Financial Blog

In a crowded field, can Nest Egg Guru stand apart?

Demand for retirement planning advice has never been greater. Boomers are entering retirement, and estimates are they will inherit as much as $30 trillion in the years ahead. It's no surprise, then, that just about everyone related to the financial services industry wants to provide retirement advice to wealthier boomers.

This need has caught the attention of some entrepreneurial folks who find fault with the current crop of retirement planning software. Enter the co-founders of Nest Egg Guru: Jack De Jong, Jr., and JR Robinson. De Jong is a CFA and finance professor at Nova Southeastern University in Fort Lauderdale, Fla. Robinson is the founder and owner of Honolulu-based Financial Planning Hawaii.

Nest Egg Guru software seeks to answer two seemingly simple questions: 1) How much will I have saved for retirement? and 2) How long will my retirement nest egg last after I retire? As any experienced practitioner knows, these questions sound simple, but arriving at the answers is complex.

What advisers need to know about working with LGBT clients

Planners take notice: the LGBT community could use your services.

Less than one-third of lesbian, gay, bisexual or transsexual individuals surveyed by Prudential Financial say they work with a financial adviser, and a majority says they lack basic knowledge about financial planning.

A lack of financial knowledge or the ability to gain required financial knowledge were top concerns of the LGBT survey respondents.

LGBT individuals also feel much less confident tackling important financial goals compared to the general population, are less comfortable managing an investment portfolio on their own, and are more likely to see themselves as spenders rather than savers, according to the new Prudential Financial study.


Less than one-fifth of LGBT respondents say they are well prepared to make wise decisions to save enough for a lifetime, for example, compared with 28% for the general population.

3 mid-year financial planning tips for small businesses

Even with half of the year in the books, many small business owners in Mesquite may wait until the end of the year to assess their business and identify ways to improve on their financial performance. Yet making time for a mid-year check-in -- when you have a good idea of your business' needs - may be one of the best times to help your business save time and money and operate more efficiently in the long run. From preparing for quarterly taxes, to managing cash flow and revising business plans, every Mesquite business owner can benefit from a financial refresh. Below are three financial tips to help you stay on track the rest of the year:

Update your business plan

Every small business in Mesquite should have a formal written business plan to help with business decisions and strategic planning. If you don't have one, or if your plan hasn't been updated in a long time, now is a great time to consider writing or updating your business plan. The process of putting your goals in writing will help you focus on long-term business objectives and the steps needed to achieve them. Business Planning also can help identify current or future obstacles so you can better anticipate and avoid potential risks. In addition, a business plan may be helpful for obtaining business financing. For example, for an SBA loan and some larger business loans and lines of credit, lenders may require a formal business plan before extending credit. Among the resources available to help is a free, online Business Plan Center that Wells Fargo offers, which includes a tool to create or update a written business plan.

Estimate taxes

As a small business owner, you're responsible for filing your business taxes on a quarterly basis. If you don't already, establish a separate bank account and use it to set aside a monthly amount toward estimated taxes. Also, keeping business checking and credit accounts separate from personal accounts can help you maintain accurate and complete records of all business-related income and expenses, and can help you plan accordingly for when tax payments are due. If you're unsure about your estimated tax obligations, it's wise to consult a local tax specialist. They can also help you to properly track and record your earnings and deductions.

Recharge your cash flow

Business owners in Mesquite know there are two essentials to keep a business running: profits and available cash. One best practice is to check your business cash flow every week. Focus on the timing of income and expenses to identify potential gaps and plan ahead to determine how much cash youll need to cover potential challenges. Nearly every small business will face a time when it needs more cash than it has on hand. You may want to consider a business line of credit to help bridge any gaps your business encounters in cash flow. For instance, when taxes are due, you may want to use a line of credit to help keep your cash flow constant and cover ongoing expenses, while paying down your tax debts. Consider making time to meet with your banker for a financial review that includes an assessment of your credit needs. A banker can walk you through the available options, and help you choose the right business financing options that make sense. Remember: the more you talk about your business, your needs, and your goals, the better guidance you'll receive.

Whether summer is your busiest time of year or your slow season, it's a good idea to conduct a mid-year financial review. Taking time now can help you stay ahead of the curve and make the most of the remainder of the year.

Lester Romero is the Small Business Manager for Wells Fargo in Mesquite, 611 W. Mesquite Blvd.

How DoL rule may impact mutual funds

Mutual funds with sales loads and non-traded REITs that include variable compensation to advisers such as sales commissions and revenue sharing will require advisers to use the rules best interest contract exemption Aikin explained in an interview with Financial Planning.


But advisers are unlikely to want to take the BIC exemption, due to its more onerous requirements, he noted.

In time, that means advisers are less likely to offer higher cost, actively managed investment offerings, said Rob Foregger, co-founder and EVP of the enterprise digital advice company NextCapital.

Foregger said he also expects many companies selling 40-Act mutual funds to switch their business model to advice from products.

I expect a seismic change as product manufacturers will have to adapt to the new rule, he said.


Most RIAs who are fiduciaries will see relatively little changes in their business as a result of the new rule, according to Aiken. But transaction-based firms will have to change their mindset, he said.
Transaction-based brokers are concerned with profitability and helping their client, but for fiduciaries the optimal outcome for the investor comes first, Aiken said. Fee-based brokers are going to have to retool and reverse their current thinking.

Asked during the session if IRA rollovers are dead, Elizabeth Kelly, special assistant to President Obama for economic policy replied that rollovers arent dead; they just have to be in the clients best interest.

However, rollovers will be under intense scrutiny in the coming months, Aiken said.

He also threw cold water on the notion that the recent spate of lawsuits challenging the validity of the DoLs fiduciary rule might prevent the rule from taking effect next April.

The rule is not going away, Aiken said.

2018  NC Peace Justice   globbers joomla templates