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The Financial Black Sheep: 15 Traits That Set You Apart From The Rest Of Your Family

May 2, 2024 by Vanessa Bermudez Leave a Comment

DALL-E

Every family often has a dynamic where financial habits and attitudes toward money are passed down from generation to generation. However, some individuals break away from these patterns, standing out as the “financial black sheep” of the family.

These individuals exhibit distinct traits that set them apart from their relatives in the realm of personal finance. Here are 15 traits that can mark you as the financial black sheep of your family:

1. Embracing Financial Independence

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While your family may rely on traditional sources of income or support systems, you’ve taken the path of financial independence. You prioritize building wealth and do not rely on others for financial stability.

2. Risk-Taking Mindset

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Unlike risk-averse family members, you embrace calculated risks in your financial ventures. Whether investing in stocks or starting a business, you understand that taking risks can lead to substantial rewards.

3. Entrepreneurial Spirit

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While some in your family may favor conventional career paths, you possess an entrepreneurial spirit. You’re not afraid to pursue unconventional opportunities and create your own path to success.

4. Wise Investor

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You’ve cultivated a deep understanding of investing and actively manage your investment portfolio. While others may shy away from the complexities of the stock market, you see it as an opportunity for wealth growth.

5. Financial Literacy Advocate

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You recognize the importance of financial education and advocate for it within your family. You strive to empower others with the knowledge and skills to make sound financial decisions.

6. Frugal by Choice

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While your family may indulge in lavish spending, you value frugality and mindful spending. You understand the value of money and prioritize saving and investing for the future.

7. Debt-Free Lifestyle

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Debt may be typical among your family members, but you’ve made a conscious effort to live a debt-free lifestyle. You prioritize paying off what you owe and avoid unnecessary borrowing.

8. Long-Term Financial Planning

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While some may live for the moment, you take a proactive approach to long-term financial planning. You set clear financial goals and work diligently towards achieving them, whether it’s saving for retirement or purchasing a home.

9. Diversified Income Streams

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Instead of relying solely on a single source of income, you’ve diversified your income streams. Regardless of whether it’s through side hustles, investments, or passive money streams, you understand the importance of multiple revenue sources.

10. Generous Philanthropist

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Some may hoard their wealth, but you believe in giving back to your community and making a positive impact. You actively donate to charitable causes and use your financial resources to help those in need.

11. Tech-Savvy Financial Management

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You leverage technology to manage your finances efficiently. Whether using budgeting apps, robo-advisors, or online banking platforms, you embrace innovative tools to streamline your financial management process.

12. Continuous Learning

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You recognize that the world of finance is constantly evolving, so make an effort to stay informed about the latest trends and developments. You actively seek out opportunities for learning and self-improvement in the world of personal finance.

13. Focus on Financial Wellness

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Beyond just wealth accumulation, you prioritize overall financial wellness. You understand the importance of balancing financial stability with mental and physical well-being, striving for a holistic approach to prosperity.

14. Resilience in Financial Setbacks

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Despite facing financial setbacks or challenges, you remain resilient and adaptable. You view obstacles as opportunities for growth and learn valuable lessons from adversity.

15. Visionary Financial Goals

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You have ambitious financial goals that extend beyond mere monetary wealth. Whether achieving financial freedom, leaving a legacy for future generations, or significantly impacting the world, you have a clear vision for your financial future.

Is Being a Financial Black Sheep Good or Bad?

DALL-E

Being the financial black sheep of your family isn’t about rebelling against established norms. Instead, it’s embracing a mindset of empowerment, education, and innovation in personal finance. By embodying these traits, you pave the way for your own financial success and inspire others to follow suit.

Decoding the Differences: Understanding Financial Freedom vs Financial Independence

Vanessa Bermudez

Vanessa Bermudez is a content writer with over eight years of experience crafting compelling content across a diverse range of niches. Throughout her career, she has tackled an array of subjects, from technology and finance to entertainment and lifestyle. In her spare time, she enjoys spending time with her husband and two kids. She’s also a proud fur mom to four gentle giant dogs.

12 Crucial Money Lessons Baby Boomers Passed Down to Their Millennial Kids

April 26, 2024 by Teri Monroe Leave a Comment

Today, millennials are more financially literate than previous generations. In fact, a recent survey by Investopedia found that 63% of millennials feel very confident in their overall financial knowledge. This largely in part is due to boomer parents talking about finances with their millennial children from a young age. Baby boomers have experienced significant economic shifts throughout their lives, from post-war prosperity to economic recessions and technological advancements. As they pass down their wealth of knowledge and experience to their millennial children, they impart valuable money lessons that shape their financial attitudes and behaviors. Here are 12 crucial money lessons baby boomers have passed down to their millennial kids.

1. Save for the Future

As the saying goes, “a penny saved is a penny earned.” Baby boomers emphasize the importance of saving for the future, whether it’s for retirement, emergencies, or long-term goals. They instill in their children the habit of setting aside a portion of income for savings and investing in assets that provide financial security over time. While millennials often feel behind in their ability to save, this money lesson has taught them the importance of saving.

