Blog – Page 4

February 12, 2014 by Kevin Mercadante ·

6 Ways to Break the Cycle of Debt in Your Life

In Phase I: The Foundation Phase, Step 4, we recommend that you work to Pay Off All Consumer Debt. That is a critical step in building the foundation of your financial plan.

But exactly how do you go about that if debt seems to have gotten the upper hand on you? Unlike the old Nike commercials, you can’t Just Do It when it comes to debt. Debt is usually caused by getting caught in a cycle of debt, and before you can eliminate it, you first need to break that cycle.

Here’s a blueprint to make that happen.
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January 18, 2014 by Michael Gauthier ·

The 10/10/80 Myth: How to Give and Invest With Intention

What’s popular isn’t always right.

Chances are, if you’ve studied personal finance for any length of time, you’ve come across the 10/10/80 budget allocation method. But is it the best for you?

The 10/10/80 method teaches that people should give 10% of their income, save or invest another 10%, and spend the rest – 80%. It is often advertised as a universally-viable method of handling your finances.

And the thing is, it sounds good, doesn’t it? That means it must be, right?

Think again.

While the 10/10/80 method correctly splits personal finance into three major categories (giving, saving, and spending), it inappropriately assumes that people should only give 10% of their income. Similarly, it assumes people should only save or invest 10% – as well as that they should start saving up to 10% right away.
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January 18, 2014 by Kevin Mercadante ·

How to Build Your Basic Grubstake

Financial advisers and bloggers talk about the importance of having an emergency fund and investing money. But what if you have no money? That’s actually the situation with many millions of households across America. In fact, a study conducted in 2011 found that nearly two-thirds of US households have less than $1,000 in liquid savings.

Are you one of them?

Don’t fret about it – do something about it! That something is building your basic grubstake – that money that will enable you to both build an emergency fund in the Foundation Phase and create a budding investment portfolio in the Accumulating Wealth Phase.

There are a whole lot of reasons why so many people have so little savings. We can hash out the details, but the better approach is to go forward from where we are.

There are two basic ways to begin building savings: cutting living costs and generating new income sources. Ideally, you’ll use a combination both, that way neither will be too painful.
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January 6, 2014 by Michael Gauthier ·

Stewardship: What is it and Why is it Important?

Stewardship. You’ve heard the word in church, but do you really know what it means? Let’s take a look at this vitally important concept and how to apply it in your life.

Stewardship Defined

The dictionary defines stewardship as:

1. the position and duties of a steward, a person who acts as the surrogate of another or others, especially by managing property, financial affairs, an estate, etc.

2. the responsible overseeing and protection of something considered worth caring for and preserving.

As a Certified Financial Planner™, I have a fiduciary responsibility to do whatever is in the best interest of my clients. You could say that I’m a “steward” of funds they’ve trusted me with – someone who helps them manage their financial affairs.

In a similar way, humanity is to manage God’s resources in a way that glorifies God. It’s not our money, it’s God’s. Therefore, we are all stewards of the wealth that God has entrusted to us.
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November 24, 2013 by Michael Gauthier ·

How to Stack Term Life Insurance Policies for Maximum Benefit

Life insurance is a foundational part of your family’s financial security. Should you or your spouse pass away, the income of your household could drop and cause a hardship on the surviving spouse and children. That’s why life insurance is a must, but with so many different options out there, how do you know which policies are right for you and how to manage them? Let’s take a look at the options.

Term Life Insurance Wins

Whole life insurance policies are obscenely expensive, and too many insurance agents recommend these policies because of the high commissions they’ll earn on the sale. Insurance shouldn’t be considered an investment, and that’s how these policies are often sold.

On the other hand, level-premium term life insurance policies cost much less and allow you to invest your savings – if that’s the best choice for your savings – instead of having the insurance company do it for you.

Term life insurance wins.
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Stewardship Defined

Term Life Insurance Wins

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