Does Your Financial Advisor Work on Commission? Make Sure You Know!

With both a book and website all about the need to Fire Your Financial Planner, you know that I am skeptical of people who make a living advising people on ways to earn and save money. Professionals in the fields of finance, banking, and accounting are certainly needed, but consumers must be careful when deciding to trust someone with their finances. What is the person's motivation for being a member of his field? What are his credentials? Does he always have my interests and goals in mind? These questions become particularly critical during tough economic times like the ones our country (and the world, for that matter) is now facing.

The Fox Business Channel posted a great article on its website earlier this month which posed the question, "Is Your Financial Advisor Working in Your Interest?" The elderly and disabled are most likely to be victims of a selfish or unscrupulous advisor, but anyone is susceptible to poor advice. You may have put all of your money into one firm that has now declared bankruptcy ... there goes many years of savings. Or, perhaps you were told to invest in risky stocks due to your age or earning potential and now you've lost a bundle. When the media is reporting numbers regarding the stock market, unemployment, and consumer confidence, and all of them look bad, you need to be positive that your money is in safe hands.

In the Fox article, the most important piece of advice given is to ask your financial advisor if he or she gets paid on commission. You may be surprised to know that insurance agents, bankers, and even accountants can find methods through which their services are based on commission. And, this method of compensation may be perfectly fine. Just know all the facts going into the situation so that you can ask the right questions if any advice starts to sound a bit suspicious.

When I meet with you for a coaching session, I will be completely upfront and answer any questions you have. I want you to be absolutely convinced that I am interested in giving you the advice that is best for your situation, because I am! Please contact me and let's find out how we can work together.

Stocks Take Biggest Post-Election Slide Ever

In exit polling that was conducted on Tuesday after voters had cast their decision for president, the economy was overwhelmingly mentioned as the number one issue on the minds of these civic-minded Americans. People are worried that over one million jobs were lost in 2008. The need to bailout the banking and investment industries is frustrating to many people who are struggling to pay their own bills. Overall, the news on our country's economy simply is not good. The voters determined by a convincing margin that President-elect Barack Obama will be the best choice to guide this country into a stronger economy. In the days immediately following the election, the stock market was not impressed.

The Dow Jones industrial average slid 486.01 points, or 5.05 percent, and the Nasdaq Composite Index lost 98.48 points, or 5.53 percent. This slide marked the biggest one-day loss ever following a presidential election. Were investors issuing a quick referendum on our future president? Concern over the transition may explain part of the drop, but it would be unfair to lay the blame solely at the feet of our President-elect. The election coincided with the release of new and dismal figures related to job loss, the announcement by Goldman Sachs Group Inc. that it is in the beginning stages of cutting ten percent of its employees, and a continuation of an economic downturn that is unrelated to our choice of a new leader.

As Ryan Larson, head of equity trading at Voyageur Asset Management, says, "We're in a really bad recession, period. Wall Street can spin it anyway they want to, but this is likely going to be more prolonged than people anticipated." So, those who were supporters of Obama's bid to our land's highest office know that the victorious candidate cannot improve the situation overnight. There are many months of hard work and challenging times ahead.

Are you interested in learning more about how this struggling stock market affects your investment and retirement plans? Are you nervous about the impact of a transition that necessarily occurs with any new president? I would love the opportunity to meet with you and discuss some of your specific concerns. Please visit my website to learn more about the financial coaching sessions that I offer.

Chinese Determination Put on Display in Pollution Clean Up

I have already written several posts concerning my recent trip to China. Today, I want deviate a bit from financial planning and share my thoughts on a problem for which China has received a lot of attention. When I was in Beijing, I had the opportunity to witness the amazing efforts made by the Chinese government to alleviate the pollution that was strangling its capital city. There is nothing like the world stage of the Olympics to make a country clean up its act ... literally.

