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The Cost of Waiting Five Years
Most people in life are in a perpetual balancing act between their family, work and personal lives. With so many competing needs for time and money, it can be difficult to make the commitment and get started investing. However, each year we wait results in a significant decrease in earnings growth over time. The table below shows what happens for every 5 years an individual waits to start saving.
Crossing Your Fingers is Not a Strategy
There is no doubt that circumstances in life will make it more difficult for some people to stay on track and achieve their goals. The vast majority of people can take proactive steps to influence their financial outcomes – even when they feel like the outcome is very uncertain.
How to Take Advantage of Inflation
It has been several decades since inflation has taken center stage in our lives like it is right now. It’s important to realize that the headwinds we are facing are MORE than just inflation and in totality we have quite a few fronts to work through before we find an equilibrium (fuel shortages, food security, and asset valuation to name a few).
Here’s what you should focus on: What is inflation? Why is inflation important? What can you do to benefit from the current inflationary environment?
Financial Anxiety is Real
The reality is that a financial advisor cannot stop world events from taking place – and cannot anticipate every possible negative event. However, an advisor should be creating a plan with the client that is built around their individual goals.
There’s No Such Thing as a Runner’s High
When the markets are volatile, it is easy to think about quitting, or changing up your plan. It is especially important to stay focused and unwavering as you push through. Nothing in the short term can derail your long term goals as long as you stay true to those goals. Whether it is running or investing, making a commitment to do what it takes to reach your runner’s high will help clarify the steps necessary along the way, even when you encounter tough days.
Should I Still Be Investing?
Amazon became a public stock through what is known as an Initial Public Offering (IPO) in 1997 with a share price of $18. As the price has increased over time, the stock has been split on multiple occasions. When a stock splits, the share price is divided and the number of shares of stock is multiplied by the value of the split (for example, Amazon completed a 20 for 1 split in June 2022. This means that the share price was divided by 20 and the number of shares multiplied by 20).
An Advisor Is Not For Everyone
The value that a financial advisor provides that hasn’t changed is the behavioral and psychological support that most investors need to be successful with their long-term investing (most notably, retirement investing). With pensions, mostly a benefit of previous generations, the onus on saving and preparing for retirement now falls squarely on each of us. Beyond that, planning around paying for kids’ college, taxes, estates/death, insurance, long-term care, etc. are all areas that most people do not spend a lot of time learning about or exploring.
Sacrificing Your Own Retirement Security By Prioritizing Your Kids’ College is NOT the Answer!
As a parent, we always want what is best for our children and tend to sacrifice our own wants and needs to ensure theirs are met. When it comes to paying for college, I can’t stress enough that sacrificing your own retirement security by prioritizing your kids’ college is NOT the answer. Although it may seem like your options are limited and the time is quickly coming to pay for school, there are many ways to address college without giving your children mental health issues later in life.
What Makes a Financial Advisor Independent?
The advisor is independent when they are able to give investment advice without considering product quotas, higher commissions on certain sales/products, rewards trips, etc. The focus can be on providing the best advice during every interaction.
