Category: Financial Lessons

Time is Everything

October 18, 2023
Financial Advisor, Financial Lessons, Financial Planning, Life, Uncategorized

Given my profession, I’ve often wondered,” What are the most commonly used words or phrases in finance?” What would you think? Money, the stock market, Interest rates, rate of return, buy, sell, gains, losses? And depending on the day, some may not be suitable for mixed company, am I right? I don’t have an answer, really, and your guess is as good as mine. I would imagine time would have been one of those “also receiving votes” in the poll above, don’t you think? The time value of money, for example. Or when’s the best time to buy or sell. The most popular use of that word, for me anyway, is when discussing timing the market vs. time in the market. It comes up quite frequently. So much so, I’ve recorded videos on the subject which have been shared with hundreds of investors. It’s that important. But this weekend, I witnessed two defining moments where time expanded the lives of some and tragically departed from others.

On a perfect Saturday afternoon in September, my wife and I traveled to a small, remote town in northwest Georgia to witness the wedding of one our best friend’s daughters. We’ll call this young bride, “Kaitlyn.” And we’ll call her that because that’s her name. She’s a brilliant, accomplished, and beautiful young lady who recently graduated from Auburn with honors – in three years – and all while working a full-time job. (I know, sickening.) And she’s marrying one of those “too-good-to-be-true” type of guys. His name is Garrett, of course. You know him, one of those handsome, chivalrous, strong, scraggily bearded leader-types who doesn’t need a set of pronouns to show he’s a man. (They still exist, folks.) Back to our friend. He adopted Kaitlyn many years ago and is as wonderful a father as the day is long. He’s also one of those too-good-to-be-true types – just with a little less hair and a little more weight. As the sun was setting across the hills of north Georgia, the tribute he offered to his daughter was one of those only a father of girls could deliver. A sweet glimpse of their relationship over the many years as father and daughter. He filled a paternal void in Kaitlyn’s life and became her protector, provider, care giver, and just what God knew she needed – a dad. A few memorable phrases used in his speech that evening: There was the time, Do you remember that time, and I look forward to the time…

Fast forward 19 hours…

She was a beautiful, vibrant, young lady. A beloved daughter, sister, and cherished friend to many in the community. She was only 16 and tragically killed in an automobile accident earlier that week. And with no warning, she was gone. We attended her visitation on Sunday afternoon along with what must have been thousands of friends, family and acquaintances wanting to pay their respects. They waited for hours to love on her family and perhaps share stories of how she lived and loved so mightily. The funeral home was adorned with hundreds of pictures of this sweet young girl surrounded by friends, families, and even one of her and her approaching homecoming date. As we moved through the procession, I couldn’t help but think back to my friend’s speech just 19 hours earlier – There was the time, Do you remember that time, I look forward to the time. And I imagined what questions were running through her dad’s mind at this moment. It was heartbreaking. If our world shares a common belief, it’s that parents shouldn’t have to bury their children. Children shouldn’t have to mourn their friends. And a sweet young lady shouldn’t have to lose her life. But as we’re all painfully aware, life doesn’t always work out that way. All of us will experience loss. It’s inevitable. And it’s a matter of time.

Forty-eight hours ago, this article was to have covered a vastly different topic. But forty-eight hours ago, I hadn’t experienced a wedding and a wake. I am ill-equipped to even begin to capture the raw emotion of saying good-bye to a daughter until such time the Lord sees fit for a reunion. Each day, we witnessed two stories on this notion of time. Time spent, time hopefully to be shared again soon, and time to long for yet never get back. I’m apologetically incapable of expressing the weight that the word time carries for many families this evening. My prayer for all of us is that we’re blessed to make the most of what we have of it.

And God willing, maybe I’ll be able to write about that another time.

CapSouth Partners, Inc, dba CapSouth Wealth Management, is an independent registered Investment Advisory firm.

Take a Number

August 10, 2023
Financial Advisor, Financial Lessons, Financial Planning, Investing

Seven weeks ago, I was standing in a rustic, beautifully decorated back room of a local restaurant, toasting my son and soon-to-be daughter-in-law on the eve of their wedding. It was the culmination of months of planning, coordination, scheduling, and maybe a few tears here and there. (And that was just the toast.) Before I stood, I watched the two of them engaged, separately, with various family members from ages 7 to 72. Barely able to finish one conversation without being brought into another. In-between, they were able to share a glance if only for a moment. And in the midst of all of that busyness, they made every person in the room feel like the one being celebrated. And despite the growing bar tab (thank you, Uncle Tom), the looming dinner bill, and my growing curiosity as to the cost of the 72 table arrangements, the only thing that truly mattered was the glow around her face and the adoration in his eyes for his bride. And my heart was delighted in that moment. It would prove to be worth every penny.

Seventy-two hours earlier… I had just finished a series of hour-long 401(k) presentations to various groups when my voice definitively called it a day. It was done. Gone. Forcing the words only produced pain. So, there I was, a few days before my son’s rehearsal dinner, with the inaugural toast to give and a song to perform (believe it or not), and I couldn’t speak without pain. Those were a long 72 hours…

For just a few moments, let’s put the number 72 in a different context. Do you remember those days in school when you had to memorize formulas to find certain areas, lengths, or angles or whatever? Sure, you do! Who can forget those nights at the dinner table grappling with the Quadratic Equation, or maybe that family favorite, the Pythagorean Theorem? And you said to your parents, “When am I ever going to use this?” And maybe you’ve even heard that from your kids? And while you agreed with them, you certainly couldn’t let on that you did. Well, today, we’re going to cover a formula the entire family can use.

It’s The Rule of 72, and it’s a simple mathematical formula used to estimate how long it will take for an investment to double. Easy to remember and even easier to use. It’ll give you a quick and rough idea of the potential growth of your investments over time. The formula for the Rule of 72 is: Years to Double = 72 / Annual Rate of Return. Here’s how it works:

Let’s say you have an investment that earns an annual rate of return of 8%. Using the Rule of 72, you can quickly estimate how long it will take for your investment to double:

Years to Double = 72 / 8%

Years to Double = 9

So, with an 8% annual return, it would take approximately 9 years for your investment to double in value.

Okay, let’s say you’re 25 years old and have 30,000 to invest. And you plan on earning 8% annually. What does the Rule of 72 look like for you?

At 34, you’d have approximately $60,000

At 43, you’d have approximately $120,000

At 52, you’d have approximately $240,000

At 61, you’d have approximately $480,000

At 70, you’d have approximately $960.000

Now, allow me to remind you of a few key points here. This calculation is based on a one-time deposit of $30,000. This does NOT include any annual contributions you may be making, nor does it include any employer contributions you may be receiving if this were 401(k) account, for example. Yes, that’s potentially even more money in your account. Pretty powerful stuff, huh? Not impressed? Well, you could have chosen to purchase a new vehicle with that money. Drive it off the lot and it’s now a $27,000 vehicle. (You get the point.)

A few important caveats: The Rule of 72 is most accurate for growth rates or assumed rates of return that are between 6% and 10%. For very high or very low interest growth rates, the approximation may become less accurate. The Keep in mind that the Rule of 72 is just a rough estimate and not an exact calculation. Actual investment returns can be affected by various factors such as inflation, taxes, market volatility, and fees. Nevertheless, it’s a handy tool for understanding the potential growth of investments and making quick calculations when evaluating different investment opportunities.

So, before I get back to the rehearsal dinner, I did a quick internet search on the number 72 and here’s what I found:

“When you see the number 72 repeatedly, it is a sign that the universe is trying to tell you something. This number is all about abundance and prosperity, so when you see it, it means that the universe is trying to let you know that good things are on the way!”

Sounds like hogwash to me, but my voice did return in time for me to fulfill my father of the groom duties. I’ll chalk that up to prayer and a small steroid shot in the rear end. I can recommend both for what ails you. And speaking of prayer, my wife has been praying for years for the woman who would be our son’s bride. I prayed for football scholarships. We both had our prayers answered, but he chose med school. Whatever.

Praying now for many happy years together. Seventy-two sounds like a great place to start.

To further discuss the rule of 72 or the services provided by CapSouth, contact our office at 800.929.1001. Or if you’d first like to take a look around our website to learn more about us and our team, visit www.CapSouthWM.com or www.CapSouthWM.com/what-we-do/

By: Billy McCarthy, Wealth Manager

Your Account is Open

April 25, 2023
Financial Lessons, Financial Planning, Guidance, Uncategorized

April takes its name from the Latin word Aperire, meaning to open. Naturally, my mind goes to the opening bell of the NFL draft at the end of the month, or maybe the opening of the tomb at the beginning of the month, or maybe in a moment of sensitivity (sensitive in a manly way of course), the opening of flowers and such. Lest we forget, there are things that absolutely should not be opened – Pandora’s Box, for example. We certainly don’t need any more evils flying over the Earth now do we. Or maybe that can of worms often sitting on the tip of your tongue. Nope. I’ve opened that can more than a few times, sadly.

While we’re on the subject, here’s a quick list of things that you might consider in this season of opening:

529 College Savings Account: A 529 account for your kids and or grandkids – Some offer some pretty nifty state tax deductions and a plethora of investment options. And when you withdraw the money for qualified educational purposes, you don’t pay taxes on the gains. Anyone can contribute to one on behalf of the beneficiary, and there are no age, income or residency limitations for the beneficiary. Beneficiary not going to college? No problem. You can change the beneficiary to another member of the family. For a more comprehensive review of such an account, check out: https://www.collegecounts529.com/

Two-eth by Checking and Two-eth by Savings: For checking, consider one checking account just for your bills and another just for spending money. For savings, maybe you have one account serving as an emergency fund and another for long-term savings goals. The goal being to make your financial life easier to manage. Of the above, I strongly recommend an emergency fund. (It is what it is, and not everything is an emergency, now is it.)

Roth IRA Account: Offers tax-free growth and tax-free qualified withdrawals in retirement. Because none of us know what the tax code will look like in the future, Roth accounts offer some diversification in retirement as not all your retirement accounts would be tax deferred. Speak with your financial advisor about your particular situation to see if the Roth IRA is a good option for you.