2. Live Within Your Means

Perhaps learned from their parents, baby boomers stress the importance of living within one’s means and avoiding excessive debt. They teach their millennial children to budget effectively, prioritize needs over wants, and resist the temptation of overspending.

3. Work Ethic Matters

One of the defining characteristics of boomers is that they value hard work and perseverance. In turn, they have taught their children the importance of diligence, dedication, and resilience in achieving financial success. They instill a strong work ethic that drives millennials to pursue their goals with determination and commitment.

4. Invest Wisely

Baby boomers understand the power of investing for wealth accumulation and financial growth. They educate their millennial children about different investment strategies, risk management, and the importance of diversification to build a robust investment portfolio.

5. Plan for Retirement Early

With the rising costs of assisted living and medical expenses, many boomers have struggled to save enough for retirement. Because of this, they encourage their millennial children to start saving for retirement as soon as possible, take advantage of employer-sponsored retirement plans, and maximize contributions to tax-advantaged accounts.

6. Value Education

Unsurprisingly, boomers have a higher level of education than any other generation. Boomers recognize the transformative power of education in shaping future opportunities and financial success. They prioritize investing in their children’s education and encourage them to pursue lifelong learning and skill development.

7. Be Financially Independent

Baby boomers value financial independence and self-reliance, teaching their millennial children to take control of their finances and make informed decisions about money management. They emphasize the importance of financial autonomy and avoiding reliance on others for financial support.

8. Prepare for Economic Uncertainty

More than most generations, baby boomers have experienced economic recessions and market fluctuations throughout their lives, teaching their millennial children to prepare for economic uncertainty. They stress the importance of building an emergency fund, having insurance coverage, and maintaining financial resilience in the face of unexpected challenges.

9. Prioritize Health and Well-being

Unlike their parents, baby boomers understand the connection between health and financial stability, emphasizing the importance of prioritizing physical and mental well-being. They encourage their millennial children to invest in their health, practice self-care, and seek balance in life to achieve long-term financial success.

10. Give Back to Society

Boomers believe in the importance of giving back to society and making a positive impact on the community. In fact, 72% of boomers give loyalty to around five charities. They instill the value of philanthropy, volunteerism, and social responsibility in their millennial children, encouraging them to contribute to causes they care about and make a difference in the world.

11. Learn From Financial Mistakes

Every generation makes financial mistakes. Baby boomers acknowledge that financial mistakes are inevitable, but emphasize the importance of learning from them. They encourage their millennial children to take responsibility for their financial decisions, learn from past errors, and make smarter choices moving forward.

12. Family Comes First

Above all, baby boomers prioritize family and relationships over material wealth. They teach their millennial children the importance of nurturing meaningful connections, supporting loved ones in times of need, and fostering a sense of belonging and unity within the family.

Financial Lessons for a Lifetime

Baby boomers play a significant role in shaping the financial attitudes and behaviors of their millennial children by passing down valuable money lessons learned throughout their lives. From saving for the future and living within one’s means to investing wisely and prioritizing family, these crucial money lessons form the foundation for building a secure and prosperous financial future across generations.

10 Genius Wealth Transfer Hacks That’ll Make Your Heirs Thank You Forever

Teri Monroe

Teri Monroe started her career in communications working for local government and nonprofits. Today, she is a freelance finance and lifestyle writer and small business owner. In her spare time, she loves golfing with her husband, taking her dog Milo on long walks, and playing pickleball with friends.

Top 10 Craziest Splurges Lottery Winners Make

April 25, 2024 by Teri Monroe Leave a Comment

Winning the lottery is a dream many entertain, imagining a life of luxury and indulgence beyond measure. For some lucky individuals, this dream becomes a reality, and with newfound wealth comes the opportunity for extravagant spending. From private islands to super yachts, lottery winners around the world have made some truly outrageous purchases. Unfortunately for most, 70% of lottery winners end up bankrupt after spending all their winnings. Here are the top 10 craziest splurges lottery winners make.

1. Private Islands

With millions in the bank, some lottery winners opt to purchase their own private island paradise. These secluded retreats offer unparalleled luxury and exclusivity, with amenities ranging from private beaches to lavish villas. Private islands come in all shapes and sizes around the world, and can costs anywhere from $200,000 to $200 million.

2. Supercars

When money is no object, why settle for a run-of-the-mill sedan? Many lottery winners indulge their need for speed by splurging on high-performance supercars worth hundreds of thousands—or even millions—of dollars. One lottery winner even built a racetrack in his backyard to show off all of his supercars.

3. Extravagant Jewelry

From diamond-encrusted watches to rare gemstone necklaces, lottery winners spare no expense when it comes to adorning themselves with luxurious jewelry fit for royalty.

