Cash is King + Mortgage Forbearance Options in the CARES Act

Photo by Thgusstavo Santana from Pexels

April 6th 2020

By Matt Miner

First, I hope you and the people you love are well as we slog though the Covid-19 pandemic. Here at our house, we’re trying to embrace the good parts about being together, get lots of exercise outside, and make progress on our daily work, yard, and house.

On Friday I released a video about conserving cash if your income is under pressure. It arose because of client inquiries, as well as Wall Street Journal reportage. This is the companion article.

Now is a good time to accumulate some cash. If your income is not reduced, cash should be accumulating automatically because there’s almost nothing you can go spend money on! This is why the economy is shrinking rapidly.

If you anticipate reduced income, here are some tactics to accumulate even more cash.

For federal student loan borrowers, take advantage of the government-offered deferral on your student loans until your earning situation becomes clear. Contact your loan servicer to exercise this option.

If you have debts you’re paying extra on, now might be a good time to press pause on those extra payments.

If you don’t forfeit an employer match, you might consider stopping contributions to your 401(k) or other retirement plan. You can always “make up” these contributions later in 2020 and still get the tax benefit. If ceasing contributions results in losing matching dollars entirely, you need to weight this carefully. Match dollars are compensation and losing comp is never fun!

This article was prompted specifically by client inquiries regarding mortgage relief in the CARES Act and two WSJ articles (paywall alert): “Struggling Borrowers Want To Pause Their Mortgage Payments. It Hasn’t Been Easy” and “How to Suspend Your Mortgage Payments During Coronavirus Turmoil“.

If you read those articles, you’ll see that even the people charged with implementing this legislation (FHA along with Fannie & Freddy) are going about it in different ways!

What we know:

The CARES Act seeks to provide relief for the 70% borrowers with mortgages owned or insured by the federal government or a federal agency if these debtors experience financial hardship because of the pandemic.

If your mortgage is eligible – a Federally Backed Mortgage under CARES Act (call your servicer and ask), you must make the request before the President rescinds the National Emergency declared on March 13th, 2020. Your servicer should have more information for you.

What we don’t know:

We don’t know how your lender will treat the payments. Will they be put on the end of the loan or will you owe a lump-sum payment at the end of the forbearance period? Different servicers answer this question differently. In the first case, you’re extending the time you pay your mortgage loan. In the second case, you’ll need to come up with a large sum of cash when the forbearance ends.

It is unclear whether you be subject to compound interest – interest on interest. Your servicer may tell you how they are handling this. When I reviewed the legislation, I could not find a clear answer to this question.

Here’s a quote in the WSJ from David Stevens, a former head of the Federal Housing Administration. “The messaging has not matched what’s established in policy yet. The confusion level is extremely high.” No surprise then that the rest of us are still figuring this out!

The article continues, “The Department of Housing and Urban Development sought to clear up some of the confusion this week, telling servicers they can compile the missed payments into a second, interest-free home loan for the borrower to pay off after the original mortgage. The guidelines apply to FHA insured mortgages, which make up about 15% of all active mortgages in the U.S. The federal regulator for Fannie Mae and Freddie Mac, the mortgage finance companies that back about half of the U.S. mortgage market, has instructed servicers to work with borrowers and to consider letting them tack their missed payments on to the end of their loan.”

Servicers Will Struggle to Help

As a savvy planner, you should know that mortgage forbearance sets up an existential conflict between mortgage debtors and mortgage servicers. Mortgage servicers are middlemen who handle payment processing, account reporting, and customer service for the owners of the mortgage. Servicers are required to keep making payments to the mortgage owners – even though their debtors are permitted to stop making payments to the servicer! This conflict means I don’t expect servicers to move especially fast to implement this relief – since it may doom their businesses!

Until the servicers can get their hands in the government cookie jar too….er, receive some relief from congress, my expectation is that they will slow-walk this process because the CARES legislation puts them in a completely untenable position from a cash standpoint.

