Quick IF’s | Week of November 7th | Market update, annuities, budgeting, goal planning, debt management
Welcome to Quick IF’s! Think of these as my thought bubbles I have throughout the week. Read these nuggets of information and book a call with me if you want to learn more.
Market update
This week the markets saw some bullish momentum due to the consumer price index(CPI) for October showing a 7.7% increase. This is first time since February that the CPI fell below 8%. Investors saw this as a sign that the Fed could ease off the pedal for rate increases going forward. Comments from Fed officials indicate they are holding strong on their plan for aggressive rate hikes. San Francisco Fed president Mary Daly was quoted, “one month of data does not a victory make, and I think it’s really important to be thoughtful that this is just one piece of positive information.” Daily market volatility continues to be driven by the speculation of what the Fed might do next. Focusing on the short-term movements in the market are detrimental to long-term view of your plan, if yours was created with the intention of withstanding market risk. I guarantee there will be market volatility in the future. IF the markets just went up in a straight line, I wouldn’t have a job. Continue to have confidence in your plan and keep investing your cash during the volatility to average into your investments if you can.
Annuities
Annuities have a time and a place in a plan. Always keep in mind they are insurance products. Not investments. They should be used to provide an income stream to meet your bare necessity needs. An entire portfolio of annuities reduces diversification and exposes you to other types of risks. Using them in a portion of your portfolio later in life(late 70’s/early 80s) is a great way to guarantee a level of income.
Budget
Budgeting for a family can be difficult. There are bills, short-term goals, and the ever growing pressure to save for your own retirement. Luckily, there are a bunch of good and free apps to use to track and improve your budgeting skills. Personal capital and Mint helped me when I was young to get started. But, using these apps alone won’t help you stay on track. Working with a qualified professional will help you stay accountable and motivated to get the job done.
Emergency fund
A recent study found that todays consumers average emergency expense is about $1,400. 59% of Americans are living paycheck to paycheck, which means they do not have the savings to cover any emergencies. This should stress the importance of budgeting and the need for radical sacrifices required to improve ones budgeting skills.
Goal Planning
You have a greater chance of achieving your goals if you physically write them down. Writing down goals is a classic way for financial planners to help clients stay motivated to complete the objective because it narrows your focus, clears your headspace, significantly reduces stress, and you can create a system to tackle tasks associated with the goal. IF has planning software available to write and track your goal progress.
Debt and earnings management
According to nerdwallet, the average debt held by a person with a bachelor’s degree is almost $29,000. The average annual earnings by someone holding a bachelor’s degree is almost $68,000. Buying a house is starting to look like a distant dream to most millennials. Work with IF to build a budget now to bring that dream closer to reality.
Quote of the week
“When it rains soup, you need to have a spoon ready. And we had the spoon ready.” - Guenther Steiner, Team Haas Formula 1 team manager.
F1 is a sensational sport but no one in sports is more dynamic and interesting than Guenther Steiner. If you want to smile ear-to-ear, look up some Steiner highlights.
Fiduciary Mission
At Integritas Financial, we are committed to providing fee-only, fiduciary financial planning services that are tailored to the unique needs of young professionals, particularly millennials. Our experienced planners work with you to develop customized financial plans that address key areas such as estate planning, trusts and wills, retirement, workplace benefits, education funding, student debt, and buying a house.
We believe in transparent, client-focused service that puts your financial goals at the center of everything we do. As a fiduciary firm, we are dedicated to acting in your best interests, and we never sell products that charge commissions to clients.
Our goal is to help you achieve a stable and prosperous financial future by providing comprehensive financial planning services that are tailored to your individual needs. Whether you're just starting out in your career or you're already well-established, we can help you navigate the complexities of financial planning and create a roadmap for success.