Confidence Wealth & Insurance Solutions, Author at Confidence Wealth & Insurance Solutions

Confidence Wealth & Insurance Solutions February 12, 2016 2 Comments

[Financial Friday] What To Do When a Saver Marries a Spender

If you’re a penny pincher but your spouse is penny wise and pound foolish, money arguments may frequently erupt. Couples who have opposite philosophies regarding saving and spending often have trouble finding common ground. Thinking of yourselves as two sides of the same coin may help you appreciate your financial differences.

Heads or tails, saver or spender

If you’re a saver, you love having money in the bank, investing in your future, and saving for a rainy day. You probably hate credit card debt and spend money cautiously. Your spender spouse may seem impulsive, prompting you to think, “Don’t you care about our future?” But you may come across as controlling or miserly to your spouse who thinks, “Just for once, can’t you loosen up? We really need some things!”

Such different outlooks can lead to mistrust and resentment. But are your characterizations fair? Your money habits may have a lot to do with how you were raised and your personal experience. Being a saver or a spender may come naturally; instead of assigning blame, try to see your spouse’s side.

Start by discussing your common values. What do you want to accomplish together? Recognize that spenders may be more focused on short-term goals, while savers may be more focused on long-term goals. Ultimately, whether you’re saving for a vacation, a car, college, or retirement, your money will be spent on something. It’s simply a matter of deciding together when and how to spend it.

A penny for your thoughts?

Sometimes couples avoid talking about money because they are afraid to argue. But talking about money may actually help you and your spouse avoid conflict. Scheduling regular money meetings could help you gain a better understanding of your finances and provide a forum for handling disagreements.

To help ensure a productive discussion, establish some ground rules. For example, you might set a time limit, insist that both of you come prepared, and take a break in the event the discussion becomes heated. Communication and compromise are key. Don’t assume you know what your spouse is thinking–ask–and be willing to negotiate. Here are some questions to get started.

What does money represent to you? Security? Freedom? The opportunity to help others
What are your short-term and long-term savings goals?
How much money is coming in and how much is going out? Never assume that your spouse knows as much about your finances as you do.
How comfortable are you with debt, including mortgage debt, credit card debt, and loans?
Who should you spend money on? Do you agree on how much to give to your children or how much to spend on gifts to family members and friends, for example?
What rules would you like to apply to purchases? One option is to set a limit on how much one spouse can spend on an item without consulting the other.
Would you like to set aside some discretionary money for each of you? Then you would be free to save or spend those dollars without having to justify your decision.

Once you’ve explored these topics, you can create a concrete budget or spending plan that reflects your financial personalities. To satisfy you and your spouse, make savings an “expense” and allow some room in the budget for unexpected expenses. And track your progress. Having regular meetings to go over your finances will enable you to celebrate your financial successes or identify areas where you need to improve. Be willing to make adjustments if necessary.

Finally, recognize that getting on the same page is going to take some work. When you got married, you promised to love your spouse for richer or poorer. Maybe it’s time to put your money where your mouth is.

Confidence Wealth & Insurance Solutions February 8, 2016 No Comments

[Motivation Monday] Find Out Where Your Power Is

Sometimes we know what we want, but we don’t know how to keep our cool in order to get it. Managing our emotions and reactions is a big part of success and general well-being.

Of course, there will inevitably be times in which we feel powerless, because as humans we tend to overthink and overanalyze things to exhaustion. This makes us feel like we don’t really own our experiences and are unable to control what goes on in our lives.

You know what they say…

How much time in our lives do we spend thinking about how badly we’d like to do something, only to find reasons not to? How much time have we spent thinking there’s nothing we can do about certain situations?

When push comes to shove, we forget that our genuine power resides in our ability to respond to different situations in different ways. What we can control is our attitude.

Attitude is everything. I, for one, have been guilty of allowing negative emotions to linger longer that I’d like to. Don’t get me wrong; all emotions, including fear and anger, are natural and can function as a compass to help us discover what we truly want.

But there’s no point in being bitter or holding on to grudges. There’s no point in making excuses rather than creating opportunities for each aspect of our lives that needs a “makeover.”

This is my humble plea:

Let’s use our power. Let’s not overcomplicate our lives. Let’s handle our emotions, attitude, and behavior to improve ourselves and live our lives to the fullest.

Here are some suggestions to start right now.

1. Start your day right.

Always take the time to remind yourself that you get to experience another day. Make the best of it by starting the morning in a way that feels right to you. Invest time in a morning routine that gets you pumped up and ready for what’s to come. Meditating, working out, fixing a special breakfast, some reading or journaling… the possibilities for improving your morning (and therefore your day!) are endless.

