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:
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.
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.
When people think of wealth, they might think of examples in film, such as Veruca Salt from the 1971 classic Charlie & the Chocolate Factory. Little Veruca had everything she wanted in life but desired one of Willy Wonka’s geese that laid golden eggs. When Wonka refused to sell the little girl’s father one of his prized fowls, the girl broke into song about how she wanted everything… and ultimately labeled a “bad egg” and sent down the garbage shoot.
Your life insurance needs are unique to your situation and can change over your lifetime. For some people, life insurance is to provide assets to raise a young family in the event of early death. Other people may use life insurance to cover their debt to ensure it is taken care of if they die prematurely. In business, life insurance could be a tool to transition ownership when the company sells or to insure a key employee whose death would profoundly affect the business.
One of the tools we are able to utilize when discussing the best course of action to secure your financial future is known as the Personal Economic Model®. Much as a medical doctor would use an anatomical model to convey medical concepts, we use the following model to convey financial concepts.
This model offers a visual representation of the way money flows through your hands. On the left, you will notice the Lifetime Capital Potential tank which illustrates that the amount of money you will control during your lifetime is both large, as well as finite. Once earned your money flows directly to the Tax Filter where the state and federal governments extract tax dollars due from earnings on your monthly cash flow. The after-tax balance is then directed to either your Current Lifestyle or your Future Lifestyle determined by your management of the Lifestyle Regulator. Determining the balance of cash flow between your current lifestyle desires and your future lifestyle requirement may be the most important financial decision you will ever make.
Each and every dollar that is allowed to flow through to your Current Lifestyle is consumed and gone forever. The goal is to accumulate enough money in the Savings and Investment tanks so that by the time you retire, the dollars in those tanks can then be used to satisfy your future lifestyle requirements. Position A would be to have enough in the tanks to live like you live today adjusted for inflation and have your money last at least to your life expectancy. That’s a win, but the icing on the cake would be to accomplish that with little to no impact on your present standard of living, and that is exactly what we strive to help our clients to do.
In working together, we can help you to address the following:
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.
On June 30, 2020, Regulation Best Interest, or Reg BI for short, officially went into effect. But what is Reg BI, exactly? Where did it come from, and how does it impact you, the investor? Here’s what to know about the new rule under the Securities and Exchange Commission (SEC).
The CARES Act (The Coronavirus Aid, Relief, and Economic Security Act) contains the legislation for Required Minimum Distributions (RMD) for those over age 70 ½ and have already started RMD.for individuals or beneficiaries of inherited retirement accounts in 2020 due to COVID-19. How will this help investors?
It’s a funny thing about advice. Everyone seems to have an overabundance of knowing what others should do, and they have no problem telling you about it, especially when the monetary gain is a motivating factor. However, there also seems to be an equal dearth of understanding about who such advice is given to. If you’re anything like us, we do not believe that advice for a “target market” is also solid advice for an individual whether they can be classified as a part of a specific target market or not. Everyone is unique and different individuals and with regard to their financial lives, but also in the way they make decisions about their finances as well. We feel that it is prudent to first understand our clients, their individual situations, and what motivates their decisions before offering advice of any kind. This provides a framework within which to begin helping our clients answer the four toughest financial questions they will face.
The answers to these questions can be given in our first ten minutes together, and they will give you an indication of where you find yourself currently with regard to securing your financial future. Our specialty is rooted in helping folks to improve their current financial position, preferably without impacting their current lifestyle, Our clients can often solve the issues uncovered in the above four questions by focusing first on dollars one could be losing unknowingly and unnecessarily without taking on additional financial risk.
We begin with the seemingly outlandish premise that a solid relationship should be the foundational starting point.