4. Sports Teams

For many lottery winners the ultimate splurge is owning their favorite sports team. Depending on the sport, teams will cost you upwards of $20 million.

5. Personalized Submarines

For the truly adventurous, a personalized submarine offers the ultimate underwater experience. With the ability to explore the depths of the ocean in style and comfort, owning a submarine is a splurge reserved for the most daring lottery winners. Most personal submarines have a starting price of at least $1 million.

6. Gold-Plated Everything

From toilets to smartphones, some lottery winners take the concept of luxury to the extreme by having everyday items plated in gold. While these opulent upgrades may seem excessive to some, for others, they’re a symbol of status and success.

7. Space Travel

With companies like SpaceX and Virgin Galactic making space tourism a reality, some lottery winners are eager to secure a seat on a future spaceflight. For those with a sense of adventure—and a hefty bank account—traveling to space is the ultimate splurge. Some lottery winners have taken it one step further and have purchased land on the moon, Venus and Mars!

8. Amusement Parks

Why pay to visit amusement parks, when you can own your own? Lottery winners have purchased everything from trampoline parks to water parks for their own personal enjoyment.

9. Private Jets

For those who value convenience and privacy, owning a private jet is the ultimate status symbol. With the ability to travel anywhere in the world at a moment’s notice, flying in luxury is a splurge that many lottery winners are eager to indulge in.

10. Luxury Yachts

When it comes to extravagant purchases, few can rival the splendor of a luxury yacht. From sleek, modern vessels to classic sailing yachts, owning a yacht offers the ultimate in seafaring luxury, complete with onboard amenities like jacuzzies, helipads, and gourmet kitchens. According to Forbes, a custom built 100-metre superyacht costs around $275 million.

Living It Up Like Lottery Winners

While these splurges may seem extravagant to the average person, for lottery winners, they represent the fulfillment of a lifelong dream. Whether it’s owning a private island, traveling to space, or cruising the open seas in a luxury yacht, winning the lottery opens up a world of possibilities limited only by imagination—and bank account balances.

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Teri Monroe

How to Invest for the Long Term

December 1, 2023 by Jacob Sensiba Leave a Comment

Investing is an important part of your financial life. What’s more important is investing for the long-term.

With a long time horizon, you have the ability to ignore short-term market volatility and you have the ability to let your investments compound over time.

Investing this way can be difficult, however, so here are some tips on how to do that.

Pick a strategy and stick with it

You need to pick and stick with what works for you. There are several strategies that you could choose.

Value – A strategy that involves a deep dive into company/industry fundamentals. Companies/industries in this area may or may not be out of favor. All you care about is how the underlying fundamentals look.

Growth – High flyers. Companies with high P/E ratios. Companies that have a strong case for continued growth. Sectors like technology and consumer discretionary are considered growth.

Contrarian – If you buy when others sell or sell when others buy, you may be a contrarian investor. You go against the herd. Someone who does this has a unique ability to be extremely objective.

Momentum – You invest in companies or sectors that are performing well and are fairly likely to continue that trend going forward.

Start early

This is no secret, the earlier you start the better. Albert Einstein once said, “Compounding is the eighth wonder of the world.” It really is amazing what compounding can do. If you have 20, 30, or 40 years to invest, you should be sitting pretty at that finish line.

For example, say you have two investors. One investor starts contributing $1,000 per month to an account and invests in a stock market index ETF, starting out at 25 and stops contributing after 10 years.

Another investor starts contributing $1,000 and that same index ETF, starting at 35 and they contribute until they turn 65. At age 65 person A ends up with 1.49 million, and person B ends up with 1.26 million.

Compounding truly works wonders. Start early and give compounding a chance to work its magic.

Make every move with the future in mind

Every decision that you make needs to be a slow and thoughtful one. It’s particularly important to make decisions with your future self in mind. Delayed gratification is HUGE when investing for the long term.

For example, you have your debts paid off and now have a little extra money each month. You decide that you want to buy a boat. You save up and pay $20,000 for a nice, new boat.

Here’s the flip side. Say it took you three years to save up for that boat. Instead of saving, you deposited $5,500 per year into a Roth IRA (max contribution amount). This is invested in a stock market index ETF we mentioned earlier.

Now, let’s go out 10 years. You still have that boat and have taken good care of it. However, it’s lost over 50% of value over that time period. Conversely, that $16,500 that you invested has grown to $33,600.

Buying the boat may have felt good before, but investing that for the long-term is by far the better financial decision.

Invest in what you know

Peter Lynch famously said, “Invest in what you know and know why you own it.” (Oh and there are more great Peter Lynch quotes here). This is such an important principle within investing. If you are competent in the consumer staples sector, stay in the consumer staples sector.

At times you may see technology stocks return far more than your sector, but you could have easily invested in a technology company that went bust. You don’t know the industry so how would you know what’s good and what isn’t.

By sticking with an industry that you are knowledgeable about, you increase your chances of success.

