Uncategorized

/Uncategorized

Market Commentary – December 2018

Greetings! We hope this email finds you well and looking forward to the holidays. For many of us in the Pacific Northwest, autumn can be a favorite time of year as we transition from the hot, dry end of summer to shorter days, cooler nights, and plenty of color in the trees. Hiking trails tend to be a little less busy (although this is still the Northwest, so that’s relative!) and the fall harvest brings the fruit of the summer season. It’s also a time when daily routines change for those with children, as the structured schedule of the school year replaces the fun chaos of summer.

While autumn can bring back many happy memories, it can be the most unpredictable season in the Northwest. Heavy rain, windstorms, and power outages are all common. A hike can turn into a miserable experience for the unprepared.  That structured routine with children can be a headache for parents trying to juggle soccer practices, ballet lessons, and numerous other activities.

We believe the key to managing this unpredictable season, similar to the investment markets, is with proper planning and coordination. October brought turbulent global markets along with our changing weather. No matter what your personal risk tolerance (which is not a static thing, by the way), most people don’t enjoy watching their hard-earned savings gyrate like a yo-yo.

During periods like this, here are some important things to remember:

  • We continue to believe in the phrase “time in the market” rather than “timing the market”.
  • Volatility in the stock and bond markets is normal. Don’t let recent years with low-volatility lull you into thinking otherwise.
  • Long-term returns in the stock market are “earned” by clients not being swayed into poor decisions during volatile periods like this.
  • Our financial plans do NOT assume that your investments will increase in a nice, orderly fashion. Volatility is an inevitable part of the market cycle, which is why we use Monte Carlo analysis to stress-test your retirement model.

For clients with a decade or more to go before retirement, a market decline provides an opportunity to build wealth as you make regular purchases at lower prices. Think of a market downturn as a giant sale on good quality assets.

For our clients who have reached financial independence (or are very close), periods like this can be a good reminder of why we recommend a 2-3 year cash reserve as you transition into retirement. Having cash on hand to weather market storms has helped many of our retired clients “sleep at night” during past downturns.

Regardless of your stage in life, our recommendation is to STAY THE COURSE and don’t let short-term gyrations derail your long-term financial plan.

Everyone’s situation is unique, so if the recent market performance has you on edge, we’re happy to set up a time to review your plan and your investments with you. If our unbiased advice is needed, please let us know.

Market Commentary – December 2018 2019-01-21T18:32:39+00:00

October 2017 – Recommendations for Identity and Credit Protection

Greetings,

In light of the recent data breach at Equifax, we would like to share with you some of the information we have gathered to help protect yourself and your family from credit and identity theft. The decision of which lines of defense to take in preventing identity theft is a personal one, and will depend on your individual situation. There is no one right action to take. We’ve divided the lines of defense into two categories – preventive and detective. Preventive measures are designed to prevent credit and identity theft from occurring, whereas detective measures will inform you after the theft/fraud has happened. The lines of defense listed below are not an exhaustive list of precautions you can take. Visit www.usa.gov/identity-theft for other helpful tips and information on preventing various types of identity theft.

Preventive Measures

  • Credit Freeze: This is considered the most extreme, but likely the most effective, measure to prevent identity thieves from opening a new credit card or other line of credit on your credit file. Note that a credit freeze does not protect your existing accounts from fraudulent activity. A credit freeze restricts access to your credit history, without which most creditors won’t open a new account. A credit freeze does not impact your credit score. The downsides to a credit freeze are primarily cost and inconvenience. It may cost up to $20 to both “freeze” and “unfreeze” your credit, depending on the state and the credit bureau. You must freeze your credit with each of the credit bureaus individually. In addition, unfreezing your credit when you need it is not instantaneous, and could take up to a few days. It also requires that you remember or have access to the pin that was established when you originally froze your credit.
  • 90 Day Fraud Alert: This free service warns lenders that you may have been a victim of fraud, and asks them to take extra precautions, such as contacting you, before granting a new line of credit in your name. This initial alert lasts for only 90 days. If you sign up for this free service with any of the 3 primary credit bureaus, they will automatically notify the other credit bureaus. Should you become a victim of fraud, with evidence such as a police report, you can request a seven year fraud alert be placed on your credit file. A fraud alert does not impact your credit score.
  • Opt-out of Pre-approved Credit Card offers: One way to reduce the chances of an identity thief from opening a new credit card in your name (and to reduce the amount of junk mail you receive), is to “opt-out” of the list that credit bureaus provide to credit card and insurance businesses. Visit optoutprescreen.com and follow the instructions if you would like to take this preventive measure and be permanently removed from these mailing lists. This precaution does not impact your credit score.
  • Protect your Passwords: Another preventive measure you can take is to protect your passwords to all accounts in order to prevent thieves from making fraudulent transactions on your existing accounts. Use a secure password manager app on your mobile phone or your desktop/laptop computer, or save your passwords in a password-protected Excel spreadsheet. A few popular password manager apps that use cloud technology include LastPass, Dashlane and 1Password. Other apps such as KeePass, RoboForm and Password Safe use your harddrive for securely storing your password data.