Just make sure that you create a routine based on things that are good for you and make you feel happy or satisfied at the same time. A positive morning can give you great peace of mind and you’ll be ready to face the day.

2. Make an effort to keep things simple.

It’s ironic, but sometimes it’s easier to complicate things. Think about it: people fight, worry, and stress over things when they could use that same time to look for solutions instead. Try to keep things as simple as possible and, if things get unnecessarily complicated for you, reach out and ask for help.

The process of becoming financially fit illustrates this point perfectly. Many people struggle to keep track of their finances, savings, and investments. Some people just flat-out say to themselves that they’re just not good with money, as if that was some genetic condition they were born with.

If those same people—instead of giving up and assuming they’ll never reach their financial goals—made an effort to learn money management skills, challenged their beliefs about money, or simply asked for our help, they would save themselves a lot of time and trouble.

The same goes for other skills like cooking and basic self-care like drinking water, exercising, and maintaining healthy relationships: keep things simple and be happy.

3. Check your beliefs.

Behind our actions and emotions are our thoughts and beliefs. One great self-improvement exercise is examining what types of beliefs we’re acting out through our attitudes towards life. For example, if you feel alarmed thinking about the future then it’s very likely that, deep down, you’re afraid something bad will happen. It sounds obvious, but when you actually experience an uneasy emotion, it becomes unbelievably hard to determine why you’re feeling that particular way.

If you tend to get anxious, angry, or sad, don’t be afraid to reassess your own beliefs. There are many situations you can’t change, but you can change what you feel about them by truly challenging your beliefs.

Replace unhealthy and self-limiting thoughts with kind ones.

Always remember that how you talk to yourself is extremely important for your well-being.

Try this approach the next time you get irritated by something silly (like when you’re stuck in a traffic jam). Get used to shifting your focus to the positive side of things and it’ll get easier and easier with time.

4. Face your problems.

You need to take matters into your own hands and take action towards solving your own problems. If you haven’t already, start acting like you’ve got everything under control and handling your stuff (yes, this includes delegating responsibility too!).

At the end of the day, you’re the boss of your own life, so there’s really no reason to not act like one. Respect your skills, abilities, and feelings and use them to your advantage. Face your problems with all you’ve got, and you’ll become empowered by them. There are plenty of ways to get the courage necessary to push yourself into taking positive action. Read our list of tips to boost your self-confidence.

5. Remember just how powerful you are.

Each and every one of us has the ability to experience and try out new things. With the right attitude and frame of mind, you’ll become more aware of your powers until you will feel like you can handle whatever life has in store for you. Don’t stop learning. Don’t stop creating. Don’t stop feeling.

You are more powerful than you think.

Confidence Wealth & Insurance Solutions February 5, 2016 No Comments

[Financial Friday] What You Need to Know About Private Student Loans

It’s an unfortunate trend in college pricing–the average cost of tuition and fees at four-year public and private institutions are significantly higher than they were just a decade ago. For example, the average published tuition and fee price of a full-time year at a public four-year institution is 40% higher, after adjusting for inflation, in 2015-16 than it was in 2005-06. (Source: Trends in College Pricing, College Board, 2015) As a result of these rising costs, many individuals have to rely on student loans to help fund their college education.

Will I have to take out private loans to finance my college education?

What can be surprising to many first-time student borrowers is how little federal student loan debt they may be allowed to take on. Currently, the maximum amount students can borrow for college in federal Direct Stafford Loans is $5,500 during their first year, $6,500 during their second year, and $7,500 during their third and fourth years. (Source: Federal Student Aid, U.S. Department of Education, 2015)

In most cases this amount is not nearly enough to cover the cost of attending a four-year college, and many student borrowers must look to private student loans to help close this gap. And while taking out private loans to pay for college is a fact of life for many individuals, there are some important questions you’ll want answered before taking out these types of loans.

What is the interest rate on the loan?

Private student loans tend to have higher fixed interest rates than federal Direct Stafford Loans. However, depending on the lender, you may be able to choose a loan that offers a lower variable interest rate.

Keep in mind that with a fixed rate, the interest rate remains the same from the day you take out the loan until the day you pay it off. With a variable rate, your interest rate may initially be lower than a fixed rate but then will be adjusted periodically to keep up with changes in market conditions. If your interest rate rises, your monthly payment and/or the number of payments required will increase.

What repayment options are available?

Unlike federal student loans, which offer repayment programs such as pay as you earn, income-based repayment plans and student loan forgiveness, private lenders are not required to offer specific repayment assistance to borrowers struggling to make payments.

However, most private student loan companies do offer limited forms of repayment options, such as loan forbearance or extended repayment schedules. The types of repayment programs offered will vary from lender to lender.

Is a co-signer required?

