Debt Management
Rebekah Eason
Holiday Cash for Students

By: Becky Eason, CFP®

The holidays are upon us and although 2020 isn’t a traditional year people are still getting into the holiday spirits. Gifts have become a huge part of the holidays, which we all know can add a lot of additional stress. This year there is the added stress of what is the best way to get gifts to loved ones? Shipping can be expensive and you risk packages getting delayed, lost, or broken so I wouldn’t be surprised to see more monetary gifts be given.


Holiday Cash for Students

Asking for a Friend - I've been listening to your podcast series about helping aging parents, what should I do if one of my parents goes into the hospital?

December 4, 2023

Question:

I've been listening to your podcast series about helping aging parents, what should I do if one of my parents goes into the hospital?

Answer:

If a loved one is in the hospital do not have them check out or leave before you meet and consult with the hospital social worker.

In fact, I would recommend that you seek out the social worker upon their arrival.

The hospital social worker is the key to post-stay rehab, nursing, and a myriad of other services. They are there expressly to serve patients and their families. Please take advantage of them.

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Asking for a Friend - While I'm dusting off my resume, do you have any other professional related advice for 2024?

November 27, 2023

Question:

I haven’t looked at my resume in quite a while. While I’m dusting it off do you have any other professional related advice as we go into 2024?

Answer:

An excellent question for those looking to change jobs or who simply want to update and polish their credentials.

  • So, you’re on the right track with your resume. Most people update their resume to find a new job and then quickly forget it. It’s a good idea to add your new job and all your relevant accomplishments. Many folks include keywords/skills at the top of the resume so automated resume reviewers can easily spot them.

  • Another good idea is to remove jobs past 15 or so years. You are presenting your most current and relevant accomplishments. If you feel like you can’t remove older positions, you can add a section called Additional Experience and list them (without dates).

  • Once your resume is in good shape, update your LinkedIn profile. It’s where recruiters go first to look for candidates. Listing skills will also help when those recruiters are searching for a specific role or skill set.

  • Many LinkedIn pros will also tell you to like, comment, post and follow to boost your profile. If you do comment, make sure there are no typos, and your comment is relevant and pertinent. Remember everyone in your and your colleague’s network will see it.

  • At the risk of overwhelming you, I do have one more piece of advice which is maintaining your professional network. Most people only go back to their network when they need it usually due to a job loss. Why don’t you start slow. Contact one person in your network a week or even every two weeks and make a coffee or lunch date. Use the opportunity to catch up both professionally and personally (if that’s appropriate). This is a much more natural way of maintaining and growing your network and will make it easier to go back to them when you really need to.

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Asking for a Friend - I noticed on the news that stocks are up a lot more than my stock funds, does that mean I don't have good funds?

November 20, 2023

Question:

I noticed on the news that stocks are up a lot more than my stock funds, does that mean I don't have good funds?

Answer:

That’s a good question!

No, that does not necessarily mean you don't have good funds; it likely means you have diversified funds.

So far in 2023 U.S. stocks are a tale of two markets and a 180-degree reversal from 2022.

You’re right that the broad stock market (by broad we are referring to the S&P 500) is up 17.57% (as of Nov 17) while the tech focused Nasdaq is up around 34.96%.

Based on these numbers, one would rightly think all their equity investments are doing very well. However, if a portfolio has a value/dividend tilt, performance is far different.

One broad measure of large value stocks (Morningstar’s US Large Value Index) shows a 5.01% return whereas growth stocks (Morningstar’s US Large Growth Index) are positive by 38.29% (both as November 17). While value stocks have underperformed so far this year, they were by far the outperformer in 2022.

A well-diversified portfolio should hold both growth and value equities so you can benefit when either style is in favor.

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Asking for a Friend - Should I just go with the retirement plan funds chosen by my employer?

November 13, 2023

Question:

I’m new to investing and just started a job with a retirement plan. I didn’t do anything, but I was automatically put into one of the funds based on when the company thinks I will retire. Should I just go with that?

Answer:

Just do a quick check on that automatic option.

I am assuming it is a “target date fund” which matches your anticipated retirement date with your current age.

  • So, if you are 25 and the plan thinks you will “retire” in 40 years, then that target date fund should have 2065 in the name which is close to the year you might retire.

    • The fund will be more allocated to equities, which based on history can have a good chance of increasing in value over the next 40 years.

  • The next thing you should do is contribute as least as much as your company is contributing.

    • If they contribute 3% of your salary on your behalf, you should contribute at least that amount to qualify for the company match.