When I visited Beijing in October 2007, the pollution was a palpable component of this busy city. The only time I could see the skyline and the beautiful mountains in the distance was after a heavy rainfall washed away the contaminants. The smog and stench reminded me of Los Angeles in the 1970s, which is not a pleasant comparison.

My trip last month came just as the Beijing Olympics had reached their conclusion. The efforts that had been made to curb pollution were still evident, with factories idled and construction held to a minimum. Los Angeles and Beijing once again shared similar skies, but this time it was because the air was clear.

It took Los Angeles twenty to thirty years to clean up the pollution that had clogged its environment. Beijing accomplished the same feat in about three months. The work done by the Chinese shows that real and substantial improvements can be made to the level of pollution. And, it reinforces the point that the Chinese government will work until successful completion at any task it is given. This point is important to keep in mind not only in terms of environmental policy, but also when considering global economic power and the desire of the Chinese to be the dominant player.

Our systems of government are quite different, so we certainly cannot expect (nor want) our leaders to take the drastic steps ordered by the Chinese to clean up for the Olympics. However, the transformation of Beijing serves as a fascinating model for our study.

Sharing a Series of Interviews With You This Week

I have participated in multiple radio and internet interviews recently and I will be posting those conversations on my blog throughout the week. I hope you will take the time to listen to these broadcasts as they provide insight into my background and the services I offer.

This interview covers a wide range of topics related to financial planning. You will learn why I am a financial planning consultant and not a financial planner. Also, I discuss the critical reasons that every investor must be wary of those who call themselves financial planners and seek your business. You also will hear some of my specific recommendations regarding savings, stocks and your overall management of your financial affairs.

The interview runs about forty-five minutes in length and I appreciated the opportunity to discuss my background as well why I have such a passion for my field! If you want to learn more after listening to the exchange, please visit my website for more information or to set up a personal coaching session.

New Article on Firing your Financial Planner!

I wanted to let you know about an article I published recently with several online media outlets. In the piece, I answer the central question of my professional outreach -- why you should fire your financial planner.

I am not necessarily advocating that you never seek the guidance of a financial planner. Instead, I want to encourage you to enter the relationship as an educated consumer. You need to know if your planner is a good listener. You must find out how he or she is compensated. You should research enough about money management to determine if you are receiving sound advice.

Please check out the entire article and then let me know what you think! If there is a way that I can counsel you through your financial questions, I would love the opportunity to meet with you.

Some Initial Thoughts on Watching the Economic Collapse from China

As I mentioned in previous posts, I returned to China recently for further research on my interests surrounding The China Boom. You likely already know that the United States economy is very dependent upon the financing it receives from China and other countries whose economies are experiencing record growth. China has become a leading creditor to the United States, and that is an uncomfortable position in which our country has placed itself. It does make for a fascinating study, though, concerning the changing dynamics of our global economy. I look forward to unveiling my findings to you through my articles and videos. In fact, I have so much that I want to share about my visit and I plan to do so over several posts.

I had the unique perspective of observing some of the economic meltdown that was occurring in the United States from the other side of the world. While I was away from home, Lehman Brothers, Merrill Lynch and AIG all collapsed. I was given a particularly interesting perspective in regards to Lehman Brothers. When it was announced this global investment bank had failed, I was in Hong Kong. The news that day was filled with photos of Lehman employees exiting their offices with boxes of personal items in hand. There was a great difference between Hong Kong and the U. S. however. As the educated and experienced business men and women exited their offices, other banks and investment firms were waiting to scoop them up with new job offers. Despite the words of warning we often hear concerning the superior education received in many Asian countries (and some of it certainly is warranted), there apparently is a shortage of personnel with the specific skill sets needed for investment banking in Hong Kong.

With our markets so intertwined, this news from America made headlines every morning in China. There was understandable concern in the Chinese media regarding how the strain on the United States economy would impact China. Attempting a quick, preventative measure from the effects overseas, the Chinese government immediately infused billions of Yuans into their banking system. They also immediately lowered their benchmark interest rates. As we have seen almost every day since the collapses began, other countries around the world have followed suit by taking measures (sometimes drastic) to protect their financial systems from the aftermath of the problems in our country.

