Many folks are feeling as much anxiety about the end of this contentious presidential election as they were feeling during the long months of campaigning. It’s impossible to predict with 100% accuracy what a new president and a new Congress are going to do. That feeling of uncertainty can send out ripples through our financial and political systems until we get a clearer picture of the agenda for the next four years.
As important as elections are, we believe that a solid financial plan gives you the tools to keep improving your Return on Life no matter what’s happening with our nation’s politics. Instead of fretting about what may or may not happen starting in January, try to focus on these three areas of your life that will help you control major transitions.
You can’t control the economy … but you can control your career.
Elections sometimes spark short-term volatility in the financial markets. But the economy is bigger than any one president, especially while Covid-19 continues to change everyday life and global business.
As companies continue to adapt to the pandemic landscape, job opportunities are becoming less centralized and more diverse. You might be able to take your dream job on the other side of the country without leaving the home your family loves. Or you might spot an emerging market in the middle of all this displacement where you can open your own company.
You can’t control taxes … but you can control your saving and spending.
Presidential candidates talk a lot about their tax plans on the campaign trail. The need for Congress’ cooperation to put that plan into action usually isn’t discussed quite as much.
Whether your preferred candidate won or lost, there’s no guarantee that your taxes are going up or down. But you can anticipate when your kids will be going to college, if you’ll need to replace the family car soon, or if you want to move to a beachfront condo when you retire.
Your tax rates will play a role in handling these transitions. But your levels of saving and spending have a bigger impact on your financial plan than any other factor. If you’ve never kept a monthly budget before, make 2021 the year that you start. Sit down with your spouse and weed out all those recurring subscriptions and memberships you’re not using. Make a weekly meal plan so you’re not eating out so often. The couple hundred dollars you economize every month could grow into a comfortable padding for your nest egg over time.
You can’t control who’s president … but you can take control of your financial plan.
Per the clamor on social media, was this really “the most important election of our lifetimes?” It could be decades before we have enough perspective to judge. But as far as your financial planning goes, here’s another way to think about presidents:
A 67-year-old baby boomer eyeing retirement might have taken her first part-time job when Lyndon Johnson was president. As of 2020, that senior has lived and worked through ten different presidents.
It’s very doubtful that you’re going to love every single president who serves during your career. Yes, certain things that each one does might move the needle on your retirement accounts in the short term. But it’s folks who stick to their plans and continue to save and invest regardless of what’s happening in the outside world who build long-term wealth.
Millions of people dream of becoming entrepreneurs, but they never take that all-important first step. Too many things get in the way of their pursuit of business ownership, or they keep convincing themselves that their dream isn’t realistic.
If you ever want to move past this phase and found your own business, you need to acknowledge the specific obstacles that are holding you back and work to resolve them. Here are seven of the most common challenges that may be standing between you and your entrepreneurial dreams—and ways you can kick them to the curb.
1. Financial limitations
Launching a business takes money, and most people don’t have ample cash to throw at a startup. There are several options here. First off, you could begin saving now for the funds to establish your business. If you shop for a better mortgage and reduce your house payments by refinancing, you can sock the savings away in your startup fund. You can trim costs in other areas to put away a few hundred dollars each month or save even more by picking up a side gig.
Barring that, you can secure funding in a variety of ways, such as borrowing from friends and family, crowdfunding, seeking loans and grants or even working with angel investors and venture capitalists. There’s always a way forward.
Becoming a successful entrepreneur typically demands experience; you need to understand your industry and business management in general if you want to earn a living from your venture. When you have limited experience, you may be reluctant to move forward, and understandably so.
You can make up for this, however, by actively seeking the experience you lack. Take an online course to gain a grasp of business management basics. Strive for a leadership position with your current employer so you’ll acquire strategic planning and people management skills. Work with a mentor or shadow an entrepreneur you admire.
3. No standout idea
You can’t build a business if you don’t have a promising idea for a product or service you can sell. Without a solid business plan, you won’t be able to convince investors or partners to join you—and you won’t even know where to begin. Unfortunately, this is one of the least “fudgeable” obstacles on this list. Without a good idea, you can’t start a business, period.
Luckily, there are ways to stimulate better idea generation, such as talking to a broad range of people, reading entrepreneurial content and taking a more robust approach to brainstorming. Techniques like mind mapping and word banking can get your creative juices flowing.
4. Current responsibilities
Some people avoid starting a business because of existing responsibilities or constraints on their time. Their current full-time job, their status as a parent or other personal responsibilities hold them back from their entrepreneurial ambitions.
