Aequus Newsletter Articles

Your Life Portfolio

“By ‘how much is enough?’ I mean the amount that will allow you to stop driving so hard professionally should you choose to do so. I mean the amount that will allow you to feel safe, the amount that will compensate for risking hard-won relationships, the amount that will affirm your feeling good, smart, successful, accomplished, in control.” Pamela York Klainer

How Personality Traits Affect Financial Planning

The ancient Greek expression “Know thyself” carries a lot of weight when it comes to investing. Indeed, an investor’s personality can speak volumes to their ability to spot opportunities and avoid risk. If more people truly “knew themselves” when it came to money over the last decade, it’s arguable we would not have seen many of the individual excesses and mistakes that marked the recent economic slowdown.

10 Money Steps to Take When Someone in the Family is Facing a Health Crisis

A June 2009 article in the American Journal of Medicine reported that medical bills are behind more than 60 percent of U.S. personal bankruptcies, adding that more than 75 percent of these bankrupt families had health insurance but still were overwhelmed by their medical debts. The article, based on research from Harvard Law School, Harvard Medical School and Ohio University, underscores how a single health crisis can financially destroy both individuals and families. It is information that underscores the need for adequate planning ahead of any health crisis, particularly when known risk factors exist in a family.

Rediscovering Our Values

In an article titled “The Value of Planning,” financial reporter and futurist Bob Veres wrote:
“The vast majority of people in our advanced, prosperous society have not taken the time to figure out what they really want out of the all-too-brief time they will spend on this planet. And because they don’t know their destination, you know they will never reach it. They are, in a very real sense, doomed unless acted on by a powerful outside force.”  Inside Information, July 2004

10 Ways to Help Your Kid Build a Lifetime Emergency Fund

One of the most effective financial tools you can give a child is an appreciation for an emergency fund and the advice on how to build it themselves. An emergency fund should contain 3-6 months worth of money to cover living expenses – its main focus should cover all loss of income, not just a car payment or a refrigerator repair. With parents losing jobs and college expenses continuing to grow, the younger you can get a person started, the better.

Families and Property Inheritance: A Top Ten List for Decision Making

Everyone seems to agree that family members need to talk about potential changes in health, inheritance, and estate planning issues before there is a crisis or someone is unable to communicate. But quite often, spouses, aging parents/in-laws, siblings, and adult children fail to initiate these important conversations. Communicating and advance planning can reduce feelings of guilt and misunderstandings. It can also lessen the potential for conflict that family members often experience when they are put in the position of making decisions for others.

The Power of Purpose

In Drive: The Surprising Truth About What Motivates Us, best selling author Daniel Pink presents (in a very engaging and understandable way) the latest research in human motivation. One section, “The Good Life,” is particularly enlightening regarding how we as individuals establish and pursue our life goals. Pink makes the point, and science confirms, that “satisfaction depends not merely on having goals, but on having the right goals.” 

Life & Learning

Lifelong learning is not only possible, it is essential to our quality of life as we age. The old adage “use it or lose it” is especially relevant to our ability to retain a sharp and inquisitive mind. For many years, scientists thought that the human brain simply deteriorated over time.  But new research from neuroscientists and psychologists reveal that the middle aged brain actually reorganizes itself, improves important functions, and helps us to adopt a more optimistic outlook on life.

The Federal Death Tax Takes A Holiday

In the waning days of 2009, Congress let the federal estate tax die for 2010 as planned by the Bush Administration back in 2001. That’s not expected to stay the case for long – many experts anticipate that Congress will re-apply exemption levels with retroactive legislation sometime this year to help tame rising deficits. But that’s no reason not to keep an eye on your state’s estate and inheritance tax policy.

A Thank You To Our Clients

“Twenty years from now you will be more disappointed by the things you didn’t do than by the ones you did. So throw off the bow lines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover.”  Mark Twain  
   
From time to time, we like to take a moment to reflect on our good fortune and acknowledge the people who have made a difference our lives.

The Open Books Bookstore Opens Doors to Literacy

Dubbed “the most beautiful bookstore in Chicago” by the press, Open Books is a nonprofit social venture committed to promote literacy in Chicago. The organization’s headquarters is now open for business in its new three-story 15,000 square foot headquarters in River North.

Mastering Cash Flow: The Key to Financial Success

The key to financial success is adopting a cash flow plan that will guide your financial decisions on a day-to-day basis. In addition, understanding and controlling how money flows in and out of your life will free you from financial stress and empower you to achieve your most important life goals. Nonetheless, traditional budgeting methods often lead to a sense of frustration and overwhelm.

