Money Matters

An open letter to recent college graduates.

It’s tempting for clients to want their fees to be the lowest possible. However, working with someone just because their fees undercut the competition may be shortsighted.

One of the biggest determinants of financial success is the ability to stick with a strategy through many different environments.

Investors tend to make drastic decisions when they are feeling scared, greedy, or impatient. Unfortunately, these impulsive moves rarely, if ever, work out. Emotional decisions have no place in the world of successful investing.

The KCP is often the result of social pressure from one’s community and circle of friends. It’s quite common for people to exhibit conformity bias, where they behave according to, and make decisions based on, what others around them deem acceptable.

Many congregants feel the costs to daven in shul are unwelcome or unnecessary. Their frustrations are valid. A frum lifestyle is expensive, and shelling out more money is a challenge for many.

This week I’ve decided to compile some popular rules of thumb to share with readers and offer my own thoughts on the relevance of each rule. Keep in mind that it’s OK if your personal situation doesn’t alight exactly with every rule.

These trusts are a wonderful way to benefit charity and achieve a family’s retirement and estate planning goals in a tax advantaged manner.

Financial planning is not only about the accumulation of wealth, it is also about the transmission of values to the next generation.

Unpleasant surprises that induce feelings of helplessness can also strike our personal finances. In fact, the likelihood of adverse financial events impacting our nest eggs is far higher than experiencing an earthquake.

I’m inspired by the people all over the world, Jews and non-Jews alike, who are donating time, money, supplies, and food, to help defend Israel.

Investors should remember that despite what is happening in the world, the markets and humankind have always prevailed.

Before delving into the more involved questions about life insurance, it’s worth reviewing what it is and why it is important.

The theme of living a Torah lifestyle became much more important to me and guides my decision-making process today.

The end of the secular year typically coincides with certain deadlines. It is also a great opportunity to set the stage for a financially successful new year.

It’s always worth reminding yourself that wealth is what you don’t see. Houses, cars, fancy clothes, and the like are all visible things on which people spend money. What’s actually in their bank account is not advertised to the public.

College is an investment: Don’t let any admissions officer, friend or family member sway you with less important factors like campus life, extracurricular activities, junior year abroad options, national rankings, how many alumni are Nobel laurates, or the university’s sports team.

Little did he know that he taught me much more about investing and retirement planning than the training program at a major Wall Street bank early in my career.

Sensitivity to taxes can also manifest itself in portfolio construction. Certain investments are more tax efficient than others.

If you are a few years from retirement or in retirement, inflation becomes a bigger concern. You may no longer have a paycheck, can’t take as much risk with your portfolio, and don’t necessarily have the luxury of waiting out a long inflationary cycle.

One of my most interesting observations is that the folks who accumulated the most assets were often not the ones with the highest incomes.

High-interest debt is a cancer to personal finance. It can quickly grow out of control and become insurmountable. To dig yourself out of your financial hole and begin building wealth, you need to get rid of your loans.

For any reader who made it through this article, congratulations! You now know more about financial planning than the overwhelming majority of your friends and fellow countrymen!

I share this dose of reality: You don’t get a pass on math. If you do not have a high household income, you can’t live an extravagant lifestyle. You will need to make compromises on where and how you live.

It’s important to note that while you are allowed to collect Social Security and unemployment benefits simultaneously, depending on where you live, your unemployment benefits might be reduced.

Despite what may seem like my impassioned defense of Los Angeles, I have only been there as a visitor. I can appreciate a great dinner with friends at Pat’s on Pico... However, I can’t pretend to fully understand the daily struggles of the average frum family there.

The social pressures that come with living in a tight knit community or having a close group of friends may be some of the most difficult money challenges to overcome.

None of these strategies are easy, but they may all be effective when taken seriously.

Start-up companies were the bank’s major clients, and they tend to borrow a lot of money. When rates were low, business was easier. When rates climbed, it became much more expensive to run their business and things gradually became more challenging for them.

When I discuss college planning strategies with clients, I typically focus on how to afford these steep tuition costs.