Focus on What You CAN Control
Recent events reminded me of our commentary from last April, when we were in the initial throes of the pandemic here in New Jersey.
There are certain aspects of our financial lives over which we have some control – our career and how long we work, or how much we spend or save. And there are other aspects which we cannot control, and not only the daily ups and downs in the stock market, but also the impact of ongoing Covid-19 cases on the economy, and even last week’s jobs report.
Add in when and where we get to see family and friends, when our kids might get back to in-person classes, political divisions and misinformation and the fallout from the Presidential election, and it has become exhausting.
At some point, however, life will go on and the current crises will be something that we look back on in history, like all of the other crises that came before it. There is a lot of hope that, with significant, additional vaccinations, our ability to return to pre-pandemic behaviors and spending patterns will arrive and that this will provide significant tailwinds for the economy.
In the meantime, it’s still ok to use this time constructively. In fact, we’ve been having conversations on a daily basis with many of you that have nothing to do with portfolios or stocks and bonds.
While we expect that there will be changes to the tax code as a result of a new administration, these may take some time and they won’t impact all of us the same way. So there continue to be other areas to focus on while you can.
Some folks who have previously engaged ACM for financial planning have asked to have their retirement cash flow projection re-run. And some, including those who could never seem to make time for it, are asking to run one for the first time.
Others have inquired to make sure that all of the beneficiary designations on their retirement accounts are in place and correct. Several have called to discuss their estate plan and to ask for a recommendation to an attorney who can draft estate planning documents.
We have had requests to put life insurance protection in place in the event of a loss of a primary wage earner’s income and some folks finally find themselves with the time to review all of the life insurance contracts that they have accumulated over the years. This is an easy one to continue to put off when you’re busy and focused elsewhere.
If your home reading this on the “screen” in your hands and you haven’t shopped your homeowners, auto or umbrella insurance in the last few years, then just type it in and search. Any savings you can achieve in the current environment can only help.
If you didn’t take required minimum distributions (RMD) from your retirement accounts in 2020 (because you didn’t have to in 2020), then make sure you are set up to resume your RMDs in 2021. This applies not only to those who were 70.5 years old by July 1, 2019, but also those who had already inherited IRAs.
It doesn’t have to be complicated. We continue to have conversations simply about what to do with any savings or idle cash on hand.
At some point, we’ll all be reminiscing about the impact of COVID-19 on your friends and family and the impact it had on our portfolios at the time.
For those of you who can still muster the resolve to focus on what you can control, we don’t want you looking back as if you’ve missed this opportunity to get your other important priorities in order. It’s still a good time to target those items that have been hanging at the bottom of your priority list. It can help redirect your energy away from the 24/7 negative news feed, and in the long run, you’ll have something positive to take away.
ACM Wealth has the collective wisdom of many talented financial planners and the experience of working for years with clients just like you. Please call us or email your wealth advisor with any questions you may have.
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