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Avatar photo About Kristina Tahnyak

Tahnya is a Certified Financial Planner and former Investment Advisor turned marketing and communications professional She holds a degree from Concordia University, is debt free and currently works in the field of digital marketing.

Job decisions after a corporate takeover

corporate takeover, new management, new job

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Well it’s officially here, last week my company was finally sold to a competitor.  My workplace is transforming and as of now my professional fate is yet to be determined.  I’ve waited four months for this day and all of a sudden that day came…and went.

That’s right.  After much anticipation and many tears from co-workers my company was sold with merely a letter from our president wishing us all the best and advising us that he won’t be joining us on the new venture.  What?  After so many months of anxiety, stress and anticipation it all comes to an end with an email.  What is going on?  There was no information about the state of the future,  just an adieu and all the best.

I guess I’m not surprised but after waiting so long for this day to come I still don’t feel any better (or worse) about my professional future because all questions are still left unanswered.  I’m over the point of worrying about what will happen to my job and my stable income because I’ve come to realize there’s really nothing that I can do about it, or is there?

Should I be on my best behavior?

Part of me feels the answer is yes and the other half of me says that my work speaks for itself – right?  Over the next few weeks my new employer is going to come in and assess our workplace, our strategy and our job roles.  Should I be on my best behavior and try to impress them or should I continue with my normal routine because it’s business as usual until told otherwise?

I’m open to any and all suggestions because I really don’t know how to feel or how to act.  I can’t trust that my boss has my best interest at heart because she is going to be busy trying to secure herself a position with our new employer.  That makes me think I should try and do my best and go above and beyond during this transition period.

At the same time I think laying low could be a very beneficial strategy.  If I don’t state my case or speak up in meetings maybe I can just coast through and fall nicely into a new roll with my new employer.  After all there is only one of me in the company, literally I’m the only one who does my job so that seems promising. But if they do let me go I do have a backup plan.

There’s always the start-up

I always have the job offer from the start-up company.  I still haven’t decided on what I want to do because I’m still weighing the pros and cons. I’ve always worked for large international financial corporations so moving to a start-up would definitely be a change.  A good change, but a change.

I started searching LinkedIn for articles about working for start-ups and honestly it seems like a great opportunity.  After reading my post about getting a job offer some of our lovely readers and friends on Twitter reached out to me and said “Take it. You’ll love it!”  One fellow personal finance blogger even told me they love working with start-ups and prefer it over big corporations.  That’s very reassuring.

How are you celebrating Valentine’s Day?

Valentine's day, celebrating Valentine's day, celebrating love, love month

Valentine's day, celebrating Valentine's day, celebrating love, love month
Good morning Dinks.  It’s the time of the year when newlyweds and old married couples alike showcase their love for each other with flowers, chocolate, cards and stuffed animals.  Whether you’re on a first date this year or celebrating a quarter century anniversary it’s one day to show your love without boundaries.

Or is it?

If you are in a long term relationship (like I am with Nick – going on 16 years) is Valentine’s Day still all it’s cracked up to be?  Some people would say yes and others would ask “Why do we need one day to celebrate our love when we can do it all year long?”  I agree with both sides.

What are your Valentine’s Day plans?

As we grow older in a relationship we become more comfortable and each person adapts to the other.  This is especially true when you live together.  Nick and I don’t go out for dinner to celebrate Valentine’s Day and I’m O.K. with that.

First of all it’s freezing cold up here in the northeast in February and the second is because everywhere is so crowded it’s not my idea of a good time.  I don’t like being in a restaurant that’s so loud I can’t even hear what my boyfriend is saying.  I would much rather stay home, stay warm and it be just the two of  us.  Now that doesn’t mean he can get away without having a box of Reese Peanut Butter Cups waiting for me when I get home – because trust me that’s a necessity.

That’s what our relationship has become over the years: simple.  I think it’s more romantic when gifts come from the heart and that doesn’t always equal an expensive dollar amount.

Is Valentine’s Day a waste of money?

