Category: Smart Money Tips

Want to Buy Happiness? Spend Your Money Wisely

Posted on December 17, 2016 by - Smart Money Tips

pay-here

Can money buy happiness? You may think the answer is no, but maybe it’s not about the balance in your accounts and more about how you choose to spend your money. In their book “Happy Money: The Science of Happier Spending“, Elizabeth Dunn and Michael Norton delve into the research linking money and happiness.  Here are five ways they found money can “buy” happiness:

1. FOCUS ON “DOING,” NOT “HAVING”

The joy of having “things” fades quickly, whereas experiences have a lasting effect. If you’re going to spend money, choosing to go on a vacation or attend an event can lead to far more happiness than purchasing that new big-screen TV.

2. KEEP THINGS FRESH

If something is always available, it often loses its luster. If you buy a pastry every time you get coffee, it stops being a treat and becomes a dull routine. But if you only treat yourself once a week, you will have something to look forward to and will appreciate it more.

3. BUILD ANTICIPATION

Have you ever planned a trip months in advance, creating itineraries and researching restaurants? If so, you know that one of the best things about taking a vacation can be the waiting period, the build-up to the day you get on the plane or pack up the car. The anticipation of what’s to come intensifies the emotional experience.

4.  BUY TIME

Many people sacrifice valuable time to save a bit of money. But time may be more valuable. Try paying for a housekeeper, having your groceries delivered, or splurging on a direct flight instead of a cheaper indirect one. One way to save time that I’m particularly fond of (warning, shameless plug ahead) is to invest in a financial advisor to simplify your financial life. In all seriousness, by streamlining your finances, you can free up time and mental energy so you can focus on what’s important to you.

5. GIVE FREELY

We often think that spending money on ourselves will bring happiness. But in reality, one of the best ways to create fulfillment is to spend our money on others. Have you ever bought the perfect gift for someone and experienced joy at how much they appreciated it? It’s a win-win.

Having more money doesn’t guarantee happiness, but being intentional with your money can bring you fulfillment. I’d love to help you simplify your finances so you can find even more happiness in life! Click here to schedule a phone call.

About Richard

Richard Archer is a financial advisor and the President of Archer Investment Management with more than eighteen years of industry experience. Largely working with successful individuals and couples, he specializes in providing comprehensive investment guidance and personalized care and attention to each client. Along with holding a Bachelor of Science in Economics and a MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com.

Is It Better to Rent or Own in Retirement?

Posted on December 17, 2016 by - Smart Money Tips

elderly-couple-looking-at-papers

You’ve probably had it drilled into you since you were young that owning a home means that you are on the road to success. For generations, buying a home was considered the cornerstone of the American dream, but is that still the case? Is buying really better than renting in retirement?

You may be surprised by this, but the Harvard Joint Center for Housing Studies tells us that the majority of renters are 40 or older and that there has been an increase in the number of renters in their 50s and 60s. This shift shows that more people are questioning whether to rent or own in retirement.

Questions to Consider When Deciding to Rent or Own

When it comes to retirement, here are some questions to ask yourself when making the decision to rent or own your home:

Is Your Home Providing a Return on Investment?

A common cliché is that your home is an investment. But despite the benefits of homeownership versus renting, owning a home can be a considerable drain on your resources. It’s true that you can gain from owning a home. If you bought when the housing market was low, you may have amassed a large amount of equity. But that equity only serves you well if you are planning to sell. Unless you downsize or move to a cheaper area, anything else you buy will be a similar price; therefore, the equity you gain will just be going towards your new home.

But what if you feel like you are throwing away money on rent? While rent payments only go into the hands of a landlord and don’t increase your net worth, there are additional hidden costs that come along with homeownership that you might be forgetting. If you own your home, you need to budget for property taxes, maintenance, and insurance. Not to mention the time and effort required in keeping up a home. This makes the decision of whether to rent or own in retirement more complex.

If you are in it to invest, let’s consider an example. Say your mortgage interest rate is 5%. If you estimate that, based on your risk tolerance and time horizon, you can expect an investment return of 4%, it would make more sense to pay down your mortgage. Otherwise, you’re potentially throwing away 1%. However, if you are an aggressive investor and believe you could earn 8% on your investment, it would make more sense to invest. Or, think of it this way: if your ownership costs total $2,000 a month and you could rent your ideal property for $1,800 a month, you have $200 to invest. Use a calculator to compare the potential investment growth with how much equity you could gain.

Is the Tax Benefit Worth It?

If you enjoy benefitting from the tax deduction that home ownership offers, renting won’t look enticing. But remember that in order to receive the deduction, you must itemize your taxes. Depending on the value of your home, the standard deduction might be more than the interest rate deduction. Also, as you pay off your mortgage, the amount you dedicate to interest decreases each year, meaning you will receive a small deduction. And if you have already paid off your home, you can only deduct your property taxes. These factors might influence whether it is better to own or rent in retirement.

What Can You Handle in Retirement?

As you age, you might realize that you can’t handle the upkeep of your home. Even if you previously enjoyed puttering around with tools and landscaping the yard, your health might prevent you from continuing these activities. Take a look at your lifestyle and make an informed decision. If you would gain peace of mind with someone else maintaining your residence, you might want to rent.

You may be drawn to the amenities that come with renting and want to be part of a community with others who are in the same phase of life you are. Even if you enjoyed living in the suburbs or country as an empty-nester, you may be drawn to a more urban setting with more transportation options.

Is it better to own or rent in retirement? This depends on your personal circumstances, and considering the convenience of renting might sway your decision. Retirement is a completely new season of life, so you need to evaluate how you want it to look instead of relying on old ways of thinking.

Are You Planning to Leave Your Home to Your Heirs?

If part of your estate plan is to have your children inherit your home, it makes the most sense to stay put as a homeowner. According to a Trulia study, it’s only worth it to be a homeowner if you are going this route. Otherwise, it’s always cheaper to rent than own in retirement. One of the most important benefits of owning a home is building equity. If your children sell the home when you pass, the equity becomes their inheritance. But again, you need to weigh the pros and cons of the potential growth of that equity. If you sell now when the market is up and rent for considerably less, you could invest the equity you gain from the sale and use that money as an inheritance.

Do need more convincing that homeownership may not be the best financial decision for your golden years? Take the time to watch this video to get a thorough picture of why homeownership might not be your wisest choice.

Making the Decision: Rent or Own in Retirement?

Whether you rent or own in retirement is a personal decision you must make based on your unique set of circumstances and values. Do you own your home outright? How much equity do you currently have? Does your home require minimal upkeep? How are the advantages and disadvantages balancing out for you? Is it time to reevaluate your situation? I would be happy to help you think through your options and make a decision that will benefit you for years to come. Click here to schedule a phone call.

About the Author: Richard Archer

Richard Archer is a financial advisor and the President of Archer Investment Management with more than eighteen years of industry experience. Largely working with successful individuals and couples, he specializes in providing comprehensive investment guidance and personalized care and attention to each client.

Along with holding a Bachelor of Science in Economics and a MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com.

Richard Archer Receives the Five Star Wealth Manager Award

Posted on December 17, 2016 by - Smart Money Tips

five-star-professional

The Five Star Wealth Manager Award honors professionals in the financial services industry who are committed to excellence, aiding consumers as they decide who can best help them meet their financial goals. Candidates are screened for client complaints, retention rates, status as a Registered Investment Adviser (RIA), years as a RIA, and credentials such as Certified Financial Planner (CFA) and Chartered Financial Planner (CFP).

Archer is thankful to be recognized for his extensive post-graduate work, outstanding client relationships, and the decision to build his fee-only RIA business in the way he knew would most benefit his customers.

“After college, I studied for another seven years to obtain my CFA & CFP designations and my McCombs MBA. It was a lot of work, but I felt I needed to not only be able to deeply understand the investment universe and portfolio construction, but also be able to address wide-ranging financial planning issues such as insurance, estate planning, and taxes. Additionally, I wanted to be able to understand my clients who own their own businesses and to help them be even more successful. At the end of the day, the most important thing to me is to be useful and valuable to my clients. The more I know, the better I can help them achieve their dreams.”

The award is a great starting point for clients when looking for financial advice, but Archer suggests that consumers screen to make sure fees charged are commensurate with the services provided and that a potential adviser is a good fit.

“No matter the awards or designations a financial advisor has received, a client should look for someone who truly listens to them and understands their needs.”

AWARD DETAILS

To receive the Five Star Wealth Manager award, a wealth manager must satisfy 10 eligibility and evaluation criteria.

