Welcome
to the InvestWell Family!
Welcome
to the InvestWell Family!
Are you ready to take a look at your financial and retirement future? If so, you are at the right place. Financial Advisor Sue Waters has the experience and know-how to help individuals, families and businesses assess their current financial situation, identify their goals and prepare a plan to meet those goals.
Ready to have a conversation? Let's get started!
Financial News
Achieving financial independence is a goal that almost everyone has. It brings you the personal freedom to do what you want. For most people, however, debt is a significant roadblock. In fact, the average adult has around $90,460 in debt.1 This includes all types of consumer debt such as credit cards, personal loans, student loans, mortgages and auto loans. The good news is, there are strategies to pay down debt and work toward financial independence. How can you do this? Here are five actionable ways to start working towards more financial freedom this year. Way #1: Make a Budget and Stick to It If you want to be certain that your bills will be paid and savings goals are on track, then you need to set a monthly budget and do your best to stick to it. If you’re used to spending and saving as you please, sticking to a strict budget will feel hard at first. But over time, consistency in your spending habits will make following a budget easy and natural. Holding yourself accountable can help deter impulse buys, splurges and make your savings goals a bigger priority. Way #2: Pay off Your Credit Cards in Full Credit cards have high-interest rates that can grow your debt every month they aren’t paid off. If you’re able, pay off your credit card balance in full each month. Additionally, pay them on time to help you build good credit. If possible, it’s best to treat your credit card like a debit card, meaning you don’t spend more than you have. Once you have high-interest debt like this paid down, you can focus on low-interest debts like mortgages, auto loans and student debt. Way #3: Opt for Automatic Savings One of the most effective ways to save more money is to automate the process. Determine how much you’re able to contribute to your savings account each month and set up an automatic transfer with your bank. Soon, you’ll forget this is even happening. If your company offers a retirement savings plan, you may have the option to automatically defer funds from your paycheck to the account. Again, this is something that will happen without action from you, making it an easy and convenient way to build retirement savings. Way #4: Look For Opportunities to Increase Your Income Increasing your income is easier said than done, but it’s not impossible. If you’ve been at your job for a while and taken on added responsibilities, now may be an opportune time to speak to your boss about a pay adjustment. Or, searching for opportunities elsewhere could result in a bump in salary. If you have a hobby you’re passionate about, look for opportunities to make some money with it. Put your art up for sale online, offer classes (cooking, dancing, gardening, etc.) through your local rec center or find odd jobs you can do on the weekend. If you do find yourself able to increase your income, be sure to revisit your budget and determine how that additional money should be used. If it’s being spent frivolously, it’s not helping you work toward greater independence. Way #5: Begin Building Your Portfolio Once you have control over your debt, you’ll want to focus on building passive income - which can be done through a retirement plan or investments. Start off simple by contributing to a retirement account. Even small contributions now can grow significantly toward retirement through the power of compound interest. If you’re looking to expand, consider working with an investment advisor or other financial professional. As you involve yourself in investments further, you may find other opportunities to invest as well, such as real estate, collectibles, or other alternative investment classes. Achieving financial independence isn’t something that happens overnight. If you plan and save, however, it really can pay off for you in the long run. Not only does it help you to build savings, but it starts strong habits for the future. If you're unsure where to start, an experienced financial professional can help address your concerns and develop tailored strategies going forward. https://www.cnbc.com/select/average-american-debt-by-age/ This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
