Tax Refund Scams

Have you ever noticed when you turn on the news, the media is either panicked because the markets are down or celebratory because the markets are up? This may make for fun entertainment, but it can also impact people’s emotions, which are dangerous when they affect investment choices and financial decisions.

While you shouldn’t hide your head in the sand when it comes to the news, there’s a fine balance between staying up-to-date and obsessively following every market change.

The Problem with the News

Many people think watching the news will help them decide what financial or investment decisions to make. The problem with this is that the news is late, especially in terms of investing.

Capital markets efficiently price in all widely known information. As soon as news is available to the public, it becomes reflected in share prices. Therefore, looking at the same things as everyone else doesn’t give you a leg-up on other investors.

Additionally, we know that most news stations have a bias or slant. Many major networks tend to lean either right or left, and this can actually impact the type of actions they suggest in terms of financial decisions. Furthermore, when their guest is the head of a bank or works for a credit card company, you’ll want to be aware that their advice may be biased.

The Information to Turn to Instead

One of the best solutions is to ignore the pundits and spend more time sticking to your personal financial strategies and investment plan. It may sound crazy for me to suggest this, but I’ve found that it helps my clients feel less stressed and less likely to make emotionally driven decisions.

It takes training to tune out the media noise levels and focus on your long term plan. It is tough to do, but with a little coaching, you can feel less stress from media influence and more focused on your plan.

Let Your Advisor Do the Heavy Lifting

While working with a financial advisor is a collaborative approach, requiring work on both ends, it can be helpful to rely on your advisor for staying up-to-date on financial news and investment trends. Part of an advisor’s job is to stay current with financial news and changes in the markets. Your advisor will then suggest changes, if needed, based on your personal goals and needs.

Stick to Financial Wellness Tips

While listening to the news and recommendations of pundits can lead to emotional decision-making, reading general articles and blogs about financial health and wellness can be beneficial, and even motivating. There are hundreds, if not thousands, of blogs out there that share tips on sticking to a budget, savvy ways to save money at the grocery store, and how to find the best credit card rates. These sources of information can help you maintain a healthy outlook regarding money and keep you motivated to stick to your financial goals.

How I Can Help

As an independent advisor, my personal goal is to provide my clients with guidance that can help them understand and better define their financial goals. I stay up-to-date with the latest financial news, trends, and market shifts so my clients don’t have to. I hope to allow them the time to focus on their passions in life knowing I am here proactively monitoring their investments and financial strategies.

To learn more about how I can help you focus less on media noise and more on your passions in life, contact me for a no-strings-attached meeting. We can discuss your goals what strategies can help you pursue them. Call my office at (949) 221-8105 x 2128, or email me at michael.loo@lpl.com.

“I have no interest in learning about finances. My [husband/wife] takes care of that.”

I have heard this statement from many clients throughout my career, and I understand the sentiment that prompts this response. Human nature has shown that when groups of people come together, they divvy up tasks to different individuals based on their strengths or roles in the group. You see this in many different groups, including families. My wife cooks dinner, and I’m great at taking out the garbage. With my siblings, I’m great at being the peacemaker while my sister knows how to shine a light on different perspectives. These established roles help our family units function smoothly and effectively…

Until one of the pieces of our unit is no longer around.

I’ve seen it far too many times. Clients come in distraught and overwhelmed because they’ve lost a loved one who typically acted as the family’s Chief Financial Officer. Sometimes they don’t know if there is a will or where legal documents are saved. Perhaps they are aware of a family safety deposit box, but they’re not sure where it is or how to access it. They aren’t sure about account balances or how to read statements. They may not even have access to critical accounts because the deceased was the one who knew the passwords. Now they are dealing with grief and heartbreak, compounded by confusion as to what the next steps are for maintaining their family’s financial solvency.

This is why I insist that both parties in a marriage are involved in financial planning meetings and decisions. I also recommend, especially for my senior clients, that other family members or loved ones are aware of the basics of their financial plans. It makes things so much simpler if all important documents, including a list of passwords, are stored together. If security is a concern, there are plenty of third party vendors that will virtually store that information for you. In most cases, though, a virtual safekeeper of your important information isn’t ideal. What is really needed is someone who will help guide your loved ones during that difficult time. That’s when a financial advisor can be an invaluable asset. I have had many Trilogy clients express how relieved they are to know that their financial advisor will be around to guide and assist the loved ones after he or she has passed. At Trilogy Financial, we don’t consider it a job. We consider it an honor and a calling.

There is a saying that it takes a village to raise a child. The truth is, it takes a village to care for anyone. Please make sure that your village is prepared and has the proper tools to take care of you. If you’re not sure where to begin, you may want to meet with a financial advisor. Our Trilogy Advisors are not only trained to assist your family on how to prepare for the future, but will also be there to provide support and service during a difficult and overwhelming time.