easadvice

From Wall Street to Main Street: Lessons from New York

Thu, 23 Jul 2026 13:32:44 GMT

There is something different about standing on Wall Street. As a financial advisor, CFP® professional, Certified Kingdom Advisor®, and President/CEO of Encompass Advisory Services, I spend much of my time helping families make wise decisions about money, retirement, income, risk, and legacy. Walking through New York’s Financial District brought many of those conversations to life in a new way.

Seeing the New York Stock Exchange and the Charging Bull was memorable. We often talk about “the market” as though it is simply a collection of numbers on a screen. In reality, it represents businesses, employees, innovation, opportunity, confidence, fear, and millions of financial decisions. The bull symbolizes strength and optimism, but successful investing requires more than optimism. It requires discipline, diversification, perspective, and a financial plan built to endure both rising and declining markets.

After exploring the Financial District, I made my way to historic Stone Street for dinner. The outdoor restaurants, historic buildings, and energy of the area provided a great opportunity to slow down and enjoy the experience.

Professional development was the purpose of the trip, but enjoying New York was also part of it. That balance reflects the mission of Encompass Advisory Services: Encompassing Faith, Family, Fitness, and Fun through Financial Planning.

The K-Shaped Economy

The primary purpose of the trip was attending presentations hosted by J.P. Morgan Asset Management. One of the most thought-provoking discussions was Dr. David Kelly’s presentation on the K-shaped economy.

A K-shaped economy describes how different groups can experience the same economy in very different ways. Those who own investments, businesses, real estate, and other appreciating assets may continue building wealth. Meanwhile, families without those assets may struggle with inflation, housing costs, debt, and the rising cost of everyday necessities.

However, the discussion also included an important point. The lower portion of the K may be more resilient than many people realize. Employment, wage growth, and consumer activity may be supporting households more than some headlines suggest.

Both things can be true. Some families are doing better than expected while still facing significant obstacles to building long-term wealth. That is why personalized financial planning matters. Two families earning similar incomes may have completely different financial realities. One may own a home, have manageable debt, maintain emergency savings, and contribute to retirement accounts. Another may be renting, carrying high-interest debt, supporting extended family, and struggling to save.

The responsibility of a financial advisor is not simply to interpret national economic statistics. It is to understand the person and family sitting across the table. As CFP® professionals, we are called to evaluate the complete financial picture.

As Certified Kingdom Advisors®, we must also recognize that money is more than a tool for accumulation. It is a resource entrusted to us. Biblical stewardship requires wisdom, generosity, responsibility, and purpose.

The K-shaped economy raises important questions about how we help families improve their financial position, care for those who are struggling, and use financial success to bless our families, employees, communities, and the Kingdom of God. Those are not merely financial questions. They are stewardship questions.

Breakfast With a Fund Manager

One of the highlights of the trip was having breakfast with Hamilton Reiner, a J.P. Morgan fund manager responsible for strategies that include JEPQ and ROCQ.

https://am.jpmorgan.com/us/en/asset-management/protected/adv/bios/hamilton-reiner/

I had the opportunity to ask direct questions and receive personalized insight into both funds. That type of access was extremely valuable because income-producing strategies are increasingly important for retirees and other investors seeking income while maintaining market exposure. Our conversation reinforced a principle I believe strongly. An investment should never be evaluated by yield alone. Advisors must also consider total return, volatility, upside participation, taxes, portfolio construction, and the role that investment is intended to serve.

At EAS, we believe every investment should have a job. Some investments are designed for growth. Others produce income, manage volatility, preserve liquidity, or provide diversification. The advisor’s responsibility is to determine how those pieces work together within a complete financial plan.

A Very New York Ending

No trip to New York would be complete without a transportation adventure. On my way back to LaGuardia, I missed the correct subway stop, ended up at Forest Hills–71st Avenue, reversed direction, returned to Jackson Heights, and finally transferred to the Q70 airport bus.

It was confusing in the moment, but funny once I was headed in the right direction. It also provided one final financial-planning lesson. Knowing your destination is not enough. You still need the correct route.

Markets change. Economies change. Tax laws change. Families and goals change. Good financial planning is not about predicting every turn perfectly. It is about knowing the destination, monitoring the route, and making wise adjustments along the way.

Final Thoughts

This trip brought together professional development, investment research, meaningful conversations, history, food, and travel. Standing on Wall Street was memorable. Dinner on Stone Street was enjoyable. The K-shaped economy discussion was thought-provoking. Breakfast with Hamilton Reiner provided valuable insight into JEPQ, ROCQ, and the growing demand for income-focused strategies.

The greatest takeaway was simple. Financial advice is personal. Behind every portfolio is a person. Behind every financial plan is a family. Behind every investment decision is a goal, concern, responsibility, or dream.

As advisors, CFP® professionals, and Kingdom-minded stewards, our role is to help people navigate uncertainty with wisdom, discipline, perspective, and purpose. At Encompass Advisory Services, that remains our commitment for Encompassing Faith, Family, Fitness, and Fun through Financial Planning.

Should Parent PLUS Loan Limits Change Your Family College Strategy?

Tue, 14 Jul 2026 13:57:10 GMT

College Strategy Perspectives

Helping Families Ask Better Questions About College, Cost, Career & Purpose.

Should the New Parent PLUS Loan Limits Change How Your Family Approaches Paying for College?

Most parents begin college planning by asking three familiar questions.

Can my student get admitted?

Is this the right college?

What will it cost?

They're important questions.

But recent changes to federal student lending suggest there may be another question that deserves equal attention.

If additional financing becomes necessary, will our family have the options we expect?

For decades, many families assumed the answer was yes.

That assumption deserves another look.

Beginning July 1, 2026, the One Big Beautiful Bill Act (Public Law 119-21) fundamentally changed the Parent PLUS Loan program by establishing annual and lifetime borrowing limits for new borrowers. (One Big Beautiful Bill Act, Public Law 119-21; U.S. Department of Education.)

The legislation doesn't simply change how much parents can borrow.

It raises a broader strategic question.

Have the rules for paying for college changed enough that families should reconsider the order in which they make college decisions?

What Changed with Parent PLUS Loans?

Beginning July 1, 2026, Parent PLUS Loans are generally limited to $20,000 per academic year per dependent student and $65,000 in total borrowing per student, replacing the previous structure that generally allowed parents to borrow up to a student's cost of attendance, less other financial aid. (One Big Beautiful Bill Act, Public Law 119-21; Federal Student Aid.)

For some households, these limits may never become relevant.

Others may never borrow at all.

But for families considering colleges where annual costs significantly exceed those limits, another question naturally emerges.

If federal financing no longer covers the difference, what comes next?

That question carries different implications today than it did only a few years ago.

The Fourth Question Every Family Should Ask

Most college planning conversations naturally focus on three questions.

Can my student get admitted?

Is this the right academic and personal fit?

What will it cost?

Those questions remain important.

Today's lending environment suggests a fourth question belongs alongside them.

How will this decision fit within our family's overall financial strategy?

Notice what happens when that question enters the conversation.

Admissions are no longer evaluated independently.

Neither is cost.

Financial aid, financing, retirement planning, and long-term family goals become connected decisions rather than separate conversations.

That is a fundamentally different way to think about college planning.

And it may become increasingly important under today's lending rules.

Financing Capacity Is Not the Same as Financial Strength

Many parents have spent years helping their student become a competitive college applicant.

They've focused on academic performance.

Course rigor.

Leadership.

Activities.

Essays.

Campus visits.

Far fewer have considered whether their own financial profile may influence how that education is ultimately financed.

When Parent PLUS borrowing reaches its federal limits, many families may begin exploring

private education loans.

Unlike federal lending, private lenders generally evaluate traditional underwriting factors including credit history, household income, debt-to-income ratio, existing financial obligations, employment history, and overall repayment capacity. (Consumer Financial Protection Bureau; Federal Student Aid.)

In many respects, the financing conversation begins to resemble applying for a mortgage.

That raises questions many parents have never needed to ask.

Would an existing mortgage affect borrowing capacity?

Would business debt matter?

Could investment property loans influence financing options?

Might two families earning similar incomes receive different lending decisions because their overall financial profiles differ?

These questions have always existed in private lending.

The difference is that more families may now encounter them.

