Financing Your Future – Excerpt From The Financial Shepherd

Navigating Market Volatility: Investment Tips for Steady Growth

Market volatility, the dynamic and often unpredictable fluctuations in investment prices, is a fundamental characteristic of financial markets. Understanding and navigating these fluctuations is crucial for any investor. Investors need to remember that such volatility is not only expected but can also present opportunities for long-term growth.

The stock market, for instance, has experienced numerous episodes of volatility, yet it has consistently demonstrated resilience, often rebounding to achieve new peaks. This historical perspective is vital in forming a balanced investment approach, emphasizing the importance of patience and a long-term outlook.

Understanding Market Volatility

Market volatility refers to the rate at which the prices of investments increase or decrease for a given set of returns. It’s essential to recognize that volatility is an inherent aspect of investing. For example, the stock market has seen numerous periods of rapid fluctuation. Despite this, it has historically shown an ability to recover and achieve new heights over time.

One key factor in dealing with market volatility is to avoid making decisions based on short-term fluctuations. Emotional responses, such as panic selling during downturns, often result in missed opportunities. Instead, focusing on the long-term potential of investments can lead to better decision-making. This approach involves looking beyond temporary market drops and understanding that these are often followed by recoveries.

Long-Term Investing Strategies

Investing with a long-term perspective means considering investments that can grow over years or even decades. This approach is beneficial for several reasons:

  • Historical Recovery: Despite short-term market drops, the overall trend of the stock market has been upward. Investors can benefit from the market’s historical tendency to rebound by staying invested during downturns.
  • Risk Minimization: The longer the investment period, the more time there is for recovery from temporary losses. This reduces the overall risk of underperformance.
  • Compounding Effect: Reinvesting returns can increase gains, amplifying growth over time. Albert Einstein referred to compounding interest as the “eighth wonder of the world,” illustrating its power in wealth building.
  • Avoiding Emotional Decisions: Focusing on long-term goals helps make rational investment choices, avoiding the pitfalls of emotional reactions to market swings.
  • Strategic Planning: Long-term investing allows for more strategic and informed investment choices, contributing to a solid financial stability and growth foundation.

Worth Advisors Will Guide You 

At Worth Advisors, we understand that navigating market volatility can be challenging. We are committed to helping our clients focus on achieving steady, long-term growth. Our approach includes personalized investment strategies tailored to individual risk tolerance and goals. We provide guidance and reassurance through all market conditions.

Our investment philosophy is not about chasing short-term gains but building a sustainable financial future. We recognize the unique financial needs of our clients, many of whom are women-led homes, business owners, and executives in the Charlotte region and beyond. Our focus on tax planning and individualized investment strategies sets us apart, allowing us to address our diverse clientele’s specific concerns and objectives.

By partnering with Worth Advisors, you gain a team committed to your financial success. We offer more than just annual portfolio reviews; we provide continuous support and education to help you navigate market volatility and toward your long-term financial dreams.

Secure Your Financial Future

We invite you to contact Worth Advisors. Schedule a consultation to discuss your financial goals and how we can help you build a portfolio for long-term success. Together, let’s create a path towards achieving your financial aspirations.

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 for the sale or purchase of 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.

Asset Allocation & Portfolio Design: A Guide for Worth Advisors Clients

Investing is a critical component of financial planning, and asset allocation is essential to this process. Asset allocation is a phrase that means spreading investments across various asset classes. This is done to balance risk with potential returns. On the other hand, portfolio design revolves around choosing which investments within these asset classes are suitable for the client. Worth Advisors, LLC embraces these strategies to create sustainable wealth for generations.

The Value of Tailored Approaches 

At our core, Worth Advisors, LLC helps people plan for the future. There is no one-size-fits-all approach either. Financial solutions can only be created after we understand our client’s concerns. That is why we are dedicated to understanding each client’s needs before crafting tailored asset allocation models and portfolios.

The Basics of Asset Allocation and Portfolio Design

When discussing asset allocation, investors distribute their investments across various asset classes previously mentioned. Examples of these classes include stocks, bonds, and cash. Different levels of risk and return accompany each one of these. To determine where your assets will be allocated, we must first know your investment goals, risk tolerance, and where you are in your life. Stocks, for instance, can yield high returns, but they come with increased risk. (We invest over the long term and do not attempt to “time the market.” We have written why in a previously published blog that you can read here.) Bonds present a safer alternative but offer lower potential returns. Cash stands out for its liquidity, albeit with the least return potential.

