Plan For Uncertainty

Unfortunately, turning the calendar past 2020 hasn’t erased all the problems that we’ve been facing for the past year. If feelings of uncertainty and anxiety are starting to get between you and your 2021 goals, use this three-step process to plot a better path forward and plan for uncertainty.
  1. (Re)Identify your purpose.

A big reason that so many New Year’s resolutions and goals fail this time of year is that they weren’t clear and actionable. In other cases, some folks get so caught up in the positivity of a new year that they set too many targets that aren’t important enough to follow through on.

If you’ve lost sight of your annual objectives, take a moment to refocus and reassess the goal you were so excited to achieve at the beginning of the year. Did you aim too high at something you can’t realistically accomplish? Did you aim so low that you aren’t really motivated anymore? Are external events such as financial market fluctuations and COVID-19 clouding your perspective on what you can and cannot do?

When so many things feel beyond our control, it’s important to refocus on what you can control and plan for uncertainty. Use your recalibrated expectations for 2021 to home in on one or two goals that will make this year a success.

  1. Make a microplan.

So, you’ve decided this is the year you’re going to start saving for a new home, in anticipation of a big 2022 move? That’s a good goal! But what you don’t have yet is an actionable plan. If you just tell yourself, “I’m going to spend less every month and put more into a dedicated savings account,” it’s likely you won’t be happy with that account balance at the end of the year.

Microplanning is a strategy that can help you break down annual goals into actionable short-term steps.

Let’s say your dream house is $400,000. A typical down payment for a new house is around 6%. Assuming you can cover mortgage payments, your big Annual Goal is to have an extra $24,000 saved by December.

That breaks down to a Monthly Goal of $2,000 saved for your new house. Where is that $2,000 going to come from? A pay raise from a new job? Cutting some monthly budget items?

Once you’ve adjusted your monthly budget and cash flow, you can set a Weekly Goal that will help you hit that Monthly Goal. How much extra money can you save if you only carry out dinner once per week? Could planning meals in advance reduce your weekly grocery bill?

Finally, dig a little deeper and think about some Daily Goals that will flow upstream to your bigger goals. Do you really need that shiny item that’s the Daily Steal on your favorite shopping site? If not, swipe over to your banking app and make an extra deposit into your savings account instead.

  1. Anticipate problems and solutions.

Now that you have a vision for what you want to happen, make a list of some things that could slow your progress towards your big goal, and how you might be able to clear those speedbumps.

Will your annual savings goal be able to sustain a sudden financial emergency, such as an auto repair?

If a COVID-19 spike makes you nervous about going to your local gym, do you have an at-home regimen that will keep you on track for your fitness goals?

If the pandemic has slowed by summer, increased demand for travel could drive up costs. Should you increase your  family vacation budget as a contingency?

As we plan for uncertainty we are trying to anticipate what might be around the bend, using the cornerstone of our Life-Centered Planning process. To gain some clarity on your goals and your path through this uncertain year, schedule a meeting or a virtual chat with one of our advisors.

For more resources, be sure to check out our  YouTube page. 

Apple Becomes First U.S. Company Worth More Than $2 Trillion

Apple hit a new milestone on Wednesday, becoming the first publicly traded U.S. company to reach a market capitalization of over $2 trillion and doubling in valuation over the last two years.

KEY FACTS

The iPhone maker’s stock is up almost 55% so far in 2020, and shares have rallied more than 106% since the market hit a low point amid the coronavirus recession on March 23 (compared to the benchmark S&P 500’s gain of 51% over that period).

Now trading at nearly $470 per share, Apple’s stock is at an all-time high, and Wall Street analysts are still quite bullish that it can continue to rally: 61% give it a “buy” rating and 27% a “hold” rating, according to Bloomberg data.

Apple’s market cap now eclipses that of other U.S. tech giants, including Microsoft ($1.7 trillion), Amazon ($1.6 trillion), Google parent Alphabet ($1.1 trillion) and Facebook ($761 billion).

Apple was also the first U.S. company to reach a $1 trillion market cap, which it did just over two years ago, on August 2, 2018.

On July 31, 2020, after reporting strong third-quarter earnings, Apple surpassed Saudi state oil giant Aramco to become the world’s most valuable publicly traded company.

