End of Q3 2022 Report by Redwood Investments one of our money managers :10/12/2022

Speakers: Portfolio Managers Richard Duff & Michael Cheung

Market Recap:

The Barclays U.S. AGG in Q3 was down another 4.75%, almost the same amount as the S&P 500 in Q3. Currently the U.S. AGG YTD is down 15%.

This is partly driven by the reality that the Feds are raising rate quickly to match the inflation curve. Prior to 2008 the Fed funds rate was above CPI most of the time but since 2008 we have seen fed funds rates being below CPI.

The treasury yield curve through 2022 began normal then shifted up in a dramatic way, the short end of the curve has gone up a lot more than the long end of the curve. Bottom line is that this is a dramatic shift that leads to a significant change in economic activity and the cost of money. This year has been the greatest change in the 10yr yield since the 1960s.

There is a correlation conundrum that has created a real shift in market dynamic. Typically, when the S&P 500 is down 15% or greater the U.S. AGG is usually flat or positive and this year has not followed that trend at all.

The 60/40 made up of S&P 500 and U.S. AGG has surpassed the amount of loss it incurred in 2008 down -22.25%

The U.S. AGG total return has been negative since 2018.

The Global Aggregate Bond Indexes current drawdown is -24.5% which has wiped out a decade of gains even after collecting yields.

The large spike in mortgage rates, 30yr average mortgage rate is above 7%. There is a correlation between a decrease in home sales as mortgage rates increase.

Crude oil price has gone down and is just above 94 dollars a barrel.

From 1927-2022 the S&P 500 return 12 months after the peak of inflation has averaged 11.50%. 

So far this year we have only given back 2 years of performance in the S&P 500 compared to 2020 was 3.3 years and 2009 was 12.5 years.

Portfolio review:

The only change that was made at the end of the quarter was in the dynamic strategic bond sub strategy. Which reduced long-term treasury exposure by 60%, eliminated TIPS and put the long-term treasury exposure into U.S. investment grade corporate bonds.

TIPS trade on expectations of inflation. They have a yield, and the underlying principle gets adjusted based on CPI.

There is an opportunity for par on investment grade corporate bonds due to the daily prices trading around 87 dollars maturing at par. Which creates an opportunity for the reversion to the mean as the bonds get closer to par. As prices go down on bonds the coupon stays the same and the duration of these different indices get shorter.

The U.S. AGG is trading at about 88.5 dollars still showing value in the portfolio, the model exposure remained the same.

Risk-off in all the tactical sub strategies and by design still risk on in the long only strategies. Approx. 58-58.5% defensive across all the portfolios. The tactical components are doing their job and behaving exactly how expected in a scenario like this.

End of year things to note:

Redwood is in the product construction process of putting together an alternative fixed income allocation that can be included in the models.  The framework of a product where you know that the underlying collateral and the borrower credit worthiness. The key is certain type of structures in a private credit real estate-oriented solution where you can not have to take the marks and drawdowns along the way because you have the value in that security. We don’t have anything specific to share yet but that is coming, and we are excited to roll that out.     Disclosure: Please see Redwood 10.12.2022 Partner Webinar for disclosures

Taxes, Like Rain in the Spring, are a Constant, But You Can Open an Umbrella

Many people are looking at their calendar and realizing that June has passed, and although they had great intentions in March and April of getting proactive in and around learning how to mitigate this year’s tax outcomes, the time has slipped by.  People who should be storing capital differently in that stock brokerage account have already been paid six months in dividends that are coming to them as a 1099 next tax season. Those people that meant to move the funds out of the bank are going to receive six months of interest now.  People who see the calendar, see the date, and are already feeling remorse, often say “Oh well, too late again this year”, since mentally, “the damage is done”.

This is intended to be encouragement for those taxpayers because the damage does not have to be done.  Even with six months of time gone by, changing behavior by early July, along with a few tax tricks most tax planners know, can still allow you to mitigate most of the tax for January through June.

