You know, the great irony of investing is that it has almost nothing to do with money. Most people think that investing is about chasing the numbers on the screen. But in reality, investing is about organizing your resources to live your best life possible.

Beyond the Numbers

If your life is entirely focused on the numbers, you’re likely to sacrifice your happiness for some random digits on the screen. And really, what type of life is that? Investing should not be about the relentless pursuit of financial gain at the expense of your well-being and happiness.

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Organizing Resources for a Fulfilling Life

True investing is about more than just money. It’s about strategically organizing your resources—time, energy, and finances—to create a life you love. When you focus on what truly matters, you can make decisions that enhance your quality of life, rather than just your bank balance.

Conclusion

So, remember, investing isn’t about the money. It’s about organizing your resources to live a life you love. By shifting your focus from the numbers to the bigger picture, you can achieve a more fulfilling and balanced life. Let’s work together to ensure your investments support your dreams and happiness, not just your financial goals.

by Franklin J. Parker, CFA

Are there indicators you can watch for to help determine when a recession is on the horizon? Turns our there are! We follow over 20 different indicators, but here are three of them.

Yield Curve

In a normal environment, you get paid more to tie up your money for more time. However, before a recession, that relationship tends to become skewed, and you get paid more to tie up your money for three months than you do for 10 years.

Typically, after that inversion, a recession is not too far behind.

As you can see from the chart, we currently have the longest and deepest inversion on record.

Index of Leading Economic Indicators

Another indicator we follow to help us forecast recessions is the Index of Leading Economic Indicators. This is actually several indicators collected into one. As you can see, it tends to peak and then fall as a recession approaches.

Currently, this index has fallen for the longest amount of time on record without a recession.

Unemployment Rate

While the unemployment rate may not be a great indicator of how many people are actually employed, using it as a recession indicator works pretty well. When the unemployment rate moves above its the average rate over the last 12 months, it tends to keep climbing, due to a recession.

As you can see, the unemployment rate has moved above its 12-month average and has been climbing.

Overall, there are several indicators people watch for to help them guage the economic cycle.

Of course, exactly how this information affects you and your portoflio is entirely unique to you and your goals. Your goals may allow you to weather losses better than someone who is within a few years of retirement, for example. That’s why we are offering a free risk assessment to help you.

Ultimately, though, there is little downside to understanding the signals indicating a recession is on the horizon, and these three indicators are a good place to start.

Building wealth is all about developing successful habits. Here’s a simple strategy to get you started.

Start Small, Think Big

This month, as you pay your water bill, utility bill, or any other bill manually, set aside $10 into your savings account. Next month, increase that amount to $15, and the following month, try for $20. The key is to start small and gradually increase your savings.

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Link Habits to Existing Actions

To create productive habits, you need to link them to something you’re already doing. By associating your savings habit with paying bills, you make it easier to remember and stick to. This method leverages your existing routines to build new, beneficial habits.

Consistency is Key

Success isn’t a one-time event; it’s a series of small actions done consistently. By regularly setting aside money, even in small amounts, you build a habit that can lead to significant savings over time.

It’s the consistency that counts, not the size of each individual contribution.

Get Support

One last thing: having someone to support you can make a big difference. Staying disciplined is easier when you have someone to hold you accountable and provide encouragement. That’s where we come in. Our job is to help you stay on track and work out the details, so you can focus on your dreams.

Conclusion

Building wealth doesn’t happen overnight. It’s about creating and maintaining successful habits. Start small, link new habits to existing ones, and stay consistent. And remember, you don’t have to do it alone. We’re here to help you every step of the way.

Your job is to dream; our job is to help you make those dreams a reality.

Hey business owners, are you feeling the pinch from taxes? You’re not alone, but I’ve got three secrets that could ease your burden.

1. Benefit Plans: Your Future, Your Savings

It might not seem like it, but the tax code is actually designed with business owners in mind. One of the most effective strategies you can implement is setting up a benefit plan within your business. This allows you to take deductions while simultaneously putting money aside for the future.

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Here’s the kicker: in many cases, you can lend yourself money from these plans if things get tight. This dual benefit of saving for the future and having a financial safety net can be a game-changer for your business.

2. Specialized Insurance Plans: Protect and Prosper

Another powerful tool at your disposal is specialized insurance plans. Policies like key man life insurance or a buy-sell agreement not only protect your business but also offer tax-deductible premium payments. These policies build cash value over time, which you can then lend back to your business if needed.

Moreover, the benefits of these policies extend to your heirs, ensuring that your legacy is protected. There are even more advanced insurance policies that allow you to accumulate significant amounts of money in a tax-advantaged way, but we’d have to talk through those in person.

3. Specialized Investments: Tax Benefits Today, Growth Tomorrow

The last strategy, often overlooked, involves specialized investments. These investments provide immediate tax benefits while also offering long-term growth potential. Although, these investments are typically reserved for folks with income of greater than $300,000 per year. These investments can be a crucial part of your tax strategy, helping you save money now and build wealth for the future.

