Archive for Personal Finance

Moving on From Relationships

As I slide ever more deeply into middle age, I can look back on many relationships that I thought would last forever, and for some reason did not.  Moving on made me feel guilty, strange, or sad.


To my hairdresser, Bill: I thought you were the only person who could ever cut my insanely curly hair.  For 10 years, I would drive over an hour to have you expertly shear my sheep-like mop.  But, every time you got to talking about your adult children, my hair would get shorter and shorter until I was nearly bald.  So, I had to embark on the most painful journey most women ever face:  finding a new hairdresser.  It took about 15 years, but the search was worth it.  Marissa, don’t ever leave me or retire!


We have friends with whom it is harder to keep up a conversation.  Co-workers with whom, as it turned out, the only thing we had in common was that boss we all hated.  Therapists who were good for one issue, but not as helpful for others.


Then, there are our professional advisers:  Accountants, attorneys, financial advisers.  We all like to think clients will never leave us, but maybe there is a time that the relationships must change.  Here are the life events that might cause you to re-think your professional advisory relationships:



Rarely does someone want to stay with the same financial advisers as their ex-spouse (although some do!).  That’s okay!  Part of the metamorphosis into a single person may involve finding that fit that is just for you, not just someone your ex loved and you tolerated.



Some financial advisers are great at helping you build a nest egg, but not as skilled at helping you spend it.


Starting a business

Here is where you want an accountant with real expertise.  Not someone who just files taxes, but someone who can advise on business structure (LLC or S Corp?), reasonable business write-offs, and retirement savings options.


Death of a spouse

Here, you will need guidance from a variety of people.  At a minimum, your estate plan will need to be re-done.  Is your old attorney even still in business? Is it time for a fresh look at your investment strategy?  Your life is in upheaval, but don’t let the long term planning languish for too long.


Don’t stay in a professional relationship because of a sense of guilt or misplaced loyalty.  Although advisors love our clients, we understand when they need to move on for one reason or another.  After all, that’s how we get new clients!

What in the Hail is Happening to My Insurance Rates?

I am so happy to welcome guest writer and friend Julie Sequeira.  Julie is property and casualty insurance agent/expert with American Family Insurance.  Because home and auto insurance is one of our largest household expenses, I wanted a little more insight into rates and how we can be better insurance consumers.  Take it away, Julie!


Kristi:  What can we expect for car and home insurance rates this year?


Julie:  I think you can likely expect an increase on the low side of 10% and more realistically 20% base rate increase – that means that if you have had an accident, traffic ticket or claim your renewal rate increase will be higher than that. For the foreseeable future rates will continue to rise in Colorado. With rising rates you will see new offerings in deductibles and limited coverage for wind/hail claims.


KS:  Why will my rates go up in Denver if the hail was in Lakewood?


JS:  Rates are driven mostly by claims history in our geographic state and certainly the metro area is considered one area for things like hail because it is so pervasive in this area. An exception might be the western slope in Colorado where they don’t have hail storms. And insurance is collective risk – so yes, we all pay higher rates when more people file claims.


KS:  What tips do you have to make sure clients are getting the most complete insurance coverage?


JS:  Talking with your agent is usually the best way to get the most complete coverage because you give them information that you don’t realize is insurance related during conversations. For example, you might say, “we really love eating breakfast outside on our new larger deck.” A good agent will then ask you questions about the deck and potentially other home improvements that may require increasing some coverages.


Be honest with your agent because then you will understand your coverage limitations and be able to choose options for coverages that you need but if you don’t tell then it is hard to make sure you are covered correctly. Additionally, bundling really does help because then the agent looks at your account holistically so that you have few gaps in coverage.


KS:  Thank you, Julie for your expertise!  For more information or to contact Julie, see her bio below.


Julie Sequira


Julie Sequeira has been in the insurance industry since 1998 and has run her own agency since 2004. She works to provide the most comprehensive coverage with the best premium for her clients. She seeks to help people keep their assets and sanity during difficult times.  For more information, visit


Costco – Love it or hate it? Two financial advisors battle it out!

For your entertainment, I have brought into the fighting ring two financial advisors, Rebecca Kennedy and Addie McHale, to duke it out over whether a Costco membership is a good or bad financial move.  Hold onto your hats, readers!  This could get messy!


This week we hear from Costco Non-Believer, Rebecca Kennedy, CFP ®.


