Before You Pay for Financial Advice, Read This Guide via The NY Times

Before You Pay for Financial Advice, Read This Guide via The NY Times

Earlier this year our firm was featured in The New York Times in an article about fees and the fiduciary rule. Our thoughts in that article were cited this week in another NY Times article about what consumers need to know before paying for financial advice. Generally I thought the piece was helpful and accurate. I will say that consumers need to be chary of hiring a robo-adviser, which is something the article points out as an option to investors. Investing is best done in the context of a financial plan, and a robo-adviser simply cannot give the kind of holistic and adaptable advice that is often necessary for financial success (e.g. When was the last time a robo-adviser monitored a portfolio with a keen eye so that an appropriate amount was converted to a Roth IRA?). Additionally, the article cites that one can get a financial plan in New York for $1,200. Perhaps this is true, but I hardly know a competent financial planner who would do a financial plan for $1,200. Financial planning fees often vary by complexity, and a better estimate would be a range beginning with $2,500 for less complex plans and $5,000 and up for more complex advice. Other than these minor points, I thought the article pointed consumers in the right direction, and I appreciated its focus on the need for sound fiduciary advice....
Monday Quick Tip: How to Provide Housing for Aging Parents with a Family Opportunity Mortgage

Monday Quick Tip: How to Provide Housing for Aging Parents with a Family Opportunity Mortgage

Time for another Monday Quick Tip. Did you know you can buy a home for aging parents and avoid having to classify it as an investment property or second home? You can. Sometimes referred to as the Family Opportunity Mortgage, this type of loan allows you to get the lower interest rates associated with an owner occupied home, avoid the distance requirements that lenders require for a second home, and also avoid the high down payment requirements that come along with an investment property. What is more, as a child, you do not have to occupy the home with your parents (you can thank me later!). Parents also do not have to be on the loan, something which can come in handy if one or more of the aging parents do not have good credit. Want to learn more about how this fits into your overall financial plan, reach out to Dunston Financial Group...
Is It Time for a Disability Insurance Checkup?

Is It Time for a Disability Insurance Checkup?

Many people own life insurance but, at our firm, we see fewer people who own disability insurance. Why might one need disability insurance? Often one’s biggest asset is one’s ability to earn an income. Calculate the present value of a future income stream, and the resulting value is usually pretty large. Disability insurance is designed to replace some of this income in the event of a short-term or long-term disability. And, contrary to what one might think, a disability need not be the result of some catastrophic event; one might not be able to work due to a skiing accident, running injury, or some other unexpected event that arises from an activity one enjoys. According to the Council for Disability Awareness, “Musculoskeletal system and connective tissue disorders remain the leading cause of new and ongoing disability claims….” As we all know, however, buying insurance often feels like gambling. What are the odds one might need to file a claim? Listen to some insurance companies and they’ll scare you into buying disability insurance with inaccurate statistics. This helpful article by Ron Lieber over at The New York Times points out some of the fallacious reasoning behind such claims, and it goes on to point out that the odds of a long-term disability that will keep one out of work for more than 90 days are around 30%. These odds, he goes on to explain, could be even lower depending on one’s occupation. If you want to know your odds, here’s a helpful calculator that will take into account your own occupation and circumstances. For short-term disabilities, a good cash reserve can help pay immediate expenses....
Client Success Story: Senior Executive Gets Peace of Mind

Client Success Story: Senior Executive Gets Peace of Mind

One of our clients is a C-level executive for a large international company. He came to our firm with a complex set of needs ranging from restricted stock planning, real estate investment needs, concerns about his investment portfolio, and worries about his overall risk management plan. His primary goals were to build wealth and to protect it. After analyzing his financial situation in great detail, we were able to help him devise a risk management plan that gave him significantly better insurance coverage for his real estate portfolio, and we also rescued him from some very poor whole life insurance products. We also helped him devise a much more robust life insurance, property & casualty insurance, and disability income insurance strategy. When we first sat down, his group disability income insurance was no where near sufficient to protect his family in the event of a long-term disability. After working with his HR department, we were able to build an executive-level supplemental disability insurance strategy that augmented his disability coverage from about 60% of his pay to around 80% of his pay. For someone at his income level, this was a critical risk that needed to be ameliorated. He also completed the financial planning process with an investment strategy, a clear retirement plan, and some advice on what to do with his restricted stock. Most importantly, our client had peace of mind that his family would be taken care of financially in the event something were to happen to him. Every client has different goals, but this was a clear example of a client who was able to greatly benefit from...
Dunston Financial Group Featured in MagnifyMoney.com – 7 Money Rules Freelancers Should Live By

Dunston Financial Group Featured in MagnifyMoney.com – 7 Money Rules Freelancers Should Live By

Dunston Financial Group was recently featured in a short article over at magnifymoney.com. The article is about cash flow management strategies for freelancers and people who are self-employed. The article offers up the following 7 tips: Base your budget on your lowest grossing month Set your lifestyle now Anticipate large expenditures Always plan ahead for taxes Have multiple income streams Save at least a year’s worth of expenses Make sure your money is working for you You can read the entire piece over at...