The relationship between supply and demand is widely understood in economics. But does an aging America mean future stock returns will be lower as older Americans sell stocks for day-to-day needs in retirement?
Most economists I’ve spoken with on the matter in recent years have expressed concern about this very dynamic. It’s also a rational, simple explanation for several things. But while supply and demand are still present forces, this thesis makes a number of implied assumptions. The foremost being that baby boomers will be the only supplier of savings (capital) to the productive businesses that need it (in the form of stock purchases in the primary/secondary markets). Read the rest of this entry »
Perseverance and spirit have done wonders in all ages. – General George Washington
Have you read David McCullough’s book 1776? If you haven’t, you might not find a better addition to your summer reading list – particularly over this long holiday weekend. First published in 2005, it’s an entertaining must read not only for its historical recounting of our nation’s first year, but for its lessons in courage and perseverance.
For today’s investors, the book is a reminder of the old saying, “that which is well achieved is usually well earned!” Read the rest of this entry »
When it comes to personal finance there is one word that makes almost everyone cringe… Budgeting. Most people feel that maintaining a budget means that it will be the end of all of the “fun”. In reality, establishing and following a sound budget does just the opposite. It not only allows you to control your spending, but also is the foundation to achieve the financial goals you truly desire.
Here at Callahan Financial Planning we simply define a budget as providing for your needs within scarcity, which is the limited amount of money available to you. This means living within the amount of money you earn while taking care of your needs. The goal of having a budget isn’t to restrict your spending, but to cover all your necessities and focus any remaining money on what is most important to you. Budgeting forces you to take an in depth look at where your money is currently going and decide if that’s where it should go in order to accomplish your true goals. Read the rest of this entry »
Last week I wrote about the importance of receiving advice from a professional without conflicts of interest– putting the client’s best interest first. Today I’d like to focus on the scenarios in this capacity that can save you money.
Without a Sales Commission…
When working with a financial planner that doesn’t earn a sales commission, their only form of compensation is the fee you pay for their service. There are several ways to pay, but the two most common are paying an hourly rate for service rendered or at an annual rate based on your net worth or investment balances. This is how clients pay for advice at Callahan Financial Planning.Read the rest of this entry »
Callahan Financial Planning has officially opened its doors! Please come visit us at our brand new office in Midtown Crossing. You’ll find a sales free environment and group of knowledgeable financial planning advocates looking out for your best interest. We’re open Monday – Friday, 9:00 am – 5:00 pm.