Kingston Financial Planners

Financial Planners – Good Ones Earn Their Pay

System Administrator — Wed, 14 Apr 2010 14:16:45 +0000

Financial planners are more than just stock brokers – they are trained professionals who have a fiduciary duty to put their client’s interests ahead of their own.

Unfortunately, a minority of financial planners have given the whole profession a bad name, mostly by recommending investment products based more on the commission that the planner receives than their appropriateness for individual clients.
The ease with which one can trade online and the abundance of free investment information available on the internet have caused some people to feel that they don’t need financial planners, but while hiring a financial planner may not be the right move for every investor, a good financial planner can be worth far more than you ever pay him or her.
The key is finding the right financial planner.
What is a Financial Planner?
Typically, a financial planner (also sometimes known as a “financial advisor”) is someone who is licensed to sell stocks and other securities (bonds, mutual funds, etc.), as well as insurance products. Some financial planners may even be able to give tax or legal advice.
One major distinction among financial planners is how they’re paid. There are fee-based financial planners and commission-based financial planners. For high-net worth investors, fee-based planners are probably the best fit.
This is because you’ll never have to worry about your planner steering you into an investment solely to line his pockets with a fat commission check – he is paid to give you advice, not based on what you actually buy or sell.
If your financial planner’s advice doesn’t pan out over the long run, you’re unlikely to stay with him.
This doesn’t mean that commission-based planners are all bad. Few financial planners are able to build a fee-based clientele directly out of college – they have to earn their stripes, as it is said.
The best commission-based planners usually graduate to fee-based advisory, but in doing so, they may be pressured by management to leave their lower net-worth clients behind. Truly professional financial planners will always do whatever they can to accommodate the needs of their existing clients, even if their assets are modest.
After all, financial planners, like doctors and lawyers, have a duty to those whom they serve, not to their employers. When you are the client of a financial planner, you are his or her real boss.
Evaluating Client Needs – The Foundation of Financial Planning
Perhaps the greatest benefit of hiring a professional planner is that he or she has experience evaluating the needs of various types of investors. It’s sometimes hard for us to sit back and evaluate ourselves – and, of course, we may not know all of the investment products and tax strategies that a trained financial professional works with on a daily basis.
Financial planners can take a look at their clients’ financial well-being, goals, and risk tolerance, in order to develop a truly comprehensive financial plan, that goes well beyond “buy, sell, or hold.”
For starters, your financial planner may recommend a given asset allocation. Financial advisors tend to recommend that younger people have a greater percentage of their portfolios in equities (stocks), whereas older folks concentrate more on fixed-income securities (bonds).
The logic behind this is that young people can afford to take more risks – over the long term, the stock market generally outperforms the bond market. But for older people, what if the stock market crashes the day before they’re set to retire?
They don’t have the time for the market to “correct itself” that younger people do, so this is why financial planners generally recommend that people begin slowly moving out of stocks and into bonds as they age.
But this is just a simplified case. Perhaps your needs are a little out of the ordinary. Perhaps you haven’t saved enough for retirement. A good planner will recognize this and recommend that you’re aggressive with your investments, even in older age.
Maybe you’re young, but you have an incredibly weak stomach. You like to play it by the book, and everything you read says you should be heavily in stocks, but a good financial planner will steer you toward big cap blue chips with a healthy dose of fixed-income, and your stomach will thank him for it.
The key is that experienced financial planners have seen other clients in similar situations, and yet they are able to zero in on your unique needs. This type of financial professional is worth every penny that you pay him, because he measures his success by your success.