You can answer honestly, I promise not to tell your spouse.  To tell the truth I have only received a dozen red roses twice in my lifetime.  The first was when I graduated from University and the second was when I passed my Financial Planners exam and both came from my parents.

Don’t get me wrong Nick does buy flowers throughout the year for my birthday and sometimes for no special occasion but never roses and never on Valentine’s Day.  It honestly doesn’t bother me because I would be upset if he spent $60 on flowers just for me when 24 hours later he could buy them for half the price – and he knows that.

Is Valentine’s Day only for new couples?

Some people say Valentine’s Day is just another Hallmark Holiday created by a consumerist society to make people spend money – and right after the most expensive time of the year.  What do you think?

I think young couples (in age and young in a relationship) celebrate Valentine’s Day because they feel they have to.   There’s a lot of pressure to find the perfect gift and plan the perfect evening, but do you honestly want to spend hundreds of dollars on one night right after the holidays?  Probably not.

I would much rather Nick spend money on a day that’s all about me such as my birthday as opposed to the one day a year society tells him he has to proclaim his love for me.

Are you holding too much cash?

Do you have too much cash? It seems like a funny question but the truth is if you have too much cash you're not making your money work for you!

Do you have too much cash? It seems like a funny question but the truth is if you have too much cash you're not making your money work for you!Good morning Dinks, let me ask you a question.  Did you receive your end of the year investment account statements?  How are your investments performing – as you hoped they would?  If your investment returns are less than up to par don’t blame the market, maybe you just aren’t fully invested.

When clients call me and ask why they haven’t made as much money as they hoped the first thing I tell them – before explaining how the market works – is to look at their asset allocation.  If the market performed well and your investment performance doesn’t match maybe it’s because you have more cash than needed in your investment portfolio.

Yes it’s your financial planner’s job to make sure you are invested in the best possible options, but sometimes these things are overlooked.  If one of these options sounds like you then maybe you’re holding too much as in your investment portfolio.

4 reasons people have too much cash:

They forget to invest.  Don’t get me wrong cash has its place in an investment portfolio but they key is to find the perfect proportion.  Cash provides liquidity but at the same time it also provides a low rate of return.

Sometimes people place a contribution into cash because they don’t have the time right then and there to choose an investment.  That’s OK for the short term but leaving too much cash for more than a month is just hurting your potential returns.

They don’t reinvest dividends.  If you invest in stocks or mutual funds that pay dividends make sure to set the distributions to reinvest.  Sometimes people have the dividends paid out to them if they need the income.

If you don’t need income from your quarterly or annual dividends advise your financial planner to have them reinvest to buy more stocks or units of mutual funds, this way your money keeps working for you and you won’t be losing out.

They can’t make a decision.  Are you one of those indecisive people who think every option is the best one?  I am one of those people, hence I’m a balanced investor.  I invest half my money in low risk income such as bonds and the other half in higher risk investments such as equities.  Whenever I make a contribution into my retirement account I always make sure it’s split half/half.

If your investment strategy is more complicated than mine try to make a decision on how you want to invest and if you can’t make a decision talk to your investment advisor before you make the deposit.  This will give you time to mull over the options as oppose to making an on the spot decision.  We all know that “I’m just putting it in cash temporarily” means it will probably be there for a very long time.

They don’t understand the options.  Risk is the number one reason why people hesitate when it comes to investing.  They hear horror stories about their neighbor’s brother who lost his pension in the market and they’re afraid the same thing will happen to them.

What most people don’t understand is that for the exact same thing to happen they would have had to invest in the exact same investment on the exact same day as your neighbor’s brother.  Since you are hearing about the incident after the fact what are the odds of that? Slim to none.

There are several – thousands – types of investments available out there.  Don’t limit your potential returns because you don’t know your options.  Not all investment options are high risk, there’s really something for everyone from a first time investor to a grandma collecting social security.  You just have to find the right option for you.