Kristi:  When did you get your first Costco membership?  Why?  How long did you have it?


Rebecca Kennedy:  My first membership was a wedding gift that we received almost exactly 10 years ago.  We had it for one year because that was the length of the membership.  We let it expire because we just didn’t go much. We tend to join every few years for one reason or other, mainly because our memories are short.


KS:  What did you love about your membership?  What did you hate about it?


RK:  Shopping at Costco is truly an experience.  It’s laid-out with fun, eye-catching products that are sure to enhance your life in some form or fashion – at least temporarily, like all things.   What I dislike about Costco, in addition to the crowds and how much time a shopping trip can take, is that it’s FAR too easy to walk out having spent hundreds of dollars on debatable “needs.”


KS: Can you quantify or just anecdotally say why you think a membership is a good/bad financial move?


RK:  I think membership is a bad financial move for most people, though I can’t unequivocally say it is for all.  I consider myself a fairly disciplined person, though definitely not as disciplined as Addie, and I have trouble making rational purchases at Costco.  Inevitably, I walk out having spent more than was ever intended and purchased things that were not on my shopping list.


Not everything sold at Costco is even that good a deal, especially when you factor in the time value of money spent upfront on an item that could take months to consume.  It’s even less of a good deal if some portion of your purchases aren’t fully consumed and eventually get thrown out or perish before their “use by” date.     Case in point, I still have four frozen veggie burgers in my freezer from the 16-count bulk pack purchased months ago.  They were a decent deal, and I thought they would make weeknight dinners easier.  But you know what?  I’m sick of veggie burgers.


And what about the value of your time making trips to multiple stores?  Costco doesn’t carry everything on my shopping list so that means at least one other trip. All of these things, in my opinion, argue against a Costco membership as a good financial move.


Rebecca Kennedy


Rebecca Kennedy, CFP ® is the Principal of Kennedy Financial Planning, a fee-only Registered Investment Advisor based in Denver, Colorado.  She does hourly and project-based financial planning and investment advising for a wide range of clients.  She is a member of the Garrett Planning Network, NAPFA, and the Colorado Financial Planning Association, and has over 19 years of experience in the financial services industry.


Mid-Year Financial Check-Up: 4 things you should think about now

financial check-up

It’s July already????


Yikes, 2017 has gone by quickly!  Time to do a financial check-up on those New Year’s Resolutions to see how you are doing.  I don’t know what your resolutions were, so here are a few common ones that there is still time to tackle.  BEFORE you are making your resolutions for 2018, that is.




  1. Starting a 529 plan for your kids’ college. It doesn’t have to be much.  Just $50 to start and $25/month can get you going in a Colorado Direct Investment portfolio managed by Vanguard.



  1. Increasing your 401(k) contribution at least 1% from last year. Most plans let you go online and change your savings amount any time during the year.  Don’t delay!  Save more today!

Health Benefits


  1. Use your Flexible Benefits Account money. Did you set aside pre-tax money this year to finally get those glasses, map those moles, fix that tooth, or other medical procedures you’ve been putting off?  That money has to be spent by year-end, so get those appointments made!



  1. Use an app to see how much you are really spending on…clothes, liquor, lunches out, fishing gear, workout clothes, kids’ sports, whatever! Try,, for free and easy ways to track spending.


Okay, that’s enough for now.  If you do even two of those four items before the Fourth of July fireworks, I’ll consider it a victory.

Reverse Mortgage – Not a Dirty Phrase Anymore

reverse mortgage

The Reverse Mortgage


Chances are high that when I mention the idea of a reverse mortgage to clients, I’ll be met with a very sour expression.  I think this is because of the impression that these instruments are expensive and that you give up ownership of your home to use them.


Now, I am NO expert in these products, but for clients who have most of their net worth tied up in their homes, finding a way to use that equity to pay bills is a must.


Brainiacs who are way smarter than me have been modelling the use of a reverse mortgage in the overall retirement plan.  The numbers show that using home equity for income, especially when retirement investments are down, can lengthen the time your nest egg will last.


What are the benefits?


Wade Pfau has been doing research on the use of reverse mortgages in retirement income plans says there are two big benefits:


  1. Using reverse mortgage early in retirement can reduce the stress of market volatility on the invested portfolio by allowing people to live off of their home equity rather than selling investments when values are down to pay bills.
  2. The second benefit is that opening a reverse mortgage now (especially with current low interest rates) can allow for the principal that you can borrow against to grow for a longer time.

