Many of us don’t like to open financial statements. You don’t want to be disappointed, especially when the market is down. Frankly, I am not sure which is worse: disappointment or failure.

We can’t make our problems go away by simply ignoring our issues.

It’s okay to be disappointed once in a while. When your health is in jeopardy, you don’t sweep it under the rug or bury it in the sand. A majority of the time, things don’t get better on their own. We all know someone who ignored their health problems for years, if not decades. It can be fatal to your friend who is sick and have a huge impact on their entire family.

For some reason burying our heads in the sand can makes us feel better for a time. But the harsh reality is for those who turn their head away from danger and take no precautions.

The last 12 months have been volatile, mostly on the downside. Watching your assets decline is not pleasant. During these times most people are looking for safety, which begs the question: what is safe?

• Cash in the bank – inflation eats away at it, lowering your purchasing power in the process.
• Real Estate – rising rates will eventually force reductions in equity.
• Fixed Income – rising rates are forcing down prices of bonds.
• Equities – are subject to all of the above.
• Annuities – guarantees are not always what you think they are and can cost large penalties.

So, is there such a thing as safety?

There are a few things prudent investors should consider to avoid failure in retirement:

• Quality is golden.
• Cash flow is king.
• Debt is slavery.

When evaluating investments consider a few things: if a company has quality earnings and sustainability, does it have a healthy balance sheet and ability to weather the storm? The more debt a corporation has, the more it’s subject to other risks which will impact earnings. Finally, cash flow provides the ability to have the freedom to invest and grow in the future.

I try to remind folks: it is not about how much you make; it’s about how much you keep.

I encourage you to open your statements, review them, and talk to your advisors. They work for you, and you have the right to ask questions to keep them accountable.

You can bury your head in the sand, or you can open up your statements and give us a call.

We’re here to answer your questions.

The post What Are You Hiding From? appeared first on AWM.

Working with the wrong advisor or getting in over your head trying to manage your own investments might be costly.

So, “What should my financial advisor be doing for me?” Well, let’s look at some strategies that work for my clients.

1. Diversification

Forget the simple 60/40 approach. If your portfolio hopped on that bandwagon, chances are you’re suffering a hefty loss. Bonds are nearly down as much as stocks this year. (If we head for extended volatility and high inflation, stocks and bonds alone might still struggle.)

Your advisor has to come up with something more (and something you might not be able to do yourself). Liquid investments that have the potential to earn returns regardless of stock and bond bull and bear markets.  Commodities, even select active strategies, might play a role to anchor your investment portfolio.

We take a strategic approach to hedge, preserve, and grow principal over time.

2. Exclusive Investments

Large firms with billions of dollars often overlook niche investments that might provide positive returns less correlated to traditional investments. Niche investments have limited capacity for large new investments.  Responsible managers of these strategies understand they need to keep their promise to existing investors and not compromise their investment process with a glut of new clients.

Working with an advisor like us might give you opportunity for diversified investments not accessible to most investors.

3. Tax Planning

In the past, tax optimization strategies were saved for elites. Now, it’s more accessible to those with portfolios between $1-10M.

Active management in a volatile market can keep you invested with long-term investment goals and potentially provide tax savings (versus just sitting on various positions that go up and down).

Simply holding a bunch of mutual funds in taxable accounts potentially sticks you with someone else’s tax bill from prior years.

Skillful use of different investment toolkits allows us to harvest tax losses for you.  We also seek ways to minimize taxes even when you do have to take capital gains.

It’s been a choppy year, and I fear it’s far from over. If your investment approach isn’t working, it’s time for a new one.

You need an advisor who will fight for you and your future. My team is ready and happy to help.

Give us a call to schedule a free consultation.

The post What Should Your Financial Advisor Be Doing in a Volatile Market? appeared first on AWM.

Finances can have a big impact on your lifestyle. Just ask people who wanted to retire during the 2000 or 2008 corrections. Many of those who had wanted to retire but did not plan beforehand suffered.  Some had to keep working. Others settled for a reduced standard of living.

Today’s challenges include rising taxes, inflation, interest rates, and market volatility.

It is understandable to be nervous about the future. Your bills are going up even if you’re not buying more.  Taxes are higher and more complicated. News of war, violence, and famine adds uncertainty.

1. Take Advantage of Opportunities

Returning to the first question, let me answer with another question.  In these uncertain times, would you benefit from less help – or more?  Today, if you sit in cash, you are already losing money!  Look at your grocery or gas bill. Inflation of even just 10% a year means you can afford to buy 10% less simply by sitting in cash.

2. Be Prepared for All Surprises

The AARP claims that 32% of Americans have a financial plan.[1] That’s less than 1 in 3 families.

