Retirement

The Value of a Written Financial Plan

May 6, 2021 by Hans Blake, CFA, CPA

Reading Time: 2 minutes On today’s Intelligent Money Minute, we interview Larry Swedroe on the value of having a written financial plan. A written financial plan helps one avoid glaring holes that may not be apparent before writing it down. Also, studies show that those with a written financial plan tend to stick it far more than those who don’t. During this episode, Larry gives multiple examples of how some avoided financial disaster with a written financial plan and some who experienced financial disaster due to not having one. Many people plan more for their summer vacations and weddings than then do their retirement. Studies have shown that people are more committed to a written financial plan. At Intelligent Investing, we guide our retirees into and through retirement, and one of the ways we do that is through creating a comprehensive written financial plan. We review your retirement concerns and risks, and we dive deep into your spending needs, wants, and wishes. Typically, we review the financial plan annually with you and update it as needed for life events as life changes. If you are interested in having an independent professional guide you in creating a comprehensive written plan, please go to “Get Started.” Schedule a short discovery call or meeting We’ll be interviewing Larry on several podcasts regarding markets, passive investing, and diversification, so be sure to subscribe to our Intelligent Money Minute podcasts. Larry was among the first authors to publish a book that explained the science of investing in layman’s terms, “The Only Guide to a Winning Investment Strategy You’ll Ever Need.” He has since authored seven more books.

Larry Swedroe Bio

Since joining the Buckingham Strategic Wealth in 1996, Chief Research Officer Larry Swedroe has spent his time and energy educating investors on the benefits of evidence-based investing. In his role as chief research officer and as a member of the firm’s Investment Policy Committee and Board of Directors, Larry regularly reviews the findings published in dozens of peer-reviewed financial journals, evaluates the outcomes and uses the result to inform the firm’s formal investment strategy recommendations. Larry’s dedication to helping others has made him a sought-after national speaker. He has made appearances on national television shows airing on NBC, CNBC, CNN and Bloomberg Personal Finance. Larry is a prolific writer, contributing regularly to multiple outlets, including Advisor Perspectives and ETF.com. Before joining Buckingham, Larry was vice chairman of Prudential Home Mortgage and senior vice president at Citicorp. Larry holds an MBA in finance and investment from NYU and a bachelor’s degree in finance from Baruch College.

The Hardest Decision a Child Will Have to Make (Part 2)

April 21, 2021 by Hans Blake, CFA, CPA

In our previous post, we talked about how many seniors unrealistically believe they can take care of themselves for the rest of their lives. Unfortunately, this isn’t the case, and we discussed the importance of regular communication and how to deal with stubborn parents. This post is a continuation of that theme…

Make Sure All Siblings Are Unified

It is vital that all siblings and family members are on the same page. It often only takes one disgruntled child who urges the parent to stay in his home to make placement nearly impossible. Sometimes this challenging sibling isn’t even the one taking care of the parent or may live far away without first-hand knowledge of the situation.

Avoid Extraneous “Baggage”

When families get together, there can sometimes be personal “baggage” brought to the table. It is best to avoid unnecessary confrontation or sensitive family subjects, for the good of the parent. Remember, don’t be selfish. It is not about your issue or past grievance, it is about what’s best for your parent.

Power of Attorney

Important items to address include financial issues to pay for the parent’s living expenses, and who will act as the elder’s durable power of attorney for health care. One capable person should be appointed as the elder’s primary advocate. This person, whether a son (or daughter-in-law) or daughter or adult grandchild, should oversee financial decisions and act as the elder’s durable power of attorney for health care.

Dealing with the Guilt

No matter how smoothly the process goes, children often retain guilt about moving elderly parents to a long-term care facility, especially, if they are religious. Regardless of whether you promised to never put a parent in a nursing home, the decision about placement must be based on what’s best for the parent at a given time.

Remember, putting a parent in a nursing home may be the most loving act that a child can do because it may improve the quality of the parent’s life from medical and social perspectives. Nursing homes vary in quality but in general, are places where parents often thrive.

Remember, putting a parent in a nursing home may be the most loving act that a child can do because it may improve the quality of the parent's life from medical and social perspectives. Share on X

Forming a Caregiving Team

Caregiving is a family affair. It is important to gather your siblings, children, uncles and aunts together to address an ailing loved one’s needs. Have a meeting and discuss the problem, without the parent present. Remember to never go it alone.