Here the best approach is to determine how much of an impact these responsibilities have and consider ways to delegate or remove them. Could you realistically quit your day job, for example, or hire someone to help with household duties or childcare?
5. Fear of failure
Lack of confidence is an entrepreneurship killer. It’s true that the failure rate for new businesses is relatively high, with half of new companies failing within five years. To buck those odds, you’ll need a healthy dose of confidence in yourself and your idea.
The only solution to a fear of failure is to change your mindset. You have to see failure as an opportunity for learning and growth and stop seeing it as the end of the road, an indictment of your abilities or a stain on your character. Reading accounts by successful entrepreneurs will inspire you to see the possibilities rather than focusing only on the risks.
6. Aversion to stress or hard work
Starting and running a business demands a lot of effort. You’ll likely be putting in long hours and dealing with stressful issues. On top of that, your first few years are apt to be highly inconsistent, with your business only making a profit some of the time. This can wreak havoc on your finances and peace of mind. If you’re not feeling up to this kind of pressure, or if you’re loath to work more than 40 hours a week, entrepreneurship may not be for you.
Again, the only way around this obstacle is to change your attitude. Remember that all this hard work will be in service to yourself, not an employer. While the risks are on you, so are the rewards.
7. Poor timing
One of the most common excuses you’ll hear (or hear yourself saying) is that it’s “just not the right time” to start a business. The truth is, there’s never a truly “right” time—you can always find some reason that today, or this month or this year isn’t ideal for launching your venture.
But like beginning a diet on a Wednesday or joining a gym in February, the trick is to make your own right time. Microsoft was born during the oil crisis of the 1970s, while Airbnb and Uber were founded in the depths of the Great Recession. Remind yourself that the success of your business will depend not on “the times” but on you.
The Realities of Entrepreneurship
It’s true that anyone can become an entrepreneur with enough grit and persistence. Most entrepreneurs with solid ideas have a good chance of becoming successful if they remain adaptable. But it’s also important to realize that not everyone is cut out for entrepreneurship.
If you’re intimidated by the stress, inconsistency and long hours associated with startup life, or if you truly love your day job and you’re afraid to leave, maybe business ownership isn’t right for you. That said, if you feel the pull of entrepreneurship but keep making excuses to avoid getting started, you owe it to yourself to challenge those excuses and try to move past them.
This article was written by Serenity Gibbons and published on Forbes.com.
Many people I know have concluded that retirement was worth waiting for and worth planning for. Those who planned well (and who are lucky enough to have good health) are generally finding this to be a very satisfying time in their lives. But those who didn’t plan well or who couldn’t save enough are finding that retirement can be difficult.
My commitment is to help people, but this week I’m switching roles so I can give you some dynamite tips for having an unhappy retirement. (Of course, what I’m really advocating is that you do not do these things.)
Don’t save enough money.
Spend (and borrow) whatever it takes to keep yourself and your family happy. You can always catch up later when you get into your peak earning years, when the kids are gone, or when you’re finally finished paying for whatever else is more important right now.
The likely result: You could find yourself in “panic mode” in your 50s and 60s. You could have to work longer than you want. Another popular choice, you could have to reduce your living standards after your work life is through. You could fall prey to persuasive salespeople (see my final tip below) who do not have your best interests at heart. Or maybe even all of the above.
Be careless about how you plan and budget for retirement expenses.
When I was an advisor, I was amazed how many investors neglected to include taxes as a cost of living in retirement. If you’re living off of distributions from a non-Roth IRA or 401(k), the full amount of those distributions is likely to be taxable. For extra credit: Don’t spend any money on a financial advisor to help you plan.
The likely result: You may go into “panic mode” when your accountant hands you an unexpected tax bill.
Lock in your expectations about your life in retirement and make rigid financial decisions.
There are plenty of ways to do this. You could sell your house and move somewhere cheaper even though you don’t know anybody there. Another option, you could buy a fixed annuity to have an income that’s certain. You could fail to establish an emergency fund. (After all, what could go wrong?) You could get sick or need surgery that isn’t covered by Medicare or other insurance.
The likely result: Things will happen that you don’t expect, probably sending you once again into “panic mode” and making you vulnerable to the pitches from all manner of enthusiastic salespeople.
Ignore inflation, since it doesn’t seem like a current problem.
Assume that $1,000 will buy roughly the same “basket of goods and services” in 2026 and 2036 that it will today. Be confident that you know what the future holds. After all, the years of high inflation that are often cited happened a long time ago. Things are different now.
The likely result: You probably won’t be thrust into “panic mode” since inflation is usually gradual. But one day you will realize with a start that things are costing a lot more than they “should,” and your income can’t keep up.
Keep all your money where it’s “safe,” in fixed income.
You’ll have lots of company among current retirees whose “golden” years are being tarnished because they have to rely on today’s historically low interest rates. Don’t just blindly invest in equities, because, as we all know, you can lose money in the stock market.
The likely result: You may start retirement with sufficient income to meet your needs, but those needs will probably increase, especially for health care, in your later retirement years. Your fixed income may be safe, but it won’t expand to meet increased needs.
Attend investment seminars and trust the presenters, then make important decisions without getting a second professional opinion.
You could follow the unfortunate example of a couple I know who, in their 50s, attended a retirement seminar and got some bad advice. They met privately with the presenter/saleswoman, then rolled their entire retirement accounts into a variable annuity. They thought they were giving themselves good returns, future flexibility and saving a lot of money in taxes.
In reality, they gave themselves huge headaches and nearly lost half their life savings. I helped them fight the unpleasant (and ultimately successful) battle to get out of their contract and recover their money.
This couple could teach us all some lessons, but the terms of their settlement makes that unlikely. If they disclose that they got their money back, or if they disclose how they were deceived and cheated, they will have to give the money back to the insurance company.
The likely results: You will be disappointed in the decisions you make. You will have many reasons to never trust an investment sales pitch again. You will have less money in retirement than if you had never heard of that particular seminar.
So now you have it: Six easy steps to ruin your retirement. I hope, of course, that you do just the opposite of each one of these. Unfortunately, I think there’s a high likelihood that somebody you know has fallen into one or more of these traps.
Based on six islands that bring the best of Europe to Dubai, The Heart of Europe is located 2 miles from the coast of Dubai and will offer up a variety of European cultural, dining, and hospitality experiences across resorts, cafés, bars, boutiques, and entertainment. Kleindienst Group developed the $5 billion master-planned tourism island destination that came a long way since its original concept was launched in 2008.
The Covid-19 outbreak may have stopped business on the mainland, but the Heart of Europe islands continued work at an aggressive pace with a goal to open Phase 1 by the end of 2020.
The development will offer “world’s first” attractions such as; the First Underwater Hotel with Gym and Spa, the First Dedicated Wedding Hotel, the World’s First Artificial Rainy Street, the First Floating and Underwater Living Experience and the World’s First Outdoor Snow Plaza.
Phase One opening of The Heart of Europe consists of, Sweden Beach Palaces, Germany Villas, Honeymoon Island, Portofino Hotel, and Côte d’Azur Resort.
THE FLOATING SEAHORSE VILLAS
(3 level villas with underwater living, glass-bottom Jacuzzi, and private man-made coral reefs teeming with marine life)
Connected to Honeymoon Island by jetties, the Floating Seahorse Villas were designed for investors and second home end users. Consisting of over 4,000 square feet with three levels, each will feature state-of-the-art technology and outdoor climate-controlled areas. The ultimate attraction will be the underwater level with exclusive views to the coral reefs.
(15 beachfront villas, 17 lagoon villas, offering four or five bedrooms in Bauhaus inspired style)
The horseshoe-shaped Germany Island will face onto an azure-blue lagoon with its own bar, lush gardens, white sandy beaches and bent palm trees.
There will be traditional German carnivals, Christmas markets, festivals, and the famous Oktoberfest. Famed international chefs will offer up the finest German-style menus as well as the largest selection of German beers and wines.
(10 four-story palaces, 7 bedroom waterfront homes, each ground floor has a gym, sauna and snow room, while on the rooftop there will be a glass-roofed party room)
Sweden Island was inspired by Swedish Viking Vessels and will offer up palaces furnished by Bentley Homes with glass roofs and private snow rooms. The $27 million beach palace was among the first properties to sell out on the island. Restaurants will incorporate Sweden’s famed cuisine, featuring items like sour herring, meatballs, Raggmunkar, toast Skagen, smörgåsbord, Snaps, and Glὃgg.
The unique heart-shaped Maldivian inspired island will be a couples retreat surrounded by Seahorse Floating Villas that will sell up to $5 million each. Next to the island, there is the islands Empress Elizabeth Hotel, the first dedicated seven-star wedding hotel, where couples can celebrate their union overlooking white sandy beaches and crystal clear waters.
Inspired by the floating city, this will be the world’s first underwater resort with dining and accommodations located below the surface. Restaurants, bars, and shops will all be underwater with views of coral reefs and passing gondolas above. Entertainment will be offered from masked carnivals to opera performances.
