Personal finance refers to how you make money, save money, build wealth, and protect your assets. It’s an essential part of life as it impacts how you live today and what your life will look like in the future. If you’d like to take control of your finances to meet various financial goals, rest assured many resources can help. Below are some ideas to help you find financial help.

Personal Finance Books

Countless informative books make learning about personal finance easier and more enjoyable. Here are several books you may want to consider to help you get started learning about personal finance:

• Rich Dad Poor Dad by Robert T. Kiyosak
• The Millionaire Next Door by Thomas Stanley and William Danko
• Your Money or Your Life by Vicki Robin and Joe Dominguez
• The Millionaire Fast Lane by MJ DeMarco
• Think and Grow Rich by Napoleon Hill

Personal Finance Blogs

In addition to books, you may want to follow and read personal finance blogs you find online. While financial professionals or industry experts write some, many come from everyday people who want to share their experiences and knowledge about money. Here’s a list of personal financial blogs to put on your radar:

• Get Rich Slowly
• Mr. Money Mustache
• Marriage, Kids and Money
• Good Financial Cents

Trusted Family Members Or Close Friends

Chances are, you know people with a track record of financial success. They make intelligent financial decisions and have set themselves up for a financially secure future. These people may be parents, relatives, colleagues, or friends. Don’t be afraid to ask them what has worked for their finances. Many people are open about their successes and willing to share their experiences to help others.

Find A Financial Professional

A financial professional can work with you to design a solid financial plan that suits your unique needs. However, before you choose one, consider the following:

• Why you’re seeking professional financial services: Maybe you need help with a budget. Or perhaps your priorities are improving your investment’s return, lowering your tax burden, or creating an estate plan. Choose a financial professional with the right expertise for your particular goals and situation.
• Your budget: Think about how much you can afford to pay a professional. Robo advisors, for example, charge a fee that’s a percentage of your account balance. Online financial planning professionals and services usually charge a flat subscription fee or a percentage of the assets they manage. Traditional financial professionals charge a percentage of the assets they manage, an hourly rate, or a retainer.

Consult Your Financial Professional

In conclusion, a financial professional can be an invaluable resource to help you review your financial situation and develop a plan to help you work toward pursuing your unique goals. Contact them today to get started.

SWG 2306340-0822e The sources used to prepare this material are believed to be true, accurate and reliable, but are not guaranteed. This information is provided as general information and is not intended to be specific financial or tax guidance. When you access a link you are leaving our website and assume total responsibility for your use of the website you are linking to. We make no representation as to the completeness or accuracy of information provided at this website. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this website.

In addition, M3 Wealth specializes in providing strategies and guidance for those who are seeking a better lifestyle in retirement. If you have retirement savings of five million dollars or $50,000, we can ensure it works as hard. As a result, we offer our experience and knowledge to help you design a custom strategy for financial independence. Contact us today to schedule an introductory meeting!

When you’re ready to buy a house, it’s essential to consider the upfront costs and ongoing expenses outside of taxes, utilities, and home maintenance.

It’s critical to be prepared and save for these expenses since you will be responsible for paying them during the home-buying process. Here are some of the actual costs of buying a home:

Earnest Money

Earnest money is paid to confirm a home purchase contract. Typically 1-3% of the purchase price secures the buyer’s right and protects them from the seller backing out of the agreement or selling it to another buyer. Earnest money is later used as part of the down payment.

Down Payment

A down payment is generally required but can vary depending on your credit score and the type of loan:

• Conventional loans can allow down payments as low as 3% of the purchase price.
• FHA loans, which the Federal Housing Administration backs, can have down payments as low as 3.5% of the purchase price.
• VA loans, which the U.S. Department of Veterans Affairs guarantees, allow service members and veterans to get home loans with 0% down.
• USDA loans from the U.S. Department of Agriculture let buyers in rural areas pay as little as 0% down.

Source: How Much Money Do I Need to Put Down On a Mortgage? Investopedia.

Closing Costs

Closing costs are lender and third-party fees. For example, realtor commissions, home inspections, appraisal fees, title search, and transfer fees, etc. You pay for these when you buy a home. These costs are generally 2% to 5% of the purchase price.