Health Savings Account (HSA): Are you covered by a High Deductible Health Plan (HDHP)? If so, you may want to investigate a Health Savings Account. An HSA allows you to make annual pre-tax contributions to pay for qualified medical expenses, and in some cases, it offers significant tax advantages.

Investment Account: 401(k) opened and contributing to? Check. Roth IRA opened and contributing to? Check. Emergency Fund opened and maintained? Check. Consider a (non-retirement) investment account. This may be in the form of an individual or joint account that you contribute to, and it serves as your “do life out of “account. It’s funded with after-tax money, invested how you please and with no contribution limits. If there was a trinity of financial accounts, it may be the third. 1) The Tax Deferred Account. 2) The Roth Account. 3) The Taxable Account. Speak with your advisor to see how this may fit into your financial plan.

Your particular situation may or may not lend itself to one or more of the above. And for some, the above may just be scratching the surface. Speak with your advisor on how they may fit into your financial plan.

To learn more about CapSouth Wealth Management and the services we offer, visit our website at www.capsouthwm.com or www.capsouthwm.com/what-we-do/

Now, here’s a freebee for April readers. It’s very likely that you’re reading this article prior to Mother’s Day. That means – it’s still not too late! Remember the can of worms reference from above? Avoid one altogether by remembering that Mother’s Day is May 14^th. Here’s a little something to get your juices flowing – and don’t say you weren’t warned!

Just How Does

It’s just after Mother’s Day

And all through the house,

The messes are so many

And I feel like a louse.

I had given my best shot

And used all of my might,

To keep the messes un-messed

And the fallen upright.

With dog hair in the hallway,

And my undies on the floor,

Reality sets in…

It’s Mother’s Day no more.

The kids run in from playing

While discarding shoes and socks,

With none of them landing in (or near)

The laundry basket box.

“This ain’t mommy’s job!” I bark,

“Come pick up all this mess!

Who did you think would get it?

Never mind. Let me guess…”

“Keep cleaning till you’re finished!

She’s on her way just now!

And when she passes through that door

She’d better be like, ‘Wow!’

Cause this year will be different!

And all the world will know,

That Mother’s Day in this one house

Is a twenty-four-hour show!”

So…

Dishes were cleaned and mostly put up.

That’s almost every plate and almost every cup.

Brooms were swishing and mops were swashing,

And most every elbow in the house was washing.

Many things needed doing.

A lot of straightening and even some gluing.

Then…

“The garage door just opened!

And soon she’ll be inside!

To witness what we’ve done!”

(As we all just beamed with pride.)

She passed right by the dog hair

– A little less now in the corner.

Over the damp and freshly mopped floor

– Before we thought to warn her.

She scooted by the laundry,

And the sink which held no dishes,

And saw NOT the broken vase

As had been ALL our wishes.

She then plopped herself down

On the couch (once) covered with stuff,

And noticed not the pillow

And its lack of fluffy fluff.

She cared not about the mess

That once had covered the house,

Or the peanut butter stain

That was hiding on her blouse.

She cared only to be home

With the family she surely loves.

For whom she does so much for

Despite the mess and shoves.

She was gone but for an hour

And you’d think it was for days,

By all the attention that she got

In lots and many ways.

“But mommy did you notice?”

“And mommy did you see?”

“All the special things we did?

“All for you, all by me!”

And as they went on and on,

Telling tales of all their deeds,

I sat and wondered just how does

She attend to all our needs?

She is, after all, one person

Who’s the primary for all six,

Just how can she do it all

With such chaos in the mix?

She’s the mother of four boys

And the husband of this one.

She’s been given special gifts,

And we’re blessed by everyone.

So I left them to their gushing

For she’s deserving of every word.

And I wandered down the hall,

Twas their laughing that I heard.

No mention of the messes

That still lingered all around.

For with just the slightest glance

One was certain to be found.

Every day should be for mom.

A day for just – receiving.

A day where our love for her

Is right there for – believing.

Show mom each and every day

That you don’t need a date,

To show how much you love her,

And do appreciate

Everything she does for you

Things so big, things so small.

And show her that you love her

Everyday. One and all.

April, by the way, just happens to be National Poetry Month, as well.

CapSouth Partners, Inc, dba CapSouth Wealth Management, is an independent registered Investment Advisory firm. Information provided by sources deemed to be reliable. CapSouth does not guarantee the accuracy or completeness of the information. CapSouth does not offer tax, accounting or legal advice. Consult your tax or legal advisors for all issues that may have tax or legal consequences. This information has been prepared solely for informational purposes, is general in nature and is not intended as specific advice. Any performance data quoted represents past performance; past performance is no guarantee of future results. This article contains external links to third party content (content hosted on sites unaffiliated with CapSouth). CapSouth makes no representations whatsoever regarding any third party content/sites that may be accessible directly or indirectly from this article. Linking to these third party sites in no way implies an endorsement or affiliation of any kind between CapSouth and any third party, including legal authorization to use any trademark, trade name, logo, or copyrighted materials belonging to either entity.

Category: Financial Lessons

Time is Everything

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