High Net Worth Individuals: Best Practices

learn how to maintain wealth

Becoming a high net worth individual (HNWI) is one thing; maintaining that wealth can be quite another. Here are some simple but often overlooked best practices for maintaining wealth.  1. Think why before how Don’t even think about how to grow or maintain your wealth until you understand your goals, comprehend your long-term needs and put your situation in context. Think about your financial “pain points.” How important is it to ease that challenge or pain? How will making a financial move affect your family? Why will making a move make you better off than you are today? 2. Understand how all your finances fit […] Read more »

Want to Retire? Make Your Money Work for You

Be honest. Don’t you think that most people spend way too much time and energy worrying about or trying to influence financial matters they can’t control? It’s true.  My advice is to not focus on financial matters you can’t control. Make Your Money Work for You. Focus on the things you can influence and that will make a big difference in your life. For example, you can’t control time, but you can control the time you spend preparing for retirement. You cannot control Social Security, but you can put money aside in a way that can provide a comfortable retirement whether or not Social Security is […] Read more »

Retirement Planning Starting Gate

retirement-planning-starting-gate

What’s the single most important thing you can do to start successful retirement planning? Just get started. As hard to believe as it might be, the single biggest factor in people not achieving a comfortable retirement is that they never make retirement planning a priority. There’s a great list of simple steps you can take to prepare for your retirement. The list is the free download, 21 Critical Retirement Questions Answered. But here’s something you can do first. Sit down with your spouse or significant other and see how many of these 20 statements you both can say “yes” to. Work on resolving any you […] Read more »

The Easiest Way to Create Retirement Wealth

Create Retirement Wealth

People who are far from retirement often widely misjudge the total savings they’ll need. A big reason for this is the pervasive impact of inflation over decades. We tend to assume a dollar is a dollar is a dollar. Not so. In 1970, the average cost of a new car was $3,900. By 1990 the average new car cost $16,000. Today the cost is well over $20,000. Let’s imagine that type of price inflation continues. It could drive the price of a car in 40 years to more than $100,000. What $1,000 Bought in 1970 Now Costs $6,000 Here’s another way to view inflation. According […] Read more »

A Quick Retirement Quiz

A Quick Retirement Quiz

      Can You Pass a Quick Retirement Quiz? Ready for retirement? You may not be if you can’t ace this quick retirement quiz. See how much you know about retirement and what you need to do to take care of your own retirement needs. Because people are retiring earlier and living longer, the average retiree will spend about ____ percent of adult life in retirement. Comprehensive retirement planning is multi-dimensional. It requires making choices about housing, health care, income and being sensitive to ______ planning issues. Today we tend to have _____ expectations about our retirement lifestyle. We expect to lead active lives […] Read more »

The Warren Buffet Way How He Really Invests For Those He Cares Most About

The following commentary from Fred Taylor is certainly worth a read I always read, with interest, the annual Berkshire Hathaway annual report to shareholders (www.berkshirehathaway.com). Aside from the “obvious” financials that one finds in all annual reports, it highlights the folksy style that Buffet writes in, is very short on typical corporate financial obfuscation and very long on common sense (more on this aspect later). I highly recommend to all a visit to their website and taking some time to peruse the report to absorb not only some of it’s flavor, but also the illumination on the technique and rationale that he and his partner, […] Read more »

The Devil Wears Nada

by Jim Parker Vice President, DFA Australia, Limited The global fashion industry is fickle by nature, pushing and then pulling trends to keep hapless consumers forever turning over their wardrobes. Much of the financial services industry works the same way. Fashion designers, manufacturers, and media operate by telling consumers what’s in vogue this year, thus artificially creating demand where none previously existed. What turns up in the boutiques is hyped as hip by the glossy magazines to make you feel like you “have” to buy it. Likewise, much of the media and financial services industries depend on fleeting trends and built-in obsolescence to keep investors […] Read more »

Watch Out for “The Golden Ticket Trap”

by Jim Parker, Outside the Flags Vice President, Dimensional Fund Advisors In a popular children’s story, the young hero pins all his hopes on finding one of a handful of “golden tickets” hidden among millions of candy bars. It seems many people approach investing the same way. The notion that the path to long-term wealth lies in locating secret and previously undiscovered treasures in the global marketplace of securities is one regularly featured in media and market commentary. One magazine, for instance, runs a feature called “Fund Managers’ Secret Stocks,” referring to supposedly “bargain” stocks the pros keep hidden. (How the stocks can be secret […] Read more »

4 Surprising Insights about High Net Worth Retirees

wealthy retires can struggle in retirement

Wealthy Retires Can Struggle in Retirement Did you know that only 13 percent of workers are very confident of having enough money to live on when they stop working[1]? That percentage is low even for people who have a high net worth. So let’s reveal some truths about retirees and workers who will soon face retirement. Insight #1: Wealthy People Often Struggle In Retirement I’ve seen it many times. Some wealthy people fail to understand the serious financial challenges that even their high net worth can’t protect them from when they retire.  They don’t see the many factors that can destroy financial comfort for anyone: […] Read more »

Surprise! No Selloff in 2013

DImensional Fund Advisors

DFA VP Wes Wellington, whose prose I’ve provided from time to time in my Commentaries, has written an excellent piece reviewing the past year and, as he usually does, focuses on the absurdities provided to us by the media and the financial pundits, their predictions and how those predictions actually worked out. January 7, 2014 Weston Wellington Down to the Wire The unusually strong performance of US stocks in 2013 was a welcome surprise for investors who are following a simple buy-and-hold strategy and a source of exasperation for many professionals caught flatfooted by the steady rise in share prices. It was the best year […] Read more »