the side mirrors. To them we say, “Have fun filling out those accident reports.”
That’s exactly the spot you can eliminate if your mirrors are set properly.
I got in touch with USAA to try to have them send me a copy of the instructions so I could share them with you. No one there could find them, but a search of the Internet did bring some results. Here’s the information from the combined versions of Car and Driver Magazine and wikiHow.
It turns out that this information was first published in a paper by the Society of Automotive Engineers (SAE) in 1995. The paper advocates adjusting the mirrors so far outward that the viewing angle of the side mirrors just overlaps that of the cabin’s rear-view mirror. This can be disorienting for drivers used to seeing the flanks of their own car in the side mirrors. But when correctly positioned, the mirrors negate a car’s blind spots. This obviates the need to glance over your shoulder to safely change lanes as well as the need for an expensive blind-spot warning system.
The only issue is getting used to the SAE-recommended mirror positions. The cabin’s rear-view mirror is used to keep an eye on what is coming up from behind, while the outside mirrors reflect the area outside the view of the inside rear-view mirror.
Here is a link to the wikiHow site to get the actual steps for how to set your mirrors: http://www.wikihow.com/Set-Rear%E2%80%90View-Mirrors-to-Eliminate-Blind-Spots
Car and Driver says, “Those who have switched to the SAE’s approach swear by it, however, some drivers can’t adjust to not using the outside mirrors to see directly behind the car and miss being able to see their own car in the side mirrors. To them we say, “Have fun filling out those accident reports.”
Can Gold be Hazardous to Your Wealth?
If you watch any of the financial or news channels, you have certainly seen the gold and silver commercials –there’s one in every break! Their job is to scare you to death and entice you into making what could be a very poor financial decision. They come on and tell you that the world is coming to an end, and the only way to protect yourself is to buy gold or silver (depending on which one they are selling of course!)
Do you ever wonder where all the money comes from to pay for those commercials? By the time I tell you this story I will be willing to bet you can figure that out.
We can have a debate about the merits or non-merits of using precious metals in an investment portfolio. The long and short of that might come down to the simple fact that there are no good or bad investments, because just about everything you can invest in does well at times and poorly at others. But that’s not what I will be talking about today. My story deals with how you can play this game and start out with such a disadvantage you may never catch up.
A good friend and client of mine recently got a case of “gold fever.” Nothing I said could dissuade him from taking some of his hard-earned money and investing in gold. The salesman convinced him to spend his money on gold coins. The actual price tag of the coins was $33,778. The total of the gold in those coins was approximately 15.25 ounces. He paid $2,215 per ounce. The spot price of gold on the date was $1,391. Why did he pay over 59% more for gold than the spot market price on that day?
The answer in a nutshell is gold coins.
Normal markup for gold bullion is from 2 to 10%. If you’re around the 2 to 5% range, that wouldn’t be bad but he was at a 59%markup! What seems to get lost somewhere in the sales presentation is that when you purchase coins, you are not only buying the gold, you are paying for the numismatic value of the coins as well. Just what is numismatic value? In its simplest form it is the added value that a coin brings because of its value as a collectible or as a piece of art. So about half of that 59% was established based on how rare and how pretty the coin might be. The rest of the cost comes from the simple fact that the spread – the range between how much a dealer pays for a coin and how much it sells for – is from 17 to 33%. My friend spread on this particular order was a mere 24.94%.
So how much were those coins worth when valued approximately 2 months later? $20,630.20 -- a loss of $13,148.55, or 39%! What about the spot price of gold on the same day the coins were valued? $1,361 – down $30 from where it was when he purchased the coins – that’s about a 2% loss. The selling company provided the value for the coins when they were appraised. We have no idea what they would actually sell for in the open market. The value of gold bullion was very easy to find for the same dates on the Internet.
The moral of the story? If you decide you want to buy gold – or any precious metals – make sure you truly understand what you are buying and how much it will cost so you don’t start out so far down it would take a huge market rally just to get you back to what you paid!
Do you ever wonder where all the money comes from to pay for those commercials? By the time I tell you this story I will be willing to bet you can figure that out.
We can have a debate about the merits or non-merits of using precious metals in an investment portfolio. The long and short of that might come down to the simple fact that there are no good or bad investments, because just about everything you can invest in does well at times and poorly at others. But that’s not what I will be talking about today. My story deals with how you can play this game and start out with such a disadvantage you may never catch up.