Some private lenders may require borrowers to have a co-signer guarantee a loan, especially if a borrower has little or no credit history. Having a co-signer may also help you obtain a lower interest rate for your loan and improve your chances for loan approval.

The good news is that the co-signer doesn’t necessarily have to be tied to the loan forever. Most lenders will allow borrowers to apply for a co-signer release after a certain number of on-time payments have been made and other loan conditions have been met.

Are the terms of the loan favorable?

As a result of recent increased regulatory scrutiny surrounding private loans, many of the larger lenders have improved the lending process by offering more attractive loan terms.

For example, certain lenders have eliminated “auto defaults,” which is when a co-signer dies or declares bankruptcy and the lender demands that the loan be paid back immediately by the borrower. Others have made the process for obtaining a co-signer release easier and more transparent. Loan costs, discounts, terms, and conditions can differ greatly, depending on the lender. It’s important to thoroughly research each potential lender and carefully compare all offers before signing a loan agreement.

Are other financing options available?

When it comes to using private loans to pay for college, student borrowers should try to graduate with the least amount of private student loan debt possible. It’s generally a good idea to exhaust all federal student loan options and avoid taking out loans for the maximum amount that is offered by private lenders unless absolutely necessary.

Additional financing options should also be considered, such as:

Parent PLUS loans
Grants or scholarships
Parent/family loans
State-sponsored student loan programs
Part-time employment

Confidence Wealth & Insurance Solutions February 1, 2016 No Comments

[Motivation Monday] How To Find Treasures All Around You

It’s never too late to become a treasure hunter. Treasures are all around you; you just have to train your eye to be able to see them.

A treasure is whatever makes you feel rich and luxurious.

Some people simply love how sunshine feels on their skin; others feel content when everyone’s at the dinner table about to enjoy a homemade meal. Maybe your thing is rewarding yourself by sipping your favorite cocktail after a hard day, doing a full spa session, or throwing a particularly fluffy blanket on your bed on a chilly night.

Everyone who’s lived a little can attest that luxury is not always about gold, five-star hotels, or fat wallets.

Luxury is a treat and we all have the ability to enjoy life’s many treats, no matter what our finances. This article is about how important it is not to take them for granted. A life of luxury is a life well-lived.

Hunting for treasures in the form of experiences and achievements can leave you with a sense of fulfillment that no material possession could compete with.

Learning to appreciate the “little things” – which, as it turns out, aren’t so little after all – gives us the opportunity to find treasures every day.

Learning how to appreciate the things, opportunities, and people around us is one of the keys to a healthy mind and heart. Plus, it gives us a new perspective on another hot topic: money and literal wealth.

Money is considered a sensitive subject. In many different cultures, it’s rude to simply talk about it. We have developed many negative beliefs around money because we treat it like a secret… and thinking that it’s something evil, shameful, or vain (like most secrets are) can cause us to act in unhealthy ways.

There are those who work themselves to exhaustion in order to get more and more of it, without a purpose or vision other than to hoard more money. On the other hand, there are those who avoid it because the mere mention of a salary raise or a glance at their bank account makes them feel queasy. Needless to say, neither is a healthy option.

We’ve talked about limiting beliefs related to money before. Most of the time we aren’t even aware we have them. To fully become a proper treasure hunter and discover all the abundance that surrounds you, make sure to identify why the topic of money makes you feel uncomfortable.

Here we’re talking about money, but this also applies to life in general, really.

One of the ultimate things you can do is to find a balance. Things aren’t black or white. You don’t have to be the richest person on the planet nor the poorest. The same goes for love. In fact, think of someone you love right now: Have there been any moments when that very same person made you feel upset?

… Of course there have!

Because the bonds we form with others, whether they’re people or things, are meant to flow and run their course. Follow the same logic with money matters, wealth and our very special definition of life’s treasures, and you’ll find the balance sooner or later.

Are you ready to go treasure hunting right now? Here’s a 5-step challenge for you:

1. Make amends with money.

To leave limiting money beliefs behind, it’s important that you deeply consider what money really means. Like everything, it has a deeper, more transcendent meaning if you’re open to finding it.

Money helps us to express value. When you buy something or pay for it in exchange for a service, you’re contributing to the economy and indirectly supporting and encouraging the flow of resources, creativity and work. The same applies when you receive money in exchange for your honest and valuable work.

Money isn’t a shameful secret or a guilty pleasure; it’s a way, amongst many others, to express value.

2. Create your own mantra.

Mantras are great reminders and they can help you get into the right mind frame when you’re stressed out. Create or find a quote that’s meaningful to you. It will act as an affirmation of the many treasures around you.

