Short answer: because no one can hit a moving target. The financial plan informs all financial decisions: how to invest, what to save and where, and what insurance should I purchase or drop.
At the time you made your appointment you would have discussed your concerns with one of our associates. After determining if you would be a good fit to work with us, you have been given a list of documents to upload for the financial planners to view before your meeting.
When you come in we’ll meet in one of the conference rooms at our Miami office. We’ll give you a bit of personal introduction and will be interested to learn how you came to us.
From there, we listen and ask questions. We want a general snapshot of your financial position, and we’ll really want to understand your specific concerns and goals for our engagement.
Toward the end of this initial...
Getting financially organized before retirement can be a daunting task. There are many unknowns and it can be hard to know where to begin. For that same reason people often wait too long to address retirement needs and, unfortunately, don’t achieve the financial freedom for which they long. When people get serious about retirement, many start by analyzing their investment account(s) (or lack, thereof). Ideally, they’ll meet with a CERTIFIED FINANCIAL PLANNER™ professional to get them on track.
Financial organization starts by identifying and prioritizing what is most important to you. This is the beginning of a goals-based financial planning approach.
I start by asking clients to list what is most important to them and help them identify what they’d like to accomplish. Spending more time with family, traveling, volunteering, reading, relocating, starting a new...
In this post I’d like to give a little history and background on the advice industry. It may not grab you right off as being the most compelling reading, but please stick with it. I have some valuable points to develop. In Part II I go into some of the changes in our regulatory environment.
When I was a young teen I remember going with my father to visit his stockbroker. Dad used the occasion to teach me what owning common stock means (an ownership stake in a publicly-traded company). He explained that the broker brings buyers and sellers of securities together, and facilitates trades. For this service there is a fee on each trade – a fee on both the buy and the sell, paid by the customer to the broker.
Looking back on it, Dad was explaining to me that I, the buyer, and the broker, had a conflict of interest. My interest was getting the cheapest price for the shares. The brokers interest was...
The IRS tax code sets forth rules and regulations under which US taxpayers remit monies to the federal government. Our taxes, along with borrowing, supply the US government with its operating funds. The tax code also encourages certain behaviors, and discourages others. For example, it encourages charitable giving through generous tax deductions. Clearly it discourages speculation by taxing short term gains at one’s marginal tax rate rather than at the more favorable long term gains rate.
In this blog piece I want to describe some of the charitable giving strategies available to the affluent. I as an advisor would be remiss if I didn’t bring this conversation up to a client. Is there a church or synagogue you wish to favor? A university? A specific charity? The opera guild? There are many favorable ways to give, which can also produce a guaranteed income for the giver.
We make no recommendations before completing our due diligence. Only after we have a clear picture of your risk tolerance, income needs, tax situation, time horizon, and cash flow position do we make any investment recommendation.
There’s no such thing as a perfect investment. Each investment product on the market was designed to accomplish a specific purpose and has its own risk and reward characteristics. Whether it is a managed account with mutual funds, ETFs, individual securities, bonds, annuities and insurance products, our job is to match you with the appropriate vehicle.
Yes of course. There are several mutual fund companies that screen their underlying investments by various social and/or religious criteria.
We can do a projection for you. For example, say you want to retire 10 years from now; you want to have an income of...
To me an annuity in an IRA is usually a dead giveaway that the client worked with a salesperson and not a financial planner.
Annuities, like any other tool, are not inherently bad. They work best when they do the job they were designed to do – and that job is income distribution. The job of a retirement account, however, is asset accumulation.
Annuities can be a useful accumulation vehicle for those with a conservative investing outlook. If you can accept absolutely no investment risk then a fixed annuity is for you. If you have non-qualified money to invest (that is, not retirement funds) and you're in a high tax bracket, then an annuity might be a good option for you to defer current income taxation.
As a distribution vehicle, an annuity is also a safe way to create a perpetual stream of income without market risk. A pension payment is simply another name for an...
A lot has happened in our regulatory world since I posted the original blog piece, The Advice Industry. The DOL rule is void. The SEC is now working on final new rules for standards of client care.
The government regulates this industry – investments, advice, and insurance – via the Securities and Exchange Commission (the original 1940 Investment Advisers Act), the Department of Labor (ERISA comes under DOL, or the Employee Retirement Income Security Act), and the insurance commissioners of the 50 states. Just as it takes a team to give a client comprehensive advice (financial planner, investment adviser, estate attorney, accountant, and maybe more), apparently it takes a team of government agencies to regulate all of us in the industry to their satisfaction.
The 1940 SEC Act requires a fiduciary standard of client care for investment advisers. The SEC made concessions to the brokerage industry, known...
I know many people reading this blog post have never engaged a professional financial planner before, and may be a bit anxious about what to expect. So let me tell you all about working with a financial planner at CameronDowning.
You can book an appointment online, or just call in. One of our support staff will ask you several questions to determine if we are equipped to advise you properly. This will involve asking you a series of questions: What is your main concern? What is your current financial status (assets; debts). These aren't to be nosy, but to prepare for your meeting with a financial planner. You'll be given a list of documents to upload to a secure vault in preparation for that meeting.
When you have your first meeting - in person or virtually - it will be with a financial planner. You'll have a deeper discussion then, and share more of your...
Although there are many similarities these are two very different kinds of insurance. Disability insurance coverage protects wages lost due to an illness or accident. In contrast, long term care insurance is designed to help cover costs of health care services. Typically, health services are in your home, a nursing home, a rehabilitation center, or an assisted living facility.
Disability insurance coverage provides replacement for lost wages when you are unable to work. Your ability to earn a living – reflecting your professional education and experience – are what’s insured. Long term care insurance, in contrast, addresses expenses associated with palliative medical care services in your home, a nursing home, a rehabilitation center, or an assisted living facility.
Disability insurance coverage may address either short term...
One of the most popular ways to save for retirement is in a Roth Individual Retirement Account, or a Roth IRA. Roth IRAs first came out in 1997 after being championed by former Senator William V. Roth of Delaware. Tax-wise, a Roth IRA is basically like a Traditional IRA but backwards. In a Traditional IRA, just like 401ks, you generally get an up-front tax deduction when making a contribution. The account grows over time, tax-deferred. You don’t pay any taxes as the account grows. When it’s time to retire, whatever you take out of a Traditional IRA is taxable at your ordinary income rate.
Let’s do some basic math: if your tax bracket at retirement is 24% and you distribute $1000 from your Traditional IRA you will get to keep $760. The IRS keeps $240. Remember, since contributions are made before tax, distributions from a Traditional IRA are fully taxable.
The Roth IRA basically works the other way around....