Statement of Holdings

As we approach the end of the year and contemplate heading into 2019 this is a great time to consider what are we holding onto that we shouldn't be and how do we enter 2019 free of encumbrances that are not serving as well. The following which was shared by Carl Richards, one of the thought leaders in the world of financial planning and life that I follow. I think he does a great job of putting into perspective this idea of clearing the decks of ineffective holdings in our lives.

Interesting and Startling Facts


From The Atlantic: “This is What Life Without Retirement Savings Looks Like”, by Alana Semuels, Feb. 22, 2018

  • the median savings in a 401(k) plan for people between the ages of 55 and 64 is currently just $15,000, according to the National Institute on Retirement Security, a nonprofit. 
  • Two-thirds of Americans don’t contribute any money to a 401(k) or other retirement account, according to Census Bureau researchers.
  • Between 8,000 to 10,000 American Baby Boomers reach retirement age, turn 65, every day, according to Kevin Prindiville, the executive director of Justice in Aging, a nonprofit that addresses senior poverty. 
  • While poverty fell among people 18 and under and people 18 to 64 between 2015 and 2016, it rose to 14.5 percent for people over 65, according to the Census Bureau’s Supplemental Poverty Measure,
  • In America in 2016, nearly half of all single homeless adults were aged 50 and older, compared to 11 percent in 1990.
  • What can be done to help today’s seniors and generations to come? There are two approaches, Prindiville says: help people save for old age and make retirement more affordable.

Talking to Your Aging Parents About Their Finances

Each day between 2011 and 2030, 10,000 baby boomers will celebrate their 65th birthdays. As the boomers grow older, their middle-aged children may find themselves in a challenging situation: providing financial assistance to their parents as well as their own kids.

The Landscape of “money wealth” and what it may mean for each of us…

The Guardian Newspaper of Great Britain reported on a study by the Institute for Policy Studies that the three richest persons in the U.S., Jeff Bezos, Bill Gates, and Warren Buffett, own more wealth than the least wealthy half of the entire U.S. population. Apparently they calculated that the ~$248,500,000,000. Of wealth owned by these three richest exceeds the total wealth of the least wealthy 160,000,000 people in the U.S.  This also reveals that the average wealth of these 160,000,000 people is less than $1,500 each.

Home Prices and investment implications for buying single family residences as investment rentals going forward..

The upshot is that Average home prices have grown by an atypical degree in California, New York, Hawaii, and Mass. Since 1980 versus the rest of the US. Much of the growth was driven by three factors:

  1. Lowering interest Rates
  2. Larger and Fancier homes
  3. General Wage Inflation

With these “tail-winds” for home valuations not as likely to be as helpful, on aggregate, going forward, We should expect typical home prices to be near to flat for an extended period.

Less than 40% of Americans have the savings to cover a $1,000 expense

And such an expense is far from unusual. More than one-third of households, 34 percent, endured a major unexpected expense over the past year, according to Bankrate’s latest Financial Security Index survey, with only 39 percent saying they would cover a $1,000 blow with savings.

This is why we are so hot to have everyone we work with set aside and maintain a solid amount of cash for emergencies (and opportunities).

Click to read more Most Americans don't have enough savings to cover a $1K emergency

Really??? – What Were We Thinking?

Ok, ok… New time allocation plan: 

How is your individual/household debt level?

Separately from government debt or corporate debt, what as individuals are we doing about our debt levels since the 2008 recession?

Well… Less mortgage debt and more Student and Auto loan debt for us as a whole…


Proposed Tax Plan

Since President Trump’s election, the markets have climbed to record heights, partially thanks to investor enthusiasm for Trump’s policies.

One of those policies is tax reform. After months of behind-the-scenes talks between the White House and Capitol Hill, Republicans have at last released their plan to update the tax code.

Tax law is murky, and rarely much fun to read about. But because taxes have such a big impact on your finances, I think it’s important to look at the Republicans’ plan so that we can do some planning of our own.

Protection of Your Personal Confidential Information

We would like to share the following principles as a guide to why a proactive approach is so important and helpful: