FPA Perspectives
Financial Planning Perspectives consists of timely articles on a variety of financial planning topics brought to Wi$eUp by the Financial Planning Association.
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November 2009
Looking for the Perfect Holiday Gift? Start With a Spending Plan That Keeps You Out of Trouble
For many, 2009 will be remembered as the year when they drastically reset their spending priorities due to job trouble, investment woes or the fear of more economic troubles ahead. That’s not a particularly bad starting point for a spending season that gets so many people in trouble.
That said, it’s still wise to approach the holiday shopping season with a plan that can keep debt at bay and your finances safe all year long. Here are a few ideas
Medical Tourism: Do’s and Don’ts of Seeking Cheaper Treatments and Procedures Offshore
There was a time when the rich and famous were the primary consumers of medical tourism – all the better to hide the occasional facelift or tummy tuck from prying eyes back home. But today, the rising number of underinsured or budget-conscious patients has made going abroad for medical care much more prevalent and for more complex procedures. It’s also getting the support of domestic insurers.
Last-Minute Tax Tips for 2009
Before the holidays heat up, now’s a good time to make some moves that will save you money on taxes next April. Take some time to consider the following.
October 2009
As the Employment Market Recovers, it’s Smart to Plan Now for the Next Job Opportunity
In August, a study by consulting firm Deloitte Consulting LLP reported that companies “will face a tsunami of defections” from workers who have taken on multiple tasks through the belt-tightening caused by the recession. The Deloitte report predicts that companies’ most valuable workers will be in the vanguard of departures for better hours and more pay once the economy recovers.
If this describes you or someone close to you, it makes sense to lay the groundwork now for that next career opportunity. If you’re planning to stay in your field or make a complete change, one of the best detailed, neutral resources for investigating career fields and their salary and hiring forecasts is the U.S. Bureau of Labor Statistics’ Occupational Outlook Handbook. This extensive online resource not only lists major career groups, but the leading occupations in it. If you haven’t been in the job market for awhile, this kind of research is a good way to reset your knowledge of your industry and whether its hiring prospects are bright.
Ways to Negotiate Medical Debt – What You Can Do Alone and With Help
Whether you’re facing a planned medical procedure or have to undergo treatment in an emergency, it pays to devise a battle plan to keep costs under control, and keep the person you’ve designated as your health power of attorney in the loop. A financial planning professional, health insurance agent or your employer’s human resource department might be good places to start a discussion about avoiding unnecessary costs during physician’s office visit or hospital procedures.
Prepare for College Funding Emergencies Before One Happens
In a tough economy, it’s not hard to imagine students young or old facing shortfalls in money for tuition and living expenses. It’s good to have a battle plan in place in case cash gets tight during the school year.
September 2009
August 2009 [ click for PDF ]
- Understanding Actively Managed Exchange Traded Funds
With so many investors and their advisors questioning traditional market thinking about index-based investing, exchange traded funds (ETFs) are starting to move beyond their traditional passive index territory into more active management.
To some, it’s a fad. To others, it’s a serious threat to the territory traditionally held by mutual funds. Yet, one thing so far is clear. Many of the biggest names in the mutual fund world are now seeking permission from the U.S. Securities and Exchange Commission to offer actively managed ETFs. For advice on this new generation of securities, investors should speak with a qualified financial advisor such as a financial planning professional.
- How to Screen a Prospective Financial Planner
According to the 2008 Financial Planning Association (FPA) and Ameriprise Value of Financial Planning study, individuals who manage their money according to a financial plan not only feel they have a clear financial direction, but they are statistically most likely to save more than 10 percent of their gross income, giving them the best chances for overall financial security.
But, if you’ve never met with a financial planner or if it’s been years since you visited one, there are some important questions you should ask during screening and selection.
July 2009 [ click for PDF ]
- What Happens to Your Benefits if Your Employer Goes Bankrupt?
As the economy works its way back from the brink, many companies are still going to be facing the possibility of bankruptcy. What if one of them is your employer, or the company you retired from?
