In our last piece published earlier this month, we covered the recent uptick in inflation, and what to make of it from a historical context. For investors, it’s important to take a step back and look at the big picture instead of acting on breaking news. But what if inflation does get out of hand, and stays that way for a while?
Welcome to the third feature of our new series, How I Came to Be a Financial Advisor. Every other month we highlight one team member who shares their background in, passion for, and future plans in the financial planning profession. There is truly something special that each individual brings to our team, and we can't wait to share it all with you.
This month, get to know Julie Fortin, Partner and Wealth Manager at Northstar.
After three decades of a slow, albeit bumpy descent, inflation appeared to turn on a dime in April 2021, posting its highest year-over-year increase since 2009. The media has fixated on this surge, and economists are sounding the alarm over government policies that seem certain to unleash it further. The widespread consensus is that inflation looms large on the horizon if it hasn’t already arrived.
Or not, according to many economists who insist that we are still in a low-inflation economy and that these spikes in inflation are transitory or outliers. Who is right, and should we be worried about the return to an inflationary environment?
Divorce is difficult enough. What could add to the anxiety that divorce brings? Taxes. If you are one of the many people who recently divorced this year, as a result you will be coping with new tax issues, and you may be filing your own tax return for the first time. Here are several tips to help you handle tax issues in the year of your divorce.
Welcome to the second feature of our new series, How I Came to Be a Financial Advisor. Every other month we will highlight one team member in our newsletter who will share their background in, passion for, and future plans in the financial planning profession. There is truly something special that each individual brings to our team, and we can't wait to share it all with you.
This month, get to know Rachel DeCarolis, Partner and Wealth Manager at Northstar.
There’s no denying that the coronavirus has been devastating for everyone. It has affected everything from our mental and physical health, our businesses and financial security, and even our interpersonal relationships. But it seems that women have been harder hit in one particular way: their pockets. This phenomenon is known as the the ‘she-cession’ and has become a popular buzzword in the media; but what is it really? And what are the implications?
Coming from a financial planning firm, you might be expecting that this article is going to be about the technical and tax-savvy transfer of wealth. You may expect that we will address trusts, important estate planning documents, or even asset protection. While these are inarguably important aspects of your legacy, we believe they don’t paint the whole picture.
Your legacy isn’t just the sum of tangible assets you have to give, but the lasting influence of the gifts that you have received and the gifts you give on the people and the world around you. How can you positively impact your loved ones? Your community? The passions and projects that are important to you?
Ultimately, your legacy is the cumulative difference you and your gifts make in the lives you touch and the world you inhabit.
Welcome to our new series, How I Came to Be a Financial Advisor. Each month we will feature one team member in our newsletter who will share their background in, passion for, and future plans in the financial planning profession. There is truly something special that each individual brings to our team, and we can't wait to share it all with you.
This month we will start with Robin Young, President, Partner, and valued leader at Northstar.
The housing market may have suffered a tough blow last spring when the global pandemic put buying, selling, and moving on hold, but it has shown incredible resilience since then. Homebuyers and low-interest rates have done wonders in keeping the housing market afloat. So much so, in fact, that 2020 was a record-breaking year for new and existing home sales in the US. Big companies like Zillow expect even bigger growth in 2021 as unrelenting demand pushes home values higher and higher.
So what if you want to take advantage of this low-interest rate environment and refinance, downsize, or move, but you are already retired and do not earn a traditional income? Can you still qualify for a mortgage?
The short answer is yes. Absolutely! But, there are some important considerations to keep in mind as you approach the process. Purchasing in retirement is different than purchasing while you earn a traditional income. The way lenders calculate the terms of your loan will be dependent on the type of income you receive and your debt-to-income (DTI) ratio.
1. Women are Better Investors
Luckily, women are statistically better investors, which can help to overcome some of the challenges discussed above. Women tend to be less inclined to jump in and out of the market based on “hot tips” or media headlines. As investors, they are typically better at sticking to their devised financial plans and staying the course through market fluctuations. As a result, a study performed by Fidelity in 2016 of more than 8 million clients found that women generated investment returns that were higher by 40 basis points, or about 0.4%.
Does this surprise you? It surprises many, especially since women tend to be stereotyped as less financially savvy than men. But, the numbers don’t lie. Once women take control of their own finances, they find their probability of success is indeed higher than they expected.
On the surface, it may look like women face many of the same financial life planning concerns as men, such as managing debt and assets and saving enough for retirement while living a meaningful life that aligns with their core values. But financial life planning for women is very different. Not only do they face unique financial challenges, but their behavior and values are different, as well.
At the heart of it, financial life planning is about aligning your spending habits with what is most important to you. It’s about utilizing your assets to live an authentic life that you feel good about day in and day out.
Intrinsically, money has no value. But money can bring happiness and meaning to your life if used wisely and maximized through good financial life planning. Naturally, then, key financial and behavioral differences will make planning for women unique.
More Articles ...
- How Does COVID-19 Affect Your Planning For Long Term Care
- Bitcoin & Cryptocurrency Fever: What’s It All About?
- What Is Sequence Risk and How Could it Affect My Retirement?
- 2020 Year End Tax Planning Tips