For decades, business owners and investors have been taught to follow the 4% rule. By never withdrawing more than 4% of the portfolio value in a given year, they could make their funds stretch far into the future. Sounds great, right? So, what’s the problem? No two people are exactly alike and we all have unique financial needs. Let’s take a closer look at how business owners can avoid the dangers of the 4% rule.
Finances are a very personal aspect of our lives. How we handle our money can be extremely revealing as to the type of person that we are. Because of this, having someone else involved in our financial lives can leave us feeling exposed and vulnerable. This is why having a financial advisor that you can trust is so important. A trusted financial advisor can be one of your most valuable assets.
Through the years, we have seen many market downturns. From the bear market of 1987 to the economic crisis of 2008-2009, each one has brought its own fears and concerns. In the same way, many investors have concerns about what’s taking place in the market today. In today’s blog, I’d like to take a look at the current downturn and how it compares to those we’ve seen in the past. Follow along as I explore the market downturn and whether this time is different.
Business owners are some of the hardest working people you’ll ever meet. Sometimes that translates to overworking and not being in total control of all expenses. I want to talk about ways to stop the financial bleeding. You and your business can get on a healthier and wealthier track.
As a business owner, I often think my business is doing great and most, if not all, aspects of it are running beautifully. It reminds me of an old adage my dad used to say, “Son, you never tell a woman that the baby is ugly or you might get slapped.” However, that’s a problem for business owners looking to succeed. Our “baby” is ugly as it can be and we don’t see it. Mismanagement in business will be clearly visible and eventually, we find out our business isn’t as attractive to potential buyers as we thought it was. So, here are four strategic questions to ask yourself when contemplating a potential exit plan. Even if you’re 10-15 years out, you need to know, NOW, if you are hurting your business’ long-term value. Read more
Unless you’ve been in a cave for the last several months, you have probably been bombarded with news about the coronavirus (COVID-19) pandemic. The disease, which began in Wuhan, China, has spread to over 120 countries and has infected upwards of 150,000 people, leading to over 5,000 deaths. With a mortality rate of roughly 3.4%, COVID-19 has made the world take notice. The threat of COVID-19 has caused businesses from Disney World to Urban Outfitters to shut down and canceled many events from music festivals to the NCAA’s March Madness basketball tournament. With so many closures and cancellations, COVID-19 impacts the financial market in a major way. But what does that mean for you?
“Life is complicated, but money doesn’t have to be.”
— Justin Goodbread
Over the years, Justin’s passion has been helping the Heritage Investors clients—and visitors to FinanciallySimple.com—with their business and personal finances. His ability to explain the complexity of finances in terms that anyone can understand has caught the eye of many in the investment world, namely the Investopedia financial portal. They too were impressed and named Justin an Investopedia Top 100 advisor for 2018 and 2019. Read more
A term you have likely heard tossed around in the financial services world is ‘rebalancing’. Economist John Maynard Keynes said, “The market can remain irrational longer than you can remain solvent.” With this major concern in the background, let’s define rebalancing as the action which brings something back into balance.
Traditionally, financial advisors tell their clients, “Don’t take any more risk than is necessary to achieve your goals.” Following that advice, when you turn 70, 80, or 90-years-old, you should move your money into conservative investments with guaranteed low returns rather than keep your money in riskier investments that could potentially provide higher returns. Essentially, advisors say that it’s more important to protect your money at that age than to double it. Yet, is that always true? Is this conventional wisdom ever flawed? Should you stop making any potentially risky investments when you reach a certain age? Well, you will find the answer to that question by asking another: Are you investing for yourself, or are you investing for your legacy?
If you’ve received a letter or phone call about your financial advisor retiring, you may be scratching your head, thinking, “What do I do next?” For the last several years, the number of financial advisors has steadily been decreasing. In 2008, there were roughly 325,000 financial advisors. By 2014, that number decreased to roughly 285,000.