Financial advisors

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#192 Why You Need a Fiduciary Advisor

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Guest Paul Auslander the Director of Financial Planning at ProVise Management Group, LLC and the former FPA President and Chairman of the Board, joins the show to discuss why it is so important to hire a FIDUCIARY advisor--one who puts YOUR interests first!

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Paul and I discussed the startling report from the The Financial Planning Coalition, which highlighted the fact that some financial service providers “are contributing to the confusion in the marketplace by identifying themselves as financial planners but not providing financial planning services.” If you want to read more about the report, check out my post "Investors are 'Confused and Harmed'".

We love guests, but we also love your calls. Melanie is a second-time caller, seeking additional advice on how to invest her husband's retirement money. E-mailer Lupe needed help getting started with investing, while Keith is trying to juggle the income tax impact of his 10 rental properties.

Thanks to Ben and Paul who weighed in on collecting Social Security on a former spouse and to Caroline, Beverly and Gail, who wrote in about my recent article "Estate Planning Checklists".

Jan and Debbie wrote in about their retirement accounts and Rich wanted to know about 2015 limits for Roth IRAs.

Thanks to everyone who participated and to Mark, the BEST producer in the world. Check out Mark's first-producing credit for this CBS Evening News segment that aired recently. If you have a financial question, there are lots of ways to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE 

Radio Show #122: Financial Independence Day

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In between parades, fireworks and barbeques, check out this week's show, where we help callers declare Financial Independence Day!

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Thanks to everyone who participated and to Mark, the BEST producer in the world and Christina, who is vying for "Intern of the Year". If you have a financial question, there are lots of ways to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE 

Radio Show #121: Mid-year update: Rebalance, reallocate, relax!

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It’s half time! The Dow posted its strongest first half of the year since 1999 and the S&P 500 logged its best first half performance since 1998. It was perfect timing (but not market timing, of course!) for Mitch Tuchman from Rebalance IRA and MarketRiders to join us for a visit. Tuchman’s two websites offer a great deal for those investors who need guidance, but don’t want to pay through the nose for it!

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After Mitch's segments, we fielded a bunch of allocation/retirement questions from Tom from IL, Donna from MN, Howard from KY and Mark from NY. Tim from NY has ample assets and wants to make sure that he has the proper allocation, so that he can leave money to his 17 year-old grandson.

Steve from MN wanted advice about Vanguard funds, while Aurora is trying to select among various index funds.

Alexia from Buffalo is weighing the purchase of a single-family home versus a two-family home, which would provide income.

Finally, Nhu is about to enter college and wanted advice on credit vs. debit cards and general advice about how to handle money, as she enters a new phase of her life.

Thanks to everyone who participated and to Mark, the BEST producer in the world and Christina, who is vying for "Intern of the Year". If you have a financial question, there are lots of ways to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE 

Radio Show #120: Bond bloodbath

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The Federal Reserve spoke and the bond market was not amused. Chairman Bernanke said that if the central bank’s projections were correct and the economy continues to improve, the Fed could begin to taper its bond purchases at the end of this year; and the program could conclude in mid-2014. Bond yields spiked to 2.5 percent and bond prices, which move in the opposite direction, sank.

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The rise in 10-year Treasury bond yields from 1.6 percent in the beginning of May to a 15-month high of 2.5 percent in mid-June might not seem like a big deal – just 0.90, right? But it’s important to realize that it’s a 56 percent move in just 7 weeks!

Since a one percent increase in yields could cause a bond fund to decline by 5 to 10 percent, depending on the type of bonds you own, the questions about bonds are starting to pour in. Summing up most of those e-mails was Brian, who knows he has to rebalance, but is fearful of the bond market.

The retirement planners were out in force: Patricia from MO is trying to plan for an adequate, steady income if her husband predeceases her; Gary in NY is wondering whether to take 20 percent of his $1 million retirement savings and put it into a guaranteed annuity; Mike from CA wants to know if his nest egg is sufficient to supplement his pension; and Doug from MD is contemplating retirement, after a big change in his life.

We fielded home purchase and mortgage questions from Daniel in Arkansas and Stephanie in Texas; soothed Margaret and Jan, who are both worried about the stability of Social Security (fear not!); and chided Jason for wanting to use off the shelf software to save money on estate planning - bad idea!

Thanks to everyone who participated and to Mark, the BEST producer in the world and Christina, who is vying for "Intern of the Year". If you have a financial question, there are lots of ways to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE 

Radio Show #119: Father's Day financial advice with "Big Al"

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In honor of Father’s Day, I asked my Dad, “Big Al” to join us for a couple of segments. My father was a stock options trader and specialist on the floor of the American Stock Exchange, which was how I caught the bug of the business. For a guy who had a risk-taking career, its notable how conservative he is about the rest of his financial life…

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After Dad got us warmed up, we talked to Gloria from AZ about what to do with a variable annuity she purchased a couple of years ago. Here’s what not to do: buy any more insurance products from salespeople trolling for commissions!

Pete from CT and David from TX are planning to retire from municipal jobs are each of them is wondering how to plan for the future.

Paula from NY is weighing a move out of an expensive real estate market and wants to know what she should consider before making this big decision.

Barry and Jesse wrote in asking about estate issues, to which I provided my stock response: PLEASE see an estate attorney…not the guy or gal who closed your re-fi or your college buddy who is a divorce lawyer. This is important stuff, so it is imperative that you engage an expert!

Vincent is concerned about the bond portion of his portfolio. Are there ways to protect some of his money without attempting to time the market?

Should Carolyn refinance her home again, in order to shave time off the loan? The answer depends a lot on cash flow. If the refinance puts too much pressure on your bottom line, it may not make a lot of sense.

Thanks to everyone who participated and to Mark, the BEST producer in the world and Christina, who is vying for "Intern of the Year". If you have a financial question, there are lots of ways to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE 

Radio Show #118: Mortgages, annuities, investing

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Stock indexes closed out the week on a high note, after a Goldilocks jobs report, but our listeners have more on their mind than one monthly employment report!

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Jeff from IL is a fan from the 404 show, which is why he calls me “Aunt Jill”. His wife started a new job and has the choice between a defined contribution plan and a traditional pension plan—which makes more sense?

Ashok from TX has extra cash and is considering TIPS: yea or nay? (More info on TIPS can be found at the government website www.treasurydirect.gov).

Gary is considering whether to borrow from his 401 (k) to pay off his mortgage (boo!) and J is not sure about refinancing a $47K mortgage.

Kathy from NY is selling her farm and needs a place to keep the proceeds before tapping them for another land purchase.

Can Mia from RI grab the early retirement being offered? The answer is a resounding “maybe!”

Jess from IL has an index annuity and is not sure whether he should pay a fee to get out, while Marti’s “advisor” is pitching a new bond fund, now that her annuity interest rate has dropped.

Shell and Walter wrote in about early withdrawals  and beneficiary rules of IRA accounts. The IRS web site has a good rundown on early withdrawals. With regard to a spouse who inherits an IRA, there are 4 different options:

Your ultimate course of action will be determined by your age, the age of your spouse, your income needs, the timing of your need for income from your inherited IRA assets, and the type of IRA you inherit. If you are the spouse of an IRA owner, you generally have four options from which to choose, but you should consult an advisor or a CPA before selecting the option, because each has tax consequences and some options are irrevocable.

1. Assume the IRA

2. Roll over the assets into a new or existing IRA in your name

3. Transfer the assets to an inherited IRA

4. Disclaim (decline to inherit) all or part of the assets

Scott, Jim and Chris wrote to comment about my recent article “Why everyone should watch the ‘Retirement Gamble’”. If you missed this TV program on PBS, you can access it here.

Thanks to everyone who participated and to Mark, the BEST producer in the world. If you have a financial question, there are lots of ways to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE 

Radio Show #117: Cash dilemma: Dollar cost average or lump sum?

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With markets gyrating all over the world, investors sitting on cash face a tough choice: invest a little bit at a time, or all at once? The question of dollar cost averaging versus lump sum investing has some empirical evidence to help out, but just as important is your emotional state.

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Thanks to everyone who participated and to Mark, the BEST producer in the world. If you have a financial question, there are lots of ways to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE 

Radio Show #116: Memorial Day, retirement planning

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Memorial Day commemorates the men and women who died while serving in the American military and originated in the years following the Civil War. I know that many people think of the day as the unofficial start of summer than as a day to remember those who served our country. Try to make a point of remembering our fallen soldiers today. Maybe that means attending your town's parade or thanking a soldier who served or even just bowing your head for a moment to honor all of the brave souls who gave so much.