Most of the news reports have focused on the doom and gloom of our economic situation, and there undoubtedly are serious problems that will be with us for some time to come. I do not want to underplay the severe repercussions that our businesses and homes will be feeling. However, there are some positive developments to this crisis with respect to the balance of trade. As the dollar weakens, American products become more attractive abroad and it makes more sense to manufacture various products right here instead of paying the costs for overseas investments. The possibility of new jobs and a higher level of exports must be remembered as the other side of this financial coin.

Retirees Feel Economic Crunch More Than Most

I do a lot of consulting work with those who are considered a part of the baby boomer generation. We are living longer and we have work and money options available to us that were unheard of when our parents and grandparents were planning for their "golden years." However, as some of the first baby boomers begin to consider retirement, the current financial crisis has many worried that their well-laid plans will be ruined. You should not be surprised to learn that retirees have been hit particularly hard our country's recent economic problems, and The New York Times featured these real concerns on today's front page.

Quite a few senior citizens rely largely on dividends from stock investments to pay for their daily living. These men and women do not have time for the markets to rebound and they are having to sell stocks at a loss just to pay for expenses or, at the very least, they are scaling back their future plans. As Alicia H. Munnell, director of the Center for Retirement Research at Boston College, said, “If you’re 45 and the market goes down, it bothers you, but it comes back. But if you’re retired or about to retire, you might have to sell your assets before they have a chance to recover."

It is not only those with stocks who are feeling the strain. Property taxes are going up as local communities try to compensate for reduced funding from the state and federal government. People who have paid for their home and lived there for decades are now struggling with the expense of living there.

Gas prices are affecting retirees beyond just the lack of freedom to travel as often as they would like. Increased costs for fuel are raising food prices as well as the availability of volunteer programs such as Meals on Wheels. To seniors on a fixed income, these changes are significant and nerve-wrecking.

Did you know that you can achieve financial happiness even in these difficult times? I've worked with thousands of individuals, and I would love the opportunity to help you navigate through the current challenges. Please visit my website and let me know how I can help you!

Saving Money While Behind the Wheel

Lehman Brothers, AIG and Freddie Mac/Fannie Mae are not the only ones looking for their way out of a financial crisis. Individuals around this country are searching for opportunities to make their dollars go further. One piece of our budget that we find difficult to cut is money spent on car travel. We need to get to work, take the kids to school, etc. so, particularly in areas without extensive mass transit, a car is nearly essential. You can combine trips or carpool with friends, but what are some other ways to put fewer dollars into the gas pump? Fox Business published an article last year on this very topic and its words continue to be relevant as gas shortages and high prices show no signs of abating.

There are five recommendations listed in the piece, and two of them are as follows:

1. Go Green -- These cars get more miles to the gallon, as traditional fuel is not its only power source. Also, the federal government offers tax credits for people who purchase hybrid vehicles. See the benefit to each model here.

2. Write Off the Miles -- While you are usually not permitted to deduct your mileage driving to and from work, you can deduct noncommuting driving such as making sales calls or deliveries, parking fees and tolls. In fact, the IRS has raised the per-mile tax deduction for the second half of this year as a way of compensating for high gas prices.

If you want to discuss some other ways to save money during these tight economic times, concerning any aspect of your personal budget, please contact me to set up a consultation. I have shared my expertise in personal finance with thousands of individuals and would appreciate the opportunity to help you as well!

Credit Cards ... Should You Leave Home Without Them?

Consumers are taking many different measures in light of our struggling economy. Some are cutting back on the numbers of daily trips in their cars, or carpooling to work for the first time, to save money spent on gasoline. Others are growing vegetable gardens or skipping meals at a favorite restaurant to reduce those monthly food costs. There are a brave few who are taking an amazing step towards financial responsibility ... they are leaving their credit cards at home!

Did you know that 58% of people who own credit cards do not pay the balance in full every month? For those who subscribe to this dangerous practice, the average household balance that is carried on these cards is just over $17,000! Overall, Americans have more than four times the amount of debt than they did in 1990. We are increasingly becoming a society that spends money we do not have.

There certainly are some well-known advantages to having a credit card. You are able to establish and build your credit rating, which will help with home and car loans. Credit companies offer product security and some appealing financial incentives (such as cash back or travel vouchers). And, of course, we cannot ignore the convenience that credit cards bring to our shopping trips. Be wary, however, of using the plastic beyond its point of being beneficial.

Are you considering taking that big step of tucking your credit card away and instead reaching for old-fashioned cash? Have you dug yourself a hole of debt and need some advice on how to recover your good financial standing? Please contact me and let's discuss your situation. I have helped thousands of people learn to manage their money and I can help you, too!

Hello from the Other Side of the World!

I started my work week this morning in Hong Kong (pictured above) and I will be leaving for Beijing tomorrow. Like in the United States, the biggest news over here involves the collapse of Lehman Brothers. The investment bank has 3000 employees in Asia, most of them in Japan. I will write more about the reaction over here, as well as some of my own thoughts on the news, when I return home.

Following previous trips to China, I wrote the book The China Boom. In the text, I share my personal insights concerning the exploding economy in China and its implications for your family, as well as some photos and videos taken with a focus on different aspects of Chinese life. You can subscribe to receive segments of this book right now when you visit my website. I hope you enjoy learning more about this fascinating land!

Older Americans Returning to the Work Force

A lot of the work I do involves helping people prepare for retirement. I want all of you to have the financial security that will allow you to spend your "golden years" in any manner that you wish. Do you dream of opening a bed and breakfast tucked away in the Smoky Mountains? Maybe you want to hone your skills at boating or golfing? Travel is always a popular option for those who have left their working years behind them. Did you know, however, that many older workers are choosing to come out of retirement or delaying retirement altogether? And, it may not be for the reasons you think.

MetLife recently did a study titled, "Living Longer, Working Longer: The Changing Landscape of the Aging Workforce." It breaks the Working Retired into three categories. Those between the ages of 55 and 59 are primarily working to save money. Workers who are 60 to 65 years in age want to be challenged and feel like they are contributing. The last group, those who are at least 66 years in age, choose to work for the social interaction. While these categories certainly are generalities, it is interesting to note that most older workers are applying for jobs by choice, not out of economic necessity.

Why are companies interested in older workers? They are generally more reliable, as they don't need time away from the workplace to deal with child illnesses and obligations. These workers also bring a wealth of experience to any organization. Someone with thirty years focused on a subject area makes a great teacher! A career government worker can offer insight into office structure and how to handle difficult situations with maturity.

The trend of senior citizens in the workforce is only going to continue to increase. As noted by AARP's Public Policy Institute, "workers aged 55 and over will account for more than 90 percent of projected labor force growth over the next decade." Watch out, young college graduates! You may be applying for the same jobs as your parents ... or grandparents!

With my custom coaching sessions, I can help you plan for any adventure you may want to tackle after retirement. Please check out my website for more information and then contact me to start our discussion today!

What the Government Mortgage Bailout Means to You

I'm not revealing any great secret by writing that the housing industry is in the midst of a major crisis. From countless foreclosures to lack of work for those in the construction business to the affected banks and mortgage companies who will never recover their money, many people in this country are affected by the crash in one way or another. The federal government decided this week to bail out the two largest mortgage lenders, Freddie Mac and Fannie Mae, and their names are now being mentioned on the evening news as much as Obama and McCain. How will this government intervention affect you? Let's take a look.

As a taxpayer, this bail out should not be welcome news to you. With the initial price tag placed at $300 billion, the cost breaks down to $1000 per taxpayer. Personally, I would prefer to spend this amount of cash on a nice weekend getaway or some charitable donations of my choice instead of saving a failed business. But, the government has decided that the overall health of the housing market will be improved by providing this assistance with our money now.