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While Saudi Aramco surpassed a $2 trillion valuation in December 2019, plunging oil prices amid the coronavirus pandemic have since hurt its stock.

SURPRISING FACT

At $2 trillion, Apple’s market value is now higher than the GDP of numerous developed countries, including Italy, Brazil, Canada, Russia and South Korea, to name a few.

WHAT TO WATCH FOR

Apple shares are about to get more affordable for investors, too. The company will finalize its four-for-one stock split at the end of August, which means a single share will be worth around $117. While the value of the company will remain the same, there will now be more shares available trading at lower prices.

KEY BACKGROUND

Apple has thrived during the pandemic, as many people were forced to stay at home. The company has benefited from work-from-home trends and strong online sales; It posted record third-quarter earnings in late July, with nearly $60 billion in revenue, not to mention double-digit growth in its products and services segments.

This article was written by Sergei Klebnikov for Forbes.com

What Businesses Can Expect From the Phase 4 Stimulus Package

Congress is set to begin negotiations on the next round of stimulus. For business owners, new measures could bring more tax relief, renewed access to forgivable loans, and more.

With prior stimulus measures set to expire in the next few weeks and the economy continuing to falter as the pandemic resurges across the country, Congress will meet this week and next to hammer out a new relief measure. 

The House already passed its Phase 4 bill, known as the Heroes Act, in May. The $3.5 trillion coronavirus relief bill would provide assistance to state and local governments, extend enhanced unemployment benefits, and offer additional economic impact payments to taxpayers, among other things. The bill has been up for review since the end of May, though Senate Republicans, who prefer a measure with a far lower price tag, have been loath to consider it. They’re expected to introduce their own version of a relief bill this week that will have to be reviewed and negotiated between the two chambers before theyrecess in early August.

Several economic proposals that will affect small and midsize businesses have been building consensus among lawmakers for weeks, so the final version of the Senate bill could contain elements of all of them.

Here are six things you likely can expect from the Phase 4 bill.

1. The PPP will go on, but in a different form.

The Paycheck Protection Program, the $669 billion forgivable loan program aimed at beleaguered small businesses, will continue, predicts Neil Bradley, the U.S. Chamber of Commerce’s executive vice president and chief policy officer. At the very least, he says, there will be a continuation of the program, which was recently extended through August 8.

It’s also possible the PPP will become more targeted. Testifying at a House Small Business Committee hearing Friday, Treasury Secretary Steven Mnuchin expressed interest in “topping off” the approximately $130 billion in remaining funds and extending the program. But he noted that it would need to be focused on certain industries like hotels and restaurants that can demonstrate actual losses, resulting from the pandemic. “This time we need to do a revenue test,” he said. 

A proposal that has been gaining ground with lawmakers, dubbed the Prioritized Paycheck Protection Program Act, or P4, offers to extend the PPP and open it up to companies that already received PPP loans (excepting for publicly traded companies), as long as they can show financial losses as a result of the pandemic.

There’s been widening support for streamlining the PPP forgiveness process, too. While certain loans are now eligible for the EZ loan forgiveness application, there’s greater interest in easing things further for smaller businesses by automatically forgiving all PPP loans under $150,000 or $250,000. On that note, Mnuchin at Friday’s Small Business Committee meeting confirmed interest in blanket forgiveness. “Yes, that’s something we should consider,” he told lawmakers.

2. Local communities will get a boost.

The next iteration of relief funding likely also will focus on companies in low-income and rural areas, as well as minority-owned businesses, which experienced difficulty accessing the PPP. Bradley notes that the Recharge and Empower Local Innovation and Entrepreneurs Fund (RELIEF) for Main Street Actwould earmark $50 billion for cities, counties, and states to support small business local relief funds. One of the key flaws of the PPP is that it failed to reach the smallest businesses and minority-owned companies that often did not have traditional banking relationships prior to the pandemic. As this program would be run through local institutions–and not banks–the effort is seen as potentially better suited to reach these businesses. While the U.S. Treasury would operate the program, as written in the bipartisan bill introduced in the Senate in mid-May, banks would not be involved.

Funding for block grants, operated by states and local governments, could also get replenished. The Cares Act initially provided $150 billion in federal aid to state and local governments across the country, some of which went toward grant funding for local business. 

