By creating positive cash flow and the right financial strategies, investors can grow their wealth. With more cash comes the opportunity to create more flow, so it’s important to understand that cash flow is simply the difference between the amount of money that comes in and goes out each month.
To become a cash flow king, investors should prioritize expenses and create a system to manage them. A good management method is to separate spending into three buckets and establish accounts for each: fixed expenses, discretionary expenses, and savings/investments. Once the amount that needs to be allocated to each bucket has been determined, automatic transfers from a main checking account should be set up. This will provide a spending limit for discretionary expenses that will make a budget plan easier to follow.
Work with your Enso | Sonoma financial advisor to make saving and living within your means a priority!
Having enough money during retirement is a big concern for many investors. Since a large amount of workers in their 50s and 60s are behind on savings, inadequate preparation can be a common source of stress. Fortunately, running out of retirement funds is avoidable with this strategy.
The National Bureau of Economic Research has determined that working a few extra years makes a more positive impact on retirement income than increasing contributions in the last decade of one’s career does. Not only does the extra time allow investors to keep funding their retirement, it also postpones withdrawals, therefore giving the money more time to grow. Working longer can also boost Social Security benefits, which furthermore leads to a higher income stream after work.
As you prepare for or enjoy the perks of retirement, ask your Enso | Sonoma financial advisor for helpful advice.
American investors are known to avoid financial decisions, even when it’s not in their best interest. Trends in household savings and retirement plan participation rates are great indicators of this risky behavior. While most believe financial decisions to be complicated, time-consuming and unrelated to feelings and emotions, it’s important to remember that a different perspective can give you the motivation to take control of your personal finances now.
When making financial decisions, incorporate these actionable tips to create a sense of urgency:
For helpful guidance in making financial decisions, work with your Enso | Sonoma financial advisor.
Warren Buffet, one of the most successful investors of all time, said that “a diversity of commitments creates a most attractive package of safety and appreciation potential”. As investors work to improve their financial portfolios, such diversity should be approached with caution because the security and risk associated with different investment options can vary.
Mutual funds are collective pools of money provided by individual investors for money managers to invest in various securities. Since funding is a group effort, each shareholder or investor benefits and loses equally, and expenses are shared. While mutual funds are diversified between stocks, bonds and other securities, they are typically less risky than individual stocks or bonds.
Diversifying your commitments is a great strategy, but the risk of each opportunity should be carefully considered. Work with your Enso | Sonoma financial advisor as you make these important decisions.
If hard work, patience and/or luck have brought significant wealth into your life, there are a few things to keep in mind. One is that you must continue to manage your personal finances wisely. As you struggle to manage dilemmas, such as people asking for financial help or being approached with investment opportunities, your long-term success must remain the priority.
Living below your means, spending slowly, and creating a reasonable budget can help you maintain your wealth over time. Paying off high-interest debt and avoiding new loans, other than a fixed-rate mortgage, can also help keep money in your pocket. With new wealth comes the temptation to make risky financial decisions, so be sure to consult your Enso | Sonoma financial advisor before making a commitment.
In a time of trade wars and tariff talk that stem from trade-related trauma and politics, it’s easy for good news and cap gains in the stock market to be overlooked. Fortunately for investors, American companies are soon to present their second-quarter earnings-reports, and positive results can give newfound strength to equities. If most of these organizations perform well and executive management diminishes the threats of rising trade tensions, 401(k)s can see a boost as stock prices rise.
With the threat of a trade war between the U.S. and its trading partners lingering, Wall Street will pay close attention to how top corporate executives think this will affect their business results. Stay tuned as earnings season will confirm just how resilient the U.S. economy can be. As you observe your current investment performance or consider new ones, be sure to discuss trends with your Enso | Sonoma financial advisor.
As cryptocurrency has the potential to be disruptive technology, it’s important for investors to approach it cautiously. Blockchain in particular is in the early stages of development, but as the technology evolves, investors may experience high gains and losses. With the introduction of new funds that provide cryptocurrency access, investors should be aware that the future is unknown.
About 10 funds that include both exchange-traded funds and mutual funds offer some exposure to blockchain. Due to their volatility, the Securities and Exchange Commission doesn’t currently allow these funds to invest directly in cryptocurrencies. Investment management company, Morningstar, doesn’t cover these funds and has yet to rate them. In your navigation of the cryptocurrency landscape, be sure to discuss all factors with your Enso | Sonoma financial advisor.
Although life expenses are constant and often unexpected, investors can build a strong financial portfolio by avoiding common financial mistakes. Even if you’re already dealing with financial hardship, the right decisions can help prevent further damage. Creating a leaner lifestyle, spending within your means, building home equity, and investing on a regular basis are all ways to increase your financial strength.
Start by monitoring little expenses that add up quickly and seriously consider any new expenditures. Having a plan will also help you achieve a strong financial future. Take action now by developing a sound financial plan with your Enso | Sonoma financial advisor. Clarity of your current financial standing will help you achieve your future goals!
Depending on the investor, a splurge can include a fancy coffee habit or big-ticket item like a new boat. Regardless of your preference, this type of special purchase can be a good way to reward yourself and help you achieve your financial goals, if done wisely. Be sure to consider whether or not you have the following before opening your wallet:
In addition to the strength of your financial portfolio and potential risk of the purchase, you should consider if the item will give you long-term happiness, you’ve done enough research, and you’ll be able to avoid overspending. Ask your Enso | Sonoma financial advisor for guidance in creating an investment plan that allows you to spoil yourself, you deserve it.
Along with many large companies, the Social Security Administration has been a favorite target of identity thieves. As the skills of cyber criminals strengthen, this issue will continue to exist as Baby Boomers age. Once they obtain a Social Security number and other personal information, they file for benefits in that person’s name. While the SSA doesn’t release information on incidents related to identity theft and benefits, a 2015 report from the Inspector General reflected that about $20 million in benefits were sent to the wrong bank accounts. Whether or not you are already receiving benefits, you can be a potential victim.
To protect yourself from the threat of identity theft and lost Social Security benefits as a retiree, preventative actions must be taken as soon as possible. It’s a good idea to set up a MySocialSecurity account at www.socialsecurity.gov. This account will help you estimate your benefits, review the accuracy of your earnings history and check any activity related to your Social Security number. You can alternatively call Social Security’s toll-free number to gather this information. For those already receiving benefits, consistent monitoring of bank deposits is necessary. If a deposit isn’t made on time, contact Social Security immediately.
Collaborate with your Enso | Sonoma financial advisor to create a plan that will protect you from lost investments or retirement benefits.