To Extend or Not to Extend?

The Consulate Journal

To Extend or Not to Extend?

It seems every year most people want to have their taxes filed by April 15th, and nobody wants to file an automatic, no questions asked extension till October 15th. It seems to us as many feel they are doing something wrong if they do not file by April 15th. Many believe if you extend your…

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Investment Risk Management

It is one thing to understand the universe of investing, but it is another thing to know how to work with it. The universe of investing tells us that any investment that yields more than the safe rate of return comes with risk. Risk can be defined in many ways, but for this article, we will identify…

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Working Beyond the Age of 70

There are many benefits to working beyond the age of 70, the greatest of which is that those who work later in life—and enjoy what they do—often experience good health. If, however, a person does not enjoy the work that they do, or simply does not wish to work past 70, then a path to…

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Riding Out the Market by Understanding Your Stocks

If you automatically calculate how much money you “lose” when the stock market goes down, then you may require a psychological reset if you plan to remain invested in the market. Let’s assume that you bought a house for $300,000 on January 15. On July 1, a man who you’ve never met before approaches you…

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Is It the Chicken or the Egg?

Which came first, the chicken or the egg? This age-old question can be adapted to many questions on origin, including financial planning. Financial planning’s “chicken and egg” question is: Is it about saving or spending less that brings forth financial accumulation? The answer is spending. You cannot save unless you choose to spend less. A…

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Home Equity Credit Line: An Invaluable Tool

For many years now, I have been promoting one of the greatest and most invaluable (but underappreciated) financial planning tools—the home equity credit line (HECL). An HECL is an agreed-upon balance that you can borrow from at your own choosing on a portion of your home’s equity. If you borrow against the credit line, then you…

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Understanding Stocks

At the time this article was written, the U.S. stock market had just lost 12 percent in the preceding 2.5 months. This type of market decline causes a serious amount of angst and worry among stock investors. Watching their account balances deteriorate and the subsequent sense of losing a significant amount of money is quite…

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Financial Planning for the Unexpected Accident

A broken sternum. It turns out that there is a significant amount of financial planning that results from breaking your sternum. One week after my wedding (and the day before I was to leave for my honeymoon), my mother called to tell me that my grandmother (“Nanaw”) was at the hospital. Nanaw had tripped and…

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The Higher Purpose of Money

The bee seems like a simple insect, but without its ability to pollinate plants, we would most likely starve. Water seems simple enough, but it is the source of life to all living organisms. Air is nothing more than a mixture of gases, but without it, we would all die. Money also has a higher…

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