How Are You Planning for Your Retirement?

Someday, we will all retire or at least slow down.

This Article Briefly Looks at Stock Market Volatility and its Longevity. 

 In last month’s article about inflation, we learned how it was having a huge impact on patterns of consumption behavior.  This month, we will explore what to expect in this period of volatility.

https://www.youtube.com/watch?v=BegQi9twK78&t=1s

Click the video for additional footage on:

Is This Stock Market Volatility Rational, and Will It Ever End?

Costs Are Growing and Confidence is Falling, But Investors Should Remember This is a Marathon, Not a Sprint

We’ve been suggesting for months that, in our view, inflation will not be transient and instead is likely to persist for the foreseeable future. Given data developments over the last year, it would seem our view has been proven right.

You Can’t Stop a Crisis, But You Can Create a Long-Term Financial Wellness Plan that Mitigates Day to Day Turmoil. Here’s How.

During times of uncertainty, various risks to the economy manifest themselves in the markets, often through the assumptions made regarding future performance.

How to Take Advantage of This Great Retirement Income Tool

Someday we will all retire, or at least slowdown. How prepared will you be for that day? Retirement planning in the form of a 401(k) plan is an important part of your retirement income matrix. First of all, it’s never too late to begin saving for retirement, and no amount is too small. An important second step is to contact your plan administrator and determine if, or to what extent, your contributions will be matched.

Tempted to Make Big Changes in Response to Short-Term Volatility?

Read this First!

Staying the course amid economic turmoil can be a daunting proposition. As markets ebb and flow in response to world events as well as earnings reports and data releases from the Federal Reserve, it can be tempting to divert course away from your long-term objectives and financial planning goals.

What Is GDP?  

At a high level, let’s first observe that gross domestic product (GDP) is 70%  consumption. Said another way, consumption is simply you and I buying things. These things can be daily routine staples, a new car, or a household appliance, as well as any services and other non-tangible items. Clearly, in order to consume you must have income, or otherwise have the capacity to spend. Fundamentally, inflation erodes that capacity through rising prices that increase faster than your income.

We are furthermore witnessing one of the most visceral supply chain disruptions in economic history – if there was ever a time for a passive, hands-off approach to financial planning or portfolio management, this is certainly not it.  

Uncertain Times Underscore the Importance of Retirement  Planning and Having a Sound Financial Plan  

While the development of a financial roadmap will not negate these concerns, it can  help by addressing the question of “What happens if?” What happens if I want to retire early?

For anyone who has not worked with a Financial Advisor, this question has likely crossed their mind at least once. According to Statista,* 65% of Americans in 2020 indicated that they do not work with a Financial Advisor.

Updated October 1st, 2021

I believe that we are at a point of inflection where risks of various types are weighing on the market as we remain relatively near all-time record high levels.

What Are the Main Areas of Risk for the Financial Markets?

Broadly, I would suggest that the three main areas of risk that are of concern today. The following areas of risk will be covered in detail below:

geopolitical risk

economic risk

political risk  

Geopolitical Risks: 

China’s Trade Tensions

China remains to be a relevant geopolitical concern.  Neither the U.S.