Embracing Volatility

Last week, we talked about the importance of having a personal care plan in the event your physical or mental health takes a turn.  It's also vitally important to have a trust.  A trust is a legal document that allows you retain control of your assets both before and after your death.

Stacey shares the sad story of a client who put off setting up a trust.  Her health unexpectedly changed, and the next thing she knew, her relatives were in a courtroom getting control of her assets.  It's a cautionary tale for sure.

Michael and Stacey talk about the importance of a trust, especially if you have minor children.   And your trust does not have to be controlled by relative! You control who is in charge.

Finally, simply setting up the trust is not enough.  Many clients set up the trust, but never get around to moving their assets into it. And that can have disastrous consequences.  It's important to have a team of an attorney, trusted financial advisor, and more, to make sure everything is set up according to your wishes.

Stacey Andres and Michael Wallin have made the Life Arc Plan and Info Right process available to all listeners of our podcast.  To learn more, you can reach out to them at (855) 378-1806 or visit our website, https://artofwealthunbroken.com/

What happens when your health takes a turn?  Having a plan in place is one of the most important things you can do for your and your family's future.

Today, Michael and Stacey talk about why it's so important to do this, and how to get started.  Mike shares a story of a client that made the mistake of thinking she had a plan in place.  

These conversations are very difficult to have, but coming up with a personal care plan is of the utmost importance.  Our hosts share some sobering statistics to back this up.

Facilitate a family meeting, perhaps with the help of professionals like Michael and Stacey. Then start working on real solutions to questions about future living arrangements.

If you'd like help with your financial future, and want to talk to Michael, Stacey, and the team at Optivise, you can visit our website at https://www.artofwealthunbroken.com/

Or give them a call at 855-378-1806.  They'll get you your free Arc of Life report, tailored to your own individual circumstances.

Today’s show comes to us from an article published by Michael Kitces’ team titled, “Questions, Not Answers: Conversations For Advisors To Navigate Clients’ Anxiety Around Change” released on May 4, 2022.  Investors, particularly in turbulent times, can have narratives that will compound the negative impacts to their finances.

Often, an advisor's reaction is to tell the client that their plan is working, and not to worry.  But as we dig into the area of personal finance - that's often not helpful. The article advise to encourage a client to form new personal narratives, instead of addressing their stressors, can help them understand and implement new perspectives that make it easier for them to address challenging situations in different (and often more successful) ways.

There are steps that you, as an investor, can take right now.

1. Work with a financial professional that is more interested in listening that talking.
2. Be proactive in your financial plan.
3. Ask yourself narrative changing questions.  We can assist you this step.
4. Use resources, such as, Monte Carlo simulations or other technological tools that can run probability scenarios.
5. Expect the market to go through normal cycles.
6. Know the difference between diversification and allocation.
7. Measure and Monitor what matters.
8. Meet periodically with your financial professional to make changes when necessary.

If you'd like help with your financial future, and want to talk to Michael, Stacey, and the team at Optivise, you can visit our website at https://www.artofwealthunbroken.com/

Or give them a call at 855-378-1806.  They'll get you your free Arc of Life report, tailored to your own individual circumstances.
 

Last week, Michael Wallin and Stacey Andres spoke about investment vehicles for your second, or "mid range" bucket.  One such vehicle is known as a "Buffered ETF."  Today, they break down the why, the how, and the terms of these products.

Stacey explains the growth potential in Buffered ETF's, that simultaneously offer downside protection. As Michael adds, it's a way to diversify your portfolio away from traditional stocks and bonds. It's also a nice alternative to panicking and leaving the market during times of volatility!

We talk about how Buffered ETF's would have fared historically, and why it's best to invest in one through a broker.

To find out how Michael and Stacey can created a Buffered ETF strategy tailored to your needs, or to receive your free Arc of Life Report, or to talk to Michael, Stacey, and the team at Optivise Advisory Services, give them a call at (855) 378-1806, or visit our website, https://www.artofwealthunbroken.com/

Michael Wallin and Stacey Andres have talked in previous episodes about the three buckets of financial planning - short, medium, and long term.  Today we are focused on the medium term or "safe money" bucket.  We'll cover some safe growth vehicles for this safe money bucket.  

We'll tackle the pros and cons of

• Certificates of Deposit (CD's)
• Multi-Year Guaranteed Annuities (MYGA's)
• Buffered ETF's / Buffered Notes

In our next episode we'll take a deeper dive into these Buffered ETF vehicles.

To receive your free Arc of Life Report, or to talk to Michael, Stacey, and the team at Optivise Advisory Services, give them a call at (855) 378-1806, or visit our website, https://www.artofwealthunbroken.com/

The markets have had a rough first half of 2022, and our natural instinct is to run. But time and time again, we hear that we need to "stay the course."   Why is this so difficult? It's because we are fighting our own brain chemistry!

