Life Changes | Live a Life By Design

Don’t Leave Your Money Behind When You Leave a Job

Posted on March 9, 2023March 9, 2023 by Jimmy J. Williams, CPA/PFS, CFP®

If you were to leave your home and move to another one, would you leave your valuable jewelry and other assets with the old home? Of course not! In a similar sense, millions of Americans leave their place of employment and fail to protect one of their most important assets after the change in employment – their retirement account.

Participants of 401(k) plans control, to a degree, the mobility of their retirement accounts. We were visiting with a business executive recently who had been very successful in his career. One interesting note was that he had worked for five different companies during his career and left his sizeable retirement accounts at each of the employers. When I asked his reason for abandoning his accounts with a previous employer, he simply stated that he had invested his funds in a proper allocation and wanted to diversify his total investment for retirement.

My next question caught him ill prepared. I asked, “Who is the new custodian for the plan you HAD with XYZ Company?” For purposes of full disclosure, I had direct knowledge that the XYZ Company had changed platforms for the retirement plan twice since this gentleman had been last employed with the company. He couldn’t answer my question. Then I asked what he knew of his sign on and password for the platform to obtain balances and statements. Again, he admitted that he did not know the information.

A valuable lesson to be learned is to take control of your retirement assets from your former employer by transferring them to your Individual Retirement Account (IRA). Too many times have we witnessed the stress a person experiences when they can’t gain access to their money because of changes in platforms, company being sold or some other transaction that occurs since their last date of employment.

By taking proactive action upon separation from service from your employer, you have the information to request a trustee-to-trustee transfer to an IRA without tax impact. Further, you will have retained the pre-tax favorability of the assets by transferring to your IRA. Lastly, you will have the opportunity to invest in a much larger selection of investment types than most plans can provide you.

Another excellent benefit for maintaining control of your employer plan accounts is that you can consolidate all of your 401(k) accounts into a single IRA which will make your management of the funds much simpler. By maintaining a single IRA, you can monitor any potential rebalancing or concentrating in a single asset class that will help you mitigate risk in the portfolio.

Life in retirement should be simpler and with more freedom than you accomplished while in your career. It does take a plan to reach a simpler lifestyle and it is something we do every day for our clients. No one retires to work harder managing and protecting their assets. Life is simple but we tend to make it harder than it must be.

If you have orphaned a 401(k) account with a previous employer, act today to regain control of your assets. We believe it is in your family’s best interest to communicate the location last recalled of the assets with a spouse or significant other. What if you decease while the plan assets remain with your employer? There are steps you can take to protect your family and facilitate the distribution or transfer of these assets. To help you paint the picture of your bigger future, seek a complimentary consultation with a Certified Financial Planner™ professional. A quote by Joshua Becker is so fitting to end this article, “The first step in crafting the life you want is to get rid of everything you don’t.”

Related Podcasts

How Successful People Gain and Retain Their Wealth

Posted on January 27, 2023January 27, 2023 by Jimmy J. Williams, CPA/PFS, CFP®

There is a TV show that I witnessed a couple of times that is titled, How Winning the Lottery Ruined my Life, or something to that effect. While watching the “lucky” family discuss their travails and trials of winning such a large sum of money when they previously were considered poor or bankrupt was interesting to me. The reason for suffering from winning such large amounts of money is that the person was attempting to apply their current capabilities and philosophy of life to a much larger asset base.

Having served as an advisor to wealthy individuals for many years, it gave me perspective to understand the devastation of which the lottery winner spoke. We all experience a stage in life that we are most comfortable. This level of living has given us the lifestyle we feel is good, or good enough, to provide us some comforts of life. The challenge is to understand that, as people, we must grow our philosophy toward money and wealth as we grow our lifestyle or trouble is on the horizon.

In simple terms, the person who has dominion over a few things must grow in mindset, knowledge and understanding about wealth to retain dominion over significantly more assets. The Bible tells us that the person who has much wealth, much is expected. That is a tremendous philosophical point about wealth. Another statement I often use is that self-preservation leads to mediocrity while charity leads to wealth. By giving away, in a reasonable and responsible manner, the assets you currently possess, you will receive greater assets from the marketplace.