Who qualifies?


Not everyone can get a reverse mortgage.  You must be at least 62 years old, live in an “eligible” home, and there is a limit to how much debt can be against the home.


I’m not saying this is for everyone. Reverse mortgages are more expensive than conventional loans and they may tempt you to spend your home equity on dumb stuff instead of using it prudently.  However, if you are feeling your retirement income is too tight and you meet the eligibility requirements, it could be worth investigating.


Check out more from Wade Pfau in this Forbes article.  There is also a link to his website at the bottom of the piece.

Love and Money – What Can Possibly Go Wrong?

love and money

Counseling Center of Cherry CreekThis week, I am thrilled to get the expertise of Jenny Glick to talk about love and money.  Jenny Glick, MA, MSC, LMFT is a licensed marriage and family therapist, sex therapist and owner of the Counseling Center of Cherry Creek. She and her team of therapists focus on working with couples and individuals looking to improve the relationships in their lives. Visit the team at


With Valentine’s Day upon us, many couples feel pressure to show love by purchasing gifts.  What is a better alternative to showing your love to your partner?

I often to say couples that the definition of love is to “attend to.”  We love our children so we attend to their various needs — whether that is health, education, or sports activities. We love the idea of retiring so we attend to our retirement accounts on a regular basis by investing a limit bit regularly over a long period of time. Similarly, with one’s spouse simply paying attention and investing on a regular basis goes a very long way.


I cannot tell you how many times I’ve sat in a room with a couple and the wife says that she has felt ignored by her spouse and all that she wants is for her husband to notice her or help with the dishes. The husband (as cliche as it may sound) will often say in earnest, “I know that I have heard you say that before but I didn’t really know what you meant.”


And truly…he didn’t know what she meant because he was not attending to her…really paying attention to her needs.  Practice listening to your partner and really hearing how you can attend to him or her better.


When couples argue about money, what is commonly at the root of that fight?

When couples argue about money it is usually because they have not mastered an important developmental skill in marriage called differentiation. Simply put: differentiating is tolerating (and even supporting) your partner’s difference.


She wants A. He wants B.  She tries to get him to see how B is wrong and A is better.  He feels hurt and angry and she is criticizing B (and hence criticizing him) and puts down A.  She feels unsupported (“like always!”).  He feels rejected (“just like in the bedroom!”).  You may be familiar with how this ends.


Rarely is a money argument about money. You and your partner need to level up your skills to learn to be curious about your different rather than attack your differences.


What are some tips for couples looking to engage in a therapist?  What should they be looking for? 


First and foremost, always ask your potential therapist what percentage of their clientele are couples. Those of us who specialize in this work see at least 60% couples. That means that we have lots of experience and training in helping couples with things like communication, intimacy, and co-parenting.


Secondly, it is important to find someone who gets you — someone who speaks your language. Every therapist is different and personality matters so take the time to shop around and find a strong match. You are investing in one of the most important relationships of your life…your marriage!


Thanks to Jenny for this fabulous insight!  Here’s hoping your Valentine’s day is one of attending to your relationships, not adding to your credit card balance.

Do You Know When You’re Going to Die?


How long will your savings last?


What an uplifting question!


But in retirement planning, it is probably the MOST IMPORTANT question and the most impossible to answer.  If we all knew how long our savings would need to last, it would be so easy to determine how much we could afford to spend during retirement, what age to retire, how much risk to take for growth, and on and on.


Just for fun (I know, an odd idea of fun), I went onto a website I’d heard about for years.  It’s called The Death Clock ( and by filling out just a few fields, I got my exact date of death.  I’m reluctant to tell you in a public forum because then thieves will know when my funeral will be and take the opportunity to rob my house.


Oh, what the heck! I’m not using that stuff anymore so let them have it.  My estimated date of death is September 30, 2073.  Wow.  Those would have to be some old thieves, too, so I guess my house is safe.

Here are a few areas of perspective this gave me:


  • That is age 101. I hope I don’t look a day over 80.
  • At today’s standard retirement age of 65, I’ll need my savings to support me for 36 years. Sounds like a reason to work until at least 70.
  • If my sons have kids by age 30 and their kids have kids by age 30, I’ll live to see my first great-grandchild enter his pre-teen years.
  • If my husband lives as long as I do (and he has 3 living grandparents, so why wouldn’t he) we will be married for 77 years.