Contribute regularly

Contributing at regular intervals does two things.

One, you’re saving and investing more, which increases the size of your nest egg.

Two, when the market ebbs and flows, you will continue to invest the same amount each month/year. You’ll buy more when it’s low and buy less when it’s high.

This is called dollar cost averaging. It effectively reduces your cost basis for your entire position, which effectively increases your gain, if your investment is up when you sell it.

Diversify

One of the most effective ways to reduce how much your portfolio reacts to dramatic shifts in the market is to diversify. Hold some stocks, some bonds, some cash, some gold, and some real estate. There are other investment products you could own, but these are usually the big ones.

Be objective

Try to take your emotions completely out of it.

When the market starts to sell off, you need to objectively look at your positions. Look at the characteristics of the business. Has anything changed? Or is it just declining due to a broader market selloff?

If it’s the latter, take some of that cash you have and buy that baby at a discount.

Use stocks

Over the long-term, stocks are the best investment to a) outpace inflation and b) effectively appreciate the money that you’ve saved.

Utilize various products

There are a variety of vehicles out there for your investments. Take advantage of as many as you can.

A 401(k) is an employer-sponsored retirement plan. Money saved in it can lower your taxable income and investments grow tax-deferred.

Traditional IRA – Individual retirement account. You open it up and save in it. Tax-deductible contributions. Investments grow tax-deferred.

Roth IRA – Similar to a Traditional IRA, except money contributed is not tax deductible, but money withdrawn is tax-free (money withdrawn from 401k and IRA is taxed).

These are just a few of the vehicles that can be used to save for retirement.

Next week I will dive deeper into the various products available.

Say no to penny stocks

These are stocks that cost less than $5 per share. More often than not, these are very risky and the companies themselves have a much higher probability of going out of business than other companies with higher stock prices.

Don’t invest via “hot tips”

Your friend says, “A stock I invested in last week is already up 100%, you need to get in on this before it goes any higher.”

When you hear this, just let it filter out of your brain. Odds are, the dramatic increase in price is pure behavior related, and no stock can sustain that kind of growth. That stock will come crumbling down at some point.

Think of the tech bubble from the 2000s. There were companies with literally no information about them, and they were going from $10/share to $200/share within a matter of weeks.

Just 48% of companies from the dot-com bubble survived past 2004. (Source)

Conclusion

Investing for the long-term is your greatest chance for financial success. Starting early, contributing regularly, and ignoring the noise are only a few great tips discussed here, but they are probably the most important.

If you would like to hear more about long-term investing and/or for our disclosures visit www.crgfinancialservices.com.

Rates of return are hypothetical, are provided for illustrative purposes only, and do not reflect the performance of an actual investment. All investments involve the risk of potential investment losses and no strategy can assure a profit. Past performance does not guarantee future results. Diversification seeks to reduce the volatility of a portfolio by investing in a variety of asset classes. Neither asset allocation nor diversification guarantee against market loss or greater or more consistent returns.

Jacob Sensiba

My name is Jacob Sensiba and I am a Financial Advisor. My areas of expertise include, but are not limited to, retirement planning, budgets, and wealth management. Please feel free to contact me at: jacob@crgfinancialservices.com

www.crgfinancialservices.com/

How Can a Lawyer Save You Money During Your Upcoming Merger?

November 21, 2023 by Erin H. Leave a Comment

You’re in the right place for all you business-savvy leaders who are gearing up for a merger. A big financial matchup can either make it rain or leave your pockets feeling a bit light. Your trusty lawyer can be the hero of your merger. Hunter Fowler, the attorney, tells us there is a sea of 1,315,561 lawyers in the U.S. This means that finding the right legal navigator can be your secret weapon to saving serious money during your upcoming merger. Let’s break it down in the language of dollars and cents!

1. Dodging Legal Landmines: The Costly Art of Avoidance

In the legal realm, a little bit of effort to prevent a large headache later on is well worth your time. Mergers are intricate dances that can easily step on legal landmines. Of all the executives that MarketSplash surveyed, 90% of them state that they believe that mergers and acquisitions have become increasingly intricate and fraught with risk. Lawyers can spot potential issues before they become financial sinkholes. By dodging these legal bullets, you’re essentially saving your finances from a costly fallout.

2. Ironclad Contracts: Fortifying Your Financial Fortunes

Contracts tend to fly around quickly when you’re in the midst of a merger. It’s possible that someone will miss something important. Chaos is not good for business. Armed with their legal prowess, a lawyer can draft ironclad contracts that ensure everyone understands all the details. This harmony isn’t just good for morale; it’s fantastic for your finances. No misunderstandings means no costly disputes.

3. Fraud-Fighting Heroes: Shielding Your Finances

Did you know that according to the Association of Certified Fraud Examiners (ACFE), businesses lose about 5% of revenue yearly to fraud? That’s like having a leak in your financial boat. Lawyers, equipped with their fraud-fighting abilities, can implement measures to safeguard your finances during a merger. From scrutinizing financial records to implementing robust internal controls, they’re the financial go-to to keep your business afloat.