Private Mortgage Insurance (PMI)

If you make a down payment of less than 20% on a conventional loan, you’ll have to pay PMI. Wwhich can be up to 2% annually. These premiums protect the mortgage lender if you default on the loan. Once you pay down 20% of the loan amount, you may be able to cancel your PMI, but not always depending on your loan. You must understand how PMI may impact your situation.

Escrow Account

Your mortgage lender sets up an account to pay certain property-related expenses such as property tax. The money in the escrow account is a percentage from your monthly mortgage used to help cover high costs later versus having to pay a hefty fee at once.

Homeowners Association Fees (HOA)

If you’re buying a home in a homeowners association, you may have a monthly HOA fee on top of your mortgage payment. HOA fees pay for landscaping or painting, snow removal, lawn care, or big-ticket improvements such as roof repair or parking lot resurfacing.

SWG 2306340-0822b The sources used to prepare this material are believed to be true, accurate, and reliable, but are not guaranteed. This information is provided as general information and is not intended to be specific financial or tax guidance. When you access a link you are leaving our website and assume total responsibility for your use of the website you are linking to. We make no representation as to the completeness or accuracy of information provided at this website. Nor is the company liable for any direct or indirect technical or system issues or consequences arising from your access to or your use of third-party technologies, websites, information, and programs made available through this website.

In addition, M3 Wealth specializes in providing strategies and guidance for those who are seeking a better lifestyle in retirement. If you have retirement savings of five million dollars or $50,000, we can ensure it works as hard. As a result, we offer our experience and knowledge to help you design a custom strategy for financial independence. Contact us today to schedule an introductory meeting!

Suppose you already know your retirement savings options; congratulations! You’re on your way to a more financially secure retirement. You must continue to save and determine other retirement savings vehicle strategies that may be appropriate for your situation.

This article provides relevant information on five different retirement savings plans to help you understand which may be suitable and additional options to help you save for retirement.

1. Defined Contribution Plans

These allow an executive to delay part of their income until the future, reducing their taxable income now. Deferred comp plans are limited to executives and not all employees. Deferred comp plans also defer taxes on compensation until the executive accesses it later. If the executive leaves the company, the deferred comp plan can transfer into another tax-advantaged retirement savings account. The deferred comp agreement between the executive and their employer generally outlines:

• The amount of income to be deferred may include a portion of salary, bonuses, or other eligible cash payments.
• The deferral period schedule when the executive will take the income and the timeline until it depletes.
• The initial investment including the deferred income and any growth earned. The deferred payment is not placed into an investment strategy but designated for accounting purposes into a portion of the company.

2. Roth IRAs

Roth IRAs fund with after-tax contributions, so you pay taxes upfront. When you take distributions, both the contribution and accumulation are tax-free. Contributions are withdrawn tax and penalty-free for emergencies, home purchases, and more. However, drawing the account’s accumulation before age 59 1/2 will result in a 10% IRS penalty.

Anyone can open a Roth IRA at any age, as long as they have income. But income limits apply for who is eligible to contribute generally vary yearly. Reach out to your financial and tax professionals to determine if you are eligible to contribute and the contribution limits for this year.

3. Traditional IRAs

These fund with pre-tax contributions, which grow tax-deferred. IRA contributions and accumulation are taxed at the owner’s tax rate and are penalty-free if taken after age 59 1/2 when taken as distributions. If distributions occur before age 59 1/2, they tax as ordinary income, and an early distribution penalty of 10% may apply Here are a few more things to know about Traditional IRAs:

• Traditional IRAs have no income limits to contribute
• If you’re eligible for the tax deduction on your contributions, you can claim it whether or not you itemize deductions on your tax return.
• If you participate in your employer’s retirement savings plan, you may not be eligible to contribute to a traditional IRA.

4. A 401(K)

This is a tax-deferred retirement savings plan offered by employers that fund with pre-tax contributions, which grow tax-free. Distributions are taxed at the owner’s tax rate and are penalty-free unless the owner is under age 59 1/2 and will also take an early distribution penalty of 10%.

There is no income limit to participate in a 401(k), but there is a yearly contribution limit. Your financial professional can help you understand your contribution limits and if your 401(k) strategies are appropriate for your risk tolerance, timeline, and goals.

