Trusted Tips and Resources

Trusted Tips & Resources

Trusted Regina financial professionals tip on marriage finances

 Trusted Regina’s Financial experts tip on 50/50 finance in a marriage:

Can 50/50 finances work in a marriage?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bills can be a headache at the best of times. Figuring out who pays for what in a relationship can be complicated enough to trigger a migraine.

Should you split bills evenly in your marriage or partnership? What if one person makes substantially more? Should it be based on a percentage of income instead?

A 50/50 split is one way to go, but it seems fraught with problems.

“Fifty/fifty isn’t usually sustainable as incomes differ, and over a lifetime one partner usually takes time off to raise children, care for elderly relatives, or may be on sick leave for a period,”. “Fifty/fifty is a roommate, not a marriage.”

Fee-only financial planner Marie Engen of Boomer & Echo agrees that splitting expenses down the middle has the potential for unhappily-ever-after.

“This may work if both salaries are somewhat equal, but if there’s a considerable difference the lower-income partner is eventually going to resent it,” Engen says.

Ron Graham, president of fee-only financial-planning firm Ron Graham and Associates Ltd., has seen the ways a 50/50 split can work out for the worst.

“I have some clients with vastly different incomes who keep their finances separate,” Graham says. “They discuss and agree to which expenses they will pay jointly and each put an equal amount into the pot to pay those joint expenses. The balance of their incomes is then available to be spent according to each partner’s wishes. This is where sometimes conflicts arise. One person has money to go on vacation, and the other cannot afford it. I have seen some couples take separate vacations as a result. Sometimes these relationships do not last.”

 

 

A better plan

So what are alternatives? Some couples decide on another breakdown, say 60/40. Some have an informal agreement where one covers the mortgage and the car, and the other takes care of things like food and kids’ clothing. Others have the higher-paid partner pay the bills while the lower income-earner’s wages go straight to investments.

Pooling resources appears to be the most effective means to a marriage not marred by money woes.

“I have seen most harmony from a joint account all income goes into,” Waite says. “From this, pay fixed expenses … Figure out what you afford as an allowance for each person and open individual bank accounts. That way, the lower-income earner isn’t overstretched paying a high percentage of income towards fixed costs, and you each have some personal money you can spend without feeling guilty.

“Save for joint goals out of the joint income so no one feels the mountain is insurmountable alone,” she adds.

Graham says that putting money into a joint account, with each person having an equal amount of spending money, works well, especially when there’s a large discrepancy in incomes.

“If you go into a relationship thinking that your money belongs to you, this can lead to conflict and potentially separation,” he says. “My suggestion for newlyweds is to pool their resources to pay for the family expenses, put aside savings for future goals, and pay five to 10 per cent of the total to each partner to spend as they wish.

“This way, each partner gets to spend the same amount on what they want,” he says. “The family expenses are covered, and they are putting aside funds for future goals like buying a house, new vehicle, kids’ education retirement, et cetera.”

Engen is onboard with the idea of shared money too.

“I believe that in a committed relationship, income should be pooled,” she says. “Couples should determine together what is required and budget for regular expenses and short- to medium-term savings for large purchases and Registered Education Savings Plan (RESPs). Longer term Registered Retirement Savings Plans (RRSP) investments would depend on variables such as the availability and type of company pension plans. Each partner should have an amount for their own discretionary spending, no questions asked.”

 

 

Often one person has more of an interest in financial matters than the other, Engen notes, from paying bills to investing. “The other partner should be involved in discussing goals and strategies and at least have basic knowledge of assets owned,” she says.

To avoid future disagreements, Waite suggests handling joint expenses systematically.

“It’s really important to write down what you agree [to],” Waite says. “Email it to each other, use a spreadsheet saved in a joint Dropbox or OneDrive, or write it in a notebook so there are no arguments later.

“Set up automatic transfers,” she adds. “Use phone apps and tools like Mint and FreshBooks …to track progress.”

 

 

 Trusted Regina’s Finance Experts -give them a call to see how they can work for you!