To help you think like a wealthier individual, you should learn from those that possess great wealth. Read biographies of Cornelius Vanderbilt, Andrew Carnegie and John D. Rockefeller. What inspiration these men’s stories give me as I realize their generosity in developing the modern culture you and I benefit from. Libraries, hospitals and universities all over our great country bear their names as a testament to the great blessing we possess of being American citizens.

One of the common themes I discerned from reading their biographies is that they thought differently than most people. Their time was sacred and they didn’t waste it on trivial matters. Most of them created, for themselves, an approach to capturing the best information to make critical decisions that contained considerable risk. To accurately describe their approach to managing their time, they eliminated, delegated or elevated activities which became their goals for success.

Many menial tasks that would arise during the day would be disregarded unless they had some relationship to the important goals set by the entrepreneur. Business studies of behaviors inform us that most people major in minor things to the detriment of the business production they are seeking. In simple terms, I call this “busy work”. This type of activity has no sustained value or progress contribution toward your big goals for which you are seeking to attain. According to Gallup, a considerable number of employees polled report they are simply disengaged from the act of contributing their skills to their employer at some point during each day. That is startling when you realize these employers are paying significant amounts of money for training, retention and benefits for these “less than productive” employees.

Another strategy used by wealthy individuals is that they delegate tasks to others more capable or experienced in certain functions. For example, many didn’t write or type their own letters but utilized a personal assistant. Most of them didn’t drive themselves to destinations but used the skills of drivers and focused on their important tasks during the drive time. Delegation is not restricted to business professionals. Many of us delegate our lawn work and flower beds to companies that specialize in such services. Cleaning our homes and performing laundry are delegated activities for which others are most helpful. You should be focusing on those activities that create and retain your most passionate areas of life.

Lastly, the wealthy are excellent at scaling their process for producing wealth. They create a unique process and elevate it to capture market share or other investors. By concentrating on your unique abilities to create value for others, you will quickly realize that a “better mousetrap” is in your possession.

Each day, plan your activities and review them to note what should be eliminated, delegated or elevated to give you the greatest opportunity to serve others and grow your wealth in life.

The world needs you to show up everyday to contribute your talents to helping others. It is only when we all find our purpose in this world and implement a means to using that purpose to help others that we truly are wealthy. Mark Twain, one of my favorite authors, stated it well when he said, “The two most important days in your life are the day you are born and the day you find out why.”

Related Podcasts

Where’d Everyone Go?

Posted on August 18, 2022August 18, 2022 by Shelby Heflin

From going out to eat to going shopping anyone can see that there is a shortage of workers. Everywhere you go the staff is shorthanded, yet the unemployment rate is the lowest it has been in two years. It is a no brainer that the employment rate has been so high due to the impact COVID had on the entire world but now that things have calmed back down and jobs were offered back, you would think those who lost their jobs would be scrambling to find work. Fortunately, they found a better and more convenient option.

Before COVID hit and left us all a mess, it was completely abnormal for most people to work from home. Waking up, getting dressed and commuting to your workplace was just the way of life and no one seemed to question it. That is simply how having a job had always been. When an unexpected pandemic hit the entire world, working from home became the new normal and now there is a large majority of the workforce that do not want to go back to the old normal. But can you blame them?

Working from home means staying in your own home all day, being able to use your own restroom and kitchen on breaks, and most of the time wearing comfy clothes. Many say they have been able to eat healthier since they have the resources to prepare their own lunch within minutes. Not only is it more comforting and convenient, but it also saves time and money. On average, working from home saves 40 minutes of a person’s day as well as a large amount of fuel since they do not have to commute. Many of those who remote work say that they are much more productive since there are not as many distractions at home. It can also make your work schedule much more flexible. With more time you can exercise, spend time with you family, and even catch up on housework. You can also work from literally anywhere!

One study found that post-pandemic, 35 percent of job holders in the United States were offered remote work full-time and 23 percent offered remote work part-time. Almost all of those who are offered the option, have chosen to take advantage of it. Only working remote part of the time could be great option for those who like the office scenery but not all the time since you get to experience in office days and enjoy your co-workers and getting out of the house, but you also get to enjoy the quiet days at home.

Working from home has not only helped employees, but it has also helped employers. Several employers have reduced costs since they no longer have a brick-and-mortar office. They cut the expenses of utilities, office rent or payments, and even office supplies. Most of them did not even endure the expenses of equipment for their employees since they already had equipment provided to them that they were able to take home. For those who do have to provide extra equipment, only endure the cost one time. With the expenses being lower it has allowed some companies to pay for their employee’s internet and phone, so the employee does not incur the charges themselves.

Next time you wonder “where did everyone go?” think about how many people found great jobs from the comfort of their own home. Although it may not be for everyone, there are many who enjoy the benefits of being able to work in their own space. Something that became so popular due to a worldwide pandemic has become one of the best things to some.

Related Podcasts

Opportunity or Tragedy?

Posted on June 16, 2022June 16, 2022 by Jimmy J. Williams, CPA/PFS, CFP®

The world has become a tenuous planet over the past couple of years. Many people have been impacted, some positively and many negatively. How do you think a person can become positively affected by such trauma and chaos in the world? First, the maintenance of attitude.

Negative people only seek ratification of their advice by recruiting others to the depths they find themselves. The positive people will be a much smaller, yet growing, group of people. No matter the opportunity, someone will always find the negative or “how can I lose” option in the venture. This mindset has not created happy people but rather a group of cynical, and often, maligned population that is skeptical of all positive attributes of life.

A person’s attitude is influenced in many ways. It is better to feed your mind with positive stories of successful people than to focus on excessive newsfeeds of the tragedies of the world. I recommend a good book be the focus of your time rather than negative news on a daily basis.

Another attitude influence is the friend circle you maintain. Personally, I spend ninety-nine percent of time around people that are successful, optimistic and charitable. There is always a success story shared among the group that inspires the rest of us to keep growing and making the world a better place for mankind. The most important asset we hold is our attitude. Assets and net worth are merely tools to accomplishing and maintaining a positive outlook in life by contributing the improvement of less fortunate people. When I see the reaction of families that are recipients of positive support, it motivates me to work harder in creating greater change in our community.

The stock market has recently reached bear market territory. That simply means the S&P 500 Index has fallen by 20% since January 1, 2022. Many of us look at our investment statements on the day after such market changes are posted and frown. Some of us look at this lower price in stocks as an opportunity to buy undervalued stocks that will pay dividends for decades to support our livelihood. Remember, the United States stock exchanges are auction markets. For every one that wishes to sell a stock, someone else must be willing to buy it.

For example, if I were to sell XYZ stock and posted my intentions on the exchange at “market”, a buyer could purchase the stock at whatever its price at the moment of purchase was posted in the marketplace. However, if I were a potential purchaser, I may wish to calculate a target price for which I wish to purchase XYZ and order a stock buy at the price. This means if I want to purchase for $25 and the stock is currently at $26 in the market, my buy order will go unfilled until the stock hits the order price called a buy limit order.

Why I am telling you all of this about attitude and your finances? The real reason is that you have worked for more than 30 years accumulating sufficient assets for your lifetime needs. Don’t allow your fears to cause you to make an immediate decision on a lifetime investment because of short-term market activities. We, as a country, have been here before in the markets and we will improve, and most likely, set new market highs in the future. The bigger question is when.

The manner you have invested your lifetime savings is critical to your long-term success. If you have concerns about your portfolio’s allocation and capabilities to withstand significant market headwinds, consider contacting a CERTIFIED FINANCIAL PLANNER^TM professional. The goal is lifetime income for a better night’s rest. Stay positive!

Related Podcasts

Prudent Steps to a Secure Future

Posted on March 11, 2022March 11, 2022 by Jimmy J. Williams, CPA/PFS, CFP®

Our world is experiencing disruption on a global basis. War in Ukraine, inflation at a 40 year high, gasoline prices reflect the 70s, and continued impact of a rampant virus. Have you had enough? Yes, me too. However, my father taught me that words are cheap and action is riches. This was his statement to, “quit griping and start working” to achieve better results.

