Tag: Financial Advisor

Financial Lessons from the Boys of Summer

December 2, 2021
Uncategorized

At the time this article was written, the Atlanta Braves and its fans were still celebrating their second World Series championship since moving to Atlanta in 1966. A little history for you, the Braves have actually won four Major League Baseball titles – the first in Boston in 1914, and the second in Milwaukee in 1955. And if you’ve followed the Bravos for any length of time, this championship is especially sweet considering the path they took to get there. More on that later. If the phrase, “it’s a marathon, not a sprint” applied to a sport other than its namesake, it’s baseball. Most teams will start around Valentine’s Day and two will finish just before the Peanut Festival begins. There are 162 games in the regular season – 150 or so receiving much less attention than those played in October. But if you’ve ever been part of a championship team of any sport or of any sort, you know that it was the preparation of February that led to the champaign in November. It wasn’t serendipity, far from it. I’m sure there was a good break or a bad call along the way adding to the story. But long before the first glove was restrung, or the first line- up card scribbled out, there was a plan.

Such is baseball.

Similar success stories can be found from planning within the personal finance game. And unless there’s a silver spoon in the way, you can clearly see the correlation. For most, living your one best financial life doesn’t happen by chance. It’s the result of implementing and monitoring a financial plan with adjustments being made along the way. It’s intentional. And it starts with understanding how you make financial decisions and the biases at play within us all. Do you ever avoid having financial discussions with those you care about most? Are there certain behaviors detrimental to your financial wellbeing that you seem to repeat again and again? Odds are, you have a history with one of these questions. Maybe even both. Take heart, you’re not alone. One study from a financial research firm found that people are “more comfortable” talking about race, sex, politics, mental health and marital discord than they are talking about money. Money can be hard to discuss for a variety of reasons, right? Maybe you were brought up in a home in which avoiding the “money talk” was modeled to you. Your parents never discussed it at the dinner table, so now you don’t. So why is that? It’s not like we want our children to learn financial stewardship through culture. The same culture that gives us the Real Housewives of (insert city here) or Pretty Little Liars. Maybe we avoid discussing money for fear of being compared to others, or maybe we just don’t know how to talk about money? Could it be that we hesitate to talk about money because how we spend it shines a light on what we value? I’ll pause here and let you reflect on that a moment.

When we realize why we make the decisions we make, and how those decisions reflect what we value, we’re gaining the understanding needed to create a personal financial plan.

Baseball has changed over the years. When I was a kid, they played “small-ball baseball” where teams emphasize getting runners on base and methodically moving them into scoring position and then advancing them across the plate. They do this through bunting, stealing bases, and just putting the ball in play. Defensively, this style calls for your pitcher to throw 80 to 90 pitches per outing. That’s old school, fundamental baseball. These days, however, teams (see: their owners) have moved toward the “knock out punch” style of baseball where hitters are swinging for the fences – or for the knock out – from one swing of the bat. Great for ratings, advertisers, owners, and those who’ve found baseball – boring. The Braves? Not so much. They won the old-fashioned way. For example, Braves players, Freddie Freeman and Austin Riley, as one writer offered, “drew walks like flies”.

(A “walk” is when a player opts not to swing for the fence and chooses to wait for the pitcher to throw strikes. And when the pitcher doesn’t (or can’t), he ends up “walking” the batter (on four bad pitches), thereby earning the batter a trip to first base – the first step toward home plate and another run.)

Once on base, they would “steal” the next base. And once in scoring position, (on second or third base), they would advance on the next hit, and add to the run total. Then, with pitchers able to consistently pitch into the 6^th and 7^th innings, you’re able to throw in a middle reliever for an inning or two to hold the lead and then turn it over to your closer. That’s the baseball that many of us grew up on. And there’s a reason for that – it’s methodical, it’s proven, it’s fundamental, and it requires a strategy.

And it’s all part of a plan.

As an advisory business, CapSouth focuses on the long-term goals of our clients while guiding them toward the financial life they’ve always wanted. It starts with an honest conversation that can fundamentally change the way you see your finances. Our discussions, as you may know, are not so much focused on amounts, as they are on values, goals, and behaviors. Our process puts the personal back in personal finance. Your life is not about numbers, amounts, percentages, and totals (as baseball may be.) Your life is the sum of your values, the priorities you establish and the decisions you make along the way. We’re not here to help you hit the long ball, we’re here to help you pursue your goals through one wise financial decision after the other. Understanding, of course, there may be bumps along the way.

Detours and forks in the road are not uncommon, and your financial plan should account for them.

In the middle of the summer, when our nation celebrates its independence, we also celebrate the Major League Baseball All-Star game. Both the American and National Leagues bring their best teams together for one game – for bragging rights, I guess. In old-school baseball (prior to 2017), the winner would have home field advantage in the World Series. That’s not the case any longer. Now they play for a pool of money. Surprise. But I digress. In 2021, your Atlanta Braves entered the all-star break with a record of 44-45 and had just lost its best player Ronald Acuna, Jr. to a torn ACL. Perhaps this is the equivalent to a significant market correction, or let’s call it a market slump in keeping with the metaphor. So what did the Braves do?

They relied on their plan.

They made adjustments, sure, traded some assets for others, but didn’t panic in the face of adversity. Their advisor, Coach Brian Snitker, having years of experience behind him with his team of coaches, led the way, making wise decisions with the resources they had in hopes of living their one best season. And boy did they.

As the Braves have shown, numbers, percentages and values may change throughout the course of a season – as is true in a financial season – but more important than continued, uninterrupted success throughout, is success when the season ends. The Braves finished well. How about you? How are you going to celebrate the end of your season? On the field hoisting a trophy? Or in the dugout watching someone else do it.

Finish well, won’t you?

And from all of us a CapSouth, may you and your family enjoy this season and many more!

To learn more about CapSouth Wealth Management visit our website at www.CapSouthWM.com

If you would like to further discuss CapSouth’s financial planning services, request an appointment at www.CapSouthWM.com/contact or contact our office at 800.929.1001.

CapSouth Partners, Inc., dba CapSouth Wealth Management, is an independent registered Investment Advisory firm. This material has been prepared for planning purposes only and is not intended as specific advice. 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.

The “If/Thens” of Financial Stewardship

June 9, 2021
Budgeting, Financial Planning, Life, Wisdom

Financial Stewardship is often described with words such as planning, management, attention and care. All good words. All right on point. The key, though, is how do you make it a topic worth spending your time on? Well, it’s all in how you package it. For example, I’ve really come to enjoy if/then statements. The perfect combination of hypothesis and conclusion. My family uses them on me all the time:

Son # 1: “If I get a full scholarship, then you have to buy me a new car.”

Son # 2: “If I make this shot, then I get to stay up later.”

Son # 3: “If you can’t guess what number I’m thinking of, then I get to keep your guitar.”

Son # 4: “If I eat twenty goldfish at one time, then you have to play basketball with me.”

Wife #1: “If you don’t put up these clothes, then I’m going to…” (You get the point.)

As you can see, conditional statements can cover a wide variety of subjects. That said, most of the above center around time and money – two things folks seem to always want more of. And while I can’t provide you with more time, I can offer a few suggestions on the financial side. (See what I did there? Now you’re interested in financial stewardship.) So, here’s a quick list of financial if/then statements you may find valuable:

If you don’t contribute to your 401K, then you might be missing out on the employer match.

Some employers will put a matching contribution into your 401(k) if you’ll just – contribute. That’s called free money, by the way. Technically, it’s called an employer match, and if you want as much of that free money as your employer is willing to give, then max the match. For example, if they match 50% of your contribution up to 6%, then consider putting in 6%. Disclaimer: Don’t stop paying your bills or putting food on the table in order to put money in your 401(k), but do consider taking advantage of this employee benefit if offered. The employer match is often a discretionary match, meaning, it’s up to the employer’s discretion to offer it or not. So, if you’re eligible for an employer match, look into it. You’ve heard the expression, “There’s no such thing as a free lunch?” Well, this is pretty close.

2. If you want to know where your heart is, then check your credit card or bank statements.

Warning: If you look, then you will surely find. Every dollar you make is going somewhere, right? Take ownership of that. You have the authority, if not the responsibility, to account for every dollar that comes in. Let’s be honest, not every purchase is accounted for or was part of your financial plan, now is it? It’s likely, as you have at least a passing interest in financial stewardship, that you have a good accounting of where your money is going. But life happens, and thanks to the marvel of auto-pay for example, you may have unwittingly fallen victim to subscriptions to music and video services, magazines, jelly of the month clubs, etc., that you weren’t even aware of…but that your kids were. (This may or may not have happened to me.) And each and every month, they’re helping themselves to your dollars (the auto-pay…and your kids, too, possibly). And be aware, fraud is a big business. As in billions with a “b” in 2020. One report suggests that over $117M of that originated from social media scams alone. There are different rules with debit and credit cards as to how much of a fraudulent charge you may be responsible for, so check those statements for charges that may not be yours. Time is important here. Review often and report right away.

3. If you don’t model financial stewardship for your kids, then who will?

Please discuss financial stewardship with your kids. If you don’t model it for them, then culture will. The same culture that brings us such family friendly hits as Miley Cyrus, Howard Stern and The Bachelor. As part of our client experience, we engage in an Honest Conversations® exercise that highlights what clients value most out of life and serves as the foundation for their financial plan. More often than not, how financial stewardship was modeled for them when they were young is the impetus for how they model financial stewardship for their kids. It was either discussed as a family concern, or it was never discussed and deemed none of the kids’ business. I would encourage you to model financial stewardship for those you have influence with and bring them into the conversation (as age appropriate) thereby establishing a healthy appreciation for money and a head start on financial stewardship.

