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Writer's pictureAlly Christian

Spooky Financial Stories

With Halloween upon us, we wanted to take a moment to discuss scary and spooky financial topics. Because, after all, who doesn’t love a good horror story?


Election Frights

Many people are spooked about the upcoming election and its impact on the stock market. After all, an unknown outcome often puts investors on edge because they are unsure how to hedge their bets, which usually manifests in increased volatility.


Still, history shows us that the stock market frequently finishes positive during election years. So, while a significant unknown prevails in the October air, the best action is to stay invested according to your long-term plan. Knee-jerk reactions to the news rarely are good investment decisions.


Ghost Beneficiaries

Another spooky topic we regularly encounter is when reviewing client beneficiaries. Frequently, we see an ex-spouse or deceased relative as the beneficiary of a client's assets. What a horror it would be if you were to pass and your assets went to an ex-spouse or ended up in a contentious probate hearing since the heir to your funds is deceased! The best course of action here is to review your beneficiaries annually when you meet with your financial advisor or do your taxes. After all, you worked hard to save your nest egg. Shouldn’t anything that is left go to the right person?


Going Into Debt Over An Emergency

While having your money go to the wrong heir is terrifying, perhaps more unnerving is that more than half of Americans cannot afford an emergency that costs $1,000. Whether it is an emergency department visit, vehicle repair, or unexpected dental procedure, life happens, and most Americans are not financially prepared to cover such an unexpected event. 

As financial planners, we stress the importance of saving up a three-month emergency fund before funding other goals to ensure someone does not go into debt should something unexpected occur. Once they have saved up this safety net, they can start chipping away at their other financial objectives from a more secure position where they are unlikely to fall into the debt trap.


Working Zombies Unable to Retire

However, the scariest financial story is that only 22% of Americans approaching retirement believe they have enough money to retire. While this statistic is sadly a reality, our job as financial planners is to help people better prepare for and achieve their retirement goals. 


If you do not feel like you are in the correct financial position as you near retirement, we are here to help. We regularly review financial plans to help our clients determine when they can retire and how to do so successfully. While you may be ahead or behind on your retirement savings, we can help you craft a plan to maximize your remaining working years.


So, rather than becoming a zombie who must continue to work with no end in sight, please get in touch with us so we can help you.

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