Basketball fans are eager for October when the NBA season kicks off. It is a new beginning, a fresh chance for teams to showcase their unique talent and strategies for staying at the top of the leaderboard in a wholly unpredictable sport. One day you are winning, everything is going great, and the next, you are in a slump, wondering if you will ever get out of it.

As with NBA basketball, the financial world can be complicated and overwhelming. Both involve numerous moving parts, including salaries, setbacks, and logistics, making any attempts to comprehend every last detail a formidable challenge for fans and analysts. Moreover, basketball and finance aren’t just comparable in terms of their complexities. The strategy and skills employed in the NBA also share some surprising similarities with those in the financial world.

Here are five similarities that a basketball fan might recognize and be able to apply to their financial journey.

1. You have to have offensive and defensive strategies

There has to be a balance of well-designed offensive and defensive strategies. Creating these strategies requires knowledge, being flexible in an unpredictable environment, having open and honest lines of communication, and understanding your risk tolerance. You want to be offensive, but not so much that you risk your financial condition. You want to be defensive regarding your finances but not so scared that you keep your money in accounts with little growth opportunity. There has to be a balance.

2. Set achievable goals

Having achievable goals can make a journey much more meaningful. It allows you to stay focused when day-to-day life can often seem mundane, and the temptation of procrastination is hard to ignore.

3. You have to be willing to evolve

Basketball is a sport that is particularly susceptible to changes, with players and coaches switching teams annually and, winning streaks suddenly becoming losing spells. In contrast, players and coaches keep trying new plays to determine what will work. Being flexible allows you to stay on top of an ever-changing world and market.

4. Preparation

Being prepared means taking steps, often years in advance, to pursue a specific goal or set of plans. When it comes to financial independence or winning championships in sports, making critical decisions when it matters, staying disciplined, and effectively visualizing where you hope to be can help set the stage for your future.

5. You need competent coaching

Whether you are an NBA player or someone interested in designing a financial strategy, having a competent coach that understands the current environment and what you are trying to accomplish changes the game’s stakes. Any plan of action involves risks; however, receiving guidance from an experienced coach in sports or a financial professional in the financial world provides you with a chance to potentially manage some of the risk and to recognize problems before they have an opportunity to knock you off course.

Consider consulting a financial professional to review your financial strategy and condition and determine if any modifications need to be made. An experienced financial professional, like a basketball coach, can recognize issues or areas that need adjustment as you develop a confident financial game plan.

Important Disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by LPL Marketing Solutions

Sources:

Associative Learning – an overview | ScienceDirect Topics

LPL Tracking # 1-05377602

Planning for your financial future and retirement looks much different now than in previous years. Some people must supplement their Social Security to have enough to maintain their desired lifestyle. This means financial planning is now a critical component of retirement. While having a financial professional on your side is vital to managing your financial future, so is visualizing what your future may include.

Visualizing Helps You Determine How Much You Need in Retirement

One of the most important reasons for visualizing your future is that it may help you understand how much money you might need to afford the retirement you want. Imagine what your retirement may look like for you. Might it include travel? Do you anticipate making significant purchases? Do you want to leave a large estate to family members? Consider what you want to have in the future and calculate how much money you may need to accomplish those desires.1

Visualizing Helps You Consider Aspects of Retirement That May Affect Your Financial Needs

Visualizing your retirement may help you determine what steps need to be taken and how your retirement may be affected by certain aspects of your future. You may decide working longer is the ideal way to get to the future you visualize. You may also find that your plans could involve downsizing or upsizing your living situation, which may lead to adjustments in your financial plan.2

Part of Your Visualization Needs To Consider a Few Inescapable Factors

Certain parts of the future, such as aging and retirement, are inescapable. To improve your visualization and planning, here are a few things that you might want to factor in:

• You may live longer than expected: With advancements in technology and better health care, people are living much longer than the average life span used to be, so you may need to manage your financial plan in order to provide you with enough money to get you through the remainder of your life.

• You may face major health care bills: For most people, getting older means more health concerns and higher medical bills. As medical costs continue to rise, this challenge is expected to get worse in the future.

• Inflation: The cost of living may continue to increase as you age. In some cases, the inflation cost may be significantly higher than expected. During your visualization, you must account for the fact that prices might increase from now through your retirement and make sure you plan accordingly.

Planning for retirement involves trying to see into the future, so you may imagine how to cover your wants and needs. One of the easiest ways to start your plan is by visualizing what you want your financial future to look like. With the help of a financial professional, you might then come up with the necessary steps in your plan to help you get there.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by WriterAccess.