5. Fixed-Indexed Annuities

FIAs are contracts purchased directly from an insurance company or a financial institution. Annuities are bought with a one-time or series of payments over time. A feature of annuities is that they provide income for life and protect against market risk.

All annuities offer tax efficiency while they grow; they lock in gains based on market performance. However, the annuity protects the accumulation and initial investment when the market declines. Another benefit of annuities is that they provide a guaranteed death benefit of the initial investment and can include survivor benefits as a rider for an additional cost.

In Addition

An annuity is intended to be a long-term, tax-deferred retirement vehicle. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59½, may be subject to a 10% federal tax penalty. If the annuity will fund an IRA or other tax qualified plan, the tax deferral feature offers no additional value. Qualified distributions from a Roth IRA are generally excluded from gross income, but taxes and penalties may apply to non-qualified distributions. Consult a tax advisor for specific information.

Now that you know five common types of retirement savings options, a financial professional can help you determine which are appropriate for your situation and align with your retirement savings goals.

In Closing

SWG 2306340-0822a The sources used to prepare this material are believed to be true, accurate and reliable, but are not guaranteed. This information is provided as general information and is not intended to be specific financial or tax guidance. When you access a link you are leaving our website and assume total responsibility for your use of the website you are linking to. We make no representation as to the completeness or accuracy of information provided at this website. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this website.

In addition, M3 Wealth specializes in providing strategies and guidance for those who are seeking a better lifestyle in retirement. If you have retirement savings of five million dollars or $50,000, we can ensure it works as hard. As a result, we offer our experience and knowledge to help you design a custom strategy for financial independence. Contact us today to schedule an introductory meeting!

As you grow your wealth, you may find the desire to give back. That’s where charitable giving comes in. Charitable giving can allow you to support causes and organizations you believe in while reducing your income tax, capital gains, and estate taxes. Here are several ways to incorporate charitable giving into your overall financial plan:

Identify Your Giving Goals

There are so many well-deserving causes out there. Take the time to figure out which ones are most important to you and your family. You might choose to support the environment and refugees or medical research, social justice, and the arts. Think about what motivates you and how donating to specific causes reflects your values.

Consider Charitable Tax Deductions

You can deduct charitable gifts on your tax return whether you make a cash gift or donate goods or services. To do so, however, you’ll need to choose a 501c3 tax-exempt organization. Please consult a tax advisor to determine the limits to how much you can deduct and whether it makes sense for you to itemize and lock in the deduction.

Gift Using Life Insurance

Use life insurance to gift by naming a charity as the beneficiary. Often, the strategies you use to transfer wealth, which organizations you want to donate to, and the length of time you want your assets to last is simplified by using life insurance.

Explore Qualified Charitable Distributions (QDCs)

If you’re 70 1/2 years of age or older, you can use a qualified charitable distribution or QCD to donate directly from your IRA to the charity of your choice. Even though the gift amount won’t qualify for a charitable deduction, it won’t count as taxable income and will allow you to simultaneously reduce your taxable income and give back.

Use Donor-Advised Funds (DAFs)

With DAFs, you can immediately donate cash or other assets to a charitable investment account and claim a tax deduction. Since a DAF will grow tax-free, you may choose the fund distributions over time to organizations and causes that mean the most to you. If you time your contributions to coincide with high-income years, you’ll reap the benefits of a larger deduction.

Bunch Your Donations

You may want to bunch your donations in one year instead of skipping one or several years to maximize potential tax deductions. This option is worth considering if your total itemized deductions for a single year fall below the standard deduction. Your itemized deductions may exceed the standard deduction and lower your overall tax burden.

SWG2306340-0722b The sources used to prepare this material are believed to be true, accurate and reliable, but are not guaranteed. This information is provided as general information and is not intended to be specific financial or tax guidance. When you access a link you are leaving our website and assume total responsibility for your use of the website you are linking to. We make no representation as to the completeness or accuracy of information provided at this website. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this website.

In addition, M3 Wealth specializes in providing strategies and guidance for those who are seeking a better lifestyle in retirement. If you have retirement savings of five million dollars or $50,000, we can ensure it works as hard. As a result, we offer our experience and knowledge to help you design a custom strategy for financial independence. Contact us today to schedule an introductory meeting!