And the last item of perspective I will share is this:  If I make on average 2 major decisions per week (where to send my kid to middle school, how to invest my savings) and 50 small ones (what to wear to a meeting, what to cook for dinner, People Magazine or Us Weekly), I will make over 154,000 decisions between now and my appointment with Mr. Reaper.  Some will be good, some not so great, but since I have until 2073 to see the ultimate results, I think I’ll try to chill out a little.

How’s That New Gym Membership Working Out?

gym membership

According to a survey of 5,000 people by GoBankingRates in 2016 the top five New Year’s Resolutions were:


  1. Enjoy Life to the Fullest
  2. Live a Healthier Lifestyle
  3. Lose Weight
  4. Spend more time with family and friends
  5. Spend less, save more


In order to achieve Resolutions 2 and 3, many people joined a new gym in January.  Unfortunately, that may not be the way to realize Resolution #5.  Some interesting statistics from


  • Average cost of a gym membership: $58/month
  • Amount of gym membership money that goes to waste from underutilization: $39/month
  • Percent of people with gym memberships that never use them: 67%


Okay, so 43% of us are hitting the gym regularly/sporadically.  Great!  Enjoy your group sweat.


For those of you who are flushing $58/month down the drain, consider an investment in some modest home gym equipment would save you money and actually get used.  After all, you don’t have to bundle up and drive on snowy roads to go to your basement and work out.  Bonus, you can pick whatever music or TV you like to enjoy while pushing around the weights.


I never thought I’d be using a website called as a source for my blogs, but here is a nice list of small, inexpensive home exercise equipment.  Thanks, Men!


  • Adjustable Dumbbells – starting at around $130 on Amazon
  • Stretching Mat with Exercise Guide – $30
  • Jump Rope – $7 – $20
  • Resistance Bands – $15 – $30
  • Core Training Wheels – $40
  • Exercise Ball with Guide – $25


Happy sweating!

Social Security and Numbers to Know in 2017

Social Security

Sorry, this is not like a fortune cookie where I reveal your lucky numbers (“Confucius says buy stocks on days 14, 28, 200, and 360 of the year.”).  Rather, here is a quick update on new retirement savings limits and other info you can use when planning your financial year.*  You are doing that right now, aren’t you?


Social Security Cost of Living Adjustment:  A whopping .3%. That’s $5 to the average Social Security recipient.


Social Security tax for high earners:  The amount you earn before Social Security tax stops being deducted from your paycheck goes up to $127,200.  It was $118,500 in 2016.


Higher earnings allowed for Traditional IRA deductions:  If you have a 401(k) at work, you cannot deduct your IRA contribution if you make above $72,000 in 2017 ($119,000 for married couples).  If you don’t have your own 401(k) but are married to someone who does, the earnings limit is $196,000.  If you don’t have access to a workplace retirement plan, there is no limit to how much you earn and still be able to deduct your traditional IRA contribution.


Higher Roth IRA earnings limit:  The maximum amount you can earn and still contribute to a Roth IRA is going up $1,000 ($2,000 for couples) to $133,000 and $196,000 respectively.  Note there are phase outs to the earnings limits for both IRAs and Roth IRAs, but that’s too many words for  this blog.


Last, if you are taking Social Security before your full retirement age, the amount of earned income you can have before having 50% of your benefit withheld for 2017 has gone up to $16,920.


All contribution limits to 401(k)s and other retirement programs have stayed the same at $18,000 plus $6,000 catch up for those 50 and older.  IRA contribution limits also remain the same at $5,000 with a $1,000 catch up for those 50 and older.


There you are, Savers!  Now go forth and make good financial decisions!



Kristi’s Quotes: 15 Signs You Need a Financial Planner

Financial Planner

Financial planning is the process by which a person or family works with a financial professional to set goals, financial and otherwise, and to develop a plan for meeting them. A Certified Financial Planner™ (CFP®) is trained to develop a plan to serve as that map or GPS. And the CFP designation means they must adhere to a code of ethics and a fiduciary standard that require them to put their clients’ best interests first. To find a CFP® in your area, visit the Financial Planning Association’s national database at

Whatever you’re financial circumstances, it’s probably a good idea for you to consider working with a financial planner if…

The stock market’s volatility sends you into an extreme state of agitation. This “may mean that you don’t have a real plan for your investments and just pick stuff at random to buy,” says Kristi C. Sullivan….


Click here for more….


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