LPL Tracking #1-05376140

Footnotes

1 How To Prepare For Retirement Through Visualization https://www.businessinsider.com/prepare-for-retirement-through-visualization-2011-4

2 Visualize your way to a better retirement https://www.cbsnews.com/news/visualize-your-way-to-a-better-retirement/

You often hear people discuss “saving for retirement,” but in many cases, they’re actually referring to their investing. The adage “you can’t save your way to wealth” is simplistic, but has a kernel of truth; putting your money in a savings account often won’t be enough to outpace the rate of inflation, which can erode the value of your savings over time. Below, we discuss some of the key differences between investing and saving and how to choose the most optimal course of option for you.

Saving: A Low-Risk Way to Set Aside Funds for the Future

Saving is just a method to set aside money for future use, whether you’re putting it into a general “emergency fund” or earmarking it for a new vehicle, a home down payment, or medical expenses. You can keep savings in a checking account, a regular or high-yield savings account, a certificate of deposit (CD), or even certain types of government bonds.

Investing: Putting Your Money to Work for You

Investing, on the other hand, involves putting your money into financial instruments like stocks, bonds, exchange-traded funds (ETFs), and mutual funds. Investing is riskier than saving, but can also earn higher returns over the long term. Even accounting for recessions and depressions, the S&P 500 (composed of the U.S.’s 500 largest companies) has averaged just over 11 percent per year in returns since 1980.1

Investing can be one of the most efficient ways to reach your long-term financial goals like paying for a child’s college education, purchasing a home, or retiring. For example, if you’re saving $100 per week toward your retirement and keeping it in a savings account earning a minimal amount of interest, you’ll have about $52,000 in 10 years. If you instead invested this money and achieved an average 10 percent annual rate of return, you’d have around $82,500 in a decade. This is more than a $30,000 increase in value over regular savings.2

Differences Between Saving and Investing

One of the key differences between saving and investing is the security of your funds. Savings is low-risk and low-reward, meaning that over time, you won’t earn enough in interest to overcome inflation, but you also won’t risk losing your initial funds.

With an investment, you have the opportunity to have a double-digit rate of return over time; but if you’re investing in an individual stock and the company goes bankrupt, your funds are gone.

This means it’s a good idea to seek some degree of balance. You’ll want to keep an emergency fund or any money you expect to use over the next couple of years in a low-risk account, like a savings account or CD. This will ensure the money is there and accessible whenever you need it.

But for longer-term funds, like retirement funds, it can be helpful to try and get ahead of inflation by investing these funds in the stock market. You can invest in whatever you’d like, from conservative bond funds to an aggressive growth portfolio. A financial professional can work with you to assess the best investments based on your risk tolerance, desired asset allocation, and retirement timeline.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments. All indexes are unmanaged and cannot be invested into directly.

Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal and potential illiquidity of the investment in a falling market.

An investment in Exchange Traded Funds (ETF), structured as a mutual fund or unit investment trust, involves the risk of losing money and should be considered as part of an overall program, not a complete investment program. An investment in ETFs involves additional risks such as not diversified, price volatility, competitive industry pressure, international political and economic developments, possible trading halts, and index tracking errors.

Investing in mutual funds involves risk, including possible loss of principal. The funds value will fluctuate with market conditions and may not achieve its investment objective. Upon redemption, the value of fund shares may be worth more or less than their original cost.

Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.

CD’s are FDIC Insured and offer a fixed rate of return if held to maturity.

S&P 500 Index: The Standard & Poor’s (S&P) 500 Index tracks the performance of 500 widely held, large-capitalization US stocks.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by WriterAccess.

LPL Tracking #1-05376140

Sources:

1 “Stock Market S&P 500 Returns Since 1980,” https://www.officialdata.org/us/stocks/s-p-500/1980

2 “Compound Interest Calculator,” https://www.investor.gov/financial-tools-calculators/calculators/compound-interest-calculator

Every year, around 3 million Americans are required to evacuate their homes due to a natural disaster.1 What’s more, this figure does not include the millions of other individuals who are temporarily displaced as a result of fire, flood, or other damage to their homes.

Do you have the documents you need if you find yourself required to vacate your residence suddenly? Do you know how to get in touch with your financial providers? Do you know how to get a new driver’s license? Do you have a way to access lines of credit? These and other questions may be answered by having a financial first-aid kit to use during an emergency.

Here are five items you want to keep in a safe place as your financial first-aid kit.

Contact Information for Financial Service Providers

In a disaster, you may not have reliable internet access, which might make it tough to track down contact information for your bank, homeowner’s or renter’s insurance company, credit card companies, and other lenders. Without a way to easily get in touch with these providers, especially lenders, you may not be able to make your scheduled payments—putting you at risk of financial harm.

Keep an updated list of contact information (including phone numbers and websites) for the financial service providers you interact with regularly.

Originals (and Copies) of Identification

Having your driver’s license, passport, Social Security card, and birth certificate (even copies) in one spot is useful if you are required to prove your identity. Some disasters may require you to evacuate for months. If you need to apply for government aid, like FEMA, you need some way to show that you are who you say you are.

Current Insurance Policy Information

Having insurance information handy is invaluable if you need to make a claim—from damage to your home or auto after a natural disaster to hotel costs associated with an evacuation. By having your insurance company’s contact information and copies of your policies handy, you are able to answer questions and assess your insurance coverage.

Property Ownership Records

Having your insurance information and property ownership records may make disaster claims easier for homeowners. Instead of relying on a government agency (which may also be in the natural disaster zone) to confirm ownership, you should be able to prove it yourself.

Inventory and Appraisal Records for Personal Property

If you have valuable personal property, it is a good idea to have this property itemized on a document in digital and printed format. This itemization may be as simple as a hand-written list of personal property or a series of photos; you could also create a video inventory by walking through your home, naming and pointing out certain items. Having this information on hand might make it easier to prove damages in an insurance claim and help get the appropriate value for your lost or damaged items.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by WriterAccess.

LPL Tracking #1-05374523

Footnotes

1 Disasters Displaced More Than 3 Million Americans in 2022 https://www.scientificamerican.com/article/disasters-displaced-more-than-3-million-americans-in-2022/

During turbulent financial times, having a financial emergency plan might provide you with a proverbial life preserver. Whether it is an emergency fund to help you tackle an unplanned expense, insurance to cover an unexpected accident or disaster, or a “go bag” that contains all your most important records, organizing your finances may help you feel prepared to handle anything that might come your way.

However, this financial preparedness does not come naturally. In fact, only about two-thirds of Americans could cover an unexpected $400 expense.1 Here are some of the most crucial steps you may take to work on financial preparedness.

Create an Emergency Savings Account

Having some cash set aside for emergencies or unplanned expenses may help you avoid going into debt when disaster strikes.

If you do not think you have the ability to save, start with a small amount. Even as little as $10 per week may add up to more than $500 by year-end. Consider cost-saving strategies like canceling or downgrading subscription services, using coupons, or taking on a part-time gig—then banking your money earned as savings.

Eliminate Debt

Every dollar you pay toward interest on debt is a dollar you are not able to spend on something else—or add to your emergency savings account.

If you have high-interest debt like credit card debt, payday loans, or auto title loans, and you are not in the position to afford to repay them immediately, investigate any lower-interest options that you may find. Those with moderate to good credit may qualify for a low-interest or no-interest balance transfer offer. This strategy may allow you to transfer a high-interest debt into a lower-interest debt, helping your payments go further toward paying off the principal balance.

Review Your Insurance Coverage

Even the most-wealthy households might have a challenge covering the cost of a life-changing emergency, such as a fire, flood, or natural disaster that destroys your house or an auto accident that results in severe injuries. It is important to have adequate insurance to manage risk and provide a source of funds if you are in a serious situation. Check your insurance policies regularly to determine if you have sufficient coverage for the unexpected.

Secure Important Documents

If your home caught fire today and you had to escape quickly, would you have the money and documentation in your possession to start rebuilding? Keep your most important documents—birth certificates, passports, Social Security cards, insurance policies, and financial statements—in a waterproof, fireproof container you may easily grab in an emergency. You may also want to keep some cash in a safe location in case of a power outage or other emergency when ATMs are not working.

This information should make it easier to contact your insurance company, make any claims for disaster relief funds, or take the other steps you need to move forward.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by WriterAccess.

LPL Tracking #1-05374528

Footnotes:

1 Most Americans do not have a penny of emergency savings, survey finds — use these 5 techniques to build a safety net

https://finance.yahoo.com/news/most-americans-dont-penny-emergency-110000942.html?

Are you a football fan? If so, you understand the significance of an audible call at the line of scrimmage and how sometimes you are also forced to call an audible in life. Modern football has evolved since the late 19th century when Walter Camp at Yale University first pushed the idea of a quarterback receiving the ball from someone at the line of scrimmage. Over the years, players and referees have had to adapt to changes in the rules and new technologies. Flexibility and being able to adapt quickly are crucial skills that can help you navigate many aspects of your life, including financially. When it comes to emergency preparedness and planning, we often think about small steps taken over a long period of time. For example:

Creating a budget and reviewing it regularly

It not only helps you prepare for unexpected market fluctuations and changes to your life that impact you financially, but also, doing so can provide you with an idea of how much money you can comfortably put aside for emergencies. Football coaches have backup plays and players to use when their initial plans are challenged. Things inevitably happen in our lives, forcing us to call a financial audible. Being prepared can help to mitigate financial stress.

