Theresa’s Thoughts

    Millennials and Money

    According to a recent Wall Street Journal article, more and more, white collar Americans are going deeper into debt. Many of the subjects of this article were making a household income of well over $175,000 per year. Why is this a problem?

    Thinking ahead to the next generation and beyond… What will be your legacy?

    One of the items under the SECURE Act state that non-spouse beneficiaries who inherit an IRA or qualified plan must distribute the entire IRA within 10 years of the account owner’s death. The only exceptions besides spouses are beneficiaries who are disabled or chronically ill, a minor child of the account owner (until age of majority is reached), or a beneficiary who is not more than 10 years younger than the deceased account owner.  This item itself, creates even more urgency for multi-generational planning....

    Stay the Course

    ~A journey of a thousand miles begins with one step~ Lao Tzu

    If you fell asleep at the market height in February and woke up this week – in spite of the major decline starting in March, you may find that you're in positive territory with your equity-based portfolio. Hence, the truisms: declines are temporary, advances are permanent, this too shall pass....

    What is your Number?

    No – not your phone number- ha-ha. The number that I am talking about is the amount of money that you will need at retirement or whenever you decide to stop working. Do you know what it is? If you don’t – you are not alone. Over 95% of pre-retirees do not know what their number is.

    Growth Through The Pandemic And Beyond

    Gardening in some form or fashion has always been an interest of mine. I have never actually had a vegetable garden, and during the pandemic tried to start one.

    I grew tomatoes from seed, and surprised myself. I had well over 300 seedlings sprout! It looked like I had a greenhouse in my living room!

    The process of planting the seeds, nurturing, watching them grow was laborious but rewarding. I learned more about thinning out plants, transplanting, and re-planting more than I ever thought I would want to know.

    "This Time It's Different" aka The Failed Investor's Four Word Death Song

    Every major Bear Market looks different when you are inside it. As Warren Buffett says: “Those who invest only when commentators are upbeat end up paying a heavy price for meaningless reassurance.”

    As long term, goal focused, planning driven investors, we stick to meeting our goals with the plan and the portfolio design to go with it. We do not deviate from that because of the news of the day or apocalypse du jour for that matter.

    There Is a Sale Going On in the Markets Right Now!

    As of my writing this article on April 3, 2020 the S & P 500 closed down from the February18th high of 3380.16 to 2488.58 about a 26.4% drop in about 2 months. These are markdowns which you historically do not see more often than about one year in five on average. The drop was dramatic to say the least, and now the great companies in America and the world are at a deep discount.

    Staying Positive, On Track ~ This Too Shall Pass

    In spite of the overall health and economic pandemic of the Coronavirus, we will always focus on the following: a): Your Goals  b): on our long term plan for the achievement of your goals and, c): on your diversified portfolio as the long term funding medium for that plan.

    To quote President John F. Kennedy: “No problem of human destiny is beyond human beings.”

    When should I be taking my IRA distributions and other questions…

    With the arrival of the Setting Every Community Up For Retirement Enhancement (SECURE) Act,  the odd number of age 701/2 for RMD (required minimum distribution) is now raised to age 72.

    This new easier to remember “even” number now applies to individuals who are turning 701/2 in 2020 and beyond. If you have turned 701/2 in 2019, you must adhere to taking your RMD as scheduled.

    Dear Friends 03-18-20

    Nine days ago on March 9th was the 11th anniversary of the crescendo of global panic that marked the bottom of the bear market of 2007-09.

    It is to me a thing of the most wonderful irony that the world has elected to celebrate this iconic anniversary with – you guessed it – another epic global panic attack.