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Tag: financial advice

3 Financial New Year’s Resolutions for Lawyers

The new year is finally upon us. It’s a time to reflect on past successes and mistakes and make commitments toward change into the new year.

While some people focus on health or weight loss, personal relationships, or educational goals, many lawyers turn their focus towards their financial goals during this time.

If you’re an attorney who has been thinking about employing some financial changes in 2022, here are three financial resolutions or goals that industry experts recommend for legal counselors.  

Create a Financial Plan 

When it comes to finances, the old adage “If you don’t have a plan, you plan to fail,” is unfortunately often true. Lawyers need to have plans in place for how they will deal with their money both now and far into the future. Even if you already have short- and long-term financial plans, now is an excellent time to revisit them and ensure they still serve your goals and needs.  

You may want to begin with investing the time to assess your entire financial roadmap. Take an honest look at your: 

  • Debts 
  • Assets 
  • Monthly spending 
  • Income to debt ratio 

You should also reflect on any financial mistakes you made last year. Certainly, don’t beat yourself up about the instances, but rather acknowledge how or why they occurred. Then, treat your mistakes as a learning experience so that you don’t repeat them. Once you can look at the entirety of your financial roadmap, you may want to pick one or two things to improve upon in 2022. For example: 

  • Save 10 to 15 percent of your gross income if you don’t already do so. Automated savings is best, and it doesn’t matter if you save for retirement, emergencies, or even a vacation. The key is taking money off the top of your earnings and saving it. 
  • Create healthy financial habits. Listen to financial podcasts that you can learn from or even read books on relevant topics to your economic well-being. Take classes about finances. Consider committing to one no-spend weekend per month. Instead of eating out and being entertained, cook meals at home and play games or watch movies.  

Prepare for Major Life Events  

You may not be planning any major life events in 2022 or anytime soon afterward. However, as we all know, life has a way of throwing curveballs that we are financially unprepared for, such as changes within family dynamics or transitions through careers, including several other life events that may demand more from you financially than you are prepared to expend. By remaining ready for these types of changes, you can stay ahead of the game. A major life event won’t have to send you into financial ruin or into a panic about what you will do next if you are prepared.  

On the other hand, if you know that a significant life event is approaching, perhaps you are planning a marriage or relocating to another city, you should already be diligent in making sure you have a financial plan to address these changes. On a side note, when these types of changes occur, don’t forget to update your long-term financial tools. For instance, if you and your spouse divorce, you may want to remove them as a beneficiary to your life insurance policies. If you had another grandchild added to the family, you might want to add them as a beneficiary or as an heir in your will. 

Speak with a Financial Advisement Team 

Finally, speak with a financial advisement team. You have nothing to lose by reaching out for financial help. Consider it an investment into your and your family’s future. Financial advisement professionals know how to look at the big picture, along with the small details of your financial life, to craft a plan that will give you peace of mind and help you reach your financial goals in 2022 and for many years into the future. Not only can they help you craft realistic goals and plans, but they can also advise you as to the best way to put your money to work for you. If you’re working hard to create and keep financial goals and resolutions, your money should be working hard for you too.  

It may be unrealistic for a lawyer to create and keep all of these resolutions in 2022 and beyond. However, even refining one and making measurable improvements can go a long way to securing a better economic future for attorneys, their firms, and their families. Attorneys who have questions or need help when it comes to working on these or other financial New Year’s resolutions should reach out to a wealth management firm or financial advisement team who can assist them in defining, working towards, and achieving their goals. It’s never too late to get the financial advice you need. 

Mark Candler and Dave Owens of Maia Wealth are go-to wealth advisers for lawyers and law firms in Colorado. Specializing in debt reduction, investment management, retirement efficiency, and legacy planning, Mark Candler and Dave Owens are trusted professionals for attorney-focused wealth management strategies in the Denver metro area.

Do you need a financial advisor?

Asian,business,adviser,meeting,to,analyze,and,discuss,the,situation

Navigating financial matters can be challenging. Your financial goals and priorities can shift over your lifetime.