You may also want to include a financial advisor, home care provider, and elder care attorney on your caregiving team. A financial advisor may be able to help answer financial questions related to placing mom or dad in an assisted living or skilled care home. A wealth manager may help preserve capital for your aging parent and help with determining the best way to fund the assisted living home. The home care provider may be able to “shop around” for the ideal next home for your parent. An elder care attorney can help with legal questions related to your aging parents.

We’d like to be part of your Caregiving Team

Intelligent Investing’s first core value is Compassion. We think that it is important to give generously to those in need, and your parent is now the one in need. We may be able to help you organize your parents’ “financial junk drawers.” We can also manage their remaining assets in a way that helps preserve them to pay for their next place of living. We can be your “financial quarterback” in organizing the key professional players you need input from. We often collaborate with several professionals who deal with issues that may be outside of your wheelhouse. As you face this emotional time in your life, we would be honored to serve with you and help you tackle the toughest decision you may ever face.

The Four Horsemen of the Retirement Apocalypse

April 15, 2021 by Hans Blake, CFA, CPA

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Reading Time: 2 minutes On today’s Intelligent Money Minute, we interview Larry Swedroe on the four horsemen of the retirement apocalypse. Larry explains the importance of investors not using historical returns for blindly forecasting the future. On the contrary, Larry explains the need to understand how the returns earned value. During the episode, he goes through misconceptions about equity evaluations, optimistic forecasting, and bond yields. Larry explains in detail the four horsemen of the retirement apocalypse:

Equity evaluations are much higher
Bond yields are lower
Longevity risk
Long-term care risk

As Larry mentioned, the Four Horsemen of the Retirement Apocalypse can seem scary and produce fear in your hearts. As you approach or if you are in retirement, there are some ways to plan for such events. At Intelligent Investing, we minimize financial stress to maximize lives. Our goal is to create a written financial plan and stress test your plan and portfolio for these types of events. We’d love to sit down with you over a complimentary coffee or virtual meeting to discuss how we may serve you and your family. Don’t face retirement alone…let us be your financial accountability partner and we can face the future together. Schedule a short discovery call or meeting We’ll be interviewing Larry on several podcasts regarding markets, passive investing, and diversification, so be sure to subscribe to our Intelligent Money Minute podcasts. Larry was among the first authors to publish a book that explained the science of investing in layman’s terms, “The Only Guide to a Winning Investment Strategy You’ll Ever Need.” He has since authored seven more books.

Larry Swedroe Bio

Faith in the Midst of Tragedy: Losing a Child to Mental Illness

March 18, 2021 by Hans Blake, CFA, CPA

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Reading Time: 2 minutes

During this episode, Shelly opens up about the mental illness that ailed her late son Jonathan. Around 19 years old, Jonathan Hamilton took an acne medicine that sent him into a clinical depression. Upon further examination, the doctors diagnosed Jonathan with schizophrenia. After seven years with no solutions, a Christian psychiatrist found a combination of medicine that enabled Jonathan to function. During this period, Jonathan penned beautiful songs published by Majesty Music and began working again. Fifteen years into his illness, a generic version of his medication became available, which removed the insurance coverage of Jonathan’s specialized medicine. Unknown to Ron and Shelly, Jonathan chose to go off the generic medication and tragically took his own life on Mother’s Day. Losing their son rattled Ron and Shelly’s world. In the midst of their tragedy, they remained strong in the faith believing in God’s providential plan for their life. Jonathan left a lasting legacy and a testimony that has touched the lives of many.

As Shelly pointed out in her life verse, the Just shall live by faith. You may be wondering why this episode is on a financial podcast, and the reason is that death and tragedy are all part of life. Many facing trials and tragedies turn to faith, and we hope this has been an encouragement to those who are facing similar trials including mental illness, suicide, or the death of a child. One of Intelligent Investing’s Core Values is Truth, and we believe that speaking the truth in love is a way to show compassion on others. Sometimes the truth hurts or is hard to say, and we hope this episode has been an encouragement to those facing similar tragedies. Be sure to subscribe to our Intelligent Money Minute podcasts to hear our many interviews with Shelly and her family by going to our podcast page.

If you haven’t subscribed to our podcasts, you can go to our podcast page and choose whichever method you want to download them. While you are there, you can go to our blog page and subscribe so you can get our latest Intelligent Insights directly in your inbox.

Shelly Hamilton Bio

Shelly Hamilton, the daughter of Frank Garlock, married Ron Hamilton aka “Patch the Pirate” in 1975. They have managed Majesty Music and written sacred music for children and adults since they joined the ministry in 1978. Shelly currently ministers at Majesty Music as pianist, composer, arranger, and recording producer. In 2013, their son killed himself after years of struggle with mental health issues. The family’s public struggle and acknowledgement of mental health issues has reached people around the world. Most recently her family faces a new challenge: Ron Hamilton’s early onset of dementia. Her insight and music will encourage anyone facing the challenges of life.

In January 2018 Majesty Music announced their third generation of leadership. After years of waiting for God’s timing, Ron and Shelly transitioned the ministry over to their son-in-law Representative Adam Morgan and his wife, Ron and Shelly’s daughter, Megan.

Faith in the Midst of Trials

March 4, 2021 by Hans Blake, CFA, CPA

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Reading Time: 2 minutes

For when I am tried and purified, I shall come forth as gold. These are the words that Ron Hamilton penned as he faced cancer which eventually took his eye. Ron and Shelly Hamilton had only been married three years when they received the news that Ron had cancer in his eye. Initially, the doctors speculated that his cancer could spread further into his brain, which would prohibit any surgical operations. Shelly had to come to grips with the reality that she may lose her husband after only three years of marriage. Thankfully, God had a different plan for Ron and Shelly. The doctors removed Ron’s eye and through that trial was the birth of the Patch the Pirate adventures.

As Shelly points out, God often turns our greatest trials in our lives into the greatest blessings of our lives. At Intelligent Investing, we understand that managing your wealth and finances is a small fraction of your entire life. Our goal is to help be your accountability partner, and advisor, as you face various trials in your life. We’d be honored to have a quick cup of coffee or a call to talk about what is going on in your world, and see if we may be a good fit to assist you as we go through life together.

Shelly Hamilton Bio

From Trials to Blessings: The Story of Patch the Pirate

February 18, 2021 by Hans Blake, CFA, CPA

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Reading Time: 2 minutes

We never know when unexpected trials will come. Perhaps you’re left wondering why and how these trials could be part of God’s sovereign plan. Back in 1978, Ron and Shelly Hamilton were teaching at Bob Jones University when Ron started to notice reading difficulties in his left eye. After a series of tests, they discovered that he had cancer in his eye. Little did Ron and Shelly know that Ron losing his eye would pave the way to an incredible lifelong ministry of music and song. While at church, the children started asking Ron what’s over his left eye, and he responded that it’s a patch. He took it a step further and told the children to call him Patch the Pirate. Fast forward 4o years later, Majesty Music has produced over 40 adventure series of Patch the Pirate. Out of this tragedy, Ron wrote this song, “Rejoice in the Lord” as a reminder of God’s sovereignty.

Shelly’s story about her husband Ron’s cancer and turning these trials into something beyond their wildest dreams is a humble reminder to trust in God’s bigger plan when the days are dark, scary, and lonely. We’ll be learning more from Shelly on several episodes of Intelligent Money Minute. We wanted to provide you with some background information before we dig deeper into financial related topics such as transitioning a family business, caring for a spouse in retirement, and much more.

If you haven’t subscribed to our podcasts, you can go to investedwithyou.com and choose whichever method you want to download them. While you are there, you can go to our blog page and subscribe so you can get our latest Intelligent Insights directly in your inbox.

Shelly Hamilton Bio

The Four Biggest Financial Problems a HENRY Faces

January 28, 2021 by Hans Blake, CFA, CPA

Reading Time: 2 minutes

First of all, nobody likes to be labeled, and there are always exceptions to the rule, but HENRY is an acronym that stands for High Earner Not Rich Yet (coined by Fortune in 2003). HENRYs are young doctors, lawyers, engineers, or other top-earning professionals who have a high salary but don’t have time to manage investments. They are in the process or have finished paying off student loans and are beginning to accumulate a nest egg. They may have a young family and are becoming an expert in their professional field. Essentially HENRYs are young professionals who have a high salary but don’t have time to manage investments.

A couple of quick stats: Many HENRYs are Millennials who like control and technology, and make up the largest generation. They have the highest number of billionaires and are digital do-it-yourselfers. 25% aren’t sure how their retirement savings are invested, and 80% are concerned Social Security won’t be there for them when they retire.

People make money in many ways, but often don’t know what to do with it after they’ve made it. Some of the biggest financial problems a HENRY faces: The 4 Ds

The 4 Ds- Debt, Direction, Discipline, and Digital Dangers

First, they have insurmountable Debt–

The Federal Reserve estimates that Americans owe more than $1.7 trillion in student loans. In addition to student loans, HENRYs face ridiculous rents, or are living with their parents, as they have a hard time saving up enough for a down payment on a home. In addition, they can’t afford enough insurance for a health or disability event.

Second, they lack Direction–

63% of Americans are living paycheck to paycheck, and if faced with a $500 emergency, 8 out of 10 couldn’t cover the cost. As a result, HENRYs haven’t created an Emergency Fund, a Budget, or retirement plan.

Third, they lack Discipline–

They often are unsure where to get sound financial advice and they are too busy developing their own career. They don’t have time, nor the accountability they need to keep them on the right path.
Instead of talking about their latest hot stocks at the water cooler as in prior generations, they are in Reddit chatrooms or Social media feeds convincing each other they know more about a company’s stock than anyone. This overconfidence bias will eventually get them into trouble.

Fourth, They face Digital Dangers–

We live in a digital world that is instantaneous. HENRYs prefer paying by digital wallets, and are comfortable throwing money at cryptocurrencies like Bitcoin. They like the recent high returns of Bitcoin, and they think they are a long way off from retirement so they can afford to take some risks. They remember their parents complaining about the 2008 housing crisis which was the result of bankers and brokers playing fast and loose with “safe investments like stocks and houses.”
We are now seeing a repeat of those behavioral mistakes. By eliminating transaction fees, HENRYs are on the Robinhood app convinced that their stock, Bitcoin, or options purchases can only go up.
In the short run, they may be right as they gamble, but in the long-run, the house always wins.
Sometimes HENRYs fool themselves into thinking they can just “Google” their financial or investment questions. Unfortunately, it’s not that easy. Market conditions and economic forecasts change constantly. Technology can beat humans at computations, but I also believe it is best to receive wisdom from a human who understands investor behavior and who leverages integrated technologies.

Cryptocurrency & How It Works

January 27, 2021 by Hans Blake, CFA, CPA

Podcast: Play in new window | Download

Reading Time: 2 minutes

On this episode of Intelligent Money Minute, we interview Matt Hougan, Chairman of Inside ETFs on cryptocurrency and how it works. During this episode, Matt pulls back the curtain and sheds light on the nuances of cryptocurrency. According to Matt, cryptocurrency is the first native way that money can move over the internet. For example, if you go online today and pay your internet bill, it could take multiple days for that money to transfer. Contrast that with a Bitcoin transaction. Matt gives an example of a billion-dollar transaction that settled in less than 10 minutes with a fee of .0007%. There are many misconceptions regarding cryptocurrency. Simply put, it’s a new rail for the modern transfer of money.

I recently read a quote, “Knowledge acquired by reason will dispel ignorance and thus destroy the greatest evil—fear.” As Matt points out, when you hear of something new, it is best to do some research in order to gain knowledge and a better understanding. We think the same holds true of cryptocurrency, blockchain, and alternative asset classes. Just because something is new, doesn’t make it wrong. At the same time, just because it is new, doesn’t mean it’s better. To learn more about our philosophies, go to our philosophy page.

Matt Hougan Bio

Matt Hougan is one of the world’s leading experts on crypto, ETFs, and financial technology. He is Global Head of Research for Bitwise Asset Management, creator of the world’s first cryptocurrency index fund. Hougan is also Chairman of Inside ETFs, the world’s largest ETF conference. He was previously CEO of ETF.com, where he helped build the world’s first ETF data and analytics system. Hougan is co-author of the CFA Institute’s Monograph on ETFs. He’s also a crypto columnist for Forbes, and a three-time member of the Barron’s ETF Roundtable. For more resources from Matt Hougan click here.