Do you know that your life insurance needs vary as your life changes? Most people understand that having life insurance is part of a responsible financial plan, but they are not aware that their needs keep changing. If you have found a plan that meets your needs and gives you peace of mind, it is important to reevaluate your life insurance needs as they fluctuate during different life stages. Consider the following five different life stages and how they can impact your life insurance needs. 1. Marriage Getting married is a positive and exciting life event for any couple, but amidst all the party planning most couples do not stop to think how marriage could affect their life insurance needs. Getting married means that you are now working as one unit and your financial obligation now becomes a joint effort. Getting married does not directly affect your life insurance rates, but now that you have a spouse you can choose to purchase a policy together. Having a joint policy means that if one of you passes on, the surviving spouse is financially stable and they can maintain their current living standard. The surviving spouse is also in a position to use the death benefits to supplement retirement or a child’s education down the road. 2. Becoming a Parent Becoming a parent is an equally amazing and terrifying experience. One moment you are an independent adult and the next you have a child who entirely depends on you. It is vital for you and your spouse to review your life insurance policy because it is not just the two of you, but you have at least one financial dependent. It is time to think about how your family would cope financially if something happened to either you or your spouse and you couldn’t work anymore. When you have a kid, there are other factors that are important to consider such as the fact that kids can be expensive to raise. Also, child-rearing expenses, other than the basic, tend to rise with age. You should also keep in mind that college education tends to be expensive. As a parent, you should ask yourself whether your partner can handle these child-related expenses if you are suddenly not there. 3. Mortgage Protection Your family home might be your most significant asset but also one of the most substantial financial responsibilities. For most families, mortgage repayments constitute their largest regular expense, and it is for this reason most people take life insurance policies. Life insurance can be an essential lifeline for the family especially when the primary earner in the family passes away. 4. Running a Business If you are self-employed and you run your own business, the chances are that you have made a substantial investment in it. If you have made an investment in the recent past such as purchasing a new building, it could change the value of your business. If this happens, the insurance limits are raised so that they can cover business debts that your family might be liable for if you passed on. However, if you didn’t have life insurance they might be forced to liquidate some assets to pay off the debt. 5. Divorce If you and your spouse decide to divorce, it is crucial that you determine what happens to your life insurance policy. Divorce will raise two kinds of issues; beneficiary and coverage issues. If you did not have children during your marriage, the issue is as simple as just changing the beneficiary and adjusting your coverage, so it reflects your newly single status. If you had children, you simply change the beneficiary from your spouse to the children. Most people are not aware of how their life insurance needs change as their lives change. It is essential that you adjust your policy depending on the stage of life you are in. This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
It seems like when summertime hits, time slows down. The hustle and bustle of the holiday season is over, the taxes are complete and the vacation days are scheduled. If you find yourself with a bit of extra time on your hands in the upcoming months, you may want to use this opportunity to check in on your family’s finances. While doing a thorough analysis of your wealth may sound intimidating, we’ve broken it down into eight simple steps to keep you focused and on track. Step 1: Analyze Your Budget In early 2022, the Bureau of Economic Analysis reported that the personal savings rate is at only 6 percent.1 An effective way to avoid spending more than you’re earning is to step back and take stock of your monthly and annual budget. And if you don’t have a budget at all, use this time to make one. Many credit cards or banks will offer categorical breakdowns of your spending, which can be a great way to find out what you’re spending the most money on and if there’s room to cut back. To get the best look at your spending habits, you may want to evaluate your savings and spending record over the past six to 12 months. Step 2: Seek Out Tax Savings Do you scramble to pull your paperwork together every March and April? This year, try taking a different approach to tax season by evaluating your tax-saving strategies early. You may want to work with your financial planner or tax professional to create a mock tax return, as this can help you understand your withholding options and tax-saving opportunities such as 401(k) or 403(b) options, IRAs and HSA contributions. Focus on filing any time-sensitive deductions and brush up on changes in tax laws. Reaching out to your tax professional now could mean you have more time to prepare and strategize together for next year’s returns. Step 3: Tackle Your Debt An alarming 38 percent of adults