tradeoffs

Aiming for Progress, Not Perfection 

What is your favorite part about the Olympics? Is it a specific event that always catches your eye, a striking outfit?

For us, it’s hard not to be blown away by the perfection among so many of those athletes.

Watching the events, we may forget how much time and effort these athletes put into their trades. We only see the polished, precise versions of the routines, or the absolute fastest times or highest heights!

We aren’t there to watch them struggle on their way to perfection. We don’t see how many hours the athletes trained, the things they had to sacrifice. Sometimes it’s good to remind ourselves that we aren’t going to get it right the first time. We are going to fall; it’s just a part of life.

The thing that sets us apart, though? What we do after we fail.

Olympic athletes don’t throw in the towel if they have a couple bad days at practice… and we shouldn’t either. We get back out there and try again!

Maybe some of us are not happy with the amount of money we have saved so far for retirement. Instead of giving up on the idea of saving all together, we can formulate a new plan. We can analyze the budget, start reallocating cash, take advantage of IRA contributions. We can take the time to invest in ourselves and our futures.

Maybe some of us have little ones at home and are starting to think about saving for their college education. We don’t have to save as much as we can, as fast as we can. There are investment options to help you contribute at your own pace, while putting the money to work to take advantage of that potential growth.

While the Olympics is a competition, saving for retirement or a life-changing event is not. We are all on different journeys, with different resources, at different points in our lives. There is not one perfect plan for all investors.

One thing we can learn from the Olympic athletes is their power of flexibility. (While of course they are physically flexible, we are talking about their mental flexibility.) If their practice routine isn’t working for them any longer, they will change it. We can do the same thing with our financial plan!

Setbacks in life are part of the journey. If we gave up when the going gets tough, we wouldn’t get to enjoy the fruits of our labor. We won’t sell out when the market is low, just like we won’t sell ourselves short when we don’t stick the performance every time.

We keep our eyes on the prize and keep moving forward.

If you are going through something right now and you didn’t get it right the first time, that’s okay. You can always try again next time. We aim for progress, not perfection. Progress—that’s how we truly go for the gold.

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Play the audio version of this post below:

Aiming for Progress, Not Perfection – 228Main.com Presents: The Best of Leibman Financial Services

This text is available at https://228Main.com/.

Looking for Setups in the Setbacks

Time travel is a powerful way to reframe the present. The here and now will always bring its unique challenges and setbacks, but what will this moment mean to you down the road, looking back?

If you’re prone to stay mired in the moment, here’s a game of “I spy” for you: where are the setups among all these setbacks?

You’ve heard it from us before. There’s day-night, day-night. There’s up-down, up-down. Well here’s one for any challenging time: setback and setup.

Challenging times bring tradeoffs, big and small. In some moments, there is less time for work… but more time with the kids. Or less time with the gym buddies… but more time out in the sunshine. Tradeoffs.

In terms of business, our classic principles still apply during challenging times. We seek bargains. Economic activity is always shifting: some areas will slam on the brakes as demand falls off; some areas will be buzzing in a scramble to keep up with demand.

Just like the setbacks in our individual lives, the business setbacks exist alongside potential setups. Part of our job is to take a good look around to try to spot them. No guarantees, but we’re always wondering what future growth is being watered by the current storm.

We don’t ignore a storm. This approach, however, helps remind us of the bigger picture. It’s a more complete way to tell the story of a setback.

Clients, if you would like to talk about this or anything else, please email us or call.

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Play the audio version of this post below:

Setbacks and Setups – 228Main.com Presents: The Best of Leibman Financial Services

This text can be found at ⁠https://www.228Main.com/⁠.

The Treasure in the Churn

Back in the snowbird chapter of Mark’s life, he learned that looking for shells was always more fruitful when the weather had been rough. The markets get stormy sometimes. What might come out of the churn? Some perspective for any weather, in this message from Mark.

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Are They SMART Goals in a Dumb Pond?
photo shows a ripple growing in a blue pond with green trees in the background

by Caitie Leibman, Director of Communications

Use SMART goals.

Be smart about it.

Work smarter, not harder.

You’ve probably heard this advice at a juncture in life; maybe you’ve even said it to someone else. Goals don’t get us very far unless they are explicit, meaningful, and can be tracked. Without them, aren’t they just dreams? “Hope is not a plan,” I’ve heard it said.

None of this is meant to be cynical, but I’m thinking about an important distinction: having “smart” goals won’t matter if they’re pointed in a “dumb” direction. So let’s get out of that framework. Smart and dumb are relative anyway (not to mention judgmental!).

The fit of a goal matters. For those of us youngest children who ever wore hand-me-downs, you know that even the stuff in the best shape isn’t quite right if it wasn’t picked for you. Alignment of a goal matters too: the thing better fit into the big picture. Does achieving a big purchase now help me live the life I want, without side-tracking my long-term goals? Just an example.

And your goals stay yours. Then it’s part of our job to make sure our strategies stay aimed at those goals.

We, too, strive for good fit. We don’t splash around in “opportunities” that don’t align with our principles. We seek bargains, we focus on owning the orchard for the fruit crop, we avoid stampedes. If it’s not in alignment, it could be a distraction or a tangent.

Jane Fonda once put it nicely: “If I want to make ripples, I better be sure I’m throwing my pebbles into the right pond.”

“Right” is relative to your life, your vision. We’re just happy to be part of the effort. You decide when it’s time to check in on your goals and direction.

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Play the audio version of this post below:

SMART Goals in a Dumb Pond? – 228Main.com Presents: The Best of Leibman Financial Services

This text is available at https://www.228Main.com/.

What Rough Seas Wash Up

Back in the snowbird chapter of my life, we learned that looking for shells was always more fruitful when the weather had been rough. The world situation and our markets have been nothing if not stormy this year! What has come out of the churn so far?

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SMART Goals in a Dumb Pond?
photo shows a ripple growing in a blue pond with green trees in the background

Use SMART goals.

Be smart about it.

Work smarter, not harder.

You’ve probably heard this advice at a juncture in life; maybe you’ve even said it to someone else. Goals don’t get us very far unless they are explicit, meaningful, and can be tracked. Without them, aren’t they just dreams? “Hope is not a plan,” I’ve heard it said.

None of this is meant to be cynical, but I’m thinking about an important distinction: having “smart” goals won’t matter if they’re pointed in a “dumb” direction. So let’s get out of that framework. Smart and dumb are relative anyway (not to mention judgmental!).

The fit of a goal matters. For those of us youngest children who ever wore hand-me-downs, you know that even the stuff in the best shape isn’t quite right if it wasn’t picked for you. Alignment of a goal matters too: the thing better fit into the big picture. Does achieving a big purchase now help me live the life I want, without side-tracking my long-term goals? Just an example.

And your goals stay yours. Then it’s part of our job to make sure our strategies stay aimed at those goals.

We, too, strive for good fit. We don’t splash around in “opportunities” that don’t align with our principles. We seek bargains, we focus on owning the orchard for the fruit crop, we avoid stampedes. If it’s not in alignment, it could be a distraction or a tangent.

Jane Fonda once put it nicely: “If I want to make ripples, I better be sure I’m throwing my pebbles into the right pond.”

“Right” is relative to your life, your vision. We’re just happy to be part of the effort. Time to check in on your goals and their direction? Call or email, anytime.

Want content like this in your inbox each week? Leave your email here.

Play the audio version of this post below:

SMART Goals in a Dumb Pond? – 228Main.com Presents: The Best of Leibman Financial Services

This text is available at https://www.228Main.com/.

The Swiss Army Knife of Finance
photo shows a Swiss Army knife

Some people consider the Roth IRA the “Swiss Army knife of finance.” A versatile tool, a Roth is useful in a lot of different circumstances. It might make sense to run through a review before year-end: your 2020 income tax situation may have an impact on your thinking. 

Here are just a few uses of the Roth IRA to consider:

1. They can help you manage your lifetime total taxes. 

You may be able to take advantage of relatively lower tax brackets now before income tax rates go up, as they are scheduled to after 2025 or in the case that future legislation raises tax rates. Converting existing retirement balances to Roth makes the amount converted taxable now—but wipes out taxes on future gains. 

Moving temporarily depressed holdings from traditional IRAs to Roth involves paying tax only on the lower current value. Any recovery ends up being free of tax. (Airlines are an example of depressed stocks that may recover. No guarantees of course.)

2. They can add flexibility to your retirement planning.  

Unlike traditional IRA balances, Roth IRAs do not have required minimum distributions (or RMDs). And they are a useful place to go for large retirement outlays without making a bulge in your tax bill. Planning to buy a second home, boat, or camper in retirement? Roth money might come in handy then.

3. They can make great gifts. 

Roth IRAs can be wonderful for children or grandchildren with earned income who qualify to make Roth deposits because they have earnings but lack the funds with which to make deposits. Growth over the decades ahead may never be taxed.