10 More Secrets to Financial Advisor Success

System Administrator — Thu, 25 Feb 2010 11:20:52 +0000

The following is a continuation of the article “10 More Secrets to Financial Advisor Success”. There are 31 secrets total. Here are secrets 11-20.
The eleventh secret to guarantee your success in 2007 and beyond is forget “how”. There is also an even bigger reason to stay out of goals and that is that we get hung up on “how” and this will likely limit or cut off the right brain dream state of mind. Let’s look at a common goal setting process to prove a point: Remember the “SMART” Goal setting strategy:
S – Specific M – Measurable A – Action-Oriented R – Realistic T – Time-focused
A soon as we get into this model there is the chance that You or even worse yet, your dysfunctional ego mind will start to judge.
My dysfunctional ego is no different than anyone else’s … if I let it. And just for fun … Hah! Who are you kidding? You speaking at the most significant Financial Advisor Public Speaking Event in the USA in 2007. Cancel that thought. Cancel that thought. Cancel that thought. Again, all you want to do right now is create a vision for all areas of your life and I recommend that you write down your visions in the following format in your journal:
* I am so happy and grateful that we continue to speak at sponsored association and company events throughout the world and therefore I feel appreciation, fulfillment, happiness, joy, satisfaction and wonderful.
Do you see the difference between the two? Here is the goal that I wrote on December 4, 2006
* Prospect Speaking to associations and companies via Folios, E-Mails & Postcards to Speak at 35 sponsored Financial Advisor association and company events in Canada and the USA in 2007
Do you see that by writing the goal I was limiting my vision by getting into the “How” and too much detail.
The twelfth secret is trust your vision. All you need to know is the first step and you don’t have to see the whole staircase. Again, forget how and using the metaphor of driving from Vancouver, BC to St. John’s, NL by night, you can only see 100 feet in front of you and you continue to drive and trust that you will be able to see the next hundred feet, then the next hundred feet then the next … and eventually you will get to the destination. Well you could say “I don’t have time to drive!” Well then fly! Looking back I counted 33 separate flights on my speaking schedule between September and November of 2006 … believe me I trust.
The thirteenth secret is to forget about time. Worrying about time hooks you back into the unmet need of safety and security and if there is an unmet need then there are limiting beliefs such as “I don’t have enough time” and this triggers limiting emotions that would include anxiety. These limiting beliefs and limiting emotions destroy your creative energy.
Take the metaphor of building a clock in relationship to building your vision. Build a clock that will tell the time for a lifetime versus building a clock that will tell the time for a day.
The fourteenth secret is get out of the way. Whatever your creed … God, the universe, your higher self, your soul knows the shortest, quickest and fastest way to your vision and will create those serendipitous events where the right people, resources and events all harmoniously fall into place to manifest your vision.
Just get out of the way, write your vision, stay awake, step into the harmonious flow of your destiny and let it unfold in harmony versus pushing and pushing!
The fifteenth secret to your success as a Financial Advisor is to write the vision in the now.
Notice that I write the vision in the now given that it is already happening.
* I am so happy and grateful that we continue to speak at sponsored association and company events throughout the world and therefore I feel appreciation, fulfillment, happiness, joy, satisfaction and wonderful.
The sixteenth secret is to write your vision with feelings.
Notice that I write the vision in the now given that it is already happening and therefore I feel appreciation, fulfillment, happiness, joy, satisfaction and wonderful.
* I am so happy and grateful that we are writing and publishing books and therefore I feel appreciation, fulfillment, happiness, joy, satisfaction and wonderful.
The seventeenth secret is write visions for all areas of your business and personal lives.
Personal – spirituality, yourself, spouse, health, family, charity, friends, auto, clothing, finance, home, intellectual, travel, etc.
Business – spirituality, team, customer service, product development, product quality, communication, sales, finance, systems, marketing, environment, web presence, etc.
The eighteenth secret is understand that wealth is not all about money and that is why it is important to create visions for all areas of your business and personal lives to create balance.
The nineteenth secret is ask in the positive. Do not, do not do not ask in the negative. If your vision is “get out of debt”, that is all you will experience is debt. Better that you affirm that “money comes to me easily and effortlessly”.
The twentieth secret to success in 2007 and beyond is to believe that your vision is already yours and through your compounded values, positive feelings and positive beliefs you will build up unwavering faith that you will attract everything that you desire.
Again, instead of thinking about death, debt and taxes commit to positive beliefs. Money comes easily and frequently. There are an abundant amount of happy and generous high net worth clients that wish to work with me. An abundant amount of time is available for the things that I am committed to doing. All the resources that I require are available to fulfill my vision. Many, many people will be attracted and spread my message.