Have Families Been Asking the Right Questions in the Wrong Order?

For many years, the typical planning sequence looked something like this.

The student develops a college list.

Applications are submitted.

Admissions decisions arrive.

Then the family determines how to pay.

The new Parent PLUS loan limits introduce another possibility.

Should financing be evaluated before the college list is finalized rather than afterward?

That question isn't driven by fear.

It's driven by strategy.

According to the College Board, the published cost of attendance at many private nonprofit colleges now exceeds $60,000 to $80,000 per year , meaning a four-year education can approach—or exceed— $300,000 before future tuition increases are considered. (College Board, Trends in College Pricing and Student Aid.)

Viewed through that lens, the order in which families make decisions may matter more than ever.

A Quiet Change with Broader Implications

Every major financial decision carries assumptions.

Buying a home.

Planning for retirement.

Starting a business.

College is no different.

For years, one assumption quietly existed in the background.

If additional borrowing became necessary, Parent PLUS Loans would likely provide sufficient financing.

The new federal lending rules suggest that assumption may no longer apply in every circumstance.

The question is not whether every family will be affected.

Many won't.

The more important question may be whether families understand the implications before making one of the largest financial commitments of their lives.

A Different Way to Think About College Decisions

Perhaps the most important college planning question is no longer:

"Can my student get admitted?"

It may increasingly become:

"Does this college decision align with our family's long-term financial strategy?"

Those are very different questions.

One focuses on gaining admission.

The other recognizes that admissions decisions, financial aid, financing, cash flow, retirement planning, and long-term family goals are interconnected.

The recent changes to Parent PLUS Loan program do not answer that question.

They simply make it more important to ask.

References

One Big Beautiful Bill Act (Public Law 119-21) U.S. Congress. Student loan reform provisions effective July 1, 2026.

Federal Student Aid – Parent PLUS Loans U.S. Department of Education.

Consumer Financial Protection Bureau – Private Student Loans

College Board – Trends in College Pricing and Student Aid

National Center for Education Statistics (NCES)

The K-Shaped Economy: Applying Timeless Biblical Principles to Modern Financial Challenges

Mon, 06 Jul 2026 18:10:58 GMT

Imagine two families living on the same street. Both earn approximately the same income, both work hard, and both desire financial security. Yet one family feels increasingly optimistic about the future while the other struggles to make ends meet. How can two households living in the same neighborhood experience such different economic realities? The answer may be found in what economists call a K-shaped economy.

Economists have increasingly described the United States as operating within a K-shaped economy . While the phrase may sound technical, the concept is relatively simple and helps explain why so many Americans have vastly different perceptions of the current economy. Some families feel financially secure and optimistic about the future, while others continue to struggle with rising costs and increasing financial pressure. Both perspectives are valid because both are occurring simultaneously.

Unlike a traditional economic recovery, in which most individuals and businesses improve together, a K-shaped economy reflects a divergence. One segment of society continues to move upward as income, investments, and business opportunities grow. Another segment moves in the opposite direction, experiencing higher debt burdens, stagnant purchasing power, and greater financial uncertainty. As a result, two neighbors with similar incomes may have entirely different financial experiences depending upon their assets, liabilities, and long-term financial decisions.

This distinction is important because a K-shaped economy is driven less by income than by ownership and stewardship. Individuals and families who own productive assets, such as businesses, investment portfolios, or appreciating real estate, often participate in long-term wealth creation as those assets increase in value. Conversely, households that own few appreciating assets while carrying significant consumer debt often find themselves devoting a growing percentage of their income to interest payments and rising living expenses. Over time, these differences compound, widening the gap between financial stability and financial stress.

As financial planners, our responsibility is not to predict every economic cycle but to help families prepare for them. Markets rise and fall, interest rates fluctuate, governments change policies, and technology continues to reshape the economy. While these external forces remain largely beyond our control, the financial decisions we make in response to them remain firmly within our control. That is precisely why biblical financial principles remain as relevant today as they were thousands of years ago.

At Encompass Advisory Services, our mission is to Encompass Faith, Family, Fitness, and Fun through Financial Planning . Our vision is to impact the world by implementing biblically based principles through financial planning for our clients and our firm while expanding the Kingdom of God . These statements are more than organizational goals; they define how we believe financial planning should be practiced. Sound financial advice is not simply about maximizing investment returns. It is about helping individuals become faithful stewards of the resources God has entrusted to them.

