financial planning Archives - The Segrust Group

Differentiating the Major Fund Types

July 17, 2023July 17, 2023Cliff Cadle

There comes a time in many conversations I have, where I can see the nervousness build. When I see that happen, I know exactly what is going on. There is a question about an investment or strategy, but they are afraid to ask it. Maybe it’s out of fear of looking uninformed. Maybe it’s out of fear of the answer itself. Either way, I would like to tell you now, loud and clear: PLEASE ASK ME! I love answering your questions. It’s literally why I do what I do. I want to help people solve problems and put them on a solid financial path. So, in this vein, let me answer a common question, you may be afraid to ask. What differentiates Mutual Funds, Exchange Traded Funds (ETFs), and Hedge Funds? A Mutual Fund is a company. That’s the best way to think about it. That company owns securities, such...

What are Bond Yields and Why Do They Matter?

June 16, 2023June 16, 2023Cliff Cadle

Previously, I broke down some of the most common terms associated with bonds and what they mean. But there was one term I left unexplained – and often, it’s the one you hear the most about in the media. I’m referring to a bond’s yield. So, without further ado, let’s answer: Questions You Were Afraid to Ask #9:What are bond yields and why do they matter? Super-quick refresher on four of the terms we defined last time, because they’ll play a role here, too: Par Value: This is the amount that must be returned to the investor when the bond matures – essentially, the original investor’s principal. (Many bonds are issued at a par value of $1,000.) Coupon Rate: This is the bond’s interest rate, paid by the issuer at specific intervals. For instance, let’s say you owned a $1,000 bond with a 10% annual coupon rate. The issuer would...

Debt Ceiling Update

June 2, 2023June 2, 2023Cliff Cadle

On May 1, the Secretary of the Treasury informed Congress that the U.S. could default on its debt by June 1 if legislators do not raise the nation’s debt ceiling.1 This announcement was not a surprise. The U.S. officially hit the debt ceiling in January but were able to stave off any immediate effects through the use of “extraordinary measures.” (These are essentially accounting tools the government can use to pay its bills without authorizing any new debt.) The Secretary’s recent message was to let Congress know those measures are close to being exhausted. Without raising the debt ceiling, the U.S. will not have the money it needs to pay its debts. Should a default actually happen, the economic consequences could be severe. But even if Congress staves off the unthinkable, simply going down to the wire can have negative effects on the markets. To explain why that is, it’s...

Volatility Do’s and Dont’s

May 20, 2023May 20, 2023Cliff Cadle

Between rising interest rates and a recent spate of bank failures, there’s a lot of uncertainty in the economy right now. This, in turn, has brought volatility back to the markets. It’s no surprise, then, that many of my clients, friends, and family have asked me what investors should be doing about it. So, I thought I would write it down: Five Do’s and Don’ts During Times of Market Volatility 1. DON’T panic and make emotional decisions. During times of uncertainty or fear, humans are prone to make decisions based on their “fight or flight” response. Yes, this is even true of our financial decisions! When market volatility strikes, many people make knee-jerk decisions simply so they can feel like they are doing something. So they can feel “in control.” But think about when you’re driving a car, and you see an animal in the road. What happens when...

Frustrated Yet?

May 7, 2023May 7, 2023Cliff Cadle

If you are paying any attention to the news or even just the conversations wafting through the office, you have heard the concerns regarding the world and domestic economy. Inflation is the highest it has been in decades – meaning EVERYTHING costs more – and retirement accounts are being hammered by it all, begging the question… FRUSTRATED YET? If you’re like most investors, the answer is an emphatic YES! But then the real question, especially after the recent market uncertainty and volatility, is “What can you do about it?” While we at the Segrust Group don’t pretend to have all the answers, our clients—people just like you—would tell you that we have enough to take away the frustrations. The good news is, «Salutation», my team and I are here to help our clients navigate the current market environment. (Following is an example of how this letter should be customized for...

Eleven Ways to Help Yourself Stay Sane in a Crazy Market

June 1, 2016March 19, 2021Cliff Cadle

Words to ponder “Investors should remember that excitement and expenses are their enemies. And if they insist on trying to time their participation in equities, they should try to be fearful when others are greedy and greedy when others are fearful.” –Warren Buffett “Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble … to give way to hope, fear and greed.” –Benjamin Graham “In this business if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten.” –Peter Lynch Remember that while they’re sound strategies, diversification, asset allocation, and dollar cost averaging can’t guarantee a profit or eliminate the possibility of loss. All investing involves risk, including the potential loss of principal, and there can be no guarantee...

Closing a Retirement Income Gap

March 3, 2015March 19, 2021Cliff Cadle

When you determine how much income you’ll need in retirement, you may base your projection on the type of lifestyle you plan to have and when you want to retire. However, as you grow closer to retirement, you may discover that your income won’t be enough to meet your needs. If you find yourself in this situation, you’ll need to adopt a plan to bridge this projected income gap. Delay retirement: 65 is just a number One way of dealing with a projected income shortfall is to stay in the workforce longer than you had planned. This will allow you to continue supporting yourself with a salary rather than dipping into your retirement savings. Depending on your income, this could also increase your Social Security retirement benefit. You’ll also be able to delay taking your Social Security benefit or distributions from retirement accounts. At normal retirement age (which varies,...

Members of the Military: Personal Financial Planning

December 5, 2014March 19, 2021Cliff Cadle

Service branches offer campaigns and educational programs to service members and their families. The Air Force, Navy, and Army each require that respective members receive financial education, training, and counseling. Also, the Department of Defense established MilitarySaves.org to help service members and their families plan for their financial futures. Special Savings Program If you’re deployed in a designated combat zone or in support of a contingency operation, you have a unique chance to earn a high interest rate by participating in the Defense Department’s Savings Deposit Program (SDP). The SDP pays 10% annual interest on account balances up to $10,000. Contact your local military office for more details. Other survivor benefits Death Gratuity pays a one-time lump sum to eligible beneficiaries of a service member who dies within 120 days of retirement, or as a result of non-hostile action, or as a result of hostile action in a designated combat zone...

Year-End Charitable Giving

November 17, 2014March 19, 2021Cliff Cadle

As the holiday season approaches, with the end of one year and the start of another, we pause to give thanks for our blessings and the people in our lives. It is also a time when charitable giving often comes to mind. Charitable giving can be enhanced using income tax deductions, and so it can be much more effective when it is included as part of year-end tax planning. Assume you are considering making a charitable gift equal to the sum of $1,000 plus the income taxes you save with the charitable deduction. With a 28% tax rate, you might be able to give $1,389 to charity ($1,389 x 28% = $389 taxes saved). On the other hand, with a 35% tax rate, you might be able to give $1,538 to charity ($1,538 x 35% = $538 taxes saved). A word of caution Be sure to deal with recognized charities,...

Women and Money: Taking Control of Your Finances

November 12, 2014November 12, 2014Cliff Cadle

Even if you have a partner who traditionally manages household finances, it’s important to be involved in the budgeting and investing decisions that have an effect on your overall financial picture. Some credit traps to avoid: When using revolving credit, avoid spending more than you can pay off at the end of each billing cycle Be aware of hidden interest and fees When transferring balances to take advantage of low interest rates, be sure to pay off outstanding balances before the teaser rate expires Be sure to make payments on time; otherwise it could negatively affect your credit report Women and Money: Taking Control of Your Finances As a woman, you have financial needs that are unique to your situation in life. Perhaps you would like to buy your first home. Maybe you need to start saving for your child’s college education. Or you might be concerned about planning for...