News and Financial Insights
10 Financial Moves for 2021 to Do Now
Happy New Year! The start of a new year is a great time to make financial moves that benefit your life in 2021 and beyond. Let’s get started. Starting the New Year with these 15 tasks in process or completed can make a financial difference to you and others:
Financial Wellness- How Do You score?
If you do a Google search for financial wellness, you will find many definitions or explanations. Financial wellness doesn’t have just one meaning because it means something different to each person. Financial wellness is a broad term that encompasses these key areas:
Smart Tax Planning for 2021 & Beyond: What You Need to Know.
The IRS released its breakdown of marginal tax rates for 2021 in December 2020. Consistent with the previous year’s notifications, tax rates adjust almost yearly basing on inflation. Check out these smart tax planning tips.
What You Need to Know: 2021 Social Security Benefit Changes.
The Social Security Administration has again approved a cost-of-living adjustment (COLA) for the Social Security benefit starting in January 2021. The increase of 1.3 percent is calculated based on the year-over-year rate of inflation and will increase the average American worker’s benefit by about $20 per month.
How to Deal with Post-Election Volatility
With the election over, you may be concerned about post-election volatility as we enter 2021. Regardless of politics, short-term stock market results can vary depending on factors, including gridlock in the House and Senate and a newly elected future President Biden, who will take office in January 2021.
2020 Year-End Checklist
It is officially the fourth quarter, and while many cannot wait until the “unprecedented times” of 2020 are over, there is still a bit of housekeeping you will likely want to do before ringing in the New Year. Check these items off your financial year-end checklist before year-end to help keep you financially on track for 2021:
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.
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.
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:
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.