The first biblical principle is faithful stewardship . Scripture reminds us in 1 Corinthians 4:2 that, “Moreover it is required in stewards that one be found faithful.” Financial planning begins with the recognition that we are managers rather than owners. Every dollar we earn, save, invest, or spend has been entrusted to us by God for a purpose. Good stewardship requires intentionality. It encourages disciplined spending, thoughtful saving, prudent investing, and careful preparation for future needs. In a K-shaped economy, these habits often determine whether families build long-term financial resilience or remain vulnerable to changing economic conditions.

The second principle is the reduction and eventual elimination of unnecessary debt . Although the Bible does not prohibit borrowing in every circumstance, it consistently warns about the loss of freedom that debt creates. Proverbs 22:7 reminds us that “the borrower is servant to the lender.” Debt limits flexibility, increases financial stress, and commits future income to past consumption. During periods of higher interest rates and elevated living costs, these burdens become even more significant. Families that prioritize debt reduction frequently discover that every loan they eliminate increases their ability to save, invest, respond to unexpected challenges, and pursue opportunities that previously seemed out of reach. Financial freedom is rarely achieved through higher income alone; it is often achieved by reducing financial obligations.

The third principle is generous giving . During periods of economic uncertainty, it is natural to become more protective of financial resources. Scripture, however, presents generosity as an act of faith rather than a function of abundance. Proverbs 11:24 teaches, “There is one who scatters, yet increases more; and there is one who withholds more than is right, but it leads to poverty.” Generosity reminds us that our security ultimately rests in God’s provision rather than our own ability to accumulate wealth. Individuals who consistently practice generosity often discover that financial success is measured not only by what they retain but also by the positive impact they have on the lives of others.

These principles are closely aligned with the Core Values that guide our firm. Faith reminds us to seek God’s wisdom before relying solely upon human understanding. Family encourages us to make financial decisions that strengthen the relationships entrusted to our care. Fitness recognizes that stewardship extends beyond finances to include our physical health, which enables us to serve God and others effectively. F un reminds us that God intends for us to enjoy the blessings He provides and to create meaningful experiences with those we love. Finally, our commitment to Fiduciary responsibility reflects our obligation to place our clients’ interests ahead of our own while providing competent, ethical, and objective financial advice.

Perhaps the greatest lesson of a K-shaped economy is that financial success is seldom determined by economic conditions alone. While we cannot control inflation, interest rates, market volatility, or government policy, we can control our response through wise stewardship, disciplined saving, prudent investing, intentional debt reduction, and consistent generosity. These principles have guided faithful men and women through periods of prosperity, recession, war, inflation, and uncertainty for centuries because they are rooted in timeless truths rather than temporary economic conditions.

The objective of financial planning has never been simply to accumulate wealth. Rather, it is to faithfully manage the resources God has entrusted to us so that we may provide for our families, bless others, and advance His Kingdom. Economic conditions will continue to change, but biblical principles do not. Regardless of whether we find ourselves on the upward or downward branch of today’s K-shaped economy, faithful stewardship remains the path toward greater financial freedom, lasting significance, and a life that honors God.

“Trust in the Lord with all your heart, Lean not on your own understanding; In all your ways acknowledge Him, And He shall direct your paths.” — Proverbs 3:5–6 (NKJV)

God Owns It All: A Lesson from the Lake

Thu, 26 Mar 2026 14:06:51 GMT

Some of the greatest lessons I've learned about financial planning haven't come from a classroom or a client meeting. They have come from everyday experiences that remind me of biblical truth. One of those moments happened while I was fishing along the banks of Percy Priest Lake near Nashville, Tennessee.

