It’s the most wonderful time of year. The holiday season is upon us, and no matter what festivity you participate in, there is a good chance that you might once again watch the timeless Dr. Seuss classic, The Grinch Who Stole Christmas. It is not just a fun Christmas story that has stolen our hearts since 1957; it is a story packed with life and business lessons that we can apply to our lives.

What makes this story so poignant is not just the antagonist (The Grinch) trying to ruin the hopes and joys of the protagonists (the Whos) but the transformation of good over evil, positivity over negativity, and the realization that it is the collection of small things you do in pursuit of a bigger goal. Here are five business lessons we can steal from the Grinch:

1. Creating goals and formulating a plan

The prickly and cranky Grinch lives in a cave on a mountain that looks down upon the town of Whoville, where the cheerful and fun-loving Whos live. Every Christmas, the Whos celebrate with songs, toys, and festivities. This Christmas Eve, the Grinch has finally had enough and decides that he is going to stop Christmas from coming. The Grinch has created a goal.

He then plans to disguise himself as Santa Claus, travel down the mountain to town, and steal the presents, food, and Christmas trees from each house in Whoville. The Grinch set a goal for himself, formulated a plan, and executed it. The same strategy applies to individuals in the business world. Setting goals and creating plans provides a direction and a map of how to work toward the end result.

2. Thinking while under pressure

While the Grinch is in one house, a young Who, Cindy Lou, interrupts him in the act cramming the Christmas tree up the chimney. The Grinch is forced to think on his feet and out of the box to escape the situation. Despite being caught red-handed, a moment that would leave some people frozen and tongue-tied, the wily Grinch is able to think on his feet, replying to the young Who that a bulb on the tree is broken.

He is taking the tree to fix the bulb, and then he will “return it right here.” In this case, the Grinch wasn’t being honest, but he could pursue his goal by thinking on his feet under pressure. In business, you have to be able to think on your feet and often under pressure. Just make sure to always be honest!

3. Attention to detail

The Grinch’s attention to detail in the story is quite remarkable. He takes literally everything representing Christmas for the Whos, going so far as to take a crumb off the floor. Attention to detail is a skill that helps with time management, accurate reporting, the management of workloads and day-to-day responsibilities, and other important aspects of business.

4. Don’t get tunnel vision

The Grinch had a big goal and a heart three times too small. He would steal Christmas this year so the Whos couldn’t enjoy the holiday. He formulated a plan and carried out a tremendous feat by sneaking into Whoville in the middle of the night and stealing all the presents, stockings, food, and toys from every house and took all the goodies on his sleigh to the top of Mount Crumpit to be thrown into the abyss. When the Whos woke up, they would find out that Christmas was gone.

The Grinch expected them to be as miserable as he was, but instead of crying over material things, they joined hands and sang joyful songs. In a remarkable transformation, the Grinch, hearing the Whos singing, realized that there was more to Christmas than what he stole, and his heart grew three times bigger.

Instead of being stuck in his tunnel vision of damage and destruction, he returned to Whoville and gave the Whos back their property. The Grinch changed from having a small cold heart to a large warm one. This significant moment of learning and growth shows us that we should never get too hung up on any one idea. Be willing to observe and evolve with the changing world around you.

The lessons we learn in business and out in the world that can be applied to business may influence our financial decision-making. We often think we are knowledgeable when it comes to our financial goals and what we need to do to align our actions to reach these goals. However, the business world is complex, regularly changing, and there are so many moving parts moving simultaneously. Getting the help from a financial professional can be very beneficial when it comes to making decisions that affect your business or financial strategy. Although he’s a mean one, even the Grinch would agree.

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.

Sources:

9 How The Grinch Stole Christmas Part 1 Low mpeg2video – YouTube

This article was prepared by LPL Marketing Solutions

LPL Tracking # 492996

Giving Tuesday is a day to extend the goodwill that the holiday season may bring to help others. With so many in need, the holiday season is a reminder to help those less fortunate. Whether you want to donate your time or contribute funds to your favorite cause, there are many ways to celebrate the day. Here are some ways to mark the occasion.

Donate to a Food Bank or Shelter

Food banks are always in need of donations. Give your pantry a once over to see items you could donate, or go to the store and take advantage of any holiday sales to find things to donate. You may also consider items that local shelters need, such as clothing and personal care items. If you don’t have items to donate, consider offering a few hours of your time volunteering.

