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20 Second Advisor: Bear market & what can I do about inflation?
We are now technically in a bear market (investment markets down 20% from their peak). Some of the recent downward pressure is due to inflation expectations and rising interest rates. I was listening to a podcast recently that was explaining the Federal Reserves’ role in trying to curb inflation. It made me think, “what can…
Read More20 Second Advisor: Savings Subaccounts Trick
In working with clients, we have found this trick to be super helpful and provide additional peace of mind. We all have non recurring expenses that happen randomly or every now and then. Some examples include, travel, home repair, car repair, medical, gifts, insurance premiums, etc. These can cause stress because they don’t happen on…
Read More20 Second Advisor: 20 year-old money mistakes
You are in your 20s. Oh the age where you just graduated from college, are starting to earn a paycheck, and living on your own. While the novelty and newfound freedom is fun, make sure to avoid these pitfalls in your 20s: Spending more than you make Using credit cards and not paying them off…
Read More20 Second Advisor: Getting prepared for unemployment
Unemployment probably never crossed your mind until COVID-19 hit. If you or someone you know may be affect, here are a few practical steps you can take to make sure you are prepared: Cash is king. Make sure to prioritize beefing up your emergency cash savings. We recommend having 3-6 months worth of expenses set…
Read More20 Second Advisor: 2020 contribution limits
The IRS has announced contribution and benefit limits for 2020. Here is a summary of the updated limits 401(k), 403(b), most 457 plans, and Thrift Savings Plan: contribution limit is increased from $19,000 to $19,500. Catch-up contributions: for employees aged 50 and over who participate in these plans is increased from $6,000 to $6,500. SIMPLE…
Read More20 Second Advisor: Vacation Home – Rent or Buy?
It’s summer time. And that means vacations. Families feel the draw of buying a 2nd home while they’re on vacation. On the trip to Florida, couples may think, “Wouldn’t it be great if we had a beach house?” Before you dig into the financials of buying a 2nd home, here are the top non-financial questions…
Read More20 Second Advisor: Make it happen in 2019!
It’s the most wonderful time of year. That time when you gather with family, celebrate the holidays, and dust the cobwebs off your old budget. But, seriously, I love this time of year. We are looking into the new year and trying to guess/dream/figure out what we’d like to accomplish in 2019. Vision is the…
Read More20 Second Advisor: Midterm elections and what they mean for markets
While it can be easy to get distracted by month-to-month or even one-year returns, what really matters for long-term investors is how their wealth grows over longer periods of time. Exhibit 2 below says a lot. It shows the hypothetical growth of wealth for an investor who put $1 in the S&P 500 Index in January 1926.…
Read More20 Second Advisor: Are you planning on putting your child through college?
According to recent data published by the College Board, the annual cost of attending college in the US in 2017–2018 averaged $20,770 at public schools, plus an additional $15,650 if one is attending from out of state. At private schools, tuition and fees averaged $46,950. Here are some quick tips as you start thinking about…
Read More20 Second Advisor: When is the best time to invest in the stock market?
The media would have you think there are dozens of reasons to buy into or sell out of the market, but what the hard data shows is that most of the time, you should stick to a long-term investment strategy. Here are a few nuggets of wisdom when it comes to investing: I (the advisor)…
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