The Balancing Act: Retirement vs. College Savings

Even as the economy begins its slow crawl back, college costs are continuing to rise—that means parents are continuing to fight a tough battle between funding college and funding their own retirements.

Why Referrals Matter

Referrals are the life’s blood of a financial planning business. According to investment firm Charles Schwab, a typical independent advisory firm gets over 88% of its new clients through referrals. Yet, some firms are reluctant to ask for referrals for a variety of reasons.

Retirement Reformation: Redefining Work

Our concept of retirement is undergoing a metamorphosis. Demographic, societal, and workplace trends have all converged to offer a stage of life that is much more fluid and flexible than what most of us previously imagined. In fact, retirement has become a matter of personal definition. 

10 Things You Can Do Immediately to Slash Debt and Spending

Any financial planning process begins with a change in financial behavior and expectations. The degree of change varies based on financial priorities, but in the end, it’s about adopting new habits and abandoning others.

Who Can Help You in an Emergency?

Here are some of the ways you can help emergency responders help you. We suggest you start by preparing a small laminated card that provides emergency names and phone numbers for each person in your household. Print it on bright, colored paper and keep it next to your driver’s license.

Who Does Your Investment Advisor Work For?

As the economy continues its climb out of recession, I’ve written previous columns about the importance of working with financial advisors for whom you are a client rather than a customer. To a fee-only financial planner, you are the client. Like an attorney or accountant, the planner has a fiduciary responsibility to put your interests first. To a stockbroker, essentially a salesperson who earns income by selling products, you are a customer.   

The Roots of Money Scripts

For many of us, managing our finances and building economic security is a nagging concern. We know we should be making greater strides in taking control of our money matters, but nothing changes. We become confused and discouraged about our inability to make positive change in our financial lives.

Testosterone May Affect Risk Aversion

Do gender and testosterone make a difference in financial risk aversion? New research from Northwestern University and the University of Chicago suggest they do. “In general, women are more risk averse than men when it comes to making important financial decisions, which in turn can affect their career choices,” said Paola Sapienza, associate professor at the Kellogg School of Management at Northwestern University.

The Cost of Living Large in the Real World

During a recent interview with a reporter, I mentioned the importance of living on what you earn. To me, this is a no-brainer. It’s the most basic of financial precepts and the foundation of financial health. Her response was both fascinating and frightening.

Ways to Save Money on Health Care in Troubled Times

Whether you buy your healthcare coverage through your employer or independently, you need to look at your coverage the same way cost-cutting entrepreneurs do. Buying coverage in the future won’t stop at finding the best price—what you pay increasingly will involve how well you personally manage your health.

It’s Summertime—Not a Bad Time for a Midyear Financial Checkup

The weather’s great, so staying inside with your finances probably doesn’t sound like a very entertaining option. But a midyear review of your tax situation, retirement and spending issues can be far more valuable than the rushed attempt most people make at the end of the year—or when it’s too late at tax time. Summer’s actually a good time to do this task because there’s still enough time to correct lapses in savings, spending or tax planning.

Paths to Personal Growth & Happiness

As we grow older, we have the opportunity to grow as individuals and to develop relationships that are more “grown-up.” Here is advice from the authors of three different books on ways, through our relationships, that we can contribute to our own personal growth and happiness.

Preserving the Family Vacation

As the economy continues its climb out of recession, many families might be thinking twice about what they spend on the annual summer vacation. But there are ways to preserve the tradition by being smart about spending. Read on for some helpful ideas.

How Does the Stimulus Plan Affect You?

The biggest benefit from the $787.2 billion federal stimulus package will hopefully be a noticeable improvement in the nation’s economy. But on an individual level, it’s wise to check if you might be eligible for benefits in health care, education, various tax credits and housing.

Why Financial Planners Matter

Why enlist the services of a financial planner when your holdings are down and you’re facing a host of financial problems? Because as dark as times may seem, you’re actually giving yourself a fresh start in building a stronger financial future.

Nurturing Resilience

We all encounter both expected and unexpected transitions in our personal and work lives. However, those who are resilient are better able to navigate change, bounce back from disappointments, and welcome new opportunities.