4. Due Diligence: The Investigation for Solid Finance

Before you dive headfirst into a merger, you need the financial lowdown. Enter due diligence, where your lawyer delves into the financial nitty-gritty of the business. They uncover skeletons in the financial closet, ensuring you don’t inherit any nasty surprises post-merger. It’s like financial spring cleaning. With a little effort now, your finances will breathe easy later.

5. Negotiation Wizards: Striking the Financial Gold

Negotiations during a merger are like a high-stakes poker game. You want to walk away with the financial pot, not an empty wallet. With their negotiation skills, lawyers know when to hold and when to. They can secure favorable terms, whether pricing, payment structures, or post-merger obligations. In the game of finances, having a legal ace up your sleeve is priceless.

6. Regulatory Roadmap: Navigating Financial Compliance

Regulations are the not-so-glamorous side of business. Ignoring them can cost you big time. Lawyers, with their regulatory knowledge, ensure that your merger adheres to all the financial rules. From tax implications to compliance checks, they make sure you’re on the right side of the law, saving you from potential financial penalties and headaches.

7. Post-Merger Bliss: Ensuring Financial Integration

Once the honeymoon phase of your merger begins, it’s time for financial integration. Lawyers play a pivotal role in seamlessly merging systems, contracts, and finances. This isn’t just about a smooth transition; it’s about saving you from the financial chaos that can arise when things don’t mesh well.

There you have it, a crash course on how a lawyer can be your money-saver during a merger. In a world where mergers can be tricky, having a legal guide is like having the cheat codes for financial success. It’s time to make that legal call and ensure your merger isn’t just a dance but a financial masterpiece!

Exploring VA Construction Loans: Transforming Homeownership Dreams in Texas

October 30, 2023 by Susan Paige Leave a Comment

VA Loan in Texas: Unveiling Opportunities for Veterans

Exploring VA loans in Texas opens doors to specialized mortgage options tailored for veterans and active-duty service members. VA loans provide unique benefits, including competitive interest rates and no down payment requirements, transforming the homeownership landscape for those who have served.

Understanding VA Construction Loans

The VA Construction Loan is a valuable resource for veterans seeking to build their dream homes. Specifically, the VA One-Time Close Construction Loan streamlines the construction and permanent mortgage phases, making homeownership customization more accessible for veterans in Texas.

Key Benefits of VA Loans

Zero Down Payment Requirement

One of the most advantageous features of VA loans, including the VA Construction Loan, is the absence of a down payment. This facet eases financial constraints, enabling eligible individuals to secure homes without a substantial upfront payment.

Competitive Interest Rates

VA loans are renowned for their competitive interest rates, significantly reducing the long-term cost of homeownership. This benefit supports veterans in their pursuit of owning a home in Texas.

Streamlined Process with VA One-Time Close Construction Loan

The VA One-Time Close Construction Loan simplifies the construction process, combining construction and permanent mortgage into a single loan. This seamless process reduces paperwork and additional fees, offering convenience for veterans building homes.

The Impact of VA Loans in Texas

Empowering Veterans in Homeownership

VA loans have a profound impact on the homeownership journey of veterans in Texas. These specialized loans open avenues for those who have served the nation, making their dreams of owning a home a tangible reality.

Strengthening Communities Through Home Building

The accessibility of VA loans, particularly the VA Construction Loan, contributes to community development by facilitating the construction of new homes. This not only benefits veterans but also enhances the housing landscape in Texas.

Applying for VA Loans: The Process and Eligibility

Steps to Obtain a VA Loan

Eligibility Verification

Ensuring eligibility is the first step. Veterans and active-duty service members must acquire a Certificate of Eligibility (COE) to qualify for a VA loan.

Choosing a VA-Approved Lender

Selecting a VA approved lender is crucial. These lenders specialize in VA loans, providing expertise and guidance tailored to the specific needs of veterans.

Application and Approval

Once eligibility is confirmed and a lender chosen, applicants can proceed with the VA loan application. The approval process involves verification of income, credit history, and property appraisal.

Eligibility Criteria for VA Loans

Eligibility for VA loans in Texas includes service requirements based on discharge status, length of service, and other factors. Veterans, active-duty personnel, National Guard, and reservists may all be eligible, provided they meet specific service requirements.

Conclusion

VA loans, including the VA Construction Loan and the VA One-Time Close Construction Loan, have revolutionized the home buying process for veterans in Texas. These specialized loan options offer financial flexibility, competitive rates, and simplified processes, making homeownership more accessible for those who’ve served the country.

For veterans in Texas, VA loans represent not just a financial opportunity, but a chance to fulfill the dream of owning a home in a state they hold dear.