3. More tax relief is on the way.

Currently, PPP funds don’t count as taxable income, but an Internal Revenue Service ruling prevented businesses from being able to deduct traditional business expenses paid for by those funds if forgiven. That may change soon. A bill that would allow the deduction with some guardrails, called the Small Business Expense Protection Act, was introduced in the Senate in early May.

The Phase 4 bill also is expected to bolster and expand access the Employee Retention Tax Credit (ERTC), says Bradley. Currently, companies that have tapped the PPP can’t access the ERTC, which was enacted as part of the Cares Act to incentivize businesses hurt by the Covid-19 pandemic to retain employees. As part of a proposal, dubbed the Jumpstarting Our Businesses’ Success Credit (or JOBS Credit) Act, which was introduced in May, the refundable tax credit–now equal to 50 percent of up to $10,000 in qualified quarterly wages–would increase to 80 percent of up to $15,000 in wages each quarter for up to three quarters. Bradley adds that there’s also potential for the ERTC to expand eligible expenses to include a limited amount of fixed costs.

4. Stimulus checks will be back but they may be less generous.

The Heroes Act passed by the House supports another round of stimulus checks that the Cares Act authorized in March for millions of taxpayers: individuals earning under $75,000 would get $1,200, while married couples with less than $150,000 in adjusted gross income would get $2,400. The bill also would provide an additional $1,200 for up to three dependents, regardless of age. 

Senate Republicans are likely to take a more conservative approach to the payments. Last week, White House economic adviser Larry Kudlow said the next round of stimulus checks may be less than $1,200, while Senate Majority Leader Mitch McConnell (R-KY) in early July stated the next round of stimulus checks may be limited to those with incomes of around $40,000.

5. Enhanced unemployment benefits will continue, but get a haircut.

The Cares Act’s enhanced unemployment insurance, which offered an additional $600 per week on top of existing state benefits, is set to expire at the end of July. Many employers found the measure complicated the task of rehiring employees, who were suddenly earning more on unemployment than at their former jobs.

To avoid that issue–but also ensure laid off or furloughed workers have support–Bradley says that lawmakers are considering more targeted subsidies that would vary the amount offered on a federal level to better coordinate with what’s available at the state level. So between the variable federal supplement and those provided by each respective state, unemployment benefits would replace 80 to 90 percent of a worker’s former wages, up to a maximum federal benefit of an additional $400 per week.

The enhanced benefits also may come with a hiring bonus. The Paycheck Recovery Act, proposed in mid-May, offers low-wage workers–those earning less than $40,100 annually–a $1,500 rehiring bonus upon returning to work.

6. Businesses will receive greater liability protections.

Senate Majority Leader Mitch McConnell has made no secret of his desire to see greater liability protections for employers. The details of his approach are still unclear, though Bradley says it’s likely that the Phase 4 bill will allow for some form of safe harbor for companies that make good-faith efforts to follow public-health guidelines.

This article was written by Diana Ransom for Inc.com

Trump Signs PPP Extension Bill—Giving Small Businesses Another 5 Weeks

TOPLINE

President Trump Saturday signed into law a bill extending the Paycheck Protection Program—an emergency federal loan facility for small businesses struggling because of the pandemic—for another five weeks until August 8, buying Congress time to figure out what the next round of aid for small businesses will look like when it reconvenes later this month to hash out more stimulus legislation. 

President Trump Holds Briefing At The White House
U.S. President Donald Trump speaks to the media in the briefing room at the White House on July 2.

KEY FACTS

The PPP was originally slated to close down last Tuesday. 

The Senate unexpectedly approved the new legislation by unanimous consent on Tuesday evening, and the House followed suit on Wednesday. 

Some $130 billion in loan money allocated to the $670 billion program remains unspent. 

When Congress returns from its July 4th holiday recess, it must figure out how to allocate the remaining money and determine the next steps for federal aid to small businesses. 

Treasury Secretary Steven Mnuchin has said that the next round of small business aid will need to be “more targeted” to the specific industries that are struggling the most, like hotels and restaurants. 

Another popular Democratic proposal would allow businesses with fewer than 100 employees to take out a second PPP loan from the remaining funds. 

