I hope this Sunday finds you in a cheerful spirit ahead of this evening’s Super Bowl game. Regardless of who you are cheering for (go Philly!), and what festivities you have planned, I would be remiss if I didn’t arm you with the perfect conversation starters. After all, this is the year of “Owning It!” So, here are three questions, and subsequent detail, that you can use with your friends and family. You can tell them that Charisse says that it is ALL RIGHT to talk money at a superbowl party as you stroll over to the food – why not talk about ways to make money with the people you love in a comfy environment.
- Are you doing anything to take advantage of the recent market tumble? The stock market took a fall last week on concerns of inflation, pending interest rate hikes, and political uncertainty. CNN reported these reasons, as well as two others – worries over the bond market and a necessary correction – that made last week’s stock market fall the worst in two years. Remember, stock prices won’t go up forever and I’ve been waiting for a fall because that means a potential buying opportunity. It is incredibly difficult to time the market, however, for when you should buy stocks, ETFs, or mutual funds. I encourage you to keep your eyes on any securities you’ve wanted to buy, but have been out of reach with the market surge last year. Figure out the price you want to buy it, and what price you would sell it to make money – do your homework and think about how your actions will affect your entire portfolio.
- Do you know the tax advantages of donor-advised funds? A donor-advised fund is an investment account held for charitable purposes. Donors (like you or me) can take tax deductions when they put money in, then recommend grants to charities over time. The largest brokerage houses hold these accounts, as well as individual charities and community foundations. As the Wall Street Journal reports, these funds have grown in popularity in recent years, with total assets in these funds climbing to just under $90 billion at the end of 2016. And, the new tax law provided an incentive for people to stash money away in donor-advised funds in the face of the new standard deduction of $24,0000 for married couples and $10,000 deduction at the state and local level. Ask your financial advisor about these funds.
- Are you still sitting on an underwater property, or know someone who is? There’s no shame in being underwater on your home, and who are we to shame others. In the U.S., approximately 2.5 million homes are still worth more than their mortgage debt, even 10 years post a housing crash that wiped out $11 trillion in household wealth – we've all been touched in some way! Ryan Dezember, a WSJ reporter, shared his own journey recently, and it’s an incredibly humbling read that offers insight into how to bounce back. Your past money circumstances won’t define your future, and while it can feel that way at times, keep taking action to figure a way out.
Instead of wishing to win big on a Super Bowl pool, you can take an alternative approach – take destiny into your hands by starting a productive conversation on how to make yourmoney grow and encouraging each other to take positive action with their investments.