  1. Credentialed as an investment adviser representative or a registered investment adviser.
  2. Actively employed as a registered investment adviser representative or as a principal of a registered investment adviser firm for a minimum of five years.
  3. Favorable regulatory and complaint history review.
  4. Fulfilled their firm review based on internal firm standards.
  5. Accepting new clients
  6. One-year client retention rate.
  7. Five-year client retention rate.
  8. Non-institutional discretionary and/or non-discretionary client assets administered.
  9. Number of client households served.
  10. Education and professional designations.

About Richard

Richard Archer is a financial advisor and the President of Archer Investment Management with more than eighteen years of industry experience. Largely working with successful individuals and couples, he specializes in providing comprehensive investment guidance and personalized care and attention to each client. Along with holding a Bachelor of Science in Economics and a MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com.

What I Learned from My Cycling Trip: Risk Tolerance During an Ascent

Posted on December 17, 2016 by - Smart Money Tips

bike

You frequently hear the word “risk” thrown around when it comes to your portfolio, but have you truly grappled with the thought that you could lose everything? It’s easy to say that you are willing to take risks when things are good, when you’re cycling on a smooth, flat, paved road. On my recent cycling trip, I came face-to-face with risk and the fear that resulted.

THE REALITY OF RISK

Every cyclist is familiar with the moments on a long climb when they have to focus solely on the few feet of pavement in front of them, those times when they could lose their nerve if they dare to look over the cliff’s edge beside them. My most recent experience with this kind of test was when I was three hours into arguably the toughest climb in Europe: The Valley of the Tears. My fellow cyclists and I had already climbed about 40 kilometers when the very narrow, one-lane road pitched up menacingly into an unending series of 20%+ inclines separated by blind switchbacks.

I swallowed hard to push down the fear I had building up in my throat, summoned all of the remaining strength I had in my screaming quads, and attacked. In order to avoid tipping over backward in a slow motion, uncontrollable wheelie back down the unforgiving incline, I stretched out as far forward as I could, laying my stomach on my handlebars and forcing my front wheel to stay in contact with the ground. The further I rose, the worse the road surface became, challenging me even further. I dodged deep potholes every few feet, and loose gravel caused my back wheel to slip, stealing my precious pedal power. Then, I rose above the treetops along the left side of the road that had thankfully blocked my view of the 4,000-foot drop to my left.  

The road narrowed further, and I was unwillingly forced out toward the precipice by a solid mountain rock wall that curved low and in toward my head. I was left with precious little room to ride as I fought up the mangled road surface. At that very instant, I realized I had, unwittingly, pushed myself beyond my personal risk limit. Fear overwhelmed me and my shoulders, legs, and hands started shaking uncontrollably. I knew I had to get off this road and this mountain now.

ANTICIPATE YOUR LIMIT FOR RISK

I’ve never left a ride unfinished, and in my mind, quitting was not a choice. Climbers are the toughest cyclists, willing to endure hours of grueling pain and fatigue while never expecting to reach their limits. Risk is an accepted aspect of the sport, and you prepare every way you can to minimize it. You build strength over long hours on the bike trainer, quietly sneak out before sunrise on weekends to get your training rides in before the traffic begins, and avoid desserts for months prior to big climbs, trying to avoid carrying even one extra ounce up the hills.

I thought I was prepared for the Valley of the Tears. I had conquered the worst climbs Austin has to offer, finished a mountain stage of the Tour de France, had excellent equipment, was hydrated, and had held back some energy in reserve that day. I knew that this hill was going to do its best to defeat me and throw every challenge at me that it could. If you ask for help from our support van among this group of elite cyclists, you had better have a bone sticking through your skin. Not only is it just not done, but it’s mortifying for an athlete of this level to throw in the towel. On these rides, our goal is to see if we’re the among the best climbers in the world. But on that hill, my fear of death fought and overcame my shame of arriving at the top of the climb inside the van, my bicycle sticking out of the top rack like a big blue last place trophy for all to silently ridicule.

RISK AND YOUR PORTFOLIO

I unclipped from my pedals midway through that climb. I had no choice. I had dangerously lost my ability to focus only on the road ahead of me. I had failed to anticipate my limit for risk, and now I was in a jam: 4,000 feet in the thin air, squeezed on a rough, narrow path, unable to safely descend or ascend. As I reflect on my predicament, I cannot help but draw parallels to the risk that accompanies financial portfolios.

