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money management Archives -

Be Smarter with Your Money

By | 2018, Money Moxie | No Comments

Women outlive men by an average of 5 years. That means women can’t treat their finances exactly as men treat theirs. Women need to think about money for the long term, that way they can retire worry-free. Here are some things women should be doing now to prepare for the future.

1. Invest early – Why? Because you will need more. After retirement, women will have around three decades to enjoy their lives. Take advantage of your paychecks now. Enroll in a 401(k) or open a Roth IRA. The longer you are invested, the more compound interest you stand to accrue–which means you are making more money. It is never too late to start investing no matter what your age– even $100 can make a huge difference (maybe giving up your Diet Coke habit). It is satisfying to watch your money multiply.

2. Keep your eye on the goal – Because you have more time, that means there are more possibilities for things to go wrong, anything from divorce to job loss or death. It is a great idea to have multiple “what if” scenarios in your plan and have regular financial checkups. Discuss your long-term goals with your Smedley Financial advisor, who can help you stay on track.

3. Get involved in your finances – even if your spouse is the one “who does it.” You should know what is coming in and going out each month. It is important to “know” about your money. For example, your account numbers, passwords, etc.

4. Always be looking out for yourself – Women will spend on average 12 years out of the workforce, raising children or caring for elderly family. Even if you are not getting paid for this work, it is important to invest into an IRA and contribute as much as you can. This will help improve the financial future for you and your family. You can’t help others if you can’t help yourself.

 

Source: https://www.mfs.com/subs/redbook/pdf/redbook_fly_9_17.pdf

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Worst-Case Planning May Be Your Best Financial Tool

By | 2015, Executive Message | No Comments

Dear Valued Financial Partners and Friends,

You may profit by learning how we, as wealth managers at Smedley Financial, engage in two different processes on your behalf. Both on the financial planning side and on the investment management side, we strive to turn the tables upside down by asking the tough “What if” questions.

Regarding your financial planning with us, we first look at the positive side of helping you plan your financial future. But then we flip things upside down and strive to plan for worst-case scenarios as well.

What if you needed more money in your emergency fund? Where will the money come from? What if you or your spouse became disabled? What if you or your spouse died prematurely? What if the younger or healthier spouse dies first? Would you or your survivors be financially okay? What if one or both of you lives 10 or 15 years longer than you expect? What if one or both of you have to go to an assisted living facility? Where will the funds come from? What if you die without a will and possibly a trust? What will happen to your estate?

We hope you can see how this type of reverse thinking in your financial planning is not only beneficial, but essential.

Regarding our investment management philosophy, we strive to emulate this same type of reverse thinking. Rather than being persuaded by best investment case scenarios, the Smedley investment management team continually seeks to ask
itself the tough questions. Over the past 34 years, we at Smedley Financial have seen many people make financial mistakes–some serious and some not so serious.

What if high returns, you know, too good to be true, are promised? Many people lose much of their life savings and perhaps their homes because of the promise of high returns. What if you change your mind and want your money back the next day? Can you get your money back without severe penalties? What if something goes wrong in the future with a proposed investment? What if an investment stops performing? What if an investment drops in value? Who is minding your portfolio and continually looking out for your best interest? When someone boldly states how much money he or she made on an investment ask, “How much risk did you take to get that return?” Are you properly diversified and allocated?

Keep in mind the Will Rogers adage, “I am not as concerned about the return on my money as the return of my money.”
As a nationally recognized Wealth Manager, Smedley Financial’s motto is, “Your financial success is our passion!”

Bullish Best Wishes,

Roger M. Smedley, CFP®
President

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