50 Shades of an Investment Plan

 

50 Shades of an Investment Plan?

I think we could all agree that 50 Shades of Grey is one of the hottest movies of the year so far!

But just how hot is this movie?
This movie has grossed more than $528 million worldwide.
Yes that is one hot movie!
50 Shades of Grey is the largest international opening movie of 2015. 
It is also the highest R-rated opening international movie ever.
So just how hot does this deal get for the young entrepreneur Christian Grey himself?
Well even after claims that actor Jamie Dornan was going to quit after this first movie, because his wife was uncomfortable with some of the explicit sex scenes.
Jamie Dornan has just recently signed a deal that will take him from being paid approximately $250,000 for this movie to a reportedly hot $7 million deal to star in the sequels.
Is this a good investment decision for Jamie Dornan and his wife?
This may seem like nothing compared to what some of the highest paid actors in Hollywood earn per movie with Johnny Depp earning $50 million for every movie or Leonardo DiCaprio who now earns $77 million for his movies.
With all that money to be earned in the movie industry is there an ideal script for managing finances and retirement when it comes to actors?
Even with the large amounts of money that can be paid to an actor per movie does this guarantee them a carefree retirement or are there drawbacks?
For actors it can often be a case of feast or famine which means they have to learn how to make the most of the money that they earn.
This can make it difficult for actors to manage their finances.  Due to the fact that work is not consistent and even though they may be paid very well for a role they may have to live off that for a long while before they get their next role.
One of the hardest things for an actor is when they finally do get that big break that can make them rich overnight they can also go broke overnight just as easily, because due to human nature when that big break that they have been waiting on come so does overspending and not enough saving.
All too often when actors are making large sums of money there are bad financial decisions being made at the same time which will hurt them in the long-term?  Bad decisions like investing too much into tax deferred accounts and then having to withdraw the money out early or simply spending too much and saving too little for the times when they are not working.

4 tips towards the perfect script for Financial Success;

      1.  Put aside at least 24 months of living expenses in cash.
      2.  Make sure you work with a Financial Advisor who will tie in the importance of Estate     Planning and Tax Advice into your overall plan.
      3.  Don’t just invest into tax deferred accounts; make sure you invest in taxable accounts that can be used without incurring penalties.  It is important that investments are maximized in working times and assets available when not working.
      4.  Anyone devoting their career to acting needs to know the importance of having a Financial Advisor as part of their team just like having your agent and manager.

 

 

 

 

Is it really worth the risk?

Is it really worth the risk?

Would you agree with me if I said everything in life worth having involves taking some kind of risk?

Everything we decide to go after in our lives has some level of risk involved in order to achieve what we want.
Taking risks of course can be scary, but the risk of doing nothing is worse.
The outcome is never certain but the rewards can be great.
Without taking risks we could miss out on so many opportunities and dreams.
Life is a series of calculated risks with no guaranteed outcome.
Some risks that are worth taking include;
The risk of failing
The risk of failing is one of the hardest risks of all for us to take.  Think about it for a moment when we don’t fail we succeed and when we do fail we succeed because we will have to find another way to do it in order to succeed.  Emotions are often what hold’s us back from taking the calculated risk in order to succeed.
The risk of making a mistake
To succeed in life we need to be able to make and admit our mistakes.  If we are not making mistakes we are not trying enough new things in our lives.
The risk of never being good enough
We will either be good enough or we will not.  But without taking the risk we will never find out and the risk of not knowing is greater than the risk of making a mistake.
The risk of love
To risk saying I love you and not to be loved back.  Of course it will hurt if we tell someone we love them and they don’t say it in return but it is better to take the risk and say I love you than wait and miss out on the opportunity of love altogether.

Parents are you back in the routine yet?

Parents are you back in the routine yet?

You know the long awaited routine of back to school.

