Blog – Page 5

November 22, 2013 by Michael Gauthier ·

How to Avoid Taking Risks that Might Be Killing Your Returns

Risk is an important factor to consider any time you choose investments. There are a number of risks when it comes to investing, and learning how you can best mitigate those risks now will mean higher returns in the future.

Below are three concepts you’ll need to remember as you’re making investment decisions. Internalize this information, it will serve you and your portfolio well.

1. Understand that diversification is critical.

You’ve heard it said that you should diversify your portfolio. This is one of the easiest concepts to grasp and it is also one of the most important.

Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land. – Ecclesiastes 11:2 NIV

This timeless investing principle has one critical purpose: to eliminate risk. Keeping a portfolio containing a variety of investments smooths out the rough patches in the stock market. It lowers your volatility.
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November 4, 2013 by Michael Gauthier ·

5 Critical Financial Steps Before You Contribute to Your 401(k)

Pensions are a thing of the past. Social security is questionable at best. Why would a Certified Financial Planner™ tell you to wait on investing in a 401(k)?

There’s a simple answer . . . .

Many Americans are trying to do everything at once, and in doing so, they are spreading themselves to thin and not taking care of their immediate financial needs.

Build a Solid Foundation First

Jesus once told a story about a wise man who built his house on the rock:

Therefore everyone who hears these words of mine and puts them into practice is like a wise man who built his house on the rock. The rain came down, the streams rose, and the winds blew and beat against that house; yet it did not fall, because it had its foundation on the rock. But everyone who hears these words of mine and does not put them into practice is like a foolish man who built his house on sand. The rain came down, the streams rose, and the winds blew and beat against that house, and it fell with a great crash. – Matthew 7:24-27 NIV

The foundation is a critical component to any structure because it helps the structure stand the test of time. Though many storms may come, the structure stands firm because it is firmly planted in place.
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November 4, 2013 by Michael Gauthier ·

How Much Money Should You Have in Your Emergency Fund?

Unfortunately, emergencies happen. It’s a fact of life. However, the good news is that we can prepare emergencies – and how important it is to do so!

Everyone should have a certain amount of money in their emergency fund; how much money, is the question that will be answered here.

As you’re working through the Foundation Phase in your financial plan, you’ll begin with $1,000 in cash as your short-term emergency fund. This is a great starting point, and it will help you handle all of those small emergencies you might encounter as you’re putting in place appropriate insurance policies, creating your estate plan, and paying off all your consumer debt.

Once you’ve accomplished all of these goals, it’s time to create an additional emergency fund that you will fill with three to six months of living expenses. What amount should you choose? Let’s take a look at the Four-Question Emergency Fund Calculator.
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November 4, 2013 by Michael Gauthier ·

How to Spend Your Paychecks Wisely – Where Should Your Money Go?

When a paycheck makes its way into your hand, it’s an exciting time. But then, the inevitable question hits: “How should I spend this money?”

It’s important to prioritize the spending of your income to ensure long-term financial success. Not having a plan is not an option for those who want to pay down debt, build an emergency fund, and build wealth.

In working with hundreds of families over the last decade, one common trait that the most financially successful families had was that they understood and implemented a sound spending plan. Spending is one side of the equation that really does matter – just like the income side.

Where Your Money Should Go

Here are some easy-to-follow prioritized steps for spending your paychecks wisely . . . .
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1. Remember that the longer you wait, the larger your payments.

1. Understand that diversification is critical.

Build a Solid Foundation First

Where Your Money Should Go

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