Money Won’t Buy Happiness

I see people who are unhappy, even miserable because they spend most of their time comparing themselves to others.  It may be jealousy because their friend has a bigger house, makes more money, goes on better vacations, the list is endless.  Instead of being jealous, take a closer look at what is positive in your life.  Do you love your job and look forward to going in every day? If the answer is no, only you can make a change to turn that around.  Your husband or partner won’t, your kids can’t, your parents can’t.  Only you can.  When you find meaningful work, you tend to pay less attention to how much money other people have.  Remember wealth is not just about money. It is about good health, happiness, and a meaningful purpose in life. 

Note: Due to industry regulations on communication, we are unable to allow for public comments on this blog. Please feel free to email me your questions and/or comments to kathy@fishandassociates.com. Thank you.

Securities and Investment Advisory Services offered through NFP Securities, Inc., Member FINRA/SIPC. NFP Securities, Inc. is not affiliated with Fish & Associates.

From Bud to Blossom

“And the day came when the risk to remain tight in a bud was more painful than the risk it took to blossom.”

I am going to switch gears for the next few blogs and shift my attention from the external resources that are available to help live a more mindful focused financially secure life to some of the internal factors.

Many women rely on someone else for their financial security, their happiness, and the direction they take with their life.  Women often stay in relationships that are destructive or abusive because they don’t feel empowered to take control and make the changes necessary to live a meaningful life outside of a relationship.  It can be painful to think about how to make your own way, to make financial decisions, go back to work, enroll in school to learn a new skill or be employable, but death occurs and divorce happens. We must learn to deal with what life gives us.

Women have the same choices offered in this life that a man does.  She may not perceive it that way. She may think that because of a choice that was made early in life to marry or start a family, or exit a career - that she is now a victim of her choices or that it is too late to change.

Let me share an inspiring story….

Mary found herself divorced at age 49. She had raised three children, been out of the work force for almost 30 years, had never completed college, and found herself “suddenly single”.  Mary received half of the financial assets from her 30 plus year marriage, but it was not enough to live off of for the rest of her life.

This was a critical crossroad for Mary.  Would she become a “victim” of her own circumstances and spend her time wallowing in self pity or looking for another man to take care of her? Or would she use this energy in a positive way to “blossom”.  Mary went back to school and received her degree. She found a job that paid her well, offered good benefits and rewarding work.  She ultimately left at age 65 with a 401(K) and a substantial amount of assets that she invested for her future from the divorce settlement. She is now in her seventies living a comfortable, joyful and fulfilling life. She is a great example of the power we all posses to bring about change to transform our lives.

Mary made some difficult choices. She made the choice to invest her settlement rather than spend it. She chose to persevere through college, to earn her degree, and to be persistent in looking for employment as a 50 plus year old college graduate.  Her friends pitied her “misfortune “and unexpected divorce at a time in life when most people are entering a more comfortable period, personally and financially. Mary is an inspiring example of the resilience we all possess.

If you know someone in this position, please share this blog.  If you are in this position yourself, I hope this story inspires you. Referring back to the opening quote, do what comes naturally to a plant.  Use the energy and take the risk to transform from a tightly closed bud to blossom into a beautiful flower.

Note: Due to industry regulations on communication, we are unable to allow for public comments on this blog. Please feel free to email me your questions and/or comments to kathy@fishandassociates.com. Thank you.


Securities and Investment Advisory Services offered through NFP Securities, Inc., Member FINRA/SIPC. NFP Securities, Inc. is not affiliated with Fish & Associates.

Slow and Steady - Getting Started IRA 101

We discussed company sponsored retirement plans in my last blog.  If you are self employed or work for a company that doesn’t provide a retirement plan, don’t worry, you can set up an Individual Retirement Account (IRA) and receive some of the same tax savings.

If you are under the age of 50, and your employer doesn’t offer a plan, you can save up to $5,000 per year and deduct that payment from your income taxes.  What does that mean to you? If you are in the 25% tax bracket that could result in a tax savings of $1,250.  Your tax bill will be reduced by that amount.  If you are over 50 you can deduct up to $6,000 annually.  The deductibility of the contribution changes if your employer offers a plan. If your employer offers a plan,  please go back and read my last blog. Then go to your HR department and sign up as soon as you are eligible.

Another type of  IRA is called the Roth IRA.  Roth IRAs have been around since 1998. The contribution limits are the same, but a Roth does not allow a tax deduction.  Any growth on a regular or a Roth IRA is tax deferred.  Translation – no income taxes are due until you take money out.

