Author: cindylundberg@verdecm.com

A letter from Verde Capital Management’s President & CEO, Carl Szasz

We understand that recent market volatility may be causing concern, and we want to assure you that we are actively monitoring developments and making strategic adjustments to protect your investments. The US stock market has declined over 10% from its peak just a few weeks ago, largely driven by uncertainty surrounding trade policies and tariffs. However, our approach remains disciplined, data-driven, and focused on long-term financial success.

 

Understanding Market Volatility

So far this year, the markets have experienced some notable fluctuations. As measured by the S&P 500 index, which tracks the 500 largest companies in the U.S., the market at one point was down nearly 10% from its recent peak. While this may seem concerning, it is important to recognize that a 10% peak-to-trough downturn happens almost every year. Historically, such declines do not indicate that a recession is imminent or even likely; rather, they reflect a temporary shift in market sentiment from optimism to pessimism. These fluctuations are a natural part of investing and should not deter long-term investors from their financial goals.

Much of the recent turbulence stems from uncertainty around tariffs—some of which have been imposed and later removed on countries like Canada and Mexico, with potential for additional tariffs involving China and Europe. Many businesses worry about supply chain disruptions, increased costs, and potential price inflation. The situation may feel reminiscent of the 2022 inflation scare, which led to a market downturn and widespread speculation about a recession that ultimately did not materialize.

We also recognize that media coverage can amplify market anxieties. News sources often present issues through a political lens, which can make it seem as if dramatic changes are imminent. However, despite concerns, critical government functions remain stable—Social Security checks continue to be paid, Medicare and Medicaid remain intact, and essential services continue as usual. By maintaining a long-term perspective, we can see past the short-term noise and focus on fundamental economic realities.

 

Our Strategic Approach

At Verde, we are taking proactive steps to manage risk and seize opportunities amidst market fluctuations:

1. Currency Hedging:Trade tensions often cause currency fluctuations that contribute to market volatility. By utilizing futures contracts and hedging strategies, we can mitigate these risks, as demonstrated recently when the U.S. imposed and then removed tariffs on Canada. The initial market reaction was temporary, and currency valuations soon stabilized.
2. Geographic Diversification:We are ensuring that portfolios are not overly concentrated in any single region. While the U.S. remains one of the most attractive markets globally, we are identifying strong investment opportunities in Europe, Asia-Pacific, Japan, and Latin America, where valuations are more favorable.
3. Sector & Industry Diversification: Companies that rely heavily on international trade—such as manufacturers and retailers—are more vulnerable to tariff-related disruptions. We are increasing exposure to sectors that are less impacted by trade conflicts to provide greater stability.
4. Shifts in Supply Chains:The COVID-19 pandemic forced many companies to regionalize their supply chains, reducing reliance on global trade. Automakers, for example, now manufacture cars for the U.S. primarily in North America, for Europe in Europe, and for Asia in Asia. This shift makes tariffs less disruptive than they would have been in a more globalized system.

 

The Economic Outlook

Despite short-term market concerns, the U.S. economy remains strong:

• Low unemployment continues to support consumer spending and economic growth.
• Inflation is within a manageable range (approximately 2–3%), below long-term historical averages.
• Economic growth is solid, with GDP expanding around 3%—faster than the historical trend.
• The Federal Reserve stands ready to adjust interest rates if needed to sustain economic momentum.

Furthermore, progress toward a more balanced federal budget could reduce government borrowing costs, potentially lowering interest rates on mortgages and car loans while easing inflationary pressures. All of these factors support a positive market outlook for long-term investors.

 

Staying Focused on Long-Term Goals

Market downturns often create opportunities for disciplined investors. With many stocks down 5%, 10%, or even 20% from recent highs, we are identifying attractive buying opportunities to strengthen your portfolio. If you have cash available or would like to explore investment opportunities, we encourage you to reach out to your advisor.

Rest assured that we remain committed to safeguarding your financial well-being through prudent risk management, thoughtful diversification, and a long-term perspective. Should you have any questions or wish to discuss your portfolio in more detail, please do not hesitate to contact us.

As we navigate these market fluctuations, it’s essential to maintain a sense of optimism—a crucial component of any successful investment strategy. Investing inherently involves a belief that the future holds greater potential than the present. Therefore, it’s beneficial to steer clear of sources that may dampen this positive outlook.