I’ve watched families drown in the news cycle, only to end up depressed or in a panic. Others are too easygoing and ignore the bad news around them.

Rather than avoiding it, face your family’s challenges head-on.

3. Protect Your Family by Seeking Help

A fiduciary advisor will help you understand real problems that affect your family. He can help you to prioritize what’s important and address tough questions to prepare for your future.

Advisors offer solutions to help deal with today’s volatility and advise against mistakes that you might regret later on. We help our clients budget, manage and diversify their investments, and leave a legacy for the next generation.

Complex and ever-changing tax and estate laws can feel daunting, but a fiduciary advisor can make these issues manageable for your family.

So, the real question is “Are you ready to work with someone who can help you face the future with confidence?”

If the answer is yes, give us a call.  We would love to help your family!

Contact Us

[1] https://blog.aarp.org/money-talk/americans-financial-plan-is-not-to-plan  accessed on May 16, 2022. 

The post Should I Wait Out Uncertainties in The Market and Start Planning When Things Settle Back Down? appeared first on AWM.

You may be surprised to learn that you can plant a garden on as little as one-fourth of an acre that supplies a good portion of your family’s needs.

For those without any land or living in an apartment, consider microgreen kits or tower gardens. With the right lighting, you can even grow produce in a garage.

Still not convinced to start planting? Here are 3 benefits of having a garden.

Benefit 1: Better Health

Produce at the supermarket generally contains preservatives or other protections that allow for longer shelf life. Often, it comes from far distances out of state.

The downside is that produce at the store loses nutrients that could otherwise be protected if it were sourced closer to home.

Additionally, you have no control over the use of pesticides or GMO crops.

In contrast, growing your own produce gives you more control. Your food will contain all the naturally occurring nutrients. Some people even like the taste of their own home-grown fruits and vegetables better.

Outside gardens might also provide other health benefits such as exercise, sunshine, and fresh air.

Benefit 2: A New Hobby

Caring for a garden involves work, but it can be rewarding for many people.

• Choosing which seeds and coupling them with the right soil, fertilizer, time to sow, and time to harvest can be a satisfying challenge.
• Watching small seeds sprout into full-grown plants.
• Harvesting fruit or vegetables for your dinner table (or to share with your neighbor).
• Try a variety of veggies in your salad or outright new recipes.
• Growing herbs that can help soothe pain or lighten up your mood.

Gardening can grow on you as a new hobby.

Benefit 3: Your Home Garden Might Lower Your Grocery Bill

Of course, this was the main reason for your question. While the savings at first might not seem like much, consider that as you grow out your garden, you also pay less at the supermarket. Also, if you grow your own supply of your favorite vegetables, you have less to worry about in seasons of supply chain shortages.

There can be many benefits of growing a garden beyond lowering your grocery bill.

Do some research. Talk to friends and neighbors who are expert gardeners. Visit a nursery or garden store and maybe even take classes on gardening. Start small and expand your horizons as you get more comfortable. Enjoy and share the fruits of your home garden.

Free Consultation

The post My Grocery Bill Keeps Going Up. Any Suggestions? appeared first on AWM.

We do our best, but a digital life can put us in harm’s way.

If cybercrime happens to you, it’s important to know what to do and act quickly.

At its best, cybercrime can wreak havoc in your life and cause a major inconvenience. However, at its worst, cybercrime can lead to financial ruin and even threaten your reputation and/or personal safety.

What can you do?

Step 1: Take a deep breath and get perspective.

Cybercrime is a serious conflict and should not be taken lightly. You are at war with cybercriminals, who are absolutely ruthless and move fast to take advantage of their victims.

However, if you act quickly, you can help limit the damage of hacking and get your life back.

The National Cybersecurity Alliance wrote an excellent, free guide on what to do if you become a victim of cybercrime. We strongly encourage you to read through their short 2-page pamphlet.  Here is a summary of their main points:

• Cybercrime comes in many forms.
• You should report cybercrime, but you need to report it to different agencies of law enforcement.
• Gather your evidence, both paper and electronic.
• Read through tips on specific types of cybercrime.
• Take preventative measures against all forms of malware.
• Read other websites about how to fight or file a complaint against cybercrime.

Step 2: Let your financial institutions know what happened.

Call your bank, financial advisor, insurance agent, or other providers to alert them of the situation.  They might be able to offer you additional advice.

Consider also contacting the credit agencies and putting a fraud alert and in some cases, a credit freeze on future applications for credit in your name.  Hackers might attempt to exploit your weakness. They will use your data to fraudulently make credit card applications in your name.

Step 3: Change your accounts with different, more robust passwords.

This might seem obvious, but it’s a crucial step nonetheless. Most of us just don’t do it.

