Steven L White

1) Open and fund a “Savings” or other preferred account – This will provide you with Liquidity, Accessibility, and Safety. It will help prevent the use of credit, and having to liquidate stocks or mutual funds which could be costly, especially if it’s your 401(k) or IRA.
2) Count to ten before making major financial decisions. Think about how making your decision today will affect or undermine decisions made in the future
3) Create an “operating budget” and review quarterly. Every successful business has a budget or multiple budgets to follow. A budget is not meant to be restrictive; it’s to give you a guide as to what your revenue is in relationship to expenses.
4) Question your strategy: Maybe consider reducing your retirement account contributions down to your employer match. Deferring income from a relatively low tax environment to an unknown possible higher tax environment could be a financial ambush.
5) Look for post-tax investment and financial strategies. This will help hedge possible higher income taxes in the future. Roth’s or participating Whole Life insurance may be suitable strategies for you.
6) Evaluate your advisors: Consider firing your financial advisor if he/she is telling you that you will retire in a lower tax bracket. This implies low wealth and less income.
7) Protect your income! Enroll in your group Long Term Disability program that you employer is offering. If you are self-employed consider purchasing an individual LTD policy that covers you in your “own occupation”.
8) Meet with your financial advisors 2 to 3 times a year.
9) Pay off any revolving debt and student loans BEFORE you put your money at risk in the markets.
10) Give back to the community by getting involved with a local mission or charity. This does not have anything to do with money but we all need to give back on a regular basis.

Financial Representative  The Guardian Life Insurance Company of America (Guardian) New York, NY
Steven L. White is a Registered Representative and Financial Advisor of Park Avenue Securities.
Securities Products and services offered through Park Avenue Securities LLC (PAS),   PAS is an indirect, wholly owned subsidiary of Guardian.  Wealth Strategies Group is not an affiliate or subsidiary
of PAS or Guardian.

PAS is a member FINRA SIPC

Steven L. White Jr.,

 Wealth Strategies Group

“My money only needs to keep up with inflation”

 

False,  your money will need to catch up with much more than inflation.

Other wealth eroding factors to protect against are income taxes, capital gains taxes, estate taxes,  the real cost of living, wear and tear, planned Obsolescence, and unexpected life events. We are living much longer than we used to and the money you save and invest will need to go further. One might think that in order to realize greater amounts of money, greater risks must be taken. Not exactly. Current market conditions prove that taking greater risks does not necessarily mean greater returns. It amazes me to hear from friends, family and associates that their retired relatives well into their 60’s and 70’s take great risks with their money by remaining in risky asset allocation models that lose significant amounts of principal in today’s volatile market swings. These people may not have enough of a time horizon to recover.

 

Lesson learned-Be prudent in “diversifying” your diversification. Many of our clients are turning to increased savings and money market accounts, ROTHs, participating Whole Life insurance and adding annuities to their overall strategy and tactics. They have learned that a single strategy of putting it “all in” to 401(k) plans, IRAs and other retirement plans can be Risky and not always efficient. If you are a high income earner and do not qualify for a ROTH due to income limits you may find that a “participating” Whole Life insurance policy is a viable option. The bottom line is that Savings in aggregate need to out-run all cost-of-living pressures, which include far more than just inflation.

 

 Steven L. White, Jr.

 

Wealth Strategies Group

Neither Guardian, nor its subsidiaries, agents or employees provide tax or legal advice. You should consult your tax or legal advisor regarding your individual situation.”