Retirement Planning for Small Business Owners

If you own a small business, chances are that it is tying up the majority of your wealth at the expense of your personal financial security.  That is what a recent survey by CNBC and the Financial Planning Association (FPA) found.  The poll sampled 178 financial advisors across the U.S. who provide services to small business clients aged 35-70 and found that on average, 70% of small business owners’ wealth is invested in their companies.  Many of the advisors expressed that this creates a high degree of financial risk for these business owners and their families. Read more

Marriage Financial Planning – Beyond the Wedding Plans

Many couples decide to get married without giving a lot of thought to financial planning. If your love is strong, you can figure out these little details, right?  Maybe, but by taking the time and energy to talk about your financial life together before the wedding day, you are giving yourselves a much better chance of marital harmony in the coming years.  If you and your betrothed have different attitudes, values, habits, and goals around money, it is much better to find this out now than after you have joined your financial destinies. Read more

Investing for Beginners: Index Mutual Funds

If you are new to investing, an index mutual fund is a logical place to begin.  Index funds have comparatively low costs and carry less risk than actively managed funds.  They obviate the need to pick outperforming stocks, since the fund’s purpose is simply to mirror its index through diverse investments.  Index funds also make it easy to maintain the asset allocation that is most appropriate for your needs.  Warren Buffet touted the virtues of the index fund in his 2014 letter to shareholders:  “The goal of the non-professional should not be to pick winners – neither he nor his “helpers” can do that – but should rather be to own a cross-section of businesses that in aggregate are bound to do well. A low-cost S&P 500 index fund will achieve this goal.”

Read more