 

Optimism is Essential

During this season of reflection and mindfulness, a time traditionally associated with reflection and abstinence, we encourage you to consider a “fast” from news outlets, podcasts, or television programs that are overly critical of politicians, religious figures, or celebrities. By limiting exposure to negative narratives, we can create space to appreciate the positive developments unfolding around us. Here are a few uplifting stories and resources that highlight progress and innovation:

• Michigan’s Retirement Tax Reduction

Michigan’s Lowering MI Costs Plan (Public Act 4 of 2023) reduces state taxes on IRA retirement distributions. Signed into law on March 7, 2023, it amends Michigan’s Income Tax Act to gradually increase deductions on retirement and pension benefits through 2026.

For detailed information, you can visit the Michigan Department of Treasury’s FAQ page on these changes.

• Advancements in Robotics

Innovations in robotics are transforming daily life. For instance, the humanoid robot “Figure 1” is designed to assist with household chores, showcasing the potential of technology to enhance our everyday experiences. You can watch a demonstration of Figure 1 in action here.

• Inspirational Reading

I’m currently reading Life Force: How New Breakthroughs in Precision Medicine Can Transform the Quality of Your Life & Those You Love by Tony Robbins, Peter H. Diamandis, and Robert Hariri.

This book explores cutting-edge medical advancements and insights on longevity, inspiring me and expanding my understanding of health optimization. More information about the book is available here.

 

By focusing on positive developments and limiting exposure to negativity, we can cultivate a more optimistic mindset, which is essential for long-term investment success and personal well-being.

Thank you for your trust in us.

Money is one of the biggest sources of stress in relationships—but it doesn’t have to be. Whether you’re newlyweds or have been together for years, having open, honest, and strategic conversations about finances can strengthen your relationship and your financial future. Here’s how to build a money management system that works for both of you.

1. Start with a Money Date

Set aside time for a financial check-in—call it a “money date” to make it less intimidating. Pour some coffee (or wine) and have a relaxed conversation about:

• Your current income and expenses
• Debts and savings
• Short-term and long-term financial goals
• Money values and any financial concerns

This isn’t about judgment—it’s about understanding where you both stand. If you’ve never had a structured money talk, start with sharing your financial priorities (e.g., paying off debt, saving for a house, investing more) and work toward a shared plan.

2. Decide How to Structure Your Finances

Couples manage their money in different ways, and there’s no one-size-fits-all solution. The key is finding what works for both of you. Here are the three main approaches:

• Fully Combined Finances – You merge everything into joint accounts and pay all expenses together. Best for couples with similar money habits and financial goals.
• Partially Combined Finances – You keep some accounts separate but share joint expenses proportionally or equally. This works well for couples with different incomes or spending styles.
• Completely Separate Finances – Each partner maintains separate accounts and splits bills as agreed. This can work, but it requires clear communication to avoid financial friction.

If you haven’t already, open a joint account for shared expenses like rent, groceries, and utilities. Set up direct deposits or automatic transfers to fund this account based on your agreed-upon contributions.

3. Create a Spending Plan (Not Just a Budget)

Instead of a restrictive budget, think of it as a spending plan that aligns with your priorities. Together, decide:

✔ How much to allocate for essentials (housing, bills, groceries)
✔ How much to save and invest (retirement, emergency fund, big purchases)
✔ How much each person gets for personal spending (no questions asked!)

Having clear guidelines ensures that both partners feel financially secure while still having individual freedom.

Use budgeting apps like YNAB, Mint, or Monarch Money to track spending together. If you’re a Verde client, you have a built in budget tracker on your Verde Client Website. Set up a monthly review to adjust as needed.

4. Divide and Conquer Financial Responsibilities

Managing money together doesn’t mean one person should handle everything—unless that’s what works best for you both. Instead, divide financial responsibilities in a way that feels fair and effective.

For example:

• One person handles bill payments, while the other tracks investments.
• One manages short-term savings, while the other focuses on long-term planning.

The key is making sure both partners stay informed about where the money is going. Set up a shared spreadsheet or use your Verde Client Website as a financial dashboard so both of you can see the big picture at a glance.

5. Align on Long-Term Financial Goals

It’s not just about paying the bills—it’s about building a future together. Some key questions to discuss:

• How much can we save for retirement?
• When do we want to buy a home (or upgrade)?
• What big purchases or vacations are on our list?
• Do we want to start a family, and what financial steps do we need to take?

Aligning on long-term goals ensures that your daily spending and saving decisions move you closer to the life you want. Create a joint financial vision—write down your top 3-5 long-term goals and set milestones to track progress.