    • And best yet, that 3% you contribute is pre-tax!

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Asking for a Friend - My friend recently lost her husband and needs investment advice

November 6, 2023

Question:

A friend of mine lost her husband recently. She's paid the bills over the years, so she knows all that, but she wasn't really engaged in the discussions around their investments. Can you give a few places where she can just start?

Answer:

This is hard. The first thing I would say is don’t make any big decisions unless she absolutely has to for at least six months, maybe longer.

However, I would recommend that she start with two documents:

  • A NetWorth statement - list out on a sheet of paper or in a spreadsheet all the accounts they have. This would include savings, checking, brokerage, IRA's, and 401K. Then list any outstanding loan balances. This centralizes her assets and liabilities so she can see the big picture and know where "stuff" is located.

  • Cash flow statement - this one is a bit harder sometimes, but I would suggest a notebook with a page for each month or a spreadsheet with a tab for each month.

    • What is the regular income and what are the regular expenses? When do big expenses hit (i.e. taxes, insurance, etc.) - write those in the lower right-hand corner of the applicable month.

    • Is there a shortfall ever? If so, you know it and can ask for some guidance on the best place to pull it from.

Tell her not to be afraid to ask for help, but to be cautious about making decisions. It's a proven fact our brains are a bit in the "fog" when we are grieving.

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Asking for a Friend - What are your favorite sources for financial information?

October 30, 2023

Question:

What are your favorite sources for financial information?

Answer:

We all have different "favorites" but here is what the team came up with:

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Asking for a Friend - I've seen that Money Market Funds are currently yielding 5%+. Should I be allocating more to cash and less to the stock market?

October 23, 2023

Question:

I've seen that Money Market Funds are currently yielding 5%+. Should I be allocating more to cash and less to the stock market?

Answer:

While it’s true that cash and cash equivalents are enjoying their highest yields in years, don’t assume that this will last forever.

And while it’s also true that as you near retirement, you should allocate more to less risky investments including cash equivalents, the equity markets have historically delivered the kind of returns (over the inflation rate) that most of us will need to achieve long-term goals.

So, while cash looks better than it has in quite a while, don't let that disrupt or distract you from your asset allocation.

Do your friends ask you financial questions?
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Asking for a Friend - I'm using an excel spreadsheet to maintain my budget. Is there an easier way to stay on top of it?

October 16, 2023

Question:

I'm using an excel spreadsheet to maintain my budget. Is there an easier way to stay on top of it?

Answer:

We are strong believers of reverse budgeting, in which you map out all your "fixed" expenses (like your mortgage, utilities, car payment, etc.), then automate your savings (retirement, education, vacation savings, holiday savings, etc.), and then use the rest for your everyday expenses and needs (like groceries, eating out, personal care, etc.).

We are also strong proponents of paying off your credit card weekly if you use one to ensure you are not losing sight of your spending (this will help you "realize" how much you are spending by the cash in your checking account).

Do your friends ask you financial questions?
Pass those questions on to us at AskRPG@rootedpg.com and we will feature them in our future newsletters.

Asking for a Friend - How often should I be checking my investment portfolio?

October 9, 2023

Question:

How often should I be checking my investment portfolio?

Answer:

That depends on why you’re checking.

We usually suggest no more than once a quarter or unless you know you want to take some action such as tax loss selling or rebalancing.

The temptation, especially in down markets is to sell with the hope of stemming losses. That is the worst time to do anything as markets can turn around quickly.

Working with an advisor can be a way to keep your finger off the “sell” button.

A well-constructed portfolio can keep you grounded in the worst of markets and prevent you from unwisely chasing returns in a bull market.

Do your friends ask you financial questions?
Pass those questions on to us at AskRPG@rootedpg.com and we will feature them in our future newsletters.

Asking for a Friend - Should I use a password manager?

October 2, 2023

Question:

I realize this is not a financial question, but I was recently sitting around with a group of friends, and we got on the subject of passwords. I remember you saying something about a password manager, but now I can't remember!

Personally, I have so many usernames and passwords for hundreds of websites that I use, do you think I should use a password manager?

Short answer: YES!

Long answer: While we are not cyber security experts, we work with one! He strongly recommends using a password manager. His top pick is 1Password. This "How to Geek" article also gives some good password tips and provides some password managers you might want to scope out.

Do your friends ask you financial questions?
Pass those questions on to us at AskRPG@rootedpg.com and we will feature them in our future newsletters.

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