I spend hours every week working with my clients, trying to determine how much risk they are willing to take with their hard-earned money in exchange for potentially higher investment returns. It can be hard to figure out your risk tolerance when you haven’t seen your portfolio fall 35% or more like many investments did in 2008. It’s my job to guide you toward a portfolio you can hold fast to when the road gets rough above the treetops and real, permanent loss is staring you in the face. My only goal is to help you discover your risk limits before you’re overcome with fear and dangerously stranded like I was in the Valley of the Tears, when you are too terrified to hold on, and cannot afford to sell and lock in your losses at likely the worst possible time. I’d love to chat with you, talk through your goals, and help you reach your dreams while working within your personal risk level. Click here to schedule a phone call.

About Richard

Richard Archer is a financial advisor and the President of Archer Investment Management with more than eighteen years of industry experience. Largely working with successful individuals and couples, he specializes in providing comprehensive investment guidance and personalized care and attention to each client. Along with holding a Bachelor of Science in Economics and a MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com.

What Does Financial Peace Look Like?

Posted on December 17, 2016 by - Smart Money Tips

meditation

Have you ever imagined what it would feel or look like to be stress-free about money? It’s not uncommon for most people, wealthy or not, to worry about money. One study found that money was the leading cause of stress among Americans, and 64% of people consider money to be a somewhat or very significant source of stress. (1)

While there’s no guarantee that any amount of planning or investing can cure all of your worries, taking proactive control of your financial situation and future can significantly help you feel more confident. At Archer Investment Management, we like to tackle financial planning in five different areas, each of which is designed to improve your life in a unique way. Together, these strategies cohesively work together to help you pursue your goals and visualize what financial peace can look like for you and your family.

1. LIFE PLANNING

Before you can accomplish something, you need a goal. Otherwise, you’re essentially driving blind without a map for guidance. The foundation of a strong financial plan is clarity regarding what you want to accomplish now and in the future. In this area of financial planning, it’s important to consider:

  • When do I want to retire?
  • What do I want to achieve in 5, 10, and 20 years?
  • Do I plan on expanding my family or sending a child to college?
  • What does a comfortable lifestyle look like?

Addressing these questions can help you prioritize your objectives and define what steps to take.

2. INVESTMENT PLANNING

Investing can play a powerful role in your financial planning, but it’s overwhelming for most people. Investing doesn’t have to be scary if you have set intentions, needs, and a partner to guide your decisions.

Along with identifying your overall money goals, you’ll want to consider your investments and how they are working for or against you. This involves asking:

  • Is my money working as hard for me as it can be?
  • Am I paying fees that are too high?
  • Do I have too much risk in my portfolio?
  • Do I understand what I’m investing in?

The more you understand about your portfolio, investment opportunities, and goals, the more you can feel confident about how your money is working for you.

3. ESTATE PLANNING

Beyond your personal goals, you likely have dreams for your children, grandchildren, loved ones, or charitable organizations. Estate planning helps you have a stronger handle on where your money will go and how it will be used in the future. When considering your estate, you’ll want to ask:

  • Does my family know my intentions should I ever become incapacitated?
  • Have I named and updated my beneficiaries?
  • Is my estate subject to federal estate taxes?
  • Does my family know where our important household documents are stored?

Planning for your estate can help both you and your family feel more confident about the future and any decisions they may have to make in an emergency.

4. INSURANCE PLANNING

There’s no such thing as a life without risk, but you can actively work to reduce its negative impact. Too often, people push insurance off to the back burner without realizing how important of a role it can play in their life. As you consider these other elements of your finances, ask yourself the following:

  • Am I and my loved ones protected from an unexpected life event?
  • Would an illness permanently derail my retirement?
  • How would we budget if I or my spouse could no longer work?

As they say, expect the best and plan for the worst. Insurance may seem like betting against yourself, but just as you wouldn’t drive without auto insurance or go without health insurance, put a plan in place to safeguard your wealth.

