Sound Advice

Debt Relief?  Really! If you spend any time listening to radio (an older medium that folks used to pay attention to), it’s hard to miss the ongoing stream of commercials asking if you have more than $10,000 in credit card debt.  If so, they will be only so happy to help.  And they will make sure to tell you that this is a secret the credit card companies don’t want you to know.  Nonsense. With the exception of more affluent folks who can afford to buy more and who do pay their balances in full each month, the reality is that people who have lost control of their budgets seem to think that some future miracle will make the debt go away.  It most certainly will not.  Debt relief offers can be misleading for several reasons: False promises of debt forgiveness: Many debt relief companies falsely equate their services with complete debt forgiveness, when in reality they often only negotiate for reduced payments or more favorable terms. Upfront fees:...

The Unbreakable Investor: Yet Another Dangerous Path To Follow   Over the last few weeks, I’ve heard a few commercials for a book entitled The Unbreakable Investor , by Charles Payne.   This is one of the many hyped approaches bombarded people on radio and TV.   Though the advertisers would have you believe each of them is the key to the mint, you can certain that they are anything but.   The key beneficiaries are the sponsors, not the members of the public who believe in magic. The potential risks of following Charles Payne's investment strategy include: High Risk of Loss : Payne's strategies, as outlined in his materials, acknowledge the possibility of significant losses, including losing the entire investment. His results are not guaranteed, and outcomes can vary widely depending on individual circumstances like education and experience. Overemphasis on Stock Market : Payne advocates for long-term stock market investmen...

“If You Qualify . . . “   That’s one of the key phrases regularly used in commercials now heard on radio or seen on TV.  It’s neck and neck with “you deserve”, “you owe it to yourself”, and a handful of other silly word hooks intended to convince folks that there’s either an element of exclusivity involved or you are overlooking a benefit that you are entitled to.  Typically, the answer to the question about qualification depends on whether or not you are currently breathing, definitely a high bar for some people.  If you can hear the commercial, you qualify.  Advertising specialists are always on the lookout for phrases that will tempt the public.  By suggesting that whatever they’re hawking is not available to everyone tends to deliver a stronger appeal.  That’s much the same as trying to get a reservation in a restaurant that’s hard to get into.  Not everyone can get in, so there must be something worthwhile.  Or so they would have you...

What do I need to know about municipal bonds?   Municipal bonds, or "munis," are debt securities issued by state and local governments to finance public projects and day-to-day operations.  Here are key points to understand about municipal bonds: Purpose: They fund capital projects such as schools, highways, and sewer systems. Types: General Obligation (GO) bonds: Backed by the issuer's taxing power. Revenue bonds: Secured by income from specific projects, such as toll roads. Interest payments: Bondholders receive regular interest payments, usually semiannually. Tax benefits: Interest is often exempt from federal income tax and sometimes from state and local taxes. Maturity: Can be short-term (1-3 years) or long-term (over a decade). Risk: Generally lower default risk compared to corporate bonds, but revenue bonds may be more vulnerable to economic changes. Market size: As of Q3 2024, the municipal bond...

What Financial Advisers cannot do for you   Financial advisers provide valuable guidance, but there are several things they cannot or should not do: Predict the Future Financial advisdrs cannot foresee future market movements or guarantee investment outcomes. Their advice is based on research and experience, not certainty. Guarantee Profits No adviser can promise that you will make money on investments. Market risks are inherent, and returns depend on various uncontrollable factors. Make Decisions for You Advisers can guide you, but the final decisions about your finances rest with you. They cannot force you to save, invest or spend in specific ways. Provide Legal or Tax Advice Unless they are also licensed attorneys or certified public accountants (CPAs), financial advisers cannot offer legal or detailed tax advice. For these matters, you should consult specialized professionals. Act Witho...

How can a financial adviser be most helpful:   Financial advisers can be most helpful in several key areas: Creating a comprehensive financial strategy tailored to your specific needs and goals. This includes assessing your current financial situation, identifying areas for improvement, and developing a plan that covers various aspects of your financial life. Retirement planning. Advisers can help determine when you can retire, optimize Social Security claiming strategies, and create sustainable withdrawal plans to ensure your money lasts throughout retirement. Investment management. This involves designing an appropriate asset allocation, optimizing asset location for tax efficiency, and rebalancing your portfolio to maintain the desired risk level. Tax planning. Advisers can review your tax returns, suggest tax-efficient investment strategies, and help with decisions like Roth conversions...