4. They can help fund an education. 

Parents seeking versatile education funding for their children may use their own Roth IRAs as a source of funds for that purpose. If not needed, the money may remain in the Roth and ultimately help fund their own retirement. 

Right for you? 

Again, the Roth is a versatile tool! What from the list is jumping out to you? 

We understand that the end of the year can be a busy time. We would love to help you sort out these issues—just email us or call if they are pertinent to you. 

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What Are We Going To Do With All This Future?

© Can Stock Photo / rbouwman

It is tempting to think of the future as a place of endless possibilities, fulfilled dreams, unleashed potential. “What are we going to do with all this future?” is the work of Spanish artist Coco Capitan, in collaboration with the Gucci fashion brand. It seems to capture that spirit of possibility.

Our work together with you is about the future. But when you get down to it, saying yes to one goal might mean saying no to others. We cannot do everything.

Resources are finite. As we think about retirement destinations or second home locations, choosing a Rocky Mountain high might mean that finding your beach is out of the question. Relocating may mean less time with family. Retiring at a younger age could mean getting by with less money.

This is why we invest so much time in striving to understand and clarify your priorities.

Of course, creative thinking may let us meet apparently contradictory goals by making thoughtful adjustments. A more modest home in one location may free up money to travel other places, or even have a second home. (This is the strategy I employ to live in Floribraska, Florida and Nebraska.)

Clients have chosen to retire and work at the same time by making the retirement-age job a part-time or seasonal or flexible hours arrangement in a field they enjoy.

Some couples choose to spend weeks each year pursuing different interests. Golf in the sunshine is hard to reconcile with watching grandchildren play winter sports up north.

So your own answer to ‘what we are going to do with all this future’ may take a lot of thought to get your priorities defined. Some creativity or adjustments may be needed to make the most of it. This really is the first step in long term planning.

Clients, if you would like to talk about this or anything else, please email us or call.

Setbacks and Setups

© Can Stock Photo / yellowcrest

Time travel is a powerful way to reframe the present. Our collective present is full of challenges and setbacks, but what will this moment mean to you down the road, looking back?

If you’re prone to stay mired in the moment, here’s a game of “I spy” for you: where are the setups among all these setbacks?

You’ve heard it from us before. There’s day-night, day-night. There’s up-down, up-down. Well here’s one for these challenging times: setback and setup.

Some of our acquaintances are facing tradeoffs big and small right now. Less time for work… but more time with the kids. Less time with the gym buddies… but more time out in the sunshine.

In terms of business, our classic principles still apply here. We seek bargains. Economic activity is shifting. Some areas have slammed on the brakes as demand has fallen off; some areas are buzzing in a scramble to keep up with demand.

Just like the setbacks in our individual lives, the business setbacks exist alongside potential setups. Part of our job is to take a good look around to try to spot them. No guarantees, but we wonder what future growth is being watered by the current storm.

We’re not ignoring the storm. This approach, however, helps remind us of the bigger picture. It’s a more complete way to tell the story of a setback.

Clients, if you would like to talk about this or anything else, please email us or call.

You Can’t Always Get What You Want

© Can Stock Photo / lucidwaters

Wouldn’t it be great to have an easy job with a big salary? Or a hot sports car that was very low-priced? Or a luscious dessert with no calories?

The financial equivalent: an investment with good returns and stable value. Believe us when we say this is a popular concept.

Nearly five decades ago, the Rolling Stones advised that “You can’t always get what you want.” This is surely true of each of the situations described above. You just cannot get those desirable combinations.

But “if you try sometime, you just might find, you get what you need.” On the investment front, many people need their money to grow over time to meet long term goals. Stability of value along the way would be comforting to have. The true need is growth, and the key measure is how much money you wind up with in the distant future.

The real return on truly stable assets is usually low. Some people with a lot of assets relative to their needs can live with low returns. Most of our clients need their money working harder than that—so necessarily must forego stability along the way. (Or, adjust their goals to reflect more modest circumstances.)

We take pride in telling it like it is. Although many sellers promote the false notion that you CAN get good returns and enjoy stable values, we believe you can handle the truth. Markets go up and down—and that’s OK. Whether you were born with effective investment instincts or we had to train and coach you, many of you have shown the ability to live with volatility and invest effectively anyway.

Go ahead, ask us again about that mythical investment with good returns and stable value. We will help you understand that you can’t always get what you want, but you can get what you need. Call or email us if you wish to discuss your situation.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.