Portfolio | Thomas F. Scanlon, CFP®, CPA

7 Habits of Highly Effective People That Want to Retire

December 31, 2024December 30, 2023

This article, last updated in December 2023, is original content written by Manchester, CT Financial Advisor Thomas Scanlon, CFP^®, CPA.

1) Start Early

Do you want to increase your chances of retiring at a reasonable age? Start early. As The Rolling Stones said, “Time Is On My Side.” Well said. Don’t kick yourself for not starting earlier. You can’t turn the clock back. Just begin where you are now.

2) Live Beneath Your Means

This goes without saying. Which is why it needs to be said. To get to your retirement, you’re going to need to have some assets and income. Don’t fall into the trap of trying to keep up with the Joneses. Live beneath your means and get to the retirement finish line long before the Joneses.Continue Reading: 7 Habits of Highly Effective People That Want to Retire

4 Easy Steps to Stay Retired

November 14, 2023November 8, 2023

This article is original content written by local Manchester, CT Financial Advisor Thomas Scanlon, CFP®, CPA You have reached the holy grail (for some) and retired. Congratulations! You are in the Land of No Alarm Clocks. Now you can do (almost) whatever you want to do. You’ve worked your whole life to get here. Now… Continue Reading: 4 Easy Steps to Stay Retired

The Complimentary 1,440 Credit Card

February 18, 2025September 30, 2020

My brother-in-law Bob recently told me about the Complimentary 1,440 credit card. Here were some of the features he mentioned: * You must use the 1,440 everyday* It expires at the end of the day* It automatically re-news the next day* There is no application to fill out* There are no fees* You won’t get… Continue Reading: The Complimentary 1,440 Credit Card

Why Cash is Not Trash

January 3, 2024January 27, 2020

This article, last updated in December 2023, is original content written by Manchester, CT Financial Advisor Thomas Scanlon, CFP^®, CPA.

The rates of return on cash (checking, savings, and money market) are very close to zero. This begs the question, “Why have any cash in the portfolio?” Some commentators have even suggested that “Cash is Trash.” I disagree.

Cash Reserve Fund

The first thing investors should do is fund their cash reserve fund. This fund can be accessed when an emergency arises. This emergency could be unexpected medical expenses or perhaps you lose your job. The popular media maintains that investors should have at least six months of living expenses. Our experience is that most investors have three months or less in their cash reserve fund. Although your cash reserve fund is an asset and part of your net-worth it’s not considered part of your investment portfolio as you are not investing it.

Depending on an investor’s timeline and objectives, a typical portfolio may have 5%-10% allocated to cash. This provides a buffer to the portfolio. Additionally this cash is liquid if funds were needed and provided dry powder if a buying opportunity presents itself. Before the Great Recession of 2008-2009 you might be able to get 3%-4% return on your cash. (1) It has taken some time but in December 2023 you might get 4%-5%.

Continue Reading: Why Cash is Not Trash

No Deposit. No Return.

January 9, 2024January 18, 2020

This article, last updated in December 2023, is original content written by Manchester, CT Financial Advisor Thomas Scanlon, CFP®, CPA. What does this mean? If you don’t put something in (deposit) you won’t get something out (return). Isn’t that the truth? This applies whether you want to learn to play the guitar, improve your culinary… Continue Reading: No Deposit. No Return.