Tag

financial goals

Financial Demise by Subscription

By | 2021, Money Moxie, Newsletter | No Comments

The past year has kept most Americans safe in their homes, searching for something to occupy their minds and their time. Generally, staying home is a way to save money. Unfortunately, many found hunkering in at home to be a financial drain.

How can staying home possibly equate to a financial disaster? Subscription services. I know what you are thinking – they do not cost that much.

Today’s world allows us to have almost anything delivered, streamed, or accessible for a small monthly fee. If you are tired of coming up with a menu and shopping at the grocery store, you can have a box delivered to your doorstep complete with ingredients and a recipe to create a delicious family dinner.

Finding something to watch on TV is easier, too; just sign up for a streaming service from one or several of the companies offering hundreds of movies and television series. They are great for binge-watching an entire season. From Disney+ to Netflix to Discovery+ to ESPN+, you should be able to find something worth watching, right?

If you can dream it, you can probably find a subscription for it. A beauty box, food and toys for pets, clothing boxes for men and women, toys and activities for the kids, book of the month, car wash, online fitness gurus with programmed workouts, diet monitoring apps, theater, shaving supplies, wine, shoes, and the list goes on and on.

There is nothing wrong with subscribing to any of these services. Believe me, I have several myself. Many can help increase our quality of life and save us time. While reviewing your budget and planning for the year ahead, be aware of these financial drains. The cost for each is generally low and easy to justify. Altogether, they can really add up. Do your subscription costs fit into your long-term spending plan, or could they be preventing you from reaching your financial goals?

Your spending plan should be focused on meeting your monthly needs and achieving your financial objectives. These objectives should be aligned with your personal values and goals.

If you have not already done so, take some time and ponder the year ahead. Where do you want to end up financially speaking? You have a limited amount to spend each month; make it count.

If you need some ideas or suggestions on creating a spending plan, watch our Money Matters recorded webinar on budgeting. You can find it at SmedleyFinancial.com under Just for Women.

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How Do You Stack Up?

By | 2020, Money Moxie, Newsletter | No Comments

It is no secret that Americans need to save more for retirement. The amount of money an individual or couple will need to carry them through their retirement years varies based on numerous factors, including age, standard of living, location, expected fixed income sources – like a pension and Social Security – and more. Everyone needs to know where they stand based on their specific needs. Have they saved enough, or do they need to save more? Here are some shocking statistics that illustrate that Americans are falling short.

Source: Federal Reserve’s Survey of Consumer Finances

This chart shows the average retirement savings account balance of active savers. Averages can be deceiving as there are many balances far above the number shown. The issue lies in the realization that there are a significant number of accounts with balances far below the average. This creates a future financial crisis for these savers. Living today on the income they receive is doable. However, it will be almost impossible for these savers to maintain their standard of living in their elder years if they continue at the same rate of saving.

We are not proponents of Rule of Thumb planning. We prefer planning using actual key information specific to each client’s situation. But, in this situation, it helps us illustrate a reality. This chart shows how much someone should have in their retirement savings based on age. The amount shown is a multiple based on a $100,000 income.

Rule of thumb would say, based on the desired income amount you want in retirement, you should have saved a multiple of your current income. The amounts illustrated are multiples of a $100,000 income. For example, if you are age 45, you should have already saved 3 to 4 times your income. If you are 65, you should have saved 9 to 11 times your income. How are you doing?

The good news is there is always hope. If you are not on track, regardless of your age or situation, we can help create a roadmap to get you back on track, one step at a time. Contact one of our Wealth Advisors for more information.

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When Do You Need a Financial Advisor?

By | 2018, Money Moxie | No Comments

Last week I attended the Silicon Slopes Tech Summit that celebrates the booming Tech sector along the Wasatch Front. As I spoke with vendors and attendees, a consistent theme came up: “When do I need an advisor?”

Here are my thoughts on this and other similar questions I was asked.

Do I really need an advisor? You may not always need an advisor, but you always need a plan. If you don’t have a roadmap, how do you know if you have reached your destination? Many people have vague ideas in their heads of what success looks like. Maybe it’s retiring at the age of 50 and sitting on a beach drinking lemonade. Maybe it’s starting up your own company. Maybe it’s giving back to the community.

It is important to sit down and write out your ideas of success. Then take one more step by defining the path that will take you there. Without creating the stepping stones, your ideas will only remain wishful dreams.

