If A Significant Other Isn’t Truthful About Finances

photo-1443130128240-22fb98ca70a4Many of us are well aware of the emotional strain caused by infidelity in a relationship, but not as many are aware of the emotional strain caused by financial infidelity. However, this seems to be a growing problem in the United States. The National Foundation for Financial Education® (NEFE®) conducted a poll in early 2016, digging into the details of the presence of financial infidelity in households across the nation. “Among U.S. adults, 42 percent admit to financial infidelity compared to 33 percent just two years ago. The survey also finds that when financial deceptions occur, 75 percent say there is an effect on the relationship.” (Source)

You may be asking yourself, “What exactly qualifies as financial infidelity?” Financial infidelity has been defined as “…the secretive act of spending money, possessing credit and credit cards, holding secret accounts or stashes of money, borrowing money, or otherwise incurring debt unknown or unwilling to one’s spouse, partner, or significant other. Financial infidelity in a relationship may also include any financial decision(s) made by a partner that may effect, burden, strain or set back the financial planning of the relationship.” (Source)

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Why are you fee-only and what does that mean?

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Why are you fee-only and what does that mean?

We are often asked about our decision to be a fee-only financial planning firm. The term ‘fee’ occasionally throws people off, and we thought we should share about our decision and how it benefits our clients.

When we started the firm in 1990, we made the decision that we didn’t want to be bound to commissions. We wanted the freedom to make decisions based on the unique needs and goals of our clients. In short, we decided to be fee-only before fee-only was cool.

At the most basic level, fee-only simply means we are compensated solely by our clients, not by commission. As fee-only planners, we don’t earn commission from sales and we do not sell our clients products. Instead, we are required to act in the best interest of our clients — an important distinction.

At SH&J, we are paid by a percentage of the money under our management, and a flat fee for financial planning. In essence, our clients pay for our advice and our responsible investment management.

As fee-only planners, we are also proud members of NAPFA, the National Association of Personal Finance Advisors. You can read more about NAPFA standards here. We think the Wall Street Journal summarized their standards and fee-only planners well when they said, “They accept no commissions at all and pledge to act in their clients’ best interests at all times. In many respects, NAPFA standards meet or surpass the requirements needed for a CFP credential,” source.

We’d love to meet with you to talk more about our firm and discuss how we can partner together to help you plan, invest and succeed. Contact us today >