October 2024 - Your Biggest Fear

Each year, all of our employees who are licensed by FINRA are required to attend a conference to stay on top of industry requirements and compliance details. One line from a keynote talk caused us all to stop in our tracks.  He said, “Your greatest fear is how I make my living!” He was talking about most people’s fear of public speaking. Yet we glanced at each other and almost laughed out loud because what he was saying is also true about US…

Your greatest fear (in some cases) is how we make OUR living!

We talk to people every day that are afraid of the future. Sometimes it is true paralyzing fear. Other times it is a gnawing uncertainty that gives them unease. Will I have enough money to retire? Will the election change life as we know it? Should I hoard a precious commodity in the event of doomsday? What if I’m suddenly disabled and can’t work? What if my investments are losing value? What if the stock market goes down? Should I stay in the market or retreat to cash? Will my pension or Social Security be there when it is time?

If you’re still with me, you know that these are some legitimate concerns. The key—financially, spiritually, and otherwise—is to know the difference between fear and being afraid. Here it is: If you have a momma bear running toward you at 80 mph and you’re innocently tickling her cub under the chin, this is a really good time to be afraid. It is prudent to understand the danger and do what you reasonably can to mitigate it.  (Don’t tickle the bear next time!) The ‘fight or flight’ mechanism that is built into us is there for our good. Being afraid in the face of danger, especially if it prompts you to act, can be a very good thing.

Prevailing fear on the other hand sees shadows. It stresses about the unknowns and looks for problems outside ones’ own ability to solve. This kind of crippling fear is cautioned against in the Bible—Fear not! Let me be bold enough to say—we see too many people living with this kind of fear and it’s not helpful.

So, as a financial adviser, what approach do we take to fear?

· First we listen and ask probing questions. What is at the root of your concerns? What are you doing now and what would you do differently if this or that does end up happening? How can you prepare?

· We try to put the fear into perspective. Could there be an apocalyptic event that we have to live through? (Yes—even COVID and hurricanes remind us of our frailty.) If there is an apocalypse, can you be prepared enough anyway? Are you losing your joy preparing for something that may or may not come?

· We encourage people to respond to real areas of their lives where there are shortfalls, stresses, and things to be afraid of. (High debt, insufficient life insurance, underemployment, etc.) Getting some of the obvious stressors taken care of can often help us feel more prepared for the “unknown.”

· We seek to have a long-term relationship with our clients so that we can walk with them through the real and perceived threats they face.

Your greatest fear is how we make our living! It is our sincere privilege to help  you mitigate risk, take care of things that keep you up at night, and live with financial peace. Call us today.

We have included a helpful planning sheet in this issue of Faith Focus. This world of numbers and limits and deadlines and factors is the world we live in every day and we are very familiar with how the “important numbers” affect you!

You may understand how taxes work and how various levels of income can affect your situation. But many people we talk to don’t understand how increases in income can change their tax planning opportunities—for good or bad.

Opportunities that change, based on income level, include:

* Whether you can contribute to an IRA or Roth IRA or make deductible contributions to your IRA

* Whether your Medicare premiums will go up based on earnings (two years after the increased income)

* Which tax credits you are eligible for

Perhaps you will find yourself straddling tax brackets at the end of the year. Or maybe you realize there is a “tax game” that other people are aware of—and you’ve never learned the rules.  Maybe you’d just like someone else to review your tax situation and give you some recommendations.

Unfortunately, waiting until you file 2024 taxes in early 2025 may be too late to make “course corrections.” There is still time now to have a conversation and make some adjustments or do some longer-range planning.

We believe it is moral, legal, and wise to pay Uncle Sam what he is due. But we don’t believe in paying more than what he is due!

We desire to have a long-term planning relationship with our clients.

What can we do today that will improve your situation at tax time, next year, or 10 years in the future?

When we meet with clients, we often explain the difference between qualified (retirement) accounts and non-qualified (non-retirement) accounts. The IRS rules governing qualified vs non-qualified assets are very different. Even if you don’t understand or WANT to understand all of the rules(!), we can help you use the tax planning rules to your best advantage.

We also help people think about how they want their assets to pass to heirs upon their death. We don’t give legal advice and we don’t draft legal documents. But we do explain the general rules about how assets pass to heirs. We listen to your particular situation to see if there are unique concerns that need to be addressed—estranged children, blended families, family farm or other complex entities, special needs       concerns, etc. Estate planning is vital and ongoing and we want to help you understand your options.

We help our clients streamline their various accounts and assign purpose and goals to their money. Is this retirement account going to provide income in retirement?

Is this account for long-term growth and leaving to children? Is this account an emergency fund or a house fund or a college fund? Let us help you have a plan!

I (Kathi) have recently rediscovered podcasts and, in so doing, I’m finding some gems that you might enjoy. This list includes some podcasts but also some news resources, info on employing a Christian worldview with current events, and so on.

* The Pour Over  www.thepourover.org  A news site designed to summarize current news and point your attention back to Christ.

* Truth Changes Everything (Podcast) found on Spotify, Edifi, Apple Podcasts, YouTube, etc.  These are 45 min podcasts with thought-leaders on topics affecting Christian worldview. Winsome, engaging, thought-provoking.

* The Bible RECAP This daily “read through the Bible in a year” program can be found on Bible apps, podcast outlets, or as printed book.

We’ve found that most people either really enjoy managing money (budgeting, investing, planning, etc.) or they don’t. There may be people in the middle ground, but they are few! Ha!

Interestingly, the enjoyers seem to marry the non-enjoyers. And that’s ok. We all have interests, gifts, strengths, etc and the world would be a boring place if everyone operated the same way.

If you’re on the far side of really enjoying “the numbers” and how they work, you may benefit from some ‘deep dives’ into the why of investing. We have a lending library of books that address deeper topics of investing, especially from a Biblical perspective. Let us loan you a book or two! Some of Orrie’s favorite websites to “nerd out” on are Morningstar.com and Investopedia.com

If on the other hand, you’re on the other side (not enjoying numbers so much), you may like a softer approach. Check out www.wisebread.com for ways to “live large on a small budget.” This is a pretty gentle entry into personal finance topics and things like protecting your identity, home renovation on budget, etc.