- New Credit Card Rules
Washington has now approved sweeping changes to the credit card industry that will allow credit card users a bit of breathing room. But even though those changes won’t become effective until next February, it’s a good idea to keep working on your debt issues because we’re likely to be entering a less-liberal era of credit.
- Setting New Spending, Savings and Borrowing Habits for the Post-Recession Age
No one can say for sure when the economic upturn will start to relieve the pressure on the nation’s households, but one thing is certain – the landscape for consumer borrowing and spending will be different for years to come.
It’s wise to look at this as an opportunity. Any recent efforts you’ve made to scrimp, save and pay off debt should become a permanent part of your financial philosophy. If you still haven’t taken those steps, it might be wise implement the following.
June 2009 [ click for PDF ]
- Bringing Healthcare Issues into Financial Planning
During his March healthcare summit, President Obama said that the cost of health care now causes a bankruptcy in America every 30 seconds and by the end of 2009, could cause 1.5 million Americans to lose their homes.
With such dire predictions, it’s essential that financial planning take a worst-case scenario view of not only what can happen to your finances if you’re sick, but also ways to deal with the financial exposure if you lose your job and your health insurance.
- Ways to Save on Vacation when Times are Tough
If you’ve been wavering on spending money for a vacation, remember that vacations can be particularly valuable stress relievers during a tough economy. By shopping smart and making small adjustments in your spending on the trip, you can decompress without worrying about money too much.
- Some of the Worst Financial Mistakes are Made in Divorce – Here’s How You Can Avoid Them
In these economic times, many marriages slide into trouble over money. But when a marriage dissolves, any hint of financial trouble before the divorce has the potential to slide the split parties into disaster.
Even when money is tight and parties are distracted by the pain of a breakup, financial and tax planning need to be front and center in divorce planning. A Certified Financial Planner™ professional with experience working with divorcing individuals should be part of the team that can assess debt and other financial obstacles.
May 2009 [ click for PDF ]
- Resetting Your Recession-Era Budget? There May Be Money in Places You Haven’t Checked
Despite small glimmers of light in an otherwise worrisome economic picture, Americans are still losing their jobs and companies are still cutting back. So if you’re looking for ideas to raise cash during these tough times, here are a range of things you should try and a few things you should avoid.
- Eldercare Is Expensive, So Planning and Negotiation Is Key
The costs of each stage of care for elders can be shockingly high. And if individuals have time to consider their options before a relative needs those options, all the better – a chance to plan is a chance to spend and save smarter.
- In Troubled Times, It’s Never Too Early to Teach Kids about Money
Most experts agree that the younger those kids get that money training, all the better. If you’re already planning your family’s financial future with an expert such as a Certified Financial Planner professional, such an expert might advise you on ways to teach your kids about money as well.
April 2009 [ click for PDF ]
- Why Maintaining Your Credit Score Becomes Even More Important During the Continuing Credit Crunch
It’s always a good idea to be vigilant about your credit score, but even if borrowing loosens up a bit in 2009, you still need to do everything necessary to keep your credit score high.
Fair Isaac, the company that created the FICO score, has been working on a new version of its landmark credit scoring method that might have serious consequences for you if you’re planning on borrowing for a home or establishing any other new credit in 2009.
- Ways To Save Money On Health Care And Health Insurance In Troubled Times
Whether you buy your healthcare coverage through your employer or independently, you need to look at your coverage the same way cost-cutting entrepreneurs do. Buying coverage in the future won’t stop at finding the best price – what you pay increasingly will involve how well you’re personally managing your health.
- Planning a Cost-Effective Job Search
Whether you’ve already cleaned out your desk or are expecting your department to be next at work for cuts, in this economy, it definitely makes sense to plan a job search before you actually have to do one. Call it a response plan.
- How Does the Stimulus Plan Affect You? It’s Good to Get Some Advice Now
The biggest benefit from the $787.2 billion federal stimulus package will hopefully be a noticeable improvement in the nation’s economy. But on an individual level, it’s wise to check if you might be eligible for benefits in health care, education, various tax credits and housing.
