Category: Financial Planning
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Fixing the problems of financial do-it-yourselfers
New Jersey financial adviser Michael Kay wrote in yesterday’s Wall Street Journal “Do-it-yourselfers often approach advisers as a last resort when they have an especially complex or urgent financial issue, and advisers should proceed carefully with this type of client.” Since the launch of my own practice six months ago, I notice that a high…
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How do you know who to trust for financial advice?
Tonight I finished a 13 hour continuing professional education course on the topic of ethics in the financial services industry for baby boomer and senior clients. The scope of scams perpetrated on seniors covered in the course leaves me dumbfounded. In each of these many cases, the victim made a critical mistake in trusting the wrong person. …
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NJ state workers need to revise their financial plans
(This post follows yesterday’s announcement that the state Supreme Court ruled that the state is not required to make negotiated pension plan contribution. More at NJ.com). “The future isn’t what it used to be.” New Jersey state workers and other participants in the state pension system (like teachers) who were promised solid pensions will receive less…
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Tax planning at the time of layoff
An accountant shared a sad story that reminds me of the need for tax planning by ordinary folks. A 40 year old middle income single guy was laid off from his corporate job last year but apparently did not seek professional financial help until now. He took money out his 401(k) for living expenses without doing…
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Facebook messenger as a divorce tool
A New York judge recently ruled that a divorce notice could be served by Facebook message. I suggest that Facebook can actually be be used for even more. There is no reason why Facebook messenger would not be a suitable communication platform for peaceful divorce discussions. I have two articles on alternative divorce: Controlling the…
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Why most people do not invest
“few people do other things financial advisers recommend, like waiting until they’re 70 to take Social Security, opening 529 college savings plans and making good use of Roth IRAs, he says. The real problem is income stagnation and “a widening gap between the affluent, who can afford to save and invest for retirement, and everyone…
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Why middle-income tax planning is dead
Bloomberg and Wall Street Journal ran articles this week that compile and analyze federal income tax data. These articles were meant for use as an exposé of policy tax policy. I skipped the social policy discussion entirely and I looked at the data from the perspective of a small solo CPA’s income tax service. It is interesting…
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Financial Planning Considerations When Your Business is Losing Money
This post was inspired by the stories of some of my neighbors and clients in southern New Jersey. Most were struggling with a weak economy before super storm Sandy hit in late 2012. Those that re-opened over the next few years face continued business losses and the prospect of continued weakening of the local economy…
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How to fix your small business 401(k)
This week President Obama’s administration gave a strong endorsement of the Department of Labor’s plan to impose fiduciary obligations on investment brokers and advisors working with retirement plans. The controversial proposal is based on a belief that new rules are a needed consumer protection to prevent billions in costs due to bad advice. Most consumer advocates…
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Why Freedom Benefits opposes Obama’s retail investing reform
Today’s Wall Street Journal carries a sharp criticism of President Obama’s plan to reform retail investing. The piece called “Obama vs. Savers” highlights the restrictions that the proposal will place on investors. Since Freedom Benefits is focused on consumer education and charges neither commissions nor asset-based investment management fees, you would think that we support…