Russia’s saber rattling and subsequent invasion of Ukraine certainly didn’t sit well with the global financial markets. Lots of panic selling and uncertainty this past month have added to an already very rocky start for the first two months of this year. Although we can chalk this up to panic selling, market uncertainty, the election year, or even irrational behavior over this particular situation, it’s still unsettling. It’s also a great reminder that we should stay the course with our long-term plans and our investments. In fact, now is a great time to recommit to those plans. Think of your planning as a visioning exercise for a brighter tomorrow.

Inflation has reared its ugly head and has lots of folks concerned. This is completely understandable since inflation hits us very personally – in our pocketbooks! Many who have lived through other inflation spikes understand that once we exit the other side and inflation starts to subside, many prices will still remain at their new, higher level. This is unfortunately due to providers of goods and services taking advantage of the situation. Having raised their prices and consumers become used to paying those prices, there’s little hope for a return to previous pricing. This is not so much the case with certain commodities that are more price sensitive.

It’s America Saves Week. Today’s theme is Save as a Family. Saving as a family goal and activity is a good way to get the whole family onboard. It’s a great way to teach money skills to children early in life. Saving leads to better financial health, emotional health, and is a key building block of wealth. Saving as a family can be a great bonding experience.

It’s America Saves Week. Today’s theme is Save by Reducing Debt. Reducing debt is one of the most powerful investments you can make. Saving leads to better financial health, emotional health, and is a key building block of wealth. Reducing your debt is a very impactful action.

It’s America Saves Week. Today’s theme is Save for Retirement. Every little bit helps and can change your future. Engage Advising participates in this annual event because of the importance of saving. Saving leads to better financial health, emotional health, and is a key building block of wealth.

It’s America Saves Week. Today’s theme is Save for the Unexpected. You need to be prepared and save for life’s curve balls. Engage Advising participates in this annual event because of the importance of saving. Saving leads to better financial health, emotional health, and is a key building block of wealth.

It’s America Saves Week. Today’s theme is Save Automatically. You can put technology on your side to save automatically by having funds automatically deposited to a designated savings account. Engage Advising participates in this annual event because of the importance of saving. Saving leads to better financial health, emotional health, and is a key building block of wealth.

Well, yes, you likely can. Unless you are aged 39 and 11 months and are not holding a winning lottery ticket. Otherwise, it will take some structure and commitment. And of course, you’ll need some earned income and a good rate of return. I think the real question being asked is how much do I need to put aside to save that amount? Is it going to overwhelm my monthly budget? As with all things money and finance, it depends.

How much do I need to retire? is a perennial question, and a loaded question. It’s a valid question, and it is definitely a number you should noodle over. However, there are a lot of variables that will greatly affect this number. There are several factors to consider when trying to figure out this goal. Let’s dive in!

I like focusing on IRAs in February because of the planning opportunities available for both the prior and current year. To keep us all on the same page, IRA stands for Individual Retirement Account. These accounts have been around since established by the Employee Retirement Income Security Act of 1974 (ERISA) and are still highly misunderstood. I’ve had folks argue with me that they have a joint IRA. Not possible. That’s what the ‘I’ stands for. Some people still believe that if they participate in a workplace retirement plan, that they cannot have an IRA. Again, not true. Deductibility and participation are guided more so by income level. Income may determine whether you can make a deductible contribution to a traditional IRA or not. Or, if you can even participate in a Roth IRA (not tax deductible) without a conversion or ‘backdoor’ maneuver.

There’s no getting around it, the DJIA is not off to the best start for 2022. In fact, according to MarketWatch.com we are down 5.7% YTD as of January 21. Market jitters and corrections can be unsettling for all of us. We can’t control the ups and downs of the investment markets, but we can do a few things to alleviate the feelings of frustration and helplessness. Start by taking a breath, put your thinking cap on, envision the future, and if you need to, call your financial planner for a chat. Here are a few tips to keep things in perspective and get you through an erratic market.

In corresponding with fellow advisors, we got onto the topic of DEI in the financial services industry. DEI stands for diversity, equity, and inclusion. Our discussion was mostly from an employment perspective on how to recruit and retain diverse talent, but also on how to market to diverse clientele (read, non-white clients); and, just why the industry is so white and male dominated. We had no shortage of ideas as to why this is, but we did realize that the industry itself is partially to blame. For decades, it’s been so insular. For job seekers from outside, just understanding the available opportunities can be confusing in an industry with a focus on commissionable products, and vague, confusing, mostly unregulated titles and positions. An industry focused on account size, which school you attended, who you play golf with, and sometimes quite literally, family connections. This led to a discussion about titles, and to a discussion about the overall lack of financial literacy in our nation as a whole. So, why isn’t the financial services industry more diverse? Why don’t we see more marketing toward diverse clients? Turns out, the reasons are many, answers are few, and the problem is way beyond one blog post.

Last week I discussed goals and how to set them for the year, and even further into the future. This week is a reminder of important numbers for 2022. I realize the content is not as exciting, but it’s good stuff to know. For example, most people still think they can only contribute $19,500 to their 401(k). Surprise! That’s a lot higher this year. Read on to learn more.

January tends to be a quiet month after the busy holidays. It’s also the month that marks the start of a new year for the vast majority of people and a great time to focus on ourselves and our goals, or resolutions, as we call them this time of year. Taking some time for introspection and goal setting is a great thing to do. Where did this resolution culture come from?

In keeping with my annual tradition, this is my last blog post for 2021 (no post scheduled for next Tuesday). Let’s get the business stuff out of the way first. Everyone likes to know, where will the markets finish for the year? Well, until trading closes on December 31 we really won’t know. However, according to MarketWatch, we are at 14.13% year-to-date as of closing on December 20, and that includes the recent large point drops in the DJIA. But keep in mind, the performance of a single year is not necessarily as important as the life of your investing plan. That is, if one year is bad, keep in mind there are more good years than bad. And, keep in mind that this is simply a calendar change. A convenience for accounting. There are a couple of very important things to keep in mind this time of year. One is your personal human capital. You and your family and loved ones. The other is that with the change of the calendar we focus on new goals. You know, those New Year’s resolutions. Let’s focus on these two things!

Last week, I covered a very broad range of the items and technology included in personal financial infrastructure in my post, Personal Financial Infrastructure. This week, let’s take a look at the humans involved in personal financial infrastructure. It’s true that today we rely greatly on technology and interface with humans less. However, there are still a lot of humans involved in our personal financial infrastructure. But who are they? What roles do they fill?

The coverage of the infrastructure bill in the national press got me thinking about my own personal financial infrastructure. I had to puzzle out exactly what that is. Could it be just the components of financial planning? Is it the technology we all rely on to handle our transactions these days? Are there human infrastructure components? I kept coming to the same answer – yes! It’s all of that and more.

We live in DIY world. Whether for home repairs or financial planning most folks these days feel they can go it alone. When it comes to your finances and planning your future, is that really the best choice? Sure, you can search the Internet and find a few retirement calculators and even articles on saving, investing and “Top 5” lists. But, is that information even relevant to your personal situation? How do you know if what you found fits into your financial plan or is even appropriate to your situation? What if you make a move only to learn later that your decision cannot be undone without costly consequences? An on-going relationship with your adviser can be invaluable.

I’m sure you have seen articles touting the benefits of tax-loss harvesting. What exactly is tax-loss harvesting? Well, at a very basic level, it’s selling a security at a loss to offset a gain; usually, to limit the recognition of a short-term gain which is taxed at higher ordinary income tax rates. The idea is to take a loss on a security and put it to work offsetting a capital gain in another area. Note that both sales, the one generating the loss, and the one generating the gain, have to take place and be completed. You need to actually sell the assets involved to have recognized the loss or the gain.

This is more of a PSA than an actual blog post from me. However, the information is important and if you have not seen it somewhere else, I am happy you are reading it here. It’s time to adjust our deferral limits on various investment schemes. Mainly, your retirement workplace plans such as your 401(k). The amounts you can save and invest are increasing. Let’s dive in!