I had spent the afternoon doing what most fishermen do. I selected the right rod, tied on an appropriate lure, adjusted my presentation, and experimented with different retrieves while trying to catch black crappie. Every cast involved preparation, patience, and a little optimism. Then something unexpected happened. An otter quietly appeared a short distance away. It slipped beneath the surface and, moments later, resurfaced with a fish in its mouth. It calmly ate its meal, dove again, and repeated the process before disappearing as quietly as it had arrived. As I watched, one simple thought came to mind. Here I was relying on equipment, experience, and strategy, while the otter simply lived according to the design God had given it. It wasn't striving to master the lake or worrying about where its next meal would come from. It was simply living within God's provision. Immediately, Psalm 24:1 came to mind: "The earth is the Lord's, and all its fullness, the world and those who dwell therein" (NKJV). The lake belonged to God. The fish belonged to God. Even the opportunity for me to stand on that shoreline enjoying His creation was a gift from Him. None of it belonged to me.

That is one of the foundational principles of biblical stewardship. God owns everything, and we are entrusted to manage what already belongs to Him. Yet we often speak of my money, my investments, my retirement, or my business. Scripture presents a different perspective. We are not owners; we are stewards. As a Certified Kingdom Advisor (CKA®), I believe this distinction changes the way we approach financial planning. Certainly, we should invest wisely, prepare for retirement, reduce unnecessary debt, minimize taxes, and build financial security. Those are all important responsibilities. However, biblical stewardship asks an even deeper question: Are we managing God's resources in a way that honors Him and advances His purposes? That conviction aligns closely with the vision we pursue at Encompass Advisory Services: to impact the world by implementing biblically based principles through financial planning for our clients and our firm while expanding the Kingdom of God. Financial planning is about far more than growing wealth. It is about faithfully managing the resources God has entrusted to our care.

Watching the otter also reminded me of the balance between responsibility and trust. Scripture calls us to work diligently, plan wisely, and exercise discipline, but it never teaches that our security ultimately depends on our own efforts. Jesus reminded His followers in Matthew 6:26 that if our Heavenly Father provides for the birds of the air, how much more will He care for those created in His image? We should plan responsibly without believing that everything depends upon us. That afternoon became much more than a fishing trip. It reminded me that God provides, God owns it all, and we are called to steward rather than control. When we truly embrace that truth, our perspective begins to change. Ownership gives way to stewardship, control gives way to trust, and anxiety gives way to peace.

I hope I see that otter again someday. Whether I do or not, the lesson will remain the same. Work hard. Plan wisely. Be a faithful steward. But never forget who the true Owner has always been.

Biblical Definition of Stewardship

Tue, 21 Oct 2025 16:46:40 GMT

When I speak about stewardship—whether in the context of financial planning, family leadership, or faith—I’m not just referring to managing money well. Stewardship, in its truest biblical sense, is about ownership and trust. It’s the recognition that God owns everything , and we are simply caretakers of what He has entrusted to us. Psalm 24:1 declares, “The earth is the Lord’s, and everything in it, the world, and all who live in it.” That verse sets the foundation for a proper understanding of biblical stewardship: God is the owner; we are the stewards.

A steward is someone who manages the affairs of another. In biblical times, a steward might have overseen a household, managed crops, or distributed resources on behalf of the master. Today, that stewardship extends into our finances, our families, our health, our time, and our spiritual gifts. Everything we possess—our careers, our influence, our resources—has been temporarily placed in our care. God has made us managers, not owners, and that distinction carries both privilege and accountability .

Ownership and Accountability

Jesus reinforced this principle in the Parable of the Talents (Matthew 25:14-30). The master entrusts his servants with resources “each according to his ability.” Two servants invest wisely and multiply what they’ve been given; the third hides his portion out of fear. When the master returns, he praises the faithful stewards but rebukes the one who buried his talent. The lesson is timeless: God expects us to use, grow, and multiply what He has placed in our hands—not to waste it or guard it out of fear. Stewardship requires faith in action. It’s not about how much we have, but how faithfully we manage what we’ve been given.

In modern terms, this means we are accountable for every resource God has entrusted to us—our money, our children, our businesses, our influence, and our opportunities. Luke 16:10 reminds us, “Whoever can be trusted with very little can also be trusted with much.” True stewardship begins with faithfulness in the small things. If we’re careless with little, we cannot be trusted with greater blessings.

Stewardship and Generosity

One of the most visible expressions of stewardship is generosity. When we give, we acknowledge that what we have belongs to God. Giving is not about losing something—it’s about returning what already belongs to Him. Second Corinthians 9:6-7 teaches that “whoever sows sparingly will also reap sparingly, and whoever sows generously will also reap generously.” Generosity is the fruit of gratitude and trust. It declares that our confidence is not in our bank accounts or possessions, but in the Provider Himself.

As a financial planner and Christian leader, I’ve seen this principle change lives. When people move from ownership to stewardship, fear gives way to freedom. They begin to see money not as a master, but as a ministry tool —a way to advance God’s purposes. Stewardship is about aligning financial decisions with eternal values. It’s budgeting with wisdom, investing with purpose, and giving with joy.

Stewardship Beyond Finances

Stewardship extends far beyond money. It encompasses how we treat our bodies, how we raise our families, and how we use our time and talents. First Peter 4:10 tells us, “Each of you should use whatever gift you have received to serve others, as faithful stewards of God’s grace in its various forms.” Our lives are a sacred trust. Whether you are a teacher, business owner, pastor, or parent, your calling is a form of stewardship. God has given you influence and responsibility. How you use them reveals your heart toward Him.

Time, for example, is one of our most valuable yet limited resources. Every hour we waste is one we can never recover. Colossians 3:23-24 instructs us to “work heartily, as for the Lord and not for men.” Stewardship means living intentionally—working diligently, resting wisely, and remembering that even our leisure can glorify God when it’s used to refresh and restore the vessel He’s entrusted to His purposes.

The Eternal Perspective

Ultimately, stewardship is an act of worship. It’s the daily decision to honor God with all that we have and all that we are. It’s saying, “Lord, I recognize that none of this is mine. I am merely the manager of Your blessings.” When we live with that mindset, everything changes. We stop chasing temporary success and start investing in eternal impact.

In the end, the question we will each face is not “How much did you earn?” or “What did you build?” but rather, “How faithful were you with what I gave you?” The faithful steward lives with eternity in view—using today’s resources to shape tomorrow’s Kingdom.

As Proverbs 3:5-6 reminds us, “Trust in the Lord with all your heart and lean not on your own understanding; in all your ways submit to Him, and He will make your paths straight.” That is the heartbeat of biblical stewardship—trusting God fully, managing His blessings wisely, and walking faithfully until the day He says, “Well done, good and faithful servant.”

Understanding Sequence of Returns Risk

Wed, 01 May 2024 17:38:13 GMT

When planning for retirement, one crucial factor often overlooked is the sequence of returns risk. This term refers to the variability and uncertainty of the order in which investment returns occur and is particularly impactful during the withdrawal phase in retirement. Unlike average returns that blend gains and losses over the years into a smooth figure, sequence of returns emphasizes the timing of these returns, especially when you start withdrawing money from your retirement savings.

A clear illustration of sequence of returns risk can be seen in the comparative analysis outlined in the table below.

Portfolio A displays the investment returns from 2000 to 2016 in chronological order, while Portfolio B presents these same returns in reverse order. The results are telling: Portfolio A concludes the period with a remaining balance of $183,093, whereas Portfolio B finishes with a significantly higher balance of $582,674—a stark difference of $399,580. This disparity highlights the profound impact that early negative returns can have on the sustainability of a portfolio during the initial phases of retirement withdrawals.

This risk is unique because it underscores that it’s not just how much your investments return on average, but when these returns occur relative to when you are drawing on your investments.

Sequence of Returns Risk During Accumulation vs. Distribution Phases

The sequence of returns risk affects individuals differently depending on whether they are in the accumulation phase (saving for retirement) or the distribution phase (withdrawing during retirement). During the accumulation phase, the risk is relatively low. Over a long period, the highs and lows of market returns tend to average out. Early losses can be offset by later gains, and since there are no withdrawals reducing the balance, the portfolio has more time to recover from downturns. This is often referred to as 'dollar-cost averaging,' where ongoing investments can buy more shares when prices are low and fewer when prices are high, potentially reducing the average cost per share over time.

However, during the distribution phase, when retirees begin withdrawing funds to cover living expenses, the sequence of returns becomes critically important. Starting your retirement during a bear market or a period of low returns can deplete your savings more rapidly than if the same returns occurred later. This difference stems from having to sell off more investments to maintain the same withdrawal rate, potentially locking in losses and reducing the amount of capital that can benefit from future market recoveries.

Mitigating Sequence of Returns Risk

Fortunately, there are multiple strategies to mitigate the sequence of returns risk, ensuring a more stable financial foundation during retirement:

1. Maintain a cash reserve: Having a cash buffer can help manage withdrawals during market downturns without having to sell investments at a loss. This reserve can act as a financial shock absorber, allowing the portfolio more time to recover

2 . Diversify your investment portfolio: A well-diversified portfolio that includes a mix of stocks, bonds, and other assets can help buffer against market volatility. Bonds and other fixed-income investments often provide returns that counterbalance the risks of equity markets, offering steadier income streams during down periods.

3. Use a conservative withdrawal rate: Adhering to a conservative withdrawal strategy, such as the 4% rule, can reduce the risk of depleting your retirement funds too early. This strategy involves withdrawing a fixed, sustainable percentage from your portfolio each year, adjusted for inflation, regardless of market conditions.

4. Consider annuities: Annuities can provide a guaranteed income stream regardless of market conditions, which can be particularly useful to cover basic living expenses. This can reduce the pressure on the investment portfolio to perform, particularly during the critical early years of retirement

5. Delay Social Security benefits: Opting to delay the start of Social Security benefits can increase the monthly benefits, providing a larger financial base later in retirement. This can be a strategic move to counteract poor market performance in the early years of retirement.

By understanding and preparing for the sequence of returns risk, retirees can better safeguard their financial future, ensuring that they have enough funds to enjoy their retirement years without undue stress over market conditions. These strategies can help create a buffer against timing risks, making the transition from the accumulation to distribution phase smoother and more secure.

If you're interested in learning how to implement strategies that mitigate sequence of returns risk, we invite you to schedule an initial consultation. At Encompass Advisory Services, an independent Registered Investment Advisory firm, we are committed to partnering with you to navigate through your retirement planning with expertise and care.

Encompassing Faith through Financial Planning

Fri, 19 Apr 2024 20:22:16 GMT

Financial planning is a journey that goes beyond just budgeting and saving; it is a path that is deeply intertwined with our beliefs and values. In the realm of financial planning, the integration of faith can be a transformative and empowering force that enriches our journey towards financial well-being. Encompassing faith through financial planning involves aligning our beliefs, values, and aspirations with our financial goals, creating a holistic approach that transcends mere numbers and spreadsheets. By infusing our financial decisions with faith-based principles, we can cultivate a sense of purpose, direction, and spiritual fulfillment in our quest for financial stability.

Encompassing faith through financial planning is about acknowledging the role of divine guidance in our financial decisions. It is about recognizing that our beliefs shape our attitudes towards money and wealth, and that by aligning our actions with our faith, we can create a financial plan that reflects our values and aspirations. By integrating our faith into our financial planning, we can cultivate a sense of purpose and direction that transcends mere monetary goals.

Encompassing faith through financial planning is about embracing the idea that our financial journey is part of a larger spiritual path. By viewing financial decisions as opportunities to express our faith through generosity, stewardship, and ethical investing, we can create a legacy that reflects our commitment to living a purpose-driven life.

Encompassing faith through financial planning also involves seeking wisdom and guidance from our spiritual beliefs. Whether through prayer, meditation, or seeking counsel from religious leaders, incorporating faith into our financial decisions can provide us with clarity, peace of mind, and a sense of divine guidance in navigating the complexities of managing money. It is a journey of trust, surrender, and abundance, where we recognize that our financial well-being is interconnected with our spiritual growth and purpose in life.

Let us embark on this journey of financial empowerment with faith as our guiding light, knowing that by aligning our financial goals with our spiritual beliefs, we can achieve a sense of fulfillment that transcends material wealth.

How Do I Know If I Can Afford to Retire?

Fri, 25 Aug 2023 15:30:49 GMT

Retirement is a major life change, and it's important to be prepared for it. There are a number of factors to consider when transitioning into retirement, including your financial situation, your health, your lifestyle, your social connections, and your emotional well-being. It is important to work with an independent financial professional who can help you get organized, discuss your needs and assess your financial readiness to move into retirement.

Financial Situation

One of the most important factors to consider is your financial situation. How much money do you have saved for retirement? How much will you need to live comfortably? Will you need to rely on Social Security or other government benefits?

It's important to have a clear understanding of your financial situation so that you can make informed decisions about your retirement. You should consider working with a financial planner to create a retirement plan that meets your specific needs.

There are a few things you can do to determine if you're financially ready to retire:

Estimate your retirement expenses. This includes things like housing, food, transportation, healthcare, and entertainment. You can use a retirement calculator to help you with this. Here is a Link to an Excel worksheet to get you started .
Calculate your retirement income. This includes Social Security, pensions, 401(k)s, IRAs, and any other sources of income you expect to have in retirement. You can access your social security info by logging here: https://www.SSA.gov
Compare your expenses to your income. If your income is more than your expenses, then you can afford to retire. If your expenses are more than your income, then you may need to work longer or save more money before you can retire.

Health

Your health is another important factor to consider. How is your health now? How do you expect it to change in retirement? Will you need to pay for long-term care? If you have any health concerns, it's important to factor them into your retirement planning. You may need to make adjustments to your lifestyle or your budget to accommodate your health needs.

Lifestyle

How do you want to spend your retirement? What do you enjoy doing? How much travel do you want to do? Do you want to stay in your current home or move?

Your lifestyle will play a big role in your retirement. If you enjoy traveling, you'll need to make sure you have enough money saved to do so. If you want to stay active, you'll need to find activities that you enjoy and that are affordable.

Social Connections

Your social connections are also important. How important are your relationships with friends and family? How will you stay connected with them in retirement?

Retirement can be a time of social isolation, so it's important to stay connected with the people you care about. You may want to join a club or group, or you may want to volunteer your time.

Emotional Well-Being

Finally, it's important to consider your emotional well-being. How do you feel about retirement? Are you excited for the change or are you feeling anxious?

Retirement can be a time of great change, so it's important to be prepared for it emotionally.

Conclusion

Transitioning into retirement can be a daunting task, but it doesn't have to be. You don’t have to go it alone; a financial planner can help you assess your situation to help you determine if you can afford to retire. Considering the factors above and working with a professional can make sure you're prepared for a happy and fulfilling retirement. Encompass Advisory Services is an Independent Registered Investment Advisory firm with financial planners available to assist you.

TIME VALUE OF MONEY

Tue, 20 Jun 2023 21:27:02 GMT

The time value of money is a fundamental concept in finance that refers to the idea that money today is worth more than the same amount of money in the future. This is because money today can be invested and earn interest, while money in the future is subject to inflation and loses value over time. When it comes to long-term savings, understanding the time value of money is crucial. Here are five points to keep in mind:

1. Start saving early: The earlier you start saving, the more time your money has to grow. Even small contributions can add up over time thanks to the power of compounding interest. For example, if you start saving $100 a month at age 25 and earn an average annual return of 7%, you could have over $300,000 by age 65.

2. Consider the impact of inflation: Inflation is the rate at which the general level of prices for goods and services is rising. Over time, inflation can erode the purchasing power of your savings. This means that if you're saving for a long-term goal like retirement, you'll need to factor in the impact of inflation when determining how much you need to save.

3. Choose the right investment vehicles: When it comes to long-term savings, it's important to choose investment vehicles that offer the potential for growth over time. This might include stocks, mutual funds, or exchange-traded funds (ETFs). These investments come with some risk, but historically they have offered higher returns than more conservative options like savings accounts or CDs. Working with a financial professional can help with setting up a diversified portfolio consisting of quality investment options.

4. Be patient: Long-term savings requires patience and discipline. It's important to stay committed to your savings plan even when the market experiences ups and downs. Remember that over the long term, the stock market has historically trended upward, so it's important to stay invested and avoid making emotional decisions based on short-term market fluctuations.

5. Revisit your plan regularly: As you save for the long term, it's important to revisit your plan regularly to ensure that you're on track to meet your goals. This might involve adjusting your contributions, rebalancing your portfolio, or reassessing your risk tolerance. By staying engaged with your savings plan, you can ensure that you're making the most of the time value of money.

If you are interested in learning more about the time value of money and/or saving money over time, contact us today.