When it comes to your money, how much risk can you tolerate? 🔴Are you someone who likes to put your money in super high risk stocks, were you can lost a LOT if the market crashes? 🟢Or do you prefer to have so much protection, that your money is locked into a CD (certificate of deposit with the banks) where it is guaranteed at a lower, fixed interest rate for a guaranteed amount of time? 🟡Or do you fall somewhere in between those two extremes? Keep in mind your risk tolerance can change over time. It is good to reassess at different stages in your life to make sure you and your finances are well aligned. Once you are able to answer these questions, and have a good understanding of where you fall along a Risk Tolerance timeline, you are then able to choose the right types of accounts to grow your money. We can help you choose the account that best matches your risk preference. Want more education on these types of accounts? Just ask! We offer free financial assessments.

With this being the big “shopping weekend” I like to ask how you budget or plan for how you spend over the week of Thanksgiving? Many people talk about not having money over the holidays, but how are they preparing for it? Is it worked into the annual or monthly budget? Should it be? 🍲🍗First, people often spend more on food with Thanksgiving; many travel to be with loved ones for the holiday too. 🛍️Then there is Black Friday shopping (which now seems to fall over more than a week somehow). 🎁And finally, we have cyber Monday, and giving Tuesday! Did I miss anything? If you are interested in a free financial needs analysis to assess your budget, let us know. You can be scheduled with a licensed financial professional for a complimentary assessment.

Saw an interesting article this morning about predictions for Black Friday. Overall, shoppers expect to spend 4% less than last year. But the interesting numbers were in the breakdown by income. Households making 50,000 are expected to cut black Friday spending by 12%, while households earning $200,000 or more are expected to cut spending by 18%. Conventional wisdom would say the people who make less would be cutting more as the economy tightens. But it’s the higher wage earners who are reducing spending at higher percentages. It could be that higher wage earners are cutting out the extras, where lower wage earners use Black Friday as an opportunity to save on necessities. But during the recession I saw a phenomenon that I call “perceived poverty,” where donors with literally millions of dollars in the bank felt they couldn’t make a charitable contribution to my organization because they were “broke.” Anyways, this is fascinating to me. Why do you think higher wage runners are cutting back more?

Pensions. Social Security. Personal Savings. These are the three legs of retirement. Or at least they were established to be just that many decades ago. 🔴 Pensions have all but disappeared. If you are still in the working force and have a pension of more than $600 or $700 a month coming your way, then you are in the vast minority! And what is $700 going to cover in retirement anyway? That doesn’t even cover food now in most households! I have clients who easily spend $4-$500 a week on groceries for their families. 🟠 Social Security, well, how much faith do you have that it will not be greatly changed, reduced, or even completely wiped out by the time you, or your children, or your children’s children get to retirement age? In ‘The Power of Zero’ David McKnight talks about how when SS was first established in 1935, “…the math behind it ensured its financial viability into perpetuity” because we had around 42 working individuals paying into SS, for every one retired individual taking money out. Furthermore, at the time, the average life expectancy was 62, and the retirement age was 65! While our retirement age has not moved much, our life expectancy has increased to 85! One in 3 women live to age 90! And because the baby boomer generation did not have as many children when they grew up, our working to retired ratio (rather, those paying in, to those taking out SS) is more like 3 to 1, and moving into 2 to 1 very quickly. The math isn’t mathing anymore. 🟡 So what we are left with is Personal Savings… 😳 How much are you saving for retirement? Are you paying yourself first? Are you placing your money into a growth state and letting it compound at a higher interest rate and over a longer period of time? 🙋🏻‍♀️🙋🏽‍♂️🙋🏼Who wants to learn how to empower themselves to save better? Take charge & 10x their money? What strategies are available to compound your savings faster? Let’s talk!

I haven't read it yet but I'm planning to read it this weekend on my drive to NC. It's about the stock market crash of 1929 and some of the similarities with the market today. It's by Andrew Ross Sorkin (host on CNBC and author of Too Big To Fail) and I've heard it's really good. I'll let you know what I think after I read it.