Save, Invest, Repeat

November 18th, 2011 | Posted by TRAVIS T SICKLE, CRPC®, AAMS® in Financial Planning | Investments - (0 Comments)

“I want that!”

“No, you can’t afford it.”

“I want that!”

“No, you can’t afford it.”

How many times have you heard these words?  Now how many times have you had this conversation with yourself?  Just like the Beatles song goes, “You can’t always get what you want,” definitely plays true when you are dealing with financial goals.  Savings money is tough work.  It takes a lot of dedication.  And you have to actually stick with it.

Saving money is a lot like working out.  You can go to the gym and just start lifting weights day after day and hope you get the results you want in the time allocated.  Or you can sit down, draw out a game plan, follow it and track your progress.  Now which plan do you think is more likely to be successful?  Saving money is not much different.  It doesn’t really matter which financial goals you’re trying to achieve, having a financial plan may help increase the odds of your success.

Saving for shorter term goals like a new car or vacation tend to be simpler because saving $2,000 will most likely result in actually setting aside $2,000 over the course of a few months or a year.  That’s because you are most likely going to invest in shorter term securities like 3-6 month CD’s and money market accounts.  On the other hand, saving for long-term goals such as retirement requires a more complex allocation of funds.  The asset allocation mix, target rate of return and tax status play a much larger role in affecting your ability to reach these goals.

It’s about learning and understanding what exactly you need to do to achieve your goals early on that has the potential to significantly increase your likelihood of successful financial planning.  The elephant in the room isn’t the target rate of return, which most often may feel like it’s more out of your control than within.  Instead, do a little more research on risk and your risk tolerance.  You’ll help yourself manage the emotional roller coaster that often comes with investing.  After all, knowledge is power and will help you to better understand your savings strategy. Next you should focus on your ability to save and into which tax advantage accounts like 401ks and IRAs will be most effective in your situation.

Saving and investing is not the quick fix to your financial woes.  It’s a strategy that when applied appropriately can often prove rewarding over the long haul.  There are certainly no guarantees when investing in the stock market or various other securities.  Speak with a financial professional to help ensure that your saving and investing strategy is right for you.

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Wealth Management Firm To Help Manage Your Money

November 16th, 2011 | Posted by Sickle Hunter in Community and Events | Financial Planning | Investments - (0 Comments)

With the markets in a seemingly never ending rut of unease there is a freshly reinvigorated focus in the country on shoring up personal finances. This is where the guidance of strong financial advisors may come in handy.

With the right wealth management firm in your corner you will have someone regularly checking in on strategies for how best you can use your money to potentially build your wealth further. This may also a be great asset for folks simply worried about the impact of market volatility on their investments. The confidence offered by a wealth management firm may be enough to free up some of that worry that has been sinking heavily into your shoulders. With the way things have gone in the past few years and continued unrest in the economies of Europe not to mention the constant political jockeying putting the American markets in constant turmoil it helps to have someone on your side. The financial advisors at Sickle Hunter are a good option to consider.

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How to use credit cards to your advantage

November 16th, 2011 | Posted by TRAVIS T SICKLE, CRPC®, AAMS® in Financial Planning - (0 Comments)

Controlling and understanding debt can really help you manage your financial life and help build wealth.  Debt that is out of control can make you feel stressed and make it difficult to reach your goals.  Credit cards and holding a balance on a credit card is one form of debt many people can live without.  So why would you want a credit card and how can you use them to your advantage?

Let’s answer the first part of the question, why would you want a credit card?  Credit cards can help you build credit for larger purchases.  You might need to build credit to get a mortgage for your first home or buying a car.  A credit card is often the first stepping stone in many people’s lives to building credit.  It’s typically a much smaller amount than a mortgage or car loan but depending on your situation but can still amount to a large sum.  Credit is also extended based on other factors but not limited to income, occupation, payment history and other factors that affect your financial life.

Now we can answer the second question, how can we use credit cards to our advantage?  Using credit cards to your advantage doesn’t mean you have to rack up the debt.  You can use a credit card and avoid paying finance charges and live at peace.  Here are a few ways to use credit cards to your advantage:

  • Budgeting: Helping you track your purchases and planning more efficiently.
  • Rewards: Taking advantage of rewards cards that may give you cash back, travel, leisure and other rewards.
  • Security: Helping to reduce the liability and necessity of carrying too much cash.
  • Flexibility: Your ability to pay online and on the go.

Owning a credit card can be a good thing.  These are just a few points on why a credit card can be a good thing.  You will still need to watch the amount you spend just as if you were to pay with cash.  After all, it’s still money whether or not it is cash or credit.

There are other areas you have to watch out for when using a credit card.  It’s more than the psychological difference of counting out the dollars versus swiping a plastic card.  It’s the high interest charges and other fees you will have when carrying a balance.  Sometimes cards offer 0% interest for 6 or 12 months but after that time period has passed you may have finance charges and other fees.   It’s really important to understand and budget well when dealing with credit cards.  The first order of business is to budget so you don’t spend more than you can pay.  Just because you can qualify for a credit card and hold a balance doesn’t mean you should.

This also leads to another topic, “the art of saving,” spending less than you earn.

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The bucket list, for your portfolio

October 27th, 2011 | Posted by TRAVIS T SICKLE, CRPC®, AAMS® in Financial Planning | Retirement Planning - (0 Comments)

How many goals do you have on your bucket list? Retirement, buying a home, second home, new car, vacations, children’s education…the list goes on. So then the question becomes, do you have a plan to reach all of these goals? And are you willing to commit to manage this plan yourself? It’s not just about the rate of return or the investments you choose. It’s about having a plan designed so you can succeed.

Creating your “paycheck” is essentially what you need to start thinking about so you can actually enjoy your money. The key elements to succeed are little forward thinking, a good financial advisor and a little discipline. If it’s gearing up for retirement or sending a child to college, you will need to figure out what those costs are going to be. Costs will move with inflation, so make sure you adjust for inflation.

“At four-year public colleges for in-state students, tuition and fees increased an average of 7.9% from last year to $7,605, and room and board costs increased an average of 4.6% to $8,535. Total average cost for 2010/2011 is $20,339.”  http://www.collegeboard.com/

Setting up the correct target is only the first step. Then its understanding the mix between how much to save? What is your target rate of return? What tax bracket will you be in? And what you are comfortable doing. These are all tough questions to answer.

It’s okay to have a bucket list, just make sure you plan to fill your buckets first!

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