A good friend and client of mine recently got a case of “gold fever.” Nothing I said could dissuade him from taking some of his hard-earned money and investing in gold. The salesman convinced him to spend his money on gold coins. The actual price tag of the coins was $33,778. The total of the gold in those coins was approximately 15.25 ounces. He paid $2,215 per ounce. The spot price of gold on the date was $1,391. Why did he pay over 59% more for gold than the spot market price on that day?
The answer in a nutshell is gold coins.
Normal markup for gold bullion is from 2 to 10%. If you’re around the 2 to 5% range, that wouldn’t be bad but he was at a 59%markup! What seems to get lost somewhere in the sales presentation is that when you purchase coins, you are not only buying the gold, you are paying for the numismatic value of the coins as well. Just what is numismatic value? In its simplest form it is the added value that a coin brings because of its value as a collectible or as a piece of art. So about half of that 59% was established based on how rare and how pretty the coin might be. The rest of the cost comes from the simple fact that the spread – the range between how much a dealer pays for a coin and how much it sells for – is from 17 to 33%. My friend spread on this particular order was a mere 24.94%.
So how much were those coins worth when valued approximately 2 months later? $20,630.20 -- a loss of $13,148.55, or 39%! What about the spot price of gold on the same day the coins were valued? $1,361 – down $30 from where it was when he purchased the coins – that’s about a 2% loss. The selling company provided the value for the coins when they were appraised. We have no idea what they would actually sell for in the open market. The value of gold bullion was very easy to find for the same dates on the Internet.
The moral of the story? If you decide you want to buy gold – or any precious metals – make sure you truly understand what you are buying and how much it will cost so you don’t start out so far down it would take a huge market rally just to get you back to what you paid!
Monday, February 22, 2010
A NEW KIND OF ASSET FOR THE NOT-SO-RICH AND FAMOUS
Financial Advisor Abandons Commissions and Account Size Minimums, Gears
Services to Average Americans with Simple Hourly Fee-Only Structure
Services to Average Americans with Simple Hourly Fee-Only Structure
After 23 years of operation, Wayne Blanchard, a CERTIFIED FINANCIAL PLANNER practitioner, has announced Money Professionals Group has become an hourly fee-only financial planning firm and he has joined The Garrett Planning Network. Money Professionals Group is aimed at helping people “from all walks of life,” according to the former Army Officer and Banker. “In our previous role, I was unable to help the majority of people in the community because they didn’t meet the minimums we had set for our services. You had to be rich to get good, individual advice. After reflecting on how I’d like to obtain financial advice myself, I decided to make some changes to help people just like my family and friends. I have friends in the military and federal civilian community, the medical arena, seniors, and small business employers up to a hundred employees,” stated the Mr. Blanchard.
“Money Professionals Group will specialize in helping people make better benefit choices, college funding and retirement planning decisions,” continues Blanchard. “Mutual fund selection, asset allocation decisions, portfolio construction and second opinions on all types of financial matters are core competencies. People will also be able to get help with their health insurance paperwork problems. We are committed to finding ways to save them money, reduce their stress levels and foster peace of mind,” he says.
As a Member of The Garrett Planning Network (www.GarrettPlanningNetwork.com), Mr. Blanchard has aligned himself with a nationwide network of independent planners who focus on serving Middle America. “Hourly, As-Needed Financial Planning and Advice for Everyday Life … The New Choice for Smart Consumers” is the network’s trademarked tagline. The network has garnered much media attention, including mentions in/on the Today Show, MSN MoneyCentral, Wall Street Journal, New York Times, Kiplinger Personal Finance, Smart Money, Washington Post, Newsweek and Time magazine. Mr. Blanchard and fellow GPN Members do not accept commissions or any other form of third-party compensation.
“We are compensated solely by the client, on a pure hourly-fee basis,” says the Brevard County resident. “In the beginning, it may be hard for some people to understand they will have to pay for advice they thought they were getting for free,” said Mr. Blanchard. “But these days everyone knows there is no free lunch, and more and more people are becoming aware of the fact that the big companies price hidden profits inside financial products. “Free advice” is generally biased toward the recommendation of investment products and money management through that particular firm. The consumer does not have full information nor the complete range of choices available.”
The Money Professionals Group model is similar to a dental practice, according to Mr. Blanchard. “Clients call us when they recognize the need for advice or assistance. Checkups are encouraged, but are generally initiated by the client. My dentist operates the same way. This service model works well for people who want to take personal responsibility for their financial well-being. Interested individuals may wish to visit our website, www.MoneyProfessionals.com, for helpful information in all areas of personal finance,” he concludes.