Business owners, if you are going to do a tax analysis because your K-1 last year was large, July can be a good time to look into that, as this is usually a somewhat slower time for the many businesses.  Perhaps not for some of the service industries in vacation towns, but many businesses have employees out on vacations and things are slower.  What better time to finally meet with a tax planner and dig further into what being proactive looks like.  Like many things, tax planning isn’t one big idea that fixes the problem.  It’s a 5% tweak here and an 8% tweak there, and a 4% tweak in that other place.  It’s ten little pieces that all need to be altered, that add up to that 30%, 40% or 50% lower tax burden.  Slice up the New Year this way: In July, we’re going to make a list of everything that we could tweak with a tax planner.  At the end of July, we’re going to tweak one of the things on the list.

In August, we’ll tweak another.  In October, we’ll tweak one more, etc.  Work on the most important thing in July so it has the longest time to positively affect the numbers.  The second most important thing in August.  Is that all optimal?  No.  It would be better to stop and change everything now, but who’s got time for that?  Take a “slice the salami” approach, and maybe you could save 40% of what could have been done if you had started in January, but you’ll set yourself up for success next year.  

What’s your takeaway here?  You have lots of ways to get it done. Step one is caring about it.  Step two, meeting with a tax planner who can take the helm and help you make a plan of attack, educate you in small bites as you have time, and help you execute without everything else having to come to a complete stop. Time is a constant but procrastination doesn’t have to be!

People Love to Vacation.

Some do it often, while others hold on all year for that one great week and live day by day until that magical start date on the calendar!  A new wave in our digital age is to only take three or four day weekends, but do it more often.  However you “vacation”, they do have one common thread, and that is that they are not free.  Furthermore, when you are officially vacationing (which becomes a mindset as well….I am officially on vacation as of right now!) you spend more freely, often with a disregard for cost shopping.  “I’m stopping at Starbucks for the Mocha Frappuccino, not Dunkin, cause I’m on vacation!”.

What if next vacation you could upgrade to fly first class, stay at the five star hotel on the best beach and make all your dinner plans with the restaurants on the Food Network, and it didn’t cost anything extra? How cool would that be?  How about if it only cost you two hours of your time to “supersize” your vacation into the best one you have ever had?  Well, that is all possible by adding one small new behavior, “tax planning” before the end of 2021!

It is not uncommon to find a combination of missed deductions and proactive moves that are easy to make that can add up to thousands more in our pockets, instead of Uncle Sam’s!  With all the money being spent around the pandemic and recovery and all of this president’s comments on funding sources, taxes are going up.  Get a plan together and pay less or the same, but not more, then use the savings toward your next vacation.  We all could use one, let the IRS pay for some of yours!

Roth IRAs Are Often Misunderstood

When people save for retirement they almost automatically use accounts that avoid tax now.  IRAs, 401(k)s, 403(b)s, 457s, all pretax retirement savings plans.  Certainly, long term savings uninterrupted by withdrawals and the effect of compounding interest on interest earned is unarguably valuable, but doing that in pretax accounts is NOT the only way to have that happen!  Non-qualified annuity and Roth IRAs allow the same mechanics of compounding to happen, and in retirement both can be as valuable depending on the circumstances and actions of the retiree.

Annuities are underappreciated as a tax planning tool, because of the way earnings are treated as ordinary income upon withdrawal.  However if annuitized at retirement (an option the advisors that distribute them often underappreciate) instead of withdrawing from them, they can offer a dynamic change to the tax profile by way of “exclusion ratio” on each payment, which can work out as a great tax planning tool.

Roth IRAs are a class of IRA and allow for tax free growth and tax free withdrawals, and many misunderstand how they can be funded.  People who cannot make a contribution because of earning too much income, can still convert IRA, 401k and other pretax accounts to a Roth IRA.  Making a contribution is different than making a conversion into one.  It sounds like splitting hairs but it is not.  So, anyone can have a Roth IRA, it just takes several steps for some people and less for others.  As long as you have a good tax planner, it can be done!

These are only a few examples but as with most things there are many other options.  But the moral of the story is: Don’t automatically save in pretax accounts. Look at the post tax options as well and sit down with a tax planner as your Sherpa to help you accomplish retirement goals!

Feelin’ Panicky ?

