Wealth Enhancement

You’ve Decided to Donate – Now What?

by Sarah Kordon | May 16, 2023 | Advisors, Charitable Giving, Living Fully, Sarah Kordon, Tech Focus, Wealth Enhancement

There are more than one and a half million nonprofits in the U.S. and ten million worldwide. From supporting education and cancer research to protecting the environment and ensuring human rights for all, the list of worthy causes is endless. No wonder the process of deciding where you want to donate can be overwhelming!

As a financial planner, I have assisted many clients with achieving financial security, determining how much they can afford to give while balancing their other goals and evaluating the most tax-efficient method for their donations. After addressing all these questions, many people still struggle with deciding on which organization to choose. One of my clients recently came to me with exactly this issue. They had been donating for years in small amounts to numerous organizations, seemingly more and more each year as they discovered new causes they wanted to support. While spreading the love felt good, they had decided to consolidate their donations to make a greater impact in a single organization and weren’t sure how to narrow their selection.

Here is my advice to them, and it goes for anyone, whether you are donating for the first time, consolidating donations, or considering making a large gift: Begin by reflecting on your motivation for giving. Is it to improve your local community? Do you want to help people in circumstances similar to your own experiences? If, at some point in your life, you benefited from someone else’s donations—for example, through a scholarship, food pantry, counseling, or healthcare services—you may want to pay it forward. Perhaps you’re an animal lover or there is a specific current event that you feel passionate about, such as disaster relief, that can help narrow down your cause.

If you’re still having trouble selecting a specific cause, ask yourself whether you would prefer to donate to an organization that will directly impact your own local community or if you would prefer to focus on larger-scale issues. If you want to see change in your own community, is there something specific that stands out to you? Does your community have a large, unhoused population? Are the schools underfunded? Do the parks need an upgrade? Would you like to see a more significant local investment in the arts? If nothing immediately stands out to you, talk with friends and neighbors, or consider contacting your elected officials or local community impact groups for information on the most critical needs in your area. If you want to peruse local organizations, many states have great resources available to help. A couple of examples are Washington’s Give Big (www.wagives.org) and the Oregon Cultural Trust (www.culturaltrust.org).

If you don’t feel strongly about keeping your funds local, CharityNavigator.com is a wonderful resource that allows you to search by cause among thousands of charities. It also includes specially curated lists of organizations covering a variety of causes and current events. If searching among thousands of organizations feels overwhelming, Givewell.org is a nonprofit that highlights a few global charities that “save or improve lives the most per dollar.”

When considering impact, the size of the charitable organization can matter along with the size of your donation. A donation to a small organization could be the difference that helps that nonprofit keep its doors open for several more years, whereas it may just be a small drop in the bucket for a larger charity. On the other hand, large organizations can benefit from economies of scale, allowing them to reduce costs and deepen their impact. If you have concerns about the size of your donation or want to amplify it, try pooling it with like-minded people through a Giving Circle. You can start your own with a group of friends who share your values or join an existing group (find one in your area at www.philanthropytogether.org).

Once you have found an organization you are interested in donating to, you may want to familiarize yourself with it beyond its web page. I suggest scheduling a meeting with the executive director or board members for a one-on-one opportunity to hear the importance of the organization firsthand; learn about their current priorities, needs, and challenges; and have your questions answered. The larger the donation, the more personalized attention you can expect to receive. During this conversation, you can also determine whether you want your donation to be restricted to a certain area of their mission, directed to the endowment for a lasting impact, or made as an unrestricted donation the nonprofit can use as needed. For large donations, you may even be able to work with the organization to create a separate fund that aligns with the charity’s overall mission but can only be used for very specific purposes, which you determine.

One of the best ways to learn about a charity is to volunteer with them. You may want to start small by assisting with an event; but if you really want to understand the intricacies of their operations, challenges, and future path, joining the board will give you considerable insight and make your donation even more fulfilling because of your personal connection. I have certainly found this to be true in my work with the Eugene Education Foundation. As the mother of a student, the wife of a principal, and a board member, I feel very connected to the mission and know that our donations are going to support a worthwhile cause.