Summer is fun that we cannot deny.
However after 3 long months of summer break I think parents, grandparents and kids alike are ready to get back to school.
I know that even though my kids love summer there is a part of them that also likes the comfort of being back in their school routine, as well as of course getting back to seeing their friends every day and getting back to their school sports.
What does back to school mean to us as Parents?
Well the first thing I think of is back to the crazy business of all the running around that comes with back to school and all of the other activities that my kids participate in after school.
But another thing that back to school represents is that our kids are another year closer to College.
In the same way that you are another year closer to having to fund you kids college.
As the Parent or Grandparent of children how are you planning to help them with their college expenses?
You need to be smart about the costs of putting yourselves at financial risk in doing so.
Do not forget the importance of creating a sound overall financial plan.
What does this mean and how do you go about doing that?

Brazil 2014 is not a Retirement Plan!

Brazil 2014 is not a Retirement Plan!

At last the wait is finally over.

It has been four long years!
We have made it!
The world cup is now under way in Brazil.
I don’t know about you but I having been looking forward to it since the end of Africa 2010.
Every four years I look forward to the the thrill of the anticipation, the competition and the excitement.
Starting with the opening ceremony, which this year featured Pitbull and Jennifer Lopez among others.
Then there is the game itself.
Will Messi live up to everyone’s expectations?
Who will take home the trophy this year?
Do you like many others think that it will be host country Brazil?
Or what do you think the chances are of Spain being this year’s winners?
What about the good old USA, how do you think they will fair this year?
Even their team coach, Jurgen Klinsmann maintains that we shouldn’t expect the USA to lift soccer’s top trophy.
Is Messi the greatest soccer player of all time?
This will certainly be his chance to see if he can be compared to several other players who have gone before him worthy of that title like Pele and Diego Maradona.
However the fact that these soccer players will be getting paid enormous amounts of dollars does not guarantee them a great retirement.
The fact is that retirement for most professional soccer players is far from comfortable.
Often due to a mix of immaturity, out of control spending and a lack of good financial planning makes the wealth of these soccer players extremely unstable.
I suspect that soccer players due to the stress and peer pressure off their positions and that for most of them retirement comes at a very early age may lead to financial downfall for some of these players.
One of the most obvious problems begins with extravagant spending which none of these players will be able to continue after their short careers end.
Another problem is bad investment choices most likely due to the lack of interest or knowledge of how to manage a multimillion dollar portfolio.
Bankruptcy is something that more than half of professional soccer players will face within five years of retiring.
However the saddest fact of all is that all too often all of these problems leads to the breakup of their relationships, the divorce rate is between sixty and eighty percent for these soccer players.
Unfortunately for these soccer professionals they are not prepared for their wealth and further more they never get the education that they need to be able to manage their wealth.

Make it an Extraordinary Year

 

I don’t about you. But 2013 was an amazing year for me. I am so blessed.

I am really looking forward to the year ahead.I know it is going to be an extraordinary year!

No just like you. I have not ended every year on such a high note or even looked forward to every upcoming New Year in this way. I like you have had my share of bad years. I have faced some major challenges in my life. Some things that I thought I would never be able to overcome. But if you knew me, you would know that I am a fighter. I am tough. And I am a very determined person. I am a real go getter. You would know that I love my job. And due to circumstances in my own life I am very passionate about helping others.You would know that I am not afraid of much!

Will Having a Financial Plan Benefit You?

 Could it be more vital for women to have a Financial Plan than a man?

Even though statistics show that women are less likely to actually have one.

Often women fall into the trap of using the men in their lives as their Financial Plan.

But women need to have their own financial plan.

When we take in to consideration that women live longer, typically earn 25 percent less than men and spend more time out of the workforce than men.

This can only lead to us needing our own financial plan and no longer rely on anyone else for our plan.

Women and long term financial planning.

Typically women tend to keep putting this of and are waiting too long to start their long term financial planning.  But it is something that needs to be planned sooner rather than later.  It is important to set goals like when you want to retire, how much you will need as an income when you retire, how much you will need for your travel plans and how much you want for your families.  The sooner you have these goals to aim for the more likely you are going to achieve them on the timeline that you want.

Being Rich does not mean you don’t need a plan.