 


 

Chris Worby a Trusted Regina Financial Expert shares 5 Things to Expect from Your Financial Advisor

Finding the shortest and safest route to any of your dreams requires planning and only with a carefully thought out financial plan can you be sure to make the most of your resources and to protect against risks along the way. At Worby Wealth Management, Chris will do his best to help you achieve those dreams with a plan that is tailored to your specific needs and based on your individual situation.

Let Trusted Regina Financial Advisor Chris Worby of Worby Wealth Management help you live your dream!


5 Things to Expect from Your Financial Advisor

I spend a lot of time figuring out how to add value to my clients. I read many articles on a daily basis trying to understand people’s money management issues both psychologically and mathematically. I have seen good, bad and ugly in the world of investment and here are 5 things I have integrated into my practice as I think they add value and I think you should look for these qualities in your advisor. 

1. Communication. 

During the 2008 liquidity crisis, I gained a few extra clients because I was actively in contact with my existing clients and other advisors were not in contact with theirs. The fact is that I, like all the others, did not know what was happening or why – a 50% drop over 2 months will have that effect on you! – but that didn’t keep me from calling and having appointments. I may not have had answers, but it was still my job to provide them access to whatever information was available.

 

2. Pro-activity. 

This one goes a bit hand in hand with the first one but I can’t tell you how often I’ve heard this, “he calls me at RRSP time and I go write him a cheque and don’t hear from him for a year.” Who is the client in this scenario?! One trick I use for this one is to sometimes book our next appointment at the end of this one – even if it’s going to be 6 months down the line. It keeps us all accountable to meet regularly.

3. Interest. 

I often joke that “you don’t have to be a nerd but you do have to hire one” because the reading I do and enjoy and look forward to would put the average person to sleep in about 3.7 seconds! I like people, I like math, I like psychology, I like markets – I like what I do. I don’t do it because I have to; I do it because I want to. If you are working with someone who has to do something, you know it and you also know mediocrity is the usual companion.

4. Relationship. 

Personally, I don’t get a lot of utility out of a transactional relationship. I like to get to know my clients and I like them to know me. I am a little quirky (aren’t we all) and I like other people’s quirks. I enjoy the eccentricities that make people unique and if we are dealing with transactions – “My guy calls me at RRSP time and I don’t talk to him for a year” – I don’t get a lot of personal reward from that. It makes our work together more personal, I can understand people’s goals better and I can advise them better.

5. Competence. 

This one is difficult to assess in an hour or two of meeting someone however, I think it is fair to ask a new advisor about wins and losses. “Tell me about 3 recommendations you’re proud of and 3 that you aren’t.” There is no possible way that everyone bats 1000 when it comes to recommendations based on the stock market but if someone isn’t willing to discuss it with you, that’s a red flag. This also leads to a talk about investment discipline – and that’s where competence truly lies.

 

I don’t think it’s out of line to treat a new advisor kind of like they are interviewing for a job. I often think of myself as a household’s Chief Financial Officer – you are the CEO; you’re the one making decisions and ultimately responsible. But within the realm of investments and money management services, I give recommendations for my client's consideration.

 

Call Chris Worby at (306) 757-4747 ext 226 or on his Cell: (306) 737-2909. Check out his listing on the Regina Directory in the REGINA FINANCIAL SERVICES category. Chris Worby is a Trusted REGINA FINANCIAL ADVISOR EXPERT

 

 

Some of the services that Worby Wealth Management can help you with: 

TRUSTED REGINA FINANCIAL ADVISOR Chris Worby from Worby Wealth Management helps you live your dream!


Trusted Regina Financial experts tip on Client Defections

 Trusted Regina’s Financial experts share a tip on client defections: 

Client defections to speed up!

“There are a lot of advisors who don’t keep up with their clients and wait for them to call instead of being proactive and keeping up regularly,” she said. “If my client mentions something about taking a trip at a specific time, I’ll often call them just to find out how it went. It lets them know I care, that I’m thinking about them and it’s led to more referrals while keeping my attrition rates low.”