Saving $10 –$20 a week in a separate emergency account

Many people feel they are living paycheck to paycheck and can’t afford to save anything. Putting $10 or $20 in an account now and then might not seem like much, but money accumulates over time. Sit down and review your spending. You might be surprised at how much money you spend on non-necessities. Consider making sacrifices, like eating out less, and put that money toward an emergency fund. An emergency fund can allow you to call a life audible should you face unseen challenges. Football teams don’t have just one play; they have a playbook and many plays they can use should the first or second not be feasible. The playbook in football is the emergency account they can dip into if needed. Having a little nest egg is also helpful should you find yourself short on money when it comes time to pay your debt minimums.

Focusing on reducing your debt

One of the biggest financial stressors we have in life is debt. Paying debt is important because if you stop paying your debts, you could lose your car or home, or damage your credit. It would help if you also considered the late charges and accruing interest when it comes to paying debt. Significant debt can seem nearly impossible to get out of. However, you can work to put those debts behind you with a manageable strategy, steady payments, and discipline. A financial professional can help you with various techniques, including debt snowball or avalanche methods, so you can try to get on top of loans, especially those with high interest. They can also provide guidance on dealing with student loan repayment and the variety of ways you can pay those back.

Reviewing your credit and ensuring nothing is lowering it

Having and maintaining good credit is crucial to living a financially confident and independent life. Keeping your credit where it should be requires paying your bills and debts on time, living within your means, and reviewing your credit report periodically to ensure nothing on it is driving the score down. Solid credit also helps when you are forced to call a life audible. People with good credit can get lower-interest loans, credit cards, and mortgages while managing their financial objectives.

Consult a financial professional

Being willing to change with the times and understanding when to make critical decisions can benefit you, both in football and life, especially during a volatile market or game. When dealing with your finances, seeking the guidance of a financial professional can help you create strategies, design payment schedules, learn the most efficient budgeting method for your lifestyle, and keep you prepared should you wake up tomorrow and have to call an audible.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This script was prepared by LPL Marketing Solutions

Sources:

Walter Camp | Biography, Football, & Facts | Britannica

LPL Tracking # 1-05375121

Even before your children can count, they already know something about money: it’s what you have to give the ice cream man to get a cone, or put in the slot to ride the rocket ship at the grocery store. So, as soon as your children begin to handle money, start teaching them how to handle it wisely.

Making Allowances

Giving children allowances is a good way to begin teaching them how to save money and budget for the things they want. How much you give them depends in part on what you expect them to buy with it and how much you want them to save.

Some parents expect children to earn their allowance by doing household chores, while others attach no strings to the purse and expect children to pitch in simply because they live in the household. A compromise might be to give children small allowances coupled with opportunities to earn extra money by doing chores that fall outside their normal household responsibilities.

When it comes to giving children allowances:

• Set parameters. Discuss with your children what they may use the money for and how much should be saved.

• Make allowance day a routine, like payday. Give the same amount on the same day each week.

• Consider “raises” for children who manage money well.

Take it to the Bank

Piggy banks are a great way to start teaching children to save money, but opening a savings account in a “real” bank introduces them to the concepts of earning interest and the power of compounding.

While children might want to spend all their allowance now, encourage them (especially older children) to divide it up, allowing them to spend some immediately, while insisting they save some toward things they really want but can’t afford right away.

Writing down each goal and the amount that must be saved each week toward it will help children learn the difference between short-term and long-term goals. As an incentive, you might want to offer to match whatever children save toward their long-term goals.

Shopping Sense

Television commercials and peer pressure constantly tempt children to spend money. But children need guidance when it comes to making good buying decisions. Teach children how to compare items by price and quality. When you’re at the grocery store, for example, explain why you might buy a generic cereal instead of a name brand.

By explaining that you won’t buy them something every time you go to a store, you can lead children into thinking carefully about the purchases they do want to make. Then, consider setting aside one day a month when you will take children shopping for themselves. This encourages them to save for something they really want rather than buying on impulse. For “big-ticket” items, suggest that they might put the items on a birthday or holiday list.

Don’t be afraid to let children make mistakes. If a toy breaks soon after it’s purchased, or doesn’t turn out to be as much fun as seen on TV, eventually children will learn to make good choices even when you’re not there to give them advice.

Earning and Handling Income

Older children (especially teenagers) may earn income from part-time jobs after school or on weekends. Particularly if this money supplements any allowance you give them, wages enable children to get a greater taste of financial independence.

Earned income from part-time jobs might be subject to withholdings for FICA and federal and/or state income taxes. Show your children how this takes a bite out their paychecks and reduces the amount they have left over for their own use.

Creating a Balanced Budget

With greater financial independence should come greater fiscal responsibility. Older children may have more expenses, and their extra income can be used to cover at least some of those expenses. To ensure that they’ll have enough to make ends meet, help them prepare a budget.

To develop a balanced budget, children should first list all their income. Next, they should list routine expenses, such as pizza with friends, money for movies, and (for older children) gas for the car. (Don’t include things you will pay for.) Finally, subtract the expenses from the income. If they’ll be in the black, you can encourage further saving or contributions to their favorite charity. If the results show that your children will be in the red, however, you’ll need to come up with a plan to address the shortfall.

To help children learn about budgeting:

• Devise a system for keeping track of what’s spent

• Categorize expenses as needs (unavoidable) and wants (can be cut)

• Suggest ways to increase income and/or reduce expenses

The Future is Now

Teenagers should be ready to focus on saving for larger goals (e.g., a new computer or a car) and longer-term goals (e.g., college, an apartment). And while bank accounts may still be the primary savings vehicles for them, you might also want to consider introducing your teenagers to the principles of investing.

To do this, open investment accounts for them. (If they’re minors, these must be custodial accounts.) Look for accounts that can be opened with low initial contributions at institutions that supply educational materials about basic investment terms and concepts.

Helping older children learn about topics such as risk tolerance, time horizons, market volatility, and asset diversification may predispose them to take charge of their financial future.

Should You Give Your Child Credit?

If older children (especially those about to go off to college) are responsible, you may be thinking about getting them a credit card. However, credit card companies cannot issue cards to anyone under 21 unless they can show proof they can repay the debt themselves, or unless an adult cosigns the credit card agreement. If you decide to cosign, keep in mind that you’re taking on legal liability for the debt, and the debt will appear on your credit report.

Also:

• Set limits on the card’s use

• Ask the credit card company for a low credit limit (e.g., $300) or a secured card to help children learn to manage credit without getting into serious debt

• Make sure children understand the grace period, fee structure, and how interest accrues on the unpaid balance

• Agree on how the bill will be paid, and what will happen if the bill goes unpaid

• Make sure children understand how long it takes to pay off a credit card balance if they only make minimum payments

If putting a credit card in your child’s hands is a scary thought, you may want to start off with a prepaid spending card. A prepaid spending card looks like a credit card, but functions more like a prepaid phone card. The card can be loaded with a predetermined amount that you specify, and generally may be used anywhere credit cards are accepted. Purchases are deducted from the card’s balance, and you can transfer more money to the card’s balance whenever necessary. Although there may be some fees associated with the card, no debt or interest charges accrue; children can only spend what’s loaded onto the card.

One thing you might especially like about prepaid spending cards is that they allow children to gradually get the hang of using credit responsibly. Because you can access the account information online or over the phone, you can monitor the spending habits of your children. If need be, you can then sit down with them and discuss their spending behavior and money management skills.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal professional.

LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.

LPL Tracking #1-919179

Retirement planning is a constantly evolving process. Strategies that may have worked fine a few years ago may no longer be the optimal direction to continue. Your life may have taken unexpected turns, you may have different retirement goals you now wish to achieve, or you’ve realized your previous investments may not be working as well as anticipated to help you reach your financial goals.

Now is the time to consider a ‘retirement re-education’ by reviewing your retirement plan and overall strategies to see if they still align with your greater plans and goals.

Evaluating Your Current Plan

When sitting down to review your current retirement plan, you may want to:

• Check your current investments: Markets have seen significant fluctuations throughout the years, so it is crucial to observe if your investments remain on track to get you toward your retirement goals. Make sure fund percentage balances are still appropriate and that your portfolio is well-diversified and in line with your current situation and future plans.

• Check for contingencies: Ensure you have protection in place should the unexpected occur. This can start with insurance policies addressing long-term care, disability, and even death. You also want to ensure proper medical coverage to avoid being responsible for major medical expenses.

• Ensure your retirement plan is tax-efficient: Seeking tax benefits will help you find ways to minimize taxes in your retirement portfolio. This focus can include placing taxable investments into tax-deferred accounts.

• Evaluate changing family needs: If you have experienced recent adjustments in your family’s situation, consider how those changes can affect future finances and if any adjustments need to be made.1

Why You May Need to Revise Your Retirement Plan

Giving your retirement plan a once-over every couple of years is generally a good practice, but there may be situations when revising it sooner may be more urgent. Reasons to consider a revamp include:

• Life event changes: If you have had significant life event changes, such as a new marriage, a divorce, a serious illness, the birth of a child, providing for step-children or grandchildren, or the death of a spouse, you may need to make significant changes to your retirement plan to realign with your new future goals.

• Lifestyle changes: Moving to a new state, having significant changes in housing and related costs, or considerable health changes all may warrant a change in direction with your retirement goals.

• Dramatic economic fluctuations: If domestic or global financial conditions have become unpredictable or there have been significant market fluctuations recently, it’s smart to review possible effects on your retirement investments. Economic situations that may prompt an urgent review include rising or falling interest rates, inflation, recessions, and significant Social Security changes.1

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risks including possible loss of principal.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by WriterAccess.

