This is a sponsored column provided by Thomas C. Block a financial representative with Asset Management Group, Inc. courtesy of Massachusetts Mutual Life Insurance Company (MassMutual). Please submit your questions to him via email.
If you are like many Americans, the current economic environment continues to make it difficult for your family to make ends meet. Many of us have readjusted our spending habits to such an extent that there is now a new normal. For example, we may no longer shop as much as or where they used to; we may settle for a staycation, rather than a true getaway; and items that were previously considered to be necessities have been relegated to the “can’t afford” or “not needed” category.
If you think these are temporary changes, think again. Many economic analysts feel that these new attitudes are here to stay.
Tips to help improve your economic future
Here are some tips to help you take stock of your overall economic picture, with actionable steps designed to help improve your long-term financial security.
Tip #1: Determine what is really important.
Take stock of what is really important to you and your family–is the newest electronic game system or cell phone more important than creating a secure financial future?
Start by developing your family’s mission statement. This is easier than it sounds: Simply write out what is important to you as a group. Be sure to include what your long- and short-term goals are, and what you are willing to give up in order to make these goals a reality. Don’t forget that along the way, you may still want to decide what little luxuries your entire family can enjoy (like a get-away) that you want to keep in your budget – since these can help you feel less deprived and even save you money (by keeping you from going out to first-run movies, for example).
Tip #2: Cut back, even if it hurts (a little).
Figuring out what is most important to your family from a financial perspective is a smart move -and a good decision for your long-term financial security. Making even small sacrifices in your spending can help you meet your goals. Look carefully at how you and your family members spend your money so you can identify where you can make small changes to cut back on non-essential expenditures. And don’t overlook the bigger-ticket items you pay for every month, such as your cable TV/Internet subscriptions and car insurance. Making minor adjustments to these items can free up more dollars than you might imagine, and play a significant role in helping you fund your family’s long-term financial goals.
Tip #3: Become a dedicated saver.
If you are like many families, trying to juggle financial priorities can make saving extremely difficult.
Successful savers use the concept of paying themselves first whenever they receive a paycheck. Over time, adopting that one smart move can help you reach your financial goal of saving for a car, a vacation, or whatever is a priority for your family. To help make it easier, check with your employer to see if you can have part of your pay automatically deposited into one or more savings accounts. It can make saving automatic–and nearly painless.
Tip #4: Run your numbers.
Do you know if you are on track with your current disability coverage, life insurance, and retirement savings plan(s)? In other words, will these important items provide you and your family with the amount of financial protection you’ll need – when needed? Don’t wait until it’s too late. Take the time now to assess their adequacy and make the appropriate adjustments.
Tip #5: Get the help you need.
When it comes to Tips 1 through 4, you may feel you need some assistance. Whether you need help in just one area or all four, start looking at your future through a new lens – one that has your family’s financial goals in focus, with a plan to help you get there. Contact a financial professional to discuss ways they can help you put these tips into action–and your financial dreams on track.
Taking the right steps today can help to ensure a better financial future for both you and your loved ones. Feel free to contact me today.
Provided by Thomas C. Block a financial representative with Asset Management Group, Inc. courtesy of Massachusetts Mutual Life Insurance Company (MassMutual). Thomas Block AAMS, AWMA, CRPC is a registered representative of and offers securities and investment advisory services through MML Investors Services, LLC, Member SIPC, 3975 Fair Ridge Drive, Suite 315N, Fairfax, VA 22033, Tel: (703) 218-6765. Local sales agencies are not subsidiaries of MassMutual or its affiliated companies.
© 2016 Massachusetts Mutual Life Insurance Company, Springfield, MA 01111-0001
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How to Get the Best Personal Finance Tips Every Day
It can seem daunting at first, but the more you read about managing your personal finances, the simpler it gets. One effective way to learn is to subscribe to the right people for daily personal finance tips, so when the time comes to make an important decision, you aren’t caught completely unprepared.From newsletters, blogs, and podcasts to Twitter accounts and YouTube channels, here are the best places to get personal finance tips every day.