While there’s no obligation to pay for your child’s or grandchild’s college education. Helping them fund some or all of it can allow them to avoid overwhelming amounts of student loan debt. It can also help them to begin adulthood on the right foot.

Here are some tips if you’re interested in incorporating college planning into your financial plan:

1. Start Early.

Ideally, you’d start saving for your child’s college when they’re born. Before you start a college fund for a baby, sit down and figure out how much money you’ll need to save. Historical data shows that the cost of a college education usually triples over the 17 to 18-year period from birth to college enrollment. Therefore, you’ll want to do some research and find out the average cost of an in-state college and out-of-state college the year your baby is born. Then, take these numbers and multiply them by 3. The figures you come up with will give you a rough estimate of how much college may cost when your child is ready to attend. Remember, you don’t have to cover the entire cost of their education. Even paying for a quarter of it can do wonders for their future.

2. Open A 529 College Savings Account.

529 plans are state-sponsored, tax-advantaged savings accounts designed to help families save for educational expenses. There are two types of 529 plans: prepaid tuition plans, which allow you to buy credit for future tuition at today’s prices, and education savings plans which involve investing money to grow over time. The 529 contributions are invested and grow tax-free until they are needed to cover the beneficiary’s educational expenses.

3. Utilize UGMAs And UTMAs.

The UGMA (Uniform Gifts to Minors Act) and UTMA (Uniform Transfers to Minors Act) are custodial accounts created to hold and protect money for minors until they turn the legal age in their state. While they allow stock, bond, and mutual fund investments, they don’t permit higher-risk investments like stocks. Since there are no limits, you can invest as much money as you’d like with these accounts, and be allocated toward anything, not just college expenses. Remember that if you go this route, however, your earnings will be taxed once they exceed $2,100.

4. Open Brokerage Accounts Specifically For College Funding.

If you opt for a brokerage account, you’ll get to invest in anything, including stocks, mutual funds, bonds, currency, or futures, and be able to deposit and withdraw money at any time without penalty. However, the most notable disadvantage to brokerage accounts is that they don’t come with any tax advantages. You’ll be on the hook for paying taxes on any returns you earn. You may also have to make a minimum investment and pay management fees.

5. Use Life Insurance.

If you’re a parent or grandparent, life insurance can be used for funding part or all allowable education expenses without tax consequences, assuming interest applies to the cash value. If the child doesn’t use it for education funding, you give them the gift of life insurance for themselves or their beneficiaries.

6. Invest In Your Child’s Talents.

Whether your child plays sports, dances, or participates in the band or orchestra, investing in these extra-curricular activities can open the doors to financial aid while enriching their life. There are many scholarships, grants, and other opportunities for children with unique talents.

Consult Your Financial Professional

A financial professional can help you save for your child’s college through the strategies that make sense for your unique situation.  Contact us today to get started.

SWG2306340-0722c The sources used to prepare this material are believed to be true, accurate and reliable, but are not guaranteed. This information is provided as general information and is not intended to be specific financial or tax guidance. When you access a link you are leaving our website and assume total responsibility for your use of the website you are linking to. We make no representation as to the completeness or accuracy of information provided at this website. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this website.

In addition, M3 Wealth specializes in providing strategies and guidance for those who are seeking a better lifestyle in retirement. If you have retirement savings of five million dollars or $50,000, we can ensure it works as hard. As a result, we offer our experience and knowledge to help you design a custom strategy for financial independence. Contact us today to schedule an introductory meeting!

If you love to travel and immerse yourself in new cultures and experiences, there’s a good chance you’re looking forward to traveling in retirement.

Once you’re out of the workforce, you’ll have more time to visit the places and people you’ve always wanted to see. You can reach your goals by budgeting for travel expenses in your financial plan. Planning for travel helps ensure you have enough financial resources for other costs, can enjoy a quality of life at home, and pay for travel expenses. Here are several tips to help you budget for travel during your retirement years.

Lower Your Retirement Expenses

Even if retirement is years away, it’s a good idea to consider what you might pay for housing, food, health insurance, and other expenses after you stop working. Once you know your monthly expenses, look for ways to lower or cut some of them to increase the amount of money you spend on travel.