6. Build an Emergency Fund Together

Life happens. Having an emergency fund gives you both peace of mind when unexpected expenses arise (medical bills, job loss, car repairs).

Aim to save 3-6 months of living expenses in a high-yield savings account. If you don’t have this yet, start small—automate a portion of each paycheck into your emergency fund. Open a high-yield savings account, like the Verde Flourish Savings Account, and set up an automatic transfer every paycheck.

7. Plan for Debt & Credit Together

Debt can be a sensitive topic, but tackling it as a team strengthens your financial position. Whether it’s student loans, credit cards, or personal loans, have a game plan for paying it down.

Key steps:
1. List all debts (balances, interest rates, minimum payments)
2. Decide whether to use the debt snowball (smallest first) or debt avalanche (highest interest first) method
3. Avoid taking on new debt unless it aligns with your goals

Schedule a meeting to review your debts and decide on a repayment strategy together.

8. Don’t Forget About Estate & Insurance Planning

It’s not the most romantic topic, but estate planning and insurance protect both of you. Every couple should:
✔ Have life insurance to cover income loss in case of an emergency
✔ Name each other as beneficiaries on financial accounts
✔ Set up a basic estate plan (will, power of attorney, healthcare directives)

If you don’t have a will or life insurance, talk to your Verde Advisor about your options.

9. Keep the Money Conversations Ongoing

Finances aren’t a one-time discussion—they evolve as life changes. Make money talks a regular habit to check in, adjust, and stay on the same page.

Try:
✔ Monthly Money Check-Ins – Review expenses, savings, and goals.
✔ Annual Financial Reviews – Look at long-term goals, tax strategies, and investment performance.
✔ Dream Planning Sessions – Talk about future aspirations, like early retirement or buying a vacation home.

Love & Money Can Work Together

Managing money as a couple is about teamwork, not tension. With open communication, shared goals, and a clear financial plan, you can build a future together that reflects your values and dreams.

Need help structuring your finances as a couple? Verde Capital Management can help you create a personalized financial plan that aligns with your goals. Reach out to us today!

As wildfires continue to impact communities in Los Angeles, the immediate focus is, understandably, on safety and recovery. However, the financial ripple effects of natural disasters can be long-lasting and challenging to navigate. From unexpected expenses to insurance complexities, these events serve as an important reminder to review your financial readiness.

Here are a few steps to consider, whether you’ve been directly affected or want to strengthen your financial plan for the future:

1. Review Your Insurance Coverage

Wildfires underscore the importance of adequate homeowners or renters insurance. Review your policies to ensure:

• Coverage for Replacement Costs: Make sure your policy covers the full cost of rebuilding or replacing your home and belongings, not just the market value.
• Add-ons for Natural Disasters: Standard policies may exclude wildfire damage in high-risk areas. Ensure you have appropriate riders or endorsements.
• Temporary Living Expenses: Check if your policy includes coverage for relocation or temporary housing costs if you’re displaced.

Pro Tip: Document your belongings with photos or videos. This can expedite the claims process in the event of a loss.

2. Build an Emergency Fund

The financial strain of evacuation costs, temporary housing, or lost wages can be significant. Aim to have 3–6 months’ worth of living expenses in an easily accessible account. If you’re in an area prone to disasters, you may want to extend that buffer.

An emergency fund is your first line of defense against using credit cards or loans during a crisis, which can lead to long-term financial strain.

3. Understand Tax Implications

If you experience losses due to a wildfire, you may qualify for certain tax benefits:

• Casualty Loss Deductions: Under federal tax laws, you may be able to deduct unreimbursed losses from natural disasters.
• Disaster Relief Credits: Check if your region has been declared a federal disaster area, as this can open up access to special tax credits or extensions.

Consult with a tax professional to determine how to maximize your relief options.

4. Plan for Rising Costs

Natural disasters often lead to increased costs for utilities, construction, and even insurance premiums in the affected area. Factor these potential increases into your budget.
For those rebuilding, consider inflation-adjusted costs when working with contractors or negotiating insurance settlements.

5. Diversify Your Investment Strategy

Disasters can also affect local economies, including real estate markets and certain industries. A well-diversified investment portfolio can help minimize the impact of localized disruptions on your long-term financial goals.

If you own property in fire-prone areas, consider diversifying into other asset classes or locations to mitigate risk.

6. Develop a Financial Disaster Plan

Just as you’d prepare an evacuation plan for your family, you need a financial disaster plan. Key components include:

• A list of important financial documents and account logins stored securely (e.g., in a fireproof safe or cloud-based system).
• Digital backups of essential records like insurance policies and wills.
• A designated financial point person if you’re unable to manage your finances during a crisis.

 

The devastating fires in LA remind us that natural disasters are unpredictable but not entirely unmanageable. Taking steps to strengthen your financial preparedness now can ease the burden if disaster strikes.

At Verde Capital Management, we’re here to help you create a resilient financial plan tailored to your unique needs. Whether it’s evaluating your insurance, building an emergency fund, or strategizing your investments, we’re here to guide you through life’s uncertainties.

If you have questions or need assistance navigating financial risks, don’t hesitate to reach out.

Need help preparing for the unexpected? Schedule a consultation with one of our advisors today.

Cybersecurity: Staying Vigilant with Your Finances This Season

As the holiday season approaches, we’re all busy juggling festive plans, gift shopping, and year-end financial decisions. But amidst the celebrations, it’s crucial to stay vigilant about cybersecurity. Scammers and hackers often ramp up their efforts during this time of year, targeting distracted individuals and businesses. Here are some essential tips to protect your financial well-being in this season of giving—and unfortunately, scamming.

Why Cybersecurity Matters

In our increasingly digital world, financial transactions and personal data are more accessible to cybercriminals than ever. From phishing emails to fake charity scams, the holiday season creates an ideal environment for fraudsters. A single lapse in cybersecurity could compromise your identity, financial accounts, and even your credit score. Protecting your financial life requires staying informed and taking proactive steps to safeguard your information.

Practical Tips for Cybersecurity

1. Be Wary of Phishing Attempts

Scammers often disguise themselves as trusted companies, charities, or even government agencies in their emails or messages. Watch out for:

• Urgent language like “Your account will be locked if you don’t act now!”
• Misspelled URLs or strange email addresses.
• Attachments or links you didn’t expect.

Always verify communications by contacting the organization directly through official channels.

2. Strengthen Your Passwords

A strong password is your first line of defense. Follow these tips:

• Use unique passwords for every account.
• Incorporate a mix of uppercase, lowercase, numbers, and special characters.
• Enable multi-factor authentication (MFA) wherever possible for an extra layer of security.

3. Monitor Your Accounts Regularly

Review your financial accounts for suspicious activity at least weekly:

• Look for unauthorized charges or withdrawals.
• Report discrepancies to your financial institution immediately.

Using a credit monitoring service can also alert you to changes in your credit report.

4. Beware of Holiday Scams

Fraudsters take advantage of the season with schemes like:

• Fake online stores offering “too good to be true” deals.
• Impersonated charities asking for donations.
• Social media ads leading to phishing websites.

Stick to reputable retailers and research charities before donating.

5. Protect Your Devices

• Keep your software and operating systems up to date with the latest security patches.
• Use antivirus programs to scan for malware.
• Avoid using public Wi-Fi for sensitive transactions unless you’re connected to a VPN (Virtual Private Network).

Stay Informed and Secure

This holiday season, take the time to protect your financial and personal data. Cybersecurity is a critical part of financial planning, and being proactive today can save you from headaches tomorrow. As always, Verde advisors are here to help if you have questions or want to review your financial plan for added peace of mind.

If you’d like to discuss financial planning or learn more about safeguarding your assets, feel free to reach out. Together, we can make sure your finances are well-protected, leaving you free to focus on what matters most.

The holiday season often brings thoughts of generosity, whether it’s supporting loved ones or making a difference in the community. Gifting—both to family members and charities—offers not only personal satisfaction but also financial benefits. Let’s explore why giving now might be a smart financial strategy, and how both personal and charitable gifts can fit into your overall financial plan.

Personal Gifting: Supporting Your Loved Ones

Giving financial gifts to family members can create meaningful, immediate impacts on their lives while also offering benefits for your financial plan.

1. Reduce Estate Taxes

Lower Your Taxable Estate: Making gifts to family members today can reduce the size of your taxable estate. By taking advantage of the annual gift tax exclusion, you can transfer assets gradually without dipping into your lifetime exemption. Over time, these gifts can significantly reduce the tax burden on your estate.

Immediate Financial Impact: Gifting to adult children or grandchildren allows you to see the positive changes your support brings, such as helping with education costs, home purchases, or paying off debts. Rather than leaving a large inheritance, personal gifts provide timely assistance that can foster financial stability.

2. Maintain Control and Flexibility

Structuring Gifts Strategically: For those concerned about giving large sums all at once, there are various strategies to retain flexibility. Trusts, for example, allow you to control how and when the funds are used, while still benefiting your family members in ways that align with their needs.

