Connect with us

Digm Piece (Op-Ed)

3 Books That Will Change the Way You Think About Money

Published

on

read books

Okay, I know what you all are probably thinking. “There are hundreds of books about personal finance and they pretty much all say the same thing.” I’m not going to attempt to break down which books are credible or not simply because I’m no financial expert. However, until now I have yet to see financial books geared specifically toward millennials. Personally, I’m not the best person when it comes to dealing with money. These books definitely changed my mindset about financial books as well as my mindset about money management in general. Most people read books about finance expecting to get rich immediately after finishing them. If you decide to read any of these books, I challenge you to simply be open-minded about the material. There may be some strategies that you decide to use, and there will be other strategies that you don’t believe in. The point is to become knowledgeable enough about the subject that you can pick and choose what works for you.

1. Broke Millennial – Stop Scraping By And Get Your Financial Life Together

In this book Erin Lowry discusses how to pay off student loans effectively, the pros/cons of staying with your parents after college, having financial talks with your significant other, and lots of other things relevant to millennials. One of the biggest misconceptions that I had is that the only way to start saving for retirement was by getting a job with 401k benefits. Lowry shows you how to save accordingly without much change to your current lifestyle. One of the things that I appreciated most about this book is the language that Lowry used throughout. Lowry uses language that young people can understand as opposed to other books that expect you to already know the financial jargon that they use.

3 Books That Will Change the Way You Think About Money

2. Rich Dad Poor Dad

This book is really good for people who aspire to start their own business and become entrepreneurs. However, people who don’t mind working a 9-5 job can take a lot away from this book as well. The main point that Robert Kiyosaki tries to get across from beginning to end is building your asset column, basically, getting to a point where your money can work for you. He talks about many things that people consider to be assets that are really liabilities. One thing that I can appreciate about this book is that Kiyosaki stresses the importance of making sure your kids are financially literate. That is the only way you can ensure that family wealth is passed down from generation to generation. Most parents assume that staying in school and getting a degree will teach kids all they need to know about money, but that is often not the case. There are important lessons and advice in this book that cannot be found in the classroom.

3 Books That Will Change the Way You Think About Money

3. Get a Financial Life

Personal Finance in Your Twenties and Thirties- This book is a lot similar to Broke Millennial, just more detailed. This book helps to highlight some of the biggest financial mistakes that people make in their twenties and thirties. Beth Kobliner also shows you how to start aggressively saving for those of you who plan on retiring early. Sharon Epperson, personal finance correspondent for CNBC, stated “Get a Financial Life gives you the essential information you need to get your finances in order as you’re starting your career. The rest is up to you. Educate yourself, get motivated, and get your finances in shape now by reading this book.”

3 Books That Will Change the Way You Think About Money

 

Written by guest author Jonathan Sutherlin.

Digm Piece (Op-Ed)

5 Hidden Risks in Retirement That Could Affect Your Financial Security

Published

on

Being well-prepared for retirement is wonderful, but there is no fail-safe plan. Things can unravel due to many inherent post-retirement risks. Understanding those risks that lie ahead and how they can harm financial security is key to making critical adjustments in a retirement plan. Sometimes without those changes, the impact of unfavorable and unpredictable events can be far more severe.

“Once you have a retirement plan in place, it’s not set in stone,” says Clayton Alexander (www.retireteton.com), an investment adviser and founder of Teton Wealth Group. “Things change. You may add or lose family members, your retirement goals may change, the economic environment may create new considerations, and financial innovations may present new strategies. Once per year is a minimum in terms of making sure your retirement plans (and beneficiaries) are constantly up-to-date.”

Alexander says retirees and those making retirement plans should be aware of these five risks:  