Give Blood

Hospitals and blood banks are always in need of donations. The winter months tend to make the need even more pronounced. Contact your local American Red Cross or area hospital to inquire how to get started or when the next blood drive is.

Pay it Forward

Giving Tuesday is the perfect chance to pay it forward to others. If you are in line at the drive-thru, you might pick up the cost of the next person’s order. You could also pay for someone’s meal when you are out to eat or donate money to pay off some school lunch debt. If you know of someone struggling, contact the utility company to pay one of their bills. These anonymous and random acts of kindness go a long way to brightening someone’s day and showing them that someone cares.

Build a Donation Station

Create a donation station to place in your front yard. Stock it with items you think that people in the neighborhood may need. Items may include winter clothing, canned goods, books, and even cleaning products. Let people know it is free to all, and those looking to donate anonymously may leave items as well.

Get into the spirit of giving this holiday season by celebrating Giving Tuesday with one or more of these ideas.

LPL Tracking # 1-05187459

Sources:

It’s ‘Giving Tuesday Now.’ Here’s how to make a difference — even if you don’t have any money, NBC News, https://www.nbcnews.com/better/lifestyle/it-s-giving-tuesday-now-here-s-how-make-difference-ncna1199681

How to Participate in GivingTuesday, Giving Tuesday, https://www.givingtuesday.org/united-states/ideas/

Thanksgiving is a holiday for spending time with loved ones, being grateful, and perhaps enjoying a bit of overindulgence. There are many financial lessons to be had in planning, preparing, and celebrating this annual feast.1 Here are four Thanksgiving lessons that might help your household’s financial plan year-round.

Planning is the Key to Preparation

You cannot expect to whip together a flawless Thanksgiving meal if you do not begin planning and preparing at least a few days in advance. Similarly, you cannot put together a strong budget and financial plan if you do not know where your money is going or if you do not plan for expenses before they occur. Track your expenses for a few months using a budgeting app or even the old-fashioned method of using a pen and paper to see what you are working with.

Balance and Moderation are Crucial

Just as overindulging in turkey, ham, or heavy side dishes may leave you feeling groggy and lethargic for the rest of the day, overindulging in spending might leave your budget in a mess.

One way to cut your monthly outflow with little impact is to go through your budget with a fine-toothed comb and eliminate any expenses not currently adding significant value to your life. Could you put a monthly subscription on pause? Do you really need an extended warranty on a high-quality item? By rigorously evaluating what your regular expenses contribute to your life, you may make cuts of nonessential items and then be able to indulge where it matters.

Plan for More Than You Need

When planning a Thanksgiving meal, preparing more food than you think you might need is probably a good idea. Not only may this help ensure you have enough for any extra guests who might show up, but this method also allows you to send leftovers home with guests. In the budget context, building in some extra wiggle room when estimating expenses may help prevent falling short at the end of the month.

Money is Important, But Not the Most Important

As the saying goes, “Money isn’t everything,”—and this is never truer than at Thanksgiving, when time spent with loved ones is paramount. Even if you have ample financial resources and a healthy budget, if you do not have those human connections, you may still struggle to identify a sense of purpose. While you are working on your financial plan, be sure to work on your relationships as well. Enjoy your Thanksgiving holiday with friends and family by using these tips and then take a hard look at your financial plans. It may help to work with a financial professional when reviewing your assets, expenses, retirement plans, and other financial goals to have a balanced approach to budgeting and expenditures. Always be grateful for what you have and take good care of yourself.

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 #1-05377994

Footnotes

1 Put Thanksgiving Lessons to Work in Your Financial Plans https://tulsaworld.com/put-thanksgiving-lessons-to-work-in-your-financial-plans/article_9aa3dff1-6a5b-5dc5-ac2a-164a9c02a6e7.html

Charitable giving is an excellent way for businesses to help others while taking advantage of additional tax breaks. Billions of dollars are given each year in the U.S. to a wide range of charities providing valuable community services. While large corporations may be responsible for a large portion of the donated funds, small businesses also make a large impact with their contributions.

3 Ways Small Businesses Can Donate to Charities

While cash donations are one of the most common ways to give to charities, small businesses may also provide support in other ways.