3. List all the things that feel like a treasure to you.

It’s not enough to read an article about life’s many treasures… you have to see it for yourself. Make a physical list of everything you consider a treasure or a luxury that is currently in your life. Family members, close friends, a job, food and clean water, financial stability, your favorite book, those gorgeous shoes, time for yourself… the list will be long. Don’t forget to include experiences that have enriched your life, such as a memorable trip.

Once you’re done, take a deep breath and be thankful for all your treasures.

4. What treasure would you like to discover?

You can think about some other treasures yet to be discovered. What is it you’d like to have now? How would you like to feel? Set your goal and focus on your actions. If you feel insecure, go back to your treasure list and see how much you’ve been able to accomplish so far.

Once you know that you have enough and that your life is already filled with luxuries, which sadly not everyone in the world can afford, you’ll proceed to reach for your goals from a thoughtful, whole-hearted place.

5. Give.

To end this little challenge on a high note, it’s time to give back. We’ve agreed that things are meant to be shared and to flow amongst people. Now, let’s put our theory into practice.

Choose something to give: donate clothes, give something to charity, offer to walk your neighbor’s dog, leave a really generous tip… it’s your call. Give and contribute to the generosity in our world.

How do you feel?

Hopefully you feel a difference in your mood. Describe it and don’t be afraid to come back and repeat this challenge. You are now a treasure hunter!

Confidence Wealth & Insurance Solutions January 29, 2016 1 Comment

[Financial Friday] Six Common 401(k) Plan Misconceptions

Do you really know as much as you think you do about your 401(k) plan? Let’s find out.

1. If I leave my job, my entire 401(k) account is mine to keep.

This may or may not be true, depending on your plan’s “vesting schedule.” Your own contributions to the plan–that is, your pretax or Roth contributions–are always yours to keep. While some plans provide that employer contributions are also fully vested (i.e., owned by you) immediately, other plans may require that you have up to six years of service before you’re entitled to all of your employer contributions (or you’ve reached your plan’s normal retirement age). Your 401(k)’s summary plan description will have details about your plan’s vesting schedule.

2. Borrowing from my 401(k) plan is a bad idea because I pay income tax twice on the amount I borrow.

The argument is that you repay a 401(k) plan loan with dollars that have already been taxed, and you pay taxes on those dollars again when you receive a distribution from the plan. Though you might be repaying the loan with after-tax dollars, this would be true with any type of loan.

And while it’s also true that the amount you borrow will be taxed when distributed from the plan (special rules apply to loans from Roth accounts), those amounts would be taxed regardless of whether you borrowed money from the plan or not. So the bottom line is that, economically, you’re no worse off borrowing from your plan than you are borrowing from another source (plus, the interest you pay on a plan loan generally goes back into your account). But keep in mind that borrowing from your plan reduces your account balance, which may slow the growth of your retirement nest egg.

3. Because I make only Roth contributions to my 401(k) plan, my employer’s matching contributions are also Roth contributions.

Employer 401(k) matching contributions are always pretax–whether they match your pretax or Roth contributions. That is, those matching contributions, and any associated earnings, will always be subject to income tax when you receive them from the plan. You can, however, convert your employer’s matching contributions to Roth contributions if your plan allows. If you do, they’ll be subject to income tax in the year of the conversion, but future qualified distributions of those amounts (and any earnings) will be tax free.

4. I contribute to my 401(k) plan at work, so I can’t contribute to an IRA.

Your contributions to a 401(k) plan have no effect on your ability to contribute to a traditional or Roth IRA. However, your (or your spouse’s) participation in a 401(k) plan may adversely impact your ability to deduct contributions to a traditional IRA, depending on your joint income.

5. I have two jobs, both with 401(k)s. I can defer up to $18,000 to each plan.

Unfortunately, this is not the case. You can defer a maximum of $18,000 in 2015, plus catch-up contributions if you’re eligible, to all your employer plans (this includes 401(k)s, 403(b)s, SARSEPs, and SIMPLE plans). If you contribute to more than one plan, you’re generally responsible for making sure you don’t exceed these limits. Note that 457(b) plans are not included in this list. If you’re lucky enough to participate in a 401(k) plan and a 457(b) plan you may be able to defer up to $36,000 (a maximum of $18,000 to each plan) in 2015, plus catch-up contributions.

6. I’m moving to a state with no income tax. I’ve heard my former state can still tax my 401(k) benefits when I retire.

While this was true many years ago, it’s no longer the case. States are now prohibited from taxing 401(k) (and most other) retirement benefits paid to nonresidents. As a result, only the state in which you reside (or are domiciled) can tax those benefits. In general, your residence is the place where you actually live. Your domicile is your permanent legal residence; even if you don’t currently live there, you have an intent to return and remain there.

(310) 824-1000