Conclusion

If you’re a business owner frustrated with your taxes, it’s time to explore some more advanced strategies. Setting up benefit plans, leveraging specialized insurance, and making smart investments can all contribute to a more favorable tax situation. And, of course, your tax professional can and should be part of that discussion.

Remember, your job is to dream big and drive your business forward. Our job is to handle the details and help you navigate the complexities of the tax code. Give us a call, and let’s unlock the full potential of your business together.

by Matthew Tarkington

Here’s one thing I know about you: either you’re going through a storm right now, you just went through one, or you’re preparing to face one soon. Life’s challenges are inevitable, but facing them alone is never a good idea. That’s why we’re passionate about walking beside you, whether the sun is shining or the floodwaters are rising.

At the end of the day, we’re financial advisors. But to us, it’s not just about numbers on a screen. It’s about who you are as a person and helping you construct a life worth living. We believe in building relationships that go beyond financial transactions. We want to understand your dreams, your fears, and your goals, so we can help you navigate through life’s storms with confidence and clarity.

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Our approach is holistic. We don’t just focus on your financial health; we consider your overall well-being. We know that true wealth isn’t just measured in dollars and cents but in the quality of your life and the fulfillment of your aspirations. Whether you’re planning for retirement, saving for your children’s education, or simply trying to make the most of your current resources, we’re here to provide guidance and support.

We understand that every storm is different. Some are brief and intense, while others are long and drawn out. No matter the nature of the storm you’re facing, we have the tools and expertise to help you weather it. From creating a solid financial plan to offering emotional support during tough times, we’re committed to being your trusted partner.

So, if you’re feeling overwhelmed by the challenges ahead, remember that you don’t have to face them alone. Reach out to us, and let’s work together to build a resilient and prosperous future. Your journey is unique, and we’re here to help you navigate it every step of the way.

I hope to meet you soon and start this journey together. Let’s weather the storm and come out stronger on the other side.

by Franklin J. Parker, CFA

What’s the single biggest mistake people make when picking stocks? In my 20-year career, one mistake stands out above all others: not having a cohesive strategy.

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The Importance of a Cohesive Strategy

Without a cohesive strategy, your investment decisions can become erratic and unfocused, leading to potential trouble. But how do you know if you have a cohesive strategy? Here are some signals to watch for:

• Seeking Advice Constantly: If you’re frequently asking others what to buy and when to buy it, you probably don’t have a strategy.
• Indecision on Investments: If you’re agonizing over whether to enter or exit an investment, it’s a sign that your strategy might be lacking.
• Lack of Evaluation Skills: If you don’t understand how to evaluate an investment opportunity, you don’t really have a strategy.

Developing a Cohesive Strategy

If you’re worried that you don’t have a strategy, you need to take one of three actions:

1. Borrow a Strategy: Learn from successful investors and adopt their strategies.
2. Build Your Own Strategy: Develop a personalized strategy based on your financial goals and risk tolerance.
3. Buy a Strategy: Hire a professional to help you create and implement a cohesive investment strategy.

Conclusion

Having a cohesive strategy is crucial for successful investing. It helps you make informed decisions, reduces stress, and increases your chances of achieving your financial goals. If you’re interested in discussing our strategy, we’d love to chat with you. And we’re also keen to hear what’s working for you, so feel free to drop a comment below.

Remember, investing without a strategy is like sailing without a compass. Let’s work together to chart a course for your financial success.

When it comes to managing your investments, losses can have a bigger impact than you might think.

The Impact of Early Losses

Imagine you retired in 1981 with $500,000. Your financial advisor told you that you could safely withdraw 4% of your savings each year for the rest of your life. Following this advice, you would have ended up with significantly more money in 2010 than you started with, thanks to favorable market conditions.

Now, let’s change the scenario. What if you retired in 1930 with the same $500,000 and the same 4% withdrawal rate? That scenario doesn’t turn out nearly as well for you.

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But wait! Isn’t that because of the Great Depression in 1930??

Well, the average annual return from 1930 to 1959 was 12% — which was the same annual return from 1981 to 2010!

Despite the same average annual returns you would have ended up with about half of your initial savings after 30 years if you started in 1930.

Why? Because the early years of the Great Depression were so devastating that your portfolio never fully recovered.

Sequence of Returns Risk

This example highlights a critical concept known as “sequence of returns risk.” It’s not just the average return that matters, but the order in which those returns occur. If you experience significant losses early in retirement, it can drastically reduce the longevity of your portfolio, even if the overall average return is strong.

Understanding how much you can afford to lose before it becomes detrimental is a key part of financial planning, though very few advisors do this level of analysis. In fact, this is an area of research pioneered by our founder. [1] [2]

Let’s Talk About Your Future

We’d love to help you navigate these complexities and create a plan tailored to your needs. At the end of the day, your job is to dream about your ideal retirement, and our job is to help you work out the details. By understanding your goals, we can develop a strategy that aims to protect your investments from significant losses and ensure a comfortable and secure future.

Investment losses matter more than you might think, especially when they occur early in your retirement. By recognizing the importance of sequence of returns risk and taking steps to mitigate those risks, you can better protect your dreams.

Let’s work together to create a plan that helps you navigate these challenges and secure your financial future.