4. If you’re working and NOT saving for retirement, then what’s wrong with you?

I’ll spare you the grim statistics on the percentage of Americans who are nearing retirement and aren’t prepared for it. On second thought, let’s talk about it. In a 2019 GOBankingRates survey¹of 2000 respondents, 64% reported they will likely retire – broke. Here’s an even harder to believe statistic, 48% didn’t care. What? Here’s the deal. Your retirement is not your government’s responsibility, nor is it your employer’s. It’s yours. So make a plan. Age is not an excuse, by the way. You’re never too young to be introduced to the value of planning and preparation. As a matter of fact, the younger the better! Insurance is typically less expensive, your investment time horizon is likely longer, and your margin for course correction is typically much greater. Seek wise counsel. If you were only able to remember a single thing written in this article, then remember those three words: Seek. Wise. Counsel.

5. If you think Social Security is going to take care of your living expenses during retirement, then you’re wrong.

Read most any recent article on Social Security and you’ll discover the uncomfortable truth. If changes aren’t on the horizon, then Social Security won’t be either. Reserves are projected to last until 2037, or so, unless significant changes are made. Still, Social Security is certainly worthy of your consideration, and we can assist with a strategy tailored to your plan. It’s a part of your retirement strategy, but it shouldn’t be your retirement strategy.

6. If you’re investing in the stock market and aren’t adhering to a financial plan, then you may be taking more (or less) risk than you need to.

We believe a well-designed financial plan is a vital component in reaching the financial goals you have for you and your family, and your investment strategy should support the goals within your plan. Your investment strategy is a tool – it’s not the plan itself. Once we determine how our clients want to live their one best financial life, we devise a plan, with a corresponding investment strategy to help them get there. And we prefer you not take any more risk than is necessary to accomplish your goals. So what happens if the amount of return that’s required to reach your goals is more than you’re comfortable with? That’s when priorities and tradeoffs are made. Rarely does financial stewardship or living one’s best financial life happen by accident. It requires action.

If you don’t know how much risk you should be taking to accomplish your goals and objectives, or maybe you’re not even sure where to start, then start with an Honest Conversation. We can have one.

7. And finally, if your son wants you to play basketball with him, then by all means – play.

They don’t stay 12 for very long, do they.

If you would like to learn more about CapSouth Wealth Management please visit our website at www.CapSouthWM.com if you would like to have a conversation to discuss this article further, I’d love to chat. 334.673.8600.

by: Billy McCarthy, Wealth Advisor

¹64% of Americans Aren’t Prepared For Retirement | GOBankingRates

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6 Key Areas of a Financial Strategy

October 20, 2020
IRA, Taxes

When training to become a financial professional, much of the course work centers on the six critical areas of creating a financial strategy. Some recognize October as Financial Planning Month, so it’s an excellent time to review those six personal finance areas of a financial strategy.¹

Cash Management:
This an important part of a financial strategy and is a broad topic that can address many issues. One area is creating an emergency fund, which is money that’s set aside for unplanned expenses. Cash management also can include looking at your “sources and uses” of money. Financial Planning Month focuses mainly on cash management and spending habits.¹
Investment Approaches:
Concerns about investment approaches are among the key reasons people start a relationship with a financial professional. When reviewing investment approaches, it’s critical to consider a person’s goals, time horizon, and risk tolerance.
Retirement Preparation:
This is another crucial reason why a person approaches a financial professional. The chief concern for 49 percent of Americans is running out of money in retirement. The retirement preparation process reviews your current situation and helps you better understand your choices.²
Protection Strategies:
This area looks at how well you are prepared for life’s potential financial risks such as premature death or permanent disability. Protection strategies also can include health-care considerations. By the way, did you know that 44 percent of Americans cite “declining health” as their second biggest retirement concern?²
Tax Management:
Do you feel comfortable with current tax laws? Are you confident about your approach to tax management? Tax rules are constantly changing, and there is no guarantee that the tax landscape will remain the same in years ahead. Financial professionals often work with tax, legal, or accounting professionals when creating an overall tax management strategy.
Estate Strategies:
How well you prepare today may help determine how your assets are distributed after you’re gone. Much like tax rules, estate rules are continually changing, and today’s landscape may change in a few years. Financial professionals often work with legal professionals when creating an estate approach. It can be a challenge to feel confident in all six key areas of creating a financial strategy. If you think you may need help, contact CapSouth Wealth Management at 800.929.1001 or visit our website at www.capsouthwm.com or https://capsouthwm.com/services/financial-estate-planning/ We’d welcome the chance to review your approach.

^{1. NationalDayCalendar.com, October 2020} ^{2. AARP.com, May 21, 2019}

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. 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. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with CapSouth Wealth Management. 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. Copyright 2020 FMG Suite.

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