Blogs and Websites Detailed articles are often the best starting point to the world of financial management. From aggregators to forums, here’s where you should head for advice.
The Simple Dollar Like many of us, Trent Hamm’s money was in a mess. He had a large amount of debt and no real plan to tackle it. Slowly but surely, by adopting sound practices, Hamm managed to pay off all his pending bills and get a strong financial foothold.
At The Simple Dollar, Hamm explains how to apply these practices, busts financial jargon, and lays out clear and simple strategies to tackle your problems. Apart from just debt, Hamm also uses layman’s terms to explain investments, mortgages, medical insurance, and other regular money matters.
All of this makes TSD one of the best personal finance sites around. It also offers a daily newsletter if that’s more up your alley, and posts regular updates on Twitter and Facebook.
Rockstar Finance The downside of not knowing enough about money and finance is that you don’t even know what you should be reading. Open up the Financial Times and it’s all jargon that you can’t wrap your head around. Instead, head to Rockstar Finance to get a dose of financial news that you can use.
Blogger J. Money, who is more famous on Twitter as @BudgetsAreSexy, gathers links to money-related articles that will help the layperson understand the world of finance. Apart from the top three articles, you’ll find a bunch of other must-read items as well as a collection of recommended websites, podcasts, and other Internet resources.While most of the articles are about the U.S. economy, Rockstar Finance also does a good job of gathering links that explain macroeconomic concepts, as well as common sense money advice for people anywhere in the world.
r/PersonalFinance Advice doesn’t always need to come from experts. Sometimes, the best person to ask is another layperson who has been in the same situation as you. Reddit’s r/personalfinance community is one of the most sociable sub-reddits, and is constantly updated with new information, personal stories, and Q&As.
The flairs in the right-hand sidebar help in navigating the forum based on topics (taxes, budgeting, housing, retirement, etc.), and the community also has regular events like Moronic Mondays and Triumphant Thursdays. And if you want a major overhaul of your money management, try a 30-day challenge for a better habit, which the sub-reddit organizes monthly.
Twitteratti The best way to get a daily dose of finance is if it’s being delivered to you in your Twitter feed. Helpful advice, important links, and chats with experts make up our recommendations of who you should follow.
@AffordAnything A lot of financial advisors on Twitter tend to just focus on promoting their blog posts or videos, so the tweet doesn’t really offer value apart from a link. That’s where @AffordAnything is different. Most of the tweets here are short pieces of advice on how to approach your money.
Money-management boils down to 3 things: what you earn, what you spend, and what you invest.
— Afford Anything (@AffordAnything) March 10, 2016The topics keep changing, from investments and retirement to savings and mortgages, but the words are always grounded in reality and pushing you into action. This insightful account can serve as an inspiration to keep you motivated as you tackle your money problems.
@MichaelKitces Michael Kitces is the author of the Nerd’s Eye View blog, where he comments about financial news and development. But more than that, Kitces is an active tweeter, constantly on the lookout for articles and blog posts that talk about finance. Unlike most tweeters, Kitces will also offer his opinion when sharing a link, telling you why it’s important.
Why It Doesn’t Necessarily Enhance Returns To Dollar Cost Average https://t.co/kFnSHtASeo pic.twitter.com/AzvfCWEn3T
— MichaelKitces (@MichaelKitces) March 9, 2016His feed is full of links from different publications, and perhaps more importantly, filled with charts, graphs, and other images for a quick view of what he’s talking about. Plus, he often holds talks on Periscope, so you can get in on a live video chat and ask him questions.
@WiseBread Wise Bread is a pretty successful money blog by itself, but its Twitter account — helmed by Ashley Jacobs — is the real treat. Jacobs, an expert on college finance, is great at getting other financial experts to hold Twitter Q&As and quizzes so that followers can learn about sub-topics in finance.
