management | Online Savings Blog

Is a Financial Planner Worth It?
03.06.08 | Money | 3 Comments | by Tom Valenti

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I was thinking today about how much the Internet helps us make financial decisions.

We research products, connect with experts, read news, etc. Pretty much all my life I've leaned on the Internet to either learn more about something or to even open a new account.

I can't imagine what it was like before, when you actually had to deal with live humans to learn or transact.

I would think that the wealth of knowledge and options available online would make professional financial planners a dying breed, but the opposite seems to be true (if you believe job forecasts, that is).

I've always steered clear of planners, because the commissioned planners (in my opinion) are biased, and because the few non-commissioned planners I've found charge for a consultation, or I don't have enough money for them to want to bother with me.

I'm hesitant to pay for something I may already know. But I do wonder if I'm leaving something on the table by not using a good planner.

Anyone have any opinions?

Tom Valenti is a marketer and project manager who currently works for a financial institution in New Jersey. For more info, visit him at http://tomvalenti.com.
Money Saving Links: 2/29/08
02.29.08 | Savings Links | 0 Comments | by junger

Happy Leap Day! On to the links …

20 Money Hacks: Tips and Tricks to Improve Your Finances - Zen Habits

Improving your finances improves your happiness, in general, so I thought it would be important to share stuff that's worked for me.

I'm in the best financial shape in my life, despite quitting my job and my wife recently quitting hers too. A lot of that is thanks to you guys, the readers, but it's also thanks to frugality, to eliminating debt, to saving as much as I can. To these hacks.

Facing The Frustrating Realities With Which We Must Deal - No Credit Needed

As you move away from financial irresponsibility and towards financial stability, you will find yourself becoming aware of certain new realities. First and foremost, you will note that the vast majority of Americans live without much regard for their own financial futures. Supported by a massive government that believes in handouts and bailouts, many folks have forgotten the idea of personal responsibility. Living well beyond their actual means, most have succumb to the pressure to have more, get more, and use more.

Lessons I've Learned From Being Broke - Kiplinger.com

Being broke has taught me how to better manage my money so I can actually meet my financial goals. Sounds cliché, but it's been a blessing in disguise.

That's not to say poverty is a requirement for acquiring good money skills. Anyone can learn to be a good steward of what he or she has — whether plentiful or lean.
Money Management is Simple: Don't Listen to the Noise
12.28.07 | Money | 4 Comments | by junger

I like to read (and sometimes answer) the questions on LinkedIn (add me to your network) every so often, especially in the personal finance and Web development categories.

The other day, I ran into a great question with some not-so-great answers.

Money Management: They teach in school that best way to generate returns from capital is through proper money management. What is your money management method? How do you ensure that you are employing your savings profitably? What are the best ways to protect investments from market crash and along with saving taxes?

This question goes to the heart of managing your money.

How do you save? How do you ensure you're getting good returns on your money? How do you prepare yourself for highs and lows in the markets?

As is usually the case with LinkedIn questions, the people providing the answers are the ones hoping to make some money off of the question. There's nothing inherently wrong with that, but (as often happens) the answerers are providing poor information in hopes of making a buck.

Check out these answers.

From a Capital Market Professional: "I am afraid there is no direct answer. But there are mitigation possibilities. If you find the equity market has gone over board from medium / long term point of view, start moving moneys to fixed return investments (basically debts-deposits, etc)."

From a Manager Product Marketing: "Not having any investments takes away the sorrow of having to protect it. So I would say that proper money management is to spend it."

From the Owner of a Personal Wealth Management company: "Wealth Management - my thoughts though influenced by U.S. laws (eg. tax statues) are universal: [LINK TO WEBSITE]"

These aren't bad answers, per se, but none of them are truly helpful.

Money management isn't hard, and if you know the basics, you don't need to listen to the noise. Here's my answer to the question.

There are tried-and-true, easy ways to properly manage your money. You don't need to pay for someone to tell you these.

1) Spend less than you earn.
2) Pay yourself first.
3) Automate your payments and savings/retirement contributions.
4) Invest in index funds.
5) Diversify your investments — stock funds, bond funds and int'l funds.
6) Stick with it. Don't time the market.

On a side note, make sure you're getting the most from your checking/savings account. FDIC-insured online accounts often yield much higher interest rates than brick and mortars.

Most of these people are out there to make a buck off of you, but you don't have to be afraid of managing your own money. In fact, once you get the fundamentals down, you can even purchase investments that outperform the "professionals."

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