Elevation Financial

How to Invest When the News is Making You Nervous ?????? If current events have you feeling uneasy about your investments, you’re not alone. Between market volatility, economic uncertainty, and global crises, it’s easy to feel like pulling back or making drastic moves. But here’s the thing—investing isn’t about reacting to the headlines. It’s about sticking to a strategy that works over the long term. Here’s how to stay steady when the world feels uncertain: 1. Remember Your Time Horizon ? If you’re investing for a goal that’s 10, 20, or 30 years away (like retirement), short-term events shouldn’t dictate your decisions. The market has always faced challenges—wars, recessions, political instability—but over time, it has historically trended upward. 2. Avoid Emotional Decision-Making ??♂? Fear and panic can lead to costly mistakes. Selling when the market drops often locks in losses, and trying to time the market usually backfires. Instead, focus on your long-term plan and resist the urge to make impulsive changes. 3. Stay Diversified ?? A well-diversified portfolio helps smooth out the bumps. If one area of the market is struggling, another may be holding strong. Having a mix of stocks, bonds, and other assets can help protect you from the extremes. 4. Keep Investing Consistently ?? One of the best ways to build wealth over time is through dollar-cost averaging—investing a fixed amount on a regular basis, no matter what the market is doing. This helps you buy more shares when prices are low and fewer when prices are high, reducing the impact of volatility. 5. Focus on What You Can Control ?? You can’t control interest rates, inflation, or geopolitical events, but you can control how much you save, how you allocate your investments, and how you respond to market movements. Put your energy into the factors that actually impact your financial success. 6. Revisit (But Don’t Overreact to) Your Plan ?? If the news is making you question your strategy, take a step back and review your financial goals. If nothing has changed in your life, your investment approach likely doesn’t need to change either. But if your risk tolerance or timeline has shifted, a small adjustment might be in order. The Market Rewards Patience ?? The biggest mistake most investors make is letting fear push them into bad decisions. Market dips are normal. So are recoveries. The key is to stay invested, stay diversified, and stay focused on the big picture. If you need reassurance, talk to a financial professional who can help keep you on track. But whatever you do, don’t let short-term fear derail your long-term future.

There are a few money ratios that can help you assess your financial wellness. These ratios can give you clarity on what you might want to improve and how to make financial decisions. Here they are ???? ?? LIQUID TERM This is your cash runway. It's how much cash in the bank you have to live on and how long it will last. To get it, divide your total cash in the bank by your annual spending. So if you have $25,000 in the bank and you spend $5,000/month, your Liquid Term is $25,000 / (12*$5,000) = 0.47. This means can live on your cash reserves for about 47% of a year, or almost 6 months. A higher Liquid Term means more security and lower risk. A comfortable Liquid Term should be one of your top priorities before anything else. Shoot for at least 0.5 or higher to be in a healthy zone. ?? SAVINGS RATE This is the rate at which you save and invest as compared to your income. if you make $100,000/year and you invest $500/month into a Roth IRA, your savings rate is $6,000 / $100,000 = 6%. A minimum goal for savings rate should be at least 10%. A "healthy" savings rate is closer to 20%. ?? DEBT RATE This is how much you pay in monthly debt payments as compared to your income. If you make $100,000/year and you have a total of $2,500/month in debt payments, your debt rate is ($2,500*12) / $100,000 = 30%. If your debt rate starts to get over 25%, it can cause cash flow issues, increased risk, and hurt your ability to get ahead. You want to keep your Debt Rate low. There are more ratios that are important but if you pay attention to these 3 and keep them within healthy ranges, you will avoid lots of potential financial stress.

