Recently, I had a chance to preview a personal finance book by a best-selling author that focused on how to build and manage your wealth. During the process of reading an early draft of the book, it struck me that it is easy for many to think of wealth building and wealth management as the same thing. However, they are distinctly different and should be considered separately. Building wealth is…
In today’s world, where information about the stock market is readily available at our fingertips, it can be easy to overlook the importance of developing good savings habits. While investment returns are a critical part of any financial plan, developing consistent savings habits is a tried-and-true way to build financial security over the long run. The investment landscape is always going to be ever changing and as investors, to a…
LOOKING BACK It’s difficult to know what the future will hold without understanding the past. 2022 was a difficult year in the market. An unprecedented, rapid increase in interest rates by the Federal Reserve, created significant market volatility and negative returns for the year: Consequently, the S&P 500 finished down -19.44% and investors experienced the risk side of the “risk/reward” relationship. What was different about 2022 was that the negative…
If you were to ask someone “What are the best benefits an employer could offer?”, most would respond with perks like health insurance, time off, remote work, and if it’s been a long day… a company sponsored happy hour might be a popular choice. They’d also be remiss if they didn’t mention the valuable 401(k) match, which is a benefit that’s often used synonymously with the phrase “free money”, and…
Thank you to Haley Sanford of New York Life for the status update regarding WA LTC Tax: Earlier this year Governor Inslee signed a bill that postponed the tax by 18 months. WA State did this to try and address a few bipartisan issues such as options for those who are close to retirement and will not pay in for ten years, live in neighboring state but work in WA…
During most years, the stock market tends to go up in value, 73% of the time since 1928, to be precise.1 Using historical returns as an indicator, in any given year, you’re usually better off investing in ‘the market’ than not investing at all. Unfortunately, the S&P 500 (often referred to as the ‘the market’), is having one of its worst starts to the year ever and at the time…
Inflation is an economic indicator we discuss heavily with clients during our planning sessions to project future income needs. For years, inflation has been benign, to say the least. Over the last decade, policy makers have been attempting to increase inflation, to ensure it stays close to their preferred target of 2%. Anything lower than their 2% target, risks stagnation in an economy, or worse deflation, which is difficult to…
Given the growing popularity of equity compensation plans amongst the country’s largest corporations, offering stock to employees has become a crucial employee benefit. One of the most common forms of equity compensation are known as Restricted Stock Units, or RSUs for short. According to a 2020 survey from Charles Schwab, 5 in 10 millennials said that equity compensation was one of the main reasons why they took their job. Clearly,…
Each year the Social Security Administration releases their Annual Trustees Report, which provides information about the projected funding levels of the Social Security trust fund. Unless you’re looking for great bedside reading material, you probably haven’t read this year’s report. Here’s the TLDR version – the Social Security trust fund will run out of money by 2033. Society has accepted many things as common knowledge, like swallowed bubble gum taking…
When someone starts a new job, there is generally an onboarding process. Part of this process usually includes enrolling in employee benefits such as medical plans, insurance plans, and retirement benefits. Most of us are familiar with the benefits of 401(k)s, and some of us are familiar with the ins-and-outs of health savings accounts or HSAs (if you’re not, see a refresher here). Increasingly, companies are beginning to offer another…