carry credit card debt from month to month.2 If you’re guilty of putting off managing your amounting expenses, now’s the time to start planning to pay them off. While most consumers have some amount of good debt on their plate (mortgages, car payments, etc.), it’s the bad debt (credit card debt, student loans, etc.) that you’ll likely want to focus on managing and eliminating. While you could be tempted to simply pay off what shows up on the bills each month, you may want to create a debt summary to get a better idea of your total debt’s big picture. By creating an annual debt summary, you and your financial advisor can better understand whether you’re gradually working down the amount or falling farther into the hole. Step 4: Revisit Short and Long-Term Goals A lot can change in a year - marriage, death, divorce, growing your family and experiencing a major career change. Even seemingly small adjustments, like a job promotion or sending a kid off to college, can have a significant impact on your financial status. That’s why it’s important to regularly review your long-term goals and progress towards them while revisiting and evaluating your shorter-term goals as well. Step 5: Evaluate Coverage and Providers As you’re reviewing your budget and expenses, take the extra time to thoroughly evaluate your current providers and coverage options. This includes your internet, cable and wireless service providers in addition to your insurance coverage options. If you tend to set up auto payments and forget about your monthly bills, this could be an opportune time to revisit what it is you’re actually paying for. Step 6: Reassess and Rebalance Your Portfolio It’s important to visit your portfolio and risk tolerance regularly to help keep it in line with your tolerance, goals and market conditions. While most managed portfolios will be rebalanced automatically, it’s important to take stock of your investments’ big picture. Doing so can help you determine if you need to diversify differently or reassess your risk tolerance. Step 7: Review Your Retirement Savings Whether retirement is decades down the line or within the upcoming year, reviewing your retirement savings on an annual basis is a great habit to start. Take the time to assess whether or not you’re maxing out your retirement contribution options and how the savings you’re making today will translate into retirement income later down the line. Step 8: Assess Your Estate Plan It’s not fun to plan for the worst-case scenario, but leaving your family with an outdated will, trust or estate plan can lead to some major issues down the line. As you assess your legacy plan annually, make sure you’re accounting for any newly acquired assets (houses, cars, pets, etc.) while checking that your designated beneficiaries are still willing and able to assist in the event of your passing. While you’re likely daydreaming of book reading, beach-going and backyard barbecuing this summer, don’t forget to do yourself a favor and squeeze in some financial assessment as well. https://www.bea.gov/data/income-saving/personal-saving-rate https://www.nfcc.org/resources/client-impact-and-research/2021-consumer-financial-literacy-and-preparedness-survey/ This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
The first quarter of 2022 was negative on nearly every front for investors. The S&P 500 lost more than 5%. International stocks lost more than 6%. The Russell 2000, which represents U.S. small cap stocks, declined nearly 9%.1 Even the bond market suffered. Bonds are often used to minimize risk and volatility, but they offered little stability for investors in the first quarter of 2022. The Bloomberg U.S. Aggregate Bond Index lost more than 6% in the first quarter, the worst loss for the index since 1980.2 The first-quarter decline in the bond market isn’t a new phenomenon. In fact, the Bloomberg U.S. Aggregate Bond Index has declined 10.6% since its peak in August 2020. That’s the largest correction in the U.S. Bond market in the past 25 years.3 It’s not just U.S. bonds either. The Global Aggregate Index has declined 11%, falling to its lowest point since the 2008 financial crisis.3 Why are bonds declining? All financial markets are facing headwinds right now, but the bond market is facing multiple issues that are creating a perfect storm for income investors. The first issue is the ongoing war in Ukraine. Instability is always a risk for financial markets, and this is no exception. The uncertainty surrounding the outcome and Ukraine and the risk that the conflict could expand have investors rattled. The other issue is the double-edged sword that is inflation and interest rates. In March, the Consumer Price Index (CPI) was up 8.5% from 12 months earlier. That’s the fastest annual rise in prices since 1981. In fact, the CPI has set new 40-year highs for five consecutive months.4 The sharp rise in inflation has led to a similar rapid rise in interest rates. The Federal Reserve raises interest rates to fight inflation. Higher interest rates makes it more difficult to borrow money, which slows the economy and reduces demand for goods and services. Fed Chairman Jerome Powell has already indicated a 50-point increase in interest rates at the May meeting. Other Fed officials have suggested that there will be further hikes. The CME Fedwatch website predicts rates to hit 2-2.25% by the end of the year, with an 87% probability.5 The prospect of increased interest rates has affected the stock market, but it’s also had a significant impact on the bond market. When interest rates rise, bond prices tend to fall. That means the bond market will continue challenges if the Fed continues to raise interest rates. What can be used as an alternative to bonds? Although not true for everyone, some people use bonds for income and as an asset to reduce volatility in their portfolio. Many investors shift more assets to bonds as they approach retirement to minimize their exposure to stock market risk. In the current environment, though, bonds may not perform as they have in the past. In the first quarter, major bond indexes performed worse than stock indexes.2 Potential Bond Alternative Fortunately, there are alternatives available. One potential alternative is a fixed indexed annuity (FIA), which could be used in a portfolio to replicate the income from bonds and also protect the portfolio from volatility in the stock and bond markets. A fixed indexed annuity is a product offered by insurance companies. They are often tax-deferred, meaning you don’t pay taxes on gains as long as the assets stay inside the annuity. FIAs also provide risk protection in the sense that your value never declines due to market performance. You can potentially earn interest each year based on how market indexes perform, but you never lose any of your premium if the markets decline. An easy way to think about a fixed indexed annuity is: Fixed floor value that protects your principal Interest based on the performance of a market index Annuity that grows tax-deferred, unlike bonds Many FIAs also offer optional riders that include income benefits which provide predictable lifelong income through retirement. Those benefits vary by product, but they can be used to replicate the income-driven nature of bonds. A fixed indexed annuity isn’t right for everyone, but it can be a useful tool for those looking for predictable income and protection from market risk. Now may be the right time to review your strategy and explore alternatives to bond investments. Let’s connect today and start the conversation. 1https://www.google.com/finance/ 2https://www.wsj.com/articles/bond-market-suffers-worst-quarter-in-decades-11648737087 3https://finbold.com/u-s-bond-market-wipes-out-over-2-trillion-marking-the-largest-loss-in-recent-history/ 4https://www.usatoday.com/story/money/2022/04/12/inflation-rate-cpi-highest-40-years-prices/7284054001/ 5https://www.barrons.com/articles/interest-rate-hikes-51650675267 Licensed Insurance Professional. Respond and learn how insurance and annuities can positively impact your retirement. This material has been provided by a licensed insurance professional for informational and educational purposes only and is not endorsed or affiliated with the Social Security Administration or any government agency. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. Annuities are insurance products backed by the claims-paying ability of the issuing company; they are not FDIC insured; are not obligations or deposits of, and are not guaranteed or underwritten by any bank, savings and loan or credit union or its affiliates; are unrelated to and not a condition of the provision or term of any banking service or activity.
Request your
complimentary copy today!
Susan Waters shares a compilation of lessons learned while working with a wide range of clients in her new book, Financial Wisdom: Short Stories with Enduring Lessons. The insights gained include ups and downs of her own life along with wisdom that has been passed down over many generations.
Book Request
Investment advisory services offered through Horter Investment Management, LLC, a SEC-Registered Investment Advisor. Horter Investment Management does not provide legal or tax advice. Investment Advisor Representatives of Horter Investment Management may only conduct business with residents of the states and jurisdictions in which they are properly registered or exempt from registration requirements. Insurance and annuity products are sold separately through Susan Waters, InvestWell. Securities transactions for Horter Investment Management clients are placed through AXOS Advisor Services, TD Ameritrade and Nationwide Advisory Solutions.
Susan Marie Waters: CRD #1591121. CT Ins. License # 2335465 . Insurance and annuity products are not sold through Horter Investment Management, LLC (“Horter”). Horter does not endorse any annuity or insurance products nor does it guarantee their performance. Owners of these products are subject to the terms and conditions of the policies and contracts of the issuing companies. All product guarantees depend on the insurance company’s financial strength and claims-paying ability.