Posts by plfarnworth

The Quality of Life

Posted by on Feb 20, 2018 in Financial Planner Boise ID | Comments Off on The Quality of Life

People getting ready to retire think about all the things they plan to do – things that were restricted due to working. They plan extensive trips, take care of grand-kids, volunteer, play golf. What is not usually on the radar for many retirees is what will retirement look like in 10 or 20 years. Watch this video and answer 3 simple questions. You may not need an answer today, but let these questions guide some of the decisions you make during retirement. More information on Quality of Life ...

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Beware! Thieves!

Posted by on Feb 14, 2018 in Financial Planner Boise ID | Comments Off on Beware! Thieves!

IRS is open for business. However, refunds can be held up for closer scrutiny – especially if you are claiming refundable child tax credit or earned income credit. Measures to help detect tax identity theft and refund fraud could result in delays. Emerging Threats New tax bill may increase tax fraud this year. Experts warn that the combination of new laws, IRS budget cuts, and data breaches gives way for hackers to commit tax identity theft. For example, the Equifax breach in 2017 exposed the Social Security numbers of 143 million people, which can be used to file fraudulent tax returns. The IRS has also already warned about phishing emails appearing to come from the IRS and ask for personal tax information. The best advice for avoiding tax fraud is to file your taxes as early as possible. What to know about the Spectre and Meltdown vulnerabilities Every year, we face new major cybersecurity incidents that seem more broadly damaging than those in the past. This year has started off no differently, with the discovery of the Spectre and Meltdown vulnerabilities, which affect nearly every type of device made in 1995 or later. Meltdown and Spectre are hardware vulnerabilities that were discovered in nearly every processor, the main hardware in devices such as computers and smartphones. The flaws allow hackers to access your device’s memory, including your passwords stored in a manager or browser, emails, photos, browsing history, private documents saved on your device, and more. The flaws were shared with technology industries before being shared with the public to give the companies a chance to create patches for the vulnerabilities. It is very likely that your devices are affected by these flaws. Thus, it is imperative that you update all of your devices quickly and regularly as more patches become available. It is also important to update your browsers, operating system, and software programs. Below is a list of patch details for some popular devices and operating systems. Apple: Apple users should be running iOS 11.2.2 on iPhones and iPads to protect themselves against the vulnerabilities. Mac users should be using macOS 10.13.2 and AppleTV should be running tvOS 11.2. If you use Safari, be sure it has been updated to version 11.0.2. Your devices should prompt you to update automatically, but you can learn more about the update here. Google/Android: Android users should update their devices using the Android 2018-01-05 Security Patch Level. If Google Chrome is your preferred browser, be sure to update to version 64 but note that more updates may become available later. Chomebooks should all be updated to version 63, which started being pushed out in December of 2017. You can get more details on other Google products and patches here. Microsoft/Windows: Windows has pushed updates following the Spectre and Meltdown vulnerabilities but was forced to shut down the updates temporarily as they caused issues on some devices. Older Windows devices may experience slower performance after applying the patch. You can check if a patch is available your device here. Your device should prompt you to update automatically. Linux: Linux released an update for devices back in December 2017. You can access the update here....

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Is the stock market giving you indigestion?

Posted by on Feb 6, 2018 in Financial Planner Boise ID | Comments Off on Is the stock market giving you indigestion?

Is the stock market giving you indigestion? The last week has seen 2000 points disappear on the Dow.  This seems like a large amount of change. Let’s put it in perspective.  The Dow was at 26,600.  A 10% correction is a move of 2,660 points.  The market changes are within normal correction movement. Many economists and fund managers have been anticipating a market correction.  It was a matter of when. Listen to Brian Wesbury’s short video on the stock market.  He says the market is experiencing some heart burn but it is not a heart...

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Are We On A Sugar High?

Posted by on Jan 23, 2018 in Financial Planner Boise ID | Comments Off on Are We On A Sugar High?