1. Volunteering

Instead of donating money, your business will be able to make an impact by donating their time to a local charity, such as a soup kitchen or homeless shelter.1

2. Host a Charity Drive

If you see a need in their local community, consider helping by starting a drive to collect needed items, such as a holiday toy drive or canned food drive.1

3. Take Advantage of Local Sponsorship Opportunities

Local youth organizations and groups are often looking for sponsorship. Consider sponsoring a sports team or local community event. You will also get a little advertising and community goodwill out of your involvement.1

Tips for Small Business Giving

While there are no set rules on how or how much you should give to charity, below are a few helpful tips to help your business get started.

Find a Cause That is Meaningful to Your Company or Employees

All types of charities are looking for support, which means it is easy to find one that resonates with your business culture and employees. This way, you will be more personally connected to your contribution, which will mean something to you and your employees.2

Research Charities You Are Interested In

Take some time to learn about the different charities you may wish to contribute to. Through some research, you will be able to find out how much of the contributions go into their programming, what kind of services they provide to the community, and the impact your donation may have. This will give you a clearer picture of how you are helping through your contribution.2

Build a Relationship With Your Chosen Charities

Even if you only contribute to your charity once a year, you want to stay connected and find out other ways you are able to assist throughout the year. This is a great way to stay connected with your community, network, and build relationships with other businesses.2

Get Your Employees Involved

Have your employees volunteer with the charity or offer contribution matching for employees who donate independently. This will help your employees connect with the charity and provide the charity with much-needed assistance throughout the year.2

It is important to remember that every dollar counts for charities, so even if your business only contributes a small amount, it will still be making a huge impact on the community.

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.

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 #1-05377994

Footnotes:

1 “Small Business Guide to Charitable Giving and Tax Deductions,” Business News Daily, https://www.businessnewsdaily.com/10470-small-business-guide-charity-donations.html

2 “Six Best Practices For Small Businesses To Give Charitably,” Forbes, https://www.forbes.com/sites/krisputnamwalkerly/2018/12/17/6-best-practices-for-small-businesses-to-give-charitably/?sh=60dcdffa2c98

As we approach the last quarter of each year, it is a good time to plan for the next one. Year-end planning is especially important for existing retirees and those hoping to retire in the next few years. There are tax and income strategies you might consider regarding your financial assets. Here are three steps you may take when planning the end of the tax year and preparing for the next one.

Consider Tax Loss Harvesting

Suppose you hold equities, with unrealized losses, in an account subject to tax. In that case, you may be able to sell these equities and harvest the tax loss to balance out any realized gains made from other stocks. Harvesting only works when the procedure is completed within a single tax year.

For example, if you are sitting on a loss in one stock, you may sell it and also sell a better-performing stock with the same amount in long-term gains without triggering a tax event. This technique may lower your tax liability by using these two assets to offset each other instead of just paying taxes on the one with a gain.

Be aware of the wash-sale rule that prevents the deduction of certain capital losses from an investor’s capital gains. The wash-sale rule applies when an investor sells equities at a loss and within 30 days before or after the sale date, bought or buys another equity that is substantially the same. A wash-sale occurs if a person’s spouse or a substantially controlled company buys an equivalent security.3

After enough time passes, you may avoid the wash sale rule. Then, you may buy back into the lower-performing stock if you like.2 Unless that stock had a massive recovery during the time that you did not own it; you may be able to enjoy any long-term appreciation in its future value by starting over again at a lower cost basis.

Rebalance Your Asset Allocation

In retirement, it may be helpful to review both your risk tolerance and your asset allocation. As some assets increase in value while others remain stagnant or drop, your actual asset allocation may begin to stray from the goals for your portfolio. This circumstance may require some rebalancing, such as selling overperforming funds and buying back underperforming ones. Also, evaluate the future of these sectors with your investments to see whether other investments may be a better fit for your needs.

Update Your Income, Health Care, and Emergency Expense Plans

A low-stress retirement may hinge on having access to a stable source of income, such as an annuity, a pension, or rental or other passive income. Without this, you may be at risk of major market fluctuations occurring just when you need to withdraw some cash. The end of the tax year may be a great time to revisit your income plan for the next year. Consider whether to set aside additional funds for healthcare-related expenses and evaluate how you would pay for an emergency. By having a plan in hand, you may be able to weather whatever the next year may bring.

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.

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

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.

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

1 https://www.morningstar.com/articles/1045559/q2-2021-market-performance-in-7-charts

2 https://www.forbes.com/advisor/investing/tax-loss-harvesting/#

3 https://www.investopedia.com/terms/w/washsalerule.asp

This article was prepared by WriterAccess.

LPL Tracking #1-05218932

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.

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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

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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.

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