 

Weekly Roundup: Valentine’s Day and Friday the 13th

Valentine's Day, Friday the 13th, celebrating Valentine's day, love month, hearts day

Valentine's Day, Friday the 13th, celebrating Valentine's day, love month, hearts day

Happy pre-Valentine’s Day Dinks.  Despite being Friday the 13th I hope you have a wonderful weekend with your sweetheart full of good food, sweets and lots and lots of love.

Enjoy these posts from our friends.  Have a great weekend!

Clever Dude – All About Life Insurance Premiums

Money Talks News – Financial Stress May Be Costing You Your Health

Club Thrifty – Success is Not a Zero-Sum Game

Cash Cow Couple – Roth IRA vs. Traditional IRA: A Guide for Wise Investors

Budgets Are Sexy – My Biggest Guilty Pleasure I Spend on Is…

Photo from I’d Pin That

Is Valentine’s Day Just For Women?

Valentine's day, celebrating Valentine's, hearts day

Valentine's day, celebrating Valentine's, hearts day

Good morning Dinks.  And to all you men who are frantically searching stores to find the perfect Valentine’s Day gift – Good Luck.  Let me let you in on a little Valentine’s Day secret – we are going to love whatever you get us because it’s the thought that counts.  Right?  Wrong!

But I am going to help you out because in all honesty Valentine’s Day is really just for women, isn’t it?  Think about your plans for Valentine’s Day, did you make a reservation at your wife’s favorite restaurant?  Think about what you’re doing right now, are you buying jewelry for your girlfriend?

Eeerrrr, that’s so overrated.  The key to Valentine’s Day is not to spend a lot of money trying to make your sweetheart happy.  The key to a happy Valentine’s Day is to find a gift that’s for YOUR sweetheart, not a gift that you think every woman wants.

What is Valentine’s Day, really?

I don’t think Valentine’s Day is a holiday for people to showcase their love for one another, it’s a day for men to show women how much they love them.  I’m OK with that.  I’m OK with it because Hallmark says that’s the norm and I’m OK with it as long as my boyfriend doesn’t get me a cookie cutter gift.

So stop whatever you’re doing and don’t buy earrings if your wife doesn’t have hear ears pierced and don’t get your girlfriend flowers if she has never told you how much she loves them.  Stop and take a moment to think about what your significant other really loves and forget about the stuffed animals that Hallmark tells you to buy.

Yes gentlemen you have to get a Valentine’s Day Gift

I know some men like to duck out of Valentine’s Day with the excuse that they don’t need to display their love only one day a year.  Well that’s a cop out and it doesn’t fly in the Kristina/Nick household.  Yes it’s true that boyfriends and husbands should showcase their love all year round, but Hallmark also says they have to do it on February 14th so that’s exactly what they should do.

In my books Valentine’s Day isn’t as special as a birthday or anniversary so the gifts don’t have to be exaggerated, but they do have to be present.  A simple box of chocolates and a card will do as long as this day is acknowledged no matter how insignificant my boyfriend thinks it is.

It doesn’t have to be grand, it just has to be special

In fact Nick and I never have a big hoopla on Valentine’s Day.  We did a few times when we were younger and first started dating but that quickly died out as the winters got colder and the restaurants got more crowded.  Back in college we went out for dinner on Valentine’s Day but neither of us enjoyed it because we really couldn’t even afford it.

Now we celebrate Valentine’s Day at home, just the two of us.  This year we’ll be watching the NBA All Star weekend and that’s OK with me – as long as chocolate is involved.

The perfect Valentine’s Day gift doesn’t have to be expensive

I can’t speak for women around the world but I personally appreciate gifts much more when I actually like them.  Yes I should have a boyfriend who knows what I like after 15 years and yes it’s honestly the thought that counts but wouldn’t it be even better – and much simpler – if we just told our significant others what to buy?!  I mean he has to buy a gift regardless so shouldn’t it be something I love.

