Why Hire a Certified Financial Planner?

Financial PlannerWhen it comes to your finances, any advice you follow can greatly affect your future life circumstances. It is therefore imperative to know that you have the best help possible, to ensure financial security. There may be some excellent financial advisors out there without a certification, but hiring a certified financial planner does have certain benefits. In the end, however, you will also need to trust your gut on whether the person sitting in front of you during the first meeting is someone you could work with.

What Is the Difference Between a CFP and Other Financial Advisors?
Before the CFP board will grant a certification, the financial planner first has to go through a certain set of steps. A certified financial planner has to have relevant education and complete a specific set of courses that cover financial planning. Many CFPs are also attorneys. After acquiring the relevant education, a candidate needs to pass a ten-hour exam that tests their knowledge on financial planning and work a minimum of three years in the profession. A CFP also has to agree to a certain set of ethics required by the board and act accordingly to be able to keep the certification.

What Does Financial Planning Involve?
Financial planning is a process you follow whereby you identify your financial goals for the future and create an understanding of when and how you may need to make use of your money. Once you have an overview of your financial situation, you can start creating a plan of action in order to reach your financial goals. This can be done independently or with the help of a financial advisor.

How Can a CFP Help?
Although you can get very valuable financial advice online from websites such as moneytips.com, a CFP can help to assess your specific situation and create a tailor-made plan. A certified financial advisor should have the necessary education and experience to guide you, giving you a broader perspective over your finances and help you to create a more effective plan. A CFP will also have more knowledge on the different options you have, such as the type of retirement accounts you should use, which mortgage would be the best for you, how you can do things differently to improve your financial situation, how you should handle your taxes, and how to handle your properties. Some, but not all CFPs, help with investment planning.

Questions to Ask Your CFP
When hiring a CFP, you need to know that it is a person in whom you can trust, who is not going to confuse you with technical jargon and won’t try to force decisions onto you. The first question you could ask is what type of clients this CFP usually deals with, to determine whether their specialization is suited to your situation. Secondly, their experience is important, so you can ask how many years they have been practicing. Lastly, you may want to ask them to explain a financial concept to you in order to determine their knowledge and capability to explain things clearly. It is also important to discuss compensation so you know how much their services will cost you.


Use Life Insurance To Help Second Marriage Estate Planning Issues

download (12)How do you create conditions for both your present spouse and your kids from a past marriage when you die? You can remove potential economical friction after you die with the help of insurance plan coverage. Here’s how… Should keep all your money to your present spouse for her to use while she is living yet ask her to be sure to keep a reasonable legacy to your kids from a past marriage? I don’t think so and here’s why… The common strategy to deal with bequests to protect previous kids and a present spouse is by developing a trust. You wish to sustain your present spouse at her quality of life while she lives and have what continues to be at her death go to your kids of your first wedding. So you organize to invest a trust to do just that when you die.

Two issues affect this strategy. The first is that your kids, as ‘remainder beneficiaries’ of the trust, may think that your spouse is using up too much of the finance in fulfilling her recognized quality of life. They can – as remainder beneficiaries of the trust – lawfully challenge distributions from the trust to their stepmother if they experience it’s over and above what the trust may allow to sustain her living standard. This, of course, can create difficult emotions and aggravate members of the family connections. The other issue is that your kids must wait until your spouse – their stepmother- passes away to get your legacy to them. This can furthermore create disappointed relationship. So, create certain provision for your kids of a past wedding now to protect your desires and decrease possible issues between them and your present spouse after you die.


Plan Your Educational Investment

images (33)When it’s learned effectively, it can be one of the best careers in the world. No managers, not customers, flexible time-table, live where you want and… endless income potential. Who wouldn’t want these things! A university degree is no longer an assurance of discovering an excellent job and the desire of the “good life.” Indeed, having a university degree is the same thing as a high school degree was a few years ago. Nowadays, if a graduate doesn’t have at least a masters or PHD, possibilities of discovering an excellent job is a task. Even then, the pendulum has thrown against being an employee as unions have missing much their power and even having an excellent job is not an assured direction to way up economical and public mobility.

Parents do their best, save and pay significant amounts of money hoping of delivering their kids to acquire a university degree. The main objective is to meet up with the parent responsibility of assisting their kids protected with an excellent job and become an effective resident. However, the actual objective of a university degree is not for its intellectual-philosophical growth. It’s mostly about discovering an excellent job and position. Moreover, being an university graduate student places up incorrect objectives in both mother and father and the graduate student. Ask most graduate students and they will tell you that they see a university degree as moving through a public ring that distinguishes class more than assisting to a great job. However, that relationship becomes quite clear when job looking begins. Having an excellent technological knowledge, on the other hand, is seen as realistic but with no long lasting effects. It’s a class factor. So, what happens when your university graduate can’t discover a job or… perhaps even more intense, controls to protected a job only to get cut down or put on furlough?

Professional Dropouts

Does having an excellent job or career meet actual needs? Here’s a increasing phenomenon: experts, like lawyers and doctors, are walking away from their careers because of pressure, diminishing compensation, undesirable way of life or simply cynicism. What happens to the parent and public economical commitment in their children’s’ education?