Detective Measures

  • Monitor your Credit Reports: On an annual basis, request your free credit report from each of the four credit bureaus to review for any unexpected activity such as new credit cards or other lines of credit opened in your name that were not authorized by you. This detective measure will make you aware of fraud after it has occurred, although not necessarily in a timely manner, depending on the timing of your report monitoring.
  • Subscribe to a Credit Monitoring Service: The credit bureaus offer monitoring services that will notify you as soon as any changes have occurred on your credit file. Credit monitoring will not prevent you from being targeted by identity thieves, but it can help mitigate the damage by being notified of the fraud in a timely manner.
    • Experian CreditWorks: $24.99 per month (checks your Experian, TransUnion and Equifax credit reports each day, and notifies you when key changes are detected).
    • TransUnion: $19.99 per month
    • Equifax TrustedID Premier: Free for the first year of service.
  • Monitor your credit card/bank statements: An easy detective measure is to get in the habit of regularly monitoring transactions on your credit and bank statements, such as your debit and credit cards, and checking and savings, for unexpected or suspicious activity. This exercise could be two-fold, as you can also track your level of personal spending, an exercise that we recommend most clients do as part of their financial planning.

If you would like to contact us regarding this topic, or set up a meeting with your financial planner, please email: info@goddardfinancialplanning.com

All the best,

Your Team at Goddard Financial Planning

603 Financial, Inc. dba Goddard Financial Planning
1200 Westlake Avenue North / Suite #603
Seattle, WA 98109
(206) 217 – 2583

October 2017 – Recommendations for Identity and Credit Protection 2018-03-28T18:06:26+00:00

Aspiring School Counselor Struggles with Debt

“Like many young adults, Tacoma graduate student Taylor Reyes is pursuing her dreams of a career and a home while college debt piles up around her.

She’s worried whether she can earn enough money as a school counselor to buy a house and pay off student loans that could hit $50,000 by the time she graduates in May. “I had felt so weighed down by these things,” the 25-year-old Fircrest resident said.

But two volunteer financial planners showed Reyes that her ambitions can become reality. They also gave Reyes a plan for starting her career, managing her student loans and owning a home. Reyes could achieve all of those things by the time she’s 30.

Her story is also a case study of how young people can navigate the treacherous path from school to career and homeownership without getting swamped by debt.

The Puget Sound Chapter of the Financial Planning Association voluntarily connected Reyes with two pro bono advisers at Blue Canoe Financial Planning in Seattle. They were reassuring about Reyes’ financial condition. “It’s generally good, given that she knows where she wants to go,” said Nancy Dienes, a registered financial adviser and Blue Canoe’s CEO. “She’s taken some risks, but it’s reasonable.”

Dienes and her colleague, financial planner Holly Davis, developed a road map for Reyes that has tips for other young adults in similar circumstances…..”

[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

Aspiring School Counselor Struggles with Debt 2017-06-23T22:11:01+00:00

Powerball windfall: Strategies for the suddenly wealthy (Komo News)

By Connie Thompson

Komo News

The mere thought of sudden wealth triggers lofty visions. Virtually everyone has a plan.

But whether it’s 1.5 Billion, or several hundred thousand- money experts say the first thing to do- is nothing.

“Don’t quit your job right away.” , said Certified Financial Planner Ted White. “Don’t go out and make a big purchase right away. Don’t alter your lifestyle right away.”

White and his colleagues at Blue Canoe Financial Planning in Seattle are used to helping clients people who come in to big money. They say the key to coming out ahead in any big money game is to think like a coach- and assemble a strong team to that has your back….

 

Read entire story at Komo News

Powerball windfall: Strategies for the suddenly wealthy (Komo News) 2017-06-23T22:11:01+00:00