Today’s Smart Money Question:
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Here Are Just A Handful Of Things You’ll Learn:
On this episode of the Smart Money Questions podcast, we want to take you through some recent conversations we’ve had because they touch on some great financial planning topics.
The first is one that’s top of mind across the country. We’ve been hearing from a number of people recently that are worried about the upcoming election cycle. Not only does it feel as divisive as it’s every been, but add COVID into the mix and this feels different for a lot of folks.
The primary question we hear is, “What is the market going to do?”
There are many lessons we can learn from past elections even though this one feels different than anything we’ve seen. But keep in mind that the 2008 election was in the middle of a financial crisis and one party took full control so imagine the worry that was taking place then.
As we address these concerns, Matt will look back at the headlines from past elections as well as revisiting the markets and their reaction. Ultimately though, we want to be aware and have an understanding of what’s happening for our investable money. Hopefully you’re diversifying and preparing for the volatility, which is something we do with our clients.
- Be mindful of the media that will be coming at you.
- Understand your different risk buckets.
The second focus for this episode comes as a result of a phone call we got recently. This person wanted to pick our brain on some financial topics and get an idea of what they needed to do to get their house in order. We felt this was a perfect time to share the steps it takes to get a financial plan started so that’s exactly what we’ll provide you here.
First thing you want to be looking at is income and a budget, and Matt will explain each in detail. The budget breaks down in three ways: bills, lifestyle, bucket list items. Can you afford each of these? Probably not each month so you need to have a plan to save.
Then you need to look at your investment options, especially those retirement accounts through work. Do you have the option 401k or Roth 401k? What about a match? These are key questions to help you determine where to place your contributions, and it’s also important to understand your risk for every option you choose.
After that we’ll look at debt and the options you might have to get rid of it more efficiently. Then we’ll talk about the emergency fund and how much you need to have set aside. There are many different opinions but we’ll tell you what we advise people.
This particular phone call also hit on buying a home and investing in real estate, which are two more big decisions and major expenses you’ll incur as you build that budget. So we’ll tell you about the considerations you have along with some of the biggest concerns when getting involved in real estate as a way to generate income.
This is a busy show but one that we feel can provide a lot of value and information. Feel free to reach out to us at SpeakToMatt.com to discuss any of these topics further.
Listen to the full episode or click on the timestamps below to skip to a specific section.
0:44 – Many people worried about the upcoming election cycle.
4:19 – What is going to happen with the market? Here’s what history tells us.
9:44 – The steps we suggest you take if you’re concerned.
11:59 – A conversation we had last week with someone curious about how they were doing financially.
13:12 – 3 parts to building a budget
14:58 – Understanding your debt.
17:59 – Have an emergency fund
20:31 – Financing a home that you hope to buy
22:07 – Investment options
25:38 – Real estate investing
“If you’ve been invested in the market as I have and many of you for decades, we’ve seen this up and down that has happened during these different election cycles.”
-Matt Hausman
Additional Podcast Episodes:
UPDATE ON CARES ACT AND 401K FEES
LET’S TALK ABOUT RETIREMENT, MARKET SWINGS AND ELECTION FEARS
WHAT YOU NEED TO KNOW ABOUT THE CARES ACT
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The host: Matt Hausman – Contact – Resources – Call: 610-719-3003
