2020 Presidential Election and Your Money

ST. CROIX INSIGHTS

2020 Presidential Election and Your Money

BY BRETT ANDERSON/ST.CROIX ADVISORS, LLC

2020 presidential election
As we all know, our next Presidential Election occurs on November 3, 2020. I don’t know about you, but I’m ready for November 4, 2020!
It seems that with the power of the internet, we are all in a cycle of constant news, content, and connectivity. But even in today’s world, it’s still possible to find yourself without cell phone coverage, cable TV, or even the internet. I found myself in a place just like that for five days over the summer, and it was heavenly.

As I write this, we have about 49 days until the next President of the United States is elected. Those of you reading this are Democrat, Republican, Independent, Conservative, Liberal, and my list could go on. Yet one major commonality we all have is our money:

We’re all concerned with things like planning for our retirements, managing our investments and 401k plans, and funding our kids’ college.
We have two choices this next election. How will this outcome impact us, our money, and our investments? As of this writing, here’s what I’ve been able to decipher, along with my overall thoughts for the end of 2020 and the beginning of 2021. Keep in mind that I have no idea who is going to win (but I sure wish I did—it would make my job a lot easier!).
The markets have demonstrated it can perform well under both Democratic and Republican administrations.

No matter who wins the next Presidential Election, here are some of the common threads I see in the future we face:

  • Telemedicine was already growing and has now hit overdrive due to the coronavirus.
  • We strive for faster internet, and 5G will impact all of us.
  • Green/clean energy (e.g., electric cars) will continue to become more common, right down to autonomous driving.
  • Let’s not forget about the increase in automation.
  • Are you receiving more packages at home than ever these days? I don’t see that   changing.

If Vice President Biden wins, these are some potential market sectors to own:

  • Hydroelectric.
  • Solar and Wind.
  • Infrastructure companies that focus on roads, bridges, and airports (assuming people start flying again).

If President Trump wins, these are some potential market sectors to own:

  • Heavy equipment companies.
  • Heavily sales-driven internet companies.
  • Social media companies (Twitter loves him!).
  • Overall US-based manufacturing companies.

Under Vice President Biden’s tax plan (versus President Trump’s):

  • Capital gains tax would move to 39.6% on the wealthy.
  • Step-up in cost basis would be eliminated.
  • 1031 exchanges would be eliminated.
  • Corporate tax rate would increase to 28% (from 21%).

I’ve seen slightly different figures, but the Federal Reserve has printed over $3,500,000,000,000 in a matter of months. I don’t know what comes after a trillion—do you? I haven’t talked to anyone who hasn’t asked how this is going to get paid back.
Today, over 1,000 people a day are moving to Florida from the Northeast alone. I suspect income tax-free states will continue to see an increase in their populations thanks to newcomers from high-tax states.


This year, we’ve seen big stock market swings, though lately that’s settled down. You may be concerned about this presidential election. If you become worried about your investments or the markets or just need a sounding board, give me a shout.
Finally, here’s a reminder you’ve heard me stress: having some amount of cash on hand continues to be a solid strategy.

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Ask yourself- can my portfolio support my lifestyle in my retirement? 

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Broke vs Poor – Life Lesson 44 of 50

ST. CROIX INSIGHTS

Broke vs. Poor

BY BRETT ANDERSON/ST.CROIX ADVISORS, LLC

broke vs. poor

So often we use the word “poor” to describe our financial state when what we really mean is “broke.” What’s wrong with that? Well, these term refer to two very different situations, and using broke vs poor interchangeably minimizes the very real experience shared by millions of Americans.

Being broke is a drag

Most individuals have experienced being broke at one time or another. I know I have. In my simple definition, “broke” means having a roof over your head, food in the fridge (even though you might think you never have anything good to eat in the house), clothes, shoes, and a car or bike—but your phone might be a few years old, and you make your own coffee before you head to work, and you probably aren’t taking lavish vacations.

Broke means not having enough money for the miscellaneous items we want in our life—the newest iPhone, expensive meals, or designer clothes—but, ultimately, getting by and hoping for brighter days.

Being poor is a crisis

On the other hand, poor means not having a roof over your head or knowing where your next meal is coming from. It means that a single surprise, accident, or medical issue would be catastrophic. It means hope is as hard to come by as a decent night’s sleep. Poor is a life-threatening condition that affects entire families across the country. I pray you and I never experience it.

We may not all have the newest car, shiniest toys, or top-of-the-line devices, but you know what? That’s OK. We can complain sometimes about not having the things we want, but we should be respectful of the difference between broke vs poor so we’re not silencing the struggles of so many Americans.

 

Do Business With Good People

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Ask yourself- can my portfolio support my lifestyle in my retirement? 

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Pursuing Your Passions: Life Lesson 29 of 50

ST. CROIX INSIGHTS

Pursuing Your Passions

BY BRETT ANDERSON/ST.CROIX ADVISORS, LLC

pursuing your passions

Photo by Kal Visuals

If you’ve postponed pursuing your passions for the pursuit of money, don’t worry: there’s no shame in this, and you’re not alone. Over the years, I’ve found myself doing the same thing — but I’ve come to believe there’s a more fulfilling way to live.