The resort will have 12 restaurants and bars (three of which are underwater) and an underwater spa.
(Beachfront and lagoon villas, featuring master bedrooms, swimming pools and viewing decks)
Switzerland Island offers villas with water views and access to beaches, a seawater lagoon, and private swimming pools. The villa chalets utilize timber, stone, and glass design. A large blue water lagoon in the center of the island will be reminiscent of the large lakes in Switzerland.
MAIN EUROPE ISLAND / COTE D’AZUR RESORT
The Côte D’Azur Resort comprises of 4 boutique hotels all named after the famous and picturesque cities of Monaco, Nice, Cannes and St. Tropez which are located in the South of France. The 4 boutique hotels will have Suites and penthouses with large balconies offering panoramic sea views.
Monaco will feature French fine-dining with an upscale contemporary décor, high-end fashion boutiques, and a large white sandy beach. There will also be lagoon swimming pools and a replica of the famed Monaco Marina.
(489 Princess and Queen Suites, Rooftop penthouses, Marina and Lobby with 514 aquariums, 6 Italian restaurants & bars, Women’s only social lounge and spa, Olympic size pool with underwater performances and Kids Club)
Designed to look and feel like the Italian city of Portofino, with colorful terracotta buildings, the Portofino Hotel on the Main Europe Island is a family hotel that will feature Italian-style suites with kids rooms, a kids club operated by a leading kids club operator, restaurants and cafes serving Italian cuisine and organic food. The facade will host an extraordinary hanging garden with 31,000 plants.
There are five swimming pools at the resort and even a snow-play area where children can build snowmen. Add synchronized swimming shows for entertainment.
The island will have its own fully-serviced private Paraggi Bay marina where all guests will arrive by boat. The front of hotel employees will speak Italian and the hotel will even accept Euros as currency.
The Heart of Europe will oversee the development of more than 100,000 coral reefs and will also feature centenary Spanish olive trees that were sourced from Andalusia, Spain. The islands will also offer up the world’s first climate-controlled rainy street and snow plaza.
The development will also use sustainable landscaping that will be pesticide-free and fungicide-free, and all green areas will use recycled water. The island will be totally car-free, use clean energy, and will offer sustainable water transportation to the guests. Designed with a zero-discharge policy and zero micro-plastics policy, the developers hope to ensure the protection of the Arabian Gulf and species of marine life that reside around the six islands.
This article was written by Jim Dobson for Forbes.com
Summer travel plans are up in the air right now as federal and local governments sort through the best strategies for keeping COVID-19 under control. Although it’s disappointing to put off a vacation or big family party you’ve been planning forever, there are still recreational options right in your backyard that will get your family outside safely. If you’re starting to reschedule your summer, keep these ideas in mind to make the most out of the months ahead.
No matter where you go or what you decide to do, social distancing is still Rule 1.
The CDC recommends that you and members of your household stay at least six feet away from other people, even in open air. If you visit a public park, avoid group activities or team sports like basketball, soccer, or football that put you in close contact with other people and shared equipment. Avoid public facilities like bathrooms and playgrounds. Hiking trails and taking bike rides are good alternatives.
Also, make sure you bring along a cloth face covering and some hand sanitizer, avoid touching your face, and wash up when you get home.
Find a nearby National Park
According to the National Park Foundation, there are 62 sites in the U.S. that include “National Park” in their name, including such famous destinations as the Grand Canyon and Yellowstone.
But before you load up the camper, keep in mind that the CDC recommends staying close to home. Long-distance travel will require stops to refuel, eat, and use public restrooms, which could expose you and your family to germs – as well as spread your own.
Also, even though parks are technically “open,” many of their public facilities aren’t. That means no restrooms or cafeterias. Maintaining a safe social distance could also be challenging at more popular parks, especially as the weather turns warmer.
If the big parks are outside your radius, our wider National Park System spans 419 sites, including historical battlefields, monuments, nature trails, rivers, and preserves. Take a look at the National Park Foundation’s database. There’s probably an interesting, beautiful spot near you that you’ve never noticed before.
Explore local options
Many state and country parks are open as well, with many of the same restrictions in place. You can take a long walk or bike ride with members of your family, as long as you can maintain safe distance from other folks. But depending on your local health guidelines, playgrounds and public restrooms might still be off limits. Check state and county websites for more information about what facilities are available and plan ahead, especially if you’re bringing children along.
