Archive for October, 2010

Wealth Management Topic: Types of Income

October 22nd, 2010

Wealth ManagmentIncome can be divided into three categories: active income, portfolio income and passive income. The earliest type of income you’re likely to experience is active income. Active income is the money you earn by working a job. Portfolio income is money you make through investments, such as stocks, bonds, mutual funds and precious metals. Your earnings or losses in this case are tied to the increases or decreases in the value of the particular investment. Passive income is money you earn without working or residual money generated from work performed in the past. Sources of passive income include stock dividends, real estate rentals, royalties and interest.

If you are thinking about retiring some day, portfolio income and passive income probably seem attractive to you. With proper financial planning, you can turn your active income into both portfolio income and passive income. Ultimately, you want to phase out the active income and make sure you have enough of the other two types of income to sustain a comfortable lifestyle. A successful retirement is the result of careful financial planning. For information about wealth management and retirement planning, contact a qualified Fort Worth wealth management advisor.

Under 30? Stay Above Average w/Your Finances

October 15th, 2010

“Gen Next.” millennials-personal-finances-rwmg fortworth
“Generation Y.”

No matter how you identify yourself, there is one thing that truly sets you apart from the generations before you–overwhelming debt.

I know by now you’re well aware of the sobering statistics–according to a November MetLife personal finance poll, 70% of Millennials were not setting aside savings and 43% were burdened with credit card debt (with 20% carrying a balance of $10,000 according to Fidelity Investments).

I’m not writing this to overwhelm you with statistics. I want to encourage you to start an action plan to not just help manage and eventually eliminate your debt and to approach educating yourself about personal finance management with the same gusto you have for acquiring the latest iPhone/iPad app!

Call our offices at 817-479-9245 to schedule a free consultation. In the first 45 minutes, we’ll discuss your personal circumstances and help you start to formulate a practical plan for getting you out of debt, how to realistically manage your finances and how to start setting aside money for your future goals–whether you’re planning to continue your education, start a family, want to explore market and other investment opportunities (or all of the above!).

We look forward to meeting you.

Increasing Wealth Begins by Reducing Debt

October 8th, 2010
reduce debt, increase wealthIf you’re trying to plan for your retirement, your children’s education, setting aside savings or considering a plan to substantially increase your personal wealth, it all begins with eliminating or radically reducing your current debt load.

Sound impossible?

It’s not.

We’ve helped hundreds of clients who have come to us seeking advice and guidance to manage and grow their financial assets–and many of them have been saddled with debt, primarily credit card debt.

Because our services are highly customized to meet every individual client’s financial goals given their unique circumstances, we don’t advise blanket plans for reducing debt, but here are a few general tips that can help you start to tackle your debt–in particular your credit card debt–so you can save more:

1) Pay off MORE than your minimum credit card balance each month. This may not be new news–and it may be hard news to swallow on a monthly basis. Usually, the interest on a credit card is the highest APR you’re paying on any of your unsecured debt (and secured debt for that matter). You’ve heard the refrain before, but this is why it holds true, the sooner you pay off your credit card debt the better.

2) Enroll in 0% balance transfer programs if you can. If you qualify for a 0% interest transfer, you’ll be able to pay off the principal that much quicker that your current APR rate. Be cautious though of the plans you enroll in. The 0% interest may be for a limited time. So be aware of these time limits and if future interest rates could exceed what you’re currently paying.

3) Just say “no” to offers of higher credit limits. Despite these hard times and the temptation to take “the easy way out,” it really is in your best interest to avoid an increased credit limit altogether–and no credit cards if possible.

When our clients come to us looking for help to improve their financial circumstances, these are some of the guidelines that have proven helpful. Our goal is to help everyone who walks through our door achieve a state of financial fitness and a healthy perspective for their future. The first step begins by following at least one of the above.

If you have questions about how to achieve financial fitness, give us call at 817-479-9245 for a free consultation today.