Create A Travel Bucket List

Maybe you’d like to travel to a few different states yearly. Or perhaps you hope to explore a new country every few years. Design a travel itinerary for your retirement years with the understanding that it can change due to health concerns, financial emergencies, and other factors.

Research Travel Costs

After you decide where you want to travel to during retirement, create an estimated budget for each trip. You may have to research online or ask a travel professional to understand what specific trips will cost. Don’t forget to include daily expenses such as rides to and from the airport and tickets to museums. You may want to work with a travel professional to make this step easier.

Add Cost Buffers

Once you know how much your dream trips may cost, build a buffer into each trip to account for unexpected expenses. For example, you may budget for a cruise to Europe with everything in one price but decide to enjoy some excursions at the last minute. Wiggle room in your travel budget can be beneficial in situations like this.

Maximize Your Travel Dollars

Since retirement can allow for time and flexibility, you can lower the cost of your trips. To do so, consider traveling during off-seasons or watch for online deals to score the best deals. Another option is to combine trips to save on airfare or visit family and friends to reduce the amount you spend on accommodations. Get creative and make the most out of your travel budget.

SWG 2306340-0722a The sources used to prepare this material are believed to be true, accurate and reliable, but are not guaranteed. This information is provided as general information and is not intended to be specific financial or tax guidance. When you access a link you are leaving our website and assume total responsibility for your use of the website you are linking to. We make no representation as to the completeness or accuracy of information provided at this website. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this website.

In addition, M3 Wealth specializes in providing strategies and guidance for those who are seeking a better lifestyle in retirement. If you have retirement savings of five million dollars or $50,000, we can ensure it works as hard. As a result, we offer our experience and knowledge to help you design a custom strategy for financial independence. Contact us today to schedule an introductory meeting!

According to one study, the average American has $90,460 in debt, which includes all types of consumer debt, such as credit cards, personal loans, and car loans.

Whether you owe a few thousand or hundreds of thousands of dollars, paying off debt can lead to less stress and more opportunities. Use these do’s and don’ts to help reduce your debt burden and enjoy a higher quality of life:

Do Get Organized

First and foremost, take inventory of your debts, so you have a clear picture of how much you owe. Jot down all of your debt accounts, their total balances, and monthly payment requirements. Don’t forget to include small bills, such as overdue utility or cell phone bills, as these can also hinder your finances if you leave them unpaid. Knowing your debts is a great tool for reducing debt.

Don’t Take On More Debt

While this may seem obvious, avoiding any new debt is essential. You might have to forgo or delay certain purchases, like a new car or furniture. The more debt you take on, the more difficult and time-consuming it will be to become debt free.

Do Create A Debt Repayment Plan

Fortunately, there are several ways you can pay off debt. With the debt snowball method, you begin with your reducing your smallest debts and move on to more significant debts to build momentum and stay motivated. The debt avalanche is when you focus on debts with the highest interest rates first to save the most on interest. You may also want to explore other options like debt consolidation and credit counseling.

Don’t Forget About An Emergency Fund

While throwing all your extra money toward debt may be tempting, an emergency fund is essential. Before you pay off any debt, ensure you have three to six months’ worth of expenses. One emergency expense can force you to take on more debt and derail your repayment progress. An emergency fund may also give you some peace of mind.

Do Put Money Windfalls Toward Debt

A money windfall is a sudden, unexpected influx of money. If you get one from a bonus, inheritance, or gift, use it to pay down debt. You can save a portion of it for fun, like a dinner or a weekend getaway.

A Financial Professional Can Help

A financial professional can help you develop a solid game plan for reducing debt so you can improve your finances and increase your financial security. Contact us today to get started.

SWG2306340-0722d The sources used to prepare this material are believed to be true, accurate and reliable, but are not guaranteed. This information is provided as general information and is not intended to be specific financial or tax guidance. When you access a link you are leaving our website and assume total responsibility for your use of the website you are linking to. We make no representation as to the completeness or accuracy of information provided at this website. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this website.

In addition, M3 Wealth specializes in providing strategies and guidance for those who are seeking a better lifestyle in retirement. If you have retirement savings of five million dollars or $50,000, we can ensure it works as hard. As a result, we offer our experience and knowledge to help you design a custom strategy for financial independence. Contact us today to schedule an introductory meeting!

