Cash Flow
Articles for Our Clients on Cash Flow
The articles in this section are to provide thinking towards managing your cash flow commitments more effectively. The threats, obligations, and opportunities in your immediate horizon of time are affected dramatically from your cash flow. Successful financial strategies require consideration of your current cash flow, and consideration for the effects of future decisions on your cash flow.
Each decision you make brings new goals and new financial challenges on your cash flow position. The articles in the Cash Flow section of our library are to help you anticipate these issues, evolving your financial strategies to keep up with your life. So you have the strong foundation you need to continue moving forward.
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November 11, 2011
With the economic turmoil of the past few years still roiling their personal finances, many American households have made a focused effort to “deleverage,” that is, to pay down their debt balances. And while the average American consumer may have given lip service to reducing their indebtedness in the past, this time it appears they are serious about it. The Federal Reserve reported that...
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October 7, 2011
When Congress first began writing legislation for tax-favored retirement plans in the 1970s, some of the provisions were likely based more on projections (guesses) than historical precedent or experience. This seems particularly true of the required minimum distribution (RMD) regulations which mandate that a certain percentage of retirement account accumulations must be withdrawn after the...
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October 7, 2011
A typical method of monetizing real estate assets is taking a loan against the equity. But most monetizing strategies that involve conventional borrowing come with the obligation of regular scheduled repayments. A reverse mortgage is a unique monetization-by-borrowing agreement that offers flexible and deferred repayment options. Along with several other unique advantages, a reverse mortgage can...
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August 2, 2011
As medical costs keep escalating, both insurance companies and consumers are pushed to accommodate these rising expenses. For insurance companies, the challenge is how to provide coverage that is both meaningful and affordable. For consumers, the challenge is how to pay both increased premiums and higher out-of-pocket medical expenses. A report from McKinney & Co. cited in a July 16, 2011,...
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July 5, 2011
Because economics is a field that attempts to explain and quantify so many issues and behaviors, reaching consensus on a particular issue can take a long time, and by a long time, we mean centuries. So when die-hard opponents finally come to agreement on a topic, it’s almost a surprise. Here’s the startling consensus: Social Security, as presently formatted, is unsustainable.
The idea that Social...
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July 5, 2011
If you were 22 years old, fresh out of college, and looking for a job, how’s this for an entry-level position:
The minimum first-year salary is $310,000, with a salary scale that rapidly increases each year (stay on the job for six years, and the minimum salary more than doubles). And depending on your resume of previous work experience and performance bonuses, your first-year income could...
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June 17, 2011
Parents (and grandparents) who used 529 plans to save for college expenses were often attracted to the programs because they offered tax-free accumulation on deposits and no taxation on withdrawals, provided the funds were used for educational expenses. And because of the special tax treatment of the deposits, it is no surprise that withdrawals require some careful handling to make sure they...
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May 13, 2011
“A millstone around your neck”Definition: a problem or responsibility that you have all the time which prevents you from doing what you want.
College-Loan Debt: A Millstone on a Graduate’s Future
Want to give your children a financial advantage for the rest of their lives? Then help them graduate from college without any debt, particularly student loan debt.
As Tamara Lewin reported in an April...
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April 15, 2011
Misunderstandings, Unrealistic Expectations, Unintended ConsequencesThe headline and accompanying photo in the February 19-20, 2011, weekend edition of the Wall Street Journal was attention-getting. As a North Carolina couple stared vacantly across a field at sunset, the above-the-fold headline declared:
Retiring Boomers Find 401(k) Plans Fall Short.
WSJ reporter Jason Henry led off his article...
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March 3, 2011
Some changes in the reverse mortgage market may make it easier for seniors to access their home equity, but they also protect lenders from declining values in the real estate market.
A reverse mortgage allows people age 62 or older to convert equity in their home to cash, in the form of a lump sum, a line of credit or monthly distributions. Borrowers using a reverse mortgage do not have to make...
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