It’s a great way to cut through the clutter of cliché money-related tweets and links, since these niche experts are able to talk with more clarity about specific topics, instead of offering generic advice that any blogger with Google access could give you.
Podcast Pros Your daily commute is an excellent time to catch up with financial news and advice. From experienced journalists to two funny dudes, pop in your headphones and listen up.
So Money with Farnoosh Torabi Farnoosh Torabi might be a familiar face or name for many of you. She’s an award-winning journalist and television host, and frequent guest on several financial shows. Torabi hosts a podcast every weekday, talking to money advisors, investors, entrepreneurs, authors, successful business executives, and many more people with two helpful cents.
Torabi’s journalism background helps in asking the right questions to these guests and stitching together a narrative worth listening to. Also, every Friday, Torabi turns the spotlight on her listeners to answer questions submitted by people like you.
The Clark Howard Podcast Clark Howard has over 25 years of experience as a radio host who gives consumers practical advice on what to do with their money. And for most of those 25 years, he has had a nationally syndicated show. So when he starts talking, you better listen. This is one of the best podcasts about the world of finance.
Howard’s podcast is newsy, and touches on everything from the financial topics that matter today to special shows on occasions like Christmas or Halloween. Apart from the podcast, Howard also has a daily live stream of his show on his personal website.
Listen Money Matters Everyone has different tastes in podcasts (our own MakeUseOf staff has varied listening recommendations). If you prefer a more casual approach to talking about money, check out Andrew and Matt’s Listen Money Matters, where they yap about everything from investments to debts, liberally cussing and joking as they go along.
This one isn’t for someone seeking serious financial advice. Instead, think of it more like a discussion about money matters among people from the younger generation. The topics, the approach, and the general conclusions are ideas that will appeal to the youth, not someone who has their finances sorted and is looking at saving for retirement.
YouTube Stars Financial concepts often need a combination of visual and auditory cues to be thoroughly explained. Our YouTube picks will make sure you understand how to apply money tips in your life.
His And Her Money Videos Watching videos about financial advice from experts can be intimidating. They seem to have it all sorted out, and you feel a bit dumb for not knowing stuff. It helps to know that Talaat and Tai, a married couple, made their share of mistakes in the past and are now helping you avoid them.
The videos at His and Her Money never seem condescending or overly spoon-fed. These are two adults talking to you, as an adult, and making it seem like we’re all on a journey together to get control over our finances. Plus, their natural chemistry and banter helps in making the videos entertaining while being educational. These are the kind of videos that help you see money in a different way.
Money Talks News Money Talks has been syndicated by some of the top news channels for over 20 years, and there’s one reason for that: Stacy Johnson. The host of the popular money-matters show simplifies complex topics while presenting them in an energetic style that stops it from being boring.
Money Talks News covers explanations of complex financial concepts, quick tips and advice on handling your money, informational guides with helpful illustrations, and a host of other useful information. Updated almost daily, there’s plenty for you to watch here.
You Need A Budget One of our favorite financial apps, You Need A Budget (YNAB) helps you stick to a budget. Over the past year, the makers of the app have moved from a regular podcast to a YouTube channel where they discuss basic financial planning.
We’re cheating a bit here, as YNAB’s YouTube is a weekly, not a daily, update. But the advice is so good and rooted in the present that you shouldn’t be missing out on this. From hour-long talks on handling your credit cards to small five-minute segments on the need for a budget, YNAB will get you through the basics and teach you how to implement them, preferably with the app itself.
Follow Everywhere Some advisors are worthy of being followed everywhere: Twitter, Facebook, their blog, newsletter, YouTube channel, or whatever else they do. Since they don’t fit into any one category, here are our top financial experts who you should track.
Dave Ramsey One of the most respected financial gurus in the public space, Dave Ramsey has done it all: books, TV shows, university lectures, and everything else. Plus, Ramsey has multiple areas of expertise and plenty of years of experience.