My general financial planning recommendation about the mortgage relief provision in the CARES act is to steer clear unless your circumstances are dire. Here’s why:

1. You’ll spend time dealing with the mortgage company, and need to jump through whatever hoops are necessary

2. I am concerned they will mess it up, resulting in damage to your credit report. You will be able to repair these problems, but this result will require further effort on your part. I’m not saying this will happen. I’m just saying I don’t have confidence that it won’t happen.

3. No matter how the lender handles the missed payment, taking this route represent cash-flow relief at the expense of your wealth, since you’ll pay more interest over time – it amounts to increasing borrowing on your home. Mortgage forbearance may be better than credit cards or a family loan. But debt is my least favorite way to raise cash.

Pursuing the Mortgage Forbearance Option

If the mortgage forbearance provisions of the CARES act may still help your family, here is a potential tactic. Arrange a six month forbearance, and then at around the four-month mark, refinance your entire mortgage into a new note. This could buy you some time for your income to return to a more normal state. I don’t prefer this approach because it is contingent on three things you cannot directly control.

First, the mortgage you want will have to be available; if that caveat sounds dire, look at the economic carnage we’re experiencing right now.

Second, you need to have adequate income to acquire the new mortgage.

Third, you need to have adequate credit to qualify for the new mortgage.

Because no one knows the future and none of these things are directly under your control, in poker terms, this is a planning tactic for betting on the come. It’s not the type of conservative advice I prefer.

Finally, all this highlights the importance of your hefty-duty emergency fund. Warren Buffet has a gift for memorable language. He says, “When the tide goes out, you can tell who was skinny dipping.”

If this crisis exposed the need for more cash in your life, decide now that that will never happen again.

Matt Miner interview on Episode 81 of The Military Money Show with Lacey Langford

We are excited to share our recent collaboration with Lacey Langford, the Military Money Expert. Our goal is to help bring personal finance education to the military community.

You can listen to the first of three episodes here.

To all current and former military members and their families: Thank you for your service.

For everyone who listens, we hope you enjoy the show.

The PLC Wealth Team – Josh, Mike, Sandra, & Matt

What will you accomplish in 2020? It starts with your values

December 19, 2019

By Matt Miner

Sometimes the past knocks on your door and reminds you to plan for your future.

The first story

Ben, our third child, was born during my second year of MBA studies at Duke University’s Fuqua School of Business. Ben first showed his face at the end of fall break. I returned to Fuqua on a Thursday, four days into the new Fall 2 term.

My leadership and management instructor, Joe LeBoeuf kicked off the class and then asked Team Fuqua to give me a round of applause as a new dad. He invited me to come up front. Joe presented me with an inscribed copy of Goodnight, Moon, congratulated me on the arrival of our third child, and encouraged me to read aloud to our children (which I still do, though they’re now 14, 12, and 11).

I could piece together the rest of my schedule that term from emails, or review my transcript. But I can’t name from memory any of my other instructors that fall; I can tell you about Joe LeBoeuf.

The second story

Lacey Langford is a Triad-based podcaster I know. She creates a weekly show called The Military Money Expert and has some terrific guests – I particularly recommend the interviews with Robert Frick and JD Roth.

As I scrolled through Lacey’s podcast feed, I got excited when I saw the interview with retired Brigadier General Maureen LeBoeuf. I knew Maureen was Joe LeBoeuf’s wife. I tuned in to the episode.

Maureen shares a bit of her story, but the most compelling part of the interview is when Lacey urges Maureen to talk about her leadership philosophy. This discussion held my attention because I am updating a family document (first crafted in 2015 and last updated in 2017) called the “Miner Family Vision, Values, and Goals.” It’s our family philosophy. Maureen tells Lacey:

[Your leadership philosophy] helps the people you are going to lead understand your point of view as a leader…it’s what they can expect from you. And it’s also an opportunity to let those you lead know what you’re going to expect of them.

The first thing is to think about your values…then you take those values and define them…People think, ‘I’ve got values.’ But they never sit down and do the deep dive into, ‘What are my values?’ and then the next step, ‘How do I define those values.’ And then when you share them…you need to live them, because people are going to see if you walk the talk.”

Maureen would not have achieved the same level of leadership and career success without carefully considering and then writing down her leadership philosophy. And while Maureen’s remarks are focused on leadership, the same thought process applies to your life and money.

What is real financial planning?

You need a point of view on your life – this is derived from your values. Then your values guide what you’re doing with the time, energy, talents, and money you have. If what you’re actually doing with your life differs from what you say you value, this is an opportunity to reflect whether your values are real values, or whether you should bring your efforts into greater alignment with what’s most important to you.

Ask yourself what you’d like your life to look and feel like in 1, 3, 5 or 10 years. That’s your vision.

Ask yourself what’s most important to you. These are your values. They shape how you use your time and money – and your use of time and money signal what you value.

Ask yourself what you need to have or do. These are your goals. Then, for each of your goals you create action steps that move you in the direction of the goal.

Ask yourself what you already have that you’re thankful for. This gets you in the right headspace to tackle a project like this.

And do it now. Completing this task before your new year begins is potent. You can always improve your document later. For any commitment of time or money you can ask whether it supports your vision of your life, whether it’s in harmony with your values, and whether it moves you closer or farther away from hitting your goals.

If this sounds overwhelming, it doesn’t have to be. Just a few sentences on each of these questions can be helpful in setting a course.

And this is the task we help clients accomplish, all day, every day.

The benefit of this exercise is in thinking it through and writing it down – not in accomplishing all your plans exactly as you imagined. That won’t happen. General Eisenhower said, “Plans are useless, but planning is indispensable.”

In Maureen’s context, her Army bosses provided powerful encouragement by requiring that she write down her leadership philosophy, share it with others, and hold herself accountable as part of her job.

In your context, working with an advisor, mentor, or coach can be a great way to write things down and build the momentum you need to hit the ground running and make real progress on your goals in 2020.

Additional Resources

Links to a three-part series on goal setting from my friend Joshua Sheats of Radical Personal Finance.

  1. Dream and Count the Cost of your Goals
  2. Goals: How and Why
  3. Goals: Count the Cost

Volatile equity markets, falling bond yields, and the coming recession: A letter to our clients

By Matt Miner

August 15, 2019

Dear Clients,

First, THANK YOU for your business with PLC Wealth Management! We are honored to serve as your advisors and to walk through life with you.

Second, we think today is a good day to talk with you about jumpy stock markets, falling bond yields, and our thoughts regarding the US economy. Our letter wraps up with actionable advice for you to implement immediately. Pretty exciting, right?

As I prepared to join my family for dinner last evening, I received a forwarded email. According to a tweet by advisor Michael Batnick, yesterday was the 307th time that the Dow fell 3% or more in a single day, over the course of the last 100 years. To see the folks on CNBC jumping up and down, wild eyed and foaming at the mouth, you could be forgiven for imagining that the entire US economy been vaporized.

Volatile Stock Markets

On average a downward move of the magnitude we experienced yesterday happens 3.07 times each year. Equity markets have been mostly placid over the last decade, and yesterday’s market decline was the first drop of that size in 2019. But if we simply achieve historically average volatility, we can expect two more moves of the same size before we celebrate New Year’s Day 2020! Said differently, drops of 3% come around slightly more than three times as often as Christmas.

For a different comparison, UNC and Duke always get invited to the NCAA Men’s Basketball Tournament. In each program’s history, UNC has played 160 NCAA tournament games and Duke has played 147 NCAA tournament games. Coincidentally, the Dow Jones Industrial Average has declined 3% or more in a single day in the last 100 years the same number of times as the two most storied programs in college basketball have played a game in the NCAA tournament: Many, many, times! Stock market volatility is table steaks. It’s why investors expect to earn a positive return for investing in stocks.

The Russell 3000, one of our preferred index comparisons, was down 2.89% yesterday and is down 4.85% for the month. No one likes that. But the same index is up 14.63% in 2019, 9.53% per year on a rolling five-year basis, and 13.20% per year on a rolling ten-year basis (ftserussell.com as of 8/14/2019 market close).

The stock market can be a rough ride, but it has reliably propelled investors’ wealth upward over time. The chart below shows the growth of one dollar from 1970 to 2017 invested in one-month T-Bills, the S&P 500 Index, and in a globally diversified stock portfolio, similar to PLC Wealth’s equity investment style.

Friends and neighbors, you only get hurt on a roller coaster if you jump off.

Falling Bond Yields

It is true that bond yields have fallen, meaning that money invested in the bond market today earns less interest than it did at this time last year. This has resulted in strong appreciation of bond funds (bond prices move in an inverse relationship to bond yields). For example, DFAPX, an investment-grade bond fund, has appreciated 7.81% in 2019, something I did not expect as we entered this year. On the other hand, falling rates mean that maturing bonds will be reinvested at lower interest rates than bonds that matured in the recent past. It also means that interest rates earned on assets like money market funds, certificates of deposit, annuities, and savings accounts have been reduced.

The Yield Curve

What about the ever-famous inverted yield curve? Once you finish this article you’ll be able to amaze your friends and confound your enemies because you’ll know the answers to questions like, “What is a yield curve?” and “What is an inverted yield curve?” and “What does a yield curve inversion mean?” and most meaningfully, “What should I do?”

First, a yield curve plots the returns investors expect on debt over different periods of time – for example one, five, ten, and thirty years. Investors normally demand to be paid more to loan their money for longer periods. You may have experienced this as a consumer: 30-year mortgage rates are higher than 15-year mortgage rates. This is because the longer the loan, the greater the investor’s exposure to the vagaries of inflation, the risk that the borrower fails to repay, and the risk that the money is locked up at a time the investor wants liquidity. In the graphic below, the August 2018 yield curve (the line with the gray diamonds) is the most “normal” looking, even though the rates are low by historic standards.

Second, an inverted yield curve like the blue line with dots, labeled “Current” in the graph above, means that investors demand 2% to loan to the US government for one year, but only ~1.65% to loan for ten years. How can this be? The inverted yield curve signals that bond investors expect poor economic performance resulting in low interest rates over that time period.

Third, an inverted yield curve has accurately predicted economic recession (two or more quarters of negative growth) or an economic slowdown (a reduction in the growth rate) with 100% accuracy going back to the Eisenhower administration. The predictive value of the inverted yield curve is particularly potent if the inversion lasts for more than one full quarter which is the case as I write you this letter.

Here’s the unvarnished truth: A recession is coming. A recession is always coming. What we don’t attempt to do is predict when the recession will arrive. The fact that a recession is coming is part of your plan. When you work with an advisory firm like PLC Wealth, your plan includes the expectation of recession. It’s kind of like knowing you’ll need to replace your car. You don’t know exactly when you’ll need a new car, but you’ll need one sometime. By planning with PLC Wealth, you have prepared for recession.

Cam Harvey, a terrific professor at my business school alma mater – Duke’s Fuqua School of Business – was quoted yesterday by WRAL saying, “Maybe this is not the right time to max out your credit card…Maybe it’s not the right time to take the vacation with your family that is going to overextend you.” Professor Harvey goes on to recommend you “[do] 100% effort at your job.”

At PLC Wealth we never recommend you max out your credit card. Instead, we recommend you negotiate discounts and pay cash!

We love vacations, but we don’t recommend you overextend yourself to take one. Go camping if that is what your budget supports!

Putting in 100% effort at work is timeless advice your dad gave you, too.

Call to Action

What should you do to prepare for the coming recession? For that matter, what should you do to prepare for the coming prosperity? The advice does not change. Do excellent work. Live on less than you make. Invest the difference wisely. Make a good tax plan. Bless your family with a thoughtful estate plan. Prepare for catastrophe with suitable insurance and emergency funds. Care for your health. Spend time with the people you love. Live according to your values. Be kind.

If you have questions about market volatility, bond yields, or the coming recession, give us a call. We are here to help with any topic where life meets money. Once again, thank you for your business with PLC Wealth Management.

Home is where the __________ is. 1.) Heart or 2.) Hassle?

June 17, 2019

Matt Miner

Over the weekend I received a thoughtful note from a client about renting versus owning.

Our client asked what we thought about the possibility of renting throughout one’s entire life, and taking the money that would be used for a large house down payment (in this case, a 100% down payment) and investing it as we recommend. I wanted to share my reply below:

 

Dear N_________,

It’s always great to hear from you!

First, there’s nothing wrong with renting for the rest of your life as long as this is part of your plan, and you do it eyes-wide open. Like anything, it is just a whole lot better if it’s intentional. This is how you’re approaching it, so well done!

In your mail you mention that owning a home means you have to pay taxes on it and maintain it for the rest of your life. This is true, but renting just means you pay someone else to do this for you.

You are correct that you could probably invest the money you’re putting into this house and get enough return to continue renting throughout your life. We can model this with some assumptions if you’d like.

Whether renting forever is scary just depends on your planning. We can share with you that according to Tom Stanley, (author of The Millionaire Next Door and other data-driven books about the wealthy), 95 – 97% of wealthy people choose to own their own home with these type of ratios:

1.) 10% – 25% of their net worth tied up in the house

2.) A mortgage balance between Zero-times and Three-times annual income (not more)

For a family earning $120,000 per year, with a net worth of $350,000 that WANTED to own, these could be reasonable numbers:

  • $360,000 purchase price
  • $72,000 down (< 25% of total net-worth tied up in the house)
  • $288,000 mortgage balance (< 3X annual income)
  • All-in monthly / annual payment of $2300 / $27,600

The family in this case should have enough money to build wealth. Even though the bank may be happy to approve their application (!) a $500,000 house is too expensive for this family. As our friend Tom Stanley says, asking the bank how much you should borrow is like asking a fox to count the chickens in your henhouse.  On the other hand, a $275,000 house will allow them to become wealthier faster, or to support other goals along the way, such as travel, children’s education, or giving.

For a family in retirement with a net worth of $1.7M, having a paid-for $360,000 house would be totally reasonable; this is less than 25% of their total net worth.  For this retired family, a $700,000 house is too much. The home will make it difficult for their other assets to support their lifestyle.

On the positive side, when you own a home, what you get is some protection from long-term inflation for part of your housing budget, and you get a portion of your portfolio returning a very predictable amount once you own it in cash: You save the principal and interest portion of your mortgage payment.

As you can see from the ratios above, we don’t recommend putting 100% or even 50% of your net worth into a house.  On the other hand, copying what wealthy people do in terms of habits and ratios is usually a good idea too!

Conceptually, when you rent, this is what you pay:

Rental Price

  1. Landlord’s Cost of Capital on the home itself
  2. PLUS Landlord’s Profit
  3. PLUS Landlord’s Real Estate Taxes & Insurance
  4. PLUS Landlord’s Maintenance and Repair Costs
  5. MINUS Tax Benefits that may accrue to the Landlord (deductibility of repair expense, interest expense & depreciation, possibly at a higher tax rate than your own)

When you own, this is what you pay:

Home Ownership Price

  1. Your cost of capital on the home itself
  2. PLUS Your Real Estate Taxes & Insurance
  3. PLUS Your Maintenance and Repair Costs
  4. MINUS Tax Benefits that may accrue to you (for middle-income tax payers, the TCJA has made this less likely given a much higher standard deduction)

Just looking at that formula lets you know that for an equivalent house, all else equal, by owning you will save the Landlord’s Profit component MINUS any tax benefits that may be greater for the Landlord than they are for you (you may or may not be able to deduct your interest and real estate taxes each year, and you cannot deduct repairs or depreciation as an owner-occupant).

Rather than reinvent the wheel with a bunch of calculations, please check out this excellent article, and then let me know if you want to go deeper on any of this. In a lot of ways, it all comes down to preference and then putting the right plan in place for you.

 https://affordanything.com/is-renting-better-than-buying-should-i-rent-or-buy/

We wish you all the best!

Matt

Fuqua Finance Forum – April 10th, 2019

Photos (left) Laurinda & Matt and (right) Ruben, Oriana, Matt, Laurinda, Monique, & Francisco

Matt Miner

April 10th, 2019

Whoa!  Sitting over here at WaDuke thinking about the excellent conversation we had together this morning. Such a delight to be with y’all, with Laurinda, and with Professor Dyreng.  Huge thanks to BLMBAO for this opportunity.

Thanks to all the folks who wanted to chat afterward.  I am honored that our time together was helpful to you.

Thanks to the several of you who asked about copies of the slides.  They are posted below for you to review, anytime.

Wishing you every success with life and money,

Matt Miner

2019.04.10 Matt Miner Slides

 

 

Some additional reference material below:

My website, Design Independence, with lots of content geared to MBAs

Recent interview on Radical Personal Finance podcast about my career transition to planning.

Interview on Masters of Money podcast

 

Blogs posts I referenced yesterday:

Renting versus owning – Afford Anything

The Shockingly Simple Math – Mr Money Mustache

 

Book recommendations:

Millionaire Next Door by Stanley is always top of the heap. The idea is that wealth is about habits.

Total Money Makeover by Ramsey is the best motivation book (“why”) and the best budgeting book

The Only Investment Guide You’ll Ever Need by Chris Tobias is terrific on both PF and investing topics

Personal Finance for Dummies by Tyson is comprehensive and accessible.

If you Can by Bernstein is a great DIY resource.

Your Money or your Life, by Dominguez and Robbins, is the frugality book.  Frugality: you can control your spending and achieve a high savings rate on any income.

The Automatic Millionaire by Bach

Richest Man in Babylon by Clason – seminal in this genre

The Wealthy Barber by Chilton – story based and easy PF content

Ring in the new year with…Financial Planning!

December 20th, 2018

By Matt Miner

Dear Clients and Friends,

At PLC Wealth we enjoy a good New Years party as much as anybody.  But we also know that the end of the year can be a chance to pause and reflect on how 2018 went, and what we aim to change in 2019.

We think it’s terrific to take some time to move from undefined “hope” to vision, and from vision to goals, and from goals to specific plans to make things happen in your life and your family.  As our friend Dave Ramsey says, “Goals are visions and dreams with work clothes on.”

If you’re ready to get a jump on 2019, here are a few financial best practices for the year ahead. Pick one or two of them to tackle.  Give us a call if you’d like to work together to translate these goals into specific plans you can achieve or begin to achieve in the coming year.

1. Do nothing

Seriously. If you have a well-built investment portfolio in place, guided by a relevant investment plan, your best move in hyperactive markets is to let that plan be your guide. That often means doing nothing new with your holdings except your planned, periodic rebalancing. We list investment inaction as a top priority, because “nothing” can be one of the hardest things to (not) do when the rest of the market is in perpetual motion!

2. Double down on your planning

In order to advance your SANF (“Sleep at Night Factor”) in volatile markets, you must have a relevant plan in place that you understand.  That plan guides your portfolio and your new investments. A fresh new year can be a great time to tend to your investment plan – or create one, if you’ve not yet done so. Have any of your personal goals changed, or will they soon? How might this impact your investment mix? Have market conditions put your portfolio ahead or behind schedule? Are you unsure where you stand to begin with? It’s time well-spent to periodically ensure your plan remains relevant to you and your personal circumstances.

3. Prepare for the unknown with a rainy-day fund

Time will tell whether 2019 markets are friendly, foul, or (if it’s a typical year) an unsettling mix of both. Having enough liquid, rainy-day reserves to tide you through any rough patches is a best practice no matter what lies ahead. Knowing your near-term spending needs are covered should help with both the practical and emotional challenges involved in leaving the rest of your portfolio fully invested as planned, even if the markets take a turn for the worse.

4. Redirect your energy to contributing financial factors

While you’re busy staying the course with your investments, you can redirect your attention to any number of related financial and advanced planning activities. While you don’t necessarily need to act on everything at once, it’s worth reviewing your financial landscape approximately annually, and identifying areas in need of attention. Maybe you’ve got a debt load you’d like to reduce, or an estate plan that’s no longer relevant. Perhaps it’s been too long since you’ve reviewed your insurance line-up, or you’d like to revisit your philanthropic goals in the context of the latest tax laws. Refreshing any or all of these items is likely to contribute more to your financial success than will fussing over the stock market’s daily gyrations.

5. Perform a cybersecurity audit

Protecting yourself against cybercriminals is another excellent use of your time. With the new year, revisit a a few basic, protective steps:

Enable two-factor authentication on important accounts

Change key passwords on your most sensitive login accounts

Review your credit reports (using AnnualCreditReport.com)

Place a freeze on your credit file, to block unauthorized access (now free, based on recently enacted federal law)

Especially with child identity theft on the rise, these actions apply to your entire household. Unfortunately, even minor children are now at heightened risk.

6. Have “that money talk” with your kids, your parents, or both

When is the last time you’ve held any conversations about your family wealth? It’s never too soon to begin preparing your minor children for a financially literate adulthood. As they mature, their financial independence rarely happens by accident, with additional in-depth conversations in order. Then, as you and your parents age, you and your kids must prepare to step in and assist if dementia, disability or death take their tolls. There also can be ongoing conversations related to any legacy you’d like to leave as a family. For all these considerations and more, an annual “money talk” can be critical to successful outcomes.  If you’d like help completing this task, PLC Wealth is ready to work with you to get it done.

7. Make 2019 a year you absolutely crush it in your work, business, or volunteer efforts

All of us are engaged in some kind of productive activity that puts us into contact with other people.  This may be our career, our own business, a non-profit organization we serve, or simply running our family’s household.

We all have things we’d like to be different in our daily situation.  As you conclude 2018, think back on items you would like to change in 2019.  Focus on what you can change or influence, not what you can’t, concentrating your efforts your “locus of control.”  For example, if you have a difficult boss or co-workers but you don’t want to change your actual employment, change how you respond emotionally to a difficult situation.  Use tactics like focusing on what you are grateful for in this context, getting more exercise, or having that difficult conversation with someone about why a situation has become problematic for you.

Many of us have room to be more organized and focused on the vital few that really matter.  Make a plan for how to tune out the noise and get the right things done.

Two great resources here are Stephen Covey’s Seven Habits of Highly Effective People, and David Allen’s Getting Things Done.  If you don’t love reading, try an Audible audio book while you exercise or commute.

So, there you have it: seven creative ways to bolster your financial well-being while the stock market does whatever it will in the year ahead. While this list is by no means exhaustive, we hope you’ll find it an approachable number to take on … with two critical caveats.

First, we’ve got a bonus “financial best practice” to add to the list:

Above all else, remember what your money is for.  Money is meant to fund your moments of meaning.  At PLC Wealth, we want our clients to live rich, not die rich.

Second, we recognize that each of these “easy” best practices aren’t always so easy to implement. We could readily write pages and pages on how to tackle each one.

But instead of writing about them, we’d love to help you take action on these steps.  At PLC Wealth, we work with families every day and over the years to convert their dreams into plans, and their plans into achievements. We work in the context of single-issue planning engagements, comprehensive financial planning, and investment management.  We hope you’ll be in touch in the new year, so we can partner with you.

Merry Christmas & Happy New Year to you and your family from the team at PLC Wealth – Josh, Mike, Sandra, & Matt