Developing an asset allocation model requires you to evaluate your financial objectives and risk appetite thoroughly. A balanced and thoughtful approach can lead to a model that aligns with your needs. Implementing this model involves selecting specific investments, a process made easier with the assistance of experienced financial advisors.

Achieving financial stability and growth is a long-term commitment. It requires a strategic blend of asset allocation and portfolio design. Maintaining and adjusting your asset allocation model is crucial as your life changes. You could move, start a new career, or experience a divorce. Regular reviews and periodic rebalancing ensure your strategies align with your goals and risk tolerance. Worth Advisors encourages a disciplined approach, emphasizing the importance of avoiding panic-driven decisions, particularly in volatile market conditions.

Worth Advisors, LLC
Are you ready to take charge of your financial future? Schedule a consultation with Worth Advisors today. Our team is eager to assist you in developing a tailored asset allocation model and portfolio that aligns with your unique financial goals and circumstances. Let us help you create the foundation for your financial future.

The Charitable Gift That Keeps On Giving

As the holidays are fast approaching and the season of giving is just around the corner, you may be wondering how you can make tax deductible contributions to the nonprofit organizations you admire and respect. One important but underutilized way that you can make a difference this year would be to gift your appreciated stock to a good cause. Gifting appreciated securities, that have been held over a long duration, can make the contribution you give far greater than if you would have just sold the shares and donated the cash instead. This in turn can have a bigger impact for the charitable cause and for you when filing your taxes at the end of the year.

So, what are the benefits of donating stock to charity? You will be making a huge difference for the organization. Whether it’s only one organization or several that you would like to make a charitable contribution to, you will find the process easier than you think. Depending on the type of organization, your contributions can be transformed into new equipment, new or upgraded technology, structural repairs or even additional manpower. Also donating stock can help with rebalancing your portfolio as well, and if you have held the stock for more than a year and it has appreciated in value, you can get a tax deduction equal to the stock’s fair market value. There will also be the added benefit of reducing and possibly eliminating your capital gains taxes. Be sure to speak with your financial advisor and tax professional to set up a donation strategy that will best fit your objectives.

This holiday season, why not make the most of your financial portfolio and give the gift of stock to your favorite nonprofit organization? It’s an incredibly easy yet hassle free way to donate to the causes that you deeply care about, while adding extra deductions for yourself as well. Your support will ensure that the work of your beloved nonprofit organizations will continue ahead for the foreseeable future.

By: Greg Goodlett 
Chief Investment Officer
Worth Advisors

Planning > Investing

While investing can be pivotal in accumulating long-term wealth, the linchpin of financial success often rests on meticulous planning. Without a well-structured blueprint, there is a heightened risk of making suboptimal investment choices that can jeopardize your financial health over time. The driving force behind these statements is encouraging you to shift perspective—primarily if you have never worked with a financial advisor. Those unfamiliar with us may assume that investing is at the heart of what we do. 

Consider This

Investing is a piece of what we do; if there are layers of financial planning, planning is at the top. It is the intangible element that ties everything together. To explain why, consider the following illustrative scenario. A recent college graduate is 25 years old and is just beginning her career. To build wealth, she delves into the stock market. Because she knows the market, she makes the mistake of allocating all her capital into a single stock. She experiences a downturn when the value drops. 

Though the example was simple by design, several things are at play here. Had there been a pre-established financial strategy, she would have had the added advantage of being equipped with insights regarding risk appetite and investment objectives. Whereas this foundational understanding would have deterred hasty decisions, was this even the right option for her? In all likelihood, no. There’s nothing wrong with taking on more risk when you are younger, but several other ways to build long-term wealth don’t involve personally picking stocks. 

Find Your Plan 

A financial plan is a navigational tool that defines someone’s trajectory. Was the girl in the example a good fit for investing? Impossible to say. It depends on several factors, such as her current fiscal situation, objectives, risk tolerance, and having a blueprint that speaks to her savings, investments, and expenditures. Furthermore, there are no universal plans or strategies. Financial advisors should tailor their advice based on individual requisites.