5. TAX PLANNING

Last but not least, there are taxes, which play a role in everyone’s financial life. Many people don’t realize that there are legal ways to reduce the amount of taxes you have to pay, which means more money in your pocket and for your future retirement. Beyond your annual tax return and taking advantage of credits, consider the following questions:

  • Do I have an executive compensation plan?
  • Am I taking maximum advantage of my tax-deferred savings opportunities?
  • Are there other opportunities for me to save for retirement while reducing taxes?

Tax planning and retirement planning can work hand-in-hand, especially if you collaborate with both your CPA and financial advisor.

PURSUING YOUR IDEAL FINANCIAL FUTURE

Addressing all of these questions and creating a detailed plan to pursue your goals can help guide you toward greater financial confidence and peace. At Archer Investment Management, we help our clients build comprehensive financial plans and provide them a customized website that helps them monitor their progress. We believe this helps our clients stay engaged with their plan and understand how they can take small steps to work toward big goals.

If you’re interested in learning more about what your financial future can look like and how to start taking steps toward your goals, I encourage you to reach out to me. You can book an appointment online here so we can talk about your answers to these questions and what you’d like to accomplish.

About Richard

Richard Archer is a financial advisor and the President of Archer Investment Management with more than eighteen years of industry experience. Largely working with successful individuals and couples, he specializes in providing comprehensive investment guidance and personalized care and attention to each client. Along with holding a Bachelor of Science in Economics and a MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com.

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(1) http://www.apa.org/news/press/releases/stress/index.aspx

VIDEO: This Next Climb Will be My Toughest Ride Yet

Posted on December 17, 2016 by - Smart Money Tips

bike

In a few short weeks, I will embark on one of my toughest cycling trips yet, Pico de las Nieves. The setting is the island of Gran Canaria, which lays just 100 km west of Morocco. The route rises from the tropical coast to above the clouds over the course of one long day. The gradient gets steeper (consistent double digit gradients) as the day goes on, making it a very difficult climb. I look forward to a challenging, beautiful, and rewarding ride. Watch this video to see the route!

The Day My Identity Was Stolen

Posted on December 17, 2015 by - Smart Money Tips

hacker

It was a seemingly ordinary day when it happened. My phone rang and, when I answered, I heard the voice of an unknown man.

“Hello, is this Mr. Richard Archer? This is John from Neiman Marcus in Atlanta. We’re just calling to confirm that you were just in our mall location and applied for a new store credit card.”

These three sentences commenced my unfortunate identity theft journey. In the next few days, I came to learn that a man had my Social Security number and full name and had created a fake driver’s license with my correct home address alongside his picture. He walked around the Atlanta mall impersonating me, moving from store to store trying to open credit accounts. So far, he had succeeded at Neiman Marcus, Best Buy, Toys ‘R’ Us, and several times at Verizon. Before we were alerted, he’d run up more than $1,000 in cell phone charges.

HOW DID IDENTITY THEFT HAPPEN TO ME?

Some people might wonder how I, a financial planner, could become the victim of identity theft. I’ve helped multiple clients get through identity theft, and I know what a mess it can be. Hoping to avoid it happening to me, I shred account statements religiously, watch my credit score online, consistently update my passwords, use a locked mailbox, and never click on suspicious links online. So what went wrong?

I thought long and hard about it and then I remembered notices from my alma mater and TJ Maxx. Both had suffered huge data breaches in the past two years, and they had each notified me that my personal information might have been compromised.

Here’s the truth: identity theft can happen to anyone — even to a financial planner and even to people who proactively safeguard their personal information. If you’ve ever had a bank account, credit card, shopped online, or included your Social Security number on an application, your identity could potentially be stolen.

WHAT TO DO ABOUT IDENTITY THEFT

It was in the evening when I received that call from Neiman Marcus, and it was hard not to panic at the thought of everything I was going to have to do to get this fixed. I knew I needed to cancel my credit cards, change my account passwords, and notify my bank and credit agencies. I had read stories about others who had their identities stolen and it had taken them, on average, a year and 200+ hours to get to a point where they could use their rebuilt credit again.

But then I remembered I had purchased ID Theft Concierge Protection from Zander ID Theft Solutions. I found their hotline number and called them, crossing my fingers that their office wouldn’t be closed at this time of night. My anxiety was high as I pictured a crook walking around Atlanta ruining the good credit I had worked so hard to build.

