Financing Your Future – Excerpt From The Financial Shepherd

Although the title of this blog contains the words “midterm elections,” it doesn’t have anything to do with politics or who you should vote for. Our goal has been—and will always be—to serve our clients while giving them the tools and advice they need for long-term financial success. Nothing will disrupt our commitment and loyalty to those who trust us to support them. We aren’t discussing politics because political views are not our concern. Many people we speak to are concerned about the changes that may occur because of the midterm elections.

How often have you heard people discussing the stock market, inflation, or an impending recession? These are at the forefront of people’s concerns and are directly tied to the midterm elections. Depending on your personal stances, you may have opinions on how these issues may improve because of them. 

Key Points to Put You at Ease

Many people want to know when the right time to invest is. We must reiterate the inherent dangers behind believing you can time the market. When Warren Buffet said that his favorite holding period was forever, he did so because you work the market over the long term. Look at the basic principles involved with dollar-cost averaging. By investing at regular intervals over a wide range of stocks, you can survive and thrive despite economic fluctuations. 

Secondly, when Worth Advisors, LLC, offers you financial advice, we always consider a wide range of factors. We want to know your age, your goals, and the type of investment you are making. We assess many factors because our goal is to protect your assets. This is why we wouldn’t tell someone in their nineties to invest in a start-up or advise a 20-year-old to only invest in Certificates of Deposit at the bank.

Will My Investments Plummet?

To give you a better idea of what we mean by focusing on the long term, we should put forth some interesting statistics released by Vanguard. They went back to 1860 and showed that historically, investments had performed the same in an election and non-election year. Additionally, take a closer look at this: 

• The annual compound return with a Republican president: 8.3%
• The annual compound return with a Democrat president: 8.4%

Ironically, long-term investments won’t get derailed by short-term fluctuations and changes. If you still have concerns, schedule a consultation with the trusted financial professionals at Worth Advisors, LLC. Our goal is to serve you, and we will do that despite what is happening worldwide. For more information about how we can achieve that, reach out and schedule a consultation.

Today, we are discussing how and why it is important to close the financial literacy gap between men and women. The poorly-conceived stereotypes connected to gender and money are inaccurate as they are harmful. For example, there are surveys that show that millennial men are almost three times more likely to marry someone who can pay off their debts. Although we are not here to dispel every misconception regarding gender and money, it is essential to discuss why it is so fundamental. 

People live longer—and women, on average, tend to live five years longer than men. It is paramount to have the ability to accumulate long-term wealth. Financial literacy is a prerequisite thereof. What’s particularly staggering is that women have made tremendous progress. They are well represented in higher education and the workplace. The Stanford Center on Longevity says, “… the gender gap in financial literacy persists regardless of age, education level, and marital status.” 

The Root of the Issue

Although what we are about to discuss may seem abstract, it is based on the findings of a survey conducted by the Stanford Center for Longevity. Their survey was taken by people ranging from 20-94. The questions were meant to determine two things: confidence and their level of involvement in financial decision-making, 

The results concluded that women were less confident than men when making financial decisions. However, that conclusion did not apply to all financial decisions. In terms of the types of financial decisions we encounter on a daily basis, men and women were equally able to navigate them. Regarding major decisions (the kinds involved in long-term financial planning), women had lower scores. The survey asserted that this wasn’t due to a lack of knowledge but a lack of confidence. 

We Are Working to Be Part of the Solution

One of our core beliefs at Worth Advisors, LLC, is that financial planning is for everyone. Regardless of your financial situation or gender, you deserve to reap the benefits of having a sound financial future. Another component that makes us uniquely qualified to assist you is that we have a licensed mental health counselor (LMHC) on our staff. In addition to being the Chief Operating Officer, he helps a wide range of people working through difficult times or struggling to make decisions—some of which we have already discussed in this article. 
Wherever you are in life, regardless of your circumstances, you can come into Worth Advisors knowing that we offer a holistic approach to financial planning. Our role is to support and empower you to make the types of decisions that will positively impact your future. Give us and call, so we can learn more about how we can serve you.

This topic hits close to home for reasons we will not get into at the moment. For anyone who has been a victim of identity theft, we empathize and understand what you are experiencing. For those who have not, it’s unnerving. People may open their mail and discover that goods or services have been purchased in their name. Others learn that money has been withdrawn from their account without their knowledge.