At this time last year, the pandemic had affected the markets hard. Many people were panicking – afraid they’d lose all their money.
Isn’t it amazing how quickly the markets rebounded? History has shown us time and again that the markets always recover from downturns affected by current events (and quicker than we might expect).
I made this quick video for you that talks all about:

• Why you shouldn’t try to time the market
  

• An investing strategy we use to minimize the impact of market fluctuations on a portfolio.
  

Give it a watch and reach out if you have any questions at all.

Feeling Panicky? We address the current investing environment.

3 Shockingly Straightforward Ways You Can Get Out of Debt Faster (Even If You're Dead Broke)

Do you ever look at your bank account at the end of the month and think, "If it wasn't for this bill coming out every month, I would be in way better financial shape."? Are there several payments that you could say that about?

Between bills, general necessities, and other payments, finding new ways to reduce debt faster can feel like rolling a boulder uphill. You can't let go financially for a second without risking an accident or worse. And worst of all, when you're living from paycheque to paycheque, every dollar counts. 

So if you're stretching every cent and looking for more ways to shed debt, here are 5 tips you can use to get there even if you have very little money to speak of.

1. Shave Some Money Off Of Your Current Budget

Sometimes the only response you have when you're asked to find more money is to look at your post-bill bank account balance and ask, "Where?"

However, when you look at how you've been spending money overall, you may be able to scrape a few cents and dollars off of expenses in ways you never realized you could. 

For example, Chateline interviewed a blogger who was able to save over $1,000 a year by switching from cable to mostly streaming. If you're shopping for groceries, there may be cashback apps, discount apps, and other coupons available that would allow you to get a bit more mileage out of your grocery budget. And while it might not always seem like much, those extra dollars and cents can really add up for you in a big way.

2. Start a Side Hustle

When it comes to debt repayment, a lot of people get so caught up in squeezing more money out of their current income that they forget they have the option of making more money.

With working from home on the rise, people now have much more time and options to explore some creative ways to make some extra cash on the side. Are you a gifted writer? Magazines, sites, and blogs are always clamoring for new content. Are you good with crafts? Maybe it's time to showcase your talents on Etsy. And if the digital world isn't your thing, there's still more than likely part-time or casual work available somewhere if you keep your resume ready. You just need to know where to look. 

3. Get a Personal Loan

One way to avoid being caught in the trap of spending too much money on interest is to take out a personal loan. On the surface, that might sound a bit counterintuitive. After all, if the goal is to lower your debts, why would you take out a loan?

Interestingly enough, this is an example of how sometimes taking on debt can be a good decision. Using a loan in this way is known as debt consolidation - it allows you to pool all of your debts into a single, more convenient payment. And on top of the simpler payment schedule, a personal loan also lets you get more bang for your buck simply because less of your money will be spent on interest. 

Conclusion 

If we've all learned anything from the pandemic, it's that you can't put a price on financial security. When you're debt-free, you have a lot more freedom to save and put money away while providing for the people that matter to you. As much as we all would love to win the lottery or inherit a fortune that could wipe all those debts out instantly, that's not always feasible. Luckily, with a bit of creativity, a slow and steady debt repayment strategy is all you really need to win the race no matter how much money you've got coming in.

The Covid-19 virus has infected a lot more than people.

Even if you don't have the virus, chances are it's had some impact on your money and personal finances

1. Stay Calm. Yes it's scary but financial impacts like this one are not unusual.

Don't make a rash decision you may regret in the future.

If you want some peace of mind, look up what the Dow was trading at the day you were born.

look at where it is today despite the recent news.

2. Analyze your progress to goal. Before the crash your current savings level may have been adequate to reach your goals. Now maybe not. Find out what adjustments you need to make.

3. Rebalance. The goal with Investments is to buy when prices are low and sell when they are high.

Re-balancing on a set date every quarter ensures that you do just that. Stocks just went on sale.

4. Sure up your cash reserves. it's wise to always have at least 3 months of living expenses set aside in cash. Now you know why.

5. Try not to lock in losses. Selling when markets are down can be very destructive and you may end up feeling worse when they rise again.

