We are in the middle of a massive, $68 trillion-dollar wealth transfer. This epic shift of wealth from Baby Boomers to Millennials will be one of the largest financial transfers of all time.
By Kathy Longo, CFP®, CAP®, CDFA
Tuesday, 23 April 2019
Baby Boomers are the wealthiest generation in history and 45 million households will move trillions of dollars to the next generation. But with that transfer comes worry and fear of spoiling or creating an entitled generation. We’ve all heard sayings about how most wealth is lost in three generations. Interestingly enough, it’s actually often lost in two. In fact, 7 in 10 wealthy families have lost their fortunes by the second generation, and that number goes to 90% by the third. The theories for why this occurs focus on a lack of communication and a lack of financial preparedness for the heirs. In this article, we will go over four different steps to pass your wealth onto descendants without spoiling them or leaving them ill-prepared to manage their newfound wealth.
Planning a wedding can be a lot of fun! There is the excitement of picking a venue, inviting all of your friends/family, and planning the honeymoon. But there is also a ton of work involved and the work doesn’t end once you are married.
Friday, 12 April 2019
After the big day, there are many things to consider updating, such as beneficiaries on accounts, your legal name, identification, and estate planning documents. I am currently in the process of planning my wedding, which will take place later in 2019, and I wanted to share some of the items on my checklist that are relevant to our long-term financial plan. Below are some things to consider.
By Kathy Longo, CFP®, CAP®, CDFA
Thursday, 28 March 2019
We all want to devote more time to our money. In the same way, we want to Marie Kondo our homes, get on the Keto train and practice more mindfulness and meditation. But reality and daily obligations have a way of getting in the way of all those aspirations! Instead, we are often bouncing from one urgent situation to the next, be it work, picking up kids, appointments, etc. By the time our feet are up and the TVs are blaring, the idea of managing your investments is pretty far down the list. The good news is that there are some easy, low-effort ways to get on top of your finances and be able to check something off that long to-do list.
Ah, the balanced life. We’ve all heard of it and may even know someone we think has achieved it. It’s an enviable place where work, family, and self are all perfectly balanced.
By Kathy Longo, CFP®, CAP®, CDFA
Friday, 15 March 2019
“Imagine life as a game in which you are juggling some five balls in the air. You name them — work, family, health, friends and spirit and you’re keeping all of these in the air. You will soon understand that work is a rubber ball. If you drop it, it will bounce back. But the other four balls — family, health, friends, and spirit — are made of glass. If you drop one of these, they will be irrevocably scuffed, marked, nicked, damaged, or even shattered. They will never be the same. You must understand that and strive for balance in your life.” ―Brian Dyson, former vice chairman and COO of Coca-Cola
In this idealized life, jobs are satisfying without invading on personal time, plus there is time for exercise and hobbies…and family…and sleep. Does that balance seem attainable or laughably out of reach? For most of us, the lack of balance in our life comes from the inability to equally distribute our energy to everything that needs us. Family needs your attention, so work suffers. Work is demanding, so family suffers. Work and family demand all your attention, so your self-care suffers. In this article, we will go over some basic tips that can help you work toward that mythic balance. You may be surprised at how simple and yet effective they can be.
“Oh, what a tangled web we weave, when first we practice to deceive.” – Sir Walter Scott
By Kathy Longo, CFP®, CAP®, CDFA
Thursday, 28 February 2019
Money can be both a loaded and uncomfortable topic. We are so conditioned to be private with our paychecks and piggy banks that we may not even disclose all of the details to our spouse or partner. In fact, 2 out of 5 people reported lying to their partner about money or committing what is called financial infidelity.[i] Of course, not all financial infidelity is the same, and buying something and hiding the receipt is much different than having a secret credit card, or a secret bank account. Regardless, before we go any further, it’s important to remember that whether the secret is little or big, there is still a choice being made to actively withhold financial information.
Fact: 15 million Americans admit to having a secret credit card or bank account.[ii]
Being completely open can be scary and leave you vulnerable to judgment or reprimand but being deceptive to avoid discomfort may destroy your relationship. Financial infidelity often starts small and grows. The dishonesty may be rooted in shame, or pride, or even power. Whatever it is, finding the source of why financial infidelity happened, or why a person lied, will be vitally important if a relationship wants to survive.
