Author - Jim Heitman, CFP®

1
Money And Children – Teaching Kids To Manage Cash
2
4 Ways to Reduce Your Credit Card Debt
3
3 Tips To Help You This Tax Season
4
How Is My Financial Advisor Compensated?
5
The False Perceptions Of The Wealth Effect

Money And Children – Teaching Kids To Manage Cash

The ability to manage cash flow is an extremely important skill for everyone. If you can help your children develop this skill you will give them something that will benefit them for the rest of their lives. The first problem in teaching this skill is that kids have no cash to manage. So how do you do it?  Give them a bit of income. Yep, give them an allowance. The allowance is one of the strongest teaching tools you can deploy in teaching your children good money skills.

The allowance gives you, the parent, a way to teach basic cash …

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4 Ways to Reduce Your Credit Card Debt

We Americans have a lot of revolving debt, about 850 billion dollars worth of it. Most of that is credit card debt, and more than a bit of it is overdue. If you are contributing to that ugly pile of overdue debt, it is time to work on getting yourself out from under that ugly pile. Excess debt can damage your ability to save, invest, and achieve the things you really want in the future.

Here are a few tips to helping get out of the hole:

  1. Fix the cash flow. If you can’t get yourself to a positive cash
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3 Tips To Help You This Tax Season

As an investor you take on risk in the hope of receiving sufficient reward to justify that risk. That is just basic investing; where there is no risk there is no reward. Another basic reality of investing is that governments love to tax any profit you happen to make. It may not seem fair that you take the risk and they get some of the reward (ok, it more than seems unfair) but, “that’s the cost of living in a civilized society” (or so say those that take your profits).

The reality of investment-related taxes means that tax planning is …

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How Is My Financial Advisor Compensated?

Sometime before the new year Dan Hite of Tedco software had asked me to explain the differences in financial advisor compensation. I asked if he was trying to tell me my fees were too high, but it turns out that wasn’t what he meant at all. Turns out that my friend Dan, like 98% of people, was trying to understand how advisors get paid. The basic thing you need to know is that the client pays the advisor; the question is: how convoluted a path does the money take getting from the client to the advisor.

Why is this even …

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The False Perceptions Of The Wealth Effect

The next Financial Psych-out is not as pervasive as the “proxy money” effect, but still impacts most of us at some point in our lives. (I have met folks that have gone through this process several times.) It is called the “Wealth Effect”.

The Wealth Effect
“Asset Bubbles” form when the short-term demand for a given asset outstrips the supply. Eventually the market for nay given asset will stabilize, either by a drop in demand, an increase in supply, or some combination of the two. The problem is that the sudden increase in some asset’s value creates the impression that …

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