A Financial Jam

A Financial Jam

I recently read that only 32% of all households have a relationship with a financial planner. (Journal of Financial Planning, Sept 2017) Let’s be clear, we’re not talking about a relationship with a financial advisor that just makes investment decisions;

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What I Learned From This Year's Investment Conference

What I Learned From This Year's Investment Conference

Having had the opportunity to attend the annual Schwab Impact conference in October, I found it to be invigorating and insightful. Those three days exposed me to a very eclectic range of speakers, from former U.S. Labor Secretary, Robert Reich, to Magic Johnson, who is not only a legend on the court, but a visionary in the business world. 

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Ask a Financial Planner: Should You Co-sign On a Loan?

Perhaps you have a friend or know someone who has asked you to co-sign for a loan. Or maybe you’ve heard from your friend or acquaintance stories about a co-signing situation going terribly wrong. I’m not saying co-signing a loan for someone always goes badly, it just has the potential. Before you co-sign on a loan, understand what you’re doing and the risks involved of doing so. Co-signing on a loan means you are legally obligated for the loan and its payments. If the initial borrower defaults or decides not to make payments for any reason, you as the co-signer are then obligated to pay.

If a friend or family member is coming to you in need of a co-signer, this should be a red flag because it means they were not able to get approved for the loan on their own. Often lenders require a co-signer on a loan when the prospective borrower has insufficient income to afford the loan payments, does not have a sufficient credit history, or has a history of late or missing payments.

If you decide to move forward and co-sign on the loan, understand the loan will now show up on your credit report and will affect your credit score. If the initial borrower is late or misses a payment, this will negatively affect your credit score too because the loan shows in your credit history as your own.

Before co-signing on a loan for anyone, make sure you are in the appropriate financial situation to take on the debt payments if the original borrower can’t make the payments.

-       Content Written by Elizabeth Braden, Worley Erhart-Graves Financial Advisors

We Say Yes to More Women Board Members

We like the saying, “be the change you want to see in the world”. At Worley Erhart-Graves Financial Advisors (WEFA), we try to live by those words, in both our personal and professional lives, when it comes to representing women in the financial industry.

According to an InvestmentNewsarticle, “only 17% of Fortune 500 board seats are held by women”. Why is this relevant? One body of research suggests, “where women have greater representation on boards, companies simply perform better.”

One astonishing 2012 report from Credit Suisse AG found “companies with women directors outperformed those without women directors in return on equity, average growth and price/book value multiples.”

According to a 2014 Thomson Reuters report, on average companies with no women on their boards underperformed relative to gender-diverse boards and had slightly higher tracking errors.

Mutual fund manager, BlackRock Inc. has reportedly revised their voting guidelines so their board members can become more sufficiently diverse. This is hopefully just the start for mutual fund managers to recognize the need for change in the board room.

You can read more about the national campaign to increase the percentage of women on U.S. company boards to 20% or greater by the year 2020 at www.2020eob.com

At WEFA, we believe women can bring a different perspective to the table. We commend companies that revise their voting standards to include more women in their board seats. This is a win-win for women’s rights as well as company growth!

Prepared by Annie Albrecht, Worley Erhart-Graves Financial Advisors