If there’s one thing that you maybe haven’t noticed about most financial advisors, it’s that we are arrogant pricks. Please note that I said “we are” – not “they are” – as I include myself in that statement.
We all have firms that provide the most superior customer service. We all have investment strategies that either outpace the market or have the lowest internal expense.
Face it, as financial advisors, we have this attitude that we can’t do wrong and if we DO something wrong, it’s easy to cast the blame and point our finger at the stock market.
I’m here to tell you that I’m not perfect.
While I wish I could sit here and tell you that I provide all of my clients with exceptional customer service and that my investment strategies mirror Wall Street’s investment gurus – the truth is that I’m far from it. There have been many times that I have failed as a financial advisor; but there is one instance that still haunts me to this day. [.....]
The big craze lately has been the vast number of people rushing to refinance their home loans and I have been excited to be a participant in this craze!
We finished building our dream home in February of 2008, and we were extremely excited to lock into a 30-year mortgage at 5% interest.
We were even more excited when just seven months after the fact, we refinanced to a 20-year mortgage at 4.25%.
After this initial mortgage refinance, I never thought I would be able to refinance again until lo and behold – mortgage rates dropped again! We were able to refinance for a second time recently at an amazing 15-year, 3.375% mortgage rate.
We were ecstatic!
I am all about saving money, especially when it doesn’t take a lot of work – and making a phone call, signing a form here and there; in my mind, is all worth it in the end.
But if I wasn’t aware that mortgage rates were down, I never would have thought to check into refinancing to try and save money. The same is to be said about life insurance. [.....]
You work, you save, you retire – it’s the American way, right?
But what happens when you have done a good job saving and get to be one of the lucky ones to retire early – are you still subject to the IRS rules of being age 59 1/2 before you can touch your money?
(Side rant: what the heck is up with the IRS and these 1/2 ages anyway? This concludes my rant.)
If you are stressed about having to pay the 10% early withdraw penalty, don’t freak out just yet.
The IRS – believe it or not – does allow methods to withdraw funds from your 401k without penalty. Just make sure you follow the rules before you claim your prize.
A few notes before hand…
You always have the option to take a 401k loan (if your plan allows it). Does that mean you should take it? I’m hoping that you have ample emergency funds that you can tap first. Stated another way and more blunt: You BETTER have enough emergency funds. Got it? If not, make sure you know the 401k hardship rules.
Before you make any withdraws at of your 401k, do more than just read this post. Consult your financial advisor and/or tax professional to make sure you have your bases covered.
If you knew you could use a credit card to finally get out of debt forever, would you be interested in learning more about it?
The very thing that has cost you thousands in interest could end up being the lifeline that pulls you out of debt.
Whether you overspent for a recent celebration, have struggled to make ends meet due to the bad economy, or just recently had an unexpected emergency, your credit card currently has a balance. And there’s one thing we all know about credit card debt: it will cost you a fortune in interest.
Wouldn’t it be nice to get rid of it once and for all? [.....]
These professionals may not lie, cheat, or steal– but they can still harm their clients. Instead of admitting ignorance or learning about the issues, these advisors try to shoehorn servicemembers into a generic profile.
They recommend asset allocations and products that may be appropriate for civilians, but those suggestions could be redundant or even harmful to the finances of military veterans & retirees. They give all financial advisors a bad reputation.
Military clients are a challenge.
Advisors have to know at least a little bit about nearly every financial topic, but military clients are a very small percentage of the population. Not only that, but Jeff is one of literally only a handful of financial advisors with military experience.
Servicemembers could manage their own investments, but it’s not easy to find reliable information. When you’re in the military then you’re busy with duty, career, family, and other high-priority concerns– like not getting shot. Your financial future is probably not even in the top ten of your To-Do list. [.....]
Are your friends planning a last minute Spring Break trip, but you aren’t sure how you’re going to be able to go?
Don’t be left behind at the dorms! Traveling over spring break on some crazy adventure is a rite of passage for college students. You simply haven’t lived if you’ve never booked a flight 24 hours before your spring break starts to travel to the Gulf Coast, Mexico, or New York City.
Or maybe you’re like me and you hate flying. Instead you’re going to be piling in with four of your friends into a suddenly very inadequately sized sedan to drive to the Grand Canyon and back in four days. [.....]
But what about the Traditional IRA? Does it still have it’s place in your retirement plan? You betcha!!
If you are fortunate to work at a company that offers a match on your 401(k) deposits, don’t walk away from that free money. There, however, might be some instances where the traditional IRA has its place.
Here’s a closer look at some of the rules of the Traditional IRA Account.
“If you say you can’t, then you absolutely won’t”. -My dad
My dad would always tell me that whenever I gave up on anything.
“Dad, I just can’t do it!”, I would often say.
It never failed that he would respond with some variation of the quote above. The first several times I heard it I was extremely annoyed, but didn’t have a good retort.
After a while those words started to sink in and I started to believe it.
Mindset is everything. Once you give up hope, you’ll never succeed. Period. [.....]
If there’s one thing that you maybe haven’t noticed about most financial advisors, it’s that we are arrogant pricks. Please note that I said “we are” – not “they are” – as I include myself in that statement.
This is a guest post from Doug Nordman the author of 