In simple terms, inflation is the rate at which the cost of goods and services rises. Due to inflation, it costs more money to buy groceries, gas, or anything else than it did in the past. Inflation can also affect your retirement savings as stocks, and other investments don’t automatically adjust for it. Rising inflation means your investments will have to work harder to keep pace. The extent to which inflation will impact your 401(k) will depend on several factors, like your investing strategy and how close you are to retirement.

What Is The Impact Of Inflation On A 401(K)?

Unfortunately, you can’t stop inflation as it’s out of our control. But you can be mindful of it and implement certain strategies to help lessen the burden of inflation on your 401(k). Here are some ways to help lessen the impact of inflation on your 401(k):

1. Maintain Your Contributions.

When your paycheck doesn’t go as far as it used to, it can be tempting to reduce your 401(k) contributions. If possible, maintain them to ensure you get the full match if your company offers it. You might even want to increase your contributions so that more money goes into your account. In 2022, you can contribute up to $20,500 or $27,000 if you’re 50 or older.

2. Diversify. Diversification Means Spreading Your Money Across Different Types Of Investments To Reduce Risk.

During periods of inflation, it’s a good idea to diversify your portfolio with a mix of strategies that can help weather volatility and inflation.

3. Pay Attention To Fees.

While minimizing investment fees is important, it’s essential when inflation has the potential to erode your 401(k) returns. The less you pay in fees, the more of your returns you’ll get to keep in the long run. Speak to your financial professional about your fees and what you can do to lower them. Also, consider less expensive strategies that are appropriate for your situation.

4. Be Flexible.

If you’re already retired, you might have to make some lifestyle changes to cope with the effect of inflation on your 401(k). Maybe you can move to an area with lower real estate taxes. Or perhaps you can postpone some of your trips or drive less to save on gas. Another option is to pick a side hustle or part-time job to add a cushion to your retirement savings.

Consult Your Financial Professional

A financial professional understands how inflation impacts 401(k) accounts. If you’re unsure what to do with your retirement savings, don’t hesitate to reach out for advice. Contact us today to get started.

SWG2306340-0722e The sources used to prepare this material are believed to be true, accurate and reliable, but are not guaranteed. This information is provided as general information and is not intended to be specific financial or tax guidance. When you access a link you are leaving our website and assume total responsibility for your use of the website you are linking to. We make no representation as to the completeness or accuracy of information provided at this website. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this website.

In addition, M3 Wealth specializes in providing strategies and guidance for those who are seeking a better lifestyle in retirement. If you have retirement savings of five million dollars or $50,000, we can ensure it works as hard. As a result, we offer our experience and knowledge to help you design a custom strategy for financial independence. Contact us today to schedule an introductory meeting!

The stock market can be volatile and will always go up and down. If your emotions run high during a volatile market, you’re not alone. The good news is you can take steps to help keep your feelings of fear and anxiety in check and avoid poor investment decisions based on emotions. Here’s a closer look at five ways to keep your emotions under control during periods of stock market volatility:

1. Focus On Your Goals

The foundation of your investment strategy should be based on your unique situation and portfolio’s goals. While some are short-term, others are long-term. Take a step back, think about your goals, and then determine if the current volatile market conditions require you to change your portfolio to meet them. You may find that staying the course and riding out the storm is suitable for now.

2. Don’t Obsess Over Your Portfolio’s Performance

While it may be tempting to log in to your account every hour, on the hour, to check your portfolio’s performance, doing so can do more harm than good. If you check it too often, you may make decisions during downturns that you later regret. Do your best to limit the frequency you check your portfolio since it benefits your emotional and financial wellbeing.

3. Maintain An Emergency Fund

When in a volatile market, an emergency fund can help provide peace of mind. Be sure to have at least six months’ worth of living expenses in an account you can access at any time. If you don’t have easy access to cash, you may be more likely to make decisions based on emotions and fear instead of facts.

4. Keep The (Stock Market) Faith

Financial advisory professional Nick Murray once said, “Investing is the age-old, never-ending emotional battle between fear of the future and faith in the future.” History has shown that the markets bounce back after dips, wars, recessions, and depressions. Therefore, calm down and remember that a market correction is temporary.