The main difference between a Roth and a Regular IRA is at the time you are ready to take the money out after age 59 ½. The Roth proceeds are tax free (no taxes due) whereas the regular IRA distributions will be taxed in retirement. Roth’s can be both simple and extremely tax effective when compared with the many retirement accounts available.

Here are two great websites for details:  http://newirarules.com/
http://www.moneychimp.com/articles/rothira/rothintro.htm


Note: Due to industry regulations on communication, we are unable to allow for public comments on this blog. Please feel free to email me your questions and/or comments to kathy@fishandassociates.com. Thank you.

Securities and Investment Advisory Services offered through NFP Securities, Inc., Member FINRA/SIPC. NFP Securities, Inc. is not affiliated with Fish & Associates.

Taking Responsibility for Your Future

The art is not in making money, but in keeping it ~ Proverb

In yoga philosophy, there is a concept called Samskara. Loosely defined, Samskaras are behavior patterns that are repeated over and over and create a “groove” that sets people’s thoughts and reactions on auto-pilot. These mental and emotional patterns are difficult to break. A pattern is repeated so many times that a person may truly believe that the way things are cannot be changed.

I have witnessed this behavior over the years. A woman is convinced she can’t move forward because of something she has internalized. Examples include: I can’t save, I don’t make enough money, my spouse spends too much - the list goes on and on. I’d like to show you how to turn a negative pattern into a positive one. I talked about social security in my last blog and today I am going to discuss the first step in taking an active role in saving for your future. Stop creating self imposed limitations and decide to take action now to prepare for your future.

Let me introduce you to a very common long term savings plan called a 401(k). If you work for a company that employs more than one or two people, there is a high probability you have a salary reduction plan sponsored by your employer, which could be a 401(k) plan. In simple terms a 401(K) is a tool to save money for your future. Money is taken from your paycheck before tax via payroll deduction by your employer and sent to an investment company. Both the salary reduction and the potential earnings on the money you save will avoid taxes until you are ready to use the money in your future for supplemental income. Currently you can start making withdrawals after you turn 59 ½ without penalty.

Let me use an example to illustrate the concept. Let’s assume you currently are in the 28% income tax bracket and you want to save $1,000. If you take that money from your paycheck you will have $720 after tax to invest.(280 is 28% of 1000 dollars).

In order to save $1,000 after tax you would have to earn almost $1,400 dollars ($1,400 less 28%, $392 equals $1008). By having your employer take the money pre-tax, the full $1,000 goes to work for you. It is equivalent to the IRS giving you a tax free loan of $280 to put towards your retirement. Many employers provide a “match” or what I like to call free money. How does that work?

The plan I offer my employees offers a 4% match if the employee saves 5% of their salary. On a salary of $35,000, an investment of $1,750 will receive a $1,400 match from me, the employer. That represents an 80% return on your money before it is even invested. If that is not enough incentive to run to your employer and sign up, then go back and re-read this blog entirely. Even without a match from your employer, it is still a great way to put money to work for you that otherwise would be paid to the IRS. The savings depend on what your income tax rate is.

Jack Canfield said, “If you don’t like your outcomes, change your responses!” You must take 100% responsibility for your own life. In order to do this you have to stop making excuses and justifying why you do not participate in a program that can have such a positive influence on your future.

No 401(K) available at your job? Don’t fret. My next blog will discuss what’s available for individuals to save for their future.



Note: Due to industry regulations on communication, we are unable to allow for public comments on this blog. Please feel free to email me your questions and/or comments to kathy@fishandassociates.com. Thank you. Securities and Investment Advisory Services offered through NFP Securities, Inc., Member FINRA/SIPC. NFP Securities, Inc. is not affiliated with Fish & Associates.

“Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.” – Ayn Rand

Ayn Rand’s comment is about the importance of being in control of your money and your finances, rather than your money being in control of your life. We make choices about our life every day. You probably don’t get in your car without a destination in mind. You know where you are going, and you know you may have choices on which route to take. For instance, the most direct route may take a little longer than utilizing a short cut. How does this translate to money?

I’ve written several times about the importance of planning. The next few blogs are going to address the different sources and strategies for long term savings to start building a secure investment strategy for your future.

Let’s start with one of the most overlooked sources, Social Security. If you have done nothing up to this point, the fact that you or your partner or spouse has a job means you have already started planning for your future. For every dollar you earn, your employer is obligated to contribute 6.2 cents into a fund for your future income. For 2011, your employer deducts 4.2 cents from your paycheck and sends it into the social security administration on your behalf (this is scheduled to go back to 6.2 cents after 2011).