Change the passwords on all of your financial accounts. It’s best to keep personal information out of your passwords, so try adding symbols, numbers, and blank spaces instead.

After the dust settles, be proactive and defend against future attacks.

You can put your life back together after a cyber-attack. However, you also need to think of the future.  Take additional defensive measures to make it’s much more difficult for a cybercriminal to hack you in the future.

The post 3 Things to Do If You Are a Victim of Cybercrime appeared first on AWM.

It’s understandable to feel financially obligated to your kids when they need a little extra help, but you also want them to become financially independent. Monetary support can provide a short-term lifeline, but I have also seen this approach backfire.

1. Paying Their Bills Will Cost You.

Don’t feel selfish for focusing on your retirement savings. Every dollar you give away adds up. The more you give to your kids, the less you will have for retirement. This could put a huge financial burden on your kids if/when you run out of money in retirement.

In addition, there can also be an emotional cost. Money can strain any relationship, especially with family. Your adult kids might feel guilty and inadequate when they ask for help. As time goes on, you may begin to feel taken advantage of or underappreciated.

The truth is, supporting your kids financially could be doing more damage than good.

2. Set Them Up for Success.

It’s never too late to teach your kids good money management.

Start with an open conversation. Explain that it’s time for them to take on more financial responsibility and it’s time for you to plan for retirement.

Next, help them establish a budget and brainstorms ideas to cut their expenses and keep costs low. Come up with a plan to ween them off of your household payroll in the coming months.

Once they’re on their feet, talk about managing debt, planning for taxes, and investing their savings.

3. Find Other Ways to Be Supportive.

You have so much more to offer than money.

Financial difficulties can be emotionally taxing. Sometimes all our kids need is a listening ear, a shoulder to lean on, and some encouragement from us.

There are so many ways to support your kids that don’t require a cash handout. Maybe you have an old car you aren’t using, you could pitch in with babysitting, or help them find the best deals when they need to make a large purchase.

Be proud of what you’ve accomplished. Raising kids is no easy feat. You’ve done well, and you can still do better, starting today!

It’s not too late to help your adult kids grow into financially independent and thriving adults.

Let’s Get Started

The post Helping Your (Adult) Kids Become Financially Independent appeared first on AWM.

Happy New Year! I hope you made some wonderful memories in 2021.

The beginning of the year is a prime time to focus on understanding your money.

Are you ready to set some new financial resolutions? I encourage all of my clients to design a personalized, comprehensive Financial Plan to guide them towards their goals.

Here are a few tips to get you started:

Every Adult Should Consider Having a Financial Plan.

From my experience, families that take the time to structure a plan tend to:

1. Be more in control of their finances.
2. Have more confidence in their ability to reach goals.
3. Save more for retirement.

You might be surprised how these could impact the success of your retirement.

What Should Your Plan Include?

It’s important that your plan is comprehensive and includes:

1. Short- and Long-Term Savings Goals
2. Tax Planning
3. Investment Strategies
4. Insurance Planning (health, life, and long-term care)

Remember, your goals don’t have to be strictly business. Maybe you want to save up for a new TV or a nice family vacation. Either way, these goals should be reflected in your plan.

What Does That Look Like for Various Age Groups?

Young adults in their 20s-30s will probably focus on paying off student debt, building an emergency fund, and possibly saving up for a down payment.

Most 40-50-year-olds prioritize paying for their kids’ college, eliminating debt, and ramping up their retirement savings.

The pre-retirement crowd (usually 60+), tends to focus on maxing retirement contributions, paying off their mortgage, arranging for long-term care insurance, and preparing for a successful retirement.

How to Get Started:

Meet with a Fiduciary Financial Advisor who specializes in planning and understands tax implications. It’s important to find an advisor who will watch out for your best interest.

Together, you can design a plan that entails your personal dreams and goals and keeps you accountable.

Start working on your plan now. The sooner you start, the sooner you’ll see your plan come to fruition.

The post What Should I Include in My New Year’s Resolution? appeared first on AWM.

Before we move on to 2022, there are a few steps you can take to make sure your finances are ready to ring in the New Year.

1. Guard Against Inflation

Inflation is on the rise and purchasing power is dwindling. How can you protect your family against the rising costs of goods and services? Focus on your budget, prioritize your family’s needs, and work with a trusted professional to collaborate on a game plan.

2. Reduce Your Taxes

One of the best things to do at the end of the year is tax planning. I encourage everyone to work with a Financial Planner who specializes in tax planning. Remember, your CPA or tax preparer is working to keep you in compliance with current tax law. You need someone to help you plan ahead, too.

