By Benjamin Yeung | August 2016
In the first two parts of our series, we assumed that you had resolved to pay down some of your debt and were trying to come up with a strategy for doing so. In the introduction, we showed that having made that decision, the financial answer for the optimal strategy was relatively straightforward. In the second, we added the element of behavior, which significantly complicated the discussion.
By Benjamin Yeung | April 2016
The introductory part of this series covered how to determine the most efficient order to pay off loans. We identified some common reasons why the effective financial cost of a loan may not be accurately captured by its nominal interest rate and how to adjust for them. This time, we’ll tweak the situation so that we can highlight another important consideration in financial planning: behavior.
By Benjamin Yeung | March 2016
Financial advisors often get questions about how to manage debt. Does it make sense to pay off a mortgage? If you have many loans and want to start paying extra, which loan should get paid off first? Is it better to buy a car with cash or take out a loan? Is it a good time to refinance? There’s lots of advice out there about how to answer each of these questions, but what if you’re trying to decide between many different options?
By Benjamin Yeung | December 2015
It’s the holiday season, and that means giving is on the minds of many. For some, it’s an opportunity to give to their favorite causes while potentially gaining some tax benefits. However, the FAI team thought it might be fun to change gears a little and talk about gifting on a personal level. Many of us are struggling to come up with ideas for gifts to family and friends during this time of year. Upon hearing the story of a friend who distributed a list of charities in lieu of a traditional wedding registry, the team suggested an article on the younger generation’s perspective on gifts.
By Benjamin Yeung | August 2015
When looking for help from experts in the financial world, a common concern is how to choose who to trust. Financial professionals are governed by guidelines to ensure that they do not take advantage of their privileged position. These guidelines are codified under a “standard of care.”
There are two very distinct standards of care for financial professionals: the fiduciary standard and the suitability standard.