Our Weekly Blog

There’s a lot of talk about the proposed US government budget with Republicans and the White House heralding the One Big, Beautiful Bill Act as a huge benefit for Americans. But there are also worries about our growing federal deficit. This bill, as approved by the House on May 22nd, is expected to add $2.8 trillion to our deficits over the next 10 years.1 That’s a lot of money on top of the government’s existing deficit spending.

Don’t invest too conservatively. Past performance cannot guarantee future results, but the value of the stock market tends to rise over time. Taking more risk offers possibility of higher returns over the long term. There will be market downturns, but in your early working years, you will have time to recover from market dips. Consider target date funds (aligned to your expected retirement year) or asset allocation funds (aligned with your risk tolerance) If you are not comfortable selecting investments.

Lisa: So how do I know if an advisor is truly comprehensive and right for me? Rick: Ask them what their process looks like. Do they offer advice beyond investments? Do they get to know your life and goals before offering solutions? Are they a fiduciary, meaning they’re legally obligated to act in your best interest? And how do they get paid? Transparency matters. And what I personally recommend is going with your gut. Assuming they check all the boxes as far as experience, being a fiduciary etc, ask yourself if you feel comfortable with them. If it doesn’t feel right, keep looking until it does. Also, don’t be afraid to ask a lot of questions. If you feel pressured or they don’t clarify things, that is a red flag.

Once you start carrying a balance over from month to month, card companies will charge you interest, often as high as 26-29% for cards with the most enticing perks. Soon it can become almost impossible to payoff the balance and the card companies can collect thousands of dollars in interest charges from you every year. This can be a financially dangerous path because it can snowball into a situation that is hard to get out of. A lot of credit card debt can financially cripple a young person who is just starting out.

A key question I often hear from clients is whether or not they will have enough $ to retire comfortably. This answer is different for each client – there is no “magic number.” So much depends on your lifestyle, health, family needs, where you live, travel plans and more. A general rule of thumb is 75% to 90% of current income in retirement, but this can vary widely.

My first rule for widows is: Do NOT make any major financial decisions in the first year your spouse passes away. Why? Because this is a highly emotional and stressful time and in my 35 years of helping folks like this, I can't think of too many times where doing so brought about a positive result.