March 2023 - Switching Gears

Once upon a time a psychology professor walked around on a stage while teaching stress management principles to an auditorium filled with students.  As she raised a glass of water, everyone expected they’d be asked the typical “glass half empty or glass half full” question.  Instead, with a smile on her face, the professor asked, “How heavy is this glass of water I’m holding?” Students shouted out answers ranging from eight ounces to a couple pounds. She replied, “From my perspective, the absolute weight of this glass doesn’t matter.  It all depends on how long I hold it.  If I hold it for a minute or two, it’s fairly light.  If I hold it for an hour straight, its weight might make my arm ache a little.  If I hold it for a day straight, my arm will likely cramp up and feel completely numb and paralyzed, forcing me to drop the glass to the floor.  In each case, the weight of the glass doesn’t change, but the longer I hold it, the heavier it feels to me.”

As the class shook their heads in agreement, she continued, “Your stresses and worries in life are very much like this glass of water.  Think about them for a while and nothing happens.  Think about them a bit longer and you begin to ache a little.  Think about them all day long, and you will feel completely numb and paralyzed – incapable of doing anything else until you drop them.”

In our office, we talk to people every day who are going through some kind of transition or change. These changes can be perceived as positive or negative, but invariably they create some level of stress. Sometimes it is deciding when to retire (or having that decision guided by our health or our company.) Sometimes it is a health concern or financial issue. Sometimes it is the death of a loved one or a major move or a job change. We walk with our clients through transition and change EVERY DAY. We also experience it for ourselves—our recent business transition and move to a new location, for example!

According to www.mindtools.com, there is a difference between transition and change. The difference is subtle but important. “Change is something that happens to people, even if they don't agree with it. Transition, on the other hand, is internal: it's what happens in people's minds as they go through change. Change can happen very quickly, while transition usually occurs more slowly.”  This makes me think of adaptability or flexibility.  The business world calls it being ‘agile’ - poised for change and progress.

At Faith Investment Services, we work very hard to help you not only ‘respond to change’ but to truly adapt and flourish in your new situation. We believe this comes by preparing in advance—simply talking about the impending changes can be a great help! It also comes by education—understanding as much as possible about the changes you are facing. Finally, we encourage you to participate in the process so that you can “own” your situation. It is your life, your finances, your future and we want to partner with you to help along the way!

Our recent business transition has reminded us how important flexibility and adaptability really are. Going through a healthy transition means moving toward change, not fighting against it. We are so very thankful for our clients and friends who have encouraged and supported us through our move, adviser change, and ownership change. You are the lifeblood of our business and we are truly grateful to work for you and serve you.  

We are pleased to announce that Roger of Jenera, OH won our semi-annual referral drawing in January. Every 6 months, we review the people who have referred a client to us and put their names in a drawing. The winner receives a $100 VISA gift card.  We are very thankful for those referrals and do not take that lightly—thank you for telling your friends about us!

There is still time to “soften the blow” on your 2022 taxes, in some situations. It might be helpful to make a 2022 IRA contribution or an HSA contribution—and you can do so until you file your 2022 taxes (or 4/18/23.)

If you are not sure whether this would be beneficial for you, we would be happy to help. Also, if you plan to contribute for 2022 tax year, be sure to ask for our help or clearly delineate which year the contribution is for.

If you are self-employed, you may have additional options such as a SEP IRA to set aside an even greater amount for tax deferral.

FINALLY...

If you have reached 59 1/2, most employers allow you to take an in-service distribution from your company plan. This is a way to roll money out of your 401k or 403b (or other plan) into your own individual retirement account (IRA.)  IRAs often give you more flexibility for tax planning at retirement, more investment options, and the ability to work with a trusted adviser. Call us to ask about this opportunity.