Finance for dad: financial planning manual


Whether you’re investing in a business, the owner of one, or thinking about starting one, my Rich Dad’s wise words remain true: “The numbers tell the story.”

In school, your report card is the marker for success. In business, your financial statements are. If you want to be successful in business, you must know how to read a financial statement and how to draw fact-based conclusions about the health and potential of a business.

Gross margin is sales minus the cost of goods sold. Rich dad used to say, “If the gross isn’t there, there’ll be no net.”

Gross margin percentage is the gross margin divided by sales, which tells you what percentage of sales is left after deducting the cost of the goods sold.

How high the gross margin percentage needs to be depends on how a business is organized and the other costs it has to support. For instance, after calculating gross margin percentage, rich dad’s convenience stores still had to pay the clerks, the utilities, the taxes, rent, and a list of other expenses. They also had to have enough left over to give rich dad a good return on his original investment.

Today, if you own an internet business, the potential for high overhead is lowered, so it’s quite possible that you can afford to sell and make a profit with a lower gross margin percentage. But in all businesses, the higher the gross margin, the better.

Here is my list of recommended finance books. Updated for 2018. I consider these books the cream of the crop; the best of the best. I have read every one of them. Read all of them, and you’ll have a good primer in personal finance, economics, investing and owning a business. I’ve included a quick review and summary of each book. Come back in the future for I will be adding new books.

A classic book that basically states most people do not beat index based funds. Presents all of the evidence and research on this subject.

Bernstein’s first book, and it goes into much more detail than “The Four Pillars of Investing” book. If you want to understand more of the technical details pick up this book

The classic value investing book that everyone should read. It has been updated with comments from Jason Zweig who currently works at the Wall Street Journal.

How to apply Austrian Economics to investing. While the book itself takes a roundabout way to discuss how to do this, it’s worth the read.

Great for someone wanting to start a business who has some out of the box ideas. Yes it contains a lot of fluff, but it does have some great advice. See our recent Rich Dad, Poor Dad review

Whether you’re investing in a business, the owner of one, or thinking about starting one, my Rich Dad’s wise words remain true: “The numbers tell the story.”

In school, your report card is the marker for success. In business, your financial statements are. If you want to be successful in business, you must know how to read a financial statement and how to draw fact-based conclusions about the health and potential of a business.

Gross margin is sales minus the cost of goods sold. Rich dad used to say, “If the gross isn’t there, there’ll be no net.”

Gross margin percentage is the gross margin divided by sales, which tells you what percentage of sales is left after deducting the cost of the goods sold.

How high the gross margin percentage needs to be depends on how a business is organized and the other costs it has to support. For instance, after calculating gross margin percentage, rich dad’s convenience stores still had to pay the clerks, the utilities, the taxes, rent, and a list of other expenses. They also had to have enough left over to give rich dad a good return on his original investment.

Today, if you own an internet business, the potential for high overhead is lowered, so it’s quite possible that you can afford to sell and make a profit with a lower gross margin percentage. But in all businesses, the higher the gross margin, the better.

Here is my list of recommended finance books. Updated for 2018. I consider these books the cream of the crop; the best of the best. I have read every one of them. Read all of them, and you’ll have a good primer in personal finance, economics, investing and owning a business. I’ve included a quick review and summary of each book. Come back in the future for I will be adding new books.

A classic book that basically states most people do not beat index based funds. Presents all of the evidence and research on this subject.

Bernstein’s first book, and it goes into much more detail than “The Four Pillars of Investing” book. If you want to understand more of the technical details pick up this book

The classic value investing book that everyone should read. It has been updated with comments from Jason Zweig who currently works at the Wall Street Journal.

How to apply Austrian Economics to investing. While the book itself takes a roundabout way to discuss how to do this, it’s worth the read.

Great for someone wanting to start a business who has some out of the box ideas. Yes it contains a lot of fluff, but it does have some great advice. See our recent Rich Dad, Poor Dad review

My dad was a little vain. Even at 80, he wore clothes with the ease of a man who had always been handsome and slim. When I was a kid, he would often wear ascots and tweedy jackets to drive me to work at the McDonald’s in the tiny rural town next to our tiny rural town. Dad had grown up with money and behaved as if that were still true, no matter how little we had at the time. This wasn’t always a good thing, but it was endless fodder for jokes.

When we moved him into an assisted-living place near my apartment in Brooklyn, he introduced himself to every aide by bowing and pretending to kiss the tops of their hands. And because of dementia, he’d forget meeting them and do it all over again the next week with a flourish and his German accent. They loved him. He’d wander around the halls with his white hair combed, a bit unsteady even with a cane. It was as if he were always searching for the dining car on a European train.

This particular residence was pretty–the interior still had a bit of prewar elegance, much like Dad. But when I signed the papers guaranteeing the rent and extra “Memory Care,” he was already on borrowed time. Unless you’re particularly well resourced, anyone with an elderly parent knows the cruel math you have to do when choosing a nursing home or assisted-living residence. It goes something like this: personal savings plus Medicare, minus the level of disability, multiplied by the rate of decline.

That last variable is what gave me nightmares. Would he run out of money before he ran out of time? Most private homes don’t have to keep residents who just have Medicare, no matter how long they’ve lived there. If a parent is low on cash and getting less able, you have to look for a place that will provide even more care at less than half the price. There’s no way that equation adds up. Something has to be sacrificed, but what? Would it be the time to get him out of bed and into a chair? Or would it be the 30 extra minutes it now takes to feed him a whole meal?

I was a nursing-home aide in high school, and I know how hard it is just to do the basics–bathe, feed and change beds for everyone before the lunch trays come around. That math is tough on everyone: residents, aides and families. Well, everyone but the owners of these facilities, who are, thanks to forced arbitration clauses, often as unaccountable as they are hard to track down.

In Dad’s final year, there were dark hours when I wished pneumonia would take him before we had to take that last step of finding a nursing home. In the end, we had to. My sister spent months trying to locate a place that would take him. Hard enough for his generation, but if government predictions are correct, there will be such a shortage of caretakers when I’m 80 that no one knows how we’ll manage.

Whether you’re investing in a business, the owner of one, or thinking about starting one, my Rich Dad’s wise words remain true: “The numbers tell the story.”

In school, your report card is the marker for success. In business, your financial statements are. If you want to be successful in business, you must know how to read a financial statement and how to draw fact-based conclusions about the health and potential of a business.

Gross margin is sales minus the cost of goods sold. Rich dad used to say, “If the gross isn’t there, there’ll be no net.”

Gross margin percentage is the gross margin divided by sales, which tells you what percentage of sales is left after deducting the cost of the goods sold.

How high the gross margin percentage needs to be depends on how a business is organized and the other costs it has to support. For instance, after calculating gross margin percentage, rich dad’s convenience stores still had to pay the clerks, the utilities, the taxes, rent, and a list of other expenses. They also had to have enough left over to give rich dad a good return on his original investment.

Today, if you own an internet business, the potential for high overhead is lowered, so it’s quite possible that you can afford to sell and make a profit with a lower gross margin percentage. But in all businesses, the higher the gross margin, the better.

Whether you’re investing in a business, the owner of one, or thinking about starting one, my Rich Dad’s wise words remain true: “The numbers tell the story.”

In school, your report card is the marker for success. In business, your financial statements are. If you want to be successful in business, you must know how to read a financial statement and how to draw fact-based conclusions about the health and potential of a business.

Gross margin is sales minus the cost of goods sold. Rich dad used to say, “If the gross isn’t there, there’ll be no net.”

Gross margin percentage is the gross margin divided by sales, which tells you what percentage of sales is left after deducting the cost of the goods sold.

How high the gross margin percentage needs to be depends on how a business is organized and the other costs it has to support. For instance, after calculating gross margin percentage, rich dad’s convenience stores still had to pay the clerks, the utilities, the taxes, rent, and a list of other expenses. They also had to have enough left over to give rich dad a good return on his original investment.

Today, if you own an internet business, the potential for high overhead is lowered, so it’s quite possible that you can afford to sell and make a profit with a lower gross margin percentage. But in all businesses, the higher the gross margin, the better.

Here is my list of recommended finance books. Updated for 2018. I consider these books the cream of the crop; the best of the best. I have read every one of them. Read all of them, and you’ll have a good primer in personal finance, economics, investing and owning a business. I’ve included a quick review and summary of each book. Come back in the future for I will be adding new books.