Kids are one reason that your local neighborhood park is still a great option for a day out; emergency bathroom breaks and snack time are a lot easier to manage when your house is just down the block. Neighborhood parks can also be less of a crowding hazard, making it easier for your family to maintain safe social distance.
Of course, that empty playground is more tempting in a small park too. Before you head outside, have an age-appropriate chat with your kids about why they need to stay off public equipment.
REALLY local options
If your home has private yard space, wake up your inner child, especially if you have children of your own. Kids who see their parents really throwing themselves into family time are going to feel a little less anxious and sad about things they can’t do right now.
When you’re not working or teaching, leave your phone inside and make this family time special. Plan a treasure hunt. Lead a backyard yoga session. Organize a family soccer game. Plant flowers together. As the weather improves, move inside activities outside, like meals, story time, and board games.
Finally, use the space available to you to embrace some of the simplicity that this situation has created. Hang up a hammock or set up some extra reading chairs around the fire pit. One of the reasons we struggle to fill time during quarantine is that rushing through our normal lives makes us feel like we should always be doing something. Older children and adults should take advantage of extra downtime to think, reflect, and be creative.
As part of our Life-Centered Planning process, we’ve talked about how market volatility is a normal part of investing. We’ve also discussed how we’ve structured your investments to “weather the storm” and maintain a comfortable level of income for you and your family during turbulent times so you can avoid knee jerk reactions.
But we also understand that even folks who are armed with this knowledge can get nervous during a market dip. What’s important is that you know how to prevent that initial wave of negativity from leading you to rash decisions that could damage your nest egg much worse than a market correction.
Dr. Martin Seay is a specialist in positive psychology, which focuses on strategies that people can use to improve their sense of well-being. Dr. Seay’s ABCDE method can help you work through your reactions to distressing financial news and arrive at a positive outcome.
Let’s walk through an example of how to use this method to avoid making a bad, emotion-based financial decision.
A. Activating Event
Sometimes stress and anxiety can feel all-encompassing. Dr. Seay believes it’s important that we pinpoint the event that triggered our negative feelings.
So, while you might feel general anxiety about your finances, drill down a little deeper. Is your job secure? OK. Are you saving and investing according to your financial plan? Good.
Did you just read on social media that today’s market correction was “THE BIGGEST ONE-DAY DROP IN HISTORY!”
Ahh, there it is. Let’s move on to the next step.
Market volatility can rouse some of our worst instincts about investing. We might fall back on long-buried Beliefs like, “This game is rigged!” We might feel like we’ve entrusted our financial future to powers beyond our control.
As you work through this step, it’s important to ask yourself where your Beliefs come from. Have you been unsettled by widespread media coverage of major financial problems, like the 2008-2009 housing crisis? Have you had negative interactions with the finance industry in the past? Perhaps one of your parents distrusted the markets or made a poor investment that had a negative impact on your family.
Figuring out why you believe what you believe about the markets can help alert you before you fall back into bad financial habits.
Panicked investors who can’t shake negative Beliefs about the markets often make poor decisions during downturns. They think they need to “get out fast” to avoid more negative Consequences, like further losses.
Ironically, cashing out your investments during a market correction usually leads to far more serious Consequences in the long run.
So how can you stay focused on the big picture?
Start by using what you know to push back a little against what you Believe.
For example, we’ve discussed in our meetings that the historical, long-term trajectory of the financial markets has been to rise over time. And now, market averages such as the Dow Jones Industrial Average are near all-time highs. Therefore, when the market does have a temporary drop, we might say, “The Dow was down x hundreds of points today.” It sounds like a big number, but as a percentage, it may just be normal volatility.
We’ve also discussed that “market timing” strategies usually just don’t work. That’s why your portfolio is diversified, balanced, and strategically rebalanced as necessary. Decades of market history have shown that sticking to this type of investment strategy may be more effective – and stable – than trying to jump in and out of the market based on what’s happening in the news right now.
Today’s losses are really just a kind of “tax” that you’re paying on the wealth we’re helping you build for tomorrow.
It’s amazing how just reminding ourselves of what we know to be true can make us feel better about a negative situation. Hopefully at the end of this process, you feel a renewed sense of positivity about this present moment and your financial future.
But we understand that market volatility can be complicated. And as you’re nearing retirement, a downturn can be downright nerve-wracking.
So if you need help walking through your ABCDEs the next time the market corrects, make an appointment to meet with us. We’ll run through the important facts you need to know and decide what moves, if any, we need to make to keep you on track with your financial plan and avoid those costly knee jerk reactions.