Here’s How Much A Doctor’s Visit Is Without Insurance

October 30, 2023 by Tamila McDonald Leave a Comment

When you lack health insurance and need to schedule an appointment with a medical professional, you’ll have to pay for the visit out of pocket. In some cases, that idea is daunting. After all, health care is known for being expensive, particularly if you’re uninsured. By understanding how much the appointment may cost, you have a chance to financially prepare. If you’re wondering, “How much is a doctor’s visit without insurance?” here’s what you need to know.

How Much a Doctor’s Visit Is Without Insurance

Typically, the cost of a doctor’s visit if you don’t have insurance is anywhere from $150 to $600. However, there are a variety of factors that can ultimately impact how much you’ll owe. Patients can pay less or more than what’s outlined in the range above. As a result, it’s critical to understand the factors that may influence the cost, as well as how you can get a more accurate figure before you visit a medical professional.

Factors That Impact the Cost of a Doctor’s Visit

Multiple factors ultimately impact how much a visit to a doctor costs, including:

The type of physician you see (primary care, specialist, emergency, etc.)
The facility you use (clinic, hospital, emergency room, urgent care, community health, etc.)
The type of care sought
Whether in-office treatments are administered
Whether tests are ordered

In some cases, the price may vary depending on whether you’re a new or returning patient. If you’ve never been to that facility before or haven’t seen a specialist in a specific department previously, you may have to pay a “new patient intake” fee.

Generally, new patient fees are designed to account for the fact that seeing someone who hasn’t visited previously takes more time, as they often have to dedicate more time to learning about your medical history. If you’re a returning patient, your medical history is already on file, which can theoretically shorten the appointment.

How to Get an Accurate Estimate

If you’re scheduling an appointment and not seeking emergency care due to an urgent health matter, you can often get a reasonably accurate estimate of the cost of the visit in advance. Hospitals are required to list price ranges for common appointments, procedures, tests, and treatments online, and many smaller clinics are choosing to do the same. As a result, an online search may be enough to help you determine how much you’ll spend.

Additionally, patients can request a “Good Faith Estimate” for an upcoming appointment. With that, the healthcare provider creates an outline of the anticipated cost of the visit. While they might not be 100 percent accurate, as your appointment may end up involving something unexpected, it gives you a reasonable picture of the cost.

Ways to Reduce the Cost of a Doctor’s Visit When You’re Uninsured

If you need to see a doctor and don’t have insurance, there are ways to help minimize the costs. First, community health centers may make accessing free or low-cost services simpler. These typically work well for preventative or routine care and health screenings.

For acute medical needs, consider heading to an urgent care clinic instead of an emergency room. Urgent care clinics often accept walk-ins, and they usually cost significantly less than if you saw a physician in the emergency room.

Another option is to explore telemedicine services. This might work if your health condition is easy to explain and tests or a physical exam aren’t necessary.

If you live near a medical school, you may have access to a lower-cost clinic there. These clinics help student doctors gain experience, but they’re overseen by licensed physicians. Still, since the bulk of your appointment is handled by a student, the price is typically lower.

You can also ask about self-pay discounts, as some facilities do offer them. Additionally, you may be able to get a discount if you can pay the full cost of the appointment all at once in cash, particularly if you’re visiting a hospital instead of a smaller clinic.

Finally, consider going to public hospitals instead of private ones. Public hospitals are typically more affordable by comparison. Plus, you may be able to access a charity care program through a public hospital. Most charity care is made available to patients who have a household income level below a specific threshold. As a result, it can reduce the out-of-pocket cost of care for lower-income patients.

Are you surprised at how much a doctor’s visit is without insurance? Do you think the cost of an appointment for the uninsured is problematic, or do you think it makes sense? Share your thoughts in the comments below.

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Tamila McDonald

Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.

Financial Planning Basics: The Financial Pyramid

September 9, 2023 by Jacob Sensiba 1 Comment

The first time I heard about the financial pyramid, I was instantly intrigued. I had never thought about it in this concept before, but I unintentionally had been practicing this in my own life.

In finances you have to build the base before you can reach the top or it will all fall apart, hence the allegory of a pyramid.

The Base

The base of your financial pyramid should be a solid financial plan. This includes your written budget, short-term and long term goals, and how you will make your income as well as an investment plan to be implemented in the future.

You should have a positive cash flow, meaning, no longer using debt to fund your lifestyle.

Once you have implemented the base, you can move onto the first building block: protection.

Protection

You must protect yourself from the unimaginable, so I recommend everyone have a will and power of attorney, insurances such as life, health, auto, homeowner’s/renter’s, and disability, and a basic emergency fund of at least $1,000-$2,500.

I was thankful to have my mini-emergency fund when I had some car issues because I was able to pay cash to repair them instead of having to go into debt. The overall pyramid looks something like this:

The second building block is low-risk wealth accumulation. This would include saving for a home, retirement, and children’s college education, in addition to reducing consumer debt.

Debt Reduction

Financial guru Dave Ramsey teaches that you should get completely rid of any debt before beginning savings, although, in my opinion, you should still invest in retirement while reducing debt only if your employer offers a match.