Do you need an advisor to create that plan? No, as long as you are willing to do the research. Nowadays there is so much information available on the internet that you can become an expert in any area…as long as you are willing to do the research. As our CEO Roger Smedley puts it, “You don’t know what you don’t know.” Even more dangerous may be the things you think you know with certainty.

So, if you want to create your own plan, but fear you are missing something, consult with a professional that can identify potential pitfalls and help turn your stepping stones into concrete, actionable ideas.

Don’t advisors cost a lot? At SFS, our initial consultation is free. I love to see young college graduates come in who are ready to conquer the world. I give them some time to help create a plan. I know that if I help guide them in the right direction, they will be more financially secure, and who knows, they may even become one of my top clients in the future.

If a person becomes a client, then there are fees that vary depending on the services provided. Comparing our fees and our in-depth planning, we are a far better value than our competition. I have had people question our cost, but I have never had them question our value.

What you don’t want to do is to get your advice at the water cooler. While good advice may not be cheap, bad advice will always cost you dearly no matter how little you pay for it.

Is it best to talk to an advisor before or after my company goes public? Anytime you are dealing with a potential windfall, you should talk to an advisor. As human beings we constantly overestimate how much something is worth. When I was young, I thought $100,000 for retirement was a lot of money. Now, I know it could disappear in a heartbeat.

So, if you get a windfall, reward yourself by using some of the money to take a trip or do something fun. Just don’t blow it all in one place. The world is full of once-rich people that are now broke.

Make sure your money helps you accomplish your goals according to your plan. And if you don’t get the windfall you were expecting, still talk to an advisor. We can help you reach your goals.

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You Need a Wealth Manager—Now More Than Ever

By | 2015, Executive Message, Money Moxie | No Comments

Dear Valued Financial Partners and Friends,

Now more than ever, most people need a Wealth Manager. While financial conditions are constantly changing, your own financial goals do not. Remember our two guiding principles: “Protect what you have. Then seek to acquire more.” As your Wealth Manager, here are some of the roles Smedley Financial can play for you.

Financial Bodyguard: As your financial bodyguard, we can help protect what you have acquired. Our goal is to prevent clients from making serious and costly financial mistakes. We can serve as a devil’s advocate and sounding board, thus helping you through the process of making wise financial choices.

Financial GPS: With respect to your personal financial goals, you always need to know where you are. As an integral part of your financial GPS system, we can let you know whether or not you are on track.

Financial Lighthouse: You need to know you are headed in the right direction, particularly at difficult times. We can help you maintain a proper course through good times and bad. Naturally, this includes not only bull and bear stock markets, but through your sunny days and, more importantly, through your rainy days and dark nights.

Experienced Guide: With respect to the thousands of financial decisions made during your lifetime, you need an experienced team of certified investment professionals to serve as your guide. While some financial decisions may be changed as circumstances and opportunities present themselves, some financial decisions may be made only once. We can help guide you through the jungle of important financial decisions in your life.

Risk Barometer: With respect to risk management, you need to know when to take risk and how much risk to take. Both of these points are equally important. As your risk barometer or gauge, we help you determine the type and amount of risk you need and want to take. Investment management is all about minimizing your risk taking.

At Smedley Financial, we can play multiple roles for you in our role as your Wealth Manager. Remember, your financial success is our passion!

Bullish Best Wishes,

Roger M. Smedley, CFP®
President

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What’s Your Risk Number?

By | 2015, Money Moxie, Newsletter | No Comments

Tolerance to market risk can be a tricky thing. When markets are growing it is easy to believe that we are more tolerant of risk than we may actually be. For example, if an account grows by 10 percent we feel good about the growth; that is until we see that one area of the market grew by 20 percent. Suddenly, we feel slighted. In response we reposition investments to take on more risk. This is a common mistake. Risk tolerance should be based on our willingness to lose money. After all, who has a limit on how much money they are willing to make?

Smedley Financial has a new tool that helps our clients identify their risk tolerance. We use this tool to confirm your investments are properly aligned with your actual tolerance for risk. It encompasses all investments regardless of where they are held.

risk score

Potential Long Term Return 8.3%

 

Through a 5 minute quiz covering topics such as portfolio size, top financial goals, and what you are willing to risk for potential gains, we will pinpoint your exact Risk Number.

This technology empowers us to make sure the Risk Number of your portfolio, including all investments, matches your personal Risk Number.

Taking the quiz is easy and can be done in the privacy of your home or office, on a computer or mobile device, at any time. We email you the link and after you have completed the quiz we will see the result. By pinpointing your Risk Number we can analyze your personal portfolio to verify everything is on track.

Call today and request your risk tolerance analysis.

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