Wednesday, January 27, 2010
Tips to Make 2010 a Better Year
We all know the last couple of years have been very difficult. No one knows what will happen this year. Predictions are all over the board...so if you have an opinion, I am sure there is someone who agrees with you!
Some things work in all types of situations, so why not work on some of those areas to improve your financial life. Here is a list....now you can get to work!
1. GET OUT OF DEBT...or at least start getting out of debt!!!
It is time to get that debt level under control. First, make a list of everything you owe. Next come up with a plan to pay everything off. Think it is to difficult, or even impossible? It's not. You CAN do it. If you are paying all of your bills right now, you can probably get out of debt faster than you ever imagined. But before you get too far along here, check the next tip.
2. Establish an Emergency Fund
If your get out of debt plan gets started BEFORE you have a decent emergency fund, it will fail. Most of the debt we are talking about with clients is credit card debt. In order to get out of the clutches of that type of debt, you have to stop using the cards! I realize that sounds simplistic, but real life says that if you don't have an adequate emergency fund you WILL use the credit card for your next 'emergency'. How much should the fund be? It depends on your lifestyle. A fully funded emergency fund would include 6 months of your family expenses. Depending on your situation you may start with less.
3. Check your Credit Report
You should check your credit reports at the three major credit reporting agencies on a regular basis. It costs you nothing. Federal law entitles consumers to a free copy of their credit reports from each of the three credit bureaus once every 12 months. Head to AnnualCreditReport.com and simply rotate the agency every four months to get a new credit report.
4. Review ALL of your spending
Check everything. All of your insurance policies....auto, homeowners, life, health...you know the ones. Don't forget your telephone and cable bills, your utilities, and your recreation and dining habits. Recently I met with a client and we found about $1,000 per month she could save by simply changing the way she did some things--with no change to her lifestyle!
Maybe it's time for some professional help...
All the leading financial publications say that if you need professional help you should seek out an hourly, on demand financial planner. Maybe you don't need a full time financial planner, maybe you don't want to turn your money over to someone else, or maybe you just want a second opinion.
I am here to help. I am a Certified Financial Planner and have been helping people with their money for over 30 years. From 30 minutes to complete wealth management services using WealthCare, I have a financial solution for YOU. My rates start as low as $100 for 30 minutes and we can discuss any topic you would like.
Some things work in all types of situations, so why not work on some of those areas to improve your financial life. Here is a list....now you can get to work!
1. GET OUT OF DEBT...or at least start getting out of debt!!!
It is time to get that debt level under control. First, make a list of everything you owe. Next come up with a plan to pay everything off. Think it is to difficult, or even impossible? It's not. You CAN do it. If you are paying all of your bills right now, you can probably get out of debt faster than you ever imagined. But before you get too far along here, check the next tip.
2. Establish an Emergency Fund
If your get out of debt plan gets started BEFORE you have a decent emergency fund, it will fail. Most of the debt we are talking about with clients is credit card debt. In order to get out of the clutches of that type of debt, you have to stop using the cards! I realize that sounds simplistic, but real life says that if you don't have an adequate emergency fund you WILL use the credit card for your next 'emergency'. How much should the fund be? It depends on your lifestyle. A fully funded emergency fund would include 6 months of your family expenses. Depending on your situation you may start with less.
3. Check your Credit Report
You should check your credit reports at the three major credit reporting agencies on a regular basis. It costs you nothing. Federal law entitles consumers to a free copy of their credit reports from each of the three credit bureaus once every 12 months. Head to AnnualCreditReport.com and simply rotate the agency every four months to get a new credit report.
4. Review ALL of your spending
Check everything. All of your insurance policies....auto, homeowners, life, health...you know the ones. Don't forget your telephone and cable bills, your utilities, and your recreation and dining habits. Recently I met with a client and we found about $1,000 per month she could save by simply changing the way she did some things--with no change to her lifestyle!
Maybe it's time for some professional help...
All the leading financial publications say that if you need professional help you should seek out an hourly, on demand financial planner. Maybe you don't need a full time financial planner, maybe you don't want to turn your money over to someone else, or maybe you just want a second opinion.
I am here to help. I am a Certified Financial Planner and have been helping people with their money for over 30 years. From 30 minutes to complete wealth management services using WealthCare, I have a financial solution for YOU. My rates start as low as $100 for 30 minutes and we can discuss any topic you would like.
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