Cultivate Your Financial Health

Wayne Firebaugh, CPA, CFP®

Some people believe money scores success in life. If that’s true, then you’re really only keeping score between your current and future selves. Financial planning allows you weigh the trade-offs necessary to achieve your goals both now and then. Consume too much now and you limit your future choices. Save all your money for later, your family unnecessarily sacrifices current quality of life and, more importantly, the memories and experiences that truly make life rich.brbr Just like your favorite board game, money has its own rules. However, money rules cover long stretches of your life, not just a single evening. Plus, break a money rule in an area such as income taxes, investment management, or risk management, and you lose much more than a turn. You could lose everything you’ve hoped to achieve. On Cultivate Your Financial Health, Wayne helps you understand the rules of money. You’ll learn how the choices you make now will increase or limit the choices you have in the future. read less

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Cultivate Your Financial Health Wednesday, October 1, 2014

Cultivate Your Financial Health Wednesday, October 1, 2014

Episode description not available.

Episodes

Cultivate Your Financial Health Wednesday, October 1, 2014

Cultivate Your Financial Health Wednesday, October 1, 2014

Episode description not available.

Cultivate Your Financial Health Wednesday, September 24, 2014

Cultivate Your Financial Health Wednesday, September 24, 2014

Episode description not available.

You Sure Can Pick 'Em , Not

You Sure Can Pick 'Em , Not

Why do you hire a stock broker? If you're the do-it-yourself type, maybe you try to do your own research and spend lots of time researching your picks and studying the charts provided by your online broker. Regardless of whether you hire advice or go it alone, you're probably looking for the next home run (or trying to avoid the next bear market). But, does all this research really help you earn higher returns than the average market participant? There are lots of studies suggesting it doesn't. Many people have been so convinced by those studies that they decide to go it alone with one of the indexed mutual fund companies (um um Vanguard). Would that be a good idea for your portfolio? What is an index anyway and how does an index fund work? And, despite the compelling evidence in favor of indexing, might there be something even better than blind adherence to a generic benchmark index?

Just the Two of Us , Not Anymore

Just the Two of Us , Not Anymore

This past week my daughter and I shared a birthday. She turned 12 and I turned, well I turned something much more than 12. Much of our financial planning efforts concentrate on the transitions within our lives. Is there any bigger transition than having children? During this week's show, we will discuss important financial planning actions you should take when you transition to parenthood. Not a parent? Don't decide to tune-out because many of these recommendations are just as valuable for your life's transitions.

Just Goin' Through a Phase

Just Goin' Through a Phase

There have been several troubling surveys released over the past week or so. Are we saving enough? NO! Are some of us saving at all? Less than you might hope or think. Also, how savvy an investor are you? Many confess to being less than savvy. OK, if you’re one of the honest ones who admit your lack of knowledge what do you do about it? Do you always pay off your credit card? Good for you. But, there may be another high APR obligation looting your bank account. AND you don’t even know it – until today that is. Because we are gonna blow the lid off of it. Ever heard or used the expression “he or she is just going through a phase”? If you have teenagers, of course you have. Well, retirement can have phases too – we’ll talk about some of those phases and how they might impact your money.

You Have to Pay Eventually

You Have to Pay Eventually

Not having to pay taxes as you accumulated money in your IRA or 401k really helped your money grow faster. But, every tax dog must have his day so eventually the IRS demand that you begin taking money out of your retirement accounts. Wayne will tell you when to begin taking money and how much you should plan on withdrawing. Wayne will also put into perspective how retirement plan withdrawals can affect your Social Security benefits. While we're talking retirement accounts, consider that many people have various stages during their retirement years - phases where they're still relatively young and active and phases where health demands that they slow their pace. Wayne will describe some of these phases and how you might need to adjust your cash flow plan accordingly.

What Did You Expect

What Did You Expect

Do you have a financial advisor? What exactly do you expect that advisor to help you do? Relationships often go wrong because of unfulfilled expectations. If you've hired a financial advisor in expectation that they will help you pick the right investments or avoid the next big market decline, you are (probably) headed for disappointment. Wayne describes what you should reasonably expect your financial advisor to do and what are the two general types of investment professionals. All the newly minted high school grads are now headed off to college. It's a bitter-sweet time for their parents. The cash flow demands of writing the college check often makes the stress of family change even worse. Wayne will tell you how the financial aid system really works so you don't get snookered by advisors who convince you to buy some financial product in an effort to get a better aid package.

Two Out of Three Isn't So Good

Two Out of Three Isn't So Good

Traditional portfolio planning often concentrates on the proper balance between tolerable risk and desired returns. Rational investors accept that higher portfolio returns require commensurately higher assumptions of portfolio risk. Unfortunately, such traditional portfolio thinking possesses at least two significant flaws. We'll talk about these two omissions and what you need to do to cultivate your portfolio. The kids are getting ready to head off to college. If you have a college student or a soon-to-be college student, you've no doubt wondered how the financial aid system really works. Wayne will tell you just that and more importantly how to protect yourself from those advisors who say their products can increase your aid eligibility. You've always had to be careful when rolling money from one retirement account to another. A new court decision means you have to be doubly so. We'll discuss the proper way to do a rollover so you don't get stuck with a big tax bill.

Cultivate Your Financial Health Wednesday, July 30, 2014

Cultivate Your Financial Health Wednesday, July 30, 2014

Episode description not available.

It's All About the Math

It's All About the Math

Planning for retirement is all about the math. Just like grade school your retirement equation has two sides. However, in grade school the only stakes were a missed recess. Not understanding the retirement equation can cause you to run out of money. Have you considered the retirement equation and thought that one way to avoid running out money was to purchase some sort of annuity? Do you feel like you fully understand how an annuity works? Wayne will describe some common features of annuities so that you can make better decisions about their proper place in your retirement plan. Together, we'll discuss the various types, common provisions, and costs of annuities. Wayne will also describe how the IRS taxes money you take out of your annuity.

What Do You Mean by Cultivate

What Do You Mean by Cultivate

On our inaugural show, we'll discuss how true wealth cultivation must balance the tension between your current financial reality and your desired financial destination. Developing and implementing a financial plan is how you manage that tension. Since successful investing is critical to the success of most financial plans, Wayne will tell you about the three choices you must make with respect to every investment alternative. You can at most pick two, so choose carefully. Wayne will help you understand the trade-offs that many people do not fully contemplate. Financial planning can be technical. It includes elements of tax, investment management, cash flow analysis, and insurance. Many people are comfortable handling one or more parts of the process by themselves. Others, however, need help putting it all together. Wayne will describe the two general types of financial advisors - how they get paid and, more importantly, whose interests do they really represent.