HCR Wealth Advisors specializes in investment management and financial planning. The needs and requirements of each particular client are thoroughly understood, and the clients are guided to a comprehensive financial strategy incorporating the client’s retirement plans, savings, investments etc. The primary objective is guiding the client to make an informed decision for their financial wellbeing in the present and the future while considering all their life factors in the decision. With industry experience spanning three decades, HCR Wealth Advisors has seen a variety of clients each with their own specific circumstances. This experience has enabled HCR Wealth Advisors to guide their clients in the most difficult of market conditions and protect clients against risk.
One such risk is acquiring bad debt. The net worth of an individual is assets minus the liabilities. To increase the net worth, liabilities need to be minimalized. However, not all debt is bad. Firstly, remember the 28/36 rule which states no more than 28% of your household income before tax should go towards home debt. This includes any insurance, interest or taxes related to the home loan. The other part of the rule states that no more than 36% of your household income before tax should go towards all types of debt. Within these limits, there are certain good debts such a student loan. The value it provides outweighs the liability it carries. An example of bad debt would be credit cards. With the high interest rate and little expected value, they are sure to increase bad debt burden.
At HCR Wealth Advisors, clients are guided on how to best manage their liabilities. The bad debts should be avoided but the good debts are not necessarily bad. Along with guidance, it important to build trust and that can only come with delivering results over a period of time. HCR Wealth Advisors pride themselves in the unparalleled client experience they offer.
This article is provided for informational purposes only and should not be interpreted as investment advice.