However, there are several different questions that people should be able to answer before a financial advisor can begin formulating a plan.

– What sort of milestones are you looking to achieve? For example, are you focused on saving for a house, putting money aside for education, or want to build your retirement savings?

–  Although your age will factor into this decision, what is your comfort level with risk? Each type of investment comes with a different level of risk, and your financial position, age, and goals get factored into this decision. 

– Regarding your financial position, consider your savings, liabilities, and monthly budget. 

– Allow a financial planner to craft a road map that outlines how to allocate your money effectively. This must align with your goals.

Worth Advisors, LLC 

Worth Advisors, LLC serves our clients. To do so, we advocate planning over sheer investing. We are committed to curating a financial plan that works with your specific circumstances and long-term goals. Collaborating with us means genuine conversations about your aspirations, risk threshold, and current budget. Never underestimate the value of a budget, either. Although it doesn’t have the allure that investing does, it is a key component of the planning process. Allow us to build a plan for you because it is the heart of our financial services. Contact our office today to schedule a consultation. 


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 for the sale or purchase of 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, when sold, may be worth less or more than their original cost.”

Effective Strategies To Minimize Your Biggest Liability

There’s a danger in perpetuating the worn-out cliche about death and taxes being the only certainties in life. The concern is that people accept that taxes are inevitable and are powerless to do anything about it. Ironically, many of these same people will discuss how the 1% find loopholes to avoid their tax obligations. Here’s the secret: There is no secret. The strategies employed by others, regardless of how wealthy they are, are at your disposal. Use them. The difference between them and you is that they refused to take a passive stance when limiting their most significant liability, i.e., their taxes. 

Worth Advisors, LLC empowers our clients by effectively delivering knowledge and strategies to reduce their tax liability. Like before, the only difference between them and you is that they decided to work with us. We will work with anyone because our beliefs are built around how everyone deserves a financial advisor. Are you living paycheck to paycheck and can’t afford to invest? Great. We’ll help you build a budget. Are you a professional coach with uncertainty about when and where your next job will be? We’ll help you plan for that too. 

How to Save Money on Your Taxes

Let’s start with something basic: Make pre-tax contributions to your retirement accounts. This is one of the most straightforward ways to lessen your taxable income. Contributions to your 401(k) or IRAs get deducted from your taxable income, resulting in significant tax savings. We like to tell our clients to pay themselves first. It doesn’t matter how much you make; it’s how much you save. This allows you to plan for your retirement while reducing your tax liability. 

One of the reasons that taxpayers miss out on potential deductions and credits is that they are unaware of them. We are. You must have a financial advisor who will learn about you and your goals while exploring and researching the possible tax breaks available to you. This includes deductions for medical expenses, student loan interest, and credits that can be used toward education or child care. You can maximize your tax savings by diligently claiming what you qualify for. 

Supporting charitable causes supports and nurtures your community and allows you to reduce your taxable income by donating to qualifying charitable organizations. To go even deeper, people must look at tax-advantaged investments like municipal bonds offering tax-exempt income. They deliver steady returns while also reducing your tax liability. 

Do You Accept That Taxes Are Your Biggest Liability?

They are, and taxes play a significant role in shaping your financial landscape. They reduce the amount of money available for savings, investments, and personal expenses, leaving you with fewer resources to achieve your financial goals. In addition, these tax considerations influence your financial planning decisions. This applies to retirement savings, funding your child’s education, or making significant purchases. Each one of these actions has tax implications. 

Go back to the old phrase of death and taxes. Though taxes may be unavoidable, you have several ways to limit your burden. Don’t be a passive bystander. 
One of the things you may be saying is that the 1% are using more strategies than we addressed in this blog. They are, and the things we have discussed here are the basics. The more we learn about you and your financial goals, the better position we will be in to help you manage your assets and accumulate wealth. If you are uncomfortable with the tax system, contact our team of experienced professionals who deliver personalized assistance. They will develop tax-saving strategies tailored to your specific situation. Contact Worth Advisors, LLC, to schedule a consultation. Take charge of your financial future.