A Confident Financial Future | Spending > Income

WHAT NOW?: Many of the couples who come to us are looking for a continuity plan that answers the question: “What happens when the spouse who managed the money is gone?”

When was the last time you asked this question? And did both you and your spouse feel confident in the actual answers? If you haven’t had this fire drill conversation before, here is a quick list of questions to get you started:

For legal and financial questions, who should you call? (advisor, insurance contact, estate planner, etc.)
What life insurance is in place?
What would your income plan be? Would anything have to change? (From daily life up to things like college or retirement)
Do you know who has the complete, documented picture of your financial life? Do you feel comfortable enough to ask them any questions?

If you haven’t thought this through yet, or if you just want a second set of eyes on your financial situation, we’d love to sit down with you and your spouse.

SPENDING > INCOME: A recent survey confirmed our perspective and sighted 40% of US households earning $500k/year are living paycheck to paycheck. Let that sink in! Isn’t it interesting how much the media focuses on annual household income? In our experience, we’ve learned that spending level impacts financial success more than income level. A common fallacy too many believe: “when I make $_____ more money, then I’ll be happy, content, save, or give more.”

TAX BURDEN BY STATE: Per WalletHub, 13.3% of Hawaii’s personal income goes to state and local taxes (property taxes, individual income taxes, and sales & excise taxes), making it the most tax-burdened state, followed by New York. We work with investors all across the U.S. Are you relocating or considering a move now or in the future? If so, start the tax planning conversation with us.

DEFINE “HOME COUNTRY BIAS”: It’s the tendency for investors to disproportionally invest in their domestic stocks. Yes, we believe in the long history of American exceptionalism, but America is <5% of the global population and around 60% of common global stock indices. We see too many portfolios that are 90-100% invested in just US stocks. YTD returns remind us of the importance of global diversification.

THE PROBLEM WITH BUSY: NYT bestselling author recently posted about his addiction to being busy. What if our goal was effectiveness and not busyness? What do you think?

THE WORLD IS PULLING FOR YOU: Whether it’s the recently released Mumford and Sons album, Prizefighter, or one of our favorite books, Theo of Golden, making things is hard, but the world is grateful. Check out this wisdom from singer-songwriter Marc Scibilia.

*The views expressed represent the opinions of Compass Ion Advisors, LLC, as of the date noted and are subject to change. These views are not intended as a forecast, a guarantee of future results, an investment recommendation, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial, or legal advice or service to any person. The information contained has been compiled from sources deemed reliable, yet accuracy is not guaranteed.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website here. Past performance is not a guarantee of future results.