On the other hand, if you are in the market for a mortgage, the bailout of Freddie Mac and Fannie Mae has brought some welcome news. Mortgage rates are already down half a percentage point, with lenders taking some comfort in the fact that the two major mortgage giants are to remain in good standing.

Regardless of how you are personally affected by this bailout, the collective repercussions will be felt for some time to come. As Axel Merk, manager of the $400 million Merk Hard Currency Fund, said, “These bailouts will add up. The next (presidential) administration may get its trillion-dollar deficit. The winners will be the irresponsible ones who piled up on debt. The losers are retirees that have been saving and see their purchasing power erode.” What a rosy picture of the future!

If you have questions about how the financial health of Freddie Mac and Fannie Mae will affect you, or if you are looking for ways in which to make the most of this difficult situation, please contact me and let's discuss how my custom coaching sessions can work for you.

China and Issues of Intellectual Property Rights

China has received heightened attention in the United States recently for two reasons -- the Olympics and lead-based toys. It is no surprise, though, that our relationship with China goes much deeper than these stories that make the evening news. China's economy is exploding, so our trade agreements must be closely monitored and updated as circumstances evolve.

In a new article, I detail some of the problems surrounding China's delay in complying with the global Intellectual Property Rights (IPR). Please read the article and then let me know what you think of our current economic relationship with China. I look forward to your feedback!

FREE Money

Can you really access FREE money? As I wrote in my bestseller, Fire Your Financial Planner, "I am not suggesting that you become a latter day Jesse James. But, it is so easy to access FREE money that it almost seems like stealing."

In the book, you are given a lengthy list of things you can do to access FREE money. The most exciting idea that you will learn is that you are the one who has control. It requires a change of thinking and a mindset that allows you to recognize FREE money when you see it. Most people step over FREE money never realizing that it is right there in front of them.

Governor Bredesen receiving a personal delivery of my book!

Governor Phil Bredesen of Tennessee knows that citizens need to be much more pro-active about managing their personal retirement account (PRA). Even in his management of state government, Governor Bredesen looks for FREE money that will allow the state to balance the budget.

Whether it is a state government or your own personal financing, accessing FREE money is not only practical, it also may be critical to your success. Do yourself a favor - it cost me over $3 million dollars to learn these lesssons - it will only cost you a little over $20. While you can get Fire Your Financial Planner through the regular online book sellers, you can get an autographed copy directly from me by visiting my website.

I offer personal coaching, available in hourly segments. Through December of this year, I will offer a discount on coaching sessions for new all new clients who mention this post. Regular hourly sessions are $150, with the reduced price only $119 per hour!

Contact me with an idea of what you are interested in accomplishing during your session. Provide your best contact phone number and suggested times when you can be reached.

But Wait - I Haven't Boomed Yet!

Excerpt from Chapter One of the book, Fire Your Financial Planner:

When I was forty-one years old, I lost more than three million dollars - everything I had. I was looking at my future rushing at me like a freight train, with absolutely nothing financial to show from all the years I had worked in the past. Through the preceding years there were many little lessons that I had learned, but I was so caught up in the moment that I did not take time to reflect seriously on them. I was even blessed with wonderful spiritual mentors and the best of parents, yet I failed to identify a trusted financial mentor.

There are basic financial lessons that are timeless. However, without some wise direction, you are pretty much left to trial and error. You may have learned that a penney saved is a penney earned. But if you don't understand how money works, that may not mean much.

Learning from the experiences of others can save you a tremendous amount of heartache. It is my hope that as you uncover and understand the substance of the lessons that I can share with you, you will be moved to become more involved in managing your own financial affairs. The little lessons that I will share with you will provide the key to unlocking the door to relative financial security.

Check out my website for my FREE report on "Things Your Financial Planner Will Not Tell You". I also will be sharing some tips regularly on this blog ... so check back often!