Often the misconception is that when people earn lots of money they do not need to have a financial plan.  This could not be further from the truth because making lots of money does not automatically make someone rich, it does not ultimately determine your wealth; it is how much of that money that you are investing that determines your wealth.  Often what happens is that people who do earn a lot of money never see themselves as having financial concerns so they never seek advice with creating a financial plan.  But failing to invest for your future may hinder you from having a comfortable retirement.

The danger of relying on one spouse to take care of the financial planning.

Being reliant on one spouse within a marriage to take care of the finances can be dangerous, as statistics show that unfortunately almost as many as 50 percent of marriages end in divorce.  Even with the best divorce attorney, helping you get alimony and child support it is a fact that the standard of living for women can significantly drop.

Widowhood is another danger of having one spouse dealing with the finances, the average age of widowhood is 56 years old, which usually leads to women being left unprepared.  Due to that unpreparedness as many as 80 percent of widows will then live in poverty even though their husband was far from poor when he died.

  

The important steps to a good Financial Plan.

 Often asking the right questions and getting educated is all it takes to secure a financial future for yourself.  Questions like do I have enough life insurance to pay off my debt if something were to happen to me does my life insurance have any type of long term care or disability insurance within it if I were to need it in the future?  Will I have enough income to last me the rest of my life if I could no longer rely on my spouse’s pension.

Asking yourself these questions and sitting down with a professional is the start to knowing how secure your future really is, giving you the peace of mind that you deserve.

Love, Marriage and Money

 Even when we are truly in love, we still need to talk about money.

I know it is the last thing you want to talk about before you get married.

You can sort all that stuff out afterwards right?

No!

Think about it this way.

Have you ever cheated on your partner?

I mean with money.

Probably, I know I have.

You know the kind of cheating I am talking about.

The kind, when you buy a new outfit, you put it in the closet without mentioning it.

Or when you buy a new pair of shoes and you say you got them in the sale, when actually you paid top dollar for them. Maybe it’s not telling your partner how much you charged to your credit card when doing the Christmas shopping.

Did you know that money causes the most arguments and breakups in any marriage?

So before tying the knot be sure you are open and honest about finances.

Here are a few things that should be discussed beforehand.

Is There any Existing Debt?

Nowadays it is very common to leave college with debt, it is important to be honest about how much debt you are bringing to the marriage.  It has to be decided how the debt will be paid off and if you are going to pay it off jointly or separately.

Are there any Existing Investments?

This is obviously better than bringing debt to the marriage, but it is also something that needs to be discussed beforehand.  Will these investments now be held jointly, and if so how will this be done and how will you maximize these investments?

Don’t forget about insurance.

Life, health and home insurance.  All existing insurance needs to be taken into consideration possibly combining and reviewing, making sure that it is now in keeping with your new circumstances and that you have enough coverage as a couple.

What about Retirement.

Often this topic is best discussed with a Financial Advisor who can help you with the financial goals that you have as a couple, someone who can guide you to make the best decisions on how to invest and manage your money for your future retirement.

Estate Planning.

When entering into a marriage it is especially important that you do not neglect your Estate Planning, no matter how young you are.  If you already have some Estate Planning done you will have to have these documents updated to be aligned to your new situation.

Do I need a prenup?

Well a prenup probably doesn’t seem like the most romantic thing in the world, but it is a very important part of the planning.  As statistics show that a high percentage of marriages do end in divorce these days.  It is not just for the rich, it is for everyone.  It helps set the rules for situations like if one partner has more debt than the other or maybe if one partner is entering the marriage already owning a business.

Talk about it and be honest.

Money is a difficult conversation, but avoiding the discussion can lead to a lot of arguments down the road.  Don’t let small problems grow into unnecessary ones just because you felt uncomfortable about talking about your finances.  Seek advice from an expert to help you.

Are you planning to get married soon but haven’t yet spoken to a professional?  Don’t put it off any longer call my office today and schedule a free consultation.  Start your marriage of on the right foot.  239 288 0974. Karla White - Waterstone Financial