 

Where did you meet your spouse?

meet your spouse, love story, Valentine's day story, swapping love stories, love is in the air

meet your spouse, love story, Valentine's day story, swapping love stories, love is in the air
Good morning Dinks.  Continuing on with our theme of Valentine’s Day posts this week I thought we could swap stories on when you met your spouse.  I’m one of those girls who loves hearing stories of how couples fell in love, who asked who out first and the stories of how you got engaged.  Yes I’m one of those types of girls.

Since love is in the air this week I thought we would get a little up close and personal with each other. Kind of an I’ll tell you mine if you tell me yours.  OK I’ll go first.

How did you two meet?

Nick and I met during our first year of university at an off campus party.  He was very tall, which I’m in to because I’m the opposite of tall standing at only five feet.  He caught my attention on the dance floor and I immediately made it my mission to meet him.  I was determined to be his shadow for the rest of the night until he decided that he couldn’t live another minute without me.  Remember I was only 18 years old.

When he would go to the bar I wouldn’t be far behind and when he would sit down to take a break from dancing I would conveniently rest my feet not too far away.  After about two hours of stalking – I mean following – him around with not even so much as a glance on his part I started to think meeting the man of my dreams was a lost cause.

But then a miracle happened.  An angel in the form of his best friend noticed me noticing him and asked to introduce us.  We exchanged phone numbers and the rest is history.

Where did you go on your first date?

I have memories of two first dates with Nick.  The first meet up we had after our introduction was at a popular downtown coffee shop.  I’ll never forget it because he ordered orange juice which I thought was weird and his best friend showed up about 20 minutes into the date.

I guess men have “bad date backup plans” just like women do; but this was pre cell phone days so instead of calling with “an emergency” the decoy would just show up.  He sat with us for about ten minutes and then politely excused himself, I guess Nick liked me and I guess the best friend approved.  Nick and I walked around the city for an hour or so after that before we said our good nights.

Our real first date (as I like to call it) where Nick picked me up at home and we spent the entire evening together was a TLC concert.  Don’t laugh, it was 1999 and the girl group TLC was a part of both our childhoods.  Going to a concert is a great first date because it’s fun and it lets you see what the person is like in real life, not just in their dinner and a movie date life.

How did he (or you) propose?

Unfortunately I don’t have an engagement story to tell you because after all these years Nick is still my boyfriend.  But I would love to hear yours!  Proposals have completely passed me by in life; I’ve never had one, I’ve never seen one and I’ve never been a part of one.  So let’s hear yours, how did you get engaged?

Happy Valentine’s Day!

 

Weekly roundup: Start-ups, Goals and Budgets

Start-ups, Goals and Budgets, weekly roundup

Start-ups, Goals and Budgets, weekly roundupHappy Friday Dinks.  If you live somewhere that was buried by snow this week, I hope you’re staying safe and warm.  If you live somewhere that doesn’t have snow, I’m jealous.

Have a great weekend and enjoy these good financial reads:

Good Financial Cents – How to Compete Everyday and Crush Your Goals

Wisebread – 10 Awesome Jobs You Didn’t Know Existed

Blonde & Balanced – Weight Loss Step One: Start With Your Food

Your Richest Life – 10 Tips for Staying on Budget in the New  Year

50 Plus Finance – How to Save Money on Your Business Start-Up

Photo from I’d Pin That

My money week: Wasting, Making and Loving

my money week

my money week

I had one of those weird money weeks.  One of those weeks where you love and hate your money at the same time; where money makes you happy and sad within the span of 24 hours.  Have you ever had one of those?

To say that my emotions are running high right now would be the understatement of the year.  With the paranoia about potentially losing my job soon piled on to the added stress of everyone backstabbing each other in my workplace the last thing I need in the world right now is an emotional money rollercoaster.  But yet here we are.

The stress of losing a job

Right now my workplace is the definition of a crazy farm.  I think everyone has reached their emotional limit which causes professionals to burst out into rages of anger at any given time.  At least twice a week I’m confronted with a woman in tears in the bathroom.  Yes it’s true.

