The value of financial advice isn’t always obvious from the get-go. Yet in many cases, the benefits of working with the right financial advisor far exceed the cost.

As your net worth increases, managing the details of your personal finances can become increasingly complex and time-consuming. Not to mention, mistakes can be costly.

Perhaps this is why 95% of people who work with a registered advisor believe it’s worth the money, according to a recent MagnifyMoney survey. Yet despite the potential benefits of professional advice, cost is still one of the top reasons people choose to go it alone.

Indeed, the benefits of working with a financial advisor aren’t always obvious—especially at the outset of the relationship. But before committing to a do-it-yourself approach, be sure to consider the potential value of financial advice.

Quantifying the Value of Financial Advice

The value of financial advice depends on many factors, including your financial advisor, the complexity of your situation, and your financial goals. Still, there’s a growing body of research aimed at quantifying the benefits of sound financial planning.

For example, research from Morningstar shows that “intelligent financial planning decisions” can add the equivalent of 1.59% to a retiree’s annual arithmetic investment returns.

Meanwhile, a variety of other studies focus on the intangible benefits of working with a financial advisor. For instance, 86% of women say that having a professional manage their investments makes life less stressful, according to Fidelity’s 2021 Women and Investing Study.

The Benefits of Working with a Financial Advisor

To be sure, the value of financial advice typically becomes increasingly evident over time. However, the potential benefits of working with a financial advisor often extend beyond quantifiable metrics. In some cases, you may notice the intangible benefits of professional advice first.

Benefit #1: A Financial Advisor Can Help You Maximize Your Wealth

After trustworthiness, a strong investment track record is the main reason clients choose a financial advisor, according to data from Qualtrics. Yet the value of financial advice depends just as much on not losing money as it does on making money.

In other words, many people can get lucky when it comes to picking investments. However, identifying and managing the various risks that accompany these investments requires experience and expertise.

For example, the right financial advisor will help you preserve more of your wealth by avoiding high-cost funds and other investments. Due to the power of compounding, high expenses can eat away at portfolio returns over time. This, in turn, can erase a significant portion of your nest egg.

In addition, annual tax-loss harvesting and portfolio rebalancing can help you protect your financial resources long-term. These strategies can help mitigate unnecessary losses due to capital gains taxes and excess portfolio risk.

Lastly, a financial advisor can help you identify and implement the right estate planning strategies to preserve your assets for generations to come. These strategies may include proper asset titling, asset location, and insurance planning—all of which may be necessary to achieve your long-term financial goals.

Benefit #2: A Financial Advisor Can Help You Avoid Costly Mistakes

Successful investors aim to buy low and sell high. Yet research shows that in practice, the average investor does just the opposite.

This is because humans are hard-wired to make irrational decisions. Often, the value of financial advice is that someone less emotionally tied to your money can help you avoid such costly mistakes.

Consider that the S&P 500 Index generated an annualized return of 10.65% over the last 30 years. Meanwhile, the average equity investor earned an annualized return of just 7.13% over the same period. If you had invested $100,000 at the beginning of the period, that’s a difference of nearly $1.3 million over 30 years.

According to market researcher Dalbar, this disparity can largely be attributed to investors buying and selling at the wrong times. In other words, when left to their own devices, investors tend to buy into greed and sell into fear. This only works against them in the long run.

These mistakes may seem harmless in the moment. But over time, they can mean the difference between achieving your goals and falling short.

The right financial advisor can help you develop a long-term investment plan and stick to it—especially during periods of discomfort—so emotionally driven decisions don’t erode your nest egg.

Benefit #3: A Financial Advisor Can Save You Time, Energy, and Stress

Lastly, working with a financial advisor can save you time, energy, and useless worry. In some cases, it can even improve your overall happiness level.

According to a recent survey from Herbers & Company, clients who work with a financial advisor tend to be happier than those who don’t. Moreover, happiness levels tend to increase alongside net worth.

Specifically, researchers found that happiness levels significantly improved for financial advisor clients with at least $1.2 million in assets. Based on the study’s findings, this is because higher-net-worth individuals and families are more likely to suffer from decision paralysis.

Ultimately, personal financial management requires time, energy, and expertise. Delegating these decisions to a trusted financial advisor can help you protect your resources, so you can focus on what you love and do best.

For many affluent individuals and families, this is the true value of financial advice.

Benchmark Wealth Management Can Help You Discover the True Value of Financial Advice

As a fiduciary financial advisor, Benchmark Wealth Management provides our clients with holistic financial planning and investment management solutions. We strive to make your life better by offering unmatched client care and attention.

If we can help you develop a long-term financial plan and discover the value of financial advice, please don’t hesitate to get in touch. We’d love to hear from you.

 

The views expressed are those of the author as of the date noted, are subject to change based on market and other various conditions. Material discussed is meant to provide general information, and it is not to be construed as specific investment, tax, or legal advice

 

About Rick

Richard W. Stout III is managing director of Benchmark Wealth Management, LLC, with 25 years of experience in the financial industry. He specializes in financial planning and asset management for individuals, families, and institutions seeking to build and monitor durable and sustainable plans for their financial futures. Rick is a Certified Financial Planner™ professional and holds the Accredited Investment Fiduciary® (AIF®) designation. He obtained his MBA from Rensselaer Polytechnic Institute and his BA in Economics and Anthropology from the University of Connecticut. Rick has earned a Master of Science degree in Personal Financial Planning from the College for Financial Planning. He has extensive background experience in lending, credit review and analysis, and real estate and partnership management. Learn more about Rick by connecting with him on LinkedIn.

About Thomas

Thomas J. Britt is managing director of Benchmark Wealth Management, LLC, with 20 years of experience in the financial industry. He specializes in executive financial planning, retirement planning, investing, as well as the management of trusts and endowments. Thomas is a CERTIFIED FINANCIAL PLANNER™ professional. He holds the Master Planner Advanced StudiesSM, MPAS®, Certified Investment Management Analyst® (CIMA®), and Chartered Retirement Planning Counselor℠, CRPC® designations. Thomas earned a Bachelor of Science in Finance from the University of New Haven, an MBA in financial technology from Rensselaer Polytechnic Institute, and a Master of Science in Personal Financial Planning from the College for Financial Planning. He is also a proud veteran of the United States Navy Submarine Force. Learn more about Tom by connecting with him on LinkedIn.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure site, www.adviserinfo.sec.gov/firm/160192

Securities offered by Registered Representatives through Private Client Services, Member FINRA, SIPC in the following states: AZ, CA, CT, FL, KY, MA, ME, MI, MN, NH, NJ, NY, RI, TX. (Securities-related services may not be provided to individuals residing in any state not previously listed.) Advisory services offered through Benchmark Wealth Management, LLC a Registered Investment Advisor. Benchmark Wealth Management and Private Client Services are unaffiliated entities.

In this article, we’re sharing five tips for surviving a bear market.

By Richard W. Stout III and Thomas Britt

It’s been a trying year for investors so far. In June, the S&P 500 Index officially, albeit temporarily, entered bear market territory. The index then went on to return over 9% in July, marking its strongest month since November 2020. Meanwhile, record-high inflation continues, and interest rates are on the rise.

Indeed, recession fears are mounting as investors grow increasingly concerned about the Fed’s ability to achieve a soft landing. Yet the fate of the U.S. economy may ultimately depend on variables outside of the Fed’s control—for example, Russia’s ongoing war in Ukraine and global supply chain disruptions.

No one can predict with certainty how the rest of this year will unfold. However, since World War II, the U.S. has experienced a bear market about once every 5.4 years. Meaning, no matter what the future holds, long-term investors would be wise to prepare for the possibility of a major market downturn.

Consider these five tips for surviving a bear market (and thriving over the long run):

#1: Focus on What You Can Control

Experience has taught us that long-term investors can be financially successful no matter how the market behaves. In other words, surviving a bear market comes down to focusing on what you can control—and ignoring what you can’t.

Here are a few examples of things you can control:

• Savings rate
• Retirement plan contributions
• Asset allocation
• Risk management

Savings Rate

First, consider giving your emergency fund a boost. Indeed, volatility and an uncertain economic future can affect more than just your investments.

A downturn may also mean layoffs, downsizing, and restructuring as companies revise their growth expectations. Having extra cash on hand can help you weather a potential financial setback without going into debt or prematurely dipping into your retirement funds.

Most financial planners suggest saving enough cash to cover at least three to six months’ worth of living expenses. However, depending on your circumstances, you may want to save more than the rules of thumb suggest.

Retirement Plan Contributions

Volatility can be scary, especially for those in or approaching retirement. As you watch your account balances fluctuate, you may feel the urge to pull back, stop investing, or even go to cash. Yet when it comes to surviving a bear market, attempting to time the market rarely produces better results than staying the course.

One way to stay on track towards your goals is to automate your retirement plan contributions. Continuing to contribute during a bear market – or even increasing your contributions – will position these dollars for growth when the market rebounds.

Asset Allocation & Risk Management

Asset allocation refers to the mix of investments you hold based on your financial goals and tolerance for risk. Studies show that asset allocation can be one of the biggest determinants of portfolio performance over time.

As asset classes perform differently, your portfolio can drift from its target asset allocation. Depending on how far it drifts, your portfolio may be too risky—or not risky enough—to achieve your goals.

We periodically rebalance your portfolio to its target weights to help ensure you’re not taking on unnecessary risk in the event of a bear market. This can also help ensure you’re well positioned for the ensuing recovery.

#2: Look for Tax Planning Opportunities

It’s never fun to watch your investments lose value, even if the losses are only on paper. However, surviving a bear market may mean taking advantage of the tax planning opportunities it often creates.

For example, you may want to consider harvesting losses to offset capital gains and reduce your year-end tax bill.

Selling an investment that’s worth more than what you originally paid for it results in a capital gain. In most cases, this gain is subject to your ordinary income tax rate or the capital gains tax (assuming you don’t hold the investment in a qualified account).

At the same time, you can sell investments that have declined in value below your cost basis to lock in losses. You can then use these losses to offset capital gains and reduce your tax liability. You can also carry unused losses forward to future years, making this a useful strategy even in years you don’t have gains.

Another tax planning strategy to consider during a bear market is a Roth conversion.

The IRS allows individuals—regardless of income—to convert a traditional IRA to a Roth IRA. The amount you convert is taxable at your ordinary income tax rate. Thus, taking advantage of this strategy during a bear market may help minimize what you owe Uncle Sam.

On plus side, any future withdrawals you make from a Roth IRA are tax-free, assuming you’re at least 59 ½ years old and meet the 5-year rule. Moreover, Roth IRAs have no required minimum distributions (RMDs). That means your funds can continue to grow tax-free throughout retirement until you need them.

While potentially valuable, tax-loss harvesting and Roth conversions can be complex tax planning strategies. A trusted financial advisor or tax professional can help you determine if these strategies make sense for you.

#3: Keep Bear Markets in Perspective

Market downturns can be hard to stomach, no matter how much investing experience you have. Nevertheless, surviving a bear market often requires investors to maintain a healthy perspective.

First, it’s important to remember that bear markets are normal. According to research from Hartford Funds, the S&P 500 Index has had 26 bear markets since its inception. On the other hand, there have also been 27 bull markets. While stocks lose 36% on average in a bear market, they gain 114% on average in a bull market.

Meanwhile, bear markets tend to be short-lived compared to bull markets. The average length of a bear market is 289 days, compared to 991 days for the average bull market. Over the last 92 years of stock market history, bear markets have comprised only slightly more than 20 of those years.

In other words, throughout history, stocks have risen 78% of the time. Remembering that stocks tend to rise far more often than they fall may help you keep challenging markets in perspective.

#4: Be Aware of Your Emotional Biases

Human beings are hardwired to make emotionally driven decisions. Unfortunately, emotional decision-making can be problematic when it comes to surviving a bear market.

The negative emotions you may experience in a bear market can leave you susceptible to overstating the risks of the situation because you are gauging it based on the strength of your feelings. Your fears may be amplified by stories of how bad things are and how much worse they may get. This can compromise your ability to assess the likelihood of future developments, with the strength of your feelings outweighing the strength of evidence.

Do your best to avoid whatever it is that provokes an emotional response. Turn off financial market news and check your portfolio less frequently. Avoid lengthy “what-if” conversations with people about the market and what may or may not happen next. It’s also wise to hold off on making any investment decisions, as these will likely be driven by the feelings you are experiencing.

Keeping your emotions in check can be challenging, especially when it comes to your money. But it’s not impossible—even in a bear market.

One of the best ways to avoid the pitfalls of emotional investing is to stick to your long-term financial plan in good times and bad. A comprehensive plan for your wealth removes emotion from the equation, so you can make smart decisions for your family and future.

#5: Surviving a Bear Market May Mean Asking for Help

Finally, if surviving a bear market feels like more than you can handle on your own, consider enlisting the help of a trusted financial advisor like Benchmark Wealth Management. We can help you develop a financial plan and investment strategy to keep you on track towards your financial goals. Additionally, we proactively recommend strategies to help you minimize your tax bill and ultimately achieve financial freedom.

To learn more about how we may be able to help, please contact us. We’d love to hear from you.

 

The views expressed are those of the author as of the date noted, are subject to change based on market and other various conditions. Material discussed is meant to provide general information, and it is not to be construed as specific investment, tax, or legal advice

 

About Rick

Richard W. Stout III is managing director of Benchmark Wealth Management, LLC, with 25 years of experience in the financial industry. He specializes in financial planning and asset management for individuals, families, and institutions seeking to build and monitor durable and sustainable plans for their financial futures. Rick is a Certified Financial Planner™ professional and holds the Accredited Investment Fiduciary® (AIF®) designation. He obtained his MBA from Rensselaer Polytechnic Institute and his BA in Economics and Anthropology from the University of Connecticut. Rick has earned a Master of Science degree in Personal Financial Planning from the College for Financial Planning. He has extensive background experience in lending, credit review and analysis, and real estate and partnership management. Learn more about Rick by connecting with him on LinkedIn.

About Thomas

Thomas J. Britt is managing director of Benchmark Wealth Management, LLC, with 20 years of experience in the financial industry. He specializes in executive financial planning, retirement planning, investing, as well as the management of trusts and endowments. Thomas is a CERTIFIED FINANCIAL PLANNER™ professional and holds the Master Planner Advanced StudiesSM, MPAS®, Certified Investment Management Analyst® (CIMA®), and Chartered Retirement Planning Counselor℠, CRPC® designations. He earned a Bachelor of Science in Finance from the University of New Haven, an MBA in financial technology from Rensselaer Polytechnic Institute, and a Master of Science in Personal Financial Planning from the College for Financial Planning. He is also a proud veteran of the United States Navy Submarine Force. Learn more about Tom by connecting with him on LinkedIn.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure site, www.adviserinfo.sec.gov/firm/160192

Securities offered by Registered Representatives through Private Client Services, Member FINRA, SIPC in the following states: AZ, CA, CT, FL, KY, MA, ME, MI, MN, NH, NJ, NY, RI, TX. (Securities-related services may not be provided to individuals residing in any state not previously listed.) Advisory services offered through Benchmark Wealth Management, LLC a Registered Investment Advisor. Benchmark Wealth Management and Private Client Services are unaffiliated entities.

By Richard W. Stout III and Thomas Britt

If you’re doing well financially, treating yourself occasionally or helping a loved one in need may be something that fulfills you and brings you joy. However, these actions can become problematic when they happen repeatedly and begin to take a toll on your financial life. To stay on track towards your financial goals while maintaining strong relationships with the people closest to you, it’s often necessary to set and maintain healthy money boundaries.

What Are Money Boundaries?

In general, boundaries define what you’re willing—and more importantly, unwilling—to accept from yourself and others. They provide a way to maintain your identity and wellbeing within your personal and professional relationships.

More specifically, money boundaries are the limits you set for your finances. In some cases, you may set financial boundaries for yourself. For example, you may have a personal budget that guides your spending each month.

In other cases, you may need to set money boundaries with others. This is especially true if you have people in your life who depend on you for financial support or relationships in which money frequently changes hands.

It’s important to note that financial boundaries aren’t the same thing as financial goals. However, the limits you set for yourself and others can play a major role in your ability to reach your financial goals and achieve financial freedom.

Why Are Financial Boundaries Important?

Among other factors, your upbringing and culture largely influence how you think and feel about money. For instance, if your parents had few limits around their finances, you may have difficulty setting healthy money boundaries yourself.

Setting financial boundaries is important for a variety of reasons. First, it helps prevent the people in your life from taking advantage of you. When family and friends know you have no limits when it comes to money, they’re more likely to ask for financial support.

Worse yet, some people may realize they can take from you without your permission. If you’ve ever loaned your credit card to a family member or coworker, you know what a slippery slope this can be.

Setting healthy limits is also important for your personal financial success. Indeed, you may have a responsible financial plan in place. However, if you’re constantly deviating from that plan to make impulse purchases or help loved ones, you’re likely not making much progress towards your financial goals.

Ultimately, setting and maintaining appropriate money boundaries is essential for your future financial success. Fortunately, if you’ve been lax about money in the past, it’s never too late to set limits for yourself and others.

How to Set Healthy Money Boundaries for Yourself

If you’ve never set money boundaries before, you may find it helpful to start by setting limits for yourself. It’s often easier to say no to yourself than to say it to others.

First, examine your personal financial habits. Are you disciplined when it comes to your money? Or do you have no idea where your money goes each month?

A quick look at your spending habits versus your income can help you identify potential areas for improvement. How much do you spend each month, and how much do you save? If you don’t have an emergency fund or retirement savings, that may be an indication that you’re overspending.

In addition, you may want to calculate your net worth. Put simply, your net worth equals your financial assets (cash, investments, and other property) minus your liabilities (debt).

Ideally, your net worth should increase over time as you accumulate wealth and pay down debt. If this isn’t the case—or your net worth is negative—you may need stronger money boundaries.

Once you’re aware of your current financial picture and habits, you can determine if you need to set new limits for yourself. For example, you may need to start tracking your spending more closely to avoid overspending. In some cases, you may want to take more extreme measures, like cutting up your credit cards.

You may also find that working with a financial advisor or coach is necessary. An experienced financial professional can help you set and enforce healthy money boundaries and financial goals, so you ultimately make better financial decisions.

Setting Healthy Money Boundaries with Others

After you’ve set clear money boundaries for yourself, the next step is to assess your money habits with others. In other words, how often are you giving or lending money to those around you without getting anything in return?

In some cases, giving or lending money to loved ones may not be a problem. For example, if your children are minors, their financial needs are likely built into your budget. Similarly, giving to your church or favorite charity may be a planned expense that doesn’t take a toll on your financial life.

On the other hand, you may have people in your life who are constantly taking from you in an unhealthy way. For instance, you may find yourself always treating certain friends to lunch, but they never return the favor. Or you may have family members who always need financial assistance but never seem to get back on their feet.

Setting money boundaries with others is necessary when their bad money habits or demands impede your financial progress. Many of us enable loved ones for far too long because we’re afraid to have a difficult conversation. Telling someone you care about “no” can also be guilt racking.

Still, it’s important to remember that failing to set firm boundaries with those around you doesn’t help you or them in the long run. If your goal is to be financially free one day, the best thing you can do today is learn to say no.

Communication Is Key

Lastly, be sure to communicate your new money boundaries to the people in your life who need to hear them. It’s always easier to stick to good habits when everyone knows the rules of the game.

For example, if your adult child has been living at home since they graduated college, they may not know that they’re taking a financial toll on your life. It may be helpful to have a calm discussion with them about how much they add to your monthly expenses. Then, you can let them know that you expect them to contribute going forward (or find their own accommodations).

At the same time, it’s important to be honest with others about why you’re saying no to them, whether it’s turning down a lunch invitation with a friend or telling a family member that you can’t lend them money. The more consistently you stand your ground, the less likely they are to test your limits.

A Trusted Advisor Can Help You Set and Maintain Healthy Financial Boundaries

If you find it difficult to stick to your new money boundaries, consider working with a trusted financial advisor. In addition to helping you set clear limits around your finances, an advisor can help you make better financial decisions and develop a plan that helps you achieve your financial goals.

Benchmark Wealth Management provides holistic financial planning services for high-net-worth professionals and retirees. To speak with a member of our team, please don’t hesitate to get in touch.

 

About Rick

Richard W. Stout III is managing director of Benchmark Wealth Management, LLC, with 25 years of experience in the financial industry. He specializes in financial planning and asset management for individuals, families, and institutions seeking to build and monitor durable and sustainable plans for their financial futures. Rick is a Certified Financial Planner™ professional and holds the Accredited Investment Fiduciary® (AIF®) designation. He obtained his MBA from Rensselaer Polytechnic Institute and his BA in Economics and Anthropology from the University of Connecticut. Rick has earned a Master of Science degree in Personal Financial Planning from the College for Financial Planning. He has extensive background experience in lending, credit review and analysis, and real estate and partnership management. Learn more about Rick by connecting with him on LinkedIn.

About Thomas

Thomas J. Britt is managing director of Benchmark Wealth Management, LLC, with 20 years of experience in the financial industry. He specializes in executive financial planning, retirement planning, investing, as well as the management of trusts and endowments. Thomas is a CERTIFIED FINANCIAL PLANNER™ professional and holds the Master Planner Advanced StudiesSM, MPAS®, Certified Investment Management Analyst® (CIMA®), and Chartered Retirement Planning Counselor℠, CRPC® designations. He earned a Bachelor of Science in Finance from the University of New Haven, an MBA in financial technology from Rensselaer Polytechnic Institute, and a Master of Science in Personal Financial Planning from the College for Financial Planning. He is also a proud veteran of the United States Navy Submarine Force. Learn more about Tom by connecting with him on LinkedIn.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure site, www.adviserinfo.sec.gov/firm/160192

Securities offered by Registered Representatives through Private Client Services, Member FINRA, SIPC in the following states: AZ, CA, CT, FL, KY, MA, ME, MI, MN, NH, NJ, NY, RI, TX. (Securities-related services may not be provided to individuals residing in any state not previously listed.) Advisory services offered through Benchmark Wealth Management, LLC a Registered Investment Advisor. Benchmark Wealth Management and Private Client Services are unaffiliated entities.

This time of year, financial planning may be the last thing on your mind. Yet before summer sets in, consider using this opportunity to recommit to your financial and estate plans.

By Richard W. Stout III and Thomas Britt

It’s hard to believe that the year is almost half over. It feels like just yesterday we were talking about end-of-year tax planning and setting goals for the year ahead. Indeed, time may be passing more quickly than any of us would like. Nevertheless, it’s important not to lose sight of our priorities—especially with the lull of summer closing in.

Of course, we firmly believe in taking time to disconnect and unwind by yourself or with loved ones. However, if your personal or financial circumstances have changed since the start of the year, consider taking a moment to revisit your financial and estate plans. By making any necessary changes now, you can enjoy peace of mind this summer, knowing your plans are aligned with your needs and goals.

Before recommitting to your financial and estate plans, ask yourself these three questions:

#1: Have my personal circumstances or family dynamics changed?

For many of us, life stood still during the pandemic—or it at least felt that way. Now, with life returning to normal, you may finally be moving forward with your pre-pandemic plans. That may include planning a wedding, expanding your family, or launching a new business in a less threatening environment.

At the same time, the pandemic forced many older Americans to reevaluate their retirement plans. Indeed, millions of baby boomers retired early due to the Covid-19 pandemic, either by choice or necessity. Meanwhile, many more workers have quit their jobs, changed jobs, or are looking for new jobs as The Great Reshuffle presses on.

Whether at home or at work, if your circumstances have changed, it’s important to revisit your financial and estate plans. First, an expansion of your family may prompt changes to your beneficiaries and other end-of-life wishes. In addition, any changes to your career path or retirement timeline may warrant a change to your savings rate and investment plan.

The bottom line is your financial plan is a living document that changes as you do. If you’ve experienced any major life changes since the last time you updated your financial plan, now may be the right time to revisit it.

#2: Have my financial goals changed?

Financial goals are often generic, especially if they’re way off in the distance. For example, you may be saving for retirement but have no concrete plans for when you’d like to retire. Or perhaps you dream of buying a vacation home, but you’ve never taken the time to decide where or how.

There’s nothing wrong with having open-ended plans. However, as your circumstances and values change, your goals may change, too. At a minimum, they may become more focused.

If your goals have changed since the last time you updated your financial and estate plans, be sure to discuss them with your financial planner and estate planning attorney. Your goals can have a meaningful impact on your overall financial plan, including your investment approach. In addition, updating your estate plan to reflect your new goals will help ensure your assets are distributed—and your legacy endures—according to your wishes.

#3: Have external circumstances changed?

After a relatively calm 2021, 2022 has been anything but. Market volatility is spiking, inflation is sky-high, and interest rates are on the rise. Meanwhile, the bond market offers little solace to investors seeking safety.

As long-term investors, we don’t recommend changing your investment plan because of market movement. Indeed, studies show that investors who try to time the market often get worse results than those who stick to their investment strategy over time. Still, evolving external circumstances may have an impact on your plans, especially when they affect the tax code or other regulatory policies.

For instance, the SECURE Act of 2019 made a number of changes to the way Americans save for retirement and draw down their retirement accounts. As an example, the SECURE Act pushed back the age retirees must begin taking required minimum distributions (RMDs). In addition, it changed the rules for inherited IRAs. Now, most non-spousal beneficiaries must draw down account balances within 10 years of taking ownership.

Policy changes like these can meaningfully affect your financial and estate plans. A trusted financial planner can help you adjust course as the world around you changes.

You Don’t Have to Go It Alone

Ideally, our financial and estate plans reflect life’s many changes–marriage, children, retirement, and ultimately, the legacies we leave behind. Yet as time passes, our circumstances, family dynamics, and goals can change dramatically and unexpectedly. A mid-year check-in can help you ensure your financial plan is still in line with the life you have, as well as the life you want.

The good news is you don’t have to go it alone. A trusted financial advisor like Benchmark Wealth Management can help you create a financial plan that reflects your personal circumstances, values, and goals. In addition, we’ll help you proactively update your plans and your world changes. If you’d like to speak with a member of our team about developing a financial plan that can help you reach your goals, we encourage you to get in touch.

 

About Rick

Richard W. Stout III is managing director of Benchmark Wealth Management, LLC, with 25 years of experience in the financial industry. He specializes in financial planning and asset management for individuals, families, and institutions seeking to build and monitor durable and sustainable plans for their financial futures. Rick is a Certified Financial Planner™ professional and holds the Accredited Investment Fiduciary® (AIF®) designation. He obtained his MBA from Rensselaer Polytechnic Institute and his BA in Economics and Anthropology from the University of Connecticut. Rick has earned a Master of Science degree in Personal Financial Planning from the College for Financial Planning. He has extensive background experience in lending, credit review and analysis, and real estate and partnership management. Learn more about Rick by connecting with him on LinkedIn.

About Thomas

Thomas J. Britt is managing director of Benchmark Wealth Management, LLC, with 20 years of experience in the financial industry. He specializes in executive financial planning, retirement planning, investing, as well as the management of trusts and endowments. Thomas is a CERTIFIED FINANCIAL PLANNER™ professional and holds the Master Planner Advanced StudiesSM, MPAS®, Certified Investment Management Analyst® (CIMA®), and Chartered Retirement Planning Counselor℠, CRPC® designations. He earned a Bachelor of Science in Finance from the University of New Haven, an MBA in financial technology from Rensselaer Polytechnic Institute, and a Master of Science in Personal Financial Planning from the College for Financial Planning. He is also a proud veteran of the United States Navy Submarine Force. Learn more about Tom by connecting with him on LinkedIn.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure site, www.adviserinfo.sec.gov/firm/160192

Securities offered by Registered Representatives through Private Client Services, Member FINRA, SIPC in the following states: AZ, CA, CT, FL, KY, MA, ME, MI, MN, NH, NJ, NY, RI, TX. (Securities-related services may not be provided to individuals residing in any state not previously listed.) Advisory services offered through Benchmark Wealth Management, LLC a Registered Investment Advisor. Benchmark Wealth Management and Private Client Services are unaffiliated entities.

Women often face a variety of unique financial challenges when separating from a partner. Whether you expect to split from your spouse or not, it’s important to take steps to protect yourself financially in case of divorce.

By Richard W. Stout III and Thomas Britt

No one gets married with the intention of divorcing. Yet the reality is that divorce happens—and it happens more often than we’d like to admit. One study by Bowling Green State University revealed that in 2018, more than one million women in the United States experienced divorce. Meanwhile, the Covid-19 pandemic prompted a new wave of divorces. Data shows that in the U.S., the divorce rate skyrocketed as couples endured months of lockdown together.

Indeed, divorce can be an emotionally draining experience for all parties. But it can also be financially devastating—especially for women who aren’t prepared. If you’re navigating divorce, protecting yourself financially is critical to ensure an equitable settlement and secure your financial future.

Consider These Steps to Protect Yourself Financially Before, During, and After Divorce

1. Before the Divorce Process Begins, Get Organized

Researchers estimate that 90% of all women will be solely responsible for their household finances at some point in their lives. In other words, it’s wise for women to protect themselves financially, regardless of marital status.

If you anticipate any change in your family dynamics, a good first step is to get organized. Keep a record of all financial accounts, property, and other assets owned by you and your partner. You should also classify all assets as separate or marital property.

Be sure to save copies of all corresponding documents so they’re readily available if you need them. Beyond financial documents, do your best to locate all estate planning documents, prepaid funeral arrangements, and premarital agreements, if applicable.

Other examples of information you may need during the divorce process may include:

• Personal balance sheet/financial statements
• Inventory of joint and separate property
• Bank and investment account statements
• Real estate deeds
• Mortgage/loan documents
• Credit card statements
• Wills/trusts
• Insurance policies

In addition, keep track of your login credentials for online access to your bank accounts, brokerage firm, and other financial institutions. Creating an organizational system that works for you will make it easier for both you and your team of advisors to access important information once the divorce proceedings begin.

2. During the Divorce Process, Leverage Your Team of Experts

In addition to your legal team, it’s important to assemble a team of tax and financial advisors who can help protect you financially during the divorce process. You’ll want to share the information you gathered prior to the divorce proceedings so that everyone is on the same page when they begin.

If you don’t have recent appraisals for real estate and other highly valued property, be sure to obtain your own professional appraisals. Your team of experts can advise you on the financial implications of splitting your collection of property and other assets. For example, there may be tax consequences or other restrictions that reduce the value of your settlement.

Finally, and as unpleasant as it may seem, beware of the possibility that your partner may try to hide assets from you during the divorce process. For women who haven’t played a major role in the family finances, this step is especially important to protect yourself financially in divorce.

Even if you don’t have ownership rights to your spouse’s non-marital property, you’ll want to be aware of it, nonetheless. Depending on the laws in your state, the court may consider the value of all property when determining an equitable settlement.

Though finding hidden assets can be challenging, it’s not impossible. If there’s no obvious paper trail, past tax returns can be a helpful place to start. Alternatively, if you suspect your partner may be hiding a substantial amount of money or property from you, you may want to consider hiring a professional who specializes in asset search and investigation.

3. After the Divorce Process is Final, Take Ownership of Your Finances

Protecting yourself financially in divorce doesn’t end once the divorce proceedings conclude. As you adjust to your new situation, it’s important to take ownership of your finances so you’re ready to navigate life independently.

It’s possible that your divorce settlement may be all you need to sustain your lifestyle post-divorce. One thing worth noting, however, is that spousal support isn’t nearly as common as it once was. Today, data shows that spousal support is only awarded in about one in 10 divorces. Regardless of your family dynamics, it’s typically best to assume you’ll be responsible for supporting yourself post-divorce.

Either way, you’ll want to develop a personal budget and long-term financial plan that reflects your new circumstances. Additional post-divorce considerations may include:

Additional post-divorce considerations may include:

• Social Security benefits. If you’re divorced but your marriage lasted at least 10 years, you can still collect benefits on your ex-spouse’s record. This is true even if they have remarried, but not if you remarry.
• Insurance needs. The two primary types of insurance that typically come into play during a divorce are health insurance and life insurance. Be sure to revisit your policies and ensure you have proper coverage post-divorce.

If you haven’t worked with a financial advisor in the past—or your partner took the lead in the family finances—consider engaging a financial planner. Many financial planners, including Benchmark Wealth Management, have extensive experience helping women navigate and secure their finances post-divorce.

Protect Yourself Financially in Divorce with the Help of a Trusted Advisor

Divorce can take a toll on your emotions and finances. For women anticipating or going through divorce, the good news is there are many ways to protect yourself financially and set yourself up for long-term financial success.

With the right preparation and team of advisors to support you, you can continue to thrive post-divorce. If you’d like to speak with a member of our team about protecting and taking ownership of your finances, please get in touch.

 

About Rick

Richard W. Stout III is managing director of Benchmark Wealth Management, LLC, with 25 years of experience in the financial industry. He specializes in financial planning and asset management for individuals, families, and institutions seeking to build and monitor durable and sustainable plans for their financial futures. Rick is a Certified Financial Planner™ professional and holds the Accredited Investment Fiduciary® (AIF®) designation. He obtained his MBA from Rensselaer Polytechnic Institute and his BA in Economics and Anthropology from the University of Connecticut. Rick has earned a Master of Science degree in Personal Financial Planning from the College for Financial Planning. He has extensive background experience in lending, credit review and analysis, and real estate and partnership management. Learn more about Rick by connecting with him on LinkedIn.

About Thomas

Thomas J. Britt is managing director of Benchmark Wealth Management, LLC, with 20 years of experience in the financial industry. He specializes in executive financial planning, retirement planning, investing, as well as the management of trusts and endowments. Thomas is a CERTIFIED FINANCIAL PLANNER™ professional and holds the Master Planner Advanced StudiesSM, MPAS®, Certified Investment Management Analyst® (CIMA®), and Chartered Retirement Planning Counselor℠, CRPC® designations. He earned a Bachelor of Science in Finance from the University of New Haven, an MBA in financial technology from Rensselaer Polytechnic Institute, and a Master of Science in Personal Financial Planning from the College for Financial Planning. He is also a proud veteran of the United States Navy Submarine Force. Learn more about Tom by connecting with him on LinkedIn.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure site, www.adviserinfo.sec.gov/firm/160192

Securities offered by Registered Representatives through Private Client Services, Member FINRA, SIPC in the following states: AZ, CA, CT, FL, KY, MA, ME, MI, MN, NH, NJ, NY, RI, TX. (Securities-related services may not be provided to individuals residing in any state not previously listed.) Advisory services offered through Benchmark Wealth Management, LLC a Registered Investment Advisor. Benchmark Wealth Management and Private Client Services are unaffiliated entities.

April is National Social Security Month. With the future of Social Security in peril, proper planning will become increasingly important for Americans seeking a financially secure retirement.

By Richard W. Stout III and Thomas Britt

Social Security has long been a key component of the American retirement. In fact, 97% of older Americans (aged 60 to 89) either receive Social Security benefits or will receive benefits, according to data from the Social Security Administration (SSA). And many of these beneficiaries have no other retirement savings at their disposal.

Unfortunately, a recent report from the SSA finds that retirees will only receive 78% of their full benefit beginning in 2034 if Congress doesn’t address the program’s funding issues. As the future of Social Security hangs in the balance, proper retirement planning will be critical for Americans who hope to stop working one day.

How Social Security Works

In the United States, Social Security is funded through payroll tax deductions. Both employers and employees contribute to Social Security.

Currently, employees contribute 6.2% of their income, and employers pay an additional 6.2% for each employee. Self-employed individuals pay the entire 12.4% payroll tax. In 2022, payroll taxes apply to up to $147,000 of a taxpayer’s annual income.

When you pay Social Security tax, you aren’t paying into an individual account that’s designated for your retirement. Instead, taxpayers contribute to a Social Security Trust Fund that pays the benefits of all current beneficiaries. That means there’s no guarantee the money you contribute to Social Security will be there for you when you retire.

The status of the Trust Fund depends on the worker-to-beneficiary ratio. When this ratio is healthy, the amount of money the SSA collects through payroll taxes exceeds the amount of money it pays out in benefits. However, there’s likely to be a funding problem when beneficiaries exceed workers.

Why the Future of Social Security Is Now Uncertain

The Social Security Trust Fund hasn’t always had funding issues. In 2020, for example, an annual surplus of $10.9 billion increased reserves to $2.91 trillion, according to the SSA.

However, the outlook for Social Security has worsened since the 2020 report. Over the next decade plus, the SSA will need to draw down its reserves as a decreasing number of workers pay for an increasing number of beneficiaries.

The future of Social Security is uncertain largely because there’s been a steady decline in the birth rate in recent years. In fact, U.S. Census data shows that the number of U.S. births has been declining every year since 2008 (except for 2014). At the same time, the average lifespan has been steadily increasing in the United States.

That means that if left alone, the Social Security Trust Fund can pay full benefits through 2033. Beneficiaries will then receive a lesser benefit beginning in 2034 if Congress doesn’t act in the meantime.

Will Social Security Ever Dry Up Completely?

The last time Social Security faced a reserve deficit was 1983. At that time, massive bipartisan legislation was necessary to resolve the solvency issue. Among other changes, Congress increased the full retirement age from 65 to 67 over time. In addition, they began to tax Social Security benefits as ordinary income for high-earning beneficiaries.

Following these events, Social Security became known as “the third rail of American politics.” In other words, Social Security is the one entitlement program policymakers know not to touch. Unfortunately, that also means politicians haven’t been particularly motivated to address Social Security issues in the absence a looming crisis.

Now, with crisis on the horizon, a solution is necessary for the Social Security Administration to continue paying full benefits. Congress essentially has two options: cut Social Security benefits or increase tax revenue.

House Democrats recently introduced the Social Security 2100 Act. This would increase benefits for low-income workers, change the cost-of-living-adjustment (COLA) index, and reapply the payroll tax rate to the highest-earning individuals. However, legislation regarding Social Security can’t pass with a simple 51-vote majority in the Senate. That means any new legislation will once again require bipartisan support.

Ultimately, the future of Social Security depends on the ability of Congress to agree on a proposed course of action. Given the potential political implications, it seems unlikely that either party would let the Fund dry up altogether. Nevertheless, American workers may want to consider taking steps to reduce their reliance on Social Security benefits in retirement.

Preparing for an Uncertain Future

Waiting on Congress to shore up Social Security may not be the best approach, especially if you’re nearing retirement age. Although 12 years may seem like a lifetime in government, it’s merely a stone’s throw when it comes to your retirement timeline.

One way to minimize the role Social Security plays in your retirement plan is to supplement it with additional retirement savings—for example, contributing to an employer-sponsored retirement plan and/or individual retirement account (IRA). And the earlier you start, the better.

In 2022, individuals can contribute up to $20,500 to a 401(k), 403(b), and most 457 plans. Meanwhile, you can contribute up to $6,000 to a Roth or Traditional IRA ($7,000 if you’re age 50 or older). However, if you’re not able to max out your contributions, contributing even a little bit to retirement each month can yield meaningful results over time.

If your employer matches your retirement plan contributions, maxing out your matching contributions should be your top priority. Otherwise, you’re leaving money on the table.

Lastly, depending on how far from retirement you are, it’s important to invest your retirement savings to grow your nest egg and outpace inflation. Qualified retirement accounts offer certain tax advantages that allow you to grow your funds tax-free until you withdraw them in retirement. This benefit amplifies the power of compounding that long-term investors typically enjoy.

Bottom Line: Don’t Rely on Social Security to Fund Your Retirement

Though Social Security may never dry up completely, it’s possible your benefits will be meaningfully reduced by the time you reach retirement age. No matter the future of Social Security, proper planning is key for a successful retirement.

Benchmark Wealth Management provides holistic financial planning and investment management services for high-net-worth professionals and retirees. If we can help you plan for a financially secure retirement, we encourage you to connect with us to see if we’re a good fit.

 

About Rick

Richard W. Stout III is managing director of Benchmark Wealth Management, LLC, with 25 years of experience in the financial industry. He specializes in financial planning and asset management for individuals, families, and institutions seeking to build and monitor durable and sustainable plans for their financial futures. Rick is a Certified Financial Planner™ professional and holds the Accredited Investment Fiduciary® (AIF®) designation. He obtained his MBA from Rensselaer Polytechnic Institute and his BA in Economics and Anthropology from the University of Connecticut. Rick has earned a Master of Science degree in Personal Financial Planning from the College for Financial Planning. He has extensive background experience in lending, credit review and analysis, and real estate and partnership management. Learn more about Rick by connecting with him on LinkedIn.

About Thomas

Thomas J. Britt is managing director of Benchmark Wealth Management, LLC, with 20 years of experience in the financial industry. He specializes in executive financial planning, retirement planning, investing, as well as the management of trusts and endowments. Thomas is a CERTIFIED FINANCIAL PLANNER™ professional and holds the Master Planner Advanced StudiesSM, MPAS®, Certified Investment Management Analyst® (CIMA®), and Chartered Retirement Planning Counselor℠, CRPC® designations. He earned a Bachelor of Science in Finance from the University of New Haven, an MBA in financial technology from Rensselaer Polytechnic Institute, and a Master of Science in Personal Financial Planning from the College for Financial Planning. He is also a proud veteran of the United States Navy Submarine Force. Learn more about Tom by connecting with him on LinkedIn.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure site, www.adviserinfo.sec.gov/firm/160192

Securities offered by Registered Representatives through Private Client Services, Member FINRA, SIPC in the following states: AZ, CA, CT, FL, KY, MA, ME, MI, MN, NH, NJ, NY, RI, TX. (Securities-related services may not be provided to individuals residing in any state not previously listed.) Advisory services offered through Benchmark Wealth Management, LLC a Registered Investment Advisor. Benchmark Wealth Management and Private Client Services are unaffiliated entities.

By Richard W. Stout III and Thomas Britt

In a speech on February 23, 2022, Russian President Vladimir Putin announced that a “special military operation” would begin in Ukraine. Russian military forces attacked a broad range of targets across Ukraine last night while Russian President Putin vowed to replace Ukraine’s government. Many are worried that Russia’s aggressive stance and wide-scale military attack could potentially spiral into the largest European military conflict since the Cold War.

How Did We Get Here?

When the Soviet Union broke up in the early 1990s, Ukraine, once a cornerstone of the former Soviet republic, was the third-largest nuclear power in the world. Ukraine eventually made the decision to denuclearize, and in a series of diplomatic agreements, Ukraine gave its nuclear arms back to Russia. In exchange, Ukraine was provided with security assurances that protected the country from Russian attack.

These assurances were tested in 2014, when Russia illegally annexed the Ukrainian territory of Crimea. Though relations between the two countries have been strained since, tensions escalated in early 2021 when Ukrainian President Volodymyr Zelenskyy pressed President Biden to let Ukraine join NATO.

Putin sees NATO’s expansion eastward as an “existential threat” and has demanded a legal guarantee that NATO will not hold any military activity in eastern Europe and Ukraine. Last spring, he began sending troops near the Ukraine border for “training exercises” and has steadily increased Russia’s military presence near the border.

Despite diplomatic efforts to diffuse the situation, Russia invaded its ex-Soviet neighbor Thursday morning, days after Putin announced that Moscow would officially recognize two Russian separatist regions in eastern Ukraine, Donetsk and Luhansk. This move prompted Germany to halt certification of Nord Stream 2, one of two pipelines that Russia has laid underwater in the Baltic Sea. These pipelines are in addition to Russia’s land-based pipeline network that runs through eastern Europe, including Ukraine.

Why Nord Stream 2 Matters

Many believe Putin is using Nord Stream 2 as a tool to weaken Ukraine and make the EU more dependent on Russian natural gas. If certified, Nord Stream 2 would likely send pipelines across Ukraine offline, depriving Ukraine of approximately $2 billion in transit fees from Russia and undermining any previously perceived protection from Russian military action.

The price of oil spiked to a seven-year high following Russia’s invasion of Ukraine, as it remains unclear what the near- and longer-term impact of the certification delay and a possible Russia

retaliation will be on Europe’s economy. Almost 38% of the natural gas used by the European Union last year was imported from Russia, according to Eurostat. Meanwhile, government figures say Russian natural gas accounted for nearly 27% of the energy consumed by Germany.

The Crisis’s Effect on U.S. Stocks

U.S. stocks fell sharply Thursday morning. The Dow Jones Industrial Average fell 859 points during the day, and the Nasdaq opened in bear market territory, down over 20% since peaking in November. In addition, the S&P 500 Index has declined just over 11% year-to- date, placing it squarely in correction territory. (As a reminder, a correction is generally defined as a market decline of more than 10%, while a decline of 20% or more is considered a bear market.) At the close Thursday, the S&P 500 closed up 63.20 and Dow Jones Industrial Average finished the day up 92.07.

It’s not unusual for geopolitical and other external events to shock financial markets. Yet historically, stock volatility has been short-lived following such events. In fact, since World War II, stocks were higher three months after a geopolitical shock. And following about two-thirds of those events, they were higher after only one month. The chart below helps illustrate this point.

Source: What history says about geopolitics and the market

What Does This Mean for Long-Term Investors?

While volatility is always unsettling, it’s not usual given the many uncertainties this conflict creates. While we don’t know how this will play out, nor do we know how long it will last, we are likely to see more volatility in the near-term. However, there are a few aspects of the current situation that may help ease your anxiety.

1. In the United States, the median stock market drawdown due to geopolitical shocks was
2. -5.7%, according to data from Deutsche Bank. Moreover, these drawdowns tend to take around three weeks to reach a bottom and an additional three weeks to recover. On average, the market was 13% higher from the bottom 12 months after.
3. The U.S. economy remains relatively strong, making us more resilient to broader economic repercussions. It may be worth noting that the last crisis in Ukraine in 2014 had little impact on the U.S. economy. That said, it’s unclear if the current crisis will change the Fed’s plan for increasing interest rates.
4. Volatility often provides investors with the opportunity to purchase stocks at discounted prices, which can boost long-term investment results.
5. We have been here many times before and it is important and helpful to put current conditions into perspective. Declines in stock markets are regular events. In fact, drops of 10% or more happen about once a year on average: (1)

In general, we don’t believe external events like the Russia-Ukraine crisis warrant dramatic changes to your long-term investment plan. Historically, investors who stay the course during periods of uncertainty are ultimately rewarded, and we have no reason to believe this time will be different. As today’s wild swings show, trying to predict markets is a fool’s errand. History has shown that investors, who remain prudently invested throughout corrections, have witnessed attractive returns.

We’ll be monitoring the situation closely and will keep you updated as appropriate. As always, we’re here to support you if you have any questions or want to discuss your financial plan in more detail.

About Rick

Richard W. Stout III is managing director of Benchmark Wealth Management, LLC, with 25 years of experience in the financial industry. He specializes in financial planning and asset management for individuals, families, and institutions seeking to build and monitor durable and sustainable plans for their financial futures. Rick is a Certified Financial Planner™ professional and holds the Accredited Investment Fiduciary® (AIF®) designation. He obtained his MBA from Rensselaer Polytechnic Institute and his BA in Economics and Anthropology from the University of Connecticut. He has earned a Master of Science degree in Personal Financial Planning from the College for Financial Planning. He has extensive background experience in lending, credit review and analysis, and real estate and partnership management. Learn more about Rick by connecting with him on LinkedIn.

