March Money Madness

MARCH MONEY MADNESS by Kathryn Beach

March is a month college basketball fans like myself wait for all year long. I love flling out my bracket with predictions for the NCAA Men’s Basketball Tournament, especially if it looks like the Tarheels have a chance to win it all! Te fun continues throughout the month as the inevitable upsets come and I can celebrate the games I predicted correctly and lament the ones I didn’t. No one is likely to ever complete a perfect bracket – the odds of doing so are about 2.4 trillion to one. But paying attention to the relative strengths of diferent teams makes correct picks much more likely. Tat’s true in my day-to-day life of fnancial planning as well. Consider these factors that are equally important for basketball as well as personal fnance.

Players have to get and stay in shape.

Freshman basketball players build up to their frst season on a college team with months of workouts. Troughout the season, they continue strength and endurance training so they can run up and down the court for forty minutes without collapsing. Getting in shape fnancially takes time and commitment as well. Look at any outstanding debts you have and consider paying of high interest loans or credit cards quickly so you can save money on interest. Also, take a look at your spending to see where you might be able to cut back. You may fnd that you can reduce spending in areas that are less important to you so you can increase savings or spending in areas that line up better with your values. Put processes in place that keep you reliably focused on these goals.

Teamwork

Even Michael Jordan wouldn’t have won NCAA and NBA championships without the rest of his team. A team works together best when they have respect for each other and good communication. Tis isn’t all that diferent from how families work. Take the time to have regular conversations about money with your family. You and your spouse can get on the same page about spending and fnancial goals in retirement. Conversations with your children about your fnances will help prepare them so there are no surprises down the road.

Don’t forget about defense!

A team scoring eighty points per game still may not win if their defense isn’t up to par. Te other team could score ninety without a strong defense to stop them. How can you protect the paint fnancially? Step one is to have an emergency fund. Tis is money that could tide you over if you lose your job or become temporarily disabled, or in retirement if the stock market were to take a dip. A general recommendation is to have three to six months’ worth of non-discretionary living expenses in this savings account. Another way to protect yourself fnancially is to have legal documents regarding your wishes in place. Tese would include an advance directive and healthcare power of attorney so you have a plan for your health care in the event of an accident or illness, and durable power of attorney appointing someone you trust to make fnancial decisions on your behalf in the event you aren’t able.

Whether a team’s star players are one-and-done or stick around for all four years, they’re not only fun to watch but make a large diference in a team’s winning record. I know I cringe when a player averaging twenty points fouls out near the end of a close game. I worry about whether the other players can make the shots needed to cement a win. Some of the star players in your fnancial plan might be accounts that will pay higher returns or those that provide tax advantages. Te emergency fund I mentioned, for example, might get a better return if saved in an account with a credit union or online bank rather than the bank you’ve traditionally used. When saving for college expenses for your children or grandchildren, consider a 529 plan - a tax-advantaged plan designed for education savings. Both of these accounts are examples of how to “recruit” the right tools as you work towards your fnancial goals.

A good coach makes all the diference.

Coaches ofen make or break a basketball team. Tey set goals for the players and push them to improve and achieve those goals. Expertise and experience guides their coaching. Tis has so many parallels to the fnancial professionals we turn to when we need guidance. We look to our accountants, attorneys, and fnancial planners to guide us in working towards our fnancial goals and keeping us on track from year-to-year. Accountability is the key to success when working towards a goal. Take the time to express your goals out loud to someone, either your fnancial planner or a trusted friend or family member, to make them more real. Ten, ask that person to support you and ask about your progress. Having someone in your corner, wanting you to succeed and checking in with you regularly, can be like having a Hall of Fame coach dispensing strategy from the sidelines.

Turning Lives into Legacies.

Need help navigating the later stages of your financial well-being? We’ll be there for your family even after you’re gone. Contact us to request our comprehensive planning tool.

Email sfginfo@raymondjames.com or call 828.285.8777.

Kathryn Beach is a CERTIFIED FINANCIAL PLANNER™ Starks Financial Group 440 Montford Ave. Asheville, NC 28801 828-285-8777

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Kathryn Beach and not necessarily those of Raymond James. Investing involves risk and investors may incur a proft or a loss. Investments and strategies mentioned may not be suitable for all investors.

PLANNING WITH HEART. INVESTING WITH PURPOSE.

starksfnancial.com 828.285.8777 | 877.285.RJFS (7537) 440 Montford Avenue, Asheville, NC 28801 Starks Financial Group is not a registered broker/dealer and is independent of Raymond James Financial Services. Securities offered through Raymond James Financial Services, Inc., Member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc.