Would you hire a professional advisor based on his or her social media profile? While examining the tables and data in the chapter titled “Time, Energy, and Money” in The Millionaire Next Door, I reread the section titled “Who are your suppliers?” It reads in part: How did you hire your household’s financial advisor? Did you list the position in the help-wanted section of your local newspaper? Did you evaluate the stacks of resumes your …
A recent article in The Boston Globe highlights the issues Bostonians are considering related to purchasing homes in affluent areas. The piece recites a financial-planning principle: “A bit of perspective: In many parts of the country, the rule of thumb is that housing costs should occupy a third of one’s income. Here, that standard frequently doesn’t apply.” Because of rising real estate prices and a desire to keep up with the Joneses, many Boston …
In the introduction to The Millionaire Next Door, a question is asked in the voice of the reader: How come I am not wealthy? The authors state: Many people ask this question of themselves all the time. Often they are hard-working, well-educated, high-income people. Why, then, are so few affluent? As I am rereading The Millionaire Next Door, as many of you are, I’m reminded of the reason the work of defining wealth in …
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A recent study from Wells Fargo and Gallup found that approximately 21% of 401(k) participants take out loans or early withdrawals from these plans. Many employees are not quite familiar with the tax consequences that go along with such behaviors. The basics of good money management, while not universally taught, can be identified and learned. Financial literacy is a necessary first step in ensuring individuals make sound financial decisions. However, it is only one …