A classic book that basically states most people do not beat index based funds. Presents all of the evidence and research on this subject.

Bernstein’s first book, and it goes into much more detail than “The Four Pillars of Investing” book. If you want to understand more of the technical details pick up this book

The classic value investing book that everyone should read. It has been updated with comments from Jason Zweig who currently works at the Wall Street Journal.

How to apply Austrian Economics to investing. While the book itself takes a roundabout way to discuss how to do this, it’s worth the read.

Great for someone wanting to start a business who has some out of the box ideas. Yes it contains a lot of fluff, but it does have some great advice. See our recent Rich Dad, Poor Dad review

My dad was a little vain. Even at 80, he wore clothes with the ease of a man who had always been handsome and slim. When I was a kid, he would often wear ascots and tweedy jackets to drive me to work at the McDonald’s in the tiny rural town next to our tiny rural town. Dad had grown up with money and behaved as if that were still true, no matter how little we had at the time. This wasn’t always a good thing, but it was endless fodder for jokes.

When we moved him into an assisted-living place near my apartment in Brooklyn, he introduced himself to every aide by bowing and pretending to kiss the tops of their hands. And because of dementia, he’d forget meeting them and do it all over again the next week with a flourish and his German accent. They loved him. He’d wander around the halls with his white hair combed, a bit unsteady even with a cane. It was as if he were always searching for the dining car on a European train.

This particular residence was pretty–the interior still had a bit of prewar elegance, much like Dad. But when I signed the papers guaranteeing the rent and extra “Memory Care,” he was already on borrowed time. Unless you’re particularly well resourced, anyone with an elderly parent knows the cruel math you have to do when choosing a nursing home or assisted-living residence. It goes something like this: personal savings plus Medicare, minus the level of disability, multiplied by the rate of decline.

That last variable is what gave me nightmares. Would he run out of money before he ran out of time? Most private homes don’t have to keep residents who just have Medicare, no matter how long they’ve lived there. If a parent is low on cash and getting less able, you have to look for a place that will provide even more care at less than half the price. There’s no way that equation adds up. Something has to be sacrificed, but what? Would it be the time to get him out of bed and into a chair? Or would it be the 30 extra minutes it now takes to feed him a whole meal?

I was a nursing-home aide in high school, and I know how hard it is just to do the basics–bathe, feed and change beds for everyone before the lunch trays come around. That math is tough on everyone: residents, aides and families. Well, everyone but the owners of these facilities, who are, thanks to forced arbitration clauses, often as unaccountable as they are hard to track down.

In Dad’s final year, there were dark hours when I wished pneumonia would take him before we had to take that last step of finding a nursing home. In the end, we had to. My sister spent months trying to locate a place that would take him. Hard enough for his generation, but if government predictions are correct, there will be such a shortage of caretakers when I’m 80 that no one knows how we’ll manage.

Not long ago, I had coffee with my friend Jill whose father had recently passed away. He had suffered from dementia for more than a year, but no one picked up on it until the disease had progressed and her dad had stopped tending to household finances. Bills were unpaid, investments were in disarray and random payments had been made to charities he’d never supported before. Jill had spent long hours trying to unravel and correct the financial chaos he’d inadvertently created in the months before he died.

According to a recent report by the Alzheimer’s Association, 1 in 8 elderly Americans currently suffer from some form of dementia, and more than 15 million Americans provide some sort of care to affected individuals. As Time’s cover story details this week , many baby boomers are finding themselves responsible for making health care decisions for their parents. But boomers are also stepping in to help with financial matters. In many cases, this means taking over money management duties or paying for expenses out of their own pockets. The time and money involved can be significant.

With some proactive planning, you can help your parents stay on track financially and ensure that their desires for their financial legacy are respected and carried out. Taking the following steps while your aging parents are still healthy can help protect their finances and lay the groundwork for a transition in financial management should your parent develop dementia or other illness.

1. Talk about finances now. While your parents may hesitate to talk about money, or tell you to butt out of their business, it’s important to broach the topic. If you’re worried about having this conversation, consider coming at it by bringing up the national health care debate or discussing a friend’s situation like Jill’s. Then gently inquire whether your parents have made arrangements for long term care or if they have sufficient retirement income and respectfully offer assistance with managing their finances.

2. Set up automatic bill payments. If your parents are open to your help, suggest establishing online bank accounts and automatic bill payments. Arrange for social security payments, pension checks and other income to be deposited directly to a centralized account on a regular basis and for bills to be paid from this account. Systematized bill payments can help ensure that Mom and Dad won’t suddenly be in the dark or without air conditioning should they forget to pay the electricity bill.

3. Help get legal documents in place. It is critical to determine whether your parents have created important legal documents, including durable powers of attorney. These documents, which must be drawn up by an attorney, will grant you the legal right to manage their finances or health-related affairs should they become incapacitated, enabling you to do such things as withdraw money from their accounts so you can cover their unpaid bills. Encourage your parents to update wills and beneficiary forms to reflect their wishes, and make sure deeds and titles for property or assets are current.

It’s hard to balance all the new financial responsibilities that come with starting a family. From handling new expenses, to building savings, buying insurance, paying off debt, and investing for the future, it’s a lot to take on and there’s a lot of pressure to get it right.

I know from experience. Even with my background as a C ertified F inancial P lanner tm , I struggled to make the right decisions when my wife and I were having our first son. I honestly didn’t feel confident in my ability to handle it.

Maybe you’re feeling overwhelmed too and you’re not sure where to start. Or maybe you’ve already made a lot of the “right” financial moves, but you’re still not sure whether you’re on the right track for what YOU want out of life.

No matter what, I know that you want to feel confident about your financial decisions so that you can stop worrying about money and get back to the things you actually enjoy.

Through my personal experience as a dad and the one-on-one financial planning I do every day with other new parents, I’ve learned a lot about what works and what doesn’t.

And my mission here at Mom and Dad Money is to make sure that YOU know how to take the next step and build a better financial future for you and your family.

Whether you’re investing in a business, the owner of one, or thinking about starting one, my Rich Dad’s wise words remain true: “The numbers tell the story.”

In school, your report card is the marker for success. In business, your financial statements are. If you want to be successful in business, you must know how to read a financial statement and how to draw fact-based conclusions about the health and potential of a business.

Gross margin is sales minus the cost of goods sold. Rich dad used to say, “If the gross isn’t there, there’ll be no net.”

Gross margin percentage is the gross margin divided by sales, which tells you what percentage of sales is left after deducting the cost of the goods sold.

How high the gross margin percentage needs to be depends on how a business is organized and the other costs it has to support. For instance, after calculating gross margin percentage, rich dad’s convenience stores still had to pay the clerks, the utilities, the taxes, rent, and a list of other expenses. They also had to have enough left over to give rich dad a good return on his original investment.

Today, if you own an internet business, the potential for high overhead is lowered, so it’s quite possible that you can afford to sell and make a profit with a lower gross margin percentage. But in all businesses, the higher the gross margin, the better.

Here is my list of recommended finance books. Updated for 2018. I consider these books the cream of the crop; the best of the best. I have read every one of them. Read all of them, and you’ll have a good primer in personal finance, economics, investing and owning a business. I’ve included a quick review and summary of each book. Come back in the future for I will be adding new books.

A classic book that basically states most people do not beat index based funds. Presents all of the evidence and research on this subject.

Bernstein’s first book, and it goes into much more detail than “The Four Pillars of Investing” book. If you want to understand more of the technical details pick up this book

The classic value investing book that everyone should read. It has been updated with comments from Jason Zweig who currently works at the Wall Street Journal.

How to apply Austrian Economics to investing. While the book itself takes a roundabout way to discuss how to do this, it’s worth the read.

Great for someone wanting to start a business who has some out of the box ideas. Yes it contains a lot of fluff, but it does have some great advice. See our recent Rich Dad, Poor Dad review

My dad was a little vain. Even at 80, he wore clothes with the ease of a man who had always been handsome and slim. When I was a kid, he would often wear ascots and tweedy jackets to drive me to work at the McDonald’s in the tiny rural town next to our tiny rural town. Dad had grown up with money and behaved as if that were still true, no matter how little we had at the time. This wasn’t always a good thing, but it was endless fodder for jokes.

When we moved him into an assisted-living place near my apartment in Brooklyn, he introduced himself to every aide by bowing and pretending to kiss the tops of their hands. And because of dementia, he’d forget meeting them and do it all over again the next week with a flourish and his German accent. They loved him. He’d wander around the halls with his white hair combed, a bit unsteady even with a cane. It was as if he were always searching for the dining car on a European train.

This particular residence was pretty–the interior still had a bit of prewar elegance, much like Dad. But when I signed the papers guaranteeing the rent and extra “Memory Care,” he was already on borrowed time. Unless you’re particularly well resourced, anyone with an elderly parent knows the cruel math you have to do when choosing a nursing home or assisted-living residence. It goes something like this: personal savings plus Medicare, minus the level of disability, multiplied by the rate of decline.

That last variable is what gave me nightmares. Would he run out of money before he ran out of time? Most private homes don’t have to keep residents who just have Medicare, no matter how long they’ve lived there. If a parent is low on cash and getting less able, you have to look for a place that will provide even more care at less than half the price. There’s no way that equation adds up. Something has to be sacrificed, but what? Would it be the time to get him out of bed and into a chair? Or would it be the 30 extra minutes it now takes to feed him a whole meal?

I was a nursing-home aide in high school, and I know how hard it is just to do the basics–bathe, feed and change beds for everyone before the lunch trays come around. That math is tough on everyone: residents, aides and families. Well, everyone but the owners of these facilities, who are, thanks to forced arbitration clauses, often as unaccountable as they are hard to track down.

In Dad’s final year, there were dark hours when I wished pneumonia would take him before we had to take that last step of finding a nursing home. In the end, we had to. My sister spent months trying to locate a place that would take him. Hard enough for his generation, but if government predictions are correct, there will be such a shortage of caretakers when I’m 80 that no one knows how we’ll manage.

Not long ago, I had coffee with my friend Jill whose father had recently passed away. He had suffered from dementia for more than a year, but no one picked up on it until the disease had progressed and her dad had stopped tending to household finances. Bills were unpaid, investments were in disarray and random payments had been made to charities he’d never supported before. Jill had spent long hours trying to unravel and correct the financial chaos he’d inadvertently created in the months before he died.

According to a recent report by the Alzheimer’s Association, 1 in 8 elderly Americans currently suffer from some form of dementia, and more than 15 million Americans provide some sort of care to affected individuals. As Time’s cover story details this week , many baby boomers are finding themselves responsible for making health care decisions for their parents. But boomers are also stepping in to help with financial matters. In many cases, this means taking over money management duties or paying for expenses out of their own pockets. The time and money involved can be significant.

With some proactive planning, you can help your parents stay on track financially and ensure that their desires for their financial legacy are respected and carried out. Taking the following steps while your aging parents are still healthy can help protect their finances and lay the groundwork for a transition in financial management should your parent develop dementia or other illness.

1. Talk about finances now. While your parents may hesitate to talk about money, or tell you to butt out of their business, it’s important to broach the topic. If you’re worried about having this conversation, consider coming at it by bringing up the national health care debate or discussing a friend’s situation like Jill’s. Then gently inquire whether your parents have made arrangements for long term care or if they have sufficient retirement income and respectfully offer assistance with managing their finances.

2. Set up automatic bill payments. If your parents are open to your help, suggest establishing online bank accounts and automatic bill payments. Arrange for social security payments, pension checks and other income to be deposited directly to a centralized account on a regular basis and for bills to be paid from this account. Systematized bill payments can help ensure that Mom and Dad won’t suddenly be in the dark or without air conditioning should they forget to pay the electricity bill.

3. Help get legal documents in place. It is critical to determine whether your parents have created important legal documents, including durable powers of attorney. These documents, which must be drawn up by an attorney, will grant you the legal right to manage their finances or health-related affairs should they become incapacitated, enabling you to do such things as withdraw money from their accounts so you can cover their unpaid bills. Encourage your parents to update wills and beneficiary forms to reflect their wishes, and make sure deeds and titles for property or assets are current.


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Finance for Dad - The Financial Planning Handbook

    Whether you’re investing in a business, the owner of one, or thinking about starting one, my Rich Dad’s wise words remain true: “The numbers tell the story.”In school, your report card is the marker for success. In business, your
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