I, myself, am in the debt reduction stage but still contribute to my retirement account since my employer offers up to a 4% match into my 401(k).

Additionally in this step, you should create your emergency savings fund. Many people believe an emergency fund of 3-6 months’ worth of expenses is adequate.

Investing

The third building block is high-risk wealth accumulation. This includes investing. Expanding on the second block, in this stage, you will max out your retirement accounts and then build a non-registered investment portfolio.

Once you have built your net worth to an amount sufficient to fund your lifestyle and retirement, you can move to the next stage of investing– speculation (also known as speculative investing.) In this stage, you invest money into investments such as start-up companies.

This is very risky, so you don’t want any debt by this stage. Also, you should only invest a small portion of your total investments into speculation. Also in this stage, you’ll want to begin tax planning, especially as your retirement investments increase.

Estate and Charity

The final building block is wealth distribution. You’ll gift and spend the money you have earned. As well as plan your estate for future generations or charity upon your death. Since your net worth increased quite a bit since you first started the financial planning pyramid, you should update your will and/or trust.

Finally, once you’ve got these basics nailed down, it’s time to hire some help. One approach a lot of millennials use is robo-advisors. A robo-advisor is a machine that uses various theories about portfolio allocation to make investing decisions. If you’re interested in a critical review of this, consider checking out Roboadvisorpros.com, they have a good article on the topic.

For help getting your financial pyramid in order, check out these great articles.

Yes, Financial Planning Matters – Here is Why
Best Free Financial Advice
Become a Financial Expert Step-by-Step

Jacob Sensiba

www.crgfinancialservices.com/

How Inflation is Changing Our Lives and Not for the Better

August 28, 2023 by Tamila McDonald Leave a Comment

Back in 2021, inflation hit its highest point in 40 years, with prices rising by about 7 percent in December when compared to the previous year. Experts project that inflation will ease in 2023, but that doesn’t mean the impact won’t remain well beyond when the rates recede. Instead, they’ll affect the lives of many, mainly for the worst. If you’re wondering how inflation is changing lives, and not for the better, here’s what you need to know.

How Inflation is Changing Lives

Inflation typically pushes prices up, including on everyday goods and household staples. While some inflation over time usually isn’t avoidable, extreme increases create substantial financial hardships for many people, particularly lower-income households. Inflation to this degree dramatically reduces buying power and, if you’re already struggling with a tight budget, it may seem like your ability to make ends meets evaporates overnight.

Even middle-income households can feel the pinch. Often, rapid inflation isn’t coupled with corresponding wage growth. As purchasing power falls, households that were once reasonably comfortable can end up on the brink.

Retirees Are Burdened As Well

Retirees are similarly burdened. Since many older Americans live on fixed incomes, falling buying power can be catastrophic, especially if it happens quickly.

In all of those cases, quality of life diminishes. Households have to make tough choices. For example, they may have to decide between buying gas to get to work or getting a critical prescription medication. They might end up debating between buying food and covering an electric bill.

While those examples may seem extreme, they can reflect reality for a surprising number of Americans. Additionally, even if inflation rates fall, prices will remain high if inflation is part of the equation at all. While there may be some balancing, some product may keep their bigger price tags for a while, particularly if companies are trying to recoup lost profits that they experienced due to inflation.

Other Sectors That Are Impacted

There are other sectors that also see the impact of inflation. With rapidly rising home prices, first-time buyers may have a difficult time competing in the market. They may be forced to delay homeownership or might take on loans that stretch their budget too thin.

If borrowers have variable rates on loans or credit cards, the interest they pay may be heading upward. When inflation is running rampant, variable rates usually increase, resulting in larger financing charges.

Ultimately, inflation has a significant impact on most people. And, in most cases, it isn’t for the better.

Should You Worry About Inflation?

Generally speaking, worrying about inflation isn’t going to reap any dividends. However, being aware of its presence and potential impact is wise. By knowing when inflation is having an effect, you can make decisions before your budget is stretched too thin. Thus, giving you the ability to better weather the storm. Additionally, you can look for income-boosting opportunities. This could include a side gig or part-time job, allowing you to increase your earnings to compensate for lower buying power.

Ultimately, inflation won’t remain this high forever. As supply chain issues resolve, wages shift, and other changes occur, the situation usually calms notably, even if it doesn’t go away completely. Ideally, you simply want to adapt as much as possible, ensuring you can preserve your buying power until inflation becomes less of an issue.

Have you or your household been personally impacted by inflation? How did it affect your budget and financial wellbeing? Have you found a way to limit its effect on your finances that you’d like to share? Share your thoughts in the comments below.

Tamila McDonald

In Defense of Financial Advisor Fees

August 28, 2023 by Average Joe 20 Comments

I was a fee hater.

Like a younger, more handsome John Bogle, I would rail on fees. I’d stand on every rooftop screaming about avoiding fees at all cost.