How can Financial Planning Help?

System Administrator — Tue, 02 Feb 2010 14:51:35 +0000

If you are still thinking that financial planning is exclusively for the rich, you may just want to switch your mind on that now.

It is a truth that financial planning is even more important for the individual with an average income than it is for someone who earns a very high income.

The case is this: an average individual has to build his income stretch to cover many needs, and normally there is little cash left each month after paying all the bills and loan.

Hence, it is wise to say that financial planning can assist you in a number of ways, among them are:

- Financial planning can assist you set up beneficial use of your present income and savings. By having every household’s outlay budgeted and a savings blueprint drawn up, it should help you spend your cash wisely and effectively.

- It can contend the effects of inflation on your savings by having your savings invested in an investment vehicle that pays higher returns than the normal bank account, it will add in a couple of muscle to your savings and help you achieve your financial goals in a shorter term of time.

- It can thrust you to take advantage of savings and investment options that exist now, but may not be available later.

For example, you want to put in some of your savings in a particular unit trust fund that pays good returns. However, the fund’s approved size is fixed and the units are easily snapped up up by investors. Now, if you were to maintain some extra money and buy some of these unit trusts before they are all taken up, you will hopefully make your cash work for you through future gains from this investment.

- Finally, financial planning helps you identify the expected sources and total of your retirement income.

The key here is to START NOW!

By starting your retirement planning now (not later!), you can measure how much cash you will require to maintain your current lifestyle and where this money will come from.

Many individuals, specifically those who have just started working, often put their retirement planning on the back burner for reasons such as “I just started work” and “Oh, I am still young”.

Many, however, fall short to realize that by starting early to save for retirement, you will be able to save and put in more due to the concept of “compounding interest”, provided that you invest your savings wisely.

perhaps you do not want to wait till the age of 65 to retire. For all you know, by the age of 40, you might possess already reached your financial freedom and do not have to worry about getting up early to clock in or work till late hours because there are deadlines to meet.

You can then commence a business or alternative job that does not involve clocking in and reporting to your employer, especially if that person is other than you!

Financial Planning is ‘essential’

System Administrator — Mon, 25 Jan 2010 14:25:05 +0000

More than half of women could be placing themselves under unnecessary monetary pressures, new research shows.

In a study carried out by the Co-operative Bank it was revealed that two-thirds (66 per cent) of British females have not taken the time to invest in an individual savings account (Isa) as the end of this financial year approaches. Overall, it was revealed that some 20.3 million women have not got such an investment vehicle and as such are set to be the “biggest losers” when it comes to tax-free savings.

Research from the financial services firm also revealed that 39 per cent of women surveyed stated that, during the course of an average month, they are unable to place any money into a savings vehicle. Some 30 per cent, meanwhile, put a typical amount of 25 pounds away every four weeks. Overall, just under four-fifths of females claim to be either “concerned or extremely concerned” about the amount, or the lack thereof, of cash they have saved for the future. An estimated 80 per cent are reported to spend an average of ten hours per week worrying about money.

By saving ineffectively it is possible that consumers could come under strain when meeting various financial demands in later life. Such areas could include repaying loans, the cost of property repairs and buying a car.

Scott McPhail, savings product manager for the Co-operative Bank, said: “For women, financial planning is absolutely essential and not a maybe. Women can often retire earlier and live longer than men, but many are simply not making enough provision for their futures and are failing to take advantage of tax-free savings.” Mr McPhail added that although “optimising your tax-efficient benefits” can give the impression of being a complicated process taking out an Isa can allow members of both sexes to “ease the financial strain”.

However, research from the financial services firm indicated that men are much more savvy in terms of handling their money and preparing for the future. About half of all males – some 14.2 million – are shown to have an Isa, with 60 per cent of these on track to make maximum use of their tax-free savings product. Furthermore, it was revealed that the average man puts 40 pounds away each month for a rainy day. Meanwhile, one in five of such Britons are nestling at least 100 pounds on a regular basis.

It was also suggested that more than 12 million Britons are not at present putting enough cash away for their retirement, with around 15 per cent of a monthly salary needed to be invested in order for consumers to maintain the same level of lifestyle they are currently used to upon giving up work. Most of these people at risk of insufficient retirement savings were indicated to be women.