March 2009 [ click for PDF ]
- Want To Save Money In a Tough Economy? Go On a Fee Hunt
- Planning For Your Child’s K-12 Private Education
- It’s Tax Time Again – Take Advantage of These Changes for Your 2008 Return
February 2009 [ click for PDF ]
- Coming Clean: A Valentine’s Day Money Checklist for New Live-In Couples
- The Windfall You’ve Fantasized About Just Happened. Now What?
- Credit Score Computing Will Change in 2009 – Do You Know How it Will Affect You?
January 2009 [ click for PDF ]
- Happy New Year- Get These Dates on Your 2009 Financial Calendar
- Don’t Wait Until Graduation to Launch Your Career Strategy
- Everything in Moderation: The 2009 Money Diet
December 2008 [ click for PDF ]
- Helping Family Members During Tough Times – How Far Should You Go?
- Facing Tough Times? Know that Raiding Your Retirement Is Extremely Risky
- Ring Out the Old Year with Some Tax-Saving Tips
November 2008 [ click for PDF ]
- In Troubled Times, Make Sure All Your Bank Accounts Are Within Insurance Limits
- Make a List, Check It Twice - Ways to Keep Holiday Spending Under Control
- Ten Steps to Getting a Raise in the New Year
October 2008 [ click for pdf ]
- Don’t Take a Corporate Buyout Before You Check It Out
- Starting a Business with Your Spouse or Partner? Be Ready for the Problems That Can Surface
- Why Talk to a Financial Planner When You’re in Your 20s?
September 2008 [ click for pdf ]
- Thinking about Gobbling Up Your Company’s Stock? Make Sure it’s a Balanced Diet
- As the Downturn Deepens, it’s a Good Time to Review Your Financial Habits
- Having Trouble Paying Your Kids’ Tuition? Keep Your Hands off Your Retirement Nest Egg
August 2008 [ click for pdf ]
- Too Diversified? Not Diversified Enough? When is Diversification Just Right?
- Planning a Move? Make It a Smart One From a Money Perspective
- Thinking About Working Abroad? You’re Going to Need Detailed Planning
July 2008 [ click for pdf ]
- Think Credit Counseling Is the Answer to Your Debt Problems? Be Very Careful About the Agency You Select
- Peer-To-Peer Online Lending Sites – Good Deal or Risky Last Resort
- More Single and Unmarried Households Require a Unique Planning Structure of Their Own
June 2008 [ click for pdf ]
- Planning a Mid-Career Return to College? Don’t Forget to Ask What Uncle Sam Can Do for You
- Buying Your Family’s Health Care Coverage? Begin with Some Smart Steps
- Affording Your Pet’s Cat-Astrophic Illness
May 2008 [ click for pdf ]
- Want to Fight I.D. Theft? Be Careful How You Treat Your Information in the Real and Virtual Worlds
- Want to Avoid Medical Debt? Take These Preventative Measures
- If You Can’t Sell a Home, Is Renting a Good Idea?
April 2008 [ click for pdf ]
- What if Your 401(K) Plan at Work is Less Than Great?
- Before the Summer Hurricane and Tornado Season Begins, Develop Your Own Disaster Plan for Home and Business
- Need to Teach Young Kids about Money? Try These Ideas
March 2008 [ click for pdf ]
- Thinking About a Tax Refund Loan? Rethink Your Refund and Spending Strategy Instead
- When You Add Up the Numbers on Retirement, It Pays to Save Now
- Be Smart about Renovations in a Down Home Market
February 2008 [ click for pdf ]
- When is a Prenup a Great Valentine’s Day Gift? When it’s Time to Remarry
- When Considering Long-term Care Insurance, Don’t Forget the Tax Issues
- Headed for College? Whether It’s You or Your Kid, It’s Time to Check the Rules on Financial Aid
January 2008 special edition [ click for pdf ]
- When Recession Fears Surface, Check Your Plan – Or Make One
January 2008 [ click for pdf ]
- Happy New Year – Put These Dates on Your Financial Calendar
- If a Friend or Relative Needs Financial Help, Do it the Right Way
- You’ve got an Investment Plan. Do You Have a Self-Investment Plan?
December 2007 [ click for pdf ]
- Making the Right Money Resolutions Can Lead to a Much Healthier, Happier 2008
- Is Your Home Insurance Coverage Adequate?
- One-Size-Fits-All Target Funds Can Miss Their Mark
November 2007 [ click for pdf ]
- As You Gobble, Give Some Thought to the Rising Costs of Healthcare
- Give Yourself a Special Gift at the Holidays: A Season without Debt
- Your Personality is a Big Part of Your Investment Approach
October 2007 [ click for pdf ]
- Getting Today’s Best Returns from a Home Renovation
- Trick or Treat: Why You Should be Scared of Financial “Help” on Late-night TV
- Thinking About a New Mortgage in 2008? It’s a New World Out There
September 2007 [ click for pdf ]
- Does Your Family Have a Long-term Care Strategy?
- As the New Models Roll In, Keep Your Money from Rolling Out
- Don’t Go in Blind to Open Enrollment – Review Your Options First
August 2007 [ click for pdf ]
- Top 10 Money Decision for Today’s Incoming College Freshman
- Is Pet Insurance Worth It?
- Is it Your Year to Buy a Timeshare? Do Your Homework First
July 2007 [ click for pdf ]
- Don’t Wait for a Layoff to Plan for One
- Going to the Hospital? Prepare Financially as well as Medically
- Whether You Choose Credit Counseling or are Ordered to Attend, Check out the Agency First
June 2007 [ click for pdf ]
- Prevent Financial Fireworks This 4th — Do a Midyear Financial Checkup
- Thinking of Buying Your First Home or Refinancing? Here's How to Improve Your Credit Before You Apply
- Your First Job Can Be the First Great Move in Your Financial Life
May 2007 [ click for pdf ]
- Just Mailed Your Check to Uncle Sam? Get a Jump on Your '07 Taxes Now
- Singles and Unmarried Couples Require Their Own Financial Planning Structure
- Make Sure Your Travel Insurance is a Real Safety Net
April 2007 [ click for pdf ]
- Taking the Plunge: Affording Your Big Summer Dreams
- Getting Your Kids Ready for Their First Summer Job
- Paying for Wedding Bells: Is the Big Party Worth a Solid Financial Start?
March 2007 [ click for pdf ]
- Retirement 101: As Tax Deadline Approaches, Make Sure You Know All Your Retirement Contribution Options
- When Doing Your Own Taxes Makes Sense…And When It Doesn’t
- April Fool’s! Can You Spot The Financial Myths On This List?
February 2007 [ click for pdf ]
- A Money Quiz for You and Your Sweetheart
- Smart Retirement Moves to Make — or Start — by April 17
- How to Keep Your Teen's Car Insurance Rates As Low As Possible
January 2007 [ click for pdf ]
- Put Your Credit Resolutions in Motion for the New Year
- As the New Year Begins, Make Sure You're Not Making Mistakes With Your 401(k)
- Happy New Year — Put These Dates on Your Financial Calendar
December 2006 [ click for pdf ]
- What Are Exchange-traded Funds and How Do They Work?
- Yours, Mine and Ours: Stepfamily Finances Require Plenty of Planning
- Tax Tips to Consider as 2006 Winds Down
November 2006 [ click for pdf ]
- Thinking About an Indexed Annuity? Take the Time to Understand them First
- Planning the Maximum: Retirement Contribution Limits in 2006 and 2007
- Returning Military Need to Plan a Financial Re-entry to Everyday Life
October 2006 [ click for pdf ]
- 529 Primer: A Tax-Advantaged College Savings Option Just Got Better
- Get Ready for 401(k) Retirement Advice at Work, But Be Prepared to Ask Questions
- Felt the Pinch From Your Adjustable Rate Mortgage Yet? Be Ready for the Moment You Will
September 2006 [ click for pdf ]
- As Open Enrollment Approaches, Do a Benefit Checkup
- Rewind: If You Had the Time to Plan for a Sudden Serious Illness or Death in the Family, What Would You Do?
