Rick Kahler's Financial Awakenings

I thought it would be interesting to take a look back at what I was posting at this time one year ago today, which turned out to be the S&P 500 and the Dow stock market indexes bottomed.  Of course, no one had anyway of knowing that then! On March 10th I posted a link to an article in Kiplinger, “Time to Say Goodbye to the Bear?”  In hindsight, indeed it was.

On March 12th I hosted a “Town Hall Meeting” in our offices which was also available to clients by phone and on the web.  In that webinar I urged clients to hold the course and gave a plethora of statistics about past market crashes and the ensuing rebounds.

In my follow up posting to that meeting on March 17th,  I said, “This was probably the most important teleclass we’ve ever done. Every KFG client needs to hear this information. We urgeyou to watch this teleclass if you have any financial or economic concerns and especially before your next review.”  How correct that information turned out to be! 

Of course, this South Dakota financal planner was not a  lone voice in this regard.  Many of my financial planning peers where chanting the same mantra to their clients. 

As it turned out, many investors who heeded this advice and held the course saw positive returns in 2009 which almost equaled their negative returns of 2009.  Investors who sold equities in March of last year locked in their losses and missed one of the greatest recoveries in history.  I had more to say about that in my February 15th post, “Not A Lost Decade, But A Bumpy Ride.”

What a difference a year makes. A happy birthday it is indeed!

How bored can you get waiting for your flight at an airport? Bored enough to think it’s a good idea to let someone stick a needle in your arm.

No, I didn’t get a tattoo, just a flu shot. The inoculation business was a little slow right then, so I had time for a conversation with the young man giving the shots. When he found out I was a financial planner he said, “I am just graduating with my nursing degree. What do I need to do to take care of myself financially?”

I didn’t shut up for 15 minutes, and he took down every point.

Here is some of what I told him, plus a few things I thought of after I had to leave to board my flight:

Continue Reading »

The past few months I’ve pondered the effect of the most recent financial and political events and how they will impact a person’s portfolio for the next decade.  The question I’ve attempted to answer in light of the soaring sovereign debt and global instability is, “What does a portfolio need to look like going forward to produce sufficient returns?” Continue Reading »

One of the major functions of life insurance might be more accurately described as “income insurance.” It provides funds that replace the earning power of the deceased.

Parents with young children and not a lot of financial resources probably have the greatest need for life insurance. It is just as important for a stay-at-home parent as it is for a wage earner. My rule of thumb if you have children is that you should have a minimum of $500,000 to $1,000,000 of life insurance. Continue Reading »

I just returned from attending and presenting at the Technology Tools for Today conference in San Diego.  The conference is one of the best in the profession for helping advisors like me keep abreast of the dynamic world of technology.

One of the best features of the conference is the ability to talk directly to the decision makers of software companies I rely on.  This makes it easy to give them suggestions on software improvements and bounce between two of them to resolve interface issues.

I won’t bore you with a complete write-up of the conference, but Russell Dunkin has a great one on his blog if you want to check it out.

Financial consultant Rick Kahler says there are still many good reasons to stay away from credit cards.

Kahler says, “I’m a great advocate of not using credit cards, especially for anything consumer related. The best use of a credit card is to pay if off every month. And I recommend to people, when you hit that first month when you can’t pay it off, you cut up the card.”

Card companies now have to give 45 days notice before raising interest rates, but they can close your account or lower your credit limit at any time and for any reason without telling you.

Watch Rick’s complete interview with KEVN Black Hills FOX here.

“It isn’t how much money you make that matters; it’s how much you get to keep.”

Recent years have shown most investors that an unfavorable stock market or global financial crisis can threaten their nest eggs. A potentially greater threat, however, is less obvious. Stock-market losses won’t ever wipe out a diversified portfolio. A lawsuit could. Continue Reading »

“During tough economic times, children can develop fearful money scripts that may keep them from managing money successfully as adults,” is what Rick told Mercedes Cordona in an interview for Parentdish.com.

He suggests a couple begin by getting a grip on their own financial panic before dumping on the kids.  That is easier said than done, as kids can tell when Mom and Dad are anxious and fighting about money easily.  Hiding it only makes things worse.

You can read the entire article here.

In story after story, the financial press proclaimed the first decade of this century an investment disaster, “a lost decade.” That was true if your investments were primarily in U.S. Stocks.

According to a Wall Street Journal report from December 22, 2009, since the end of 1999 stocks traded on the New York Stock Exchange have lost an average of 0.5% a year. The Depression years of the 1930s saw a 0.2% decline in stocks. That makes the last 10 years the worst calendar decade for stocks going back to the 1820s. The Journal quotes Michele Gambera, chief economist at Ibbotson Associates, as saying, “The last 10 years have been a nightmare, really poor,” for U.S. stocks. Continue Reading »

Most financial planners think they can do their own financial planning.  Ironically, so do most consumers. 

Just as most consumers would benefit from engaging a financial planner, so would most financial planners.  Lisa Shidler of InvestmentNews explores why most planners go it alone.  You can read the article here.