Bel Air, Maryland Financial Planner Discusses Long Term Care Insurance

Here is an interview I did with Melissa Barnickel of Baygroup Insurance where we discuss the costs of long term care, the features of LTC insurance, and the reasons to purchase the insurance.




About Picket Fence Financial: Picket Fence Financial is a fee-only, NAPFA registered financial planning firm dedicated to saving folks from Wall Street. Picket Fence Financial feels people have been poorly served by the commission structure of Wall Street. Clients of the typical Wall Street firms receives sales pitches that are loaded with conflicts of interest. You can find out  more information about Picket Fence Financial at http://www.picketfencefinancial.com.

About Kirk Kinder: Kirk Kinder, CFP® (Certified Financial Planner) is the founder and President of Picket Fence Financial. Kirk worked for the Motley Fool (http://www.fool.com/) where he served as their Director of Member Services. The Fool’s approach of exposing Wall Street’s dirty secrets appealed to Kirk. They shared a common belief that financial planners entrusted with other’s money should have their client’s interests at heart. After leaving the Fool, Kirk worked at a fee-only financial planning firm in Palm Harbor, Florida. There Kirk finished his studies for the Certified Financial Planner designation. Kirk then started Picket Fence Financial with offices in the Baltimore/DC area and Tampa/Clearwater, Florida vicinity. Kirk also has a Masters degree in Personal Financial Planning from the College for Financial Planning – the organization that manages the education requirement for the CFP. Kirk has been quoted in several financial publications including the Wall Street Journal, Kiplingers, Investor’s Business Daily, Standard and Poor’s, and Bloomberg Wealth Manager to name a few. Kirk has also been featured on the local Fox, ABC and NBC affiliates in Baltimore and Tampa Bay. 

Bel Air, Maryland Financial Planner Discusses How Long to Keep Financial Records

Here is a video where I describe how long to keep your financial records.

About Picket Fence Financial: Picket Fence Financial is a fee-only, NAPFA registered financial planning firm dedicated to saving folks from Wall Street. Picket Fence Financial feels people have been poorly served by the commission structure of Wall Street. Clients of the typical Wall Street firms receives sales pitches that are loaded with conflicts of interest. You can find out  more information about Picket Fence Financial at http://www.picketfencefinancial.com.

About Kirk Kinder: Kirk Kinder, CFP® (Certified Financial Planner) is the founder and President of Picket Fence Financial. Kirk worked for the Motley Fool (http://www.fool.com/) where he served as their Director of Member Services. The Fool’s approach of exposing Wall Street’s dirty secrets appealed to Kirk. They shared a common belief that financial planners entrusted with other’s money should have their client’s interests at heart. After leaving the Fool, Kirk worked at a fee-only financial planning firm in Palm Harbor, Florida. There Kirk finished his studies for the Certified Financial Planner designation. Kirk then started Picket Fence Financial with offices in the Baltimore/DC area and Tampa/Clearwater, Florida vicinity. Kirk also has a Masters degree in Personal Financial Planning from the College for Financial Planning – the organization that manages the education requirement for the CFP. Kirk has been quoted in several financial publications including the Wall Street Journal, Kiplingers, Investor’s Business Daily, Standard and Poor’s, and Bloomberg Wealth Manager to name a few. Kirk has also been featured on the local Fox, ABC and NBC affiliates in Baltimore and Tampa Bay.

Quoted in WSJ article regarding Jeremy Grantham’s Predictions

by Kirk Kinder on April 7, 2013

One of the smartest minds in finance, in my opinion, is Jeremy Grantham, the head of GMO LLC, which manages $106 Billion in client money. Grantham warned of the impending doom that hit in 2008 and called a bottom in 2009. I have followed his writings since 2001, and he has been extraordinarily close when predicting forward 7 and 10 year returns on various asset classes. If you look at his current predictions, it should scare investors. For instance, he is calling for large capitalization stocks (big boys and girls like Disney, GE, Coca-Cola, Walmart, etc.) to return a -0.6% over the next 7 years with small capitalization stocks (companies like Alaska Air, Aetna Health, Starwood properties, etc.) to return -1.7% over the same period. In fact, returns for all asset classes don’t look too pretty according to Grantham. Maybe he is wrong, which is always a possibility in investing, but he does have a track record that forces me to take notice. I certainly concur with this view that these assets are overvalued. My recent webinar shows you how I came to these conclusions: http://www.savingyoufromwallstreet.com/2013/03/market-overview-webinar/

Places You Should Invest
In a recent Wall Street Journal article, I talked with Murray Coleman about using Exchange Traded Funds (ETF) for asset classes the Grantham does like for the ensuing 7 years. Two of Grantham’s favorite areas to invest are timberlands, farm land, and high quality dividend stocks with solid balance sheets. Farm land ETFs don’t really exist right now. You can buy ETFs that invest in companies focused on supporting the farming industry, but Grantham likes the actual land. This isn’t available in ETF form or mutual funds right now. However, options exist for timberlands and high quality dividend stocks. From the article:

Two areas he has been more positive about–timber and high-quality dividend-paying stocks–are also asset classes favored by Picket Fence’s Mr. Kinder. In client portfolios, he is adding to positions in the iShares S&P Global Timber & Forestry ETF (WOOD) and the Guggenheim Timber ETFCUT -1.24%(CUT).

