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New Year

Happy New Year

By | 2020, Money Matters, Newsletter | No Comments

Making 2020 Count Financially 

I’m not one to harp on New Year’s Resolutions, but I do want to make sure you are aware of opportunities that will help you reach your financial goals. I thought I would share a couple of tips you may want to think about, possibly share with your friends and family, and implement for yourself.

Define your goals

From year-to-year, the top investments are going to rotate. We are often asked, “What should I invest in?” A better question may be, “What am I investing for?”  Defining a goal and then matching your investment strategy to that goal will help you stay on track. Keeping your focus on the goal rather than day-to-day movement in the market will help you manage the emotional side of investing. This is critical when market volatility increases.

Put investing on autopilot

We find that over time investors who have a systematic approach to saving are more consistent in their efforts. Waiting until the end of the week, the month, or the year before deciding to put money aside can diminish the urgency of saving and your ability to reach a goal. The 401(k) is a wonderful example; every pay cycle money goes directly into an investment for the future – automatically. Once you make the initial decision to contribute, no further action is required. The same can be done in an account outside of your retirement plan.

Increase contributions for 2020

If you are not making a maximum contribution to your 401(k), consider increasing the amount you will contribute this year, even if it’s a small increase. The limit for 2020 increased to $19,500. Often employees contribute only enough to get the employer’s full matching contribution – which is great! However, with fewer employers offering pension plans, the burden to save for retirement falls to the employees. Saving smaller amounts early on makes a significant difference in how much you will have when you get to retirement. If your employer doesn’t offer a 401(k), consider putting away up to $6,000 in an IRA or Roth IRA.

Make up for lost time

For anyone who will be 50 or older this year – there is at least one advantage – you can make up for lost time. The catch-up provision allows you to sock away additional money for the future. The 401(k) catch-up limit increased in 2020 to $6,500. For IRA and Roth IRA, the catch-up remains at $1,000.

Simplify your portfolio

It is not unusual to have several jobs throughout the course of your career. That being said, having multiple plans with past employers can be cumbersome and difficult to monitor. Consider consolidating these plans, making it more effective to track your investments, and determine if they are on track to help you reach your goals. 

We wish you a prosperous New Year!

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The Attitude of Gratitude

By | 2016, Executive Message, Money Moxie | No Comments

Season’s Greetings Dear Friends and Financial Partners,

Recently, I heard a man talk about being cut off in traffic. Rather than complaining, the man surprised me by saying that less than one percent of the world’s population will own or even be in a car. He had the attitude of gratitude. Now, I don’t know how to test the veracity of the man’s statistic, but his point was well received by me.

In the United States of America, so many of us are blessed to live like kings and queens. A little over one hundred years ago, our forefathers did not enjoy the conveniences of indoor plumbing, hot water on demand, carpeting, microwave ovens, refrigeration or air conditioning. These modern-day conveniences are quite remarkable and only made possible by the hard work and sacrifice of those who have gone before.

Perhaps you are familiar with this phrase by the English mathematician Sir Isaac Newton some 340 years ago in 1676: “If I have seen further than others, it is by standing upon the shoulders of giants.” Sir Isaac Newton was just 34 years old when he uttered those words.

What Sir Isaac Newton meant—while pondering his life as a physicist, astronomer, alchemist, inventor, natural philosopher, and mathematician—was that by using the understanding gained by major thinkers, who had gone before, he was able to make the intellectual progress that he did.

In a similar way, each generation of Americans has sought to make the lives of their children and grandchildren better than their own. Today, we are the beneficiaries of those who have gone before. (FYI: From Latin, the prefix, “bene,” means well or good.)

We have all heard of someone who has survived a horrific disaster, such as an earthquake, flood, major automobile accident, or household fire. It is not uncommon to hear him or her say, “Thankfully, I have my family and what else matters?”

Everything that is ultimately important comes back to our family and friends. It all comes down to our personal relationships with each other. At Smedley Financial, you become not only our friends, but more like family. We are so grateful for you.

Please have a safe, wonderful Thanksgiving and Christmas, and a Happy and Prosperous New Year!

Bullish Best Wishes,

Roger M. Smedley, CFP®
President

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