Portfolios & Back Pain

Have you ever had back trouble? Boy can it be a pain in the ### (pun intended). Recovery is usually possible by seeking – and taking – proper advice and treatment. Believe it or not, there is a way to relate the recovery process from back pain to the recovery and durability of investment portfolios. Stay with me here!

I will credit my excellent physical therapist, who knows very well my profession as a CFP®, for coming up with the concept. He said to me, “like your advice about my 401k allocation, the physical strength work a person does for years can make recovery from back trouble much swifter and even easier.” Hooray! While the recovery process for a person’s back can take several weeks to several months, the recovery process for properly positioned investment portfolios has been actively taking place for over 12 months and could continue over the life of a portfolio.

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White-Hot Real Estate – Pt 1

The real title this week is, “Selling Real Estate in a White-Hot Market”.

Future topics include:

  • Real Estate (in general) in a White-Hot Market
  • How to Handle Real Estate as an Asset in Any Market
  • Renting versus Buying in a White-Hot Real Estate Market

ALL of these topics have come up in conversations with friends and clients over the past year, even more so in the past five months. There is no question that real estate – especially around major cities like New York, Chicago, Philadelphia, Raleigh/Durham, and Atlanta – is sizzling hot. Even cities such as Atlanta where there are residential areas inside of a sprawling city, those “suburban feel” areas are also on fire.

Whether or not to sell their home has come up in conversations with friends and clients over the past year, even more so in the past five months.

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Gut Check in Rocky Markets… 2021 Version

From the 2014 & 2016 Archives of TGIF 2 Minutes comes a timely message – updated for 2021, as markets could get fairly rocky (read: volatile) with inflation fears, unprecedented US government debt issuance and money printing. Caution is warranted. However, timeframe and a PLAN are key.

Have you asked yourself lately…

  • “Is this the ‘Big Dip’ in the markets they have warned about?”
  • “Should I be selling my stocks?”
  • “Should I be selling my bonds?”
I stress to my clients and friends: Do NOT allow short-term market moves to instill fear and lead to poor decisions.

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Investment Talk at the Weekend BBQ

With Memorial Day fast approaching…and summer BBQs possibly starting soon… here’s a good one from the Archives of TGIF 2 Minutes….

May 2020:

A popular topic that inevitably comes up over holiday weekends and even at socially distant BBQs is “the latest hot investment” or the brilliant neighbor who made a killing in “Fund A” or “Investment B.” But did you ever notice that rarely does the conversation highlight the losing investments?

The person who starts talking about Asset Allocation and patient investing over the long-haul is the lonely person at the cocktail party or BBQ.

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Are Tax Rates Going Higher?

The question of whether or when tax rates may go higher is one asked after many a US Presidential election. The actuality of taxes going up is altogether another issue with its own timing depending on the President, party and Congress involved. There can be signals of both higher and lower taxes that certain candidates and Presidents communicate to win friends (and elections) and influence people.

In fact, in reading this week the obituary of Walter Mondale it seems that his transparent insistency on a proposal to raise taxes in his mid-1980’s US Presidential bid was a major factor behind his losing the election to Ronald Reagan (Reagan’s 2nd term run). That was then, this is now. One could say that now President Biden ran on a platform to raise taxes – in part winning him the election. Taxes and tax plans may always be part of US elections as they say the only things certain in life are death and taxes.

There is no “magic bullet” strategy to avoiding tax increases.

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Quick 401k Tax Tip Video

From the January 2021 archives of TGIF 2 Minutes – a relevant 401k tax tip video. Remember, the 2020 tax filing deadline was delayed until MAY 17TH, 2021. Considering this extra time, it is never too late to plan for the rest of 2021 and beyond. Enjoy this quick video.

Click the PLAY button above.

Thank you for watching, stay safe and TGIF!

The 401k Trap: Contact me for a copy at kdebbs@msfsolutions.com

Better, Faster, Cheaper

The title of this edition could also be called “A Deeper Dive into Inflation.” Inflation is serious stuff – for people of all ages. Consider that lots of younger people (under the age of 45) have far less awareness of inflation because they have not experienced serious and sustained inflation in their lifetimes. Those of us in our 50’s and older have likely been stung by this invisible enemy – sometimes really stung!

The reason why inflation matters so much is because it is like a thief who literally takes a chunk of your money every time you go to buy something – especially something you really need or want. So then, you must reach deeper into your pockets to pay more for whatever you were about to buy. What if you were already spending pretty close to 100% of what you make? Or what if you are retired (or close to retirement) and are on a fixed income… and already figured out the life of your dreams and what it would cost?

The title of today’s edition is “Better, Faster, Cheaper” because there are handful of items whose cost has stayed steady or gone down over time.

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More on PCL…and WRW!

Good morning and TGIF,

A couple of weeks back the topic was PCL, or Post-Career Lifestyle. I received more comments than usual from people of all ages – and a number of cool ideas on how to look at the “nonretirement” concept of saving today in order to do what you love tomorrow. “Doing what you love” in a post-career lifestyle can include continuing to work for pay, slowing down and enjoying a “side gig” or truly retiring and ending working altogether.

Another excellent factoid revealed was that women and men tend to look at retirement and post-career lifestyle differently. Women also have a lot more to say about their attitude toward saving (whether for PCL or retirement) and managing the savings habits of their families. This translates into a concept best described by the acronym, WRW*, or Women Rule the World.

Now before the men reading this say, “Wait a minute!” a couple of notes of clarification.

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Money, Therapy, and Life

From the Archives of 2016… updated for the “Coronavirus Life Experience”.

Money and Therapy. Two things that people may love or hate. However, among other things, money and therapy help.

Recently I finished a must-read book for all ages – wealthy or building wealth, married or single. Anyone who wants to have a “life” someday… or even have a life NOW. The book is called The Number* and was written in 2006 by Lee Eisenberg (long time editor-in-chief of Esquire magazine) but reads like he wrote it yesterday.

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