3. Maximize Retirement Contributions

Contributing to a retirement account helps prepare for your future, and might even help lower your tax bill, no matter where you are in your career.  If you’ve been able to save some extra money this year, consider putting those funds towards retirement. You can contribute up to $19,500 (or $26,000 if you’re 50+) to an Employer Plan and up to $6,000 (or $7,000 for 50+) to your IRA. Those who are self-employed have many options as well.

4. Use Up FSA Funds

Depending on your health care plan, you might have extra funds in your flexible spending account (FSA). Unlike a health savings account (HSA), money set aside for your FSA typically does not roll over to the next calendar year. Generally, you will want to use up those funds by the end of the year. If you’re anything like me, you have some lingering dental work to help use up those funds.

5. Focus On 2022

December is a great time to review your Financial Plan. Look at the progress you’ve made. You might need to make some changes and correct course, or you might have some extra money saved up for a well-deserved splurge. 2022 might be more complicated and if you are not starting early, you could fall behind.

If you’re flying blind, I encourage you to find a Fiduciary Financial Advisor whom you can trust. Get started on a plan so you can have confidence in your future.

Here’s your list, so be sure to check it twice. Once you’re done, it’s time to sit back and enjoy the Christmas season with your loved ones!

The post Top Tips to Improve Your Finances This December appeared first on AWM.

Host Thanksgiving on a Smart Budget

Hosts can feel pressured to entertain their guests with the most lavish Thanksgiving meal. Truth is, you don’t need to break the bank to deliver.

Thanksgiving is a potluck-style holiday at heart, so when your friends and family offer to bring something, say yes! It’s also okay to pick and choose which sides will appear on your table. Simplify your menu!

Track All Your Spending

Whether you’re into spreadsheets, money apps, or opening a designated holiday account with your local bank, track every purchase you make. Your budget is useless unless you actually track where that money is going. Don’t spend more than you are able to.

Set up a “Secret Santa” Gift Exchange

This is a great option for any gathering size. You can use websites like elfster.com to set up a gift exchange and invite friends and family to join. Each member who accepts your invitation will be assigned one person to buy a gift for.

Be Creative with Holiday Traditions

We can all agree that traditions are what make the holidays so special.  Yet, they can also be a huge financial burden. If your traditions include traveling, paying for a special attraction, or surprising your kids with extravagant gifts, you might find yourself going way over budget in the name of family.

Traditions don’t have to be expensive to be memorable. Here are some cheaper alternatives:

• Touring neighborhood Christmas lights
• Watching Christmas movies at home with hot chocolate
• Caroling
• Attending a high school production—like a play or choir performance
• Sledding/building snowmen
• Sugar cookie decorating
• Building the perfect gingerbread house
• Check out local deals on Groupon or LivingSocial

Know When to Stop

When you’ve finished your list and checked it twice, it’s time to stop shopping. No more stops at the mall to “see what they have.”

If you know your shopping itch won’t go away, try to spread out your shopping as much as you can. By planning purchases and stopping when you’re done, you can save yourself from shocking credit card bills.

The holidays should be full of fun and joy, but don’t break your bank getting there. Take care of your finances and plan smartly.

Start the Conversation

The post How to Enjoy the Holidays Without Breaking the Bank appeared first on AWM.

These lessons can span from savings to being charitable, or even understanding market value.

I always encourage my clients to engage their kids and grandkids in age-appropriate dialogue that can help pave the way for responsible savings and spending habits down the road.

1. Saving For A Rainy Day.

Challenging kids to eat through their candy slowly is good for their health but also gives them a chance to hone their budgeting skills.

It could be a tough sell at first, but their self-control will quickly pay off when they still have half their haul in mid-November and their friends have nothing left but empty wrappers.
 

2. Sharing With Others.

Your kids might not have deep pockets to support a local charity, but candy is a commodity that can be easily shared.

Some nonprofits redistribute donated candy to U.S. troops, service members, wounded heroes, and veterans. Homeless shelters and senior centers generally accept unopened candy as well.
 

3. Dealing With Taxation.

We all know that death and taxes are inevitable. This might be a good opportunity to help explain to your kids a lesson on taxes with a “mom or dad tax” on their loot (candy).

Help them understand that this tax will help support the cost of shared resources. Just keep it simple, and prepare for some pushback.
 

4. Understanding Market Value.

This might be my favorite. Kids quickly learn that different candies are worth different values. After a fun night of trick-or-treating, kids tend to haggle among their friends and siblings. They create a market without even knowing it.

Some candies are more coveted than others, hiking up the trading price. This is a great opportunity to explain market value and how quantity is not always better quality.
 

The best way to teach our kids to is to lead by example and include them in real-life conversations. Show them what it means to be charitable and the importance of saving.

Encouraging good money management habits now will set them up for a successful future.

The post How to Teach Your Kids About Money This Halloween appeared first on AWM.