There might have been something you enjoyed or loved doing when you were younger. But society, parents, or others in your life said you couldn’t make a living doing it. Their negativity ended up deterring you from pursuing your passions. Now you—and, sadly, many others—are just too tired from the daily grind to have the energy to spare for those passions. As a result, many people postpone the things they want the most until that magical future date called “retirement.”

Well, you know what? Retirement is, for many of you, in the future. This is now. Don’t let anyone tell you that you can’t make a living with your passions. People do it all the time! If you’ve got a calling, don’t let anyone tell you that you don’t deserve to go for it. Money is great, and it’s important to plan for your retirement, but life is too short to spend it waiting for the future. Time is a precious gift, and it’s your responsibility to spend yours pursuing your passions so you can live a fulfilling life.

Also, sign up for our eNewsletter blog that includes timely financial matters, news, and planning strategies that you can implement today.

Ask yourself- can my portfolio support my lifestyle in my retirement? 

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Dumb Ways We Spend Money: Lesson 21 of 50

ST. CROIX INSIGHTS

Dumb Ways We Spend Money

BY BRETT ANDERSON/ST.CROIX ADVISORS, LLC

dumb ways we spend money

Have you ever thought about some of the dumb ways we spend money?

At the risk of embarrassing myself, here are a few of mine:

  • Cable TV (even though nothing good is ever on)
  • Cell phone plan (even though I hate always being connected)
  • Bottled water (even though I finally purchased a reverse-osmosis system for my house)
  • The occasional impulse buy when I see something on sale (even though I don’t need it)

The list goes on!

One overlooked (but still dumb) way we spend money is all those monthly recurring payments. They can accumulate quickly, almost without our notice, but the individual charges are small enough where we’re never actually triggered to cancel them.

Microsoft: $10. Dropbox: $10. Netflix: $10. Gym membership: $40.00 (“but I’ll go someday, so I’d better keep paying”). It’s not the mortgage or car payment that gets us; it’s these nickel-and-dime amounts that really start to add up.

Maybe it’s time to tally up all the dumb ways we spend money and consider dropping a few unused or unnecessary subscriptions from our monthly expenses. After all, when it comes to making smart financial decisions for our future, every little bit helps.

Article: Broke vs Poor

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Ask yourself- can my portfolio support my lifestyle in my retirement? 

15 + 10 =

Debt Sucks: Life Lesson 20 of 50

ST. CROIX INSIGHTS

Debt Sucks

BY BRETT ANDERSON/ST.CROIX ADVISORS, LLC

debt sucks

I have several beliefs, but two just can’t be disputed: it takes a long time to earn money, and it’s easy to spend it like water flowing out of a faucet. I like to call this “financial leakage.” Many people are affected by financial leakage; for some, the situation is out of control.

Frankly, debt sucks. Debt makes us slaves to our lenders. Debt limits our future lifestyle and choices. But let me be clear. There are two kinds of debt—good debt and bad debt—and it’s bad debt we need to stop.

What are some ways to accumulate bad debt? Credit cards, buying that big dream home, paying for a college degree in a field with no promise of employment, expensive cars or boats…the list goes on.

Good debt, on the other hand, is investing in a business that’s cash flow positive.

A degree that can help you become employed, actually make a living, and pay off your loan within 5 years (not 20 or 30) is an example. There are times where it is good to invest upfront. The payoff can sometimes be much greater in the future.

Debt sucks, but luckily, one of the most effective ways to avoid it is also one of the easiest. Take a breather before doing anything drastic. Pause for a week or two to consider before you make a life-changing decision to take on debt. Give yourself a chance to see that big-ticket vacation. Ponder that spur-of-the-moment change in a clearer light by taking the time you need to think it over.

Getting Married? You’ll Need a Prenup

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Ask yourself- can my portfolio support my lifestyle in my retirement? 

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Cash is King: Life Lesson 19 of 50.

ST. CROIX INSIGHTS

Cash is King

BY BRETT ANDERSON/ST.CROIX ADVISORS, LLC

cash is king

You might find my statement hard to believe, but take that extra moment or two to let it sink in. Cash is genuinely misunderstood in our world today and how it fits into one’s own financial plan. This is why I think too many people have too little cash. Cash is king.

Take for example the recent government shutdown. Each newscast showed people who couldn’t pay for groceries, rent, mortgage or their insulin. his is a great example of people living paycheck to paycheck. I suspect for most people, it’s easy to remember when that described a period in our lives.

Yet, the statistics I read today are amazain – 60% of Americans are living paycheck to paycheck. Many are only one paycheck from losing their homes. In our world today, we are so focused on “stuff” to bring us happiness. One of my client’s recently pointed out that it’s not until you turn 50 years old that you realize you don’t need all this stuff. We are spending our way into working longer when we have to.

Cash is king, especially during the coronavirus pandemic.

Having cash isn’t a problem nor does it create a problem. If you had $100,000 or $250,000 just in your saving account today, what problems does that truly create? The answer is none!

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Ask yourself- can my portfolio support my lifestyle in my retirement? 

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