6. Be careful listening to “experts”. No one knows the future so be careful taking advice from people who sound like they do. There are typically two types of people: Those who don't know and those they don't know they don’t know.

7. Create a “Bucket Strategy”. Organize your money into investment buckets where each one is allocated differently depending on when you need to tap it. The money you may need over the next five years should be invested more conservatively than the money you need 10 years into the future.

8. Find the waste in your spending. if you end up earning less over the next few months, find places to save money. Chances are you have a number of habits that can be changed: Dining out Coffee Premium Channels Clothes.

9. Get help. These can be scary times. Schedule a 15-minute call with our office today to learn how we help people plan for financial security through both good times and bad.

Call 610-695-8748 to arrange a brief call with Roy Innella

#financialhealing #financialplanning #financialplanner #investmentstrategy #InvestmentAdviser

For educational purposes only. Do not accept anything in this document as specific advice.

Getting to BHAG

Ever hear of BHAG?

It’s an acronym for Big Hairy Audacious Goal (BHAG).

Every time a new year begins, we’re all reminded of the value of setting goals for the coming 12 months. But one of the biggest challenges – especially when setting a BHAG or even sorta-kinda-big goals – is figuring out a way to get rolling towards success without burning out in the process.

When it comes to accomplishing big goals, most of us (according to an article in Forbes) procrastinate… as in “I’ll get started tomorrow” or “it’ll take me a week or so to get ready.”  

You can guess where that leads – nowhere.

Forbes recommends what they call “The Cutting in Half Technique” – and it goes like this:

Step 1 – Identify your big One Year goal.

Step 2 – Ask yourself, “What do I have to accomplish in 6 months to stay on track?” (Basically, cut that goal in half.)

Step 3 – Repeat – “What do I have to accomplish in the next 90 days to reach that 6 month mark?”

Step 4 – Repeat – “What do I have to do in the next 30 days to reach that 90 day mark?”

Step 5 – Everyday ask yourself “What do I have to do to stay on track with everything and make TODAY a successful day?”

This strategy of breaking down your BIG GOAL into smaller and smaller pieces enables you to visualize and see yourself making real progress towards the end result you wan to achieve. It’s like the old joke, “How do you eat an elephant? One bite at a time.”

This approach meshes nicely with the way we approach investing and building a solid portfolio.  While there’s nothing wrong with taking massive action over a short period of time, the better option is to identify a financial goal and work steadily over time to achieve it.

Give me a call today at 610-695-8748 and we’ll help you put together a “Wealth BHAG Plan” perfect for you.

Millionaire: What’s stopping you?

Here’s a question posed by a recent article on the website “The Motley Fool” – 

“What’s holding you back from becoming a millionaire?”

Of course, there’s lots of reasons (potentially millions), many pretty much what you’d expect or have heard before:

a)    You don’t invest

b)   You waste money on frivolous things

c)    You don’t follow a budget

And so on. 

But there were a couple that I thought were interesting enough to share with you today, including:

1)    You don’t act on your own good ideas – specifically those ideas to start your own business and take a run at building something totally your own. Just about all of us have seen a new product or service being advertised and said, “Hey, I thought of that first!”  Well, that may be true, but the fact is that somebody else didn’t just “think” of the idea, they actually went and did something with it.  If you have a great idea, don’t let it wither on the vine, take action.

2)    You don’t expect to be wealthy.  Many people simply give up on the very notion that they’d ever accumulate any kind of wealth. They think that unless you come from money, or you went to a certain school, or knew the right people, it’s just not going to happen and there’s no point trying.  Truth is, people of all kinds, all backgrounds, all skillsets, all ages have created wealth. They just didn’t let this kind of thinking hold them back.

And finally:

3)    They have a negative attitude about wealth. After all, we’ve been told since our earliest years that “money is the root of all evil.” (Which isn’t an accurate quote – check it out for yourself.) The truth is that many millionaires give back to their communities, through donations to charity, founding their own non-profits, and in many other ways. There’s nothing inherently good or bad about money – it’s simply a tool and the more of it you have, the more you can do with it.

So don’t let anything, especially your thinking, hold you back from doing what you can to build a secure financial future. There’s nothing wrong with that goal in the least, and if it leads to you hitting the million-dollar mark, all the better for you, the people you love, and the community you live in.

