With another graduation season upon us, young people are trying to make the transition from college to colleague. There will be big changes and challenges ahead. If you can start off on the right financial footing in your 20's, you will be leaps and bound ahead of others that don't get their finances in order until later in life.
April is Financial Literacy Month and a great time to focus on financial education. A lack of financial preparedness has huge societal costs, and in the coming years as Americans age, these costs will likely increase. There are daunting challenges facing not only the poor but also the working middle class.
There’s plenty of opportunity out there for someone who’s unethical to take advantage of good people. That’s especially true when that someone is a financial advisor, so investors need to carefully select whom to trust. What some advisers do may not be criminal, but it’s still unethical because it’s not in clients’ best interests.
When looking for any professional advisor, it is important to be able to match their characteristics, temperament, client profile and experience level to your own profile.
Markets crash all the time. You should, at minimum, expect stocks to fall at least 10% once a year, 20% once every few years, 30% or more once or twice a decade, and 50% or more once or twice during your lifetime. Those who don't understand this will eventually learn it the hard way.
Someone emailed me last week asking why this is:
Creating a comprehensive estate plan to deal with your assets and provide for your loved ones after your death is one of the most rewarding tasks you can undertake. You will feel an enormous sense of accomplishment when you complete your estate plan. You see, the state already has a will for you (sometimes referred to as the “intestacy” statute).