You might be thinking, “What is this really worth to me and my spouse?” Saving pennies on the dollar may not seem like much money, but let’s look at how this translates into real dollars for your future.

Let’s say social security estimates that you are eligible for a $1,200 per month benefit in future dollars and you can start collecting this benefit at age 62. You would need a lump sum of over $225,000 today to create that amount of income (source: immediateannuties.com). If you did not work outside the home you are entitled to ½ of this amount as a spousal benefit, which has a value of another $112,000. (These are approximates and should only be considered as an illustration based on the current interest rate, for educational purposes only). So a deduction of 6.2 cents by you and your employer can equal $1,800 a month for life!

If you are currently working, or you just got out of college and are ready to start your first job, you have to start a plan for your financial future. IMPORTANT POINT: Social Security is intended to SUPPLEMENT your own personal savings and investments. It was not intended to be the ONLY source.

The average social security benefit in 2012 is a bit over $1,200 per month (source:http://seattletimes.nwsource.com/html/businesstechnology/2016875243_burns04.html).

In future blogs we will talk about what you can do to save for your future. We will look at short- cuts that can help you save more money, and we will explore what investment tools are available to help you reach your goals. In general, women are planners and successful investors. They are educated on the how- to’s and the whys. My goal is to help take you down the path of feeling confident enough to start the journey to your own personal destination. You can take the lead and be the driver whether you are married or divorced, single or widowed. Let’s get behind the wheel!

Note: Due to industry regulations on communication, we are unable to allow for public comments on this blog. Please feel free to email me your questions and/or comments to kathy@fishandassociates.com. Thank you.
Securities and Investment Advisory Services offered through NFP Securities, Inc., Member FINRA/SIPC. NFP Securities, Inc. is not affiliated with Fish & Associates.

Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. – Charles Dickens

What was true in David Copperfield’s time still remains true today. If we spend more than we earn, the result is misery. Misery in the form of guilt, stress, lying, rationalization, denial, and the list goes on.

I have interviewed many people throughout my career as a financial planner, and I have come across different money personalities and philosophies. By far the most successful people financially and the most satisfied in their life overall have the money philosophy of not spending more than one earns. How simple a concept, but difficult in reality.

Our modern culture idealizes excess consumption, accumulation of “stuff” as being superior to meeting the basic needs of food, clothing, and shelter. It provides status to own designer labels, bigger houses, eat at expensive restaurants, own luxury cars, etc. This is not inherently “bad” if your income will support that lifestyle; and allows you the opportunity of not spending all you earn. Often that is not the case; people justify living beyond their means for varied reasons, most of which involve some form of rationalization.

I’ve met people over the years with high incomes, multiple mortgages, and expensive toys living paycheck to paycheck. On the other end of the spectrum I have met secretaries who saved 10 cents of every dollar they earned, who accumulated over a million dollars. I’ve met housewives who were in charge of the finances accumulating hundreds of thousands of dollars over time. The people who saved had less stress and more options as they approached “retirement.”

I am generalizing here, but it has been my observation that those who live beyond their means and accumulate “stuff” instead of saving money for a rainy day, lead a less balanced, more stressful life. They may be one paycheck away from a disaster.

This type of money personality has an attachment to money that prioritizes pleasure and enjoyment now over the potential misery that will be created by the loss of a job, a health crisis, or premature death.

If you are in a situation where you feel you are living beyond your means sit down by yourself or with your spouse/partner and ask these questions:

1. Are you using credit cards to buy groceries or other items you used to buy with cash?
2. Are you using savings to pay monthly bills you used to pay from checking or taking cash advances on your credit cards?
3. Are you spending more than 28% of income on your home mortgage?
4. Are you saving less than 5% of you income?
5. Is your credit score below 600? – If your score falls below 600 you are probably over your head.

Many people get in trouble during the holiday season by over-spending. These may be a warning signal that it is time to make some changes before your money situation gets out of hand.

In my years of yoga practice and teaching yoga, I have been taught and try to teach others to apply the principles of self-observation and the cultivation of balance in our life. It’s exploring where you need to be to be able to tell yourself, “I have enough,” rather than feeling victimized by the belief that “I’ll never have enough.”

We must take the time to really explore what is important to us and to our loved ones. And then set a plan in place to achieve what will make you feel confident and in charge of your future. This holiday season, instead of accumulating “stuff,” let’s accumulate experiences; a walk in the woods with your children, baking cookies together, helping out at a food pantry with your family. Once we truly know what is really important, we can find the balance in our money life as well.

Note: Due to industry regulations on communication, we are unable to allow for public comments on this blog. Please feel free to email me your questions and/or comments to kathy@fishandassociates.com. Thank you.

Securities and Investment Advisory Services offered through NFP Securities, Inc., Member FINRA/SIPC. NFP Securities, Inc. is not affiliated with Fish & Associates.

Life Insurance Is Not A Religion (and neither is yoga)

I have been a financial planner for over 20 years and a yoga teacher for 8. I have heard the statement “I don’t believe in life insurance” many times in my career and it always baffles me. Life insurance is not a religion; life insurance is a tool. Life insurance is an asset that provides an instant estate, upon death, if you have not had the time to accumulate an estate (translated estate = money in the bank which can become investments that can create an income stream if the breadwinner dies prematurely).

It is not a matter of “believing;" it is a matter of looking at your financial situation and determining if you could continue to live the way you live today if your spouse or partner is no longer here, or if you are a single parent with a child who depends on you, that your child could be adequately cared for.

If you or your spouse feels this way about insurance then you may not understand it. Let me tell you two stories. Many years ago, I met with a couple in which the husband was a television executive making a high six figure income. They had a nice house with a big mortgage and very little savings. His wife did not work outside the home and they had no children. When I recommended that they purchase life insurance to pay off the house and provide an income for his wife he told me, “I don’t believe in life insurance,” and referring to his wife “Sally” he stated that, “she could just move back in with her parents if something happened to me, they will take care of her”. Sally was in her late forties and just sat there not saying a word. I asked her if that was a solution she was comfortable with. She said no, but he wouldn’t budge. I often wonder what happened to that couple. I think it is very selfish and short sighted to not care enough for your spouse to make sure he or she is taken care of should a premature death occur. I encourage couples to talk this through and make an informed decision on how to insure for a loss like this. Too many people don’t think about planning for an unexpected death until it is too late.

I will share another story. One of my clients referred her sister and brother-in-law to me for some financial planning. Let’s call them John and Jane. John had retired early and he and Jane had not saved as much as they hoped to save for retirement, but with his pension they determined they could live comfortably. John had chosen the highest payout, a lifetime annuity with no survivor benefit (this decision was made prior to meeting me) because this provided a larger monthly benefit. Jane signed off on this option, but she did not understand that if he died, she would no longer receive any pension benefits at all, ZERO. She was upset, but relieved that there was a solution. I recommended a life insurance policy to replace the pension should John die prematurely. John applied for a policy, was approved, and when I went to deliver the life insurance policy he had changed his mind and no longer wanted to spend the money. It was “too expensive”. I tried to talk to him about the ramifications of this decision, and I encouraged him to come back in along with his wife Jane to discuss what I felt was a poor decision. He refused and said it was a joint decision between him and Jane. About a month later, John was killed in a motorcycle accident. Jane and her sister contacted me to see if there was anything she could do since the insurance had been approved so recently. They had done some research and knew about the free look period an insurance policy provides, but since Jane and her husband had refused the policy, nothing could be done. I felt horrible, but I could not take responsibility for the decision they made. I ended up losing the sister as a client too.

Lesson here: Don’t let anyone else make decisions about your financial future without a full discussion of all the pros and cons as well as looking at the worst case scenarios. These “beliefs” may be completely misguided and could have a negative impact on your life. One thing I have learned from my yoga practice is that we are responsible for our own well being. Sometimes you have to take charge and insist that these things be discussed so you and your family are cared for. Take the time and make the effort to insure that you can live your life the way you want to, no matter what happens.

Don’t stick your head in the sand and hope for the best. Take care of yourself today, as tomorrow is promised to no one.




The case studies are based on actual client situations but are meant for informational purposes only. The case studies are in no way intended to be used as a primary basis for insurance or investment decisions. Similar results are not guaranteed and will vary based the individual client situations. Clients should consult with their own financial, tax, legal, and accounting advisors before implementing any insurance or investment plan. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security or investment product.

Note: Due to industry regulations on communication, we are unable to allow for public comments on this blog. Please feel free to email me your questions and/or comments to kathy@fishandassociates.com. Thank you.

Securities and Investment Advisory Services offered through NFP Securities, Inc., Member FINRA/SIPC. NFP Securities, Inc. is not affiliated with Fish & Associates.