LPL Tracking #1-05372230

Footnotes

1 5 Ways To Adjust Your Retirement Planning Annually, Forbes, https://www.forbes.com/sites/nextavenue/2020/03/05/5-ways-to-adjust-your-retirement-planning-annually/?sh=4110847f52af

What does the term “financial freedom” mean to you? For some, it means freedom from a particular workplace or industry. For others, it means the opportunity for an early retirement or the ability to start a long-desired business. Consider these three strategies that may help investors pursue financial independence on this Independence Day.

Start Early

The power of compounding might be significant—the more you invest sooner, the longer there is for the compounding effect to help. In general, having more time invested in the market helps manage day-to-day volatility and possibly major recessions. If your retirement is not for another 20 or 30 years, a recession may be good news for your investments, as it may allow you to invest funds in long-term assets at historically-low prices.

Accurately Assess Your Risk Tolerance

Suppose your investments lose 40% of their value; what might you do? Are you content to let them ride (after researching the stability of the underlying assets), or would you be tempted to go to cash for a while?

Everyone’s risk tolerance is different. It is crucial not to invest beyond your tolerance. For some, this means an aggressive portfolio that includes mostly stocks. For others, this may mean bonds, Treasurys, and other assets. There is no wrong answer, but forcing yourself to invest more than you are comfortable with or in assets you are not comfortable with could set you up to make unwise knee-jerk decisions the next time there is market volatility.

Build Your Desired Portfolio

Many investors subscribe to the “lazy” portfolio method—a set-it-and-forget-it mix of index funds or exchange-traded funds (ETFs) that follow a particular index. For example, many ETFs and index funds follow the major market indices, including the Dow Jones, the NASDAQ, the S&P 500, and the Russell 2000. By investing in these broader funds, you might diversify your portfolio without the effort of researching, picking, and following individual stocks.

There are several advantages to the lazy portfolio approach, including:

• Instant diversification

• Relatively low fees

• Simplicity

Though you need to monitor your investments regularly, you do not need to research particular stocks or companies in-depth to feel confident about the investments. The major market indices automatically rebalance—for example, if a company underperforms and no longer has the market cap requirements for the S&P 500, it is cycled off the list and replaced with a new company.

Your financial professional works with you to evaluate your risk tolerance and then can help you choose a basket of assets for your portfolio.

Important Disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments. All indexes are unmanaged and cannot be invested into directly.

An investment in Exchange Traded Funds (ETF), structured as a mutual fund or unit investment trust, involves the risk of losing money and should be considered as part of an overall program, not a complete investment program. An investment in ETFs involves additional risks such as not diversified, price volatility, competitive industry pressure, international political and economic developments, possible trading halts, and index tracking errors.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.

Dow Jones Industrial Average (DJIA): A price-weighted average of 30 blue-chip stocks that are generally the leaders in their industry.

The NASDAQ-100 is composed of the 100 largest domestic and international non-financial securities listed on The Nasdaq Stock Market. The Index reflects companies across major industry groups including computer hardware and software, telecommunications, retail/wholesale trade and biotechnology, but does not contain securities of financial companies.

S&P 500 Index: The Standard & Poor’s (S&P) 500 Index tracks the performance of 500 widely held, large-capitalization US stocks.

The Russell 2000 Index is an unmanaged index generally representative of the 2,000 smallest companies in the Russell Index, which represents approximately 10% of the total market capitalization of the Russell 3000 Index.

This article was prepared by WriterAccess.

LPL Tracking #1-05370165

If recent market volatility has you questioning your opportunities for financial freedom, you are not alone. Due to rising inflation, higher interest rates, a volatile stock market, and recession fears, many investors find themselves wondering how to proceed.

Fortunately, history may help gain perspective on this market. Those who weather volatility might have more resilience. Here are some tips and tricks to help you deal with market volatility and assess the quality of your current investments.

Your Emotions are Real, Just Not Valid as Investment Guidance

• Selling a stock that has dropped in value, only to see its value rise afterward.

• Sitting out of the market entirely during a recession and then beginning to invest again only after asset values rise, missing the chance to invest during the lows.

• Using the “you only live once” (YOLO) 2 strategy to invest (gamble) everything in the new hot penny stock or cryptocurrency.

If you avoid the temptation to tweak your investments when asset values rise, adjusting them during a market downturn may not be a good idea. However, market volatility may sometimes reveal weaknesses in an investment plan or suggest a different asset allocation. Working with a financial professional to outline your risk tolerance, desired asset allocation, and investment timeline to create a managed portfolio for both bull and bear markets might be helpful.

Ultimately, it can help if you have a portfolio that allows you to sleep at night, no matter what the market is doing. For some, this may mean holding a substantial cash balance. For others, this may mean investing in index funds instead of picking stocks. Whatever approach you select should help you mitigate investment anxiety and allow you to hold on for the long term. By being proactive and planning your investments before you face a crisis, you may better manage reactive decisions that might harm your portfolio in the long run.

