FINANCIaL
FIELd NOTES
Is There A Margin Of Safety In Your Financial Plan?
Have you ever gotten onto a overcrowded elevator and stared anxiously at the “Maximum Capacity” sign wondering how close you really are to the limit? The good news is that when engineers design elevators, they include a margin of safety above and beyond the limit suggested for standard operation. The same is true for airplanes, cars, and just about anything else with strict regulation. Your financial plan should have a margin of safety, and you’re the one to regulate it.
Fiduciary vs. Suitability and Why it Matters
In 2016, the DOL released the Fiduciary Rule, which for the first time brought to light two different types of financial advisors; Fiduciaries and Non-Fiduciaries. Before this, investors had very little knowledge of the differences. Studies have shown that nearly 50% of Americans believe ALL financial advisors are required to act in the best interest of their clients. However, this is sadly not true.
Three Fascinating Books I Read This Year
Toilet paper, hand sanitizer, and Clorox wipes were all in short supply this year. One thing that was not – time. And with that time, I was able to read quite a bit more than I normally do. I wanted to share a three books that I found particularly interesting.
Your HELOC Is Not Your Emergency Fund
A few months ago, I did a series on how much to have in your emergency fund and where to park the cash. Following one of the posts, I was asked if it’s okay to consider your home equity line of credit (HELOC) as your emergency fund. The logic is fairly simple.
Why Free Financing Isn’t Free
A few weeks ago, I was driving home from work, listening to the radio, and I heard an ad from a national furniture store that went something like this: “This Friday, 25% off storewide OR free financing for 5 years.” I thought to myself, “That isn’t free at all.”