 

 

A survey of client attrition rates for 2014 may, in fact, represent a turning point for the industry as it prepares for fallout from regulatory change.

Currently, Canada’s top financial advisors have a one per cent attrition rate while the average for Canadian advisors as a whole is closer to 10 per cent, according to Maximizer Services Inc., based in Vancouver B.C.

But CRM2 is expected to change that, with many transactional advisors anticipating client defections will double post CRM2’s full implementation.

“There will be a lot of unhappy clients out there once they realized the truth about their accounts and how much fees they’re paying to some of these advisors,”  “I think that we’ll see the attrition rate get much higher when CRM2 finally kicks in.”

Top advisors and their commitment to using advanced technology as well as those who previously anticipated CRM changes and engaged clients in difficult conversations are most likely to maintain low attrition rates.

The study also found that 69 per cent of advisors had an attrition rate of five per cent or less if they were previously using a strong customer relations management system.

Using DayLite or Symantec has helped to build her business because she is able to keep up with clients regularly. The Important thing, she says, is to be proactive for their needs, and not reactive to their demands.

 

 

 Trusted Regina’s Finance Experts -  give them a call to see how they can work for you!

 


 

 

Chris Worby a Trusted Regina Financial Expert from Worby Wealth Management shares a tip on Too Much Stuff

Finding the shortest and safest route to any of your dreams requires planning and only with a carefully thought out financial plan can you be sure to make the most of your resources and to protect against risks along the way. At Worby Wealth Management, Chris will do his best to help you achieve those dreams with a financial plan that is tailored to your specific needs and based on your individual situation.

Let TRUSTED REGINA's FINANCIAL ADVISOR Chris Worby from Worby Wealth Management help you live your dream!

Here Chris Shares A Tip About Too Much Stuff:

Too Much Stuff? What to keep…

If you’re like me, you find yourself with stuff – lots of stuff – all over the place. In a lifetime, we accumulate and accumulate and it’s hard to know what to throw out.

By no means exhaustive, this article has some good ways to catalogue stuff and may give you some ideas on how to keep your stuff sorted.

 

The following is an entertaining article:

George Carlin and the new retirement minimalism

It is finally spring. Among the rituals of spring is spring cleaning. 

Comedian and colorful social observer George Carlin described a house as "just a place to keep your stuff while you go out and get more stuff.” Spring-cleaning is an opportunity to sort that stuff — making the option of downsizing possible, ageing-in-place easier, or simply helping family members make sense out of all that “stuff” you have accumulated for decades. 

Over an adult lifetime, you collect your stuff, family stuff and legal stuff. Here are some ideas on what to do with it. 

Your stuff is everything under your roof. However, as you approach retirement, or may already be in retirement, that stuff makes life and future housing choices more difficult. The more you have, the more there is to maintain, clean and organize. A house full of furniture that was once the home of a family of five, but now only has two, makes the decision to downsize difficult. Moreover, should something happen to one member of a couple, a home's contents can be a near-insurmountable burden to manage and ultimately sort out. A new ritual of retirement may be the adoption of new retirement minimalism — eliminating items that are in the house because ... well because they have always been there. Even if you don't want to downsize to another home, consider what you can downsize while staying in the home you are in. 

Family stuff used to include furniture, glassware, tableware and a long list of family artifacts such as great grandfather Joe's steamer trunk. Lifestyles have changed and keeping and handing down family “things” has become less important. Just consider the fact that the children of the baby boomers — the millennials — aren't following the same life course timetable or preferences of previous generations. They are marrying later in life. Choosing to have fewer or no children. Moreover, the homes they are choosing, many in urban areas, are smaller. Consequently, mom's dining room set doesn't have a place to go and, even if your children have a need for a crib, chances are the one in your attic it is out of style or painted with something that has been, or will be determined to be hazardous. 