The journey to get there is definitely easier with the help of a professional financial advisor.  Give us a call at 610-695-8748 and let’s get started.

Tabasco Lessons

Who doesn’t love hot wings?

The perfect party partner for celery, blue cheese dressing, and football – they’re hard to beat.

Buy the next time you dive into that great big ol’ pile of deliciousness, pause for just a minute to offer up some gratitude for the pioneer sauce that led the way, long before the NFL was even a sparkle in Knute Rockne’s eye:

TABASCO

Just over 150 years ago, Edmund McIlhenny brewed up his very first batch of that now world-famous red pepper elixir, on a small island in Southern Louisiana.

And it’s still made in the same place – Avery Island – by his descendants… in fact, the firm has remained in the family ever since, with every CEO a direct branch off the family tree.

The recipe and process for making Tabasco remains pretty much the same as it was for that very first batch – a simple mixture of mashed up peppers, left to ferment in a wooden barrel for 3 years, and then blended with vinegar.  

Simple, spicy, tasty – and consistent in quality time and time again – thanks to the fact that every single person who works there is obsessed with making each fresh bottle as close as possible to the original.

It’s estimated that ol’ Edmund batched up a total of 350,000 bottles over his lifetime running the firm. Today, that’s just a typical run produced by single shift at the plant. 

So dig into those wings, enjoy some cold refreshment, and celebrate the season with joy and respect for good old-fashioned entrepreneurs like McIlhenny who made the good things we enjoy today possible.

Now if you’re looking to cook up a hot portfolio that will stand the test of time, give us a call at 610-695-8748.  Preparing a tasty financial future for our clients is what we love to do.

Vroom Vroom [NOT]

Consider for a moment the lure of the open road…

The smell and feel of leather…

The thrill of rapid acceleration.... 

If you’re into motorcycles, you get it. 

But one of their key selling points – especially for the classic Harley Davidson line – is that growling, throaty, internal-combustion rumble made by the engine.

It just SOUNDS like power.

But time never stands still and a new generation of bikes is hitting the streets – powered not by petroleum, but by high-tech batteries.

The age of the electric motorcycle has begun and a number of the major manufacturers are joining the parade. Here’s just a few of the new entries hitting the road:

·      Harley Davidson’s “LiveWire”

·      The Zero DS

·      Moto Czysz E1PC

·      Brammo Empulse

Downsides to electric bikes primarily relate to cost and range.  Their prices remain higher than their gasoline-powered brethren, but they’re definitely beginning to become more affordable.  And when it comes to range, while a gas guzzler can cruise for 200+ miles, a fully charged electric typically has about half that.

Still… there’s no doubt that with the winds of technology shifting towards all-things electric, these and other wrinkles will continue to get ironed out as new road warrior machines hit the market.

When it comes to managing a portfolio, trying to time market trends can be like chasing the wind… with the danger being thrown off course when things don’t pan out as planned.

Smooth and steady seems to me a wiser approach. Give me a call at 610-695-8748 to find out how to rev up your roadtrip to the financial future you’ve always wanted.

Don’t you just hate rejection?

Don’t you just hate rejection?

I do.

It's only natural – we all want people to like and accept us.

But rejection happens and you have to keep on keeping on.

The story I keep in mind is that of Col. Harlan Sanders. At the age of 65, Sanders had an old car, a pension worth $105 / month, and a recipe for chicken that some folks told him was pretty darned tasty.

So he hit the road to propose a deal with restaurants – “use my recipe and for each chicken sold, pay me 5 cents.”  

The first restaurant owner told him no.

The second said no.

As did the third. The fourth. The fifth.

And on and on and on and on...

Finally, after making 1,008 sales calls with this proposal, one restaurant owner finally said yes.

And of course, you know the rest of the story.

The lesson is persistence. Dogged. Determined. Undying. Unreasonable. Against all odds. He did not give up. He kept going. Day after day. And he did finally make that first sale and many more besides - enough to create a fortune.

Persistence, whether in business, or in investing is the not-so-hidden key to success.  

