Well Balanced

WB001: Meaning & purpose beyond financial security - PUSH with Joe Grochowski.

Finding meaning and purpose beyond financial security becomes principal, especially as one transitions into retirement. In this podcast, Vector's Scott and Ezra talk with senior wealth advisor Joe Grochowski to explore how retirees have harnessed their newfound freedom and resources to lead fulfilling lives.

The acronym PUSH stands for Purpose, Use Time, Socialize, and Health.

Purpose is fundamental, acting as the driving force behind daily activities. For instance, one of our clients found renewed vigor by taking a part-time job, not for the income but for the structure and social interaction it provided. This pivot highlights the necessity of having clear goals and activities that infuse life with meaning and joy.

Using Time is about balancing relaxation with active involvement. Our clients often enrich their lives by engaging in events and activities that also allow them to help others, fostering a sense of achievement and fulfillment. This approach enhances personal well-being and strengthens bonds with friends and family.

Socialization plays a critical role in a healthy retirement lifestyle. Our discussions reveal that social connections are crucial, whether with family, friends, or community groups. These relationships often hold the retirement experience together, providing emotional support and preventing isolation.

Health is the cornerstone that supports all other aspects of a fulfilling retirement. Active lifestyles, whether through walking, yoga, or more intense activities like pickleball, are common among our clients. Maintaining physical Health ensures that retirees enjoy their activities and social engagements without undue constraints.

At Vector, we believe a successful retirement strategy should encompass more than financial stability; it must also consider how one will use their time, who they will spend it with, and how they will maintain their health. Retirement, transitioning from structured routines to what is often referred to as 'free time,' presents a complex yet rewarding journey. We strive to guide our clients towards a retirement that is as rich in purpose as it is in sound financial decisions.

 

Time and Topics

00:02 … Exploring Retirement Visions

02:03 … Importance of Purpose in Retirement

04:07 … Transitioning to Free Time

06:03 … Financial Planning and Lifestyle Goals

08:05 … The Role of Socialization in Retirement

10:19 … Volunteering and Community Engagement

12:29 … Health and Activity in Retirement

14:22 … Regulatory

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vectorwealth.com/regulatory

V24106115

FYR006: Social Engineering with Sharon Calhoun and Suzy Klapperich

In our latest podcast episode, Sharon Calhoun, managing director at Vector Wealth Management, and Suzy Klapperich, chief compliance officer, discuss the pressing issue of social engineering and cybercrime. Their discussion sheds light on the manipulative tactics that scammers use and provides valuable insights on how to safeguard your personal information.

Key Highlights from the Discussion:

• Rising Threat: We’re seeing an alarming rise in fraud cases, with statistics showing hundreds of millions affected by data breaches and nearly a million complaints reported to the FBI's Internet Crime Complaint Center in 2023 alone.
• Understanding Social Engineering: Social engineering involves manipulative tactics by scammers to steal sensitive data. These criminals exploit human psychology, targeting stressed or distracted individuals to trick them into compromising their security.
• Common Emotional Triggers: Scammers often create a sense of urgency, trust, fear, desperation, curiosity, or sympathy to manipulate their targets. Each emotion is leveraged to push the victim into making hasty decisions.
• Real-Life Examples: Sharon shares personal anecdotes about suspicious emails that mimicked legitimate communications from known brands like Delta and Xfinity, emphasizing how realistic and convincing these fraudulent attempts can appear.
• Preventive Measures: Suzy stresses the importance of skepticism and caution, especially when dealing with unexpected phone calls or emails. She advises against relying on caller ID or email reply addresses, as scammers can falsify these to appear legitimate.

Three Practical Takeaways

1. Stay Informed: Always verify any unusual or unexpected requests by contacting the company using known and trusted contact information.
2. Guard Your Data: Limit the personal information you share online. More information available to the public means more ammunition for fraudsters.
3. Use Direct Access: Bookmark, use the company's mobile app, or directly type in the URLs of important sites like banking or investment portals to avoid deceptive ads or spoofed websites.

Connect with Us:

Don't hesitate to reach out if you encounter any suspicious activity or need advice on protecting your financial information. Our team at Vector Wealth Management is here to assist you in securing your assets and peace of mind.

 

Time and Chapters

00:25 ... Introduction to Social Engineering

03:00 ... Emotional Manipulation Tactics Unveiled

11:09 ... Real-life Examples of Fraud Attempts

15:44 ... Preventive Measures Against Fraud

18:32 ... How to Identify and Avoid Scams

22:00 ... Closing Thoughts and Regulatory

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vectorwealth.com/regulatory
V24106114

MP004: Market Update with Jason Ranallo

Did you know that over half of the global voting populace will have the chance to vote in what’s been dubbed the biggest election year in history.

In this Market Perspective podcast, Vector’s Jason and Ezra discuss the S&P 500’s recent highs, economic trends, and the implications of geo-political events on the markets. We get into persistent inflation rates, noting a shift from anticipated declines to a slight acceleration, potentially altering the timeline for expected Federal Reserve interest rate cuts.

The labor market's resilience continues to be a pivotal force in economic momentum, despite the challenges posed by inflation and higher interest rates, the U.S. economy has added jobs for 39 consecutive months. BLS data shows the unemployment rate was below 4% for 26 months in a row, the longest streak since the late 1960s.

In the episode we also touch on the significance of market breadth, which has recently widened, signaling a healthier participation across a spectrum of companies. If market gains are led by only a handful of companies, then the fragility of the stock market may be greater.

The VIX, not to be confused with Vic’s Bar & Grill in downtown Victoria, is an index that measures market volatility, has been on the rise recently. A higher VIX number coincides with larger or more frequent swings in the stock market. We talk about the volatility index as a tool to inform investors about the current state of unrest or stability in the market.

As we reflect on this historic year of elections, it’s evident that the choices we make can reverberate through the markets and beyond. With each episode, we're committed to providing clarity amidst complexity and fostering resilience in your financial life.

Listen to this podcast and others on Apple Podcasts and Spotify. Charts and video available on our blog.

Times & Titles

00:00 ... The Global Election Year: Navigating Political Winds

02:10 ... Market Highs and Economic Signals: Q1 2024 Snapshot

04:51 ... Interest Rate Trajectories and Inflationary Trends

07:14 ... Shelter Costs and Auto Insurance: The Inflation Impact

10:55 ... Consumer Spending and the Power of the Job Market

13:46 ... Political Outcomes and Market Implications

17:45 ... VIX and Market Volatility: Reading the Pendulum Swing

21:33 ... Understanding Market Breadth and Top Company Influence

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vectorwealth.com/regulatory

V24107116

FYR005: The 10 Best Days with David Moser

In this latest podcast episode, David Moser, wealth advisor at Vector Wealth, discusses the implications of missing just the ten best days in the market over 20 years. We look at a recent 20-year period of the S&P 500 stock index and find that its performance was halved from 9.8% annualized to just 5.6% when missing those precious 10 days.

Put another way, an initial investment of $10,000 in the S&P 500, left untouched for 20 years, would have grown to around $65,000. Being out of the market on those ten big-upward-move days would result in the investment being worth just $30,000. *

This episode serves as a reminder of the timeless adage in investing: it's about time in the market, not timing the market. We emphasize the importance of having a plan and sticking to it during periods of heightened uncertainty. Also avoiding the temptation to make emotionally charged decisions.

David points out that many of the best market days are clustered in time near the worst ones, making it nearly impossible to predict the optimal times to enter and exit the market. He advocates for a disciplined, patient approach, focusing on long-term growth rather than chasing short-term fluctuations.

Charts and video available on our blog.

 

Time & Section Titles

00:05 – Introductions with David Moser

00:52 - The Impact of Staying Invested in the Market

01:39 - Navigating Market Turbulence Over Two Decades

02:21 - The Cost of Missing the Market’s Best Days

03:54 - The Challenges and Realities of Market Timing

05:01 - The Fundamentals of Successful Long-Term Investing

07:11 - Summary: The Importance of Discipline and Planning in Investing

 

* The historical performance calculations are discussed for illustrative purposes only. Any calculations discussed are gross of fees and reflect the reinvestment of all dividends. If fees were included, returns would be lower. Past performance is not indicative of future returns. An individual cannot invest directly in an index.

vectorwealth.com/regulatory
Media ID: V24081108

FYR004: Charlie Gruys: What if I don’t have enough to retire?

In our latest podcast, Vector wealth advisor, Charlie Gruys delves into the role of scenario planning to align one’s investment policy with their life needs and goals. The conversation explores how engaging with different financial scenarios may help clarify the path towards a more confident financial future. By carefully modeling various financial decisions, such as the purchase of new vehicles, paying off a mortgage, or planning a significant vacation, individuals can assess the impact of today’s decisions on their long-term financial well-being. 

The conversation also touches on different financial levers that individuals may use, such as: 

• Adjusting the timing of social security or portfolio distributions,  
• Contributing time rather than investable assets to charitable organizations, 
• Reducing lifestyle expenses to allow investments to have more time in the market to grow. 

Charlie emphasizes what he sees as the need for a strategic approach to financial planning, one that accommodates the inevitable ebbs and flows of the market, while staying aligned with personal financial objectives. 

These discussions aim to spark dialogue about enhancing retirement readiness and making more informed financial decisions. At Vector, we delve into the nuances of scenario planning, offer insights and guidance tailored to each client's unique circumstances. If you or someone you know is pondering their financial future or seeking clarity on their retirement plan, we're here to help.  

Time and Section Titles (Video/Podcast) 

01:24 ... The ‘If You Haven't Saved Enough’ Feeling 

02:00 ... Adapting to Market Volatility 

03:11 ... Enhancing Retirement Savings 

05:18 ... Strategic Gifting and Financial Planning 

06:23 ... Volunteering vs Charitable Contributions 

07:18 ... Bucket-Based Investment Strategy 

08:02 ... Consideration of Social Security and Pensions 

10:45 ... Navigating Big Financial Decisions 

12:07 ... Buying a Vehicle?  

13:32 ... Evaluating Mortgage Impact on Retirement Plans 

14:07 ... Is it Feasible? 