“There’s a strong diversification benefit to including timber ETFs into the mix,” Mr. Kinder says. “Although it wouldn’t be surprising to see a short-term pullback in lumber prices, the fact that Grantham sees longer-term value adds to our conviction about that asset class.”

As for higher quality stocks, he is currently investing in the SPDR S&P Dividend ETF (SDY). “It focuses on companies that have raised their dividends over the past 20 years, which highlights businesses with strong balance sheets,” Mr. Kinder says. “These are the bellwethers that Grantham seems to like.”

Other options exist, especially for the high dividend ETFs, but these are the options I like for timber and high dividend paying stocks. So as you look for ways to invest your money for the next few years, you may want to think about adding these asset classes to your portfolio. Just ensure you research the options before investing.

Kirk Kinder, CFP® is the Founder of Picket Fence Financial, a fee-only financial planning and investment management company dedicated to saving folks from Wall Street. Picket Fence Financial does  this through a few different ways. One, our fee-only approach ensures our advice is tailored to our clients needs and not driven by commissions.  Two, we minimize costs for clients by utilizing low cost Exchange Traded Funds (ETF) and aligning our internal operations to keep our company costs down (and passing this along to our clients). Third, we offer a la carte planning, which means our clients decide how they want to work with us. Rather than forcing clients into our model of planning, we offer hourly, retainer, or asset management options (or a combination thereof).

All information on this site are the opinions of Kirk Kinder, CFP® and should not be construed as investment, tax, estate or insurance advice. Please consult your own specialist for personal assistance.

Mistakes Parents Make When Paying for College

I was recently featured on WBAL Channel 11 discussing mistakes parents with college planning: Top 6 college tuition mistakes parents make | Maryland News – WBAL Home

While parents make several mistakes planning to pay for college, I featured six of the most common mistakes I see:

1. Not creating competition among colleges: If your child identifies a school, you should have your child apply to two or three similar schools. For example, if your child applies to a small, liberal arts private school, you should apply to similar schools. Often children apply based on geographic considerations, rather than similar schools, even if they aren’t close geographically. By applying to similar schools, the student has a chance to create competition. If your child’s first choice comes back with a lower amount of aid than a similar school, you can appeal the decision by your child’s first choice.

2. Assuming you can’t afford private college: It is common knowledge that private school is more expensive than state schools. So many parents completely write off private school. Often, private school may not cost more than a state university. Aid is based on the Expected Family Contribution (EFC), and a family may qualify for more aid at a private school, especially if the family has more than one child in college.

3. Ignoring community colleges: It’s natural for parents to want to provide everything for their child, but community colleges are a solid way to save money. If the child finishes at a four year school, the degree reads the name of the four year school with no reference of attending a community college. Community colleges are excellent institutions and offer students a chance to get the pre-requisites out of the way at a much lower cost.

4. Worrying too much about the FAFSA: Parents often make drastic maneuvers to qualify for more aid. The primary way of doing this is by re-positioning assets. There are lots of insurance and annuity salesmen who prey on parents promising higher college grants by selling products to improve their FAFSA outcome. While it is true life insurance and annuities are exempt from the FAFSA calculations, most people don’t end up with more aid due to these maneuvers. Once a family make more than $50,000, the grants are harder to receive. Additionally, moving assets into these vehicles has a material impact on retirement and taxes.

5. Not Thinking Strategically about the tax return: Some parents make unnecessary moves to get more aid, but the opposite is true as well. If a parent doesn’t think about the tax ramifications for each taxable event, they can jeopardize potential aid. One time events usually lead to lower aid. The Expected Family Contribution is based primarily on the tax return. Some examples of common one time events are:
- Taking capital gains in a year by selling a stock
- Getting a one time bonus
- Selling a rental property for a gain or even selling a business
- Taking an IRA distribution, especially one to pay for college.

6. Sacrificing retirement savings for college: As mentioned previously, parents want to do everything they can for their children including paying for college. However, many parents are behind on retirement savings. Your child can get loans for school. Parents can’t get loans for retirement. If the choice is saving for retirement or paying for college, then retirement rules the decision.  Even worse, some parents actually remove money from retirement vehicles to pay for college. This has big tax ramifications and can materially affect the financial aid the student is eligible to receive.

Kirk Kinder, CFP® is the Founder of Picket Fence Financial, a fee-only financial planning and investment management company dedicated to saving folks from Wall Street. Picket Fence Financial does  this through a few different ways. One, our fee-only approach ensures our advice is tailored to our clients needs and not driven by commissions.  Two, we minimize costs for clients by utilizing low cost Exchange Traded Funds (ETF) and aligning our internal operations to keep our company costs down (and passing this along to our clients). Third, we offer a la carte planning, which means our clients decide how they want to work with us. Rather than forcing clients into our model of planning, we offer hourly, retainer, or asset management options (or a combination thereof).

All information on this site are the opinions of Kirk Kinder, CFP® and should not be construed as investment, tax, estate or insurance advice. Please consult your own specialist for personal assistance.

Maryland Financial Planner Provides Market Outlook Feb 13

Here is my latest webinar discussing the outlook for the US stock market. With the market flirting with the 2007 highs and the press hyping the market, are we in for a huge bull market or should caution rule the day?
Find out my thoughts.


Kirk Kinder, CFP® is the Founder of Picket Fence Financial, a fee-only financial planning and investment management company dedicated to saving folks from Wall Street. Picket Fence Financial does  this through a few different ways. One, our fee-only approach ensures our advice is tailored to our clients needs and not driven by commissions.  Two, we minimize costs for clients by utilizing low cost Exchange Traded Funds (ETF) and aligning our internal operations to keep our company costs down (and passing this along to our clients). Third, we offer a la carte planning, which means our clients decide how they want to work with us. Rather than forcing clients into our model of planning, we offer hourly, retainer, or asset management options (or a combination thereof).

All information on this site are the opinions of Kirk Kinder, CFP® and should not be construed as investment, tax, estate or insurance advice. Please consult your own specialist for personal assistance.

Where is the Market Headed?

The markets are hitting highs. Investors are giddy. Let the good times roll...or not. In this month's webinar, we will explore the longer term valuation of the markets as well as some intermediate and shorter term trends. If you would like to attend live, you can sign up here: https://www3.gotomeeting.com/register/543679150.

I will also post a replay a couple days later on this website, but if you attend live, you can ask questions.

Kirk Kinder, CFP® is the Founder of Picket Fence Financial, a fee-only financial planning and investment management company dedicated to saving folks from Wall Street. Picket Fence Financial does  this through a few different ways. One, our fee-only approach ensures our advice is tailored to our clients needs and not driven by commissions.  Two, we minimize costs for clients by utilizing low cost Exchange Traded Funds (ETF) and aligning our internal operations to keep our company costs down (and passing this along to our clients). Third, we offer a la carte planning, which means our clients decide how they want to work with us. Rather than forcing clients into our model of planning, we offer hourly, retainer, or asset management options (or a combination thereof).

All information on this site are the opinions of Kirk Kinder, CFP® and should not be construed as investment, tax, estate or insurance advice. Please consult your own specialist for personal assistance.

Press Release on HSBC article by Kirk Kinder, CFP of Picket Fence Financial

http://www.free-press-release.com/news-financial-planner-kirk-kinder-cfp-of-picket-fence-financial-discusses-hsbc-drug-money-laundering-scandal-1359985027.html

The recent fine leveled by the Department of Justice on HSBC bank proves the banks run the U.S. The fine equates to five weeks of earnings for the company, and no executives or employees will face jail time. Even though the bank knowingly funneled millions of dollars for the drug cartels, the bank personnel will escape jail free. It was so bad that Mexican bank regulators told the head of HSBC Mexico, point blank, that drug smugglers were laundering money through the bank. Yet, the bank did nothing. This examination will show you how bad it really was.

Another Sign the Banks Rule the US

Here is a solid interview with Matt Taibbi by Bill Moyers discussing how HSBC funneled money for known drug dealers. Despite this dubious behavior, the US Department of Justice (DOJ) slapped a fine equivalent to 5 weeks of earnings on HSBC. No one will go to jail over this. Some of the top execs may only get the 12 bedroom home in the Hamptons instead of the 16 bedroom palace, but outside that, no real punishment will take place. Of course, if you get caught smoking a joint in your own home, you may spend time in prison. This is an interview well worth the 15 minutes. I also included Taibbi's interview on Colbert in case you prefer your news with humor.

 Either way, this shows how devious Wall Street really is.

The Colbert Report Get More: Colbert Report Full Episodes,Political Humor & Satire Blog,Video Archive

 

Kirk Kinder, CFP® is the Founder of Picket Fence Financial, a fee-only financial planning and investment management company dedicated to saving folks from Wall Street with offices in the Bel Air and Towson Maryland area. Picket Fence Financial does  this through a few different ways. One, our fee-only approach ensures our advice is tailored to our clients needs and not driven by commissions.  Two, we minimize costs for clients by utilizing low cost Exchange Traded Funds (ETF) and aligning our internal operations to keep our company costs down (and passing this along to our clients). Third, we offer a la carte planning, which means our clients decide how they want to work with us. Rather than forcing clients into our model of planning, we offer hourly, retainer, or asset management options (or a combination thereof).

All information on this site are the opinions of Kirk Kinder, CFP® and should not be construed as investment, tax, estate or insurance advice. Please consult your own specialist for personal assistance.

Press Release for Kirk Kinder's appearance on WBAL in Baltimore

http://www.free-press-release.com/news-kirk-kinder-cfp-featured-on-wbal-tv-in-baltimore-about-fafsa-1359661281.html

You can view the press release on my recent appearance on WBAL TV of Baltimore.

Kirk Kinder Discussing FAFSA on WBAL TV

Even though I have a face for radio, I somehow got on TV to discuss the 7 Mistakes Parents Make on the FAFSA (the Free Application for Federal Student Aid). You can find the video here.

If you want the information without having to look at my ugly mug, here are the main points regarding the FAFSA.

1. File early: Often times, student aid is on a first come first served basis. If you delay applying, you could miss out on student aid. The deadline for the FAFSA is June 30th, but many states have different deadlines. Maryland, for example, has a March 1 Deadline. Start the FAFSA now even if you don't have your taxes done yet. You can estimate these figures then finalize them when your taxes are done. Make sure you get your taxes done as soon as possible. Don't wait until April 15th.

2. File even if you think you won't get aid: many families with higher incomes don't file the FAFSA because they believe they won't get any aid. That is not always the case, especially if your child is looking at a private school or you have more than one child in college.

3. Pay down debt with savings: The FAFSA looks at your annual income (tax return) and your assets. If you have money in a bank or non-retirement investment account and you have credit card debt or an auto loan, pay those debts off. This will increase the amount of aid you might receive. Also, if you have been thinking of doing a home improvement or buy a car, this is a great time to pay cash for those expenses to reduce your assets for the FAFSA. Just make sure you don't use the FAFSA as an excuse to buy a new car you really don't NEED.

4. Appeal aid decisions: If you have a big one time tax item like a bonus or stock option exercise, this will impact your eligibility for aid. However, you can appeal your aid decision to the school stating that your income was abnormally elevated due to this one time bonus or option exercise. The school will often change the aid award.

5. Minimize tax items: Since the FAFSA is based off your tax return, you need to do some strategic tax planning. Some ways you can do this is avoiding big capital gains, don't take distributions from retirement plans, contribute the maximum to your retirement plans, utilize cafeteria plans at work (FSA, insurances, etc.), and look at using Health Savings Accounts for the annual deduction.

6. Get Assets out of Kids Name: The FAFSA looks at the parents and child's assets and income. The parents are expected to contribute 5.6% of certain assets to college expenses while the student's rate is 20%. Move assets to the parents name to increase your potential aid. If your child has a savings account with substantial assets, open a 529 plan. The 529 can be owned by the parent with the child as a beneficiary.

7. Don't make radical changes to your assets: Many financial salesmen exist that push parents to high commission products like annuities and permanent life insurance to reduce their asset calculation on the FAFSA. It is true that annuities and permanent life insurance balances are not included in the FAFSA, but these instruments have material impacts on your future retirement and tax situations. Often, I find the only one who really benefits from major shifts like this are the salesmen.

Kirk Kinder, CFP® is the Founder of Picket Fence Financial, a fee-only financial planning and investment management company dedicated to saving folks from Wall Street. Picket Fence Financial does  this through a few different ways. One, our fee-only approach ensures our advice is tailored to our clients needs and not driven by commissions.  Two, we minimize costs for clients by utilizing low cost Exchange Traded Funds (ETF) and aligning our internal operations to keep our company costs down (and passing this along to our clients). Third, we offer a la carte planning, which means our clients decide how they want to work with us. Rather than forcing clients into our model of planning, we offer hourly, retainer, or asset management options (or a combination thereof).

All information on this site are the opinions of Kirk Kinder, CFP® and should not be construed as investment, tax, estate or insurance advice. Please consult your own specialist for personal assistance.