Luckily, a professional from Zander was available and immediately helped by placing a freeze on my credit and requesting me to send in everything I could to help him fix this problem. Over the next four weeks, I scanned and sent copies of all related correspondence I received regarding my many new credit accounts while the folks at Zander personally contacted and cancelled each new fake credit request. They had to contact several companies multiple times because the companies really wanted to get paid the thousands of dollars they were owed.

Three months later, Zander had my entire credit report back to normal, and within four months my credit score was restored.

LESSONS LEARNED

Experiencing this process firsthand, I learned the value of having expert help. It was such a relief not having to figure out all of the ins and outs of rebuilding my credit by myself. The professionals at Zander were faster, more persistent, and more successful than I could have been while also trying to run a business and spend time with my family.

Based on the amount of information my identity thief knows about me, I am positive it will happen again in the future. However, I have alerts set now that tell me when anyone requests new credit and a special verbal password to use with the credit agencies and my banks. I continue to do everything I can to protect my data myself, but a lot of it is out of my hands since I’ll frequently have to share my Social Security number, date of birth, name, address, driver’s license number, or other information. Furthermore, data breaches are becoming more common, so it’s just a matter of time before it happens again.

However, I feel more confident and at ease knowing someone else is also looking out for me. These are the feelings I hope to provide my clients. By serving as a family’s financial professional, I am there to provide a second set of experienced eyes on their strategies, offer guidance, and take some of their responsibilities off their plate so they can focus on their family.

Whether you have questions about protecting your identity or seek advice about other elements of your finances, I’m here to help and am available to chat. You can easily book an appointment with me online here.

About Richard

Richard Archer is a financial advisor and the President of Archer Investment Management with more than eighteen years of industry experience. Largely working with successful individuals and couples, he specializes in providing comprehensive investment guidance and personalized care and attention to each client. Along with holding a Bachelor of Science in Economics and a MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com.

Case Studies: How We’ve Helped Clients

Posted on December 17, 2015 by - Smart Money Tips

handshake

At Archer Investment Management, I’ve spent nearly two decades specializing in serving successful professionals and couples, providing comprehensive investment guidance and personalized care and attention. Whether they’ve built or inherited their wealth, they want to ensure they are maximizing its potential and as well building a secure financial future for themselves.

From personalized investment management to executive compensation planning, my comprehensive services are designed to address all of my clients’ complex needs and guide them along their financial journey. My ultimate goal is to offer people financial peace of mind and confidence in our abilities and advice.

Proactive financial planning and customized investment strategies can make a significant impact on your financial future. Here are three recent examples of clients I have helped.

CASE STUDY #1: TACKLING COMPLEX EXECUTIVE COMPENSATION

I work with many LGBT couples who want to ensure their partner or spouse is taken care of should one of them prematurely pass. One such individual is a successful corporate executive who is receiving ongoing and extensive stock options and restricted stock awards through his company. With so many opportunities, he wasn’t sure how to best handle them. He was also concerned with minimizing income taxes due to his high income, and ensuring his new spouse would be taken care of after he passed.

Working together, we started with their estate. Collaborating with a knowledgeable estate attorney, I ensured they developed an estate plan that ensured his husband had all the proper legal rights and protections and was named the beneficiary on their investment accounts. This would ensure the client’s wishes were carried out.

Next, we tackled his investments. After collecting and reporting the missing cost basis on years of company stock positions, we developed a plan with his CPA and company benefits administrator. Ultimately, we set up a multi-year, systematic exercise schedule of incentive stock options and restricted stock awards to smooth his income, minimize ongoing taxes, and to mitigate his single stock risk to his employer as new options are granted in the future.

Along with consolidating his company stock positions with the rest of his portfolio to simplify his finances, I helped him plan for his cash flow needs to cover his ongoing taxes from his investment plan and diversified the sales proceeds into a global portfolio to lower his high investment risk. By the end, the client had an up-to-date estate plan, an understanding of his cash flow and financial goals, and a great CPA who could assist with sophisticated executive compensation tax issues. On an ongoing basis, we monitor his company stock and adjust our strategy as stock prices increase. He continues to minimize his taxes and maximize his corporate retirement plan contributions to make the most of his savings.