The stock market has been on a terror. The Dow blowing through a 1000 point increase in just a few days from the end of 2017 into the new year. The S&P rose 19.4% excluding dividends, in 2017 and is up again in 2018. Are we on a sugar high? Can this growth be sustained? Aren’t we do for a market correction? Following several economists and market strategists, there is a consensus that growth will continue in the US and international economies for 2018. Fidelity ‘simplified’ a complicated topic. Fidelity states there are 3 basic concepts for a bright economic outlook. We have resolved many of our structural issues. Economy is doing better than people think. Labor market remains strong. Unemployment rates are the lowest they have been in decades. No immediate inflation concerns CPI total and CPI core total hovering at 2% (per Factset) Company earnings have been growing again after S&P Dow Jones indices being flat for 2014, 2015 & 2016. (Stock prices follow earnings.) There is more stimulus coming out of Washington. Taxes- Tax Bill is estimated to cut 2018 tax obligations by about $200 Billion. Fidelity estimates that will increase GDP by 0.3%. Cut in corporate taxes will add about $10 in earnings to companies that are a part of the S&P 500 Index. Significant repatriation of cash sitting on foreign balance sheets is likely. ($2.3 Trillion available for S&P 500 Companies alone.) Deregulation (e.g. Energy, Financial, Healthcare) Fiscal Stimulus           -Infrastructure (next?)           -Increase in Defense spending           -Rebuilding of Houston, Florida & Puerto Rico The future is not without risks Geopolitical (North Korea, Iran/Saudi Arabia) US Trade Policy- (NAFTA, China i.e. protectionism) Slowdown in China? Monetary policy mistake? What is an investor to do? Be diversified among asset classes i.e. stock, international, bonds. (Multiple funds invested in Large Cap is not diversified.) Brian Westbury, Chief Economist for First Trust, states “The better strategy for most investors is don’t sell. Some sort of correction is inevitable but know one knows for sure when it will happen and few have discipline to take advantage of the situation.”  ...

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Financial Resolutions

Posted by on Jan 8, 2018 in Financial Planner Boise ID | Comments Off on Financial Resolutions

Financial resolutions are one of the top 3 new year resolutions (NYR) people make. What financial resolution should you make? It depends – – on what your money personality style is. Olivia Mellan describes 5 basic money personalities in her book Money Harmony. Most people are predominantly one style with some traits of a secondary style. Which style are you? Take this quiz to find out > Financial Personality Quiz . There isn’t one style that is better than another. Each has good qualities and short comings. The key is to keep your style in balance.   Hoarders love managing their money. They will have financial goals and prioritize these goals. They can complain about the cost of items – especially those seen as frivolous. Their gifts are ALWAYS practical – like the husband who gave his wife a vacuum for an anniversary present. (They are no longer married.) So, what would a new year resolution be for a Hoarder? Their house is usually in good financial order. A resolution would be along the line of ENJOYing their money and the benefits it can provide. NYR: Buy a frivolous gift for a loved one or for yourself. Take a friend to lunch. Practice giving to others weekly and giving frivolous, decadent gifts.   Spenders tend to be impulsive buyers. They are looking for immediate pleasure in their purchases. They tend to be emotional spenders – when the going gets tough the tough go shopping. They don’t like budgets. It is hard for them to hang on to any savings. NYR: Write down what you spend for 1-week listing amounts and items. Evaluate your behavior. Choose 1 thing to change like fewer lattes. Make a Spending Plan & monitor monthly (Perception change on purpose of budget.) Set up automatic saving contributions especially retirement.   Avoiders do just that – avoid all thing financial. They don’t open their mail regularly. Bills are frequently late. They don’t do bank reconciliations. They are the last to do their tax return, filing extensions. Avoiders don’t know what they have, what they owe or what they spend. NYR: Set up auto deposit for paychecks Set up auto pay of bills Do monthly review of your financial picture. You might invite a financially savvy friend to join you. Set a savings goal – for an emergency fund and retirement.   Ammassers are happiest when they have large amounts of money to spend, save or invest. They feel empty without having money to manage. They often equate their amount of money to self-worth & power. The flip is also true. If there is lack, they feel like a failure. NYR: Take a regular break from monitoring your money. Begin with 1 day and add additional days over time. Strive for only weekly monitoring. Find a desire, dream or goal that doesn’t take money and isn’t about money. Experiment with finding pleasure from something else like a hobby or volunteering.   Money Monks are uncomfortable with money. They tend to have a modest lifestyle. They feel money is evil or dirty. Too much money will corrupt you. They are the last to collect their inheritance. NYR: Study wealthy people you like & respect. How do they handle their money? Imagine having great wealth. What good things could you do with great wealth? Remember, every style has good qualities and short comings. Your resolution is to keep your money personality in balance.    ...

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