Imagine discovering that a loan has been taken out using your personal information. What’s worse is that the person who defrauded you never intended to pay back the money. Now, you are being targeted by collection agencies. Many of which will not likely stop calling when you tell them you were a victim of identity theft. It’s a powerless and frustrating experience that no one deserves to go through. 

The Financial Ramifications of Identity Theft

Credit scores take years to build and seconds to destroy. The financial implications of identity theft can (potentially) last for years. These aren’t the types of cases where you notice that someone put a charge on your credit card that you hadn’t authorized. With these scenarios, your credit card company will investigate the charge and issue you a new card. You caught it early. 

Others aren’t as fortunate. They could have been victims for years without knowing it. A hacker can access a business or organization that has a record of your Social Security Number (SSN). They can then use your number to take out loans or purchase under your name illegally. If they defaulted on a loan while using your SSN, you might discover you have a lien on your property. Sometimes, people may not realize this until they go to sell their home and a title search discovers the lien—which could possibly halt the sale. Due to how powerful an SSN can be, victims of this magnitude may be able to receive a new SSN. However, your previous number still exists and is on record. 

Another typical example is the person who files their taxes and learns that someone else has already done so in their name. In all likelihood, the hacker did this because they wanted the tax return. The IRS uses a specific form (IRS Form 14039) for people in this situation. Not only has someone taken your return, but this issue has to be resolved for you to file your tax return and receive your refund successfully. 

Speak With a Professional & Compassionate Financial Advisor 
Everyone who works at Worth Advisors, LLC embodies the belief that we exist to serve you. Never assume that you cannot benefit from speaking with a financial advisor who will work with you regardless of your challenges—including identity theft. Make the decision to take command of your finances and your future by speaking with a financial advisor who wants to help. Contact us to schedule an appointment.

Great leaders understand that success belongs to the team and failures land on the coach. When the team isn’t winning—regardless of the reasons why—the coach is the person who has to answer for those losses. Typically, this equates to the coach being forced to resign or asked to leave. Fans of sports such as NCAA basketball may quickly offer the adage that coaches are hired to be fired. As true as that is, it is too easy to overlook that coaches are people with families, mortgages, and plans for the future. The stress and pressure of being a professional coach, especially someone who has been successful enough to earn a chance to run a Division 1 team, is overwhelming. Losing affects more than the fans; it impacts a coach’s family and their ability to provide for them. 

The Challenges of Being a Coach

At Worth Advisors, LLC, we have been fortunate enough to work with several Division 1 college coaches, primarily those who work with men’s and women’s basketball teams. From a financial perspective, coaches have some very unique considerations. The NCAA is a competitive business, and if you look at the 2021-2022 season as an example, you will see at least five basketball coaches within the infamous SEC have been fired for their team’s performances. 

No one gets to that level without being in the top percentile of their field, despite your opinions of the coach’s effectiveness. Even coaches with winning records and relative success in the NCAA Tournament can lose their job if the program wants a new voice in the locker room or someone with a different approach to the Xs and Os of the game. 

Coaching From a Financial Planning Perspective

Although we hope that each of our clients has the storied career of Coach K (apologies if you are a UNC fan), it would be an understatement to say that level of longevity is atypical. Although a Division 1 basketball coach earns three to five million dollars a year, there is no guarantee that they will have another job that pays on that level when they leave the organization. Coaches have to save aggressively. We advise our clients never to have less than 12 months of living expenses. Two of those twelve months should be in the bank, and the rest should be invested. 

Even coaches who haven’t risen to the level of Division 1 college athletics have even more significant challenges. In addition to taking on the financial risks of being a coach, they are also not earning the income that a Division 1 coach does. Because that is where most hope to go, they may have to take less money to get there. Consider the coach who has to choose between being a head coach at a smaller, less-paying school and becoming an assistant coach at a larger program. 

Coaches earn their future jobs by proving their abilities at the lower levels. In the example we just provided, that coach may opt for less money now for the opportunity to be a head coach—which they may try to parlay into a head coaching role that pays more in the future. That same coach needs to be in the proper financial position to make that move.

Worth Advisors, LLC

As both fans of the sport and as professional financial planners, we are blessed enough to have been able to work with several NCAA basketball coaches. We understand the demands of being a coach and are in the best position to advise you on how to mitigate the risks associated with your job from a financial perspective. For more information about how we can serve you, contact Worth Advisors, LLC, and schedule an appointment. We look forward to meeting you.