For people worried about their ability to save for the future, taking out a loan may be of assistance. Although this represents another area of financial demand by using it as a means of debt consolidation, consumers can merge numerous spending commitments into a single affordable repayment. This may leave them with more disposable income, money which could then be invested into a savings scheme. Such a loan could also be of assistance to a significant number of people as 2008 progresses as Callcredit recently claimed that the first few weeks of the year will see many Britons struggle with money as they face up to their heavy spending during the Christmas and new year period.

Is It Time For Creative Financial Planning?

System Administrator — Mon, 25 Jan 2010 02:22:01 +0000

As a child my financial planning consisted of a piggy bank and a grandmother who told me a penny saved is a penny earned. Coinstar, the maker of coin-counting machines, estimates 65% of Americans save pennies. This translates into $7.7 billion of pennies. When the economy is good, more pennies are saved. When the economy slows down, pennies come back into circulation. The Gross Domestic Income exactly parallels the minting of pennies – but I guess that makes common cents.
Two Tennessee farmers used common sense to fight the high cost of gas. They parked their tractor and hitched their farm equipment to their mules Dolly and Molly, who are a lot cheaper to fuel. The mules required some training and the weight of the equipment had to be shifted so each mule pulled equally, but T.R. and Danny Raymond are saving more than $60 a day. Unfortunately, the vast majority of us don’t have mules – which explains the financial mess our country is in. We voted our mules into office.
Meanwhile, brothel owners are trying to get more customers into their businesses. In June when fuel prices hit an all time high in Nevada, brothel owners had a 20-45% drop in revenue. Truckers, who provide steady business to many of the state’s twenty-eight brothels, are having to pay 40% more for diesel than a year ago. To stimulate business one resourceful brothel owner is giving its best customers a $50 gas card. Obviously, not having work for the ladies isn’t a problem to be taken lying down.
Then there’s the man in Wankesha, Wisconsin. He had a unique financial plan for eating out. Just before being given the bill for his meal, Robert Farnam pretended to have a heart attack. Before the restaurant management could rush to judgment, he was rushed to the hospital. This plan worked well until he was recognized by one of the doctors. Now Farnam will go to trial – which could be a win/win situation. If he pays for his crimes by going to jail, he’ll be getting his meals for free.
Southwest Airlines’ financial planning includes fuel hedging. The airline bought fuel years in advance, gambling the price would go up. As a result, Southwest’s second quarter earnings were $321 million and the value of its stock went up 44 cents. At a time when businesses are having record loses, 44 cents isn’t peanuts.

Get a Headstart in your Financial Planning Education

System Administrator — Sun, 24 Jan 2010 02:16:59 +0000

School is always a good thing. The more knowledge you acquire, the better off you are. This goes without saying anymore. It’s a given. This is why so many of us head off to college after high school, and then some off to graduate school after their bachelor’s degree is complete. It’s all about moving on up the totem pole. You’re more desirable to companies if you have an awesome education. Then there are other reasons for acquiring knowledge. After all, no one ever said your college degree was only for getting a decent job. Hopefully you’re able to apply it in everyday life as well. Take a financial planning education for example. This is a field that you might find beneficial to you and your family in the long run.
Are you good with saving? Most of us are not. This is clear when I read the statistics on the average American and his/her debt. Not only are we not saving wisely, but we’re spending money we don’t even have. This is bizarre and a bit idiotic if I do say so myself. That last time I used my credit card, I kicked myself. And I mean literally. You see, I’m trying out this whole negative reinforcement thing. Anyway, the point is that we should try not to spend so much and start saving more.
Maybe what’s in order is a financial planning education course. You can take such a thing in college. Hey, go ahead and do so if you can. A contemporary financial planning education course will help you down the road. Now, for all of you out there who have long past through the college scene, hope is not lost. You too have the ability to learn if you please. These days you can take a financial planning education course online. Maybe this is exactly what you need to do now. There’s no point in procrastinating another few years. Hop on the web and see what it’s all about.
It’s crucial in this world to have a grip on your finances. You know how much income passes through your bank account. Therefore you should also know where you stand. Don’t spend money you don’t have. Instead, set aside as much as you can for the future. This is the prudent route to take, folks. And if it’s feasible, go ahead and try a financial planning education course online.

