By Glenn J. Downing, MBA, CFP®

You may have noticed in all CameronDowning email signatures this text:

                                      Where 5% of all revenue is donated

                                        To homeless assistance in Miami.

What’s behind this?  I thought my readers might find the story interesting.

Shortly after Jonathan Cameron and I founded CameronDowning in 2014, I read a piece in the Wall St. Journal about companies that fulfilled their ethical obligations to the community by giving money to charitable endeavors off the top, rather than as planned gifts.  This really caught my attention.  Lots to consider here. 

An obligation?  As a business do we have an ethical obligation to the community at large?  After all, one...

Child:  But Daddy – that’s not fair! 

Daddy:  Well, son, life’s not fair.  Whoever said it is lied to you.  Fair is where you go to ride rides. 

Anyone who’s ever been in one of my CFP® classes has heard me use this expression, and indeed I picked it up in one of my own CFP classes.  Yes, the practice question you’re trying to answer may not be fair, but the CFP® Board tests you with questions like this, so toughen up.   

Fairness, Justice, and Equity

I’ve been thinking about fairness lately, along with justice and equity, and the different shades of meaning in the words.  I think of fairness in terms of fair play, i.e. the referee applies the rules even-handedly to both teams with no partiality.  Justice, on the other hand, speaks to issues of right and wrong in our relationships with one another.  Right behavior is just behavior, and wrong behavior toward another is...

by Glenn J. Downing, MBA, CFP®

If you can pay all your bills with your monthly cash inflow, same some, and stay out of debt, you’re in good shape. 

But if the bills exceed the income by even a nickel, you’re in trouble.  And something has to change.  There are but two choices to make the budget balance:  increase income, and/or cut spending. 

The picture we have at CameronDowning of a well-run household budget is one in which you have no debt (aside from your home mortgage or perhaps student loans), and anticipate the upcoming expenses and save into them. 

Here’s an example.  You know all year that Christmas and the December holidays are coming.  Say the entire holiday costs you $1800.  That’s the gifts for family and coworkers, the tree, the extra meal costs, the adult beverages – everything.  That means you should have a budget line item of $150 saved each month toward Christmas.  The...

Ah, greenbacks, lettuce, clams, or Benjamins – no matter what we call it,  cash is still king!  There are few places in the world that will not take the American dollar as payment.  I fact, I can only think of two:  inflight on American Airlines, and Uber.   

Any Reasons NOT to Use Cash?

Here’s a valid reason NOT to use cash:  if some young socialist decides to knock you over the head to redistribute your wealth, those dollars are gone and cannot be replaced.  Had the young socialist only reaped your credit cards, you can get on the phone and stop those cards, and you have only a maximum $50 liability per card, if even that. 

Another reason not to use cash is airline miles and hotel points.  This is my personal practice.  We run as much as possible through the American Airlines cards and the Marriott Visa, and the points (and benefits) really add up!  But if you’re going to do this, you must have the...

Here’s a question for you, ladies.  You’re out on a first date at a restaurant with someone new.  You’re interested . . . not sure, but interested.  It’s just a date . . . let’s see how the evening goes, you think to yourself.  When it comes time to pay the check, he:

1. Pays with a gold card
2. Flashes a thick wad of greenbacks and pays cash.
3. Tells you how much your half is.

If it is #3, dump him right then and there and block his phone number. 

But between #1 and #2, which impresses you the most?

Credit was for Losers

Way back when I was a young man people paid cash for most everything.  In fact, it was a mark of pride to do so.  Credit was for people who couldn’t afford to pay cash – losers, in other words.  But now!  After working with many clients on cash flow organization, I can tell you that most people simply use a card to purchase everything, and most millennials don’t even carry cash.

by Glenn J. Downing, MBA, CFP®

Everyone at some time or another needs some cash - and quickly!  The question is, have you anticipated this need and saved into it?  Or do you need to scramble?  What follows is a list of ten helpful suggestions.  

Here are 10 places to consider, in descending order.  

1. Your emergency fund.  But if you’re reading this, I’m guessing you haven’t established and funded your emergency fund.  So when this particular cash shortfall hump is over, you know what you need to do!
2. Tap a relative. Be sure to repay promptly along with a suitable gift, i.e. a gift card, nice bottle of wine, etc.
3. A 401K loan. In this case you’re borrowing money from yourself.  There will be an interest charge, but you’d be paying the interest back into your own account.  Typically, you can borrow out the account value up to $50,000, and you replay the loan through payroll withdrawal. ...

 By Glenn J. Downing, MBA, CFP®

I can now pay for a Tesla with Bitcoin.  And the Mayor of Miami wants to pay City employees in Bitcoin and allow tax payments in the same cryptocurrency.  Honestly, until I can go into Bloomingdale's and buy a shirt with Bitcoin, it doesn't much matter to me.  

And neither should it to you, if you’re in the process of getting your financial house in order.  In my world of financial planning and investment management, the basics are still the pathway to financial freedom and prosperity:  spend less than what you earn and invest the rest. 

No One Uses Cash Anymore

The rub is that many people don’t know what they spend because no one uses cash anymore.  It used to be that if a man wanted to impress a lady, he’d flash a bankroll when paying the restaurant check.  Now, she’d probably flee the table at such Neanderthal behavior:  it is the gold or platinum cards that...

By Glenn J. Downing, MBA, CFP®

This is a really personal list.  It is complied from years of observing the human condition and reading good novels.  It is intended to be humorous, yet I’m fully aware that it might hit some raw nerves.  So for the intrepid souls out there, read on . . .

Counting down to number one, we have:

#10.  Beer

Now I enjoy a brew as much as the next guy, but why spend a lot of money on something you’re going to literally piss away?  Why not get a whisky instead?  You’ll get the same buzz and not have to keep running to the gents.

#9.  Cine Bistro

Go once if you don’t believe me, but you’re going to drop $100 on a movie and a meal for two.  How much nicer to dine at a proper restaurant and then go see a show afterwards for the same money. 

#8.  True Religion jeans

One of my daughters used to work at True Religion in Dadeland Mall.  Spending $300 for denim that is faded and...

By Glenn J. Downing, MBA, CFP®

As many of my readers know, I have been teaching the CFP® curriculum to those preparing for the exam for several years now.  Most are experienced professionals; all must have at least a bachelor’s degree; many have advanced degrees or are practicing attorneys or CPAs.  In other words, it is my privilege to teach la crème de la crème.  Still, it surprises me sometimes that even amongst this group, there is so little understanding of the financial benefits of legal marriage.  So I thought I’d blog about it.

My My My how things have changed!

Lucy and Ricky Ricardo slept in twin beds.  So did Rob and Laura Petrie.  (I Love Lucy and the Dick VanDyke Show references, for my young readers).  My my my how times have changed!  Now people hook up on television.  Who even needs a bed?  Maybe there’s a vacant stairwell, or there’s always the back seat. ...

By Glenn J. Downing, MBA, CFP®

This blog post builds upon a previous one:  No, Darling, because we can’t afford that.  I’m sharing some thoughts about teaching children to be financially responsible. 

What Was the First Trip?

My second trip?  What was the first?  My first trip to Europe I was 13, and my grandparents took me on vacation with them.  My maternal grandmother had come over from Italy at about age 5, and was raised in Connecticut, where I was born.  Her husband, my maternal grandfather, one of 16 children, was born in Connecticut, but some of the siblings were, I believe, born in Italy.  Grandpa was a successful business owner in New Haven, and they went to Europe on vacation most years.  In turn, they took each of their four grandchildren with them once – a gift I’d like to return some day.

The Deal with Dad

The second trip is the one I want to write about.  My Uncle Joe, my Dad’s...