BIG NUMBER

4.8 million. As of June 27, that’s how many PPP loans had been approved. All in, those loans were worth nearly $520 billion.

KEY BACKGROUND

The PPP was created as part of the $2.2 trillion CARES Act, signed into law by President Trump at the end of March. The $350 billion program provided forgivable loans to cover payroll and overhead expenses for cash-strapped businesses to keep them from folding during the worst of the economic slowdown. After an initial crush of applications and a chaotic rollout period, the PPP ran out of money in just two weeks, prompting Congress to pass more legislation to re-up the facility with another $310 billion. 

This article was written by Sarah Hansen for Forbes.com

Uber is reportedly in talks to buy food delivery firm Postmates for $2.6 billion

Uber is changing tack after acquisition talks with Grubhub fell through by switching its attention to food delivery startup Postmates, the New York Times reports.

Three sources familiar with the matter told the Times that Uber and Postmates were holding ongoing acquisition talks. One of the sources said Uber is offering to buy Postmates for roughly $2.6 billion.

Uber was reportedly in acquisition talks with food delivery startup Grubhub earlier this year, but Grubhub announced on June 11 it was instead merging with European takeaway service Just Eat. Sources told CNBC Uber walked away from the deal over concerns it would attract antitrust scrutiny.

As a much smaller player in the food delivery business, Postmates could be a safer option.

According to analytics firm Second Measure, Postmates makes up a significantly smaller chunk of the US market than Grubhub. Grubhub captured 32% of food delivery sales in 2019, while Postmates made up 10%. Uber Eats meanwhile accounted for 20% of the market.

Antitrust fears are not the only possible reason why Uber may have walked away from Grubhub, various reports emerged that the two firms struggled to agree on a price for the acquisition. Just Eat paid roughly $7.3 billion to acquire the startup.

Uber’s desire to bolster its food delivery service has reportedly been spurred on by the coronavirus pandemic, as demand for taxi services has plummeted while food delivery has skyrocketed.

Two sources told the Times Postmates has also held sale talks with Grubhub and DoorDash over the past year.

Postmates confidentially filed plans for an IPO with the SEC in February 2019, but has yet to go public. Sources told Reuters on Monday that the company is considering reviving its IPO plans due to the boom in food delivery brought on by the pandemic.

Uber and Postmates were not immediately available to comment when contacted by Business Insider.

This article was written on BusinessInsider.com by Isobel Asher Hamilton

Get Away In Your Own Backyard


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.

Stay safe

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.

We know summer travel is just one of many ways that the COVID-19 pandemic has disrupted your life. As our country and our local communities start to reopen, please be safe, and please be in touch if we can help in any way.

How To Understand The Dynamics Of Business Transformation: Three Top-Of-Mind Questions For Every CEO

When the clarion call of transformation is heard in a business, how does talent at different levels of the organization respond? What is top of mind for CEOs, and how does that mirror or differ from how senior vice presidents, department directors and front-line managers think and act?

What’s certain is that clarion call to reimagine and reengineer the business is getting louder. Only 8% of CEOs believe their business model will remain economically viable if the current pace of digitization of their industry continues, according to McKinsey.

This imperative to anticipate market changes, deploy new technologies, and embrace shifting customer and workplace demographics will drive companies worldwide to invest $7.4 trillion on digital transformation over the next three years, IDC forecasts. And the problem, as McKinsey also often reminds us, is that 70% of efforts to implement complex, transformational change will fail. That’s more than $5 trillion down the drain over the next three years if IDC’s estimate is right.

What the 30% get right is the human dynamics of transformation. Human dynamics matter: They are the connective tissue between strategy, outputs and outcomes. Ultimately, they reflect what I call the last-mile challenge of translating a bold idea in a boardroom into practical actions by the front-line teams tasked with the work that will realize extraordinary goals.

Through a series of articles, I’m going to explore how transformation plays out through the layers of a business — by role — and hopefully encourage a little more empathy up, down and across the org chart.

The CEO’s perspective

Let’s start at the top of the org chart with three questions about transformation that should be top of mind for CEOs.

1. How do I get our strategy to the last mile?

You’ll expend much of your energy in a constant conversation at speed and scale with the whole business about why change is necessary, what impact it will have and what teams must do differently. If I had the opportunity to spend 30 minutes with each of the 1,021 people that work at Workfront, I could explain our strategy and key activities and show how their work fits into that picture.

But that’s impractical and inefficient. I need technology to scale-up that iterative conversation, and I need talented front-line managers to ensure tasks reflect strategic priorities. Essentially, you need to increase the cycle time of “formulation communication” — the discourse between you and front-line talent as they try to understand what you’re asking so they can translate goals into actions for their teams.

And you will have to change the medium in which you communicate. I spent four years writing emails and doing town halls about our defining objectives before being encouraged to try videos. I did a series of six videos and the feedback was, “Oh, I didn’t know we had four goals.”

There’s a generation of goal-setting software and collaboration tools like Slack and Teams to harness and match the way people consume information so you can increase the quality and velocity of how your strategy translates to execution.

2. How can I tell if the right work is happening?

In 1975, Steven Kerr of Ohio State University wrote about the folly of rewarding A while hoping for B. Yet 45 years later, businesses are still trying to monitor the work through the lens of performance and pay systems. Do you think you’re going to get to the truth if you require people to communicate the status of work through the systems and conversations that have traditionally been reserved for lizard brain pay-related discussions? You won’t. And it’s not their fault — it’s yours for putting the conversation on the wrong railroad track.

What you really need to establish is whether the work going on day to day is connected to the strategy. You need to extract discussion of individual pay and performance from the fundamental question of whether the right work is happening to deliver your strategy. You need a work performance management system and a people performance management system.

3. Are there enough resources to deliver the strategy?

When your manufacturing capacity is humans, how do you know you’ve got the resources to execute your strategy? How hard do you push the organization?

Unfortunately, CEOs have the potential to run over people in discussions about resourcing. When they need to be told the truth about what’s required to get the job done, sometimes people stay silent (because they don’t feel they can talk back to the boss). What’s really required (and it’s something you need to encourage) is candid dialogue about productivity, resourcing, strategic requirements and the trade-offs that will play out in the decisions you make.

People can do more with better tools and clarity of purpose. But expecting productivity, outputs and outcomes to improve when your team is already running flat out is wishful thinking. And here you’ll see the interdependency of the three top-of-mind questions. If everyone in the discussion understands the strategy and how it connects to the day-to-day work that’s already getting done, then that candid conversation about resourcing is built on a foundation of certainty and clarity. If there’s low-value work that’s crowding out time for strategically important tasks in people’s schedules, that’s the place to start looking for capacity.

Clarity of thought, word and deed sounds like a simple combination for a CEO to get to green on transformation. But you will only succeed with collaborative communications technologies that cut across the complex network of interdependencies that make up the modern enterprise and allow conversations and decisions to flow at speed and scale.

Now, you’d imagine that an SVP would be among the first to align with a CEO’s thinking. But what’s the reality? What’s actually top of mind for SVPs when it comes to managing strategic change? That’s the dynamic of transformation I’ll explore in my next article.

This article was written by Alex Shootman for Forbes.com

A Simple Plan to Achieve More in Life and Feel Good About the Results

a group of coworkers celebrating a big achievement

A Simple Plan to Achieve More in Life and Feel Good About the Results

Mike Desepoli, AskTheAdvisor

We tend to overestimate what we can accomplish in the short-term and underestimate what we can accomplish in the long-term. The frustration that results is one big reason why so many New Year’s resolutions die before Spring.

But if you use these key strategies that are supported by deeply-held values – and science!  –  you’ll set better goals, achieve them, and feel better about yourself while doing so.

Know your values.

Knowing your values can provide real clarity on what you want to achieve in your life.

So ask yourself, what’s important to you? What makes you excited to get up in the morning? What are the passions and interests that fill your time when you’re not working? Who are the people you do those things with?

Another way to explore your values is to try new things. For example, volunteering at your local church or community center might reveal a passion for teaching or philanthropy that you never knew you had. These active experiments can become even more important as you age and start thinking about how you’ll stay happy and engaged in retirement.

Align your goals with your values.

Behavioral scientists have found that achieving goals is rarely a matter of ability or knowledge. For example, a person who wants to lose weight knows that eating ice cream with hot fudge five nights a week is not compatible with weight loss. Yet, the reason they keep downing that ice cream is often due to a lack of motivation. They might feel the immediate pleasure from the ice cream outweighs (no pun intended) the longer-term result of no weight loss, or worse, weight gain.

