Rick Kahler's Financial Awakenings

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.

The relationship between politics and money matters. It can have a direct effect on how you operate a business, invest, manage your finances, and build financial security.

If you believe, as I do, that the U. S. is in a long-term trend toward wealth redistribution, it will be wise to pay attention to that trend as you manage your finances and your career. There are three primary areas to consider: protecting whatever wealth you already have, finding new ways to achieve success and build financial security, and doing what you can to influence government policies. Continue Reading »

If you’ve been lying awake at night wondering what is the one bit of financial advice I want the world to know, you can find out on Sunday.  I answer this question and a few more on KEVN’s Focus With Jack Caudill this Sunday, February 7th.

Also featured on the program are Dr. John Quinn, President of the Rapid City campus of NAU,  and Terry Mills from Consumer Credit Counseling Service.  The topics we discuss range from the psychology of money to what’s ailing the US economy.

You can watch the program on the local FOX channel, KEVN, at 9:30 pm on Sunday, just after the Superbowl.

Recently I’ve heard from a few readers that some of my columns are too political. Yes, I sometimes discuss politics, because political issues and governmental actions have a direct impact on our personal finances.

One of The American Heritage Dictionary’s definitions of “political” is “relating to or dealing with the structure or affairs of government.” A fundamental power of our federal government has to do with money: creating it, regulating its value and its cost (interest rates), and, of course, taxation. Continue Reading »