  • Longevity. Running out of money before they die is one of the primary concerns of most retirees. This worry is heightened by the fact that the average life expectancy has increased. “A pension or an annuity can lessen the risk, but carefully investigate any company where you’d place an annuity and be cautious of fees and interest rates,” Alexander says. “It’s best to tailor your plan to run to life expectancy plus five years.”
  • Loss of income. “Make sure both you and your spouse are protected from the unexpected,” Alexander says. “Consider the financial impact of the loss of one spouse. Remember that your surviving spouse will only get the highest of your two Social Security checks. A spouse’s death can bring additional financial burdens, including lingering medical bills and debts. Life insurance and estate planning are important vehicles to protect survivors.”
  • Health care costs. Longer life expectancy could lead to high costs in a long-term care facility. “It’s estimated that approximately 50% of people over 65 will need long-term care,” Alexander says. “Do not overspend on policies that may be subject to drastic premium increases. And surprising to some, Medicare is not free — your premiums for coverage are usually deducted from your Social Security check. Medicare doesn’t cover dental, hearing or vision, is subject to deductibles, and doesn’t cover long-term care. Long-term care insurance is advisable.”
  • Negative return risk. “A 50% gain does not allow a portfolio to recover from a 50% loss,” Alexander says. “In fact, a 100% gain is required to restore a 50% loss. The ‘buy and hold’ strategy that works when you are young — where you wait for the markets to come back up after a downturn — does not apply in retirement as we saw in 2008, when many people’s retirements were wiped out. Common stocks have substantially out-performed other investments over time and thus are usually recommended for retirees as part of a balanced asset allocation strategy, but the rate of return you earn can be significantly lower than the long-term trends.”
  • Inflation risk. “You should plan on prices for food, goods and services getting higher during retirement, reducing your buying power incrementally as you are living on a fixed income,” Alexander says. “Your retirement plan has to factor that in. Ways retirees can curb the effects of inflation include annuity products with a cost-of-living adjustment feature and investing in equities, a home, and other assets.”

“Understanding what the potential post-retirement risks are and considering them in the retirement planning stage,” Alexander says, “can help to ensure that they are mitigated and properly managed.”  

About Clayton Alexander Clayton Alexander (www.retireteton.com) is an investment adviser and founder of Teton Wealth Group. A graduate of Dixie State University with a B.A. in administration, Alexander also worked at Northwestern Mutual and Goldman Sachs. He is licensed for life and health insurance in the state of Utah and has passed the Series 65 securities exam. Alexander focuses on building holistic retirement plans, and with the launch of Teton Wealth he developed the four-step Ascent Plan – a system to help clients gain clarity and perspective on creating a financial plan for safe, secure and tax-efficient retirement income and estate transition.  

Continue Reading

Digm Piece (Op-Ed)

Are Americans Undervaluing Paid Time off + Quick Trip Tips

Published

on

It’s August, which for many Europeans means taking almost the entire month off. So why is it difficult for Americans to take even the little vacation time they receive? A recent piece in The Economist states workers in the U.S. are doing it all wrong by going on short holidays, which can add even more stress or taking none. Instead, it’s essential for employees to recharge their batteries. It’s also beneficial for companies to have a consistent holiday month during which junior employees can head to the beach, and managers can take stock of things, says the report.

While many Americans may not receive paid time off, especially those that only work part-time, even those who receive it generally don’t take all of it. What we don’t realize is that not taking a vacation is like giving money back to your employer, especially with companies that have a use it or lose it policy. Which should encourage employees to use their time but unfortunately it does not. According to recent polls conducted by Bankrate, nearly 2600 US adults say they plan to take a quarter of their vacation days while 4% are not planning to take any vacation time at all.

Time off is a valuable perk, to the tune of millions of dollars! Just to bring the point home in 2017 Americans gave up 212 million days off that amounts to $62.2 billion in lost benefits! So, take your vacations and follow the tips below to not break the bank while taking time off:

  1. Take a Staycation – Stay local and vacation somewhere that is less than a day drive away, this helps save gas, mileage, and spending on lodging. Look for local attractions, vineyards, interesting museums and landmarks or even travel to your closest big city and be a tourist for a day. You would be amazed at how much you can discover and learn by staying local and all on the cheap! It’s a bonus if you have friends in the town your visiting they can serve as a tour guide and let you stay over for free if they have the room.
  2. Book Flights Off-Season – July 4th, Memorial Day and Labor Day seem like a great time to go on vacation; unfortunately, everyone is planning to take time off during those busy weekends, and ticket prices are through the roof because of it. Book flights after major holidays and during the week you will generally find that they are cheaper than weekend flights.
  3. Take a Road Trip – Road trips are fun and cheaper than taking a plane, especially if you must rent a car when you get to your destination anyway. Plan cool stops along the way and finds interesting places to eat that way you can make the journey part of the vacation.
  4. Plan to Eat In – Food adds up on vacation so pack food and making one or two meals in your hotel can keep you under budget.
Continue Reading

Digm Piece (Op-Ed)

Top Ten Freshman Money Myths

Published

on

Photo credit iStock by Getty Images

Starting college is one of the most important and exciting times of your life. Now that you’re all “checked-in,” enjoy your college experience without worrying about where your next meal will come from by chasing away these common freshman money myths. (more…)

Continue Reading

Trending

Copyright © 2019 PARADIGM.MONEY, All Rights Reserved. PARADIGM.MONEY is owned/operated by BankMobile, a Division of Customers Bank. The opinions/Views expressed on PARADIGM.MONEY are not considered opinions/Views of BankMobile, a Division of Customers Bank.