Quotes about Money from Famous People

by Steve Scott

People love quotes from celebrities. Sometimes those quotes are brilliant and sometimes they are amusing.  And sometimes they are neither…  Here is a small collection of some of the best sayings by politicians, entertainers, and philosophers on the subject of money.

“Early to bed, early to rise, keeps you healthy, wealthy and wise.” – Benjamin Franklin

“For I don’t care too much for money, for money can’t buy me love.” – The Beatles

“Money is like a sixth sense – and you can’t make use of the other five without it.” – William Somerset Maugham

The glow of one warm thought is to me worth more than money.” – Thomas Jefferson

“Time is more valuable than money. You can get more money, but you cannot get more time.” – Jim Rohn

“Money, if it does not bring you happiness, will at least help you be miserable in comfort.” – Helen Gurley Brown

“Money is better than poverty, if only for financial reasons.” – Woody Allen

“Money is not the most important thing in the world. Love is. Fortunately, I love money.” – Jackie Mason

“What difference does it make how much you have? What you do not have amounts to much more.” – Seneca

“If you want to know what God thinks about money, just look at the people He gives it to.” – Dorothy Parker

“It doesn’t matter if you’re black or white… The only color that really matters is green.” – “The Family Guy”

“Money is the opposite of the weather. Nobody talks about it, but everybody does something about it.” – Rebecca Johnson

“Lack of money is the root of all evil.” – George Bernard Shaw

“The safest way to double your money is to fold it over and put it in your pocket.” – Kin Hubbard

“The chief value of money lies in the fact that one lives in a world in which it is overestimated.” – H. L. Mencken

“You use your money to buy privacy because during most of your life you aren’t allowed to be normal.” – Johnny Depp

“It is pretty hard to tell what does bring happiness; poverty and wealth have both failed.” – Kin Hubbard

“A bank is a place that will lend you money if you can prove that you don’t need it.” – Bob Hope

“Dogs have no money. Isn’t that amazing?  They’re broke their entire lives.  But they get through.  You know why dogs have no money?  No Pockets.” – Jerry Seinfeld

“Money is the best deodorant.” – Elizabeth Taylor

“Money frees you from doing things you dislike. Since I dislike doing nearly everything, money is handy.” – Groucho Marx

Steve Scott is a Senior Financial Advisor with Manchester Financial, an Investment Counsel/Wealth Management firm located in Westlake Village. For more information call 805-495-4405.

This material is provided for general and educational purposes only, and is not legal, tax or investment advice. For each strategy or option mentioned, there are detailed tax rules that must be followed.

Money Management Tips for Millennials

by Seth Catanese

Time is on our side: When it comes to saving and investing, the biggest advantage millennials have is time. This allows for a much longer period of growth and wealth accumulation. The earlier you begin to save and invest, the greater your interest will compound. Compound interest is a powerful attribute of investing which results from earning interest on prior interest. Albert Einstein is often quoted as saying, “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”

It is at this point my friends often say, “Sounds good, but I have no extra money to save.” As millennials, we have a lot on our plates – student loans, high rent, credit card debt, and a higher cost of living.  It seems nearly impossible to find a way to save! However, common employer benefits, tax-sheltered accounts, and new technologies have made it easier than ever to make saving a conscious habit. The most important part is to just get started.

Take advantage of employer-sponsored retirement plans: Many companies offer employer-sponsored retirement plans. 401(k)s and Roth 401(k)s are two examples. These plans often include an employer match up to a certain percentage of your contribution. Saving the maximum amount of matching available ensures you get the most out of your benefits and is a great financial habit to develop. In short, not taking advantage of an employer match is essentially throwing free money out the window. Also, if you ever leave the company you can take your plan with you to your new employer’s retirement plan or roll it over into an IRA.

Make small savings a habit: Start by tracking your monthly expenses (food, clothes, gas, etc.) and look for areas where you can cut back (premium coffees, lunch, Uber, etc.). You will still be making the same salary, but your expenses will have dropped. Then open a linked savings account and transfer the small amounts of money you were spending to this account. There are many apps to help with this concept of consistent, small savings. Most are free to download and will help you find areas to budget more efficiently and to automatically transfer savings to a separate account.

Open a tax-advantaged account: Once you have the habit of saving down, open a tax-advantageous savings account like a Roth IRA or Traditional IRA. A Roth IRA allows you to make after-tax contributions with the benefit of tax-free withdrawals after age 59 ½.  A Traditional IRA allows you to receive tax deductions and tax-deferred growth until your retirement years. Both accounts offer many benefits and can be great vehicles for retirement saving.

Seth Catanese is an Assistant Financial Advisor Manchester Financial, an Investment Counsel/Wealth Management firm located in Westlake Village. For more information call 800-492-1107.

This material is provided for general and educational purposes only, and is not legal, tax or investment advice. For each strategy or option mentioned, there are detailed tax rules that must be followed.

Estate Planning for College Students

by Jennifer Caruso

Senior year of high school can be quite overwhelming: college applications, final tours, winter formal, senior pictures, prom, graduation… It’s endless!  Once your child graduates, there is a short lull before the next major milestone – the day they move to college.  In the midst of the shopping and dorm room decoration, it’s highly likely you forgot something crucial – your child’s estate plan.  Wait, what?  Yes.  Your 18-year old needs a starter estate plan!

You may not be aware that once your child becomes a legal adult (at age 18), you are excluded from making important medical decisions for him or her. You no longer have the right to obtain basic information about their health or to make decisions about their medical care.  As the parent of two college students, I was alarmed when I first learned this.

There are three health documents which are essential for your son or daughter to sign when they turn 18 (or as soon as possible thereafter):

HIPAA Release

The 1996 Health Insurance Portability and Accountability Act (HIPAA) safeguards your child’s medical and dental records and protects their privacy. This is a good thing!  The problem is it also prevents you from accessing their medical records.  There is a simple, free fix for this.  Your child’s primary care physician and dentist can provide him or her with a HIPAA Release form.  This form allows your child to designate who they allow to obtain their medical records in the event of an emergency.   As your child ages, they can change or remove this designation.

Advanced Health Care Directive

The Living Will and Medical Power Of Attorney documents, when used together, are called an Advanced Heath Care Directive.

A Living Will is your child’s statement of decision. It tells doctors whether or not they want life-supporting measures stopped if there is no hope of recovery.  At the very least, this is a conversation you should have with your child.

The Medical POA allows your child to appoint you, or another family member or adult, to make healthcare decisions on their behalf should they be unable to. It is the most crucial document you need for your child.  When we think of a Medical POA we often think of physical incapacity – a car accident, a sports injury, a fraternity party gone wrong.  However, it more common for college-aged students and their families to deal with mental incapacity.  Mental illness is a topic no one wants to broach, but it is a very serious problem.  The National Alliance on Mental Health found that one in every five young adults under the age of 24 live with a mental health condition.  Even a mild mental illness can incapacitate your child from making good healthcare decisions.  It is important for you to be able to make these decisions for them while they are in school.

I cannot stress how important this document is, especially if you are divorced or separated from your child’s other parent. If the two of you cannot agree on healthcare measures, your child’s healthcare will be significantly delayed while you duke it out in court.  Ultimately, the State will be responsible for making this decision for you.  Avoid this at all costs!

Durable Power of Attorney

For those who want to remain actively involved in your child’s financial life while they are in college, there is a fourth document worth mentioning. Instead of having a joint bank account (control your adult child may no longer want), consider a Durable Power of Attorney.  A Durable POA is a simple way to allow you to manage your child’s finances in the event of an emergency.  It does not give you blanket permissions.  Instead, it itemizes specific powers given to you by your child in the event he or she becomes physically or mentally incapacitated.  It allows you to legally handle their financial affairs (pay bills, file taxes, make bank transactions, etc.) while they are temporarily incapacitated so their credit standing does not suffer.

Ideally, a trusted estate attorney should draft these documents for you. This person will guide you throughout the years as you and your family’s needs change.  A starter estate plan will cost significantly less than a full estate plan and the peace of mind is well worth the price.  However, if you have budget constraints, there are reputable online document services.  Firms like LegalZoom.com also offer access to third party phone attorneys who you can speak with.  Keep in mind that these companies are online document services only; they are not actual estate attorneys.  In most cases, their documents – once notarized – should suffice and hold up in court.  Just be sure to have the documents reviewed or re-drafted every two to three years by an estate attorney.

Jennifer Caruso is an Associate Financial Planner Manchester Financial, an Investment Counsel/Wealth Management firm located in Westlake Village. For more information call 800-492-1107.

This material is provided for general and educational purposes only, and is not legal, tax or investment advice. For each strategy or option mentioned, there are detailed tax rules that must be followed.