Byron Moore, CFP® and Mike Jones

personal finance

Price, Cost and Value

By Byron Moore, posted September 10, 2018
Originally published in the News-Star and the Shreveport Times on Sunday, September 9, 2018.
 

“How much?”houses_small.jpg

When considering the purchase of anything, that’s usually the first question we ask. Often, it’s the only question. 

That’s too bad. 

Most of the time, when someone asks, “How much?” they mean, “What is the price?”

That is a useful question, but it doesn't begin to give you enough information to skillfully make a significant purchase.  

Let’s say you want to buy a house. After a bit of looking around, you find two you like and are considering. So naturally, you ask, “How much?”

$100,000 for house A and $250,000 for house B.

Does the choice seem obvious to you at this point? It shouldn't, because all you know is the price. 

One seller obviously thinks his house is worth two and a half times more than the other guy. Maybe he’s right. Maybe he’s not. We won’t know until each house eventually sells. 

Price, Cost and Value

By Byron Moore, posted September 10, 2018
Originally published in the News-Star and the Shreveport Times on Sunday, September 9, 2018.
 

“How much?”houses_small.jpg

When considering the purchase of anything, that’s usually the first question we ask. Often, it’s the only question. 

That’s too bad. 

Most of the time, when someone asks, “How much?” they mean, “What is the price?”

That is a useful question, but it doesn't begin to give you enough information to skillfully make a significant purchase.  

Let’s say you want to buy a house. After a bit of looking around, you find two you like and are considering. So naturally, you ask, “How much?”

$100,000 for house A and $250,000 for house B.

Does the choice seem obvious to you at this point? It shouldn't, because all you know is the price. 

One seller obviously thinks his house is worth two and a half times more than the other guy. Maybe he’s right. Maybe he’s not. We won’t know until each house eventually sells. 

Aim for the Sweet Spot

By Byron Moore, posted September 5, 2018

The following segment first aired on KEDM 90.3.

When making a financial plan, make sure it is personal.

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Debt's Destructive Deceit

By Byron Moore, posted September 4, 2018
Originally published in the News-Star and the Shreveport Times on Sunday, September 2, 2018.
 

You knew debt was bad. bill shock_small.jpg

Maybe worse than you even thought.

But here’s the good news – the thing that makes debt worse than you thought can be the very thing that can make your situation better than you could imagine.

Most of us are familiar with interest rates. That’s what a lender charges a borrower for the privilege of using their money over a period of time. 

So a mortgage company charges a home buyer 4% to borrow money for 30 years to purchase a house. A car buyer may pay a bank 6% over 5 years to buy a car. A shopper pays a credit card company 18% to make consumer purchases. 

Other than the credit cards, most of those interest rates sound pretty low.

But now we need to consider another perspective on interest – interest volume. 

The volume of interest is the amount of interest charged during any specific interval of time. This is not the same as the rate of interest, as we’ll see.

Plan Like a Pessimist, Live Like an Optimist

By Byron Moore, posted August 29, 2018

The following segment first aired on KEDM 90.3.

In order to live optimistically, plan pessimistically.

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Plan Like You Are Dying

By Byron Moore, posted August 27, 2018
Originally published in the News-Star and the Shreveport Times on Sunday, August 26, 2018.
 

In my line of work, I talk to a lot of dying people.grave person mourning_small.jpg

I guess we’re all dying. Some of us are just more aware of it.

I talk to women whose doctors found a lump, and they now know every square inch of M.D. Anderson Cancer Center. I talk to men who had heart attacks way too early in life. I see the look in a couple’s eyes when they know one of them soon won’t be there.

I talk to lots of widows. A few widowers, but lots more widows. Those statistics are true. Most of the widows are older – beyond retirement age. Some are 50-ish. A few are young. Very young.

None of it seems fair. It makes you sad, angry, confused.

But it’s life, isn’t it?

When I’m having conversations with people about financial matters, they usually want to talk about “life” matters – getting out of debt, investing, saving for retirement, turning assets into income for retirement. All important stuff.

Retirement Budgeting: Don't Forget Your Meds

By Byron Moore, posted August 22, 2018

The following segment first aired on KEDM 90.3.

Medical expenses are likely to be a significant budget item for most retirees.

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Emotions - A Powerful Force

By Byron Moore, posted August 15, 2018

The following segment first aired on KEDM 90.3.

Emotions can be a powerful force, how will you harness them?

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Pension or Lump Sum, Which Should I Choose?

By Byron Moore, posted August 8, 2018

The following segment first aired on KEDM 90.3.

If you're being offered the choice between a monthly pension and a lump sum, which should you choose?

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Do I Need an Annuity?

By Byron Moore, posted August 1, 2018

The following segment first aired on KEDM 90.3.

Should I purchase an annuity?

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