The people of Ukraine are suffering in ways that U.S. citizens cannot relate. All of us can sleep tonight in a warm bed, eat a nice dinner and drink water that is potable. Medical care is available and jobs are plentiful. Why I am stating the obvious? To provide you some perspective. Life is good in the United States even in the midst of all this disruption.

When experiencing moments of potential recession, it is critical that you review your future plans to determine if small adjustments are needed. It is important that we understand the current economic environment will pass (no, I don’t know when) and life as we know it will return for us. The resilience of our republic continues to amaze me.

The following steps should be considered to provide your family a more secure future. First, review your cash flow spending and determine the priority of these items. Do you actually need a new laptop or is it a want? Is a new car needed or do you simply want one? Also, remember it is better policy to make sound financial decisions based on your current cash flow, savings and needs rather than surrendering to the fancy marketing of the gadgets that make us more comfortable.

Next, reduce debt balance to zero as quickly as possible. The purpose of this is to relieve the pressure on your family’s budget. Any credit card balances should be paid monthly to eliminate the potential cost of credit through high interest rates. Federal Reserve Chairman Jerome Powell is recommending, next week, a 0.25% increases in the discount rate to be implemented for purposes of slowing the rampant inflation rate in the U.S. Additional rate increases are anticipated through 2022.

Another step is to review your portfolio to determine your true risk inherent in the underlying positions you own. In the past 12 years, the U.S. markets have rewarded equity investors. In the current market contraction, it would be advisable to review your positions for possible gains to protect the overall balance in the account. I am not suggesting market timing. However, I am recommending that you determine a price you would wish to reach before selling your investment positions. For example, lets assume we buy AstroWorld common stock, a fictitious company, for $35.00 per share and set a price of $70.00 at which we would sell the position. One of the greatest investors in history was a man named Peter Lynch. As the manager of the Magellan Fund of Fidelity Investments, his fundamental approach to investing was to perform the same process on each position he bought in the fund. If it was a good approach for him and the fund he managed, perhaps it may be good for your family.

Lastly, keep calm during market correction periods. Panicking only increases the probability that you will make poor decisions that could harm your family’s future for many years. By thinking about your financial decisions with a cool head, the likelihood of taking advantage of market declines allows you to “buy low and sell high”.

Of course, these steps will not ensure great returns or eliminate risk of loss. However, you will give your family and you the best chance to attain your retirement goals and security for the future.

One of the best methods of gaining confidence that your family’s finances are on the right track is to seek a complimentary “financial checkup” from a CERTIFIED FINANCIAL PLANNER^TM professional. Your investments, like your body, may suffer if proper attention is not given. See you on the jogging trail!

Related Podcasts

Change — The Most difficult Task To Accomplish

Posted on October 28, 2021October 28, 2021 by Jimmy J. Williams, CPA/PFS, CFP®

Life happens with – or without – our consent! One of the most problematic areas of life is managing the fast-paced world of ever-changing financial, tax and estate information. In the past two weeks, the United States Congress has proposed more than ten bills, between the Senate and the House of Representatives, to increase tax revenue for the United States of America. Some of these proposed bills would impact your family. Others will impact families with greater wealth. Too often elected officials feel that they must act, whether it is a good outcome or bad one, to give the appearance of working for their electorate. Change is one outcome of working in our government and the impact is real.

As a CERTIFIED FINANACIAL PLANNER^TM professional, one of the areas of control we bring to our clients is change. Of course, life is going to change almost daily. However, when you have a plan of action, with an expert in the field of planning guiding you through the maze of change, your probability of achieving your intended outcomes is much higher. Our role is to help you understand the impact of the changes on your personal life and finances. Frequently, you are subjected to changes without your knowledge. Consider inflationary impact on your investments.

One need only watch a few minutes of network television news daily to know her life is being impacted in positive and negative ways. Inflation has risen to 5.4% in 2021, according to the U.S. Bureau of Labor and Statistics, and may not have reached its peak. How does this affect your life? Think about the different consumer goods you purchase in a typical week. How much has gasoline, milk, bread and medications increased in the past year? Has your income maintained the pace of this increased cost of living? In most instances, the answer to this question is “no”.

What you need is to formulate a plan that considers inflation as a pressure on your family’s budget. One of the economic factors that is pertinacious is inflation. This challenge to the value of a dollar is always a factor in planning. The bigger question is how much will inflation be in 2022, 2023 and 2024? If I knew the answer to this quandary, well, I would be on an island in the Caribbean sipping on an iced tea while watching the sun set. Oh, back to reality.

One mitigating approach to combatting the negative impact of inflation is to invest in assets that are inflation resistant. For example, you wouldn’t wish to buy a 30-year U.S. Treasury Bond while inflation is rising. The impact of inflation on the value of the security is considerably negative. However, you may wish to analyze your portfolio for investments in stocks that are more growth oriented to overcome the inflationary pressure you are experiencing.

Another area of change for which we have no control is the loss of a spouse or other family member. This type of change, we refer to as familial change, is difficult for most families to navigate, particularly when the person was a breadwinner for the family. What do you do now? It is critical that you seek the appropriate counseling from a licensed therapist or group to deal with grief. The next step would be to regain control of your finances. Seek out a CERTIFIED FINANCIAL PLANNER™ professional to help gain clarity of focus and to manage the change to your best outcomes. When you meet with someone to discuss your personal finances, it takes a tremendous amount of trust. The good news is that you will gain significant optimism from the assistance that will empower you with confidence that life is back to your design.

Change will be present in our lives forever. However, you have the power to determine if the changes control you or you control the effects of the changes. One powerful tool in maintaining your control is to have a plan. Contact a CERTIFIED FINANCIAL PLANNER^TM professional to help you gain control of your financial life. See you on the jogging trail!

Related Podcasts

Direction of Your Life

Posted on September 17, 2021September 17, 2021 by Jimmy J. Williams, CPA/PFS, CFP®

Do you feel like life is just a little out of sync? In the crazy world in which we now find ourselves, it is critical to create a safe place to give you hope and optimism. The best method of creating this stability in your life is to create and monitor your activities and emotions with a life plan.

Life planning has become an industry unto itself. There is more to your life than financial matters. You have relationships, hobbies and other activities that can’t be purchased with money. By properly setting your goals and life plan into motion, you have found your “true north”.

When you have properly placed your passions and actions into a formulated methodology that increases your probabilities for success, you are on your way. Think about these three aspects of life when planning your future. First, remember that life is finite. This is not a morbid tale but one that gives you urgency to seek your best life on your terms. If you are granted only twenty-four hours to do what you want to do in life, would you be doing what you are doing now?

Your happiness depends on the framework you have placed around yourself. Friends, community and family, all contribute greatly to the quality of life you lead. It is not all about money. I know several people who are very rich in worldly goods but bankrupt of happiness. On his deathbed, a very successful real estate developer in California told a young Darren Hardy that he made one mistake in life – he is poor. When the confused teenager looked at the dying man, he exclaimed, “You have 7 houses worth millions of dollars, cars worth millions of dollars and other investments that contribute to your overwhelming wealth! How can you say you are poor?” The wise, old man pulled the boy closer to him and, in a raspy voice wrecked by radiation and cancer treatments said, “I am poor because I spent all of my time making money and failed to create true wealth by having relationships with others.”

The second aspect of life is future thinking. Too often we find ourselves mired in the world of today. Thoughts of life in the future seem fleeting and so far out of our realm of thinking that they are irrelevant. By applying a little of your current assets and income to your future, you would be amazed at the potential results. The Chinese proverb comes to mind about our future. It states, “The best time to plant a tree was 20 years ago. The next best time is now.” Don’t allow the irreversible passage of time rob you from a lifetime of happiness by merely enjoying today beyond your means.

Lastly, the aspect of life that makes the most impact is choice. Og Mandino, the New York Times Bestselling Author, wrote in his book titled, Choice, “The key is choice. You have options. You need not spend your life wallowing in failure, ignorance, grief, poverty, shame, and self-pity. There is a better way to live!”

Live your life with passion and happiness. Set your future in motion as you define it. The best method of accomplishing these actions is to focus on your future while living for today. A CERTIFIED FINANCIAL PLANNER™ professional can help you plan for the best outcomes in your life. This choice is a simple one…

Related Podcasts

The Power of Ownership

Posted on September 10, 2021 by Jimmy J. Williams, CPA/PFS, CFP®

You have worked hard for many years to accumulate the assets you utilize to sustain your retirement. This balance sheet of tangible and intangible items may last beyond your needs. What are you to do with the remainder of this estate?

As the owner of the assets, you possess a tremendous power of control. You may have heard, as I did, that “you can’t control what happens after you die”. Of course, this is a false statement! To benefit those you love, it is important to properly describe beneficiaries and charities in your estate planning. But there is a simpler method of transitioning assets to your loved ones. The secret is proper asset titling.

Let’s assume you own a parcel of land and a home in fee simple title. The property has no mortgage or claims against it and you wish for your children to own the home after you die. Instead of probating the property as part of your estate, simply consider the retitling of the deed to the property. Depending on the state of domicile, or location, of the property, you may be able to transfer the property to your beneficiaries (i.e., kids or other loved ones) through the filing of a transfer on death deed.

This process is simple and effective. However, there are a few caveats to this type of transfer. For example, the beneficiaries named on the deed must convert the title to their own name(s) within 90 days of death or the beneficial statement of the deed is void. Most real estate in Oklahoma may be conveyed to beneficiaries in this manner.

Other assets such as bank accounts may be transitioned to beneficiaries in a similar manner. By placing a paid-on death designation on the account, upon your death, the named individual(s) will receive the balance of the account without the process of probate. Checking, savings, certificates of deposit and other banking accounts may be conveyed using this type of designation.

Your individual retirement account and Roth accounts may be transferred to your heirs by using properly prepared designation forms. These qualified accounts require the naming of beneficiaries when establishing the accounts. Should you not be clear on the person(s) you wish to leave the account at the time of funding and opening, many people simply leave the assets to their estate. In my humble opinion, this is the last option. If you were to prematurely die, the assets will be owned by your estate and many tax planning options are lost.

Other types of investment accounts may be conveyed with a transfer on death designation form. You may name as manner beneficiaries as you desire to receive a portion of the account upon your death.

Life insurance policies require a beneficiary to be stipulated when procuring the policy. One horror story comes to mind where an individual divorced later in life to marry a much younger woman. His wife of 39 years was his beneficiary when he purchased the policy a year after they were married. During the divorce the assets were separated and support was sought for the wife. He agreed to pay alimony for a set term of years to resolve further property division.

As part of the divorce agreement, the paid-up life insurance policy and its $2,000,000 death benefit would remain in his ownership. After marrying his new bride of 28 years of age only two months after the divorce decree was filed, the man dies of a heart attack. Thinking she had just become a millionaire; the new bride attempts to claim the death benefits of the life policy. To her surprise, and angst, her new husband had not changed his beneficiary on the life policy even though he had been advised by his financial advisor to do so. The moral of this story is to annually verify your beneficiary designations name those you truly wish to receive your assets. Meanwhile, the ex-wife is smiling all the way to the bank!

A best practice in September of each year is to review two tasks: 1) check your beneficiary designations on your financial and other assets; and 2) check the battery in your smoke detectors.

If your estate plans are not complete, or existent, seek out a CERTIFIED FINANCIAL PLANNER™ professional to help you plan for the best outcomes in your life. See you on the jogging trail!

Related Podcasts

The Federal Reserve’s Role in the Economy

Posted on September 3, 2021 by Jimmy J. Williams, CPA/PFS, CFP®

One of the most influential organizations to our economy in the United States is the Federal Reserve Board. Many people don’t notice the substantial impact the decisions of the governors of this board effect on the lives of citizens.

Why is it important to understand the role of this agency in your life? It affects how much you pay in interest on your mortgage, car loans, credit card balances and other credit instruments involving the banking system of our country.

The Federal Reserve Board (referred to simply as “the Fed”) was created on December 23, 1913 through the Federal Reserve Act. Seven Governors guide the functions of the board with each Governor appointed by the President and confirmed by Senate. A full term on the board is fourteen years with one Governor rotating off the board every two years.

Primarily, the Board of Governors of the Federal Reserve are charged with serving the public interest by promoting effective operation of the U.S. economy. This charge is accomplished by regulating the banking system and managing the economy to maximize employment and manage stable prices of goods in the country.

One of the most powerful committees of the Federal Reserve Board is the Federal Open Market Committee. This committee is charged with maintaining orderly markets by reviewing economic and financial conditions, determining appropriate monetary policy and evaluating the risks to long-term goals of price stability and sustainable economic growth. Twelve members govern this committee consisting of the original seven Governors of the Federal Reserve Board and five of the presidents of the regional banks of the Federal Reserve of which the President of the Bank of New York is a permanent committee member.

What does all of this have to do with you, the citizen? Everything! Think about the credit card you have in your wallet. The interest rate charged by banks for unsecured debt is typically higher than that charged for a mortgage collateralized with real estate. The Federal Reserve Board is the primary policymaker that establishes the discount rate (the rate at which banks participating in the Federal Reserve System can borrow money from the Federal Bank) which serves as the basis for calculating loan rates.

The Board of Governors meets every other Monday to review economic data for purposes monitoring progress. Should the Fed desire to slow down the money supply in the economy which would slow inflationary pressure, a simple raising of the discount rate will be entertained.

Inflation is the invisible effect that all consumers feel when buying gas, groceries or other goods. The U.S. Dollar is directly impacted by the inflation present in the economy and buys fewer goods when inflation is higher.

If you wish to make your retirement income last a lifetime, contact a CERTIFIED FINANCIAL PLANNER™ professional to help you plan for the best outcomes in your life. See you on the jogging trail!

Related Podcasts

It’s About More Than Numbers

Posted on May 10, 2021May 10, 2021 by Jimmy J. Williams, CPA/PFS, CFP®

Too often we paint someone with a broad brush as to their contributions to the world solely based on the group in which they are a member. For example, medical doctors may specialize in a field that allows them to focus on a specific area of the human body. These physicians are capable of providing you general advice and medical care but may also provide you greater, more detailed, information pertaining to a particular illness such as kidney ailments or cancer of the brain.

Wealth advisors are individuals who may specialize in certain areas of financial matters that a particular segment of the population needs. For example, many wealth advisors focus on corporate executives and their unique compensation opportunities. Other advisors may focus more on the intricacies of Social Security Benefits and less about long-term market investments.

To be certain, your life is more complex than simply working with numbers to reach your lifetime goals and dreams. It is vital that you consider the qualitative factors in your life as much, if not more so, than you do the quantitative factors. My case in point is the life of a lady we will call “Jane”. By all outward appearances, Jane had all that was needed to sustain her the remainder of her life and leave a legacy for her children to expand their wealth. A couple of years after her husband’s passing, we asked Jane if we could meet to discuss the important matters in her life. She assumed we were talking about her accounts and showed up with her Financial Organizer we provided when initiating the relationship.

Immediately, we recognized that Jane had not understood what we wished to discuss with her. After explaining the importance of happiness in her life, we asked her a few simple questions to initiate this subject. “What is one thing that happened recently that made you smile and one thing that was difficult?” She looked up at me and began to create a big smile on her face. She exuberantly stated, “I had the best time recently volunteering as a cancer patient attendee!” I asked her, “What of that process made you so happy?” She responded in a way that made me realize she had found a new purpose in life. “When John was dying, I had no one that understood, truly understood, what I was going through at that time in my life. By helping these terminally ill individuals live a more fulfilling life and knowing that someone understands the palette of emotions they are experiencing, helped me heal and find happiness again.”

We continued to discuss this wonderful opportunity for Jane to serve and offered her some qualitative advice. “Why don’t you establish a self-help group or lead others in the process of caring for terminally ill individuals that provides dignity, understanding and compassion?” This new form of serving her fellow man gave Jane the emotional support she needed to truly live again after the loss of her husband.

As wealth advisors that specialize in retirement planning, we place a significant amount of importance on helping clients understand, and navigate, the maze of life after the loss of someone special. We are proud of our technical competence and expertise. More importantly, we are most humbled that our clients know that we are here as a resource for more than numbers.

As humans, we are all different in some way. However, we all need emotional support, in addition to financial advice, to truly live a rewarding life. It is not all about the numbers unless you are talking about the lives you touched in deep, emotional moments that helped them see life in a better way.