It is also important to make sure any organization you plan to donate to is a legitimate nonprofit and that they will use your donation responsibly. You can independently review its Form 990, financials, and annual report, or you can use one of the many online tools that rate charities based on this research. A few popular sources are guidestar.org, charitynavigator.org, and charitywatch.org.

Don’t forget to consult with your financial planner about the amount you plan to donate and the most effective giving method. I enjoy supporting my clients’ generosity and empowering them to donate, but part of this process is considering the impact gifts will have on other financial goals. By discussing the various giving methods, we can often help increase tax savings, which can allow you to donate even more. For more information on charitable giving tax strategies, refer to this article. To learn more about our process for incorporating your charitable goals into your overall financial plan, read our downloadable Guide to Living Fully in Retirement.

As you research, volunteer, have meetings, and write checks, don’t forget to reflect on the enjoyment of giving. It is a privilege to be in a position to help nonprofits and positively impact others. In fact, studies have shown that philanthropy helps people achieve a greater sense of personal satisfaction and is even closely aligned with living longer. That’s something we can all feel good about!

Disclosure: All opinions expressed in this article are for general informational purposes and constitute the judgment of the author(s) as of the date of the report. These opinions are subject to change without notice and are not intended to provide specific advice or recommendations for any individual or on any specific security. The material has been gathered from sources believed to be reliable; however, Merriman cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Merriman does not provide tax, legal, or accounting advice, and nothing contained in these materials should be taken as such.

Can You Afford to Spend More and Give More? You Might Be Surprised by the Answer!

by Geoffrey Curran | Mar 21, 2023 | Advisors, Ask Merriman, Charitable Giving, Family Talk, Geoff Curran, Goal Planning, Retirement Savings, Tech Focus, Wealth Enhancement

When I started my career in financial planning over 12 years ago, I discovered a deep passion for helping others navigate important life decisions such as retirement. What I didn’t realize at the time was just how difficult it can be for clients to feel comfortable spending money and giving away their wealth to family or charities they feel good about (and the regret that can come later in life by these decisions). I’ve come to term this as “financial immortality,” which is quite common among clients and was the inspiration for writing a new eBook, Merriman’s Guide to Living Fully in Retirement: How to Feel Comfortable Spending and Giving More.

No matter where you are on your financial journey, this new book covers topics and strategies suggested by our advisors to help you Live Fully in retirement. Whether you are currently retired, soon to be retired, or just looking ahead to the future, you can learn about options and make smart decisions that may enable you to spend more and give more. Perhaps you can make that vacation home purchase you have always dreamed of. Maybe starting a home-based business to dabble in during retirement is within reach. Or perhaps you’d like to spread your wealth across the family. Maybe there is a cause you’d like to support in a meaningful way. The giving part can be the act of gifting resources to loved ones or to charitable organizations. The point is, with the right plan of action, you can likely do more with your money!

A client of mine passed away in her late 90s with enough resources to survive two to three additional lifetimes relative to her spending needs. While her heirs were grateful for their inheritance, they kept sharing versions of the same story: “Aunt Susan always lived so frugally and was never comfortable with spending money. I wish she had traveled more.” From my conversations with her, I know she wished she had too.

Another client of mine reached financial independence in his mid-40s with three children. The problem was that each year he kept moving his own personal goalpost, pushing him to continue to work in a high-pressure role that he didn’t enjoy anymore. It took several planning sessions to build his comfort around the plan, and he was able to step away to spend more time with his family and work on something that he was actually passionate about.

If you recognize traits like these in yourself or someone you care about and want to explore ways to positively change attitudes about saving, spending, and giving, we can help! We are happy to share our new eBook, Merriman’s Guide to Living Fully in Retirement: How to Feel Comfortable Spending and Giving More.