Behavioral finance takes a look at how our psychology affects how we invest. Key to this is loss aversion - we feel twice as much pain losing $20 as we do pleasure finding $20!  A bad experience can significantly impact a person, a corporation, even a country's ability to take risks going forward.   And the market changes we're experiencing this year are coming on the heels of the volatility we experienced in COVID!

Michael explains that there are three parts of the brain that activate this "loss aversion" phenomenon.  And they relate to fear, anxiety/prediction, and disgust/avoidance.  It's not our fault we want to pull out of the market - we're just wired that way!

Stacey and Mike close by talking about the importance of working with a financial advisor who understands behavioral finance, and the need to put a plan in place that considers market volatility ahead of time.

To receive your free Arc of Life Report, or to talk to Michael, Stacey, and the team at Optivise Advisory Services, give them a call at (855) 378-1806, or visit our website, https://www.artofwealthunbroken.com/

How do you select the right financial advisor?  Too often, investors focus on investment returns and lose sight of the bigger picture.   Does your advisor align with your personal values, risk tolerance, and investment philosophy?  What are their methodologies?  Have they successfully navigated their clients through economic storms before? The best advisors get to know their clients.  They don't just sell to them.

82% of Americans say their values play a role in how they manage their finances.  But 68% of advisors don't know this!

Using their proprietary Info Right system, Stacey Andres, Michael Wallin, and the team at Optivise Advisory Services evaluate 10 pillars of planning, and how they interact with each other: Investment, retirement income, tax, social security, education, healthcare, personal care, charitable, legal, and wealth transfer.

To receive your free Arc of Life Report, with no obligation, visit Michael and Stacey online at https://www.artofwealthunbroken.com or give them a call at 855 378 1806.

Having an expense plan is always important, but especially so during recessionary times.  Today, Michael and Jag go over the 3 Reasons to have a plan.

#1. Understanding what is essential and what is a luxury.  Said another way needs versus wants. These can be classified into discretionary vs non-discretionary expenses.

#2  An expense plan is needed is to understand the difference between inflationary and non-inflationary expenses.  This is captured also in our Life Arc Plan expense portal, which you can learn more about below.  People often panic over inflation, but it doesn't affect all expenses equally.  Your groceries and gas bills may go up, but your mortgage and electric generally stay the same.

#3 Know your future value expense budget.  Some advisors project a future budget based solely on uniform inflation.  But it might not be as hard as you think to meet a future budget when you realize not all expenses are at the same risk of inflation. So this may mean you can take less risk in your investments.  You won't be chasing the same returns,

Michael and Stacey can protect you and your family going forward.  They are making the Life Arc plan available to any of our podcast listeners.   To learn more or get in touch with Michael and Stacey, give them a call at (855) 378-1806 or visit them online at https://www.artofwealthunbroken.com/

"Begin with the end in mind." - Stephen Covey

This is good advice for creating your financial plan, according to Michael Wallin.  Mike and Jag talk today about financial plans.  They should start with defining short, medium, and long term goals.  Tragically, too many people either start planning too late in life, don't have a direction to go in - or both!

With the Life Arc plan, Michael and Stacey Andres really get to know their clients, through 10 key areas - investment, social security, retirement income, wealth transfer, tax, healthcare, personal care, education, charitable, and estate planning.  It's important to understand how these areas can interact with each other, so that a plan can be created that's both quantitative AND qualitative, depending on the investor.

Once the plan is created, then it can be adjusted as necessary.

Michael and Stacey can protect you and your family going forward.  They are making the Life Arc plan available to any of our podcast listeners.   To learn more or get in touch with Michael and Stacey, give them a call at (855) 378-1806 or visit them online at https://www.artofwealthunbroken.com/

Today, Michael Wallin and Jag talk about our national debt, and why it's important for you to understand how it could affect your bottom line.

Over the life of the United States, we've come to rely more on tax revenue from our citizens and corporations, as opposed to tariff revenues on imported goods. And the government spends a lot of money - on social security, Medicare, Medicaid, our military, and more.  And much like our personal budgets, when you've got more money going out than coming in, something needs to change.  Either you need to bring in more money, or spend less.   And we're not spending less, regardless of which political party is in the White House or controls Congress.

Today's National Debt is $30.5 Trillion.   That averages out to $91.622 for every baby that's being born as you read these notes and listen to this podcast.   And with raising interest rates, that's going to be even more challenging.  So you need to come up with a personal financial plan that protects you against an uncertain future.  The Info Right Process focuses on six key areas of concern: income, investment, taxation, health care (long term and personal), charitable donations, and estate planning.  

This is where Michael and Stacey can come in to protect you and your family going forward.  They are making the Life Arc plan available to any of our podcast listeners.   To learn more or get in touch with Michael and Stacey, give them a call at (855) 378-1806 or visit them online at https://www.artofwealthunbroken.com/