Your success in establishing a solid financial foundation matters greatly to us here at The Wealth Advocate.  Call us today at 610-695-8748 and together let’s craft a plan that puts you on a relentless, persistent, unwavering path to the kind of life you want and deserve.

Just 5 things

Okay,  here’s something you might find useful…

It’s from a book entitled "18 Minutes: Find Your Focus, Master Distraction, and Get the Right Things Done" By Peter Bregman.

It’s got some interesting ideas – for example, in one chapter he calls out the value of creating your "annual focus" - not a set of goals, but a reduced mix of life / business priorities you plan to really focus on for the year.  

Here's his point…

Life offers us a huge buffet of delicious choices.

And of course we want it all.  But the problem is, if we TRY to have it all, we will pay the price.

A better choice is to limit that buffet to a very carefully chosen subset. He recommends just 5 and to make those your 5 focal points for the next year.

Even more interesting, in writing to business owners and entrepreneurs, he doesn't say they should be all business. Quite the contrary, he divvies them up into 3 for business and 2 for life.

And when opportunities arise that don't fall into any of these five areas, he respectfully declines.

It sounds really good in theory. 

I know that I have a tendency to take on too much at times.... like everyone these days with family, work, friends, and hobbies I have a zillion things going on and I am definitely pulled every which way.  

Narrowing the focus to FIVE has serious appeal. 

In fact, I think it’s a not a bad notion to consider in the context of a lifelong financial plan – identifying the 5 top priorities you have in mind moving forward.  

Give us a call at 610-695-8748 and let’s figure out a way to take those top 5 goals to make them happen as quickly as possible.

Obscure Slang

You know… some days you just need a break and the interweb beckons…

And here’s what you might find – a healthy, daily dose of obscure slang terms from the website MentalFloss:

• TOAD-STRANGLER - Comes from the Gulf states – it describes a sudden, and heavy, rain capable of choking an amphibian.

• WHOOPERUPS - This was a Victorian term for “inferior, noisy singers” – you could probably use it today during your next round of karaoke.

• GOT THE PANTS - As per “Passing English of the Victorian Era,” this phrase means “panting from over-exertion.” For example, after running a marathon, you get the pants!

• TO POKE BOGEY - A 19th-century slang word for tricking someone, that possibly has its roots in words for ghosts—bogey as in bogeyman, and poke may be related to an old English word for spirit.

And my favorite:

• HURKLE-DURKLE - John Jamieson’s Etymological Dictionary of the Scottish Language reports that 200 years ago to hurkle-durkle meant “To lie in bed, or to lounge after it is time to get up or go to work.”

One of the great things about the English language is how it’s always reinventing itself with new words and fresh twists on old standbys. 

Slang considered “hip” just a few years back now labels you as outdated and out of touch.

But some things don’t change – like the value of having a retirement portfolio that grows regardless of the positive adjectives used to describe it. Groovy, out-of-sight, or wicked – call it what you will, here at The Wealth Advocate we think it’s simply what you deserve.  

Call us today at 610-695-8748 to schedule your complementary portfolio review.

Before taking off

Have you ever wondered what’s going on inside the cockpit of that jet airliner right before take-off? 

What exactly are those pilots doing?

I did a bit of research and one of the things I learned about pilots was just how much they ALL rely on checklists.

Before the flight, during the flight, after the flight – there’s literally checklists for everything. Here’s a high-level look at the different types of checklists pilots use:

• PREFLIGHT

• PUSHBACK and ENGINE START

• AFTER ENGINE START

• TAXI

• BEFORE TAKEOFF

• AFTER TAKEOFF

• CLIMB

• DESCENT

• APPROACH

• BEFORE LANDING

• AFTER LANDING

• SHUTDOWN

Most of these are only 5-10 items each and don’t require more than a few seconds to actually perform.

But the value of having a checklist is it ensures consistency, predictability, and safety – you don't want to overlook something of critical importance as you come in to land.  

Checklists are key reason why air travel is so safe today.

But checklists aren’t just for airplanes.  

For example, here at The Wealth Advocate we’ve created a step-by-step checklist to make sure every aspect of what matters you in crafting a financial plan is identified and addressed. It’s just one part of our commitment to providing the very best service possible. 

Call us today at 610-695-8748 to schedule your free portfolio review and let’s work together to make your dreams soar.

Persevere

One of my favorite quotes of all time comes from British Prime Minister Winston Churchill, delivered during the darkest days of World War II:

“Never give in, never give in, never, never, never, never”

This advice especially applies to small business owners – entrepreneurs who face daily challenges in getting everything done, attracting customers, and closing deals to keep the doors open.

According to business speaker Tim Wackel, a study by the National Sales Executive Association discovered these numbers when it came to closing the deal:

• 2% of new sales are made on the first contact

• 3% of new sales are made on the second contact

• 5% of new sales are made on the third contact

• 10% of new sales are made on the fourth contact

• 80% of new sales are made on the fifth contact

If you run a small business, you must be relentless in self-promotion. If you quit trying, quit following up, quit returning those calls or sending those letters after the first, second, or even third attempt, you are losing out on the opportunity to help so many customers.

But this principle doesn’t only apply to business – no matter what dream you hold to dearly that you want to make a reality in the future… 

• Whether it’s a college degree in a subject you’re passionate about.

• Or some accomplishment you long to achieve… writing a book, creating a painting, learning to play guitar or piano…

• Of a vision of retirement and time with your friends and loved ones…

Never give in… never, never, never, never. Persevere. 

At The Wealth Advocate we’ll stand by your side to encourage you every step of the way to achieving those dreams.  Call us 610-695-8748 to discover how we can help make them come true.

Not so tiny anymore

What do you think about the “tiny home” craze?

With house prices rising across many US markets, many Americans have chosen to forego the traditional 2000-3000+ square foot home and instead opt for much smaller living spaces. 

How small?

There’s really no “official” answer.  Tiny homes typically range from as low as 60 square feet to 400 square feet – although pretty much any home below 1000 square feet these days could be considered in that category.

A lot are around 200 square feet, which is about the same size as your typical college dorm room.  

The reasons for choosing to move into a tiny room vary widely. 

It’s not just for cost savings – many chose this route as a way to confirm their commitment to “doing the right thing”… reducing their needs for electricity, water, and other resources.  

Or they just prefer a simpler life with less stuff – because as I’m sure you realize, the more room you have, the more likely you’ll be to eventually fill it up. A tiny home is also easier to furnish, much less work to clean, and lot easier to maintain. 

Some even design their homes to be completely self-sustaining, with composting toilets, solar panels, etc. to enable the occupants to live entirely off the grid.

With an ever-growing number of TV shows, magazines, websites, and more dedicated to this idea, it’s clear that the tiny home movement will continue.

I think anything that gives people more options and freedom in how and where they want to live is a good thing.  

This same principle applies to finances as well – your goal should be having the ability to live life the way you want. That requires having a solid portfolio and plan to get there. For help in making that happen so you can live large however you want, give us a call at 610-695-8748.

Call today.

How much for that “rainy day?”

I’m sure you’ve heard a thousand times or more that you need to salt money away “for a rainy day.”

But have you ever wondered, “exactly how much?”

Of course, for each of us the potential cost of that “rainy day” differs – as well as the budgetary impacts such a day would have.

The well-known “rule of thumb” when it comes to the size of your emergency fund is 3 to 6 months’ worth of expenses. The source of that notion, however, isn’t clear and why it gained status as conventional wisdom is even murkier.

A recent article on MSN notes that the most common rainy-day emergencies tend to cost less than $2500 – in fact, they’re much more common than those that exceed it. 

In fact, putting more than that amount in a low yield, high liquidity vehicle like a savings account can actually hold you back from achieving your long-term financial goals – especially for those households who can afford to save more. 

Rainy days will someday hit everyone – that’s a fact of life.

The key is to prepare wisely, not only for that day, but down the road long after those temporary storm clouds disappear. 

Helping you establish a balanced, solid financial foundation that protects you throughout all the seasons of life is what we specialize in here at The Wealth Advocate.  Give us a call at 610-695-8748 to set up your free “no more rainy days” review today.