Queercents

Timing the market is a bad move.

Unless you are a student of Warren Buffet and have extensive experience in money management, I suggest forgetting about what the dollar is doing, worry not about the upcoming election (as if things really change when a Democrat or a Republican wins the White House), and stop waiting for the Dow to drop 250 points so that you can put your money in at the “right time.”

There is no “right time”, except now.

If you have money sitting on the sidelines, (i.e. a savings account, CD, money market) and are thinking about investing it for the long term, but only “when the time is right,” you are making a big mistake. According to recent figures I’ve read, there are over 2 trillion dollars on those “sidelines” just eroding away due to inflation and taxes. If you recall a recent article I posted, inflation has averaged almost 5% over most of the past century according to the Consumer Price Index (CPI) and I don’t anticipate many instruments at the bank getting that for you long-term (yes, my local credit union is offering a glorious 5.6% APY on a 12-month CD, but I said long-term). Furthermore, if you account for an after-tax net rate of return, based on your income, you could be getting less than even that. Remember, if you don’t beat 5%, you lose to inflation.

Jump into it! Read the rest of this entry »

You wouldn’t operate on yourself, would you?

Many people have asked me, “Why would I hire a financial planner? Wouldn’t it be better if I just invested in ‘no-load’ mutual funds, bought my own stock and signed up for term insurance on my own?”

Good question.

I have many “do-it-yourselfers” as friends, family and even clients. Specifically, with my clients who are of the mindset that they can handle things themselves, I have been hired, at the minimum, to be a guide, offer a blueprint or do an annual checkup.

For those of you who feel that handling your own investments (the E-Trade crowd) without professional assistance are, at the least, operating on yourselves amidst major surgery with enormous implications.

Nowadays, mutual funds have been so investor-friendly, moreover, advisor unfriendly, that the argument to do-it-yourself becomes even stronger.

Nowadays, many people ask, “what’s a good stock pick?…if I invest in this stock my buddy told me about, I should see 2000%!…I just put all my money in my company stock because I get a 15% discount.” Remember Enron? Not that your company operates in similar, slimy fashion, but you know what they say about putting all your eggs in on basket…

Nowadays, I hear the quote “I just buy term insurance and invest the rest.” According to the insurance commissioner in Oregon, 97% of the time term insurance doesn’t pay out. Meaning, only 3% of participants actually die within the term they purchased, and because the premium for the “cheap” insurance skyrockets once the term expires, most don’t renew. Is term insurance really what you “need?”

To answer the aforementioned questions, I propose the following:

Read the rest of this entry »

We Shall Overcome…

There are two major obstacles one must overcome when investing. No, it’s not Republicans and Democrats, although they have something to do with both obstacles.

The two obstacles are inflation and taxes.

The first obstacle, inflation, has a dramatic effect on your purchasing power over time. While I rarely quote wikipedia.org, I found their opening definition to be quite succinct. In the public’s definition, inflation refers to “a general rise in prices measured against a standard level of purchasing power.” As time goes on, we have all noticed how we just can’t buy what we could with that same dollar bill. Prime examples of how our purchasing power has eroded throughout history include house prices, stamps, gasoline, eggs and milk. Read the rest of this entry »

It’s never too late to start…but early is always better!

Recently, I finished a simple, quick read that had a profound impact on the way I think about money. I mentioned it in a prior column, but it bears repeating because the messages were so simple and to the point. “The Secret of the Millionaire Mind” asked me a question that I have callously incorporated into my repertoire like a boy who wears his mom’s bra. When you get done thinking about that one, think about this question, “do you have reasons, or do you have results?”

Often, certain clients will give me every reason a human can warp their mind into believing for why they “just can’t” pay themselves. From medical bills to vacations, (this, of course, with enough alcohol leads to more medical bills), big screens to big problems with the dog’s health, and, my personal favorite, a client who just purchased a shiny new Ford Mustang and cannot afford the enormous burden of a $50 monthly retirement plan while he’s roaming on his mobile! Read the rest of this entry »

All too often I talk with clients who have the opportunity to participate in their company-sponsored 401(k) and simply don’t.

“Even when there’s a match?” I ask.

“I can’t afford it,” they claim.

“You can’t afford not to,” I retaliate.

When a company offers a plan that allows you to contribute to your retirement in a tax-deductible manner (withdrawals are often taxable), it behooves you to take advantage, especially when they offer a matching program.

Don’t pass on the free cash! Read the rest of this entry »

You don’t have to be rich to create your own financial team. In fact, doing so is a relatively inexpensive, yet distinct way to becoming rich.

In many of the larger cities of this country, we have LGBT Chambers of Commerce ready to serve the needs of business owners and their referrals. Where I’m from, the Portland Area Business Association (PABA) consists of over 300 LGBT small business owners as members by offering a network in which to operate. This includes leads groups, monthly luncheons and after-hours gatherings. Many of the members are not only sound professionals, but also accountable to each other.

Take advantage of this opportunity! Read the rest of this entry »

Write down three words along the left margin of a piece of paper. You will want to remember these words, as they are the collective key to unlocking a financial debacle that is imprisoning our nation. Simple, easy to remember, yet seemingly impossible for some to internalize:

• Risk
• Cost
• Solution

Risk
The risk to which I am referring affects 60% sixty percent of all Americans, according to the Social Security Administration. The risk is that you will not be able to complete two of these next six Activities of Daily Living (ADL). You should write these down, too. Read the rest of this entry »

When I think back to my first job at an office and arts supply store at a suburban mall near Portland, Oregon I remember a book we sold titled “In the Kitchen with Rosie.” It was a collection of recipes that Oprah Winfrey’s favorite chef, Rosie Daley compiled to prepare a best-selling masterpiece.

It’s not that this was my kind of book or anything (I don’t even think I read it), but it inspired me as the kind of impact that a woman who started with so many strikes against her (Oprah) and succeeded to such a degree that her personal chef became a best-selling author. Oprah defeated the odds by listening to the voice in her heart and became a billionaire who has influenced millions of people internationally. Read the rest of this entry »