I readily admit to being a TV junky. I first truly admitted
my problem when I chose to skip Physics class for an episode of The People’s
Court with Judge Wapner. At one point, I took all of the TVs out of the house
for a year. It was liberating but I did bring them back in. Thankfully, I
resisted the temptation to put a TV in my kids’ rooms. However, I am a slave to
my own bedroom TV. Yesterday I watched an HBO documentary on childhood obesity.
It said that studies now show the link to obesity and television viewing is not
so much because we are couch potatoes but mostly from the commercials we view
telling us to eat more crappy food (my paraphrase). What do you watch on TV? If
you tell me the programs you choose to watch, I can tell you a lot about what
you truly believe and your priorities. Does your viewing list reflect how you
really want to be now? Someone I know says, “garbage in, garbage out” is really
“garbage in, stays in.” TV gives us many of our opinions about the world around
us although we don’t like to admit this is true. We can change our perspective
by changing the information we allow into our minds. I stopped watching so much
one-sided inflammatory TV and I think I am better informed as a result.
Interesting.
www.selahfs.com
I hated History class in school. (I know, we’re not supposed
to say hate but that’s honestly how I felt.) I was the kid in class that
taunted the teacher with unrelenting comments about the uselessness of
memorizing a bunch of facts about dead people. It took decades for me to
realize the foolishness of ignoring history. There is nothing new under the
sun. Are you a student of history? Do you understand human nature, why we
behave the way we do, how our government works, how civilizations actually
collapse, why men start wars, and how money works in our families and society?
Being a student of history will make you a better investor. History gives us
perspective and allows us to learn some lessons the easy way. Worried about a
stock market crash? Read about how it occurred in 1929. Worried about the
Affordable Care Act? Read about the beginning of social security. It may not be as stimulating as a Jack
Reacher novel but certainly more profitable.
www.selahfs.com
I readily admit that I hated social studies and history when
I was in school. Why they wanted me to learn about the meaningless past and
memorize a bunch of stupid dates was beyond my comprehension. I have the grades
in social studies to prove my point! My boyfriend went to college to study
history and political science and then became an Air Force officer, further
proving the point that history was rather a waste of time, or so I thought.
Since becoming a financial advisor, I have grown into quite the accidental
student of history. I think it really started when I read The Big Short: Inside
the Doomsday Machine by Michael Lewis. I wanted to understand more about what
occurred behind the scenes in the financial industry during 2007 and 2008. I
found it fascinating so I went on to read about the stock market around the
depression and learned more about bucket shops. I was hooked. I have continued to
learn about Congresses, Presidents, significant events in our country’s
development, etc. My apologies to all of my very patient friends who teach
history to ingrates like me. If you
really think this time is different, my humble advice is that you learn more
about our collective history.
www.selahfs.com
Did you know that if you fund your 401(k) too quickly, you
may risk losing some of the company match? It may sound like a good idea to get
your maximum 401(k) contribution in early in the year to make sure you don’t
miss out on the opportunity but if you max out your contribution before the end
of the year, your employer will stop matching your contribution because there
is nothing to match. Hit your max in June and your employer will only match for
half the year. If they are matching 5%, it means you will really only get 2.5%.
I know, it’s a math thing and so many people hate math things, but you could
lose thousands of dollars in free money for doing 1 minute worth of math. Are
you interested in the math now?
www.selahfs.com
My doctor is as old as dirt. He knows all kinds of old wives
tricks and doesn’t like to write prescriptions. I have trusted and respected
him for 20 years. It is easier to see the difference in doctors because we give
them titles that reflect their knowledge. There are general practitioners and surgeons;
young, new doctors and experienced practitioners. It is relatively easy to sort
out doctors. The same is not true for financial professionals. We all make up
our titles and so many are financial advisors, wealth managers or, the new hot
title, retirement income specialists. One financial advisor is not like the
other. Some are general practitioners, while others specialize. Some service
hundreds of families and have a lot of experience, while others are just
getting started in the business. Some do only the required continuing education
while others spend time and money making sure they are well informed. Vetting a
financial advisor to figure out who is right for you is a challenge. Truth be
told, we often resort to picking based on personality. I don’t pick doctors
solely on personality. I rely on well-trusted recommendations. I ask my
pickiest friends about their service providers before going at it alone. How do
you pick your doctors?
www.selahfs.com
Have you ever noticed that people just don’t make tough
decisions until the last minute? I know I wait – hoping for something to happen
that makes the tough decision unnecessary. Sometime I just wait for time to
force my hand. Somehow it’s not as scary jumping when you feel you have no
other choice. We’re anxiously awaiting yet another tough decision from
Congress. The news channels have us whipped into a frenzy of concern that the
country might be coming to an end. Actually, they just want us to stay tuned so
that more viewers watch the ads that pay their bills. Why are we again
surprised that Congress will not make a compromise until the last minute? When
it comes to money, we tend to forget about human behavior. When it comes to
Congress, we expect them to put their human behaviors aside and act
magnanimously. Realistic expectations work better.
www.selahfs.com
The Montana wilderness guide says if you encounter a
grizzly bear do not run. If you do, the bear will chase you as an instinct. The
same is true for bear markets. Sometimes you don't see a correction coming but
the worst thing you can do is run. The guide also says not to play dead. You
need to get big, make noise, and stare down the bear. When corrections happen
in the market, you should consider standing your ground, getting big on confidence,
staring down the bad news and waiting! Keep your goals in mind and relook at
your time frame and be bold. If you are working with a financial advisor, it
helps to go back over the plan and review the process in which you chose your
investments in the first place. Don’t Run!
www.selahfs.com
Process is important. Let’s repeat that, process is
important. If you are a like me this is hard to accept. I’m a quick
start, give me an idea and boom I’m off to do it! While this works some of
the time I have learned that process is very important, especially in investing
and retirement planning. Having a process allows you to track your
progress. It also allows you to identify things that work well, and things
that don’t work well. With no process in place, how can we be sure that we
are growing for the better? Recently, I spent three days in Los Angeles with
a mutual fund company learning about their process which has been developed
since 1931. At Selah, we love process because it allows us to grow and
learn so that we can better serve you. Ask us about our process anytime, but be
prepared because we will ask you about yours as well.
www.selahfs.com
One day recently, we made the same service call to two
different 401(k) service centers for two different clients. Tom needed to use
advanced planning techniques to save about $20,000 in taxes and penalties. Ann
needed to complete a “typical” 401(k) rollover. Although her 401(k) was also
eligible for advanced planning techniques, she didn’t need them. When we called
Tom’s 401(k) service center, the gentleman did a great job assisting Tom and
Tom was able to utilize the planning techniques. Ann’s servicer must have been
tired, stressed, or told to keep his time on a call to a minimum. He said, “You
have company stock in your plan, so you want to cash that out and roll it over
as cash, right?” Here’s the rub. If Tom had spoken with this operator and
accidently given the “obvious” answer to this question, he would have
irrevocably incurred a $20,000 higher tax bill. How many times have you
wondered about questions like this from your doctor or mechanic? A seemingly
innocent question, answered wrong, could have cost Tom $20,000. That’s part of
the value of a knowledgeable advisor who is also well-versed in tax laws watching
out for you.
Neither Selah Financial Services nor Commonwealth Financial Network®
provide legal or tax advice. You should consult a legal or tax professional
regarding your individual situation. This material has been provided for
general informational purposes only and does not constitute either tax or legal
advice. Although we go to great lengths to make sure our information is
accurate and useful, we recommend you consult a tax preparer, professional tax
advisor, or lawyer.
www.selahfs.com
There are a host of changes facing us– health insurance,
social security, Medicare, and the aging of our society. We have a choice about
how we are going to respond. Some of us will become so involved in the Facebook
comments and news stories that agree with our position that we won’t get around
to acting on our family’s behalf. It’s easy to do and I fight that temptation
myself! The reality is that I (and probably you) have a huge responsibility to
the people I serve at home and at work. I can’t afford to fall into this
tempting trap. Can you? Stephen Covey
reminds us to focus on the things we can control. “Instead of reacting to or
worrying about conditions over which they have little or no control, proactive
people focus their time and energy on things they can control.” Where politics are concerned, it seems harder
for us to do. Things have changed and it’s time to make sure your family is prepared
for these changes. Ask yourself if you have financial independence today and
tomorrow.
www.selahfs.com
Did you know that the Congressional Budget Office estimates
that 78 million baby boomers are expected to retire?
Have you actually thought about what this means to you and your family? I think
the answer is very different depending upon where you are in terms of age and
wealth. I imagine that senior living facilities will become about as prevalent as
Starbucks and McDonalds. Who is going to work at all of these centers? It will
be a job boom for the younger adults but will they want to do the work? Will
the sale of adult diapers outpace the sale of baby diapers? Will the line of
electric carts at Walmart soon grow into an entire department requiring as much
space as the pharmacy section? How will that impact Walmart’s prices as Walmart
figures out how to pay for the equipment, staff and electricity? Will the line
at the drug store window rival what we say at Starbucks when they first caught
on in a big way? Will it be harder to get into the doctor than it was to get
our kids into the pediatrician back in the day? I know money doesn’t buy
happiness but I would rather be well prepared for the changing senior landscape
than caught unprepared. How about you?