About Thomas

Thomas J. Britt is managing director of Benchmark Wealth Management, LLC, with 20 years of experience in the financial industry. He specializes in executive financial planning, retirement planning, investing, as well as the management of trusts and endowments. Thomas is a CERTIFIED FINANCIAL PLANNER™ professional and holds the Master Planner Advanced StudiesSM, MPAS®, Certified Investment Management Analyst® (CIMA®), and Chartered Retirement Planning Counselor℠, CRPC® designations. He earned a Bachelor of Science in Finance from the University of New Haven, an MBA in financial technology from Rensselaer Polytechnic Institute, and a Master of Science in Personal Financial Planning from the College for Financial Planning. He is also a proud veteran of the United States Navy Submarine Force. Learn more about Tom by connecting with him on LinkedIn.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure site, www.adviserinfo.sec.gov/firm/160192

Securities offered by Registered Representatives through Private Client Services, Member FINRA, SIPC in the following states: AZ, CA, CT, FL, KY, MA, ME, MI, MN, NH, NJ, NY, RI, TX. (Securities-related services may not be provided to individuals residing in any state not previously listed) Advisory services offered through Benchmark Wealth Management, LLC a Registered Investment Advisor. Benchmark Wealth Management and Private Client Services are unaffiliated entities.

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(1) https://www.capitalgroup.com/individual/planning/market-fluctuations/past-market-declines.html

By Richard W. Stout III

We have no lack of options these days. Whether it’s choosing a restaurant or finding a doctor, there are so many choices that it’s easy to feel overwhelmed. When it comes to choosing a financial planner, the stakes are even higher. How do you know which one will be the right fit for your situation or personality? How do you know if you’ll like them or work well with them?

The financial professional you choose to handle your family’s wealth will have a significant impact on your investment strategy, the fees you pay, and your confidence in your financial future. This is not a decision to take lightly, especially since each planner has a different level of service, experience, and ability. Taking all that into consideration, it’s vital to take your time to find a planner that meets your needs and makes you feel at ease. When you start your search, asking potential candidates the following questions will help you gain a better understanding of who they are and how they do business.

1. Are You a Fiduciary?

There’s a reason this is the first question—its importance cannot be overstated! A planner who serves as a fiduciary accepts a responsibility to put his or her clients’ interests first and foremost in all decisions. A fiduciary is legally required to avoid conflicts of interest and remain unbiased in their recommendations and advice.

How can you know for certain that a planner you’re interviewing is a fiduciary? The firm will either be listed as a Registered Investment Advisor or the advisors on the team will hold certifications that hold them to the fiduciary standard, such as the CERTIFIED FINANCIAL PLANNER™, Chartered Financial Analyst®, or Certified Public Accountant professional designations. Keep in mind, if the financial planner doesn’t fit those descriptions, they may still act as a fiduciary in certain situations, like sharing a recommendation, but not necessarily when selling products.

Benchmark Wealth Management is a Registered Investment Advisory firm and abides by the fiduciary standard of professional conduct. We do what we say and finish what we start—all for your benefit.

2. What Credentials Do You Hold?

Credentials and education play a critical role in your planner’s competence. There are hundreds of designations in the financial services field, and some are more applicable to your needs than others. (1)

Advisors on our team hold the CFP® certification, which requires comprehensive education and experience. In addition, our team members hold other credentials, including the Accredited Investment Fiduciary® (AIF®), Certified Investment Management Analyst® (CIMA®), and Chartered Retirement Planning Counselor℠, CRPC® designations. We pursue education and credentials because of our commitment to continuous learning and dedication to providing unparalleled client service.

Use a designation-check database to learn more about the credentials financial planners can earn, and ask the planners you are researching what they do to continually hone their skills and stay up to date in the industry.

3. What Is Your Planning and Investment Philosophy?

It’s important to work with a financial planner who shares a planning and investing philosophy similar to your own. Does your planner stick to a scientific, evidence-based approach? Do they believe in buy-and-hold or do they move to cash when the market looks shaky? Talk with a financial planner about how they guide clients’ investing and financial decisions.

At Benchmark Wealth Management, we know that a sound asset allocation strategy is a key way to turn your wealth into new ways to live your best life. Our investment strategies are customized to your unique goals and needs so you can maximize your growth while protecting your wealth. We utilize passive investments, adopting sound processes and empirically driven solutions, which allows us to focus on what we can control while reducing the risk and stress to the extent possible surrounding what cannot be controlled.

Our personalized approach to financial management is the foundation of our services, taking into account both your individual goals and your entire financial situation. Before we look at any numbers or dive into strategizing, we get to know you and what you want out of life. We ask deep questions and seek to understand the nuances of your financial situation. As time goes on, we compound our understanding of you and your needs, allowing us to deliver independent,

objective, and tailored strategies that help you rest easy today and in the long term.

4. How Are You Compensated?

Financial planning and investment costs can be confusing, and often financial planners don’t readily disclose their fees. As fee-based planners, our clients always know what they’re paying and what they’re receiving for their money. We want our clients to feel comfortable with their strategies and confident that there are no hidden fees eating away at their hard-earned savings.

At Benchmark, we are compensated by an assets under management (AUM) fee, which is paid quarterly, based on the value of your assets. There are no other hidden costs from us and we do not earn money through commissions.

5. Who Do You Serve?

Some financial planners focus on serving a specific demographic or level of investable assets, so you’ll want to find this out before choosing a planner. Why is this important? Because you deserve advice and services tailored to your unique needs.

Our clients are high-net-worth individuals who come to us for help because they desire a customized, disciplined strategy and a holistic approach to managing their assets and reaching their realistic long-range goals. Our clients expect and deserve the highest level of personalized service and care. To support this commitment, we limit our relationships to ensure that we can deliver proactive planning, investment management, and concierge-level client service consistently and dependably. Tom Britt’s requirement for new client relationships is $2 million or greater. Rick Stout’s requirement for new client relationships is $5 million or greater. Limiting new relationships in this manner enables us to safeguard the service experience our existing clients know and appreciate while ensuring an exceptional service experience for new clients. Because we prioritize personal relationships with our clients, relationships that often extend for generations, many of our clients find their way to us through referrals from existing clients. We serve clients of different ages and from a variety of professions, including business owners, professionals, entrepreneurs, executives, and retirees. Despite their differences, they have all worked hard for their wealth and created their own path to success.

6. Who Will I Be Working With?

At some firms, you may work with multiple financial planners depending on your appointment time or needs, while other firms may pair you up with one financial planner with whom you’ll work one-on-one. This is important to know so you can meet the team members with whom you might be collaborating.

You will build a strong relationship with your primary planner at Benchmark, and we have stellar support staff in place to ensure you receive the highest level of service. Everyone at Benchmark works as a team. We spend a lot of time getting to know our clients and their goals, and we strive to put your dreams at the heart of your financial plan.

7. What Financial Planning Services Do You Offer?

Not all financial planners can provide comprehensive financial planning. Some cannot sell insurance or securities, such as mutual funds or stocks, if they don’t have the appropriate licenses. Ask a financial planner what services they provide, whether or not they have a focus or niche, and if they offer a broad spectrum of solutions to meet your needs. When creating a plan together, be sure to ask your planner why they are recommending particular services and solutions over others. Benchmark Wealth Management’s comprehensive services include retirement planning, asset management, cash flow analysis, estate planning, tax strategies, philanthropic strategies, and more.

8. What Sets You Apart From Other Financial Planners?

We know you have plenty of options to choose from, but there are a few things we do differently:

1. We don’t use cookie-cutter plans or algorithmic technology to develop your investment portfolio. Our plans are centered around you and your life, and you can have confidence knowing that your future is being looked after.
2. Our client relationships are built on integrity, dependability, and accountability. We are passionate about what we do and confident in how we do it.
3. We provide a “white glove experience,” offering a level of care and attention to our clients that sets us apart. Our unparalleled service commitment means we treat every client as if they were our only client. We communicate regularly, remain accessible, and are with you on this financial journey every step of the way.
4. Our specialized expertise allows us to develop plans that maximize the resources available to you, reduce taxes, prepare for retirement, and protect your family. Instead of trying to be your own financial planner, worrying something will slip through the cracks, or making innocent mistakes, you can rest assured that someone you trust is carrying your financial burden and watching out for your future like it’s their own.

9. How Do We Meet??

These days it’s not unusual for firms to offer both in-office and virtual appointments. If you’re someone who travels a lot, you may prefer a planner who is easily accessible in a virtual environment. For those who prefer a more personal touch, make sure the planner is someone who is available to meet in their office.

At Benchmark, in-person meetings are welcome and encouraged. We enjoy the opportunity to see our clients in person and believe this is an important part of our relationship with them. We do understand, however, that time is valuable and that it can be difficult to get away. Our services and systems have been designed so that all of the information you need to understand your finances are accessible to you at any time via eMoney and Schwab Alliance. With this accessibility, we can easily have impactful conversations about your finances virtually or via telephone, without the need for you to leave your home or office, thus disrupting your routine.

10. How Will I Know if Your Firm Is Right for Me?

When selecting your planner, the relationship should feel right, and you should never feel pressured to make a decision quickly. We offer a complimentary consultation during which you can ask questions, evaluate our processes and services, determine if our personality is a good fit, and get the information you need to make an informed decision.

Don’t Rush Into Anything

A financial planner should be happy to answer these questions—and any others—about how they do business. If you don’t know where to start, ask friends and family for referrals to set you down the right path.

At Benchmark Wealth Management, working with us is about the experience. It’s at the core of what we do and why we exist. If you’d like to learn more about who we are and what we do, don’t hesitate to reach out to us for an introductory meeting by contacting us at 860.434.6890 or emailing richard.stout@bwmllc.net to schedule a consultation.

About Rick

Richard W. Stout III is managing director of Benchmark Wealth Management, LLC, with 25 years of experience in the financial industry. He specializes in financial planning and asset management for individuals, families, and institutions seeking to build and monitor durable and sustainable plans for their financial futures. Rick is a Certified Financial Planner™ professional and holds the Accredited Investment Fiduciary® (AIF®) designation. He obtained his MBA from Rensselaer Polytechnic Institute and his BA in Economics and Anthropology from the University of Connecticut. He has earned a Master of Science degree in Personal Financial Planning from the College for Financial Planning. He has extensive background experience in lending, credit review and analysis, and real estate and partnership management. Learn more about Rick by connecting with him on LinkedIn.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2, available upon request or at the SEC’s Investment Advisor Public Disclosure site, www.iapd.com, searching with our company name or unique identifier, CRD # 160192. Past performance is not a guarantee of future results.

Securities offered by Registered Representatives through Private Client Services, Member FINRA, SIPC in the following states: AZ, CA, CT, FL, KY, MA, ME, MI, MN, NH, NJ, NY, RI, TX. (Securities-related services may not be provided to individuals residing in any state not previously listed) Advisory services offered through Benchmark Wealth Management, LLC a Registered Investment Advisor. Benchmark Wealth Management and Private Client Services are unaffiliated entities.

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(1) https://www.finra.org/investors/professional-designations

By Thomas Britt

It’s hard to believe it’s already 2022. It seems like just yesterday we began 2021 with high hopes for a fresh start. Given that those hopes didn’t quite pan out, after an intense two years, a new year can be overwhelming to think about. But as we continue on the slow road back to “normal,” the good news is that there are actionable steps you can implement today to take back control of your finances and truly make 2022 a fresh start. Here are three ways to get started.

1. Set Financial Goals

The first way to jump-start your financial plan is to set financial goals. Do you have a goal for your finances or are you just crossing your fingers and hoping you have enough for the lifestyle you want?

Specific goals with defined timelines will help to determine the best course of action, including how much risk you can and should take with your money. Every dollar in your portfolio should be working toward a specific goal.

Remember that the best goals will be SMART:

• Specific: The more you can identify exactly what you’re saving for, the easier it will be to work toward it.
• Measurable: As much as possible, try to identify how much your financial goal will cost. Do the research to figure out what you need to save so that you’re able to see tangible progress along the way.
• Attainable: Make sure your goal is realistic and achievable. This might require some self-reflection or reevaluation of your priorities.
• Relevant: Ask yourself which goals align with your core values. Remember that your finite assets will be split amongst your seemingly infinite list of wants. The more you can scale back your list to what is truly relevant, the quicker you’ll be able to achieve each goal.
• Timely: Identify the timeline for each goal so that you can prioritize which ones need to be addressed first and how much risk you can afford to take.

2. Build Up Your Savings

If there’s one thing the last two years have taught us, it’s that it’s crucial to prepare for the unpredictable. Whether it be a pandemic, a lost job, or rising rates of inflation, sufficient savings can mean the difference between staying afloat during uncertain times and not having enough when you need it most.

If you’re not saving already, take steps to start putting a portion of your income away every month. Usually 10-15% of pre-tax income is a good guideline. Ideally, it is recommended that most people should have at least 3-6 months’ worth of non-discretionary expenses saved in a highly liquid, easily accessible emergency fund before saving toward other goals. Either way, consistent savings are the cornerstone of any solid financial plan.

Though risk is fundamental to investing, it’s also crucial that you aren’t overexposed to unnecessary risks. Take steps to evaluate your risk tolerance, based on your unique financial circumstances, stage of life, and personality, and be sure your investments align.

3. Partner With a Financial Professional

When facing any challenge in life, sometimes the perspective of an objective third party can prove invaluable. Enlisting the help of an experienced financial planner is a great way to take control of your finances and get a jump-start on the future. No matter where you’re at in the planning process or what goals you’ve set for your financial life, Benchmark Wealth Management is here to support you, guide you, and help you navigate your financial challenges.

We have the tools and expertise to help you set financial goals, build up your emergency fund, and reevaluate your risk level. In fact, by combining our skills based on education and experience with our commitment to proactive and responsive service, our ultimate goal is to deliver unsurpassed wealth management. We care about what is important to you, and strive to adhere to the highest principles, ethics, and values.

If you’re ready to start planning for the new year with a team that puts you first, please call 860.434.6890 or email me at thomas.britt@bwmllc.net to arrange a consultation today.

About Thomas

Thomas J. Britt is managing director of Benchmark Wealth Management, LLC, with 20 years of experience in the financial industry. He specializes in executive financial planning, retirement planning, investing, as well as the management of trusts and endowments. Thomas is a CERTIFIED FINANCIAL PLANNER™ professional and holds the Master Planner Advanced StudiesSM, MPAS®, Certified Investment Management Analyst® (CIMA®), and Chartered Retirement Planning Counselor℠, CRPC® designations. He earned a Bachelor of Science in Finance from the University of New Haven, an MBA in financial technology from Rensselaer Polytechnic Institute, and a Master of Science in Personal Financial Planning from the College for Financial Planning. He is also a proud veteran of the United States Navy Submarine Force. Learn more about Tom by connecting with him on LinkedIn.

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By Richard W. Stout III

This year, the holiday season is a time for friends and family to come together for a much-delayed convergence, albeit with lingering precautions and a hint of concern as the country and the world adjust to our new “normal.” With festivities and cheer, this time of year invariably brings reflection on the past year and a sense of renewal with a new year on the horizon.

A Time to Reflect

As part of our planning process, our Benchmark team gets to know you, our clientele, intimately, which leads to participating with you in the good, the happy, the unexpected, and sometimes the sad that each year brings.

As we look back on 2021 and ahead to 2022, we are reminded how each year unfolds along its own path—with short-term predictions that often prove incorrect, and surprises (both good and bad) that rise and pass. Every year, this realization reinforces Benchmark’s commitment to our informed, cautious, common-sense approach to shepherding the financial plans of our clients, our friends, and their families, all of whom we view as extensions of our own family. It is an honor to earn a spot at your “holiday table,” so to speak.

Undoubtedly, when this next year passes, we will marvel at what transpired during 2022. At the same time, we will be reassured, just as we are today when we reflect on 2021, that our disciplined focus on the long-term and reasoned planning assumptions will serve all of us well—despite news headlines, economic cycles, and the inevitable unpredictability of the markets.

In closing, please accept our well-wishes for you and your families during the holidays and our gratitude for the trust and confidence you place in us. We look forward to serving you in the new year.

Let’s Connect

If either Tom or I can answer any questions, offer our insight, or if you’d like to check in on your financial plan before the end of the year and make sure your finances are prepared for a successful 2022 and beyond, reach out to us by calling 860-434-6890 or emailing us directly at thomas.britt@bwmllc.net or richard.stout@bwmllc.net.

Happy Holidays!

Rick, Tom, Aileen, and Heather