Anyone who has gone through a divorce knows how emotionally challenging and financially complex it can be. While attorneys handle the legal aspects, a Certified Divorce Financial Analyst® focuses specifically on the financial implications of divorce. This specialized designation equips professionals with the expertise to guide clients through the intricate financial aspects of divorce proceedings, ensuring better outcomes for their financial future.
Anna Marie Mock, a fee-only certified financial planner at Highland Financial Advisors, discusses the dynamic interplay between art and science in financial planning. Drawing inspiration from Leonardo da Vinci's philosophy that "everything connects to everything else," she emphasizes that financial planning is an art involving subjective goal-setting and a science-driven by objective analysis tools. In this video, Anna explains how the scientific method can be applied to financial planning, using equity compensation as a concrete example.
What are your thoughts, feelings, and beliefs about money? What about your partner, and do they differ from your own? Sometimes, the conflict we experience around money in our personal lives can be attributed to incongruent money scripts with those with whom we share finances. Let’s dive into the term money script and how understanding it can help us achieve our financial goals.
In talking with clients about the benefits their employer provides during the open enrollment season, one often overlooked benefit if clients have dependents is the Dependent Care Flexible Spending Account (FSA).
Health Savings Accounts (HSAs) are not only a savvy investment option but also offer numerous benefits, especially for high-net-worth families. An HSA is a tax-advantaged savings account designed for individuals with high-deductible health plans (HDHPs) to help cover out-of-pocket medical expenses. While the utility of HSAs is universal, they hold advantages for high-net-worth families and have steadily grown in popularity since their inception.
The current interest rate environment has driven many to explore high-yield money market accounts and certificates of deposit (CDs) as viable investment vehicles. With interest rates on these instruments at levels unseen in over a decade, it's easy to understand the appeal. However, there is an irony in using these vehicles as long-term investment strategies, especially when compared to the potential tax advantages the stock market offers.
During my first year in college, I read my first investment book, "The Intelligent Investor" by Benjamin Graham, widely regarded as one of the greatest stock traders ever. Filled with excitement, I took copious notes, convinced I had stumbled upon the secret to success in the stock market. With this new knowledge, I eagerly deposited $600 into a trading account and made my first trade, purchasing ten shares of Columbia Sportswear Company stock ($COLM) at $56.80 per share.
As a financial advisor, I often hear clients express concern over the Federal Reserve's interest rate decisions and how these might impact their long-term investments. While it's natural to be attentive to such economic indicators, focusing solely on interest rate changes when planning your long-term investment strategy can be a misstep. Here’s why it’s important to maintain a broader perspective.
Rummaging around your stuffed filing cabinet, you come across a stock certificate. A glint of excitement enters as you think about the potential value of this forgotten relic. It is not uncommon to stumble upon an old stock certificate in its physical form. There are steps to take to research if the old stock certificate is worthless or if it is a lottery ticket.
Picture this: you stand at the tee box, surveying the undulating terrain ahead with excitement and apprehension. With each club selection and calculated swing, you inch closer to the elusive hole, navigating obstacles and seizing opportunities. Little do you know, every decision you make on the course mirrors the principles of prudent financial management, offering valuable insights into crafting a secure and prosperous future.
After spending 17 years lying dormant underground, a new generation of Brood XIII cicadas will soon emerge across large swaths of the eastern United States. This phenomenon is one of the most remarkable examples of cyclical events in the natural world.
It's fascinating to think that the last time Brood XIII was about to turn in for its 17-year slumber, Steve Jobs introduced the iPhone to the world for the first time. A year later, a mysterious person named Satoshi Nakamoto wrote a paper describing something he called Bitcoin, which began trading for less than a penny.
It's January 1, 2018, and you just won the lottery for $5,000,000.
You are sitting in our office, discussing your plans for the money, and you decide it's a good idea to invest the proceeds for the long term.
You decide on a portfolio of 25% US Bonds, 60% US Stocks, and 15% International Stocks.
After feeling pretty good about your lottery winnings and the investment decisions you made, you leave our office and treat yourself to a meal.
The fascinating interplay between human decision-making and financial outcomes has long intrigued behavioral economics and psychology scholars. However, research has expanded this inquiry beyond human subjects, delving into the behavior of our primate cousins, specifically Capuchin monkeys. Situated on an island off the coast of Puerto Rico, researchers conducted an experiment seeking insights into economic behaviors, risk psychology, and the recurrence of financial crises in our societies, shedding light on the parallels between monkey behavior and human decision-making processes.
In personal finance, the attraction of cash equivalents for long-term goals has persisted as a seemingly safe and stable investment strategy. Cash equivalents, including savings accounts, money market funds, certificates of deposit (CDs), and Treasury bills, are often viewed as low-risk options that offer liquidity and "preservation of capital." However, the belief that investing primarily in cash equivalents can secure one's financial future in the long term is a myth that should be challenged.
As the April 15th tax filing deadline rapidly approaches, so does the 2023 Roth IRA contribution deadline. Roth IRAs are among the most efficient yet under-utilized retirement saving strategies. By saving after-tax money in a retirement account, individuals can enjoy tax-free investment growth and distributions in retirement.
I'm reading Daniel Kahneman's book Thinking, Fast and Slow. Kahneman is the 2002 Nobel Prize-winning psychologist and economist known for his work in behavioral economics. One section of the book discusses how investing can resemble gambling when individuals overestimate their ability to predict market movements, a phenomenon deeply connected to Daniel Kahneman's concepts of the "Illusion of Skill" and "Illusion of Validity." These cognitive biases describe the human tendency to overvalue our ability to make accurate predictions or decisions in situations where chance plays a significant role or the information is unreliable.
Sarah, a savvy pharmaceutical executive, has accumulated Non-Qualified Stock Options (NQSOs) and Restricted Stock Units (RSUs) as part of her compensation package. Sarah had always been meticulous with her finances and records of her stock option grants, exercise dates, and the fair market values at the time of exercise. As her stock compensation vested over the years, she knew proper tax reporting was crucial to avoid any IRS headaches.
Some investors have asked if stocks make sense in a world where short-term US Treasuries yield north of 5.5%. 1 While a notable relationship exists between high short-term interest rates and stock market returns, it's important to understand that correlation does not imply causation. Here's a breakdown of the dynamics:
Financial markets are complex and unpredictable. Valuation metrics, such as price-to-earnings (P/E) ratios, enterprise value-to-EBITDA, and the price-to-book (P/B) ratio, have traditionally been seen as indicators of a stock's intrinsic worth and, by some, predictors of future returns. However, the belief that valuations can reliably forecast future markets deserves a deeper investigation into why they may not serve as a crystal ball for investors.
A Restricted Stock Unit (RSU) is a form of compensation that some companies use to reward their employees. RSUs represent a promise to give an employee a certain number of shares of company stock at a future date, typically once certain conditions are met, such as a specified vesting period or performance goals. RSUs are a common form of equity-based compensation used in publicly traded and private companies.
Health Savings Accounts (HSAs) are not only a savvy investment option but also offer numerous benefits, especially for high-net-worth families. An HSA is a tax-advantaged savings account designed for individuals with high-deductible health plans (HDHPs) to help cover out-of-pocket medical expenses. While the utility of HSAs is universal, they hold advantages for high-net-worth families and have steadily grown in popularity since their inception.