Important Disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments. All indexes are unmanaged and cannot be invested into directly.

Asset allocation does not ensure a profit or protect against a loss.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by WriterAccess.

LPL Tracking #1-05370157

Footnotes

1 What FAs need to know about behavioral science in finance https://www.bcgbenefits.com/blog/behavioral-science

2 From YOLO to diamond hands, here are 9 pieces of lingo you need to learn before diving into Wall Street Bets https://markets.businessinsider.com/news/stocks/reddit-wall-street-bets-lingo-guide-glossary-yolo-diamond-hands-2021-5-103045077

Being a small business owner can be rewarding but also may bring a lot of stress. You may be experiencing the pressures of trying to grow your company while providing a solid future for your employees. On top of all that, you will also need to focus on building financial independence for yourself and for your business. There are many paths to financial independence; below are a few directions to get you started.

Optimize Your Current Assets

One of the first steps toward financial independence is optimizing your current assets. This could take the form of increasing the profitability of your business by increasing your marketing, reducing your current costs and expenses, finding ways to reduce your tax burden, or continuing your education. You will need to take an inventory of your current assets and expenses and develop a strategic plan to optimize these factors and help your company reach its potential.1

Pay Down Debt

There are two primary types of debt: productive and reductive. Productive debt is debt that helps nurture your financial growth and puts you on the path toward financial freedom. Reductive debt, on the other hand, is debt spent on items that will depreciate in value and not provide boosts to revenue or income. It is similar to credit card debt, and eliminating or at least reducing it can put you and your business on a path toward overall independence. Assess all of your debt and develop a plan to pay it down aggressively until it is eliminated.1

Beef Up Your Savings

Savings are vital for yourself and your business since they will help you build wealth and financially prepare you for unexpected expenses. One way to increase savings as a business owner is to take advantage of your company’s savings plans. This can include IRAs, 401ks, and health savings accounts. You may also want to look at the various investment options for your personal and company funds that can create long-term returns.2

Give Your Insurance the Once Over

While growing company assets is crucial to achieving solid financing, so is insuring them. Without proper insurance, you risk losing what you’ve gained through your hard work. Review your insurance policies to make sure that you not only have all of your assets covered but that you have proper coverage limits. Policies you should consider reviewing include life insurance, disability, business, long-term care, health, and property and liability coverage.2

Follow the above tips to put yourself on the path to financial independence. Assistance from a financial professional can assist you in your wealth management efforts and overall financial goals.

Important Disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) or insurance product(s) may be appropriate for you, consult your financial professional prior to investing or purchasing.

Investing involves risks including possible loss of principal.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by WriterAccess.

LPL Tracking #1-05370165

Footnotes

1 “The 4 x 4 Financial Independence Plan for Entrepreneurs,” Entrepreneur.com, https://www.entrepreneur.com/leadership/the-4-x-4-financial-independence-plan-for-entrepreneurs/306064

2 “How Entrepreneurs Can Safeguard Their Financial Futures—And Work Toward Financial Freedom,” Forbes, https://www.forbes.com/sites/forbesbusinesscouncil/2023/02/14/how-entrepreneurs-can-safeguard-their-financial-futures-and-work-toward-financial-freedom/?sh=123c28f17a65

Golfing and investing may not seem to share much common ground at first glance. But the more you think about it, a successful golfer and a successful investor share a number of traits such as patience, perseverance, attention to detail, and intellectual curiosity.

Below, we discuss a few areas investing and golf have in common—as well as a couple of tips you can use to make sure your investing game is as successful as your golf game.

One Bad Shot Can Ruin Your Game

Even if you make it to the 16th or 17th hole while staying well under par, just one triple-bogey can put you back at square one. Similarly, one bad investment can wipe out a major chunk of your balance sheet. This is one reason it’s a bad idea to invest in a single stock or asset—diversification is key.

The More Information, the Better

You wouldn’t take a swing while blindfolded—so why would you invest in assets you aren’t familiar with? The more information you can obtain about your investments, the more comfortable you’ll be in making investing decisions. Don’t invest in a new asset without first considering the potential consequences. Remember, every dollar you have invested in one asset is a dollar you can’t invest somewhere else, so choose wisely.

Consider Your Appetite for Risk

Golfing requires a number of risk-assessment decisions—to try to escape a sand trap or take a drop, or to attempt a difficult shot on the off chance you’ll make it. But if you’re consistently playing (or investing) beyond your risk tolerance, you could find yourself disappointed in the results. Instead, consider the risks you’re willing to take and make sure they’re compensated ones—that is, risks that have a reasonable chance of turning out in your favor.

While outcomes are important, in a diversified portfolio, the rise or fall of an individual investment shouldn’t be more than a blip on your radar. Because individual investments can be fickle, especially when chosen seemingly at random, creating an investing system and sticking to it can increase your likelihood of positive future outcomes.