Learn more about:

defining financial immortality and the importance of having a financial plan to help determine if you can afford to spend more and give more
spending and giving as it relates to different withdrawal rates and methods and from which account to withdraw
actionable strategies to help you save on taxes, donate to charity, and how best to transfer wealth to your family
common roadblocks or distractions that clients encounter

This book offers great perspective as a collaborative effort from our team of Merriman advisors. To help explain these strategies, each section is filled with real-life examples from over 200 years of our collective experience, including stories from the following advisors: Jeff Barnett, Tyler Bartlett, Aimee Butler, Paige Lee, and Paresh Kamdar. CLICK HERE to get your copy!

Do you need help figuring out if you can afford to spend more and give more? Schedule a time with a Merriman advisor to build your own personalized plan and assessment because we truly enjoy helping others LIVE FULLY in retirement.

Disclosure: All opinions expressed in this article are for general informational purposes and constitute the judgment of the author(s) as of the date of the report. These opinions are subject to change without notice and are not intended to provide specific advice or recommendations for any individual or on any specific security. The material has been gathered from sources believed to be reliable, however Merriman cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Merriman does not provide tax, legal or accounting advice, and nothing contained in these materials should be taken as such.

What Should I Do With My Old 401k?

by Tyler Bartlett | Feb 10, 2023 | 401k, Ask Merriman, Retirement Savings, Tech Focus, Tyler Bartlett, Wealth Enhancement

Whether you are part of a recent layoff or are giving your two weeks’ notice, life can be stressful during a job transition. Moving on can be bittersweet as you gather your personal items and turn over keys, ID badges, or a laptop while saying goodbye to co-workers and friends as you head into the next chapter of your life.

If you have been recently laid off, life is probably a bit more stressful as you may not have the next job already lined up. You may be fearful and anxious as many major employers, particularly in the tech industry, are currently announcing planned layoffs and/or are in a hiring freeze. However, this may be an opportunity to take a long overdue vacation or a brief sabbatical—or even try your hand at something new.

Whether you chose to make this change or it was forced upon you, this is a busy and often confusing time as you transition between jobs. It may be tempting to delay (and even easier to completely overlook) one of the most important decisions about your financial life: what should you do with your old 401(k)?

When it comes to changing jobs and what to do with your old 401(k) account, you have many options available to you.

One option is to maintain the status quo and leave the account with the old employer (if plan rules allow you to do so). However, you should avoid leaving a trail of “orphaned” 401(k) accounts in the wake of your professional career. Having orphaned accounts can limit your ability to stay present within those investments and make administrative updates.

You could also cash out the balance, which typically would not be recommended unless your financial circumstances make it an attractive option. Cashing out a 401(k) plan triggers a taxable event and potentially causes you to have to pay penalties for early withdrawal.

Alternatively, you could roll the old 401(k) balance into a traditional IRA, enjoy a greater range of investment options, and potentially save on fees. If you go this route, you will need to make important decisions about what kind of account to open, how hands-on you want to be, and which brokerage firm will handle your account.

You might also consider rolling the old 401(k) into your new 401(k) plan if that is allowed per the plan rules.

We will now explore each option in more detail and look at additional reasons you might consider one option over another given your specific situation and desired outcome.

Option 1: Do nothing

Given all that is going on now, you may not feel like you have a lot of time or energy to do anything with your old 401(k). At a minimum, you will want to look at your plan to compare the investment options available to you, along with the associated fees. You may choose to leave everything in your old plan if you have a good selection of low cost investment options that span all the major asset classes like US Large Cap Stocks, US Value Stocks, US Small Cap Stocks, Real Estate, International Large Cap Stocks, International Value Stocks, International Small Cap Stocks, Emerging Markets, High Quality Short-term Bonds, High Quality Intermediate-term Bonds, and Treasury Inflation Protected Securities.

Some plans may even have access to asset classes that are not available in your new 401(k) or a Rollover IRA. For example, Boeing has access to a Stable Value Fund, TIAA has access to a unique private real estate portfolio, and Amazon has access to a lower cost Vanguard Institutional Index fund.

If you are between 55 and 59 and are planning to take a sabbatical or retire, you may want to review the details of your former 401(k) plan, as you might be able to access the funds penalty free.

Most employer-sponsored retirement plans, such as a 401(k), qualify under the Employee Retirement Income Security Act (ERISA) and are generally protected from creditors, bankruptcy proceedings, and civil lawsuits. Depending on the state in which you live, an IRA or other non-ERISA plan may, or may not, be protected from creditors. If you are at risk of creditors pursuing you, you will want to seek out legal counsel from an attorney who understands the nuances of your state, as the laws can be quite complex.

If your former employer was a publicly traded company and you own company stock in your old 401(k) plan, you have another item to consider. The net unrealized appreciation (NUA) of your company stock is the difference between your cost basis (or what you paid for the stock) and its current market value. Under the current NUA rules, employees can roll over the portion of their 401(k) invested in company stock to a brokerage account (not a retirement account) and pay tax at long-term capital gains tax rates rather than ordinary income rates when the shares are sold. It does not always make sense to use this strategy or to keep employer stock in your retirement plan. You will need to carefully weigh the pros and cons.

Inertia may seem like the easy choice. However, you might be surprised to find out that doing nothing may still require work on your part.

Remembering your old 401(k) account looks easy enough when you have just changed jobs. But if this is your default solution every time you change jobs, then you may be leaving a slew of orphaned 401(k) accounts in several companies over your career. A decade or two later, it may be difficult to remember where those accounts are—or that they even exist.

You will also need to monitor any changes to the investment lineup and cost structure within the old plan. It is important to note that employer-sponsored retirement plans like a 401(k) are not governed by your will or trust, and you will need to update your beneficiaries in the event of a marriage, divorce, or other major life events to ensure your 401(k) is inherited by the individual(s) you desire.

Finally, you will want to take a deeper dive beyond the basic fees for the investments within your 401(k) to consider how much it will cost you to keep your funds where they are. Most 401(k) plans have three basic types of fees: administrative, individual, and investment fees. The investment fee is how much it costs to invest in a fund. If your old plan doesn’t offer index funds, you’ll almost certainly pay higher investment fees. The administrative fee covers various costs of running the plan. These include costs like statement processing fees, web hosting fees, and customer service fees. In some cases, there may be “hidden” fees, such as wrap fees or revenue sharing arrangements. The individual fees, such as withdrawal fees or loan processing fees, apply to special plan features that a participant may opt to use.

Most investment accounts have fees associated with them. Your task is to make sure that you are getting a fair level of investment management service in exchange for the fees that you pay. Some 401(k) plans are more competitively priced than others, so you will need to review the details of your situation and a few alternatives before you can make a smart choice.

Possible Advantages:

Doesn’t require any effort or time at the moment
Retirement savings continue to grow tax-deferred
Might have unique or lower cost investment options
Potential for penalty-free withdrawals after age 55
Enhanced protection from creditors
Might have special tax treatment for company stock

Possible Disadvantages:

Must stay engaged with any changes within the plan
Lack of full transparency for all fees
Limited investment options
Remember to update beneficiaries
Multiple sites to log into and statements to organize

Option 2: Cash out

Let’s start with a small bit of good news. The most obvious (and possibly the only) benefit of taking a full distribution from your old 401(k) plan is getting your money immediately. If you are in dire financial straits with no other options, this may be something to consider. However, that distribution will come with a price tag.

If your account holds pre-tax money, the IRS is going to treat the distribution as taxable income to you. You will potentially owe federal and state income tax on your distribution. Keep in mind that depending on your taxable income in relationship to tax income brackets, a cash-out distribution may push you into a higher tax bracket, which means that a portion of your income for the year will be taxed at a higher rate.

If paying income taxes on your distribution isn’t punishment enough, in most cases you may also have to pay a 10% early withdrawal penalty if you are under age 59 ½. Unless you have specific plans for how you will use this money, remember that you will receive less than the total account balance after accounting for income taxes and penalties. There are a few exceptions that may allow you to avoid the 10% early withdrawal penalty.

If you change your mind about the cash out, you have 60 days to deposit the distribution into another qualified plan or a traditional IRA. This is called an “indirect rollover.” Within 60 days, you will need to deposit the cash you received plus any taxes that were withheld into a qualified retirement account. You are only allowed to do an indirect rollover once every rolling 12 months.

Possible Advantages:

Might need the cash if you’re facing extraordinary financial needs
Potential for penalty-free withdrawals after age 55

Possible Disadvantages:

Subject to federal tax and a 10% early withdrawal penalty
Your money is no longer growing tax-deferred
Might severely impact your ability to retire

Option 3: Direct rollover to an IRA

If you don’t want to cash out and potentially face a tax bill, but you also don’t like the thought of being tethered to your former company, one option is to do a direct rollover from your old 401(k) to a traditional IRA.

IRAs generally offer far more investment options than a typical 401(k) plan. With an IRA, you may get access to many more mutual funds than you would have in a 401(k) plan. You may also invest in individual stocks and bonds, exchange-traded funds (ETFs), and certificates of deposit (CDs). Depending on your investment preferences and goals, that degree of flexibility can potentially make a difference.

As you look at IRA fees, keep in mind that some custodians have asset-based fees (meaning you pay a percentage of the amount of money in your IRA), while other custodians have transaction-based fees, which you incur each time you buy or sell investments. Some investment options may have no additional trading or transaction fees. Be sure to read the fine print and estimate what a typical annual fee on an account with your size and activity would look like.

In general, assets in your IRA have some protection if you file for bankruptcy, but they are not necessarily protected from creditors. Whether or not your IRA offers creditor protection depends on your state of residence. Research your residency state for more details and seek out legal counsel from an attorney who understands the nuances of your state, as the laws can be quite complex.

Possible Advantages:

Retirement savings continue to grow tax-deferred
Wider range of investment options available
Consolidation of retirement plans
Greater control and visibility of the fees you are paying
Possibly lower expenses than your 401(k)

Possible Disadvantages:

Possibly higher expenses than your 401(k)
May lose special tax benefits on company stock

Option 4: Direct rollover to your new 401(k)

If your new employer offers a 401(k) plan that accepts direct rollovers from other 401(k) plans, you may opt to take this route. But be sure to ask the question first, as not all plans accept rollovers.

The main benefit of choosing this option is less administrative hassle for you. All your employer-sponsored retirement plan assets will be in a single account. That means less paperwork, fewer statements, fewer passwords, and fewer investment options to align. It will also make it easier to maintain proper beneficiaries.

The option to roll your old 401(k) into your new 401(k) gives you the benefit of simplicity. Instead of updating investments or risk preferences in multiple accounts, you can do it in one account.

However, that only works if you are satisfied with your investment choices. Research whether your new 401(k) offers investment options that you find attractive. Many employers offer excellent choices inside their 401(k) plans while others do not. Perhaps you want the ease and low cost of investing in index funds but your new plan only offers mutual funds that are run by a portfolio manager. Or maybe you find the plan rules to be too restrictive for your liking.

Possible Advantages:

Retirement savings continue to grow tax-deferred
Consolidation of retirement plans
Might have unique or lower cost investment options
Potential for penalty-free withdrawals after age 55
Enhanced protection from creditors
Might be able to borrow against the new plan

Possible Disadvantages:

Must stay engaged with any changes within the plan
Lack of full transparency for all fees
Limited investment options

There is no one-size-fits-all path for what to do with your old 401(k). Choose what best fits your financial goals and resources. Your decision should also account for how hands-on (or hands-off) you wish to be in your investing, how much time you are willing to dedicate to reviewing your accounts and making course-correcting decisions, along with researching the investment vehicles that are available in each plan or account.

At the end of the day, any of these options may be right for you. What’s most important is that you make a strategic choice about what to do—and that you complete the rollover correctly to avoid unnecessary taxes.

If you have additional questions or if you would like help with keeping your retirement savings on track through your job and life changes, reach out and schedule some time with one of our advisors today!

Disclosure: All opinions expressed in this article are for general informational purposes and constitute the judgment of the author(s) as of the date of the report. These opinions are subject to change without notice and are not intended to provide specific advice or recommendations for any individual or on any specific security. The material has been gathered from sources believed to be reliable, however Merriman cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Merriman does not provide tax, legal or accounting advice, and nothing contained in these materials should be taken as such. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. As always please remember investing involves risk and possible loss of principal capital and past performance does not guarantee future returns; please seek advice from a licensed professional.

The Appeal of Becoming a Snowbird

by Merriman | Dec 27, 2022 | Goal Planning, Living Fully, Preparing for Retirement, Tech Focus, Wealth Enhancement

Whether you live near us in the Pacific Northwest and endure month after month of gray skies and cold rain or elsewhere in the US and grow weary of snow and slush during winter, you may want to explore the idea of becoming a snowbird! Snowbirds are people who migrate to warmer areas during colder seasons in their hometowns, ideally for the entire winter season.

Once a term associated with retired, older adults who really feel the sting of a brisk winter, these days the life of a snowbird can be just as appealing to younger people, especially those with flexible career options.

How to Become a Snowbird This Winter

Does the term snowbird sound appealing? Have you ever considered heading south to warmer landscapes for the winter? Here are some considerations and steps to keep in mind before taking the plunge!

1. Choose a Place That Suits Your Lifestyle

Do you like to golf in your downtime? Boca Raton might just be the ticket, then. Or maybe you prefer lounging on the beach—somewhere like Hawaii might suit you better.

Before deciding to migrate for the winter, you need to know what will make your winter comfortable and enjoyable. Arizona might not be for you if you don’t like dry heat. Take into account your social preferences, the activities you enjoy, and what kind of climate and humidity you prefer. Also consider if you prefer a bustling environment or someplace quieter and more low key. A care-free condo may be just the ticket, or you may prefer a secluded beach bungalow. There are plenty of options, so have fun doing your research!

2. Don’t Overcommit

Putting all those snowbird eggs in one basket won’t get you very far. It’s best to have a trial period before you commit to the snowbird lifestyle or a migration spot.

Look for properties you can rent for two or three months to get a feel for the place before purchasing a property. You might end up migrating to several different areas before you make your final decision. The beauty is, the decision’s all yours!

3. Establish Remote Management for Your Bills

You need to be able to manage your energy bills at home while you’re away—you can’t simply leave the mail unattended. So, before you embark on the snowbird journey, ensure you can receive your energy bills in email format. It would help if you did this for any other accounts you might owe during the winter.

4. Protect Your Home

One of the drawbacks of the snowbird lifestyle is anxiety. The home you leave behind will be completely unattended and vulnerable to damage. To put your mind at ease, consider investing in a home surveillance system, comprehensive insurance coverage, and a trusted attorney. Or perhaps to arrange for a friend, neighbor, or family member to check in on your property periodically. In some areas, like California, lawyers are not allowed to represent you in small claims court, so it is best to research the local laws to protect your home.

5. Pet Passports

Old Rover shouldn’t stop you from enjoying winters in the sun. Many pet owners find it too difficult to leave their pets behind for long trips, so you should get your pet passports sorted and find pet-friendly airlines to ensure you and your furry friend have a pleasant flight. If you drive to your sunny destination, don’t forget to bring along some familiar-scented items from home to reduce pet anxiety along the way.

6. Expand Your Network

Though FaceTime can keep you connected to your loved ones during the winter, you’ll need more than that to keep you occupied. Check out social opportunities where you’re going; perhaps there is a community center with classes and activities, a local gym, fitness trails, or an art center. There are many apps like Meetup that can help you to connect with new people as well.

7. Be Careful About Offering Open Invitations

Your loved ones may be envious of your winter staycation, and extending an open invitation is tempting. If you have too many visitors, this can draw from your relaxation time. You may find yourself spending too much time cooking, cleaning, and accommodating guests. To keep things relaxing, keep the visitors at a minimum. Alternatively, consider arranging for a few specific times when family or friends can gather collectively during the holidays or special occasions rather than opening your sunny spot to visitors every weekend.

8. Contact a Financial Advisor to Make a Plan

At Merriman, we get tremendous joy out of helping you determine a realistic pathway to your dreams. So if you’re thinking of heading south for the winter to a second home or rental property where you can soak up the sun and relax (or work your job remotely) during the winter months, let’s chat about making it a reality for your family. We believe in enabling you to LIVE FULLY, and it’s never too soon to begin!

Disclosure: All opinions expressed in this article are for general informational purposes and constitute the judgment of the author(s) as of the date of the report. These opinions are subject to change without notice and are not intended to provide specific advice or recommendations for any individual or on any specific security. The material has been gathered from sources believed to be reliable, however Merriman cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Merriman does not provide tax, legal or accounting advice, and nothing contained in these materials should be taken as such.

Merriman clients sure do know how to live fully!

by Merriman | Dec 13, 2022 | Goal Planning, Tech Focus, Wealth Enhancement, Why Merriman

We are so delighted to share some amazing visual stories of our client families LIVING FULLY! We asked you to share and you answered – with wonderful images of you living your dreams.
Stay inspired and thank you for sharing!

Disclosure: All opinions expressed in this article are for general informational purposes and constitute the judgment of the author(s) as of the date of the report. These opinions are subject to change without notice and are not intended to provide specific advice or recommendations for any individual or on any specific security. The material has been gathered from sources believed to be reliable, however Merriman cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Merriman does not provide tax, legal or accounting advice, and nothing contained in these materials should be taken as such.

Financial Football – Who’s on Your Team?

by Frank McLaughlin | Nov 29, 2022 | Advisors, Frank McLaughlin, Goal Planning, Reasons Why Merriman, Tech Focus, Wealth Enhancement, Why Merriman

Having been born and raised in Seattle, the start of fall is always a bittersweet feeling for me. I get sad that our short but beautiful PNW summer is ending, but I love that football season is beginning. I have seen many terrific and many not-so-great Seahawks teams over the years, but I always continue to show up as a fan. After having watched the start of our season thus far, one word comes to mind: uncertainty. Over the past few years, we’ve lost cornerstone players to other teams and to retirement. This truly reached a new level when we traded away our star quarterback this past summer. Those players had brought us over a decade of stability and success. All we knew was winning, and we easily left behind the memories of the 2008 and 2009 seasons where we had 9 wins and 23 losses.

I can’t help but notice the parallels between the Seahawks and the financial markets in 2022. This year has been full of uncertainty and volatility for investors. After more than a decade of mostly positive returns, we easily forget the pain of going through the short but sharp decline of 2020, the financial crisis of 2008, and the many bear markets before that. It’s human nature to do so. So, as we are currently in the midst of a difficult season, how do we put together the right team to win you a super bowl trophy (or at least help you achieve your goals)?

Your financial advisor will be your quarterback. You and your advisor must create the proper game plan together for what you are looking to achieve. They will be responsible for knowing exactly what play every teammate is supposed to carry out, and you need to keep in constant communication as the game progresses in order to make the necessary adjustments.

Your research and investment team will be your offensive line. They are critical to protecting your assets and marching your team down the field. As your research team watches the markets, like a great coach, they need to understand when to bring an additional player to the line for extra strength—especially when churning through tough, muddy times. They also need to understand when to send an extra player such as a tight end out on a passing route for additional firepower for your offense.

Many other players are vital to the functioning of your team. These positions are filled by your client service members, your trading department, internal operations, and outside experts like accountants and attorneys. If just one of these pieces is lagging, then your roster will be exploitable.

It is important to call out that not every drive down the field is going to result in a touchdown, much like financial markets won’t generate positive returns every year. But if you can put together an excellent roster, minimize mistakes, and follow a well-crafted dynamic game plan, then you put yourself in a position for success.

Are you ready to have a team that supports you? I really enjoy watching football, but I LOVE helping clients make it to their financial goal line. Call me this season, and let’s strategize on some plays!

Disclosure: All opinions expressed in this article are for general informational purposes and constitute the judgment of the author(s) as of the date of the report. These opinions are subject to change without notice and are not intended to provide specific advice or recommendations for any individual or on any specific security. The material has been gathered from sources believed to be reliable, however Merriman cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Merriman does not provide tax, legal or accounting advice, and nothing contained in these materials should be taken as such.