Thanks for reading. I don’t claim to be an expert, but I think my “plain spoken Nebraska common sense” could be helpful. I think we may all agree that the world needs more common sense! The place we might disagree which wisdom qualifies and which doesn’t!
Our mantra: Focus on the things that you can control that will bring more peace, love, joy and meaning to your life! When you’re on your deathbed, those are the things you will remember and treasure. You will regret having wasted time on other things. That being said - don’t put pressure on yourself to be perfect - your loved ones will see and appreciate your efforts and they don’t expect perfection. Do the best you can! Celebrate your progress!
By no means are you ever “done” - this mantra is never fully achieved. Any movement toward it is worthwhile effort.
Personal Financial: GET AN ACTUAL PLAN IN PLACE THAT INCLUDES CASH FLOW PROJECTIONS THROUGH END OF LIFE. PLEASE!
It’s a huge responsibility to help families and 401k participants with their personal finances. I sleep just a little bit better each time another one of my clients gets their financial plan up and running on the Right Capital platform. Some of my clients want to focus their energy on the current market conditions. A well diversified portfolio matched to your risk tolerance and goals will do just fine long term (and are designed for different market conditions) and you can’t control the market. Get a financial and estate plan in place!
Focus on planning - which you can control. Right Capital, the financial planning platform, takes into account how your plan will do unfold under all market conditions!
The other very important type of planning is Estate Planning. The online tool trustandwill.com most likely will work fine for you. If your situation is more complex, or you are not in favor of using an on-line tool - contact us and we’ll refer you to a local attorney. Get that done and you will elevate your financial peace of mind. You have to stay on top of it over time and the online method works better for that including adjust for moving across state lines if that may apply.
Business Financial: Succession planning, especially if your business is marketable!
Rental Property: If the overall numbers are working well enough - great. If not, or if you’re getting weary of being a landlord (business owner) - consider another path. Be realistic that it is not “passive income” - it’s actually a small business.
Market Reflections: Markets have trended down in 2022, inflation is high, but abating, job market remains strong. 2023 is not going to be a boom year, and stocks will still pay dividends as always. Bond dividends will be higher than 2022. As those dividends are reinvested in the mutual funds. More mutual fund shares are owned that will eventually move up to new record highs. It’s all about compounding over time. That’s how wealth is built.
If we get surprises showing inflation dropping faster, or, if corporate profits and consumers weather the higher interest rate environment better than expected - the market could go up, at least some. Plus the market looks ahead, so if it becomes evident that interest rate cuts are on the horizon, that will also push stocks higher in advance of those cuts. Of course a “harder landing” which could lead to interest rate cuts may hurt the market.
Hard Landing/Soft Landing?: The jury is out on whether Feds can engineer a soft landing as they raise interest rats to slow inflation. It is impossible to predict how the cumulative interest rate hikes slowly working their way through the vast US Economy will impact it. Most economists expect a mild recession, too mild to justify interest rate cuts. They predict jobs will be hurt but not by much. I can’t remember a time, though, that the economists called everything correctly. There are always surprises. One gripe to add: Federal Chairman Powell is a “bull in a china shop” in how he delivers statements. We’ve endured many painful market downs and ups because of his less than thought out statements.
Time will tell what 2023 market and economic surprises are in store. Those stories will be here soon enough and they are out of our control.
Produce your own 2023 “surprises” by improving your health, happiness and financial life in the areas you can control!