A Business Financial Plan – Take The Time To Learn How To Create One

System Administrator — Sat, 23 Jan 2010 02:31:43 +0000

In most situations created by your accountant to record the financial particulars of your business, generally for the purpose of gaining finance, and usually consisting of –

- A balance sheet

- A cash flow statement

- An income statement

Your company financial plan is one of the most effective instruments for ascertaining whether a business model is workable.

It’s the blueprint for your business containing a significant amount of sensitive information, a living document that changes to suit prevailing economic conditions & market forces.

It’s what you revert to when things go wrong and when thing go right.

It can be used

AN EFFECTIVE FINANCIAL OUTLINE SHOULD INCLUDE THE FOLLOWING DETAILS…

- Start up costs

- Operational costs

- Cash inflow

- Other relevant information.

WHEN IT COMES TO FINANCING A BUSINESS, THERE ARE OPTIONS…

Option #1 – For a small home operated business, you personal savings my be enough to start up a business. And, consider squireling some aside just in case an emergency should arise.

Option #2 – If you’re short of cash you could approach family members or close friends and ask them if they can help. But do, think it through thoroughly.

If you’re not absolutely sure that the business is a winner, perhaps you’re better off not borrowing from your near and dear ones. We’ve all heard stories of lifelong relationships being torn apart by greed.

Option #3 – You can turn to the banks or credit unions for finance.

Generally this involves a meeting with the bank manager where you can explain your business financial plan and try to convince him that your business idea is a clear winner and there’s no doubt that you’ll be able to repay the borrowings without a problem.

Option #4 – You may wish to look for investors to finance your business. Attracting backing from a third party will be difficult and to be successful you’ll require a rock solid business plan and be able to ’sell’ your dream in such a way that it’s irresistible.

Running a business includes understanding the important role of paperwork. Although there’s always something better to do than ‘boring old paperwork’ it truly is a necessary evil.

A detailed business financial plan is possibly THE MOST important document of the many that are required to kick-off a new business venture or to fund growth for an established company.

Understanding business documents is an extremely important issue when running a business but there are more important issues ahead not the least of which is attracting new customers.

Long Term Financial Planning Requires Careful Consideration

System Administrator — Fri, 22 Jan 2010 02:20:02 +0000

The old adage says Haste makes Waste, and caution is your only friend. How true such a proverb is when it comes to the world of personal financial planning. Caution means that you stop and look at all options before making any decisions in order to ensure that more often than not the result is a sound decision with a positive outcome. This step is almost mandatory when dealing with issues of financial planning, 401(k)s, and future money needs like retirement funds, etc. Poor financial decisions can result in catastrophic consequences like late payment, a deteriorating credit rating and even bankruptcy.
When investing in real estate for short term purchases, one of the options you may be considering is an interest only mortgage. These can be a tricky investment and so you may want to consult with your financial advisor, before entering into a mortgage of this type. And, since it really can’t be considered a piece of your investment portfolio, a will more than likely be part of a business venture or investment. This is where the looking at all the options really comes into play. An interest only mortgage is not a good financing option when you are looking at purchasing a piece of property for a long-term investment purpose or are going to claim capital gains on the property. Interest-only mortgages are for quick profit transactions. You get in, and you get out. No hanging around in the middle. In. Out. Fast. Easy. Why do I say that? Because interest only mortgages do not allow for an increase in value to you, there isn’t an equity growing measure included so you can’t get more out of the transaction, really; and, your investment debt never decreases.
Short-term implications and considerations of interest only mortgages have one main point. The payments are pretty low during the term of the payment, but that is simply because the overall liability is never going down. Other than that, this mortgage product really shouldn’t be a regular item of consideration in your financial planning portfolio.
The interest only mortgage offers little in the way of tax deferred savings when compared to the bigger products like IRAs, MSAs, and even 401(k)s. Sure the interest is tax deductible, but not at a one-to-one ratio. Even SEPs for the self-employed individual can have a one-to-one ratio of tax savings.
Over the long-term financial planning picture, if you were to consider an interest only mortgage in comparison to a regularly amortized mortgage you would see that when the regularly amortized loan is paid out, there is still a long line of payments to be made on the interest only loan. The amount of savings could be quite substantial if you consider the time value of money. Time value is easy to understand once you learn it. The basic concept is that the dollar is worth more today than it will be worth tomorrow (history seems to confirm this). So money put in savings today, will ultimately be worth more than money you start saving in ten or fifteen years. This is why financial planners urge folks to plan for retirement at such an early age instead of waiting until age 35 or 40 to start saving for the future.
While an interest only mortgage may seem like a viable option to you, be wary and consider all the other possibilities. Chances are a reputable financial planner will have other options that benefit you more in the long run.