For this reason, when I was a financial advisor, I provided what I thought was top-notch service and undercharged for it every day.

How much did I charge? My minimum fee was $500 per year.

Undercharged? There is no such thing, Joe! Less fees = better. Duh! You should have charged $300!

Think so, do you? Sit close, young padewan, while Uncle Joe tells you a story:

My Experience With Fees

Early in my career I lucked into the opportunity to give speeches on behalf of one of the top advisors in the country. I’d fly wherever he wished and spoke to rooms full of people about good planning. In exchange, he allowed me to move my offices into his suite.

Awesome! What a break for a new advisor; I’d get to see the inner workings of a well-honed operation and maybe glean some tips.

At first I was disappointed. All I saw was what looked like a cookie-cutter assembly line of advice and deliverables. Many clients received offshoots of similar advice. The firm never stuck their neck out. They avoided complex situations at all cost.

That lead me to believe that he was among the best in the country only because he could “sell” people on ways he’d jack up their fees.

…and jack he did. I rarely saw him charge less than $2,500 for planning, then garner asset management fees on top of that. He was a fee-based selling machine.

One day the operations manager and I were talking. I asked a polite question about how redundant their process management workflow seemed. To give you an idea of what I thought about this guy: I’m sure the term “cocky smartass” wouldn’t be far off the mark.

He said, “Have you noticed that we charge five times what you charge?”

I smiled. “Yes.” What a loser. I could never charge what they did! They were just leeches, skimming off of their client’s blood.

He said, “We charge five times more because we’re five times better than you.”

I took it personally.

I shouldn’t have.

Three months later, we were in agreement:

he was five times better than me.

Why He Was Better

This planner was so good, I’d worked right under his nose and hadn’t noticed his skill. The systems were sublime. Where I’d seen cookie-cutter assembly lines before, now I saw a brilliant asset allocation arrangement. Where I’d believed he was charging excess dollars to put boring plans in place, he was dotting every “I” and crossing every “T” for clients…mostly doing the boring stuff that usually was swept under the rug.

In short, he had a proven system of asset management and plan building. If you wanted that service, he covered his costs with his fees. If you didn’t want it, you should probably look elsewhere.

He didn’t try to be everything to everyone.

What You Can Learn

You don’t have to pay $2,500 or more to some advisor if you’re willing to perform the critical tasks that this advisor captained for his clients:

1) Design a plan that covers the six areas of financial planning and rigorously maintain the plan according to a set schedule. Make sure everyone involved is up-to-speed with the details.

2) Build a system to check and maintain your assets against your plan. He had systems in place to notify him when assets deviated too much from the plan. Build your own set of alarms.

3) Carefully guard against taxes and excess fees. This seems like an oxymoron, because this advisor charged a ton of money, but his fees were largely performance based. To increase his fees (and his client’s net worth) he had to ensure the plan was a lean-mean-return-gathering-machine. The only way to do that was to develop a comprehensive tax strategy (example: tax efficient investments outside of IRAs while tax-eaters inside shelters) and low-cost investments.

4) Scour insurances for opportunities. This advisor would review all of his client’s insurances regularly (every two years) to find wasted money. He’d also use insurances wisely to plug holes. One place he nearly always recommended: disability coverage.

5) Build legacies. He was the adamant that everyone either had a family or charitable organization they’d want to have flourish if they couldn’t use their own money. He’d make sure that the estate plan was air-tight and (as with insurance) review these plans every two years.

6) Set communication systems. Clients received a newsletter every six weeks. There was a conference call scheduled for two quarters of the year, along with two face to face meetings. Generally, the face to face meetings were comprehensive and the phone calls were “just checking up.” While he “allowed” only one member of a marriage to take part in phone calls, he was adamant that both spouses attend meetings. He’d become especially irate if one didn’t understand finances and didn’t want to participate. His thinking: if the knowledgeable spouse passed away, the other was screwed.

He also wasn’t afraid to call every client when markets imploded. During the 2002 and 2008 crisis, his whole team was on the phone non-stop, sharing information and passing along strategies. Usually, he wasn’t changing course, because his asset allocation model was already designed to weather downturns. However, clients loved hearing from him.

Was some of this overkill? Maybe. Often insurance and estate planning needs didn’t change. However, when something did, the advisor was on top of it fairly quickly.

It’s a Choice

During my 16 years as an advisor, there were many clients who refused to pay fees even though they would have been far better off had they paid this advisor. It’s fine to accomplish your financial goals without an advisor (in fact, if you’re willing to complete the six steps above, I’d recommend it). But if you decide not to, make sure you’ve designed systems for success and aren’t just being cheap.

Financial planning is just one example. Are there areas of your life where you’d be better off paying a fee and you just can’t do it? Are you cheap?

(Photo credit: Hands Clenching Dollars, Muffett, Flickr; Couple and Advisor, Jerry Bunkers, Flickr)