Friends and family, even bloggers, can offer advice, but is it the experienced financial advice you need at this time and place in life? That’s when you might consider consulting with a professional.

Retaining a financial advisor provides you with the necessary experience to handle this critical area of your life.

Ask yourself the following five questions to help you determine the correct answer for you. 

What’s Your Financial Plan?  

We’ve all heard the adage that if you don’t have a plan, you’ll never reach your goals. However, if you don’t have a plan, no matter your stage of life, you probably want to rethink that. Your plan should be based on both your short and long-term goals. Have you assessed your current financial situation and what you’ll need to do financially to pay off debt, save for an education or retirement? Considering these needs and more is critical in developing and implementing a financial plan. A financial advisor is experienced in helping individuals create these plans and offers advice to assist you in crystallizing your thoughts on how to work toward your overall financial goals over your lifetime.   

How Complicated is Your Current Financial Situation? 

The complexity of your financial situation is essential to determining your level of necessary advice. For example, if you’re single and just starting your career, a simple financial plan might suffice. However, as you face life changes such as a marriage, divorce, etc., a financial advisor brings a wealth of knowledge and experience. They can help you strategize your priorities, goals, and investment decisions. Advisors can also help you put together a financial plan for the unexpected, such as an inheritance, the death of a family member, or a job loss.  

Have You Identified Your Short and Long-Term Goals? 

It’s critical to know your goals when putting together a financial plan. For example, your short-term goals might include saving for a beach vacation. Longer-term goals include accumulating capital to purchase a home, saving for a child’s education, and investing for your retirement. Do you have a goal of leaving a legacy to your children or a nonprofit? And, what are the best ways to do these simultaneously? A financial advisor can help you develop a plan, determine milestones, and make adjustments as your scenario changes.  

When and How Do You Want to Retire? 

I frequently say that you should think about what to retire to, in addition to what you plan to retire on. Determining your retirement plan could benefit from the help of a professional advisor. Understanding when you’d like to retire, as well as what you’d like to do in retirement, are important considerations when determining how much you’ll need in your retirement account to fund it. Your financial advisor will consider your income, savings, and investments while factoring in the effect of inflation on your funds to develop an investment plan to help you work toward your goals.  

How Much Risk Can You Tolerate? 

If you’re considering entering the world of investments, you need to determine your risk tolerance. If you’re younger, your risk tolerance will probably be higher than if you’re closer to retirement. What’s your level of knowledge or experience in investments? If it’s low, financial advisors can help you navigate the many options and investment strategies to fit your financial goals.  

If, after asking yourself the above five questions, you feel that you may need some professional advice, talk with friends and family, and do some online research to find a financial advisor with whom you feel comfortable. When you meet with them, they will want to learn about your goals and personal and financial information so they can put together a personalized financial plan for you. A professional advisor helps take the “guesswork” out of your financial planning so that you can focus on your life’s priorities and goals.  

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.

Steve Booren Photo Steve Booren founded Prosperion Financial Advisors in 1996. Since then, he has grown the practice to one of the top 20 largest financial advisory firms in the Denver area. Steve began his investment career in 1978 with EF Hutton. After nearly 20 years with the investment company, he left the corporate world to launch his own financial advisory firm. Backed by LPL Financial, one of the nation’s leading independent broker-dealers, Steve pursued his mission to provide clients with independent, objective investment advice. Utilizing his 40+ years of investment experience, Steve authored the book, Intelligent Investing: Your Guide to a Growing Retirement Income, in 2019, and was named as a 2021 top advisor by both Forbes and Baron’s.

Tips for getting out of credit card debt

Credit cards are a way of life for Americans in general — and Coloradans in particular. According to one recent study, Colorado residents have the second highest median credit card debt in the country, behind only Alaska. 