5. Talk To A Financial Professional During A Volatile Market

A financial professional understands how to manage the lows and highs of a volatile market. If you’re unsure what to do during a volatile market, reach out to a financial professional for advice to help you control your emotions and avoid rash decisions.

SWG2241771-0622b The sources used to prepare this material are believed to be true, accurate and reliable, but are not guaranteed. This information is provided as general information and is not intended to be specific financial or tax guidance. When you access a link you are leaving our website and assume total responsibility for your use of the website you are linking to. We make no representation as to the completeness or accuracy of information provided at this website. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this website.

In addition, M3 Wealth specializes in providing strategies and guidance for those who are seeking a better lifestyle in retirement. If you have retirement savings of five million dollars or $50,000, we can ensure it works as hard. As a result, we offer our experience and knowledge to help you design a custom strategy for financial independence. Contact us today to schedule an introductory meeting!

The old saying, “Don’t put all your eggs in one basket,” applies to many areas of life, including investing. If you put all your money into a single investment, you may take on more risk than you would if you had a diversified portfolio.

A diversified portfolio is a collection of different strategies from various industries, countries, or risk ratings. The reason for having a diversified portfolio is that if specific strategies decline, others offset the decline and accumulate in value. Diversification is essential in a bear market when stock prices are falling by 20% or more since maintaining a diverse portfolio can make a bear market much more tolerable to some investors. Here are some strategies that may help diversify a portfolio during a bear market:

Bonds

Ideally, you may want to consider a wide range of Bonds such as corporate, municipals, Treasuries, and even foreign issues since bonds may move reverse to stocks. Also, be aware of short-term to mid-term maturity dates at specific times aligned with your financial plan to provide you with income or money to reinvest.

Stocks

When it comes to long-term investing, it’s wise to have a diversified portfolio among various domestic stocks. Including large and small and rapidly growing and dividend-paying stocks.

REITs

Don’t forget to add real estate investment trusts (REITs) to your diversified portfolio. They consist of real estate assets that typically produce income at different times.

Annuities

An annuity is a contract with an insurance company to provide an income stream during retirement. It is for a specified period or the remainder of the annuitant’s life, regardless of market performance. Annuities help address the risk of outliving retirement savings and are purchased with monthly premiums or a lump-sum payment.

How Can You Weather A Bear Market?

In addition to diversifying your portfolio, consider these ideas when the stock market drops and leaves you feeling anxious:

Keep Your Goals In Check

You should design your portfolio in a way that will allow you to meet your short and long-term goals. Whether you’re saving for a home renovation, retirement, or college tuition years down the road, your portfolio strategies should reflect your goals. In a bear market, consider your goals and don’t make any changes if you’re still on track to achieve them. Sometimes, your best course of action is to stay the course and ride out the storm.

Realize Downturns Don’t Last

Time after time, history shows us that a bear market is an inevitable part of investing, as is market recovery. While past results don’t guarantee future results, remembering that downturns are only temporary may be just what you need. This can help avoid making rash decisions based on panic and fear.

SWG2241771-0622e The sources used to prepare this material are believed to be true, accurate and reliable, but are not guaranteed. This information is provided as general information and is not intended to be specific financial or tax guidance. When you access a link you are leaving our website and assume total responsibility for your use of the website you are linking to. We make no representation as to the completeness or accuracy of information provided at this website. Nor is the company liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, websites, information and programs made available through this website.

An annuity is intended to be a long-term, tax-deferred retirement vehicle. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59½, may be subject to a 10% federal tax penalty. If the annuity will fund an IRA or other tax-qualified plan, the tax deferral feature offers no additional value. Qualified distributions from a Roth IRA are generally excluded from gross income, but taxes and penalties may apply to non-qualified distributions. Consult a tax advisor for specific information.

In Conclusion

In addition, M3 Wealth specializes in providing strategies and guidance for those who are seeking a better lifestyle in retirement. If you have retirement savings of five million dollars or $50,000, we can ensure it works as hard. As a result, we offer our experience and knowledge to help you design a custom strategy for financial independence. Contact us today to schedule an introductory meeting!