The more important a goal is to us, the more motivated we are to achieve it. Asking “Why?” can help you align your goals with your values and increase that motivational component:

  • Why should you stop eating ice cream five nights a week? Because I want to be healthier.
  • Why do you want to be healthier? So that I can live a longer and more active life.
  • Why do you want to live longer and be more active? So that I can do more things with my children and grandchildren.

Now we’ve identified core values – health and family – that are tied to the goal. These values will make the goal more important, and more likely to be reached.

Develop an action plan.

Asking “Why?” helps us move our goal-setting to a higher, value-driven space.

Asking “How?” helps us drill down into specific actions we can take to achieve those goals.

“I want to lose weight” is the sort of goal many people set and then abandon. That’s because it’s too unspecific. You can’t just “lose weight” every day until you hit your desired number.

So ask yourself, “How am I going to lose weight?” An answer like, “I’m going to exercise more” is closer, but still not actionable enough.

So how are you going to exercise more? Take a bike ride through your neighborhood every morning? Jog for 30 minutes after work three days every week?

Those are small but solid steps that you can use to develop an action plan. You might even go a little further and join a gym, start a neighborhood walk group, or hire a coach to add an extra layer of accountability and keep you on track. And yes, cut out the ice cream and hot fudge!

Measuring is Motivating.

Whatever goal you set, try to keep score. It could be as simple as pulling out a piece of blank paper and putting a checkmark on it for each day you don’t eat ice cream. We find that the act of keeping score creates its own momentum and can be like a “pat on the back” for a job well done.

Be resilient.

Even a perfectly-set, highly-motivated goal will be challenging. Some lazy Saturday you’ll snooze past your workout. You’ll cheat on your diet. An unexpected home repair might throw off your budgeting goals for the month. But that’s ok! We’re all human. Roll with it that day but then get right back to your plan.

All goals and personal improvements require effort. The grit we need to get over those inevitable humps is its own kind of skill that you can cultivate. Try to push yourself above and beyond your smaller targets. Welcome and accept feedback and criticism that can make you perform better. Prepare yourself to do better tomorrow when your alarm goes off.

And most importantly, stay positive. If your goals truly are aligned with your values, then working towards them shouldn’t feel like punishment. When you experience setbacks, try to embrace them as learning opportunities and adjust your action plan accordingly. And here’s an important piece of advice–when you hit small milestones on your way to big goals, treat yourself. We can all use a little positive reinforcement.

We’re here to help you.

What you aspire to achieve may require a financial commitment. Please contact us and we can discuss your particular situation and see how we can help you get on a faster path to achieving your life’s aspirations.

Sources

https://www.belayadvisor.com/behavior/

https://99u.adobe.com/articles/55219/true-grit-how-to-build-up-your-resilience

Overlooked Keys to Being a Successful Investor

an investor reviews his portfolio of stocks on his smartphone

Overlooked Keys to Being a Successful Investor

Mike Desepoli, AskTheAdvisor

Does investing strike “fear” in you? We once heard somebody say the word “fear” stands for “False Evidence Appearing Real.” That seems to apply to investing. Here’s why.

The stock market makes some people nervous. This can be especially true for young people who grew up during the Great Recession. Not only did these folks see market volatility at its worst, but they also came away with negative impressions about the financial markets in general.

The truth is that the market is neither a one-way ticket to instant riches nor a dangerous game for insiders only. There is risk involved in any kind of investment, but if you understand how the market operates in the long run, then the rewards can be significant.

By understanding the following three important facts about the market, you might be able to turn “fear” into “False Evidence Appearing Real” and not get scared out of letting your money work hard for you in the market.

The market tends to move in long cycles.

The amount of info we have at our fingertips makes it tempting to check in on our investments weekly, daily, or even hourly. As a financial professional, though, we take a much wider view of the markets. And while past performance is no guarantee of future returns, the history of the market continues to trend upwards.

Consider the S&P 500 Index. If we go back and look at all the bull (upwards) and bear (downwards) markets from 1926 to 2017, the average bear lasted 1.4 years and resulted in a 41% loss on average. However, the average bull lasted 9 years, and gave investors a 480% gain on average, according to First Trust.

When volatility strikes, patience is usually a good course of action. Your financial plan is designed to provide for the rest of your life, not for one bull or bear cycle. Instead of panicking when the market dips, try to think of volatility as a tax that investors pay on the wealth that the market can create.

And if you do find yourself checking in on your investments as regularly as you check your email, maybe think about uninstalling that app—or calling us.

Make consistent contributions to your portfolio.

Besides struggling to accept volatility, many people are skittish about the markets because they feel powerless. Money goes in, and decades later, who knows what’s going to come out. They feel that politicians, corporations, and geopolitical tumult will have the final say in how big their retirement nest egg grows.

However, often times the biggest factor that determines the success of your investments is simply contributing new money on a consistent basis. As discussed above, the market will most likely trend upwards in the long run. The more of your money that’s along for the ride, the bigger those eventual gains will be.

For example, suppose that you decide to invest $10,000 every year for 10 years into your portfolio. In a flat market returning 0%, that $10,000 would account for 100% of your portfolio’s gains. In a modest market returning 6% per annum, that $10,000 would account for 73% of your portfolio’s gains. And even in a bull market, charging ahead at a rate of 12%, your $10,000 would STILL account for more than half of your portfolio’s gains, according to Invesco.

Focus on what you can control.

To be sure, part of investing involves accepting things you can’t control. A hurricane on the other side of the world might rattle the markets for a couple days. A large company might become embroiled in an accounting scandal. The Federal Reserve might make an unexpected interest rate move. Market corrections might follow.

But if you understand volatility and continue to focus on the big picture, you’ll start paying more attention to the things you can control, like a monthly budget that allows for automatic contributions to your investment and retirement accounts.

Better yet, think about setting a goal to ramp up the size of those contributions. Many people try to save or invest 10% of their income. Can you shoot for 15%? 20%? The bigger the contributions, the bigger the payoff when you retire. And if retirement isn’t on your radar, that big investment cushion will go a long way toward giving you a feeling of freedom.

If you’re still unsure about investing in the markets, make an appointment to talk to us. We can help clear away any misconceptions you might have about investing and craft a plan that makes you comfortable about how your money is working for you.

 

 

Facebook data scandal: Everything you need to know

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Facebook data scandal: Here’s everything you need to know

Mike Desepoli, Heritage

Cambridge Analytica is in the midst of a media firestorm. This came after an undercover sting operation caught senior executives boasting about psychological manipulation, entrapment techniques and fake news campaigns. Alongside social media giant Facebook, the London-based elections consultancy is at the center of an ongoing dispute over the alleged harvesting and use of personal data.

What happened

It started with an explosive expose broadcast by Britain’s Channel 4 News on Monday. In it, senior executives at Cambridge Analytica, were caught on camera suggesting the firm could use sex workers, bribes and misinformation in order to try and help political candidates win votes around the world.

How did this initially come to light?

The Channel 4 News investigation followed articles published over the weekend by the New York Times and U.K. newspaper The Observer. The reports sought to outline how the data of millions of Facebook profiles ended up being given to Cambridge Analytica.

In this way, 50 million Facebook profiles were mined for data. Kogan then shared this with Cambridge Analytica, which allowed the firm to build a software solution. The software was used to help influence choices in elections, therefore spurring the narrative of collusion. This was according to a whistleblower, who revealed the alleged practices to both newspapers.

How has Facebook Stock responded?

As you might expect it’s been under quite a bit of pressure the last few days. It is currently off about 10% from recent all time highs made in February. With growing calls for executives to appear before congress, it will likely continue to be under pressure. In the news today, there is a group of investors who have filed a class action lawsuit against Facebook with the intention to recoup stock losses.

What happens next?

U.S. senators have urged Facebook boss Mark Zuckerberg to testify before Congress. They will likely ask about how the social media giant will protect its users. Meanwhile, in the U.K., Zuckerberg has been summoned by the chairman of a parliamentary committee in order to explain the “catastrophic failure” to lawmakers.

The head of the European Parliament has also said it will carry out an investigation to see whether data was misused.

For more on this topic check out #AskTheAdvisor 64 on YouTube!