by Glenn J. Downing, MBA, CFP®

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.

The First Meeting is Always Complimentary

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...

by Jonathan G. Cameron, CFP®

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 vs. Long Term Care Insurance

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.

Short vs. Long Term Disability Insurance Coverage

Disability insurance coverage may address either short term...

By Jonathan G. Cameron, CFP® 

What is a Roth IRA?

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....

by Jonathan G. Cameron, CFP®

Investing for Millennials is an important topic for a generation set to inherit a massive amount of wealth over the next few decades. Millennials will likely inherit $30 trillion from boomers over the next 30 years[1].  The questions for Millennials are, “When is the right time to invest? Where do I start?”

Investing for Millennials – Three Keys to Keep in Mind

1. Market timing is a losing formula

You cannot time markets. This is very important. Waiting for the right time to buy or sell is the realm of day traders. In other words, if you think you’ll get ahead by picking the right day to start investing, chances are there will always be a better day. Certain investments are attractive because of brand popularity or hype, but are often bad investment choices for the investor. It is a big temptation to “time” the market or to buy on hunch or the news. What’s the alternative?

2. The magic of dollar cost...

by Jonathan G. Cameron, CFP®

An important financial concern that we often hear from clients is, “How can I improve my credit score?” First of all, I have to give a quick disclaimer that our company, CameronDowning, is not a credit repair or debt consolidation service. Our goal is to arm you with the education you need to establish a strong financial foundation. Consequently, this often includes advice on how to raise your credit score.

If you’re considering buying a home, taking out a loan, or you’re getting yourself organized after a season of personal financial challenges, you understand that your credit score may determine what you can and cannot do in life.

The most widely used credit score are FICO scores. FICO score and credit score are often used interchangeably. FICO is an acronym for the Fair Isaac Corporation. Founded by William Fair and Earl Isaac in the late 1950s, they developed a mathematical algorithm that predicts consumer behavior,...

by Jonathan G. Cameron, CFP®

Isn’t it funny that we are expected to make the biggest decisions of our lives when we are young? 

We get married, we pursue a career path, maybe have children. We have to make quite a few decisions that will affect us the rest of our lives and determine our future trajectory. The decisions we make now can lead to heartache and loss, or security and success down the road. Some of us are fortunate to have parents to steer us in a good direction, while others lean on friends, extended family, or (gasp!) blogs. When to start investing for the long-term is also part of this equation.

When to Start Investing? The Answer Could Mean Millions.

Sometimes pure inertia delays our decision-making process.  We know we need to save for the future.  We know we need to save for retirement.  But that is so far away!   And if we start off on a bad foot we may choose a bad investment, establish a short-sighted plan, and potentially...

By Glenn J. Downing, MBA, CFP®

I’m here to tell you once and for all.

Yes, I know . . . this is a little off the beaten path for me. 

The World is Not in Good Order

I usually write about financial topics, given that I’m a professional financial planner.  But occasionally some NIGO aspect of the world (that’s Not in Good Order, in my professional parlance) comes to my notice with such frequency that I just can’t take it anymore.  Sort of like the crescendo in Lucy in the Sky with Diamonds.  It builds and builds, and you know that a climax is coming. 

Well, today it peaked, and I’m seized with great generosity of spirit (and indeed, humility) to set the English-speaking world right. 

Ready?  Here it is:  data is the plural of the singular datum.  There is your pronunciation:  dāta with a long a.  Not dăta with a short a.  Never Ever EVER. 

Now that that’s settled, let’s turn...

By Glenn J. Downing, MBA, CFP®

Channeling David Letterman and all those Top Ten lists. I thought it might be fun to compile one of my own. To wit:

The Top Five Mistakes People Make With Their Money

This is a list compiled after about 25 years of experience. 

Mistake #5

You eat out way too much. This is what your kitchen is for! If you get a sandwich and a coffee in Miami on a daily basis, you’ve spent ($10/day * 20 days) $200 in a month! How about all that fast food? I’m seeing families who spend several hundred dollars each month eating out, when a little planning and Publix time could save much of that money and everyone would be healthier and richer for it.

Mistake #4

You don’t have enough life insurance. What happens if you get hit by a bus? Are your existing savings enough for your surviving spouse and children? Term insurance is relatively cheap and easy to obtain. No excuses. See Mistake #5.

Mistake #3

You don’t have an emergency fund....

By Glenn J. Downing, MBA, CFP®

We usually understand the time value of money in two contexts: the growth rate of an investment, and the inflation rate.   Nonetheless, the TVM is a topic that should be understood by everyone serious about financial planning.

Sketch Out a Timeline

To conceptualize this, sketch out a timeline of your life. At the leftmost point is your date of birth. The rightmost point is your date of death. In between, mark your retirement date, and today’s date. If you are not yet retired, then the time value of an investment pertains to you in particular.

TMV: Investment Growth Rates

Let’s look at investment growth rates.  On your timeline you have 10 years before your retirement.  You're interested in projecting out your IRA balance over these 10 years, assuming an 8% annual rate of return, compounded monthly. Your current balance is $250,000, and you are depositing $300/month – less than what is permissible by law. I make...

by Jonathan G. Cameron, CFP®

By early 2015, the amount of outstanding student loan debt in the U.S. exceeded $1.2 trillion. What a staggering number! Tens of millions of young professionals carry significant student debt balances. The payments may be stiff. It can take years to pay off many of these loans. Consequently, other financial priorities get postponed. Commonly we see saving for retirement pushed ahead into the future. Does this describe you?

There is Some Good News

The good news is, there are federal programs for income-based repayment and even loan forgiveness. Before you get too excited, though: only certain kinds of federal student loans qualify. These include Stafford and Grad PLUS loans. Each year, program participants verify their income and family size. The loan servicer then calculates a new required monthly payment amount. Loan payments go up or down as appropriate. The intent is to assist borrowers in making on-time payments. These payments, however, may...