Family stuff today is about memories that can neither be bought nor replaced. Photos across the generations that are annotated identify who is in the photo and their relationship to children and grandchildren. Family videos that have been copied to the most current medium — no your VHS player isn't worth keeping. Even your own audio stories are recorded to memorialize family history. All of these items can be safely kept in the cloud, occupy little space, accessed by everyone while preserving generations of memories. 

 

Legal stuff includes important documents that you and your family need access to for managing legal, financial and health matters that will become more critical as you age. The list can be long but includes legal and financial records for real estate, wills, health proxies, medical orders and desired intentions, insurance policies, inventories and the assessed value of the insured property, investment records, bank account locations, etc. These documents, along with an up-to-date list of contacts for attorneys, financial advisers, accountants, physicians should be organized, discussed with selected family and friends, and copies maintained in the home as well as with the appropriate professional, e.g., a lawyer that assisted with will writing. 

Like spring itself, life after work is an opportunity to start new. Retirement spring-cleaning through all that stuff makes considering alternative housing options possible, simplifies life in older age, and can be an invaluable gift to loved ones. 

Warning: May contain offensive language. 

 

 

Check out his listing on the Regina Directory in the REGINA FINANCIAL SERVICES category

 



Some of the services that Worby Wealth Management can help you with: 

TRUSTED REGINA FINANCIAL ADVISOR Chris Worby from Worby Wealth Management helps you live your dream!


Trusted Regina Financial Experts tip on breaking up with your Financial Advisor - Part 2

Trusted Regina’s Financial experts share a tip on how to break up with your Financial Advisor - PART 2:

If you are looking for compensation, consider contacting the Ombudsman for Banking Services and Investments, a dispute-resolution service for banking services and investment clients. OBSI receives about 8,000 complaints a year and launches 600 to 800 investigations. They will try to facilitate a settlement and if one cannot be reached, they will write a report and make a non-binding recommendation. They can recommend restitution of up to $350,000.

Suitability is the biggest complaint (the next most common complaint is that fees are not properly disclosed), says Tyler Fleming, OBSI’s director of communications.

“Advisors and their firms have an obligation to make sure that the investments that they recommend are consistent with the client’s investment objectives, risk tolerance, financial circumstances,” he says.

“Lets say there’s a young couple who is looking to buy a house in six months and they need their savings in a safe, low-risk product. Their investment advisor puts them in something that is high risk and they lose the money that was meant for their down payment, that might be an instance where we would find it was unsuitable.”

You can take efforts to minimize conflict, he says. Take notes at meetings. Get everything in writing. Keep copies of your documents. Ask questions if you do not understand. Review your account statements. Bring someone with you who understands. Have a regular dialogue with your advisor about your changing goals — this may affect your investment plan.

“Trust your gut. When you have a feeling that something is wrong, don’t be afraid to raise that with your advisor,” Mr. Fleming says.

If things are not working out, you can either just walk away and let your new advisor deal with the transition or send a Dear John letter:

“Thank you for your help in the past. I will be going in another direction. I will no longer be needing your services. I wish you well in your future,” Ms. Waite says. “This is a good lesson in life. This is not personal,” Ms. Waite says. “Send a nice ‘thank you’ note and move on.”

Be aware that you do not have to sell your investments when you fire your advisor. If the advisor has used widely available funds such as Fidelity or Trimark funds, you can move them “in-kind” to another advisor, Ms. Waite says. You may get charged an administration fee.

However, some fund companies such as Primerica and Investors Group sell their own products and an advisor at a different company may not work with them; you can opt to find another advisor within the company.

If you want to leave the fund company, make sure you contact the firm to ask what fees you may pay if you sell your funds; a typical deferred sales charge (a back-end fee that is charged to a mutual fund investor if they redeem their investment prior to a set amount of time) starts at 6% of your initial investment in year one, declining to 0% by year seven.

You can also leave your account as is and move the money when the DSC expires or gets lower; each year, you can take out 10% of the original amount invested without being charged a DSC. Take note, your next mutual funds representative may want you to transfer your funds because she gets a commission, Ms. Waite adds.

“There are often more options than people think there are. Don’t just panic and cash out.”

 


 

 

 

 

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