Important Disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

LPL Tracking Number 1-05367404

For kids, teens, and college students, summer break often represents freedom from schedules, responsibilities, and all those other drains on your time. Retirement actually can provide a similar level of freedom, but only if you’ve adequately prepared, planned, and saved. Below, we discuss three ways that planning ahead for your retirement can be like scheduling your summer.

Deciding What to Do

After spending decades at a 9-to-5, you may struggle to find ways to fill your time after retirement. Just like summer break, a couple of weeks of well-deserved decompression may turn into boredom.

It’s important to have a plan to transition into retirement. Whether this means having a list of vacation destinations, a hobby to turn to, or an organization to volunteer with, giving yourself some options can help you remain active and engaged instead of simply vegetating.

Deciding Where to Go

Many new retirees spend a lot of time traveling now that they no longer need to worry about coming back to a pile of work or rationing a limited number of vacation days. As you spend time traveling during your working years, take note of the destinations you’d like to return to.

Planning for retirement in general can look a lot like planning a vacation: you’ll need a budget, a destination, a timeline, and a Plan B. More than just longer vacations, retirement may also mean traveling to a new home – whether downsizing, moving closer to family, or even heading to a senior living community.

When considering next steps, especially if debating an interstate move, take into account factors like:

• The way your state treats and taxes retirement income

• Whether the setup of your home allows you to “age in place”

• Access to amenities

• Access to necessities (like grocery stores and hospitals)

• Transportation options

• Cost of living

By keeping these factors in mind, you’ll be able to find the best fit for your lifestyle now and in the future.

Deciding How to Pay For It

How do you afford your current lifestyle? What expenses do you expect to lose in retirement – and which ones might you gain?

Just like planning a vacation, planning how you’ll fund your retirement can be an intricate process with many moving parts. Having a financial professional at your side can help streamline matters.

Your financial professional will probably help you work backward to create your retirement financial plan. This planning can begin by evaluating how much your retirement lifestyle will cost, then figuring out how much income you’ll need to afford it. By looking at sources such as 401(k), IRA savings, a pension, Social Security, and taxable savings, your financial professional will scour all your potential areas of income and help you figure out the most tax-efficient way to fund your retirement.

Retirement planning can take time and effort – but just as you wouldn’t embark on the vacation of a lifetime without doing a bit of preliminary research, you also don’t want to leap into retirement without a plan.

Important Disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

LPL Tracking # 1-05367403

Both offer valuable lessons from those who have come before you

The Masters golf tournament and successful investing may seem like two completely different worlds, but they share many similarities in terms of tradition. Both have established practices that have stood the test of time, and both require a combination of skill, strategy, and patience to succeed. Let’s take a closer look at the traditions of the Masters golf tournament and how they compare to the traditions of successful investors.

Traditions Matter

One of the most well-known traditions of the Masters is the Green Jacket. The winner of the tournament is presented with a Green Jacket, which has been awarded to every champion since 1949. Similarly, successful investors often have a signature item or practice that sets them apart. For example, Warren Buffett is known for his simple lifestyle and preference for Coca-Cola, while Peter Lynch famously suggested investing in what you know.

Another tradition of the Masters is the Champions Dinner. The previous year’s winner hosts a dinner for all past champions, where they select the menu and are given the opportunity to share stories and advice with the current competitors. This tradition emphasizes the importance of learning from those who have come before you, which is also a key aspect of investing. Veteran investors often share their experiences and knowledge with younger investors, providing them with valuable insight and guidance.

The Augusta National Golf Club, where the Masters is held, is known for its pristine condition and attention to detail. From the perfectly manicured fairways to the meticulously maintained flower beds, every aspect of the course is designed to be visually stunning. Similarly, successful investors pay close attention to detail when researching potential investments. They scrutinize financial statements, study market trends, and conduct thorough due diligence before making a decision.

Another tradition of the Masters is the Par 3 Contest, a light-hearted competition held the day before the tournament. This tradition shows that even in the midst of intense competition, it’s important to take a step back and have fun. Similarly, successful investors know that investing can be a serious business, but it’s also important to enjoy the process and not become too bogged down in the details.

Finally, the Masters is known for its exclusivity. Only the best golfers in the world are invited to compete, and only a select few are ever invited to become members of Augusta National Golf Club. Similarly, successful investors often seek out exclusive investment opportunities that are only available to a select group of investors. This exclusivity can often lead to higher returns and greater prestige.

Traditions Matter

While light-hearted, it is easy to see that the traditions of the Masters golf tournament and investing share many similarities. Both require skill, strategy, and patience to succeed, and both emphasize the importance of tradition and learning from those who have come before you.

By understanding and embracing these traditions, both golfers and investors can build confidence and work towards leaving a lasting legacy.

Important Disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

This article was prepared by FMeX.