Simplicity Digital Advisor

23
Nov

Giving Thanks and Giving Back

As COVID-19 continues to shape our lives and our future, many Americans give thanks and give back to others less fortunate during this pandemic. Some have had personal experiences that lead them to ease others’ financial stresses by providing directly or through other institutions. Donors are giving to resolve the inequities in our society that others are facing during this time.

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19
Nov

The Golf Caddie Analogy

Throughout the years, I’ve found that people tend to have a wide range of expectations that come to mind when they hear the term “Financial Advisor.” And it’s no wonder that sometimes even the advisors themselves have differing opinions on the term, and certainly different approaches to serving their clients. I’d like to outline what it means for me to be a financial advisor for my clients, and it’s not dissimilar to the relationship a golfer has with their caddie.

The Caddie’s Role in Golf

For a touring pro, there is a very unique relationship between them and their caddie. Not only does the caddie carry the players bag, but they also carry with them a wealth of wisdom about the course, the weather conditions, the player, the field, and the game in general. Perhaps more importantly, they also carry the player’s trust to give solid, actionable advice even in tense situations when the stakes are highest. A good caddie provides a reliable sounding board for the decisions ahead, and is often the voice of reason in difficult situations.

My role as a Financial Advisor

While there is no official rule that states a golfer must use a caddie, playing without such a valuable resource can put the player at a competitive disadvantage. Financially speaking, trying to “carry your own bag” by making your own investments and financial decisions might not be the best idea either. The financial advisor, like the caddie can lend a special knowledge of the course, the dangers, layup positions, club selection, and the sucker-pin placements. It’s handy information to have when trying to decide whether to go for it or hold back, especially when everything is on the line. They are also there to help you to eliminate mistakes and avoid unnecessary penalties or even disqualification. A trusted caddie with intimate knowledge of all of the factors surrounding a golfer’s next shot is just as valuable as a good financial advisor when it comes to evaluating your next financial move. And, it can make all the difference in determining where you finish.

Fuzzy Zoeller, after winning the 1979 Masters at Augusta remarked:

“I never had any thought the whole week. I figured my caddie (Jerry Beard) knew the course a lot better than me, so I put out my hand and played whatever club he put in it. I’d say “How hard do I hit it?” He’d tell me and I’d swing. The guys who come down once a year and try to get smart with Mr. Jones’ course are the dumb ones.”

Glittering generalities aside, sometimes the smart play is to simply take advantage of the resources available to you.

In addition, there are only two ways in which someone in the financial services business can help you expand your Circle of Wealth™. The first way would be to help you select better financial products offering perhaps higher rates of return, that often require you to assume more risk.  The second way would be to help you become more efficient with your financial resources (savings, investments and cash flow spending).  Solid Money Solutions specializes in performing the latter contact us today to get started.

16
Nov

2020: A Timeline Recap

2020 has been unlike any other thanks to the COVID-19 pandemic, our strange stock market, and social unrest leading up to the Nov. 3rd Presidential Election. This timeline recap is for you to see what we have already been through as we look toward a brighter future as we assess what we have learned from this year:

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9
Nov

How to Adapt and Financially Prepare for 2021

If we could look in a crystal ball, we would have a clear picture of how we should financially prepare for 2021. We can only guess what lies ahead for us next year basing on our experiences this year. 2020 has been tough on many- business closings, lay-offs, disruptions to learning, health and social concerns, and financial stress.

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2
Nov

Holiday Savings Strategies 101: Plan and Execute

The holiday season is the time of year when personal expenses are likely to increase. Whether it may be travel expenses, events, or retail spending. Start preping your holiday savings strategies now. The 2020 holiday shopping season spend is expected to be substantial, but likely less than 2019’s Brick-and-mortar retail and e-commerce spending of $1.007 trillion. Today, holiday shoppers spend less time looking for gifts, but spend more money, especially when shopping online. On average, shoppers in 2019 distributed their holiday spend among the following:

  • $596 on experiences
  • $511 on gifts
  • $389 on non-gifts

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26
Oct

Fall Festivities and Socializing- Safely.

Socializing is critical for mental health, and people who associate with others live longer. Research also concludes that isolation can often lead to loneliness, depression, and other health problems. Especially now, during COVID-19, our desire to connect with others is heightened. Before the fall season changes to winter and cold weather arrives, get out and enjoy the season- but do so safely. Here is a list of ideas to safely enjoy fall festivities until we experience brighter days ahead in a post-COVID-19 world:

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19
Oct

Why My Clients Choose to Work With Me

If you have had any previous experience with a financial advisor, chances are the conversation revolved around how much money you have, where it’s located, we can do a better job. It would seem that most investment firms share the same singular focus of trying to find better products that earn a higher rate of return which often takes more risk. For all of the fancy analytics and mathematical acrobatics available today, nobody has yet figured out how to predict the future. Earning higher returns is certainly not a bad thing, and something we can help you with as well, however, we believe we should help our clients avoid money they could be losing unnecessarily before considering options that require more risk. Return is not the only thing to consider when evaluating the efficiency of your own personal economic model.

There are three types of money:

The money used to secure your financial future must somehow come from these three areas. Accumulated money represents the dollars you currently have invested and are currently saving. You could focus your attention on these dollars in order to find better investments that potentially pay higher rates of return.

Lifestyle money represents the dollars you are spending to maintain your current standard of living: where you live, what you eat, where you vacation etc. For many people, this is where the conversation ends. While everyone wants to solve their financial problems reducing their current standard of living is not a popular option. What if there were a way to address the issue without having to incur more risk or impact your present lifestyle? I’m glad you asked! Transferred money represents the dollars you may be transferring away unknowingly, and unnecessarily. Such as:

  • How you pay for your house,
  • What you pay in taxes
  • How you fund your retirement accounts
  • Non-deductible interest
  • How you pay for major capital purchases like cars, education, weddings, and other large expenses.

There are really only two ways a financial advisor can be of help to you:

  1. By finding better products that pay higher rates of return requiring more risk
  2. By helping you be more efficient by avoiding unnecessary losses

I believe that there is more opportunity to serve my clients by helping them first avoid the losses, before trying to pick the winners. My focus with clients begins with eliminating the involuntary and unnecessary wealth transfers. Consider this. There are two ways to fill up a bucket that has holes in it. One way is to pour more in, and the other is to first plug the holes, then the bucket will fill up even if the flow is just a trickle. Which strategy more closely resembles the way you are currently approaching financial management?

In addition, there are only two ways in which someone in the financial services business can help you expand your Circle of Wealth™. The first way would be to help you select better financial products offering perhaps higher rates of return, that often require you to assume more risk.  The second way would be to help you become more efficient with your financial resources (savings, investments and cash flow spending).  Solid Money Solutions specializes in performing the latter contact us today to get started.

19
Oct

The 2020 Election: Check Your Emotions and Stay Invested

November third is fast approaching, and you may be wondering how the 2020 Presidential election might impact your portfolio. Here is what we know from a historical perspective:

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12
Oct

Now is the Time to Schedule Your Fall Financial Review

October is the financial planning month and a great time to meet with your financial professional to ask questions, review policy and portfolio performance, and make decisions that keep you on track with your goals. Regardless of your age, it may be a suitable time for you to schedule a financial review.

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5
Oct

Lowering Interest Rates: Good for the Economy and the Markets?

Interest rates can positively or negatively affect the U.S. economy, the stock markets, and your investments. When the Fed changes the Federal Funds Rate (the rate at which banks can borrow money to lend to businesses or you), it creates a ripple effect. In this article we take a look at how lowering the interest rate can impact you.

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