It’s that awkward moment when you head into the bathroom in between meetings and bump into your boss splashing cold water onto her face as she is balling her eyes out.  So what do you do?  I just say hello, do my business and leave.  Maybe I should ask if she’s OK but I don’t for two reasons 1: she’s probably just going to say she’s fine even though she’s clearly not and 2: she probably couldn’t tell me even if she wanted to.

Potentially losing your financial well being is a stressful situation but putting up with it for a paycheck is worth it.  Under normal circumstances people may quit due to a toxic work environment but having a paycheck for a few more weeks than not having a paycheck at all.

The one day a month I love my money

It’s the end of the month and that means I get paid!  I love the end of the month because I get paid for all my freelance work.  As you know I have a 9 to 5 job as well as my own side hustle.  Getting paid at the end of the month is different than my normal biweekly paychecks because this is my money.

It’s not used for bills like our regular paychecks.  I don’t owe the money to anyone, I’m under no obligation to spend it and I can choose to spend it how I want to.  It’s complete financial freedom and I love it.

I hate wasting money

I’ve got into the bad habit of eating out every day for lunch.  I usually spend less than $10 a day on food but lately I’ve been going to restaurants which can add up to $20 for one meal.  I think we can all agree that’s an unnecessary expense. Once a week or once every two weeks I don’t mind paying for a restaurant lunch, but more than that is just ridiculous.  I know it, but yet I keep doing it.

This past week I wanted to grab a cheap $4 sandwich but instead I opted to join my colleagues for lunch in the food court.  I was planning to grab Quiznos but then they decided to eat somewhere different.  Long story short I ordered a bowl full of Japanese noodles and it wasn’t good.  I was full but it just wasn’t what I felt like so it didn’t satisfy my appetite.

I was pissed that I spent more than double my original budget and I was upset that the food wasn’t even good.  I felt myself getting angrier and angrier as the hour continued on which because of my emotional overload turned into tears.  Yes that’s right I burst out into tears in the mall food court because my lunch wasn’t good.  Yep, that was my money week.

Why cash is never a good investment

Cash is never a good investment. It prevents your money from really working for you. Consider these alternatives instead.

Cash is never a good investment. It prevents your money from really working for you. Consider these alternatives instead.

Good morning Dinks.  Let me ask you a question, do you have cash in your investment portfolio?  I don’t mean if you have cash in a savings account I want to know if you have cash investments in your investment portfolio and retirement accounts.

As a financial planner my job is to make sure clients have the absolute best investment options for their type of risk tolerance and investment knowledge.  December 31st marked the end of the year and the end of the last quarter for 2014.  That means right about this time people all across the country are receiving their annual investment account statements, they’re looking at the rate of return and they’re calling their financial planner.

Did your investments underperform in 2014?

This is my ultimate pet peeve as an investment professional, but unfortunately it’s also my reality.  Very often people put money in their investment portfolios and don’t initially invest it (for any number of reasons) until they realize cash doesn’t pay a lot of interest – then they call to make a complaint.

Of course I would like to say “But Mr. Client you didn’t have time to listen to my investment recommendations back in July and you haven’t answered my phone calls since, that’s why we placed your money in cash and that’s why you have a 1% rate of return.”  But of course I can’t say that so I listen to them complain and try to book another appointment for them to come and see me to chose a better investment option.

Avoid cash at all costs, except in savings

The truth is anything is better than putting money in cash – cash is never a good investment.  There are several near-cash investments on the market that people can choose to put their money in until they actually decide how they want to invest their money.  A high interest savings deposit a.k.a. cash does pay some interest, but it’s definitely not a lot.  Cash is also not an investment option it’s just a parking spot for your money until something better comes around.

Money is personal; how you want to invest your money is probably different than me, right?  This is where the advice of an investment professional comes in.  There’s an investment option out there for everyone and a financial planner can help find the best investment option for YOU.

Cash alternative: Money Market Investments

Investopedia describes a Money Market Fund as “An investment whose objective is to earn interest for shareholders.”  Money Market Mutual Funds generally invest in very low risk (but not guaranteed) investments such as high-quality investments issued by governments and corporations, including treasury bills, bankers’ acceptances, and commercial paper.