The 7 Step Guide to Do-it-yourself Financial Planning

System Administrator — Thu, 21 Jan 2010 14:45:38 +0000

You are in control

You are already your own financial planner. Regardless of the extent of help you receive from professionals, you ultimately are the decision maker and you are responsible for your own finances. Although the financial world has become increasingly complex, it is becoming easier today to do a lot of your own planning. The variety of resources has expanded such as software for money management and planning; online tools for banking, financial planning and investing, and resources, and books and blogs that are easy to understand. These resources may be good news for you if the cost of professional fee only financial planners is out-of-reach to you. Besides the cost of fees, others may avoid planners because they have heard stories of advisors trying to sell a product that didn’t fit their situation. Cost savings and avoiding product pitches are excellent benefits of being your own planner.

Everyone should take a more active role in their financial affairs. Not only does it help with educated decision making and fraud avoidance it also helps you better communicate with your other professional advisors such as your accountant and attorney. You will also find yourself spotting opportunities when they cross your path.

Becoming a better manager of your family’s finances will also help you

How to Create a Personal Financial Plan

System Administrator — Thu, 21 Jan 2010 02:21:17 +0000

We all have desires and goals we wish to achieve in life. Saving for retirement, your children’s education or buying a home is attainable by most of us. However, at the end of the month you may wonder where your money went and how you will ever reach your goals. Regardless of your stage in life, income, or wealth, a financial plan helps you clarify and prioritize your goals and set objectives for reaching your goals.These six simple steps will point you in the right direction.Step 1 – Track Your Household Net WorthStep 2 – Track And Manage Cash FlowsStep 3 – Establish Your GoalsStep 4 – Establish A Savings And Investment PlanStep 5 – Cover Your RisksStep 6 – Review Your Plan AnnuallyStep 1 – Track Your Household Net WorthThe net worth statement provides a picture of your financial position at a point in time. A household net worth statement will help you track your financial progress and can be used to establish a strategy to improve your goals and feel secure.Simply put, the household net worth statement is the total value of what you own less the value of what you owe. By looking at your net worth statement you will be able to determine what your assets you own (such as your home, car, or investments) and how liquid those assets are. Similarly, a review of your liabilities (or debts) will show how debt affects your net worth and whether you have sufficient insurance coverage to cover your debts and provide for your family. The net worth statement also helps you identify problem areas and take steps to correct those problems.Your net worth should increase annually. If your net worth is negative (and in your earlier years it can be negative!), then you must take steps towards debt reduction, increasing your assets, increasing your investment income and therefore your cash flow or revise your goals accordingly.Your household net worth must be calculated annually and compared to the prior year if it is to provide any value.Step 2 -Track And Manage Cash FlowsYour household net worth statement looks at a single period in time while your cash flow statement measures a period of time. The only way you can grow your household net worth is if your cash flows are positive or if you have savings. If cash outflows (i.e. your spending) exceed your inflows (income), then action must be taken to correct the situation either by increasing your cash flows in or reducing expenses.Keep in mind that I have use the term cash flow as opposed to tracking your budget. Your cash flows may not always be timed the same as your expenses. By considering cash flows, you should be in a better position to cover the unexpected costs life throws at you.Tips to improve cash flow: