Whether appearing in your mailbox or your browser, financial information inundates us daily, adding to the papers and information (virtual or real) you already have. Some of it is important; some of it is not. Not only should you strive to reduce the amount of paper and computer files that you retain, but you need a system for organizing everything that you decide to keep. Not only are we inundated with information, our lives require more passwords than ever. Time to confess: I have far too many passwords (financial accounts, online shopping, subscriptions, kids’ schools, activities . . . the list goes on). I have wasted a lot of time trying to find or remember them all, and I worry about online security. Your passwords need to be secure, whether you write them on a piece of paper (keep the list hidden far from your computer) or you use a…
Financial Truths To Keep In Mind
Managing your financial life is not a “set it and forget it” exercise. You must educate yourself and stay engaged. As you become more conversant with concepts, many simple financial truths are worth remembering: The importance of time: Compounding is powerful. The importance of risk and return: There are many types of risk. The importance of discipline and conviction: Stay true to your plan. The importance of patience: Study your investment decisions and don’t rush. The importance of value: Value is not what you paid for something. It is what someone else is willing to pay for it. The importance of supply and demand: Both have an impact on value. The importance of expectations: They also drive value. The importance of liquidity: How easily something can be converted to cash is key. The importance of total return: Look at both appreciation and income. The importance of taxes: Timing and keeping…
Serving as a Financial Caregiver
Women wear many hats. The COVID pandemic was a stark reminder of how many of us serve as caregivers. The type of care we provide has also expanded. As our population ages and our financial lives become increasingly complex, financial caregivers are more common. Defining and understanding what the role entails is essential. Have you been asked to serve as a financial caregiver? Are you considering asking someone to serve as a financial caregiver for you or a loved one? The Consumer Financial Protection Bureau (consumerfinance.gov) offers four free guides explaining what it means to serve as a trustee, power of attorney, guardian of property, and a government fiduciary (for Social Security and VA benefits.) A common trait of these types of financial caregivers is that they involve a fiduciary duty. These four guides explain fiduciary duty and offer helpful suggestions on how best to serve in these roles. Guides…
Volatility
The Chicago Board Options Exchange, or CBOE, created the VIX® to measure expected volatility for the US stock market. It is calculated on a real-time basis based on the prices of put and call options for the S&P 500® index over a rolling 30-day period. The VIX® is the global standard for measuring volatility. It is also called the Fear Index because it spikes when markets are turbulent.
Holiday Tipping Guide
The holidays are joyful and also a little stressful. In addition to getting a head start on shopping, plan your holiday tips early. Holiday tips are a nice way to say “thank you” to those who help us out during the year. Many have questions about whom to tip during the holidays and how much to give. Here are a few thoughts: For those who help you out regularly – dog walker, trainer, hair stylist, babysitter, piano teacher – tip the equivalent of one service or session. For nannies or housekeepers who work with you more than once a week, consider one week’s pay as a holiday bonus. For teachers or coaches, consider pooling voluntary contributions from parents and putting the funds toward a gift card to be given at the end of the season or at the end of the school year. For other service providers that you use…
Financial Caregiver: Understanding Your Role
As our population ages and our financial lives become increasingly complex, financial caregivers are more common. Defining and understanding what the role entails is important. Have you been asked to serve as a financial caregiver? Are you considering asking someone to serve as a financial caregiver for you or a loved one? The Consumer Financial Protection Bureau (consumerfinance.gov) offers four free guides explaining what it means to serve as a trustee, power of attorney, guardian of property, and a government fiduciary (for Social Security and VA benefits.) A common trait of these types of financial caregivers is that they involve a fiduciary duty. These four guides explain fiduciary duty and offer helpful suggestions on how best to serve in these roles. Guides for Different Types of Financial Caregivers
An Email Hack – What to Do
It all started when I received the dreaded text message …”I received a strange email from you”… My friend shared a copy of the fraudulent email content. Within minutes, I received notifications from dozens of friends, through email, text, DMs, and phone calls. Whether it was someone from one of my two non-profit boards, parents of my kids’ former teammates or classmates, members of my book club or old paddle tennis teams, or friends from high school, college, or the neighborhood, I heard from a lot of people on my contact list. I appreciate everyone looking out for me. After I took a deep breath, my first thought was, “what should I do now?” Fortunately, a neighbor who helps me with IT consulting texted me as soon as he received the fraudulent email. He walked me through the first steps: Update your password on your email account. Let friends know…
‘Tis the Season: Helpful Tips on Holiday Tipping
Tis the season for tipping. It is a nice way to say “thank you” to those who help us out during the year. Many have questions about whom to tip during the holidays and how much to give. Here are a few thoughts: For those who help you out regularly – dog walker, trainer, hair stylist, babysitter, piano teacher – tip the equivalent of one service or session. For nannies or housekeepers who work with you more than once a week, consider one week’s pay as a holiday bonus. For teachers or coaches, consider pooling voluntary contributions from parents and putting the funds toward a gift card to be given at the end of the season or at the end of the school year. For other service providers, you could double the tip that you would give other times of the year. Every year make a list of holiday tips…
Email Hacks: What to Do
Numerous schemes have emerged to take advantage of people’s vulnerability due to COVID-19. Examples include phishing emails referring to urgent pandemic updates, robocalls from the Department of Public Health, texts related to unemployment claims, phony DocuSign requests, and, of course, email hacks. Most experts anticipate that the incidence of fraud will continue to escalate. For the past six years, I have written and spoken extensively about getting one’s financial house in order. Passwords, security, and identity theft protection are all topics that I address. I am well versed in the subject, but despite this I discovered that my personal email was hacked. Data breaches are unfortunately common – we have all seen the headlines. As surprised as I was that this happened, I was equally surprised at how little help I received from my provider to address the issue. While I took some steps right away, there were also others…
New Year and New Job? Great Tool for Budgeting
Have you received a new job offer? Considering a job transfer to a new state? This online calculator from payroll processing provider ADP helps you determine what your take home pay will be every pay period. There is also a version for those who are paid hourly. Such a helpful tool as you build your budget for your next chapter in life. To give it a try, click on the link below: ADP Take Home Pay Calculator