Retain Financial Confidence: Personal gifts don’t have to be large to be impactful. By gifting gradually, you can still support loved ones while ensuring your own financial stability. Small gifts over time add up, allowing you to stay in control of your financial situation.

3. Foster Financial Literacy and Responsibility

Model Good Financial Behavior: When you gift assets or funds, you have an opportunity to share the “why” behind the gift and provide financial insights. This can be particularly impactful for younger family members, who gain not only financial resources but also valuable lessons in financial planning and stewardship.

Encourage Long-Term Thinking: Helping loved ones achieve financial goals encourages them to think long-term. Whether it’s saving for a major life event or investing in their future, family gifting can help foster a mindset of responsibility and growth.

 

Charitable Giving: Making a Difference in Your Community

Gifting to charity allows you to support causes you care about and often brings financial perks that make it a wise part of any financial strategy.

1. Potential Tax Deductions for Qualified Donations

Reduce Taxable Income: Charitable contributions to qualified organizations are typically tax-deductible, reducing your taxable income and potentially lowering your overall tax bill. Check with your tax attorney for more information.

Offset Large Gains: If you’ve had a financially successful year and are facing capital gains, charitable contributions can help offset this. Donating appreciated securities like stocks not only benefits the charity but may also help you avoid capital gains tax on the appreciated value.

2. Align Giving with Your Values

Support Causes that Matter to You: Charitable giving allows you to make a tangible difference for the causes closest to your heart. Whether it’s education, health, environmental protection, or social justice, donations allow you to leave a lasting impact and directly influence the work you believe in.

Create a Legacy of Generosity: By setting up recurring donations or creating a donor-advised fund, you can ensure your support continues over time, even beyond your lifetime. This long-term commitment not only establishes a legacy but can also inspire future generations in your family to uphold similar values.

3. Flexible Giving Options for Different Goals

One-Time Gifts vs. Recurring Donations: Charitable giving is flexible. You can make one-time contributions or establish ongoing support that aligns with your budget. Recurring donations often allow charities to plan better and make long-term commitments to their work.

Use of Donor-Advised Funds: Donor-advised funds (DAFs) offer a tax-advantageous way to manage your charitable giving. By contributing to a DAF, you can claim a tax deduction in the year of the donation while distributing funds to charities of your choice over time, providing you with control and flexibility. Reach out to a Verde Advisor to open this type of account (advisory fees on this type of account do not apply).

 

Whether you’re supporting your family, contributing to charitable causes, or both, giving is a powerful way to make a meaningful impact. By incorporating these strategies into your financial plan, you can maximize the benefits of gifting while aligning your resources with your values and goals. And in the end, giving not only enriches the lives of those you support but also brings lasting fulfillment and peace of mind for you.

 

As a business owner, you’re likely consumed with the day-to-day operations of running and growing your company. But do you know what your business is truly worth? Regular business assessments and valuations aren’t just for those considering a sale; they are an essential tool for strategic planning, securing investments, and preparing for future transitions. Partnering with a consultant and financial advisor throughout this process can provide additional clarity and help you maximize the value of your business, both now and in the future.

Here’s why conducting regular business assessments and valuations while working with a financial advisor should be at the top of your priority list.

1. Strategic Planning for Growth

Knowing your business’s current value gives you a clear snapshot of where you stand today and opens the door for targeted strategic planning. It allows you to identify strengths and areas for improvement, whether you’re aiming to expand, enter new markets, or streamline operations.

A financial advisor can help you translate the valuation into actionable steps for growth. By analyzing the numbers, they can guide you in areas like optimizing cash flow, enhancing profitability, and ensuring your financials align with your long-term business goals. With their expertise, you can create a roadmap that helps elevate your business’s value over time.

2. Securing Investments and Financing

Whether you’re seeking to attract investors or secure loans, a current and accurate business valuation is often a key requirement. Lenders and investors want to know the value of your business to assess the potential return on their investment or loan risk. If your valuation is outdated, you could be missing out on opportunities to access the capital you need to grow.

By working with a financial advisor, you’ll not only have a credible valuation but also a trusted professional who can advocate on your behalf when dealing with investors or financial institutions. Your advisor can help craft a financial narrative that highlights your strengths and opportunities, making it easier to secure the funding you need to take your business to the next level.

3. Preparing for an Exit Strategy

No one wants to think about leaving their business, but preparing for an eventual exit is critical to securing the best possible outcome—whether you’re planning to sell, pass the business on to family, or merge with another company.

Regular valuations give you insight into your company’s readiness for a transition. They provide a benchmark to help you determine if your business is performing optimally or if adjustments are needed to increase value before an exit. A consultant and financial advisor can assist in preparing your business for a smooth transition by helping you understand tax implications, financial structuring, and potential pitfalls that could erode your business’s value.

4. Ongoing Financial Health Check

Conducting regular business assessments and valuations is like giving your business a regular financial health check. It ensures you’re not flying blind and helps you make informed decisions about the direction of your business. A valuation is a dynamic tool that reflects changes in your industry, economic conditions, and internal business shifts, offering a more holistic view of your company’s worth.

A financial advisor and business consultant can help interpret these changes, providing you with strategies to protect and grow your business’s value. From adjusting your business model to reducing risk, having these professionals as part of your team ensures you’re constantly moving in the right direction.

5. Maximizing Tax Efficiency

A valuation can highlight areas where you can increase tax efficiency. By analyzing the financials in detail, your advisor can identify ways to reduce your tax burden, improve cash flow, and take advantage of tax credits or deductions that you may not have considered.

For example, if you’re planning an exit in the future, an advisor can help structure the sale to minimize tax liability while ensuring you receive the maximum value from your business.

Unlock Your Company’s Full Potential

A regular business assessment and valuation isn’t just a one-time event—it’s a proactive step in safeguarding your business’s future. With the help of a team of professionals, you can unlock the full potential of your valuation, using it to make informed decisions that fuel growth, secure funding, and prepare for an eventual transition.

If you haven’t yet incorporated business valuations and financial advising into your routine, now is the time to start. These tools and partnerships can set you up for long-term success, ensuring that when the time comes to make a big move—whether it’s expanding, securing investors, or planning an exit—you’re ready to maximize the value you’ve worked so hard to build.

At Verde Capital Management, we know that every financial journey is unique, and we are committed to guiding our clients to their best financial future. But for us to serve you at the highest level, there are a few traits that help make our partnership truly successful. We’re proud to work with an exceptional group of clients who are committed to their financial well-being. Our clients all share these four common characteristics.

1. Open to Advice

Our clients value expert guidance. They understand that personal finance can be complex and are open to receiving insights that help them make the best possible decisions.

You’re the hero of your own financial story, and we serve as your guide—offering expert, thoughtful advice to help you make empowered decisions. Whether it’s navigating tax strategies or planning for retirement, you can trust us to provide actionable, informed, and personalized advice that helps you achieve your financial goals.

2. Goal-Oriented

Financial success doesn’t happen by accident—it’s driven by clear objectives. Our clients come with clear, meaningful goals that motivate their financial decisions. Whether it’s buying a home, saving for their children’s education, or ensuring a comfortable retirement, we will work with you to create customized roadmaps that outline each step of your financial journey.

3. Strong Savers

The foundation of any solid financial plan is a commitment to saving. Our clients know the importance of consistently setting aside funds for the future. They understand that today’s disciplined habits lead to tomorrow’s financial freedom.

We can help you optimize your savings strategies—whether it’s through tax-advantaged accounts, investment portfolios, or other vehicles—so you can build and protect your wealth over time.

4. Long-Term Thinking

We believe that a key ingredient for financial success is the ability to think long-term. Our clients understand that the journey to wealth and financial security is not about chasing short-term gains but about staying the course through ups and downs. This forward-thinking mindset allows them to make smarter, more informed financial decisions.

One of the most important aspects of long-term thinking is resisting the urge to make emotional decisions in response to market volatility. Markets fluctuate, and while short-term volatility can feel unsettling, our clients know that reacting impulsively—whether by selling off investments during a downturn or trying to “time the market”—often leads to missed opportunities and diminished returns. Instead, they remain focused on the bigger picture, trusting in the strategies we’ve put in place to guide them toward their financial goals.

We will work closely with you to develop a strong, diversified portfolio that is built to weather market fluctuations. By keeping emotions in check and sticking to a well-crafted plan, you’ll be able to take advantage of long-term growth opportunities while minimizing risk.

 

We understand that financial planning isn’t one-size-fits-all. That’s why we seek clients who are ready to take proactive steps toward securing their financial future. If you’re someone who values expert guidance, has clear financial goals, and is committed to long-term success, we are here to partner with you. Our mission is to educate you about your money, guide you to make balanced decisions so you can cultivate opportunities to grow towards your goals.

As the back-to-school season approaches, families across the country are getting ready for the flurry of shopping, scheduling, and organizing that comes with it. Whether your children are in elementary school or heading off to college, this time of year can be both exciting and stressful. As Financial Advisors, we want to help you navigate the financial aspects of the back-to-school season with confidence and clarity.

 

1. Create a Budget and Stick to It

One of the most important steps you can take to prepare financially for the back-to-school season is to create a budget. List out all the expected expenses, including school supplies, clothing, extracurricular activities, and any technology needs. Don’t forget to account for additional costs like school lunches, transportation, and field trips.

Once you have a clear picture of what you’ll need, set a budget that aligns with your overall financial plan. This is where prioritizing comes into play—determine what’s essential and what can be scaled back. It’s easy to overspend during back-to-school shopping, so having a budget in place can help keep your finances in check. If you need help with this, reach out to Verde’s Financial Coach, Michelle Kopp!

 

2. Take Advantage of Sales and Discounts

Retailers know that back-to-school season is a prime shopping time, so they often offer significant discounts on school-related items. Keep an eye out for sales, use coupons, and consider shopping during tax-free weekends if your state offers them. Buying in bulk for items like notebooks, pens, and paper can also save money in the long run.

Additionally, consider shopping online, where you can easily compare prices and take advantage of exclusive online deals. Many stores offer student discounts, so be sure to ask about them, especially if you’re purchasing electronics or software.

 

3. Plan for the Unexpected

The back-to-school season often brings unexpected expenses—like a new textbook that wasn’t on the list or fees for extracurricular activities that weren’t anticipated. To avoid financial stress, set aside a small contingency fund within your budget for these surprises. Having a little extra cushion can help you navigate any unexpected costs without derailing your overall financial plan.

 

4. Review and Adjust Your Financial Plan

Back-to-school season is a good time to revisit your family’s overall financial plan. Are you on track with your savings goals? Do you need to adjust your spending or saving habits now that summer is over? Consider meeting with your financial advisor to review your plan and make any necessary adjustments.

For families with college-bound students, this is also an ideal time to review financial aid packages, scholarship opportunities, and student loan options. Make sure you understand the long-term financial implications of any decisions you make regarding college financing.

 

5. Teach Financial Responsibility

The back-to-school season is a great opportunity to teach your children about financial responsibility. Whether it’s through budgeting for school supplies, setting up a savings account, or discussing the costs associated with their education, involving your children in financial discussions can help them develop healthy money habits.

For older children and teenagers, consider giving them a budget for their school shopping and letting them make decisions about how to spend it. This can be a valuable lesson in prioritization and financial planning.

 

6. Consider Long-Term Planning

While the immediate focus is on the upcoming school year, it’s also important to keep long-term financial planning in mind. Whether it’s saving for college, planning for future extracurricular activities, or considering educational expenses down the road, thinking ahead can help you stay financially prepared.

Start or continue contributing to education savings accounts like a 529 plan. Even small contributions can add up over time and provide significant support when your child is ready for college.

 

7. Seek Professional Advice

If you’re feeling overwhelmed by the financial aspects of the back-to-school season, don’t hesitate to reach out to us. A Verde Advisor can help you create a budget, prioritize expenses, and ensure that your financial plan is aligned with your family’s goals.

Back-to-school season doesn’t have to be a financial burden. With careful planning, smart shopping, and a little foresight, you can manage the costs effectively and set your family up for a successful school year.

 

Remember, investing in your child’s education is one of the best investments you can make. By approaching the back-to-school season with a well-thought-out financial plan, you can enjoy this exciting time without unnecessary stress.

 

Here’s to a successful, budget-friendly back-to-school season!

As financial advisors, one of the most common concerns we hear from clients revolves around the impact of presidential elections on their investments. With the 2024 election approaching, it’s crucial to understand the historical market dynamics during such politically charged periods. Buckle up as we dive into some data-driven insights that can help guide your investment decisions today and during future election years.

Market Performance Under Different Presidencies

Historically, stocks have shown strong performance regardless of the party in power, although certain sectors and markets react differently under different administrations. While it’s essential to recognize the overarching growth trend of stocks over the long-term, it’s equally important to understand there is no consistent correlation between who holds the presidency and how any given asset class performs.