101 Ways to Cut Expenses

We often discuss ways to invest money for various goals like college funding, big-ticket purchases, and retirement. But before investors can tackle where to put the money, they need to tackle where to find the money. Proper budgeting and cost-cutting can help you free up funds for investment, emergency accounts, or debt-paydown. And today, we’ve revived our 101 ideas to help you stretch your dollars to the max.

An Aging Parent Strikes Back

On occasion, readers of Aequus News take issue with the unconventional wisdom dispensed on the pages of the newsletter. A case in point is an article which appeared in the November/December 2008 issue. It was entitled “How to Take Over an Aging Parent’s Finances.” Read one client’s candid rebuttal on the subject.

Taking Charge of Your Life

Many of us spend our lives trying to please others or pursuing goals that others have set for us. In contrast, the authors of Invest in Yourself, Marc Eisenson, Gerri Detweiler, and Nancy Castleman, advocate the self-designed life—the conscious choice to “invest your time and energy getting what you want and doing what you believe in—not wasting them on things you don’t really want, but think you should have.”

Helping Your Kids Recover After A Major Money Mistake

The average college graduate is $20,000 in debt, and today’s young adults are clearly exposed to more opportunities for self-directed financial disaster than ever before. Despite the current credit crunch, credit cards are still a common way most young people afford their new adult lifestyle, and rising costs on everything from rent to gasoline present deeper challenges.

Considering Retiring From Or Returning To Your Workplace?

Roughly 25 percent of the U.S. workforce is nearing retirement age, according to a survey by Hewitt Associates. This has important ramifications for the retirement many Americans will have in the future.

New Year’s Resolutions For A Financially Healthy 2009

According to Mental Health America, a 2006 study showed that parents are more stressed than all other demographic groups by finances, and females are more likely than men to feel stressed by finances. Money isn’t everyone’s number one worry, but if it’s yours, why not consider the following New Year’s resolutions to improve your financial life?

Guideposts For Life

In The Thinker’s Way, author John Chaffee describes the word “value” as “the general term we use to characterize anything that possesses intrinsic worth, that we prize, esteem, and regard highly based on clearly defined standards.” He continues, “Thus you may value your devoted pet, your favorite jacket, and a cherished friendship, each based on different standards that establish and define their worth to you.”

How to Take Over an Aging Parent’s Finances

Like many difficult situations with people we love, planning to take over an older relative’s finances is best done in happier times, when both sides are healthy and various options can be considered.  Unfortunately, events can sometimes intervene – death, illness or natural disasters can make an elder’s need for assistance a critical matter.

How To Take Over An Aging Parent’s Finances

Like many difficult situations with people we love, planning to take over an older relative’s finances is best done in happier times, when both sides are healthy and various options can be considered. Unfortunately, events can sometimes intervene – death, illness or natural disasters can make an elder’s need for assistance a critical matter.

Before the Holidays, Get Those Charitable Donations Lined Up

There’s a special sinking feeling as you approach Dec. 31 and realize you’ve done no tax planning whatsoever. That includes big issues like end-of-the-year investment decisions, and the smaller ones – like that stuff you no longer use piling up in the basement.

Before The Holidays, Get Those Charitable Donations Lined Up

There’s a special sinking feeling as you approach Dec. 31 and realize you’ve done no tax planning whatsoever. That includes big issues like end-of-the-year investment decisions, and the smaller ones – like that stuff you no longer use piling up in the basement.

Are You Happy?

In The How of Happiness, research psychologist and professor Sonja Lyubomirsky provides a comprehensive guide to understanding that nebulous and elusive state of being called “happiness.” Her pioneering research has revealed that a genetic set point accounts for 50 percent of our happiness while only 10 percent can be attributed to our life circumstances and situations.

Top Ten Money Moves For Today’s College Freshman

With average college tuition up 6.3 percent at private schools and up 6.6 percent at public schools this past school year, money management is a bigger issue than ever on college campuses. That’s why it’s good to send your freshman off to school with a 10-point plan on how to best manage their money:

Financial Well-Being Eludes Young Adults

More than two decades ago, financial planner and author Venita Van Caspel wrote: “Our educational system continues to send forth our young with so little information about financial matters that they are like time bombs about to destroy their own and their families’ economic futures. We equip them to earn good incomes and to live the good life, but we fail miserably as a nation to prepare them to know what to do with the money they earn.”

Financial Relationsips

Our financial relationships involve connections with others that affect our financial well-being and life satisfaction. Without a doubt, the complex circumstances and evolving dynamics of each relationship can have a profound influence (consciously and subconsciously) on the big and little decisions we make on a daily basis.