Hawley Personal Finance

Providing objective, practical and as-needed advice to answer your personal financial questions.

As of July 2019, I am no longer creating new content. Some details may change from year to year, but my approach takes a long view. It is my hope that the concepts and philosophy in the archives prove timeless and helpful.

What Is What: Fiduciaries, Fees and Financial Advisors

I have to admit that sometimes I’m embarrassed by my profession.

Despite the prevalence of financial advisors (it seems like there’s one on every corner), it’s pretty difficult to find, one who genuinely has your best interests in mind.

The majority of financial advisors either don’t have a legal obligation to act in your best interest OR have connections to financial companies that incentivize them to recommend high-cost products. Or both.

So how can you distinguish the trustworthy from the untrustworthy? Here are some key variables to consider. ... Read More.

The True Cost of Undersaving

A little while back I read an article citing research from the Federal Reserve that found that most people wouldn't be able to cover an unexpected $400 expense without either selling something or going into debt. Similar research by the Pew Charitable Trusts found that 55% of people don't have enough savings to replace one month's worth of income.

The author shared some of his personal story as well, explaining that while he managed to send his daughters to private school and buy a house in the Hamptons, he sometimes had to borrow money from those same daughters, now adults, in order to pay for heating oil in the winter. ... Read More.

How to Choose the Right 529 Plan

529 plans are one of the most popular ways to save for college, and for good reason. They offer tax-free growth and tax-free withdrawals for higher education expenses, making them essentially the Roth IRA of college savings.

The problem is that there are a LOT of 529 plans to choose from. Almost every state offers at least one 529 plan, and many offer multiple, and each one comes with a different set of fees, investment options, and features. ... Read More.

Getting the Right Life Insurance at the Right Price

While it may not be the most enjoyable thing to think about, getting life insurance is one of the best ways to ensure that your family will always have the financial resources it needs, even if you're not there to provide for them.
When you shop around for life insurance, you'll probably encounter two different types: ... Read More.

What’s a Good Bank Worth to You?

Your bank is the hub of your financial life. It’s where your paycheck is deposited. It’s where bills are paid. It’s where savings are directed to other accounts. And it’s where you work towards some of your most important near-term financial goals like building an emergency fund and saving for a down payment.

Given its importance, don’t you owe it to yourself to find a good bank? One that makes it easy to manage your financial life? One that not only doesn’t charge you ridiculous fees, but maybe even helps you grow your money too? ... Read More.

5 Things Not to Worry About with Investing

I don’t know if there are any studies on this, but my guess is that investing causes more stress than all other financial topics combined.

Between the confusing jargon, the endless list of mutual funds, ETFs, and retirement accounts to choose from, and the constant ups and downs of the market, it’s easy to feel overwhelmed, confused, and downright anxious about whether you’re making the right decisions and whether you’ll be okay.

But today I’d like to give you a little relief. Because there are a lot of things you shouldn’t be worrying about when it comes to your investments, and here are five of the biggest ... Read More.