October 2024 Blog Newsletter

October Captain’s Log

November 5th is Only a Few Weeks Away

As the Presidential Election approaches, it’s no surprise that it’s top of mind for our clients and dominating the news. With November 5th just around the corner, I’d like to remind our readers that this is the third time in the past 12 months that I’ve written about this topic. For more insights, visit www.anchorwm.com and check out the Captain’s Log. In my December 2023 newsletter, I discussed what to expect during Presidential election years, and in my June 2024 newsletter, I highlighted the market results from previous election cycles.

What remains true is that markets are unpredictable, but staying the course leads to the best long-term performance. 2024 provides another great example—despite it being an election year, the market remains strong. This is a reminder for clients to focus on what they can control: living on less than they make, investing consistently towards retirement, and creating a bucket list to enjoy time with friends and family.

Market timing simply doesn’t work. At Anchor Wealth, we help our clients plan for the money they’ll need over the next 12 months in advance, ensuring that market fluctuations don’t disrupt their financial plans. We also work with clients to anticipate up to five years’ worth of liquidity for retirement living expenses and bucket-list experiences.

Investors who can tune out the noise, stay invested, and remain focused on their long-term objectives see the greatest benefits. Election cycles, like other significant events, can stir emotions and lead to knee-jerk reactions, but the data has shown time and again that those who stay disciplined ultimately reap the rewards. At Anchor Wealth, we are committed to guiding our clients through both calm and turbulent times by focusing on solid financial principles and long-term planning.

Remember, it’s not about predicting the next big market swing or letting external events dictate your financial decisions. Instead, it’s about building a plan that considers your future needs, personal goals, and aspirations—one that allows you to live the life you envision without fear of short-term volatility.

We’ve helped many clients retire confidently, take dream vacations, and spend more time with loved ones because they remained steadfast in their approach. This election season is no different from the many cycles we’ve weathered before. Stay the course, trust your plan, and most importantly, focus on the aspects of life that truly matter—spending time with the people you care about and doing the things that bring you joy.

We are here for you, now and always, to help you navigate the path ahead with clarity and confidence.

Ready for Open Enrollment? What You Need to Know

As fall approaches, so does open enrollment season—a critical time for employees to review and make important decisions and updates about their benefits. Most companies start open enrollment on November 1st, so now is the time to get organized and make sure you’re prepared.

Review Your Current Benefits

Before considering new options, take a thorough look at your existing benefits. This includes not only your health insurance but also other coverages such as dental, vision, and disability insurance. Ask yourself:

• Does your health insurance still meet your needs? Consider changes in your health over the past year and whether your current plan provides adequate coverage.

• Do you have dental, vision, or disability insurance? Are these benefits sufficient for your needs?

• Are you contributing enough to your retirement plan to take full advantage of your employer’s match?

• If you’ve had significant life changes like marriage, divorce, or a new child, do your beneficiary designations and life insurance coverage reflect your current situation?

Taking stock of where you stand now will help you make informed decisions and navigate your financial health in the year ahead.

Account for Employer Benefit Changes

Employers often update benefit offerings during open enrollment. If you have questions or need further assistance, reach out to your HR department for clarity on your benefits and ensure you’re making the best decisions for the upcoming year. Stay informed to know:

1. Any new health insurance plans or coverage options

2. Changes to employer contributions, including matches or automatic contributions

3. Updates to flexible spending accounts (FSAs) or health savings accounts (HSAs)

Being aware of these updates ensures you make the most of new or improved benefits.

Maximize Your Retirement Contributions

When looking at your retirement contributions, it’s a good idea to think about whether pre-tax or after-tax (Roth) contributions are right for you. Pre-tax contributions can help lower your taxable income now, but you’ll pay taxes when you withdraw them in retirement. On the other hand, Roth contributions won’t give you a tax break today, but withdrawals in retirement are tax-free. It all depends on what works best for your current situation and long-term goals.

Also, don’t forget to make sure you’re contributing enough to get your full employer match—after all, that’s free money for your future! If you’re 50 or older, you might be able to take advantage of “catch-up contributions,” which let you put a little more into your retirement account each year.

Open enrollment is the perfect time to check on these things and make any changes to ensure you’re setting yourself up for success down the road. Anchor Wealth Management can help you review your benefits, from retirement contributions to insurance options, ensuring they align with your financial goals.

By Adam Ludwig, CEO/Wealth Advisor
Learn More about Adam Ludwig and the AWM Team

Adam’s Nightstand

I am currently reading The Advisor Transformation: The Ultimate Guide to Growth, Freedom, and Joy for Financial Advisors by Shawn Sparks. Shawn works in the business development space for entrepreneurs. What makes him unique, though, is that he writes specifically for financial advisors and the wealth management industry.