Much like conscious consumption can positively impact one’s physical health, a budget can benefit an investor’s financial health. As self-improvement is pursued, sustainable practices must be put in place to help maintain healthy financial habits. Building a budget through automation is one of them.
Since budgets are traditionally used to determine how and where to curb spending, they tend to require a lot of time and can make money management less enjoyable. Instead, this article suggests a better way to ensure savings habits and debt repayment: budget automation. These four steps are an investor’s guide to automating a few different financial goals:
Automated budgeting is a great tool for the modern investor. Work with your advisor to determine your financial goals, build a budget and get started automating!
Many investors spend most of their lives saving for retirement but are unsure of how to turn the capital into actual income once their career comes to an end. Here are five ways to do it:
All of these methods have pros and cons, read this article to learn more. As you prepare for or take your first step into retirement, discuss your options with your advisor to help create a plan that works best for you.
As you navigate the constantly changing world that we live in, it’s important to engage in self-reflection often. In addition to the goal of fulfillment, action should rank highly in your everyday life. By taking action personally, professionally, and financially, you may feel more purpose and benefit your wealth portfolio.
Former NFL player and current professional baseball player, Tim Tebow, has made a great life for himself by taking action. At just 30-years-old, his resume includes athlete, sports analyst, author, and philanthropist. In order to live a better life, he encourages everyone to ask themselves on a daily basis, why not today? Although it’s in our nature to hesitate before taking a leap, failure is the worst thing that can happen, and Tebow says it’s not that bad.
Taking action financially can be risky, but it can also reap great benefits. Working with your advisor to create a strong plan for your wealth decisions will help mitigate risk and bring you peace of mind.
Following a relatively calm period, the stock market has been increasingly volatile in recent weeks. Its decline has many investors wondering what’s in store for their portfolio. Fortunately, volatility is a normal part of investing, especially in stocks.
Data shows that on average, stock markets have similar returns after highs and lows. Therefore, the recent market changes show little indication of how it will perform in the future. Instead of increased anxiety, investors should experience appreciation for market volatility, as it reflects changes in capital markets.
As the magic of the Olympics is enjoyed around the world, one can only wonder what these amazing athletes do after their quest for gold. Following years of endurance and dedication, some have built sustainable wealth for themselves. This is a great accomplishment, however, for those who make bad financial decisions or unfortunately endure injury, this asset can be depleted very quickly.
With big dreams and little time, it’s imperative that athletes rely on one of their greatest resources, a financial advisor. Their similar characteristics of perseverance and commitment make financial advisors the best coach in proactively managing money. Interestingly enough, some former Olympians have become financial advisors because of the powerful financial lessons they learned throughout their pursuit of the coveted gold medal.
Whether you’re an athlete or not, the right financial advisor can assist you in making big decisions related to your wealth. As you embark on or continue your personal quest for gold, make sure you have one to guide you along the way.
Amidst current events and changing trends, fulfillment has become quite a buzz word in the financial community. As fiduciaries and their clients work together to achieve financial goals, the goal of fulfillment often comes into play. While building wealth and making decisions are both important factors in financial planning, our tagline of translating wealth into fulfillment is one of the most important.
The purpose of a financial advisor is to create an environment in which people feel more fulfilled. Money management isn’t necessarily fulfilling, but the moments along the way are what can lead to a fulfilled life. Instead of worrying about saving money, why not rely on your advisor’s plan and use what you can to create a life of memories? By being both present and in the moment, you can find your best and most fulfilled self. This article says that “when you're immersed in the present moment, your productivity and happiness will skyrocket.”
Through enlightenment and a strong relationship with your fiduciary, you can discover a plan that provides peace of mind, and ultimately aids you in translating wealth into fulfillment.
As the number of 401(k) savings accounts with a balance of $1 million or more increases, the behavior among investors has changed. Almost 30 percent of savers increased their contribution rate last year, giving financial services company Fidelity its highest average 401(k) contribution rate in almost a decade. The rate of female 401(k) millionaires has also increased significantly in recent years, climbing 10 percent in 12 years.
These positive trends are exciting, but even 401(k) millionaires may not yet be ready for retirement. Returns have been high for those with a 401(k) invested in the stock market, but the financial crisis of 2008 should remind us of how quickly trends can change. Instead of taking money out in response to the momentum, investors may benefit more from continuing to save. An investment account with a proper allocation of stocks, bonds, and different asset classes can also help mitigate risk. Consider your financial plan now to help guide you towards retirement.
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Following a three-day stalemate, Congress voted to reopen the government this Monday. The Senate ultimately agreed to pass a spending bill that funds the federal government for three weeks, and supports the Children’s Health Insurance Program for six years. The Senate is also expected to negotiate an immigration deal and vote on a bill within the three weeks of open government.
While this brief reopening shows that the government is making progress, there may still be a potential threat to financial market safety as budget caps are finalized. In addition to an immigration deal, Congress must decide on a permanent 2018 spending deal. Stocks can be a good option for investors during volatile times like these. Since government shutdowns tend to be short-lived, stocks are likely to experience little negative impact.
See the chart in this article for a view of stock market trends during past government shutdowns.
For the first time since the fall of 2013, the government shutdown this Saturday. After the Senate’s attempt to pass a short-term spending bill failed, the American government became frozen, just in time for President Trump’s one-year anniversary of being in office. If the government isn’t reopened by Congress soon, investors can potentially lose part of their trades and funds protection.
Typically, a shutdown occurs in the fall when Wall Street’s top regulator, the Securities and Exchange Commission, still has money from the previous year. Since this unexpected freeze has occurred in the winter, the agency will only be able to remain open for a limited number of days. This has the chance of cutting into the funds that provide a critical safety net for the financial market. The outlines of a potential deal are currently being worked out within the Senate, but the American public can only wait to see the effects of this decision, or lack thereof.
Additional Shutdown Impacts
Following the implementation of a new tax bill, American employees will likely benefit from a paycheck boost in February. This week, the U.S. Treasury released its income tax withholding tables which reflected changes caused by the Tax Cuts and Jobs Act. Overall, the new legislation increased the standard deduction, removed personal exemptions, and reduced individual income tax rates.
As you prepare for tax season this spring, you should review your W-4 to ensure that you’re deducting the right amount of taxes under this new legislation. If too little is withheld, you’ll owe taxes. The goal is to reside in the middle of those receiving big refunds, and those with big balances due. Read this article for additional information on tax changes and how to navigate the new landscape.