Category: Weekly Economic Update
The hamster wheel literally describes the concept of lots of activity but making no progress. In times of crisis, either real or imagined we are encouraged to do something. If your house is on fire or if you witness a car accident you must do something and quick. Why is it that doing nothing when it comes to our investments is so difficult. When clients ask "what are you doing..." sometimes the better question is "is there anything that needs to be done" related to our investments? Are you OK with doing nothing when nothing needed to be done?
I’ve been asked many times “if Dave Ramsey says to fund a Roth IRA, why would I ever choose a traditional IRA”? Well, much like any advice, there is no absolute in reference to what will work best for everyone in every situation. Let’s examine the main characteristics of both types of IRAs. As...
Just like we do not know when we are in a recession (until after it has started), the markets begin their recovery in the midst of bad news. It is critical top your wealth to understand this fact: the markets (stocks & bonds) typically reflect where the economy is headed in 3-6 months from today. If you wait for the news to tell you the markets have recovered, the economy has turned around you probably missed out on a good portion of the initial recovery.
There should be no shock to you when I state that 2022 has been a tumultuous year for the stock market. Seemingly everything that could happen to negatively affect the market, has. The lingering pandemic, inflation, monetary policy tightening by the Federal Reserve, Russia invading Ukraine, investor panic, and the cyclical mid-term election impact….? Mid-term...
South Carolina taxpayers can deduct 100% of their contributions on their state tax returns (one of only four states that offer 100% of contributions to be claimed). There are two types of 529 plans: prepaid tuition plans and education savings plans. Prepaid Tuition Plans allow the account holder to purchase credits for future use at...
Are you sinking your funds? We talk about budgets a lot around here. We believe that having a budget for your monthly expenses is terrific! But, don’t forget you have some expenses that are not monthly and some that are definitely not regular. Some bills will only come to your mailbox once a year. Bills...
$10,000 is still $10,000 = Capital Preservation $10,000 still buys what it did = Purchasing Power Preservation The distinction is vital to your long-term wealth! Not a month goes by that we do not have a call where someone inquires about investing and includes the phrase, “but I don’t want to lose my money“. The...
Recently my 5-year-old son asked my wife and me why he had to turn off the lights when he was not using them. We explained that it costs money to operate the lights, and he was astonished, “we even have to pay for that!!??” We realized then that we have a lot to teach him...
We all work hard. Some of us work four 10-hour days. Some work five 8-hour days. Some choose to work 12-hour days all the time. But whatever you do… you put in labor and expect a fair return for your effort. You use that return to plan, budget, and live life to the fullest. Back...
Who do you think you’ll be in a year? 5 years? 20 years?
One of the big problems with setting goals, especially financial ones, is that we’re struggle with imagining our future selves.
Remember what you imagined you’d be as an adult when you were a kid. I’m guessing there are some gaps between that dream and your current reality.
When we talk about financial goals, we’re often talking about long timeframes.
by Dave Conley on October 21, 2022.