- How to Un-retire: Planning a Post-retirement Move Back to the Workplace
August 2006 [ click for pdf ]
- Giving While Living — The Buffett Way
- Financial Planning for a May-December Relationship
- Packing Your Kid Up for College? Teach Them Money 101 Before They Go
July 2006 [ click for pdf ]
- Conversion of an IRA to a Roth IRA Needs Careful Study
- Getting the Kids Involved in Saving for College
- Start a New Summer Tradition: the Mid-year Financial Checkup
June 2006 [ click for pdf ]
- ARMs: Adjustable Rate Mortgages
- Fighting High Energy Costs
- Sending Freshman off to College the Right Way
May 2006 [ click for pdf ]
- Dream Big: Financial Planning For Unexpected Wealth
- Losing Your Inheritance to Uncle Sam- or Others
- The Pros and Cons of Reverse Mortgages
April 2006 [ click for pdf ]
- Can You Afford to Live With a Pet? Plan Before You Purchase or Adopt.
- Is a Geriatric Care Manager Right for You or a Loved One?
- As Rates Rise, Tapping Home Equity Gets Riskier- How to Recover.
March 2006 [ click for pdf ]
- The Basics of Health Savings Accounts
- When 'Fun' Gambling Becomes Problem Gambling
- Smart Ways to Refinance
February 2006 [ click for pdf ]
- How to Plan Your Dream Vacation Without Ignoring Your Financial Goals
- Top Ways You Can Prevent Identity Theft
- Financial Planning for Newlyweds- and Those Marrying Again
January 2006 [ click for pdf ]
- Making the Right Money Resolutions Can Lead to a Much Healthier, Happier 2006
- 8 Things You Should Know About Medicare Part D Prescription Drug Coverage
- More Audits This Year? Here's How to Protect Yourself.
December 2005 [ click for pdf ]
- Give Your Credit a Post-Holiday Checkup- and Save Money in 2006
- The Biggest Financial Mistakes People Make in a Divorce- and How to Avoid Making Them
- Taking Responsibility for Retirement: How Today's Scary Headlines Can Help Your Retirement Plan
November 2005 [ click for pdf ]
- Don't Wait Until Catastrophe Strikes to Discuss Money Issues with Older Relatives
- Gear Up for Last Minute Tax Savings- Katrina and Otherwise
- Your First Year of Retirement- Do You Know How Much You Will Be Able to Spend?
- Katrina's Tax Effect- The Latest Changes
September 2005 [ click for pdf ]
- Disaster Preparedness Makes Sense for Finances, Too.
- Becoming Your Own Health Care Cost Advocate
- New Roth 401(k)s Call for a Full Review of Individuals' Retirement and Tax Picture
June 2005 [ click for pdf ]
- Follow This Financial Planning Starter Kit
- Financial Planning For Grandparents Raising Grandchildren
- Phasing Into Retirement
May 2005 [ click for pdf ]
- How to Make Your Own Healthcare Decisions When You Can't
- Ways to Avoid Filing For Bankruptcy
- Company Stock: How Much is Too Much?
March 2005 [ click for pdf ]
- New Automatic Rollover Rules Help Out Lax Retirement Savers
- The Benefits of a Comprehensive Long-Term Financial Planning Relationship
- Saved By The Bell: Consolidating College Loans
February 2005 [ click for pdf ]
- How, and Why To Save More Money
- What You Can Do if Your Pension Plan is Shaky
- To Choose or Not to Choose: New Sales-Tax Reduction Takes Planning
January 2005 [ click for pdf ]
- How The Young Can Whittle Down Debt
- 8 Financial Keys To A Happier New Year
- How to Make Your 401(k) Account Work Like a Pension Plan
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