Money Matters

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.

Freeing up cash from unnecessary expenses can give you the flexibility to spend more on areas that are more meaningful for you, like family, vacation, or making necessary home improvements.

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

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.

You will hear all about the investments on which your friends made a windfall but will never hear about the duds that cost them a fortune.

Annuities have a bad reputation, and rightfully so. In my opinion, they are a jungle of high fees, moving parts, and lack of transparency. In short, they are not usually the best choice.

Downsizing is a great time for retirees to go through their own things and dispose of items that they no longer need. It’s also a great opportunity to gift more sentimental items to children, grandchildren, or charity.

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.

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.

For folks who are deep in debt, getting to a $1,000 emergency fund is a big accomplishment.

Besides mortgage and insurance payments, there is a myriad of costs associated with maintaining a home. It’s important to factor in these annual upkeep costs to ensure you are purchasing a home that you can actually afford.

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.

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.

Any college-bound person should fill out the FAFSA a year prior to matriculation. Remember, your family doesn’t need to have a low income to qualify for assistance.

It’s important to remember that this is not the first time that the world has been on edge.

The urban legend is that in honor of Haym Salomon's pivotal contributions the 13 stars, representing the colonies, on the back of the dollar bill were arranged in the shape of the Star of David.

While sacrifices need to be made to live a frum lifestyle, NO family should be expected to accumulate credit card debt to send their kids to yeshiva. It's the yeshiva’s responsibility to do more to help parents in this scenario!

To get you started, below I share some common discussion points that come up frequently in my practice when strategizing with folks who just sold their primary residence and are also approaching retirement.

Yes, finances are a very important consideration when dating. In fact, I would rank it among the most important criteria.

I am also thankful that we have a well-established system for handling bankruptcy just in case an investor overextends themselves on any speculative investments. Most people deserve a second chance after they learn from their mistakes.

Technically, stocks have unlimited upside. That’s why they may be the best vehicle for long-term investors who need their money to outpace inflation over that long period.

I don’t oppose lavish vacations. In fact, as long as someone is living within their means, saving for their future, and giving to tzedakah, they should be able to go on the most extravagant and over the top vacation that they want.

When I meet with affluent families, I endeavor to frame money as a tool and not a scorecard. Communicating this viewpoint is often even more impactful than the investment recommendations or tax mitigation strategies I implement on their behalf.

When deciding where to live, there may be a tradeoff between the percentage of your income that goes towards housing costs and the number of options for frum amenities which are more plentiful in high cost of living communities.

As I say every year, it’s important to keep in mind that these predictions are nothing more than educated guesses, wishful thinking, and marketing.

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!

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.

Attempting to time your home purchase with the optimal market conditions is like trying to time when to invest in the stock market. In both situations, you will most likely not be successful.

You may be surprised how many companies would be open to having the right candidate work remotely regardless of their location.

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.