What does that mean?  It means you won’t have a very high interest rate if you invest in Money Market Mutual Funds, but you won’t have to lose sleep over a high risk investment either.  These types of low risk investments are usually good for short term goals i.e. if you plan to use the money within a year but still want to earn some type of monthly income.  They aren’t ideal for long term investments such as retirement accounts because no one wants a low interest rate over several years.

Cash alternative: Bond Mutual Funds

I’m not a high risk investor.  I’m 34 years old and I invest in Bond Mutual Funds in my retirement account.  Why?  Because I am willing to accept small fluctuations in the value of my investments and I want to invest in something that can give me a decent rate of return over the long term.  I am not one of those people who is looking for 10% rate of return.  Why?  Because I don’t want to take the risk associated with those types of investments.

I’m a balanced investor, I like a nice 50/50 split between security of capital and potential rates of return.  What does that mean?  It means I don’t want to keep my money in cash and earn next-to-no interest but I also don’t want to risk it all by putting my money in extreme high risk investments.  I work hard for my money and I’d like it to be there in retirement.

 

Is a Costco membership worth it?

Is a Costco membership worth it? Well, not always. It depends on your situation and if your savings cover the fee. Find out more..

Is a Costco membership worth it? Well, not always. It depends on your situation and if your savings cover the fee. Find out more..

Good morning Dinks.  I have a question, should a household of two people have a Costco membership?  The reason I’m asking is because this week a woman in my office was eating a granola bar that I’ve only ever seen abroad and when I asked her where she bought it she said “At Costco”.

I found this to be a bit unusual because I always thought a Costco membership was for big families and people who owned small convenience stores; she lives with her husband and they don’t have any kids.  I just never thought Dinks would have a membership to a bulk store, especially if you had to pay a fee for it – but I guess I was wrong.

Do you have a Costco membership?

When Costco first came out it was called The Price Club and it was all the rage in my hometown.  People either loved it or hated it.  My mom got a membership for our family of four and kept it after my parent’s divorce.  Her new husband doesn’t believe in paying a fee to go somewhere and spend more money so he avoids Costco at all costs (pun intended).

I personally don’t shop at Costco for a couple or reasons; the first being Nick and I don’t have a car and the second reason is because I don’t think it’s worth it.  However maybe I’m wrong.  My co-worker does all her shopping – from groceries to household items – at Costco.  Every first Friday of the month she goes shopping and buys everything she’ll need over the next few weeks from paper towels to ground beef.  She even buys fresh produce there, but of course it doesn’t last all month.

Is it really cheaper to buy in bulk?

I’m a big fan of buying in bulk because I believe in paying the cheapest price per unit for the best possible quality.  I will shop at Wal-Mart and Target and buy 12 rolls of Bounty if they’re on sale AND if I have a coupon.  This is a great deal and it’s guaranteed to last us until Bounty Paper Towels go on sale again.

Would I buy 24 rolls of Bounty if they were on sale?  I’m not sure.  On one hand we always need paper towels, but on the other hand where would I store 24 rolls of paper towels?  I think there is a very thin line between being a smart shopper and being a complete hoarder.

I love One-Stop-Shopping

This may be because I have to walk and take the subway when I shop or maybe it’s because I hate wasting time travelling from store to store.  I’m not sure, but either way a Costco membership ensures efficient one-stop-shopping. I like the idea of going to one place to get everything I need and then going straight home.

I also like to avoid crowds whenever possible, this is why I don’t shop on Saturdays – which I’ve come to understand is “Free Sample Day” at Costco.  I guess the benefits of a Costco membership is in the eyes of the beholder.  If you’re paying for something it’s best to get your money’s worth.  Costco also has a really outstanding return policy. You can return pretty much anything anytime (electronics have a 90 day cutoff).

Do you have a Costco membership? Is a Costco memberships worth it to you?

 

Find out if Costco gives out guest passes and new locations.

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