“Peace. It does not mean to be in a place where there is no noise, trouble, or hard work. It means to be in the midst of those things and still be calm in your heart.” – Unknown
Today is August 1, 2021. The last month of extremely hot weather in Myrtle Beach and the start of hurricane season. Many people I talk to around the country ask “what do you do in the event of hurricanes? Do you sell your home in August and buy it back in December?” Of course not and the same is true for your investments, too. Why?
You can not predict how bad or good the season will be. There may be many hurricanes, but they may never reach the shore. There may be many economic or political events, but they may not have a huge impact on investments overall. Every firm has “their opinion” on what the markets will do in the upcoming year, just as every weather channel has their predictions on the upcoming hurricane season. If they can’t predict the weather over the next week with great accuracy, how can they predict over a year? Same is true with market predictions of investment firms. It does not make sense. Don’t take my word for it, take Warren Buffett’s.
You have to live somewhere and you have to invest somewhere, too. What do they do up north for the snow? What does the mid-west do for tornados? What does the West do for earthquakes? Where can you live that has no risk? Where can you invest that has no risk? Nowhere. Cash has inflation risk, whether you see it or not. Every place has its pros and cons and so does every investment.
The magic is not in the prediction of storms; it is the preparation to withstand them, while enjoying the sunshine. I hated changing broken sprinkler heads with my dad. I would question why they broke, why do I have to fix them and how can we prevent them from breaking again. I would make myself miserable. There are no magic sprinklers. If you have sprinklers, they will eventually break. If you want them fixed, you have to get dirty and fix them or have someone else do it.
My point is this: you can watch all you want on tv, listen to every prediction from every financial guru, and worry about every possible financial hurricane, but to make the most difference in your financial life, either you have to get dirty and fix your financial sprinkler yourself and withstand the storms or work with someone who does. No one has the magic sprinklers or a financial crystal ball. To get things fixed, you have to get your hands dirty.
Financially speaking, what are the areas that you have some control over AND can make a difference in your life???
Areas to get your hands dirty are:
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When to take Social Security? Remember to enjoy your life.
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What is the best retirement plan for you? Remember to enjoy your life.
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How should your withdrawals be allocated to most tax efficient for you and your family? Remember to enjoy your life.
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How should your investments be allocated to both reach your financial goals and be within what is comfortable with you and your family? Remember to enjoy your life.
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Deciding how much you should take from an Inherited IRA to minimize taxes? Remember to enjoy your life.
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Tax planning with Roth IRA conversions. Good of you? If so, how much and when? Remember to enjoy your life.
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Health Savings Account? Do you qualify? Yes or no? How to invest and withdraw money that is best for you and your retirement? Remember to enjoy your life.
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How can you vary withdrawal rates during retirement to maximize the impact on your happiness and your finances? Remember to enjoy your life.
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How do you pay for health insurance before 65 years old and still retire? Remember to enjoy your life.
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We are not guaranteed tomorrow. But we do have a choice on how we view today. Remember to enjoy it. We all experience our own storms, our sun, our night, and our rain. Enjoy it all the best you can. But you may have to get your hands dirty.
By the way, if you have a second home in the state of South Carolina, commercial, or rental property, this may reduce your property taxes by 25%. Here is the link: https://www.horrycounty.org/portals/0/Docs/assessor/Commercial_ATI_Exemption.pdf
On the lighter side, my back is getting better, but I still can’t ride a bike yet. Focusing on what I can do, swimming and light running. Will that line up with Ironman in September? I don’t know. Doing what the coach says. Getting my hands dirty, doing what I can. I don’t know when this mild physical storm will pass. Just enjoying each day the best I can. Enjoying life.
Hope all is well with you and your family,
Jeremy Finger, CFP®, CIMA®, CRPC®, CPFA
Founder & CEO
Wealth Management Advisor
Finger Financial Five – 5 points in 5 minutes or less – is to provide you with a weekly shot of useful financial information. My intention is to share principles, so that you will have more clarity and peace, that help you make better financial decisions.
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Investment advice offered through Stratos Wealth Advisors, LLC, a registered investment advisor; DBA Riverbend Wealth Management.
This content is developed from sources believed to be providing accurate information and provided by Riverbend Wealth Management. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Stratos Wealth Partners and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