But while Coloradans may have slightly more credit card debt than the average American, it’s only a difference of degree. A recent study from Inside 1031 found that over half of all Americans (55%) carry a credit card balance from month to month, and that since the beginning of the pandemic in March 2020, 44% of Americans have taken on more credit card debt. 

Worse yet, a lot of these debtors are carrying this high interest debt for years or even decades. According to the survey, 40% of credit card debtors haven’t been debt-free since before 2018 — and 15% say they’ve been carrying debt since before 2006. That kind of long-term indebtedness is a tightrope act; more than half of American credit card debtors (57%) have missed at least one credit card payment, with 31% missing a payment in 2021. From there, it’s a short distance to default, bankruptcy, divorce, or even selling your home for cash to pay off debts. 

So how do you get out of credit card debt? It’s not as hard as it may sound, but it takes honesty, discipline, and a good plan. Here are some tips to get out from under your credit card debt, no matter how much it is. 

Figure out where you stand 

Before you can tackle your credit card debt, you have to figure out how much debt you have.  

 Put together a list of all your credit cards, the balance you’re carrying on each card, and the annual percentage rate (APR) on each card. It can also be helpful to organize your list from highest APR to lowest APR, so you know which debts are charging you more interest. 

Total up all your balances: This is your target number. 

Analyze your spending 

Next, you want to figure out where all your money is going. 

Look over several months of your financial statements to get an idea of your expenses. You’ll want to split them into two groups: necessary expenses and unnecessary ones. 

In the first group, you’ll put expenses such as rent, groceries, utilities, and debt payments, including student loans. These are vital, non-negotiable costs, but some, such as debt payments and student loans, can be consolidated. 

In the second group, you should include things you can live without — unused gym memberships, entertainment subscription services, meal deliveries, etc. You’ll want to eliminate as many of these as you can. Start with expenses that you don’t use or don’t provide great value. Don’t overlook small, recurring charges, especially ones that are automatically billed. These can add up to a lot of savings if you cut enough of them. 

Try to be as objective here as possible; every dollar you cut from your budget now is a dollar you can allocate toward paying down your credit card debt. 

Make a budget — and stick to it 

Once you’ve figured out your income and your expenses, it’s time to put together a budget. A budget will formalize all your expenditures and protect you from extraneous spending. 

Be strict with yourself, but be realistic — build in a little wiggle room for small unforeseen expenses and the occasional impulse buy. You want to write a budget that you can stick to long-term, not a punitive one you’ll burn out on after a month. 

As you work on a budget, also explore ways to increase your income. The more money you can bring in, the more you can throw at your debts. This could include a part-time job or even using apps to make money. 

Choose a debt reduction strategy 

Experts recommend these three strategies to systematically pay down your debt: the snowball method, the avalanche method, and the blizzard method. 

The snowball method was popularized by Dave Ramsey and calls for you to pay off your smallest debt first and then proceed to the next-smallest, and so on, until you’ve paid off all your debt. 

A big advantage of this approach is the psychological satisfaction you get from paying off a debt completely. Once you taste that feeling, it’ll serve to motivate you even more. 

The avalanche method calls for you to pay off the balances with the highest interest rates first. While you’re concentrating on your high-interest debts, you’ll make minimum payments on the rest of your debts. 

Once you’ve eliminated your debt with the highest APR, you’ll allocate that same amount of money to pay off the debt with the second-highest APR, and so on.   

The big advantage to this is that it’ll save you the most money in the long run, since you’re tackling the most rapidly growing debts first. 

 The blizzard method is a hybrid of the avalanche and snowball methods. Using the blizzard method, you’ll first pay off your smallest debt and then move on to your debt with the highest APR.  

The advantage of this approach is that you get to have the quick win of completely wiping your smallest debt off the slate before tackling your most expensive debt.  

Consider a balance transfer 

If you’re paying off several cards, you may want to consider transferring all your balances onto a single balance transfer card. Many balance transfer cards come with a low or even zero interest rate for an introductory period, so not only is it more convenient than paying off several separate accounts, you’ll also save money.