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It was fitting that we kicked off this weekend’s show with a call from Glen, who is transitioning from the army into civilian life. He has done a terrific job saving for retirement and I just added a few finishing touches on his allocation.

On the retirement front, we had a flurry of inquiries. Irvin from MD has plenty of retirement income, which is why it’s curious that an advisor is recommending a variable annuity (sigh). David from AZ is in terrific shape for retirement ($2.4 million squirreled away will do it every time!); Joe is ready to roll over his $650K employer plan into Vanguard; Tim is worried about the bond market collapsing, and James is trying to weigh whether he should pay down two different mortgages.

Louie and Amanda are starting their financial lives early – we try to make it as easy as possible for them to start saving efficiently and at a low cost. You really can’t go wrong with Vanguard, T. Rowe Price or Fidelity, as long as you choose index funds, so Jeff shouldn’t fret too much about it.

Eugene from Long Island needs to make sure he is comparing his Franklin Templeton fund to the correct index. This led to a friendly reminder that your banker may not have to put your interests first. It’s always best to ask any financial service professional whether he or she owes you a fiduciary duty.

Fred wrote in about his disappointing experience trying to get underwritten for long term care insurance, which can be frustrating.

Thanks to everyone who participated and to Mark, the BEST producer in the world. If you have a financial question, there are lots of ways to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE 

Radio Show #115: Stock index highs (ho-hum, again?)

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This may seem like heresy from a former investment advisor, but let’s be clear: Not everyone needs a financial advisor. If you have the interest, the discipline, the time and the intelligence to manage your own financial life, then you should do it!

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That’s what I told Mayer from CA, who wanted to know whether he should fork over $2,500 for a "deep-dive" with a financial advisor and David from Delaware, who is happy managing his money with dividend reinvestment plans (DRIPs).

I’m not so sure about Faith, who probably needs a second opinion for her current advisor and Rita, who is trying to figure out whether to get back into the stock market after selling out last fall. I’m guessing that 34 year-old Alex, who has $500K in cash because he is scared of the stock market, might also benefit from working with an advisor. (It’s not that I am anti-cash – after all, I told 77 year-old Paddy to stay put with his money market account, because he self-identified as someone who has a low tolerance for risk.)

We fielded real estate/mortgage pay down questions from Brad in Arkansas, Vanessa in Colorado and Victor in Washington.

Katie asked a slew of questions about her financial life, including what is the appropriate amount and type of life insurance and what are the rules around opening a non-retirement account?

Margie and Kendall weighed in with questions about revocable trusts; and Sandra and Irvin provided me with ample opportunity to rant against variable annuities.

Thanks to everyone who participated and to Mark, the BEST producer in the world. If you have a financial question, there are lots of ways to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE 

Radio Show #114: Mother’s Day, LinkedIn tips, stock records

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Want to know how to make the most of your LinkedIn profile? Guest and branding expert Jason Seiden of Ajax Workforce Marketing has come to the rescue!

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I met Jason at  LinkedIn's FinanceConnect:13 in New York, where I had to admit in front of a room of 350 people, that my LinkedIn profile was terrible! Enter Jason, who laid out three basic questions that every LinkeIn user should ask:

  1. What do you do?
  2. Who do you serve?
  3. What do you want to communicate to the people you want to attract?

Note to self: Add "Update LinkedIn profile" to the to-do list!

I bet Mark from CA and Matthew from MI have no problem with social media, but the 20-somethings needed help with their new retirement plans. We talked about contribution levels and allocation.

The bombshell of the show was that I am "the other woman" in Lyle’s life, who found us on WBAL in Baltimore, MD. Lyle has been catching up on the show by downloading older podcasts (you can do that here). Meanwhile, he and his wife are selling rental property and would like to invest the proceeds for income.

Do Roxanne and her husband need their current life insurance policies? They are in their mid-50’s and the need for coverage is diminishing with every year of saving, while Cary from MD asks about lump sum investing vs. dollar cost averaging (DCA).

According to research from Vanguard, two-thirds of the time, investing a lump sum yields better returns than putting smaller, fixed dollars to work at regular intervals. Then again, one-third of the time DCA is better, so choose carefully.

Thanks to everyone who participated and to Mark, the BEST producer in the world. If you have a financial question, there are lots of ways to contact us:

  • Call 855-411-JILL and we'll schedule time to get you on the show LIVE