Of course, there is risk in every economical commitment. Perhaps its time to protect your academic investment? Just as with any significant economical commitment decision, it seems sensible to protect in case factors don’t turn out the way it was prediction. Nowadays, technological innovation, globalization and some yet to be recognized political-economic causes, are developing a feeling of uncertainty up and down the worker variety. We all know that. In investment, there are no assures. Indeed, the only assurance is change… if we are fortunate. And that is why mother and father need to have a two track plan when it comes to their kid’s post-secondary education.

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Smart ways to pay-off students loan wisely

Planning is the key to success. Students should also plan their loans and financial matters wisely and productively. If they make a prior study of the way they want to shape their career and implement their plans effectively they won’t face problems while repaying the debt. Students should have a clear idea about their existing and borrowed funds. They should also have an idea about their expenses and available funds. If the expenses out-go the funds then it would be problematic for the students and they will have to find ways to tackle it efficiently.

The days one spends in the college are said to be the one filled with a lot of joy, new challenges and excitement for the future. However, all this can be difficult to manage if one does spend thoughtlessly and gets into a habit of meeting each of their desires by means of loans. This way they will pile up multiple loans and their repayment would take a lot of money every month from them and for some it might overshoot their monthly paychecks. Here are certain ways in which you can control your expenses while in college and set out on a best plan to repay the debts you have taken.

  1. You must have a concrete repayment plan. There are various alternatives while selecting a repayment pan, you should choose the best out of all, beforehand only. Wise decisions should be made in order to avail maximum benefits and less of tensions.

Students should also check the inflow set repayments which has cluster of repayments options which may prove to be fruitful for them. It has options which are feasible for every genre of people be it employed or unemployed etc. Also there are schemes which can result into delay of repayment of loan beyond the contract period. Students should also check deferment as an option, though it is not wise and advisable.

  1. You can also scale down the repayment amount by extending the loans for people with bad credit period. Income set repayment depends on your income and not the amount which you owe to your creditor. This can result into toning down of the monthly repayment amount considerably.
  2. Online materials can also prove to be of much help for students. But students should go aboard wisely as plenty of information is available on these topics. Every school has a website or brochure stating why they are the Stewarts of that particular area. Students must go through these web portals and make their decisions wisely. Also many education institutions offer financial support to students even after the completion of graduate program.
  3. After completion of the above three criteria’s students should find ways of repaying of the interest amount. This can result into saving of good amount of money. Gains tend to capitalize which results in increase of principle amount. The accrued interest keeps on piling which results into paying off larger sum than the owed amount.
  4. Fifth way of paying off is going in for deferment. At the times of financial instability you can talk to your creditor about the problem and opt for deferment of load amount for some period. But this category should be best avoided as deferment can also lead to bigger problems.
  5. One can also go for consolidation of debts. Though this is available on only loans with variable interests such as those loans which are for older students. For getting certain governmental and non-governmental jobs, consolidation of debt is mandatory in order to match the eligibility criteria.


So if students want to make their repayment experience, stress and hassle free, then they should definitely study about the methods of repayment and choose the best alternative. This would save them from future tensions.


All the efforts boil down to one thing and that is how efficiently you learn to manage your expenses and utilize the money you have in hand. If you succeed into this, you will manage any kind of loan which comes your way.


Auto Finance: Your Second Checklist

Auto FinanceMany aspects of auto finance are common considerations during the application phase, such as the fees and interest rate being offered by the lender. While it’s certainly important to evaluate the loan terms in regard to how much it will cost you, here are some other aspects you need to keep an eye on to ensure you’re getting a fair deal.

Ignore the Pressure
Car dealerships often have relationships with lenders and may push those services to close the deal and encourage their financial ties. But you may get better loan terms, including a lower interest rate, from a local credit union or your current bank.

Politely, but firmly, tell any car dealer salespersons that are pressuring you into using their financing that you need to comparison shop first. The dealership representative should give you time to get comparisons, as it’s in your best financial interest.

If a salesperson indicates the deal will not be available if you take a day or two to get rate quotes, consider going through another dealership instead. Dealerships with dishonest business practices regarding financing often threaten to end or stall transactions if the buyer won’t use their financing partner.

Get the Approval in Writing
Car auto loans often advertise financing deals with very favorable terms, but those terms are usually available only to those with excellent credit, according to the New York City Department of Consumer Affairs. Pre-approval means you may qualify for the loan but the lender has yet to finalize it and can rescind the offer.

Make sure you have the loan approval in writing, with all the terms clearly detailed and matching what you discussed with the lender. Never sign a loan agreement without reading the document in its entirety. If you notice a mistake, insist a new agreement be prepared with the current information. Don’t sign an agreement with errors even if the lender promises to fix the mistakes later, as you’re legally bound to the incorrect terms once you sign.

Don’t Stack Your Loans
Loan stacking occurs when you combine the balance of a loan from an old car you’re trading in and the financing of your new car together. Dealers often offer this arrangement through lenders to people who want to buy cars but currently have a vehicle that’s worth less than their original loan balance.

While loan stacking may seem like a solid idea financially, you’ll pay more in interest over the life of the combined loan if your new loan carries a higher annual percentage rate than your old one. Delay the car purchase and pay off your old debt first.

Ask Questions

Don’t be afraid to ask the loan officer any questions you have about the loan terms or the wording in your proposed agreement. A representative from the lender should be made available to you prior to signing any final loan documents. If you’re denied access to a representative or can’t get clear answers to your questions, use another lender.