In fact, Ramsey’s financial principles inspired EveryDollar, one of the coolest apps to start saving money and creating a budget. His ability to break things down into small steps makes all his advice actionable.
Ramit Sethi The author of I Will Teach You To Be Rich, Ramit Sethi has a humongous following across the web for his practical and detailed tips on money management. Sethi’s advice is nothing out of the ordinary. In fact, most of it is basic stuff. But his ability to demonstrate how to put it into action sets him apart.
Sethi has an active YouTube channel, is one of the must-follow Twitter accounts for financial insights, and his website is always being updated with new content. I highly recommend checking out his backlog of videos, where he shares his own life experiences to tell you how you can be better off than you are now.
Mr. Money Mustache Many of us dream of retiring at an early age. Mr. Money Mustache actually did it! He figured out how to manage his money so well that he semi-retired at 30 and lives a fulfilling life now. How did he do it? Find out by following him.
The Money Mustache website should be your first stop, beginning with this post. From there, follow his journey and then follow him on various social media to get a wholesome outlook on how to balance work and life to handle your finances.
Who Did We Miss? While we’ve covered several information sources here, it’s still not an exhaustive list. There are a lot of great personal finance resources out there where you can get daily tips on how to better manage your money.
We want to know where you go to get your daily fix of financial news or advice. Share your best sources of financial wisdom in the comments below!
Are Robos Fiduciaries When They Provide Financial Advice And Services For Fees?
Very few investors, individual or institutional, know there are two ethical standards for financial advisors and firms.
The higher ethical standard is known as "fiduciary." Financial advisors, who are registered investment advisors (RIAs) or investment advisor representatives (IARs), are held to this higher ethical standard. It requires advisors and firms to place the financial interests of their clients ahead of their personal interests (make more money).
The lower ethical standard is known as "suitability." Salesmen, for example stockbrokers, are held to this lower standard. They are supposed to make suitable recommendations based on their knowledge of the investors' circumstances and goals. However, this lower standard is subject to interpretation. For example, three salesmen could have access to the same investor information and make three totally different recommendations.
Wall Street prefers a vague ethical standard that is difficult to enforce.
Investors are better off with a clear ethical standard that is easy to enforce.
Securities and Exchange Commission
The SEC is questioning whether robos are financial fiduciaries.
This should be a relatively simple decision. The SEC is responsible for regulating financial service firms (RIAs) that provide advice and services for fees. Consider the following:
Based on SEC regulations, RIAs are classified as financial fiduciaries. It does not matter if the RIA is a traditional, brick and mortar firm or a robo that delivers advice and services over the Internet.
The Robo Exemption
Should robos be exempt from fiduciary standards?
Absolutely not! They invest client assets in exchange traded funds and other types of pooled investments. In this capacity a robo is acting as a virtual financial advisor; the ETF is the money manager.
Financial advisors, who may be RIAs or IARs, are fiduciaries. Therefore, robos are financial fiduciaries.
Department of Labor
The DOL also has some skin in the fiduciary game. It wants fiduciary status for all advisors who provide investment advice and services to 401(k) plans and IRAs. The DOL believes this requirement will protect American investors from unscrupulous business practices that jeopardize their chances for comfortable, secure retirements.
Robos are beginning to provide investment services for 401k plan assets. They also provide robo services for assets in IRAs.
Therefore, this DOL mandated ethical standard would apply to robos.
Computer Programs
Robos did not invent model portfolios. Most financial advisors have used model portfolios to manage their clients' assets for decades. In fact, the models of robos and advisors are strikingly similar -- based on age, risk tolerance, investment horizon, and return objective.
What is new is the sophistication of the computer models that run the robos' model portfolios. Computers are more efficient than humans.
Conflicts of Interest
Robos will have to act in their clients' best interests.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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