Archive for the ‘budget help’ Category

What’s your personal savings rate?

Thursday, July 22nd, 2010

Here’s how to calculate it:

Disposable Income = Personal Income - Personal Current Taxes

Personal Savings = Disposable Personal Income - Personal Outlays

Personal Savings Rate = (Personal Savings / Disposable Income) * 100

Note: Disposable Income includes things such as your rent, house payments, utilities, etc.   (Don’t confuse disposable income with discretionary income.)

Are people saving enough?

Here are some metrics.  In 1959, the average personal savings rate in the United States was 8.3%.   By 1975, it had risen to 14.6%.   It fell to 12.2% in 1981, attributable to the recession.   But it fell even more during the 1990’s, because of unbridled consumer confidence.  By year 2000, it was only 3.5%, and it’s 4% now in year 2010.

Are you saving enough?   That depends on when you want to retire, and what your objectives are.   See a fee only financial planner if you want an unbiased assessment.

Mike Dayoub is a fee-only planner in Alpharetta/Milton. 770 361-3139 website

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Open your mail yourself

Tuesday, August 11th, 2009

This is the best advice I can give the high net worth individual who uses a family advisor.   Don’t isolate yourself from your mail.  Open and sort the mail, and then let your assistant or advisor handle it.  View the bills.   You’ll have a much better chance of catching a problem.

I don’t market fear, but if you use a family advisor you should acquaint yourself with the advisor’s procedures for avoiding any possibility of fraud.  Those procedures should include (or explain why they don’t)

  • segregated duties (check signers should not be account reviewers, etc.)
  • complete financial reports.  readable and understandable and timely.
  • wire transfers only with your approval or a separate authority, not the person initiating the wire transfer
  • background checks for anyone in your family office
  • outsourcing to separate entities for bookkeeping, auditing, bill paying, etc.

Too many fingers spoils the pie, but a single financial manager handling all your bills and investments is a recipe for damaging acts.  I can help share some of that load and provide additional oversight and value.

Mike Dayoub is a financial planner in Milton/Alpharetta GA and is capable of working with a family office to provide guidance and oversight while keeping business transactions convenient for family members.

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Even the affluent can use a budget

Wednesday, April 29th, 2009

American Express has an annual poll of affluent consumers, and this year 78% agreed with the statement “I worry about running out of money”.

A budget would help alleviate a lot of the worry.  Not only will it tell you if you’re currently spending too much, it helps you see where you could cut back if you had to, for example if your earnings dropped.

Some affluent families have never formed a budget.  It’s a new idea for them.  I’m giving budget help to several Milton area families and they’re starting to understand the confidence it gives them about their financial future.

Give me a call if you need help getting started.  I can tailor my process outlined here, or give you enough pointers so you can get started on your own.

Mike Dayoub is a fee-only financial planner in Milton, GA. Website.

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Family Budget Help

Monday, March 30th, 2009

Don’t understand where your money is going? I only charge $100 for a one-day visit to help you and your family begin a budgeting process.  This is a good first step to starting a comprehensive financial plan.  The low price is because I’m trying to get to know more families in my area, so don’t expect this offer to last forever!

Process:

  • We’ll set up an accounting system (either on the computer or on paper, whatever’s easiest for you)
  • We’ll decide and prioritize your goals
  • After looking at where your money’s going, we’ll decide what changes need to be made to reach the goals
  • Track progress

Details

Mike Dayoub is a fee-only registered investment advisor and tax preparer in Milton, GA. Website.

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