401(k) Myths That Could Cost You Big in Retirement ?? The 401(k) gets a bad rap sometimes. There’s a lot of noise out there from people claiming it’s a scam, that it’s inferior to other investments, or that you’ll be taxed into oblivion when you retire. But the truth? The 401(k) is one of the best wealth-building tools available—if you use it right. Let’s bust some of the biggest 401(k) myths once and for all. ?? Myth #1: "401(k)s Are Bad Because You’re Taxed Heavily in Retirement" A common argument is that tax-deferred growth in a 401(k) isn't worth it because you'll pay taxes on withdrawals in retirement. But here's what people miss: ? Many retirees find themselves in a lower tax bracket when they stop working. That means their effective tax rate on withdrawals is often lower than when they were earning a salary. ? You can also use tax diversification by contributing to a Roth 401(k) if your plan offers it, allowing for tax-free withdrawals in retirement. Myth #2: "The Market Is Too Risky—You Could Lose It All" Yes, markets go up and down. But over the long term, the stock market has consistently grown. Historically, the S&P 500 has averaged around 8% to 10% annual returns over decades. ?? A well-diversified 401(k) allows your money to grow with time, compounding tax-free until withdrawal. ?? The biggest risk? Not investing at all and letting inflation eat away at your cash. Myth #3: "Fees Are Too High, So It’s Not Worth It" Some 401(k) plans do have high fees, but: ?? Many plans now offer low-cost index funds with expense ratios under 0.10%. ?? Even if fees are slightly higher, the benefits of tax-deferred growth and employer matching often outweigh the cost. ?? Employer matches are free money. If your company offers a 100% match up to 5% of your salary, that’s an immediate 100% return on that portion of your money. Myth #4: "You Can Get Better Returns Elsewhere" Could you outperform a 401(k) by picking individual stocks or real estate? Maybe. But: ?? The average investor underperforms the market because they react emotionally to short-term swings. ?? Index funds inside a 401(k) provide broad market exposure, balancing risk and reward. ?? Plus, no other investment comes with an employer match—that’s an instant ROI you can’t beat. Myth #5: "I Can Just Rely on Social Security" Social Security was never designed to be your only retirement income. The average Social Security benefit in 2024 is about $1,900/month—for most people, that’s not enough. ?? Your 401(k) bridges the gap, ensuring you have more control over your retirement income. A 401(k) isn’t perfect, but it’s a powerful retirement tool. It offers tax benefits, employer contributions, and long-term market growth—all things that make it one of the best ways to build wealth for retirement. If you have access to one, don’t let myths keep you from using it. Your future self will thank you. ??

If you have a service you can provide that is a simple, normal thing that people will pay for, you should be able to launch a business and start getting paid in less than a week. Don't let over-thinking slow you down. Also, this guide can help:

Reasonable compensation is one of the most misunderstood and debated topics for S-Corporation (S-Corp) owners. Despite its importance, misconceptions continue to circulate, often leading to IRS challenges or costly mistakes. Let’s break down what reasonable compensation is, why it matters, and bust some of the most common myths.

It's so tempting to try to plan everything out to the last penny. We wrap ourselves up in a security blanket of spreadsheets and pretend we can predict the future. But even the best plans are always wrong when we actually get there. The best we can do is to be less wrong over time. Embrace the wrongness!

Investing in mutual funds and exchange-traded funds (ETFs) can be a great way to diversify your portfolio, but understanding fund reports is essential to making informed decisions. Fund reports contain a wealth of information about a fund’s performance, strategy, and costs, but they can be overwhelming if you're not familiar with the terminology.

Your beneficiary designations on financial accounts (like IRAs, 401(k)s, and investment accounts) are often more important than your will. These bypass probate and override a will. Make sure your beneficiary designations are correct!

Does your tax pro only give you a paper copy of your tax return? Ask them to provide you with a PDF every time. And store it securely. Makes life so much easier when you need to reference it or share it with lenders, financial advisor, etc.

A lot of people think real estate investing is a great way to make easy money or “passive“ income. In reality, it’s not as easy as people think. There are TONS of shows, courses, books, and influencers telling people that real estate investing is a magical way to make money. More often than not, I’ve seen it go badly and end in regret. I’m certainly not against real estate, but in my opinion, there are two good reasons to do it: ?? You really like the business of managing properties. ?? You want to diversify. Investing in real estate because you think it’s easy money or passive income is not the right reason.