CASE STUDY #2: BUILDING FINANCIAL CONFIDENCE

I work with many successful working professionals, including attorneys. One very intelligent lawyer I work with had an overwhelming and confusing financial picture. He had accounts with multiple advisors, various insurance policies, complex legal partnership deferred compensation and ownership benefits, children from previous marriages who required financial support, an upcoming wedding, and a desire to purchase a second home. Needless to say, he had trouble keeping things organized and knowing what steps to make.

To help, we embarked on establishing an in-depth financial plan. To assist with the purchase of the new high-end residence he wanted, I helped him determine how much money he could afford to spend, and I provided a letter of reference to his Homeowners Association board. Explaining that he had a professionally-developed financial plan in place was valuable knowledge for the board. Along with projecting second home expenses, we also reviewed college savings projections for all of his children to ensure 529 college savings plans were fully funded and invested in low-cost, age-based portfolios.

Next, we tackled his business needs. This included establishing a baseline valuation of his firm partnership share, discussing partnership buy-in loan payoff options, maximizing employer retirement plan contributions to take advantage of the tax deferrals, and exploring the benefits and risks of using his firm’s deferred compensation plan. We also analyzed his insurance needs and rolled over multiple IRAs, consolidating them at one custodian to simplify his portfolio. The result is a portfolio with lower costs and more predictable long-term investment returns.

Through this process, we integrated all of his financial assets, files, and financial plan into a secure client portal so he can keep track of his entire financial life in one location. As a result, the client has a stronger grasp on his financial picture and feels more confident in his future. We continue educating him on his complex finances, how his portfolio is invested, and how to manage his wealth.

CASE STUDY #3: MANAGING AN UNEXPECTED INHERITANCE

While an influx of wealth is usually a good surprise, it’s a surprise nonetheless. One of my clients is a couple with a parent who suddenly passed away and they became first-time executors of a large estate.

The thoughtful and judicious couple had always been very cautious with money, saved well, and had long followed my financial planning advice as they built their wealth. In a sense, they were doing everything right. Upon receiving the large inheritance, they didn’t know how best to manage it and wanted to make sure they didn’t squander it. As investors with a long-term focus, they turned to me to help them efficiently manage and grow the wealth.

We began by working through some complex family issues that arose as the estate was being administered. From there, we focused on developing a detailed financial plan that reflected their goals for their new, significantly larger investment portfolio.

One important goal was for the wife to be able to leave her stressful job and stay home while their two children were still in school. We put these new lifestyle needs at the forefront of their financial strategies. This involved budgeting, implementing an accelerated debt repayment plan, updating their estate plan, fully funding their two children’s 529 college savings plan, and taking proper inherited IRA distributions.

With their new plan in place, the family feels much more confident in their financial future. They still prefer to live frugally, but they know they can live comfortably and enjoy some of their wealth through more family vacations.

HELPING YOU

I work with a broad range of clients facing unique needs and circumstances. Whatever the situation, I strive to address them through a proactive process that focuses on understanding your personal situation, addressing your concerns, and creating strategies that help you work toward your goals.

If you’re experiencing a situation similar to one of these case studies or face an entirely different need, I encourage you to reach out to me. I can evaluate your situation and share how I can help. There are no obligations, and your consultation is on us.

You can easily book an appointment with me online here. 

I look forward to speaking with you.

My Upcoming Cycling Trip and Your Retirement: How Are They Alike?

Posted on December 17, 2015 by - Smart Money Tips

mountain

You may think I’m crazy, but I’m about to embark on the hardest physical challenge of my life: The Gran Canaria & Tenerife Ride Camp. Some of you may remember that I rode in the climbing camp at the Tour de France two years ago, so this is right up my alley. Here’s what the trip will look like: 7 days, 426 miles, and 60,000 feet of climbing. That’s like riding from Chicago to Pittsburgh while climbing Mt. Everest twice…all in one week!

This camp is the annual spring mecca for top Tour de France contenders, and it will not be a leisurely ride through the park. I’ll face immense climbs, such as the Valley of Tears (the name says it all) and Pico de las Nieves. The most difficult, though, will be the famous inactive volcano, El Teide. It’s the longest continuous climb in Europe, with an incline of 5-7% as it rises to over 12,200 feet.

How am I preparing myself for this enormous challenge? How does a physical race compare to your finances?

SET SHORT-TERM GOALS

I’m approaching my training the same way I work through financial planning with my clients: breaking big, long-term goals down into smaller, achievable pieces.  We all know that saving for retirement is a long-term goal, but having short-term goals along the way can help you stay focused to make your dreams seem attainable. Planning for retirement requires mental fortitude!

As a real-life example of this concept, last weekend I completed a 112 mile, eight-hour climbing ride that, taken as a whole, seemed absurd and unachievable.  However, I had already ridden each of the hills on the course and completed a relatively flat century ride, so I knew I could complete both the distance and the hills. Mentally, I broke the route up into three 35 mile segments and focused on one loop at a time as I rode.

I kept energy in reserve, knowing that I would need it for the hardest climbs at the end of the ride. When it comes to saving for your future, you will also require more focus, energy, and resources as you get closer to your retirement date. Do everything you can to ensure that you stay strong after decades of working hard.

As I train for the Gran Canaria camp, I’m tackling increasingly difficult goals each week, taking baby steps to prevent injury and strengthen myself physically and mentally. I’m planning to build my mileage and climbing each week while staying just within my physical abilities.

HAVE THE RIGHT SUPPORT

One thing that is crucial to my success is having the best equipment and professional support. I will ride a light, carbon fiber Bianchi climbing bike with an excellent seat. I will also have access to an experienced support team to assist me when I need food, water, guidance, and encouragement.

In the same way, you will be most successful with your financial plan if you have the proper support and tools. You may be okay doing it on your own, but if you have professionals who can guide and encourage you as well as educate you, the chance of reaching your goals is higher.

Just like I did at the Tour de France a few years ago, I look forward to riding and living with cyclists from all over the world. I’ve met athletes from Australia, England, France, Spain, and Italy on previous trips and these encounters always remind me how small the world is and how similar people are, no matter where they come from. Cycling trips like these make me feel small and big at the same time as I experience the elation of successfully summiting a massive climb in a foreign land while simultaneously hearing jubilation in four different languages. Surrounding yourself with people who are on a similar journey as yourself can create a community that will strengthen you when things get rough.

PREPARE FOR THE DESCENT

Most people don’t know this, but the descent is more difficult than the climb. This is when my equipment, preparation, and support team are essential. The absolute focus and preparation it takes to descend safely requires me to clear my mind of everything else and stick to my riding plan no matter what. Descending at speed for long distances on unfamiliar, foreign roads is scary. Knowing my own riding ability and tolerance for risk is of absolute importance to complete my ride in one piece. 

As you are saving for retirement, you can expect to experience market volatility and multiple downturns. When these situations arise, stay calm, rely on your support team, and focus on the solid strategy that you have created with your advisor. This is how you keep your portfolio safe when the markets go haywire.

BE PROUD OF YOURSELF

As you get closer to your goals and see growth in your portfolio, be proud of yourself for your determination and hard work. Find ways to reward yourself for reaching your goals!

My reward for all of this training is a week on an exotic Spanish island that I would probably never visit if it weren’t for this cycling trip.

When was the last time you pushed yourself to do something that scared you? Have you ever taken the time to evaluate your goals, your support team, and your “equipment”? If you think your retirement “trek” is missing something, I’d love to chat with you! Click here to schedule a phone call.

About Richard

Richard Archer is a financial advisor and the President of Archer Investment Management with more than eighteen years of industry experience. Largely working with successful individuals and couples, he specializes in providing comprehensive investment guidance and personalized care and attention to each client. Along with holding a Bachelor of Science in Economics and a MBA, he is a CERTIFIED FINANCIAL PLANNER™ certificant and a Chartered Financial Analyst®. He combines his advanced industry education and knowledge with his genuine care for people to provide clients with an exceptional experience. To learn more about Richard, connect with him on LinkedIn or visit www.archerim.com.

VIDEO: My Thrilling Birthday Plane Ride

Posted on December 17, 2015 by - Smart Money Tips

plane

VIDEO: My Thrilling Birthday Plane Ride

VIDEO: My Thrilling Birthday Plane Ride — Archer Investment Management

Remember that not all of your financial planning goals have to be about saving for college or retirement. In fact, remembering to live (and even scare yourself a little!) along the way is highly recommended. To celebrate my birthday this year, I took a ride with a Navy fighter pilot to pull some intense g-forces in a fantastic old aerobatic biplane over the water outside San Diego. We finished with a tour of the city and a low, fast buzz up the coastline. Check out the video below!