Why Your Career Should Be Considered Part of Your Portfolio

David Blanchett, the head of retirement research for Morningstar Investment Management, recently published a paper entitled “No Portfolio Is an Island”. In it he looked at counting your career as one of the most dynamic factors for asset growth, a strategy that’s been validated by other financial advisors.

“You should think of your wealth holistically,” Blanchett says. “If you think of yourself as an entity with these risk exposures, how do you use your portfolio to make [your] overall wealth as efficient as it can be?”

The fact is, everyone expects that their hard work will one day pay off, but most people also realize that they need to continually add new skills to their resume in order to be able to survive the changes that usually occur in the real world. Today staying employed his more than just earning a living and saving for retirement, it’s also his vehicle to stave off financial crises that might damage your retirement or force you to drain your retirement accounts in order to cover other emergencies or expenses.

Blanchett says that “Your ability to pivot into a new job will affect your retirement,” adding that “If you are going to make a change, have more of your portfolio in cash” to pay for classes, certifications and a potential gap in income while you switch to a new position. On the other hand, he also advises that it the position that you are right now is stable and safe, reasonably speaking, you may want to take a bit more of a risk with your portfolio.

Paul Winkler, a financial advisor from Goodlettsville, Tennessee, says that “The future value of your career declines as you age because you have fewer years to work,” and he adds that “If you have a choice between taking $50,000 and investing in yourself and your future earnings through a master’s degree, or put the money into the market, consider the relative risks. Are you getting into a different industry, and so opening up more opportunities and thus minimizing risk?”

Winkler believes, for example, that getting a Masters degree in philosophy or a Master of business administration are both risky but that, if a person were to get a Masters degree in computer science, the risk is minimal. He says that “Your confidence in your career and your willingness to change is a huge,” and goes on to say that “But it doesn’t matter what the risks are you are moving on them.”

Carrie Birgbauer, New York money coach, believes that changing careers only works when the move is synchronized with a person’s other financial goals. She says that “There’s a lot of magical thinking about career changing,” and adds that a person should will “Consider yourself an asset in your own portfolio: How will you source help and minimize costs to gain a sustainable investment?”

One thing that Blanchett advises is that people think of how their everyday decisions about their career will affect their portfolio in the medium-term. He believes that this insight will help people to make decisions about their career, helping them to manage their risk accordingly.

8 Tactics For Breaking Your Lease Without Losing Money

breaking-your-lease

breaking-your-leaseSigning a lease on an apartment definitely has its pros and cons. With the standard one-year lease, you’re guaranteed a place to live at a fixed rate for that period of time.  Simultaneously, you’re bound to that contract and can’t simply leave without financial repercussions. Fortunately, there are some ways to still have flexibility while under a lease and to limit the financial damage if you want or need to break that lease.  Here are some of the tips I’ve learned after dealing with several landlords.

1. Find out if you’ll be able to sublet your apartment.  Every …

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The Up-Side of Being ‘Cheap’

money-spruce-giveaway

Okay, we all know that being called “cheap” is usually something that is not a compliment. The fact is however that being frugal is actually very good for your finances, and offers quite a few financial rewards, which we’ll take a look at below. Enjoy.

1) Paying less in interest rates. Saving up money ahead of time will allow you to avoid borrowing so much money and paying a lot working interest when it’s time to purchase a new home or automobile. Choosing a less expensive home is also a way that frugal people save, because they don’t let …

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How Final Expense Insurance Can Cover Funeral Costs

When a loved one passes away, it can be costly to have a funeral. During this stressful time the last thing, your loved ones need to be worried about is finances. Having a final expense insurance policy can make covering the costs of a funereal 10xs easier. Today, we will be discussing just how final expense insurance can cover funeral costs. Therefore, if you have been considering investing in final expense insurance, you can see if it is ideal for you to do.

Pre Planning

Many funeral homes offer pre-planning services. This means that you can organize your funeral in …

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7 Habits That Lead to Wealth

When most of us think of “wealthy” people today, we think of star athletes, movie stars and wealthy businessman. The fact is however that many “average” Americans are also quite wealthy, and it had nothing to do with their ability to play a sport, act or conquer the business world.

In fact, these people simply had a number of habits that helped them to become wealthy and, as people do with habits, they stuck with them in the long run and built their wealth, much the same as anyone else could do if they had the same habits. If you’d …

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IRAs: What You Need to Know for 2015

Individual Retirement Accounts (IRAs) allow you to save for retirement by taking advantage of certain provisions in the tax code. As with everything else in the tax code, the rules about IRAs can change from year to year. Here’s what you need to know for 2015.

An IRA can be set up by a bank, a mutual fund or your favorite online brokerage. There are two kinds of IRAs that you can open:

  • Traditional IRA – Gives you a tax break on the money that you save for retirement.
  • Roth IRA – Allows you to put in after-tax money, but
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3 Money Saving Rules to Follow

When it comes to money it seems that very few people have the ability to do one thing: take good advice. Let’s face it, most people see saving as being “boring” and spending as being “fun”, which is one of the reasons that millions of Americans are up to their eyeballs in debt.

Below are 3 extremely basic but excellent rules about money that experts have been giving out for years but, unfortunately, nobody seems to be following. If you want to keep your finances looking good, keep your debt extremely low and retire with a lot of extra money

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How much Money do you Really Need to be Happy?

It’s a question that’s been asked by millions of consumers and millions of new investors; how much money do you really need to be happy?

The answer is found by defining your goals. You need to determine what it is you actually want. Is it a comfortable retirement? Owning a beautiful, comfortable home and not having any debt? Having your own private jet?

Whatever the answer to these questions are, and others about your wants and needs, they set the approach that you need to take as far as handling your investment portfolio in order to earn money.

The …

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Borrow Smart, Avoid High Fees

Whether you are looking for long term credit or a short term loan, ensure you are getting great interest rates from reputable lenders without damaging clauses that loop you into rising interest, extra penalties or loan calls. By searching out all your options before you decide to get credit or a loan you can save yourself a lot of money in interest and penalties.

 

Government Grants or Loans

Many municipal, state or federal governments offer loan programs for a wide array of needs to consumers and small businesses. Depending on your need some of these programs are grants. The …

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6 Hurdles Keeping you from Being Wealthy

If you’re like many consumers in America today, you’re probably having trouble keeping your financial head above water. No matter how many hours you work and how much money comes in, by the end of the month it’s all gone and you sit there wondering how it happened and where it went.

Thinking about becoming wealthy is likely the furthest thing from your mind, and rightfully so. The fact is, most American consumers have at least one major hurdle that they have to get over in order to become wealthy, and many people have several. Six of those hurdles are …

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