At the beginning of 2023, I decided to really look at how I spent my money in 2022, according to my primary credit card. It was an eye opener, especially since I didn’t see myself as someone who eats out much, but dining out was one of my top spending categories. I guess all of those impromptu trips to get a latte and pastry really add up! That got me thinking about the days when paying more than $10 for a fancy coffee and croissant was simply not an option.
During the depths of the pandemic, work from home businesses were, undoubtedly, huge beneficiaries of consumer demand for their services and products. First-order thinking was rewarded during this period, as investments into these stocks appreciated handsomely. While we experienced some uprooting of our lives and the impact of rapid change, West Financial was also brainstorming ways to intelligently invest in long-term COVID-winners. Exercise equipment manufacturer and subscription service, Peloton Interactive Inc.
This has been a difficult year for stock and bond investors. After several years of above average performance, the broad based market index returns have been negative this year, reducing portfolio values relative to where they started the year. For example, through 10/31/2022, the S&P 500 index is down -17.72% since the start of the year and the ICE Bank of America 1-5yr US Corporate Bond Index is experiencing a -8.22% decline over the same time period.
When you hear the word, “millennial,” what first comes to mind for many is a generation of entitled, social media addicted, avocado toast lovers who worship at the shrine of Starbucks. But, in truth like prior generations, millennials have a great capacity to learn from others and put structure to their wants and needs. And while purchases such as avocados and fancy coffee drinks can quickly become expensive, millennials can have their avocado toast and eat it too.
As summer winds down and back to school ads ramp up, things are a little different at our house. Our daughter is off to college. Once she made her school choice official, her gleeful plans for dorm décor and collegiate life began, while I agonized over other matters. Was there enough in the 529 plan? How do we go from contribution to distribution mode? Was she disciplined enough to avoid the high cost of daily stops at the campus’s Starbucks and Chick-fil-A? To avoid obsessing over nightmarish scenarios, I went into my typical list making, planning, and basic preparations mode.
In our first article (Understanding Your Credit Score - Part I), we discussed credit reporting and what activities impact your credit score. We pick up from there with more information on how to potentially improve your credit score, the importance of reviewing your credit report, and how (and why) to freeze your credit.
Financial advisors are known to wear many hats. In years like 2022, I find myself practicing psychology as much as financial and investment planning. Money is emotional, and when stocks and bonds are falling in price it invokes a lot of stress and anxiety. Decisions made under duress rarely work out well, and I try to remind clients that the investment strategy that we put into place was designed for the inevitable sell-off. While rash decisions are ill advised, doing nothing can also be a missed opportunity.
By Kimberly A. Cox, CFP®. I came to work at West Financial Services just over 24 years ago. Joining a small, financial planning and investment management firm with less than 10 employees and approximately $250 million of assets under management was a definite mid-life, career change event for me. Prior to this I had finance positions, mostly at large corporations while running a few small businesses on the side as well.
That is the question. And in order to answer the question effectively, one must assess both current and future potential tax situations.
Taxes are one of very few certainties in life, and they are top of mind this time of year. Usually, we try to delay paying taxes as long as possible. But that’s not necessarily the best move if your income tax rate is lower now than it is likely to be in the future. In this situation, funding Roth retirement accounts might be a good strategy.
What, exactly does your credit score mean? Briefly, a credit score is a number used to predict how likely you are to pay your bills, or make loan payments on time. It is a three digit number, typically between 300 and 850, with the higher score associated with better credit terms.
As we start a new year, I enjoy a reprieve from the holiday season sprint we all seem to go through from Thanksgiving to New Year’s Eve — and this year with the added pleasure of locating rapid antigen tests!
Our clients are often sprinting through a variety of year-end financial matters, as well. Many of these items can be started earlier in the year, reducing self-induced year-end stress. If you’re ready to lace up your financial running shoes again, here are a few items you can start now to complete over the remainder of the year.
Since the election in 2020, there has been a lot of time and attention spent reporting on potential tax changes that might be passed into law by Congress. However, by the end of 2021, none of the various proposed bills were able to garner enough votes in both the House and Senate.
While the opportunity for passing new laws is still something to monitor, there are a few things to take note of this year, due to the existing rules set forth in the Tax Cuts and Jobs Act of 2017: