Financing Your Future – Excerpt From The Financial Shepherd

Rebalancing Isn’t Just About Stocks: Why Total Wealth Rebalancing Matters

Most people think of rebalancing as something you do with your investment portfolio—tweaking your mix of stocks and bonds to stay on target. That’s important, sure. But if you stop there, you’re missing the bigger picture. Your finances are more than your investment account. Rebalancing your total wealth means checking every part of your financial life to ensure it aligns with your goals. And that can make a much more significant difference than just shifting a few percentages in your portfolio.

Look Beyond the Portfolio

Rebalancing your wealth means reviewing all the areas that affect your financial health, not just your stocks and bonds. That includes things like:

  • Cash Reserves: Are you holding too much cash in low-interest accounts? Or not enough to cover short-term needs?
  • Debt: Is your debt structured in the most efficient way? Could you benefit from refinancing or consolidating?
  • Insurance: Do your insurance policies still match your life stage and responsibilities?
  • Tax Strategy: Have you reviewed tax planning opportunities based on current income, deductions, or investment decisions?
  • Business Interests or Real Estate: If you own a business or property, is its role in your overall plan still effective?

Each of these pieces can shift over time. Life changes, markets move, and your goals evolve. Total wealth rebalancing is about stepping back to assess everything and making thoughtful adjustments.

Why It Matters

When one area of your finances becomes out of sync, it can impact everything else. For example, if you’ve had a significant life change—a new job, a move, an inheritance—your plan needs to reflect that. Even without significant events, your wealth can drift away from your goals due to time or market performance.

Think of total wealth rebalancing as a regular tune-up. It helps you:

  • Stay aligned with your priorities by ensuring your plan reflects what matters most to you.
  • Reduce unnecessary risks by reviewing outdated decisions or overlooked exposures.
  • Maximize opportunities by taking advantage of changes in tax law, interest rates, or your financial position.

It’s not about perfection. It’s about intention. Total wealth rebalancing isn’t just a financial to-do list—it’s a way to keep your entire strategy working for you.

Keep the Big Picture in Focus

At Worth Advisors, real wealth management means looking at every piece of your financial life, not just your investments. Let’s chat if it’s been a while since you looked at the whole picture. We’ll help you step back, review, and rebalance so your strategy fits where you are today and where you want to go tomorrow.

Am I Going to Be Okay? Reassurance in Uncertain Markets

You’ve probably heard it a hundred times: markets are volatile. But when headlines keep hammering on inflation, tariffs, and market swings, it’s natural to pause and wonder—will I be okay? That question doesn’t mean panic. It means you care about your financial future. The good news is that there are clear steps you can take to stay grounded and feel confident, even when the market feels unpredictable.

What to Remember When Markets Get Choppy

Volatility isn’t new. It’s a normal part of investing. Market dips and global events like trade wars and tariff battles come and go. What matters most isn’t what the headlines say today—it’s the strategy you have in place and how you respond to the changes.

Tariffs can impact certain industries, and that can ripple into the stock market. But that doesn’t mean your entire portfolio is in jeopardy. Long-term investors who stay the course are historically the ones who come out ahead. If your investments are aligned with your goals and risk tolerance, short-term swings shouldn’t throw off your long-term vision.

The key is to stay focused on what you can control. That means reviewing your plan, assessing your current situation, and staying diversified. Worry comes from uncertainty, but clarity brings confidence.

Steps You Can Take Right Now

  1. Review Your Plan: Review your financial goals and the strategy supporting them. Is your portfolio built to weather different market cycles? Has anything changed in your life that should update your plan? If you’re unsure, now’s a great time to check-in.
  2. Stay Diversified: One of the best defenses against volatility is diversification. Ensure your investments aren’t tied too heavily to one sector or market. Spreading risk is a smart way to manage uncertainty.
  3. Don’t React Emotionally: It’s tempting to make sudden moves when the market drops. But reacting out of fear often leads to bad timing. Market declines are part of the process, and history shows they tend to recover.
  4. Refocus on Long-Term Goals: Think beyond this week or this month. Whether you’re investing for retirement, a house, or your kid’s college fund, stay focused on the bigger picture. Long-term planning wins over short-term guessing.
  5. Revisit Cash Flow and Spending: Volatility is a great reminder to consider your budget. Are you spending in line with your goals? Do you have a cushion set aside for unexpected changes? These habits keep you steady.

Let the Data, Not the Headlines, Drive Your Decisions

It’s easy to get swept up in the emotion of the news cycle. But the truth is, markets always respond to new information and often bounce back faster than people expect. If tariffs shift or policies change, markets will adjust. What matters is that your investment approach doesn’t swing with every headline.

A solid plan uses real data, historical trends, and proven principles. That’s what helps you stay calm when everyone else is nervous. Your financial goals are unique, and your plan should reflect that. That’s why personalization and regular review matter more than ever.

You’re Not Alone in This

At Worth Advisors, financial peace of mind comes from clarity, preparation, and partnership. If you’re asking, “Am I going to be okay?”—that’s not a sign of weakness. It’s a sign that you’re ready to take your financial future seriously. Let’s talk about where you are, where you want to go, and how to keep you on track through whatever the market brings.

Should I Worry About Market Fluctuations During An Election Year?

Because we are close to another election, we must address some common concerns people have about its impact on the market. People believe the market is at a crossroads during an election year for various reasons. Its final destination won’t be known until we know who will run the country. Given how much the media can fuel these concerns, it’s straightforward to get caught up in this narrative that there’s a potential collapse around the corner. As financial advisors, we see people make hasty decisions because of these emotions. 

We want you to understand how previous elections have impacted the market to give you peace of mind and clarity. We go through this every four years. Stop worrying about the future and rely on the past. Ask yourself whether history supports the notion that elections have significantly disrupted markets. 

Market Performance in Election Years

One of the most persistent myths is that the stock market performs poorly during election years. The assumption is that the uncertainty surrounding elections leads to weaker market returns. On the surface, it does make sense—which is why it is such an easy myth to get pulled into. However, historical data doesn’t back this. If you look at how the S&P 500 has performed since 1928, the average return during election years is 7.5%. 

The average return in non-election years is 8.0%. So, yes, there is a slight drop, but it does show that the dropoff isn’t as significant as people think. A closer look reveals that while volatility can be higher in election years, this volatility won’t necessarily lead to adverse outcomes if you invest over the long term.  

For example, while the average election year since 1980 has seen an intra-year drawdown of about 17%, markets have often recovered once election results are finalized. Additionally, economic fundamentals drive market returns, which remain stable or improve despite political uncertainty. This demonstrates that the stock market’s resilience often overrides the temporary fluctuations that might occur during an election year.

The Impact of Election Results on the Market

Another widespread belief is that markets will crash if a particular candidate wins. This idea is often fueled by the emotions and uncertainty that elections bring. However, historical trends show that the market’s response to election outcomes is unpredictable. Looking back at previous elections, market movements are more closely tied to the broader economic environment than to who wins the election. For example, during the 2008 election, the market was more influenced by the unfolding Global Financial Crisis than by the candidates’ policies.

Similarly, in 2020, the COVID-19 pandemic had a far more significant impact on the market than the election itself. The data does not support the belief that the Federal Reserve avoids changing monetary policy during election years. The Fed has historically adjusted interest rates based on economic needs, regardless of the political calendar. For instance, since the 1950s, only in 2012 did the Fed refrain from raising or lowering rates during an election year. This shows that economic conditions, not political considerations, guide monetary policy decisions. After election results are announced and uncertainty fades, markets often rally. This pattern has been observed in many election years, indicating that the fear of a market crash tied directly to election outcomes is largely unfounded.

Focus On the Long Term & Work With Us 

Worrying about market fluctuations in an election year is understandable, but history shows these concerns are often overblown. The market tends to remain stable, with performance more influenced by economic factors than the election. If you are concerned about how the upcoming election could impact your investments, schedule a meeting with our team at Worth Advisors. We can help you create a financial plan focusing on long-term goals rather than short-term election cycles.

Disclaimer: Always consult a financial, tax, or legal professional familiar with your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation to sell or purchase any securities. Any rates of return are historical or hypothetical in nature and are not a guarantee of future returns, which may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions and security positions, which, when sold, may be worth less or more than their original cost.

Planning for Multigenerational Wealth

When thinking about wealth, it’s natural to consider personal finance, investments, and retirement. But have you thought about the legacy you want to leave behind? What steps can you take to create and preserve wealth for your loved ones? According to Trust & Will, creating and preserving multigenerational family wealth involves careful planning and education. Legacy and family are inherent parts of wealth planning, and taking steps now can ensure your hard-earned wealth benefits future generations. Multigenerational wealth planning isn’t just about amassing wealth but sustaining it across generations.

According to Forbes, 90% of wealthy families lose their wealth within three generations. This loss often results from poor decisions by heirs and a lack of estate planning, which can lead to significant taxes and probate costs. Even if you successfully build wealth, maintaining it over generations is challenging. Protecting and preserving wealth is as important as creating it. Here’s how you can start planning for multigenerational wealth.

Educating the Younger Generation

Financial education is crucial. According to NBC News, one in four U.S. adults says their parents didn’t teach them about money. Schools also lack financial literacy education, though some are starting to address this gap. Early on, teaching children about money management helps them develop strong financial habits. Discuss basic principles like giving, saving, and spending. This early education increases the likelihood that your heirs will manage their inheritances responsibly, protecting family wealth for years. There are several finance books that teenagers can use to help educate themselves about money:

  • The Teen’s Guide to Personal Finance: Basic Concepts in Personal Finance that Every Teen Should Know by Joshua Holmberg and David Bruzzese
  • I Want More Pizza: Real World Money Skills For High School, College, And Beyond by Steve Burkholder 
  • Smart Money Smart Kids: Raising the Next Generation to Win with Money by Dave Ramsey and Rachel Cruze
  • The 7 Habits of Highly Effective Teens by Sean Covey
  • Rich Dad Poor Dad for Teens: The Secrets About Money – That You Don’t Learn in School! by Robert T. Kiyosaki –

Teaching children basic money principles in a safe environment helps them develop strong financial habits for adulthood. This practice enhances the likelihood of preserving your family’s wealth across generations. You can start by teaching your children about budgeting, saving, and the value of money. Including them in age-appropriate family financial discussions can provide practical learning experiences reinforcing these concepts.

Fostering Financial Transparency

Open discussions about money are essential. Many families avoid talking about finances, considering it taboo. This silence can be harmful because younger generations won’t understand the importance of financial planning. Hold family meetings to discuss financial values and estate plans. This transparency helps ensure everyone understands and supports the family’s financial goals.

Fostering financial transparency builds trust and ensures everyone is on the same page. Regular updates and open communication help keep all family members informed and aligned with the financial plan. By openly discussing financial matters, you can prevent misunderstandings and conflicts. This practice also prepares younger members to handle financial responsibilities confidently. Including all family members in financial planning discussions can make sure that the legacy you leave behind is honored and sustained.

Build & Shape A Legacy with Worth Advisors 

Planning for multigenerational wealth involves educating the younger generation and fostering open financial discussions. These steps help ensure your family’s wealth is preserved and responsibly managed across generations. Schedule a consultation with Worth Advisors today for personalized advice on creating a comprehensive wealth plan tailored to your family’s needs. Together, we can build a strategy that supports your family’s financial legacy.

Disclaimer: Always consult a financial, tax, or legal professional familiar with your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation to sell or purchase any securities. Any rates of return are historical or hypothetical in nature and are not a guarantee of future returns, which may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions and security positions, which, when sold, may be worth less or more than their original cost.

The Role of Annuities in a Retiree’s Financial Plan

Selecting suitable income sources to fund your retirement planning is paramount. With this in mind,  annuities are an option for many retirees. They offer consistent payments throughout your life, which leads to financial stability in retirement. Such features make annuities a valuable component of retirement planning. 

They provide predictable income, which can be customized to align with your specific retirement needs and objectives. Annuities also ensure income continuity for a surviving spouse, offering financial security beyond the retiree’s life. Typically, you fund these annuities well before retirement, either making a one-time lump sum payment or spreading your contributions over several years. While annuities are often viewed as having upfront costs and penalties for early withdrawal, they offer a secure income stream for retirement.

Understanding Annuities 

An annuity is a contractual agreement with an insurance provider. You commit capital upfront, either all at once or over time and in exchange, you start receiving regular financial disbursements at a predetermined future date. This setup is particularly effective in mitigating the risk of depleting your retirement funds prematurely. Annuities come in two primary forms: immediate and deferred. Immediate annuities begin disbursing funds shortly after the initial investment, making them ideal for retirees needing immediate income. In contrast, deferred annuities delay payments until a future date, offering an opportunity for your investment to accrue value. 

The latter could lead to higher payouts. Integrating annuities with other retirement income, like Social Security or pensions, is crucial for a well-rounded retirement plan. Though annuities might carry sizable initial costs and penalties for early access, they are instrumental in ensuring a reliable income stream in retirement. Immediate annuities provide a financial safety net shortly after investment, whereas deferred annuities are a long-term economic strategy, allowing your funds to grow.

Fixed vs. Variable Annuities

Deciding between fixed and variable annuities depends on your financial goals and risk tolerance. Fixed annuities guarantee a specific payment amount, providing a dependable income stream and reducing uncertainty in your financial planning.

Conversely, variable annuities tie your returns to the performance of chosen investment options, such as stocks or bonds, which introduces a higher degree of risk but also a chance for increased gains. These are particularly useful in managing the impact of inflation. You should be familiar with the terms associated with your annuity, including any fees and potential charges for accessing funds prematurely. 

While fixed annuities appeal to those seeking financial stability, variable annuities might suit those willing to take on more risk for greater returns. Fees related to annuities can be significant, and they are an essential factor to consider when evaluating the suitability of this investment. Moreover, timing the annuity payouts to coordinate with your retirement plan ensures they meet your living expenses when needed. Fixed annuities provide security with known returns, while variable annuities offer growth potential tied to market performance. Navigating these options requires careful consideration of long-term financial goals and current market conditions.

Let Us Serve You

Planning for retirement involves comprehensive strategies and understanding all available financial instruments. Annuities, while complex, offer a structured way to secure a reliable income throughout retirement. If you’re contemplating including an annuity in your retirement portfolio, assessing how it fits your broader financial goals is vital.

Financial advisors provide tailored strategies to your unique situation. At Worth Advisors, we guide you through complex retirement planning choices, focusing on securing a prosperous and stable future. Contact us so we can help you build a resilient financial retirement plan.

Disclaimer: Always consult a financial, tax, or legal professional familiar with your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation to sell or purchase any securities. Any rates of return are historical or hypothetical in nature and are not a guarantee of future returns, which may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, which, when sold, may be worth less or more than their original cost.