My friends often joke that I was looking forward to retirement from when I started working in 1979. With my initial IRA deposit of $1,500 in 1980, I was on my way.
Do You Know the Game You’re Playing?
During my sabbatical, I read a book by Simon Sinek, “The Infinite Game,” which was published in 2019 and inspired by James Carse’s 1986 book on game theory titled “Finite and Infinite Games.”
In the books, finite and infinite games are described in this way:
A finite game is played to win, like baseball or golf. The players are known, the rules are set, and the endpoint is defined.
What Caused the Inflation We've Been Experiencing?
Inflation is all everyone has been talking about for two years. Inflation reaching 40-year highs has wreaked havoc on consumers' wallets and caused market uncertainty.
The inflation story in 2021 was propelled forward by supply chain disruptions following the shutdown of the economy due to the COVID stay-at-home orders. This broad statement of supply chain disruptions expands to the physical transportation of products and a shortage of workers and materials
Social Media & Financial News Detox
Would you believe it if someone told you that you could improve sleep, reduce stress and anxiety, and boost your mental well-being by reducing social media and news intake? About four months ago, I decided to conduct a self-experiment where I reduced the time spent on social media apps and watching news channels.
Follow a Disciplined Approach to Investing
“Optimism sounds like a sales pitch. Pessimism sounds like someone trying to help you.” -The Psychology of Money, Morgan House.
I was having dinner with friends in December of 2018, and at the time, the markets were in the middle of a 20% drawdown. While we were out, one of my friends met an acquaintance of his who happened to be a Sales Representative for one of the large Wall Street brokers. I was happy to listen to his perspectives on the markets.
Economic Cycles as a Shakespearean Tragedy
Shakespeare wrote ten dramas, each with a different story and cast of characters. However, his tragedies follow the same five-act formula: Exposition, Rising Action, Climax, Falling Action, and Resolution. Every play, movie, and television shows from Shakespeare's time to today follows the same five-act sequence. Our culture's art and entertainment reflect our innate expectations of the hero's rise, fall, and resolution. Likewise, our expectations for the economy and financial markets are no different.
Student Loan Forgiveness
U.S. college tuition costs have skyrocketed over the last few decades, leading to an unprecedented number of students needing to finance the burden through student loans. As of August 2022, student loan borrowers owed a collective nearly $1,750,000,000,000 in federal and private student loan debt, with the average borrower owing $28,950.
Using The Scientific Method for Financial Planning – Equity Compensation
Leonardo DaVinci wisely said, "Study the science of art. Study the art of science. Realize that everything connects to everything else." Financial planning integrates art and science through a dynamic process. The art is subjective and experienced while exploring goals and aspirations and making decisions. The science is objective and visible in the tools to develop projections analysis.
Can the Yield Curve Predict Recessions?
Our brain constantly monitors for signs of threats and triggers emotional responses to avoid them. The most primitive part of our brain controls the instinct to prevent hazards. This basic survival instinct attaches a high probability to any piece of data forecasting anything. Like the weather forecast, human beings expect predictability regarding the economy and the stock market. However, forecasting should not be considered a prediction.
Building Homes and Financial Plans
On September 8th, HIGHLAND dedicated a Day of Service to Habitat for Humanity, contributing to constructing five new homes in the heart of Paterson, NJ. The whole team showed up at 7:45 AM, ready to make a difference in a small spot on the planet. Habitat for Humanity helps people to become homeowners by providing affordable, adequate housing. The concept of "partnership housing" was started in central Georgia in the early 1970s by farmer Clarence Jordan and Milliard and Linda Fuller and gained global recognition when President Jimmy Carter got involved in 1984. Today Habitat for Humanity operates in all 50 states and 70 countries.
New Tax Law Impacting Required Minimum Distributions (RMDs) Starting in 2022
As the well-known saying goes, nothing can be said to be certain except death and taxes. The idea of taxation can be traced back to 3000-2800 BC when the first known taxation system took place in Ancient Egypt. Since then, there have been many changes and additions to the tax laws, with one point remaining certain; no one wants to receive a large tax bill that they weren't expecting.
The Investment Story of 2022
The first half of 2022 has been a disappointing year for every investor. At the close of Q2 2022, a 60/40 hypothetical portfolio comprised of the S&P 500 Index and Barclays US Aggregate Bond Index was down over 12%. What's been the driving force behind these investment returns, and what can we expect moving forward?
Equity Compensation and Delayed Gratification: Do you have a Plan for When Your Options Vest?
Walter Mischel, psychologist and professor at Stanford University conducted an experiment in the 1960s about delayed gratification and published his findings in 1972. In the study, a researcher explained to a child they could either have one marshmallow immediately or two marshmallows if they waited 15 minutes.
College Planning for Children of Divorcees: The Importance of the Term “Custodial”
True Confessions of a Financial Advisor
As of Friday, the 29th of July, except for the NASDAQ market, the US equity markets recovered somewhat from the bear market correction. A bear market is a loss of 20% from the previous high. In the first six months of 2022, the equity market had lost over 80% of what it gained in 2021 and entered a bear market correction.
What is a Recession?
Two weeks ago, the latest Consumer Price Index data (the index that measures inflation) had risen 1.3% in June, bringing headline inflation up to 9.1% and core inflation (excludes energy and food) up to 5.9% over the last 12 months. With increases this large, it’s not surprising to know this has been the most significant 12-month increase since November of 1981. With inflation on the rise, the war in Ukraine, and the stock market in bear territory (when stocks fall at least 20% off their highs), are we doomed for a recession?
Equity Compensation Concentration: When is enough, enough?
3 Tax Blind Spots for Newly Independent Women
Lifestyle Changes for Newly Independent People
Following a significant life event, such as divorce or the loss of a spouse, people face a common question: How will being newly independent affect my family's lifestyle? During this financially delicate period, a decrease in household income, the ability to remain in the family home, and the long-term impact on a person's retirement plan are all top of mind.