15:20 … We’re Running Financial Scenarios in Our Minds All-The-Time 

 

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vectorwealth.com/regulatory

V24044098

FYR003: Understanding Annuities with Mike Nesheim

Are annuities a boon or a bane for your portfolio? When is it wise to hold onto an annuity, and when might it be time to let go?

In this podcast episode, we talk through annuities with Vector senior wealth advisor Mike Nesheim. An annuity is a financial product issued by an insurance company, generally designed to create an income stream. Periodically, clients come to Vector with one or more annuities as part of their overall portfolio.

While everyone’s portfolio and financial situation is unique, there are some broad takeaways when it comes to annuities and wealth management. We discuss evaluation of annuities and talk through factors to consider when aligning your financial plan with your goals.

 

Time & Section Titles

00:04 … Types of Annuities

Annuities come in assorted flavors. We discuss some differences.

00:38 … Evaluation of Annuities and Benefits

Considerations of maintaining vs surrendering annuities.

01:20 … Analyzing Annuities for Clients

Determining the best course of action for a client.

02:30 … Reliability of Annuity Companies

What backs the guarantees of annuity benefits?

These topics are meant to help start a conversation around planning for retirement and managing wealth over time. At Vector, our team will review the terms of annuities (held or considering) and provide options and context for clients. Let us know if this is something you are thinking about or if you know someone who may have a question about their annuity.

Video at vectorwealth.com

vectorwealth.com/regulatory

V23347079

MP003: Powell and Buffett: In the News

In this week’s episode of our Market Perspective podcast, we dive into recent financial news and its implications on the economy.

We kick off the discussion with Federal Reserve Chairman Jerome Powell's recent comments on potential interest rates adjustments. Powell said, “When we do get that confidence, and we’re not far from it, it’ll be appropriate to begin to dial back the level of restriction.” Jason and Ezra discuss what this means for inflation and the overall market.

The spotlight then turns to Warren Buffett and his enterprise, Berkshire Hathaway, particularly focusing on the substantially high cash reserve of $167 billion reported in a recent shareholder letter. The dialogue explores Buffett's possible strategy of waiting for more opportunistic investments. We also draw analogies between Buffett's methods and the bucket-based investment strategies used by Vector. Our episode continues with a discussion on the importance of having bonds and cash-like assets for upcoming needs.

It's about being prepared and flexible.

 

Times & Chapters

00:46 - Market Perspective Introduction

01:16 - Powell's Remarks on Interest Rates

04:45 - Strong Job Market and Economic Tailwinds

05:06 - Soft Landing and Fed Speak

06:26 - Berkshire Hathaway's Cash Reserves

09:03 - Managing Investments for Rough Market Periods

11:37 - Rebalancing During Opportune Times

13:49 - Trade-Offs Between Cash and Investments

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vectorwealth.com/regulatory

V24068105

FYR002: Choosing a Senior Living Community

Sharon Calhoun, managing director at Vector, is joined by senior housing counselors Liz Rue and Lisa Woltrang from Folkestone, a senior living community in Wayzata. In this conversation, they emphasize the necessity of discussing transitions during times of calm rather than crisis, allowing for thoughtful decision-making.

According to the Administration for Community Living, 70% of adults over 65 will require long-term care at some point, with an average stay of 3.2 years in a senior living community. Liz and Lisa highlight that senior living isn't just about nursing home stays but encompasses a range of options for active, maintenance-free lifestyles. They emphasize starting the process early, exploring various communities to find the best fit, and preparing for potential future needs.

The discussion addresses the financial aspect, noting that senior living costs can range from $4,000 to $13,000 per month, depending on the level of care and services required. When thinking about a senior living community, Liz and Lisa suggest starting with what's important to the individual, such as proximity to family or community amenities, and then seeking guidance from housing counselors. The importance of experiencing different communities firsthand is underscored, as is the practicality of being on a waitlist without immediate financial obligation.

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Start Time ... Topic Title

00:09 ... Choosing a senior living community

00:40 ... Folkestone‘s Liz Rue and Lisa Wotrang

01:08 ... Who will require long term care

03:09 ... When to consider a senior community

04:21 ... Control over that part of your life

05:42 ... Full continuum of care

07:05 ... Where to Start

09:16 ... Feeling Well & Vibrant

10:47 ... Staffed 24 Hours a Day

11:49 ... Wait List

14:12 ... Start here, Move there

16:13 ... Financial Considerations

19:23 ... Contracts. When to get family involved.

21:40 ... Seriously, Start Early

23:51 ... About Presbyterian Homes

25:48 ... Additional Resources

27:20 ... Regulatory

 

About Liz and Lisa

Liz Rue and Lisa Wotrang are housing counselors for Folkestone, a senior living community in Wayzata which is part of Presbyterian Homes and Services. They assist those who are looking for senior living opportunities by offering education and resources to ensure the community aligns with the senior and their family’s needs and vision. They also support prospective residents and representatives through decision making process for the higher levels of care such as assisted living and memory care. Learn more by visiting the Presbyterian Homes website www.preshomes.org. Note: Vector Wealth is not affiliated with Presbyterian Homes.

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