Short-Term Reactions to Election Results

The immediate market reaction to election outcomes can provide insights into investor sentiment as shown in the chart below. Sentiment can be significantly swayed by the outcome of presidential elections, leading to immediate but often temporary market movements. On the night of an election and the days following, markets may react strongly as investors speculate on the potential impacts of the new administration’s policies. When a new president announces major policy initiatives, especially those involving fiscal stimulus, taxation, or regulatory changes, markets might react positively or negatively depending on how these policies are perceived in terms of fostering economic growth or adding constraints. While short-term market responses to presidential elections can be dramatic, they are not always predictive of the longer-term economic impact of a president’s policies. 

Long-Term Trends: A Historical Perspective

Presidents often inherit the economic conditions of their predecessors and their policies may take years to manifest in economic outcomes. Thus, the market’s performance during any given presidency can be influenced by a combination of prior economic conditions, global events, and the specific policies enacted during their term. Looking back to the time of President Kennedy, the S&P 500 has only posted negative returns during the presidencies of Richard Nixon and George W. Bush. This underscores the general upward trajectory of the market over time regardless of political leadership.

Investment Strategy Based on Political Party

While it might be tempting to adjust your investments based on the party in office, historical data suggests this might not be the best approach:

• Investing only during Republican presidencies since 1950 would have yielded an annualized return of 2.80%.
• Investing during Democratic presidencies would have returned 5.11% annually.
• Staying invested throughout all presidencies would have resulted in the highest annualized return of 8.05%.

The Myth of Political Impact on Long-term Investment Success

Investors often speculate about the potential impact of presidential elections on the financial markets. However, the long-term data indicates that the person who is Head of State may not be as influential as many think. Significant market trends and economic cycles have spanned multiple administrations, suggesting that other factors—such as global economic conditions, technological advancements, and demographic shifts—play a more substantial role in shaping the investment landscape.

Despite the variability in short-term market reactions to elections, the long-term strategy of staying invested typically yields the best results. Market fluctuations during election periods are normal, but they do not generally disrupt the longstanding trend of growth in stock markets.

The key is to focus on long-term investment goals rather than making drastic changes based on political outcomes, or worse, potential outcomes. Decisions driven by the changing political landscape often lead to missed opportunities and potential misalignment with long-term financial objectives.

Contact a Verde advisor for more insights and information on how you can navigate this politically charged climate.

Source: https://go.ycharts.com/hubfs/How_Do_Presidential_Elections_Impact_the_Market/Election_Guide.pdf

Summer is a season filled with sunshine, outdoor activities, and numerous social events. However, the expenses associated with weddings, summer events, and potential increased childcare costs can strain any budget if not planned for carefully. Here’s a comprehensive guide to help you manage and plan for these seasonal financial demands.

Budget Early for Weddings and Events

Summer is a popular time for weddings and various social gatherings. The key to managing these expenses is to budget for them well in advance.

1. Set a Clear Budget: Determine how much you can afford to spend on summer events. Include costs like travel, gifts, attire, and any other associated expenses.
2. Start Saving Early: Once you have your budget, start setting aside a small amount each month. Consider opening a dedicated savings account for event expenses to avoid dipping into your emergency or regular savings.
3. Gift Wisely: While it’s traditional to give gifts at weddings, remember that your presence is also valuable. Consider creative, less expensive gifts like personalized DIY gifts or offering your skills (like photography or baking) as a gift.

Manage Increased Childcare Costs

With schools out, childcare becomes a significant summer expense for many parents. Planning is crucial to manage this without breaking the bank.

1. Explore Summer Camp Early Bird Specials: Many camps offer discounts for early registration. Sign up as soon as possible to take advantage of these savings.
2. Utilize Flexible Spending Accounts (FSAs): If your employer offers a Dependent Care FSA, use it to pay for qualifying summer camps and daycare expenses with pre-tax dollars.
3. Combine and Alternate Care: Team up with other parents to share childcare responsibilities. Arranging playdates or alternating care days can significantly reduce the need for paid childcare.

Smart Spending on Summer Activities

The allure of the warm weather can bring about a surge in spending on activities. Keep these in check with a few smart spending habits.

1. Look for Free Activities: Many communities offer free events during the summer such as concerts, outdoor movies, and festivals. Take advantage of these local programs.
2. Pack Meals for Outings: Food can add a considerable amount to your daily outings. Packing homemade meals or snacks can save you a surprising amount of money over the summer.
3. Set a ‘Fun Fund’: Avoid spontaneous overspending by setting aside a specific amount of money dedicated to summer fun. Once it’s spent, resist the temptation to dip into other savings.

By planning ahead and sticking to your financial strategies, you can enjoy all that summer has to offer without financial stress. Remember, the best summer memories are often the ones that cost the least!