Entries by Zabrina Hobor

Comprehensive Financial Planning:
What It Is, Why It Matters

Your approach to building wealth should be built around your goals & values.

Just what is “comprehensive financial planning?” As you invest and save for retirement, you will no doubt hear or read about it – but what does that phrase really mean? Just what does comprehensive financial planning entail, and why do knowledgeable investors request this kind of approach?

While the phrase may seem ambiguous to some, it can be simply defined.

Comprehensive financial planning is about

Making Decisions
About Life Insurance

Man is Mortal. That makes life insurance a little unique and interesting, doesn’t it? We purchase things like health insurance, car insurance and home insurance, then hope we never have a need to use them. Life insurance is different because it’s a widely accepted fact that, sooner or later, each one of us will die.

So many choices. When it comes to life insurance, there are many options. You may have heard terms like “whole life insurance,” “term insurance,” or “variable insurance,” but what do they all mean? And what are the differences? Well, first let me point out what they have in common: all life insurance policies provide payment to a beneficiary in the event of your death. Except for that basic tenet, the differences between policies can be major.

Money Habits That May
Help You Become Wealthier

Financially speaking, what do some households do right?

Why do some households tread water financially while others make progress?

Does it come down to habits?

Sometimes the difference starts there. A household that prioritizes paying itself first may end up in much better financial shape in the long run than other households.

Some families see themselves as savers, others as spenders. The spenders may enjoy affluence now, but they also may be setting themselves up for financial struggles down the road. The savers better position themselves for financial emergencies and the creation of wealth.

What to Do With an Inheritance

When a loved one dies, it’s already an emotional time, and receiving an unexpected windfall only complicates things. An inheritance can completely change your lifestyle or at least bolster your financial outlook, but only if you make sound decisions. The most important thing to keep in mind when dealing with an inheritance is to create a plan for its use. Because of the emotional circumstances surrounding your inheritance, it may be best to wait before making any decisions so you have time to process your thoughts and develop a coherent plan.

Dealing With Identity Theft

About 7 percent of Americans over the age of 16 are victims of identity theft every year. There is a strong possibility that, at some point, your identity will be stolen. While everyone hopes it will never happen to them, it’s always best to be prepared. Here are the essential steps to take if your identity is stolen.

1. Alert the Bank
Alert the company that is associated with the compromised information. Notify them of the situation and ask to freeze any affected accounts. Be sure to change all log in information and PIN numbers to ensure security.

Investing in Art

Stocks, bonds, cash and other accounts are common places for individuals to allocate their investments. However, art can also be a viable investment option.

In 2013 alone, people from all over the world spent about $63 billion on art. Of those who bought art, 75 percent at least partially viewed the art as an investment opportunity. If you are considering investing in art, be sure you are aware of the factors that may influence your decision.

Collecting vs. Investing

Collecting is typically for show or display while pursuing a passion. With this, you buy what you personally like and don’t necessarily focus on the price tag. However, investing in art has a much different approach. Investors may not have a personal or emotional attachment to a piece. Instead, they will see the potential to make a profit.
What to Know Before You Buy

Every Last Drop:
Making the Most Out of Wine

History was made in July 2011 when a London company sold a bottle of 1811 Chateau d’Yquem for the hefty price of $117,000, making it the most valuable white wine ever sold. Two years later and halfway around the world, visitors to the Dubai International Airport could likely charter a private jet for less than it cost to indulge in the airport’s finest drink. The Le Clos wine shop, located in Terminal 3, offers the most expensive retail bottle of wine on the market today. Each bottle of this 2009 Bordeaux from Chateau Margaux is one of just six ever made and boasts a nearly $200,000 price tag.

While these examples are exorbitant, the lengths that enthusiasts go to for good wine prove that, depending on the bottle, it can be more than just a drink and even more than a passion; wine may be a financial asset. And just as with any other asset, there are unique ways you can leverage your wine collection’s value as well as certain measures you should take to protect it. Learn more about wine as an investment,

Teaching Kids About Money

As a parent, it’s your responsibility to teach your children about the world, including how to manage money. Financial literacy is one of the most important lessons you can impart on your children to make them successful in adulthood. Raise fiscally responsible children by teaching them the right lessons for their developmental level. Teach them the basics from a young age, and build on them as your children grow up.

Young Children (2-7 years old) begin teaching your child about money. Some experts suggest beginning as soon as a child shows an interest in money or store. You and your child should work through these educational goals during this period in the following ways:

Digital Estate Planning

When you think of your estate plan and what’s important for you to protect after your death, it’s likely that your immediate worries center on your assets with the highest financial or sentimental value—your bank, investment and retirement accounts, home, precious jewelry, family heirlooms and expensive cars or boats. It’s important to protect these things, as they can provide significant financial assistance to your family or to charitable organizations. However, in today’s digital age, focusing only on your largest valuables may cause you to overlook things that you likely use every day, yet never think of in terms of estate planning—your digital assets.

Business Succession Options

A succession plan for your business is one of the most important safeguards you can use to ensure the company’s future success. Approximately one-third of family businesses that transfer to the next generation result in success, and only 12 percent make it to the third generation. Choosing tomorrow’s leaders and formulating a plan for your retirement, death, divorce or even disability are tasks that should be done early and tweaked often. The transfer of power and wealth can provide a smooth transition or can be the demise of a company, depending on how future leaders are chosen and groomed, and how tax and estate planning implications are handled.

There are various business succession options available to the owners of privately held businesses. These include: