With the holiday season around the corner, financial professionals like me are preparing to watch the festivities, enjoy some seasonal treats — and answer more than a few of my family members’ financial questions!
As I look ahead to the holidays, I wanted to share some of the most common financial questions I hear.
How much do I really need to retire?
The amount you’ll need to retire depends on various factors, including your lifestyle, health care needs, and where you plan to live. A common rule of thumb is to aim for 80% of your pre-retirement income annually. However, with recent inflation rates, it’s important to adjust this number to maintain your purchasing power.
That’s why we review your plan regularly to account for inflation, market dynamics, and changes to personal goals.
How do I start budgeting?
Creating a budget begins with tracking your income and expenses. Start by listing all your sources of income, then categorize your expenses (e.g., housing, food, entertainment). Subtract your expenses from your income to see if you have a surplus or deficit.
Use this information to make adjustments, prioritize savings, and ensure you’re living within your means. Tools like budgeting apps can make this process easier and more effective.
How can I improve my credit score?
Improving your credit score involves several key steps:
- Pay your bills on time – Late payments can significantly impact your score.
- Reduce your debt – Aim to keep your credit card balances low relative to your credit limits.
- Check your credit report – Ensure there are no errors that could negatively affect your score.
- Limit new credit applications – Frequent applications for new credit can lower your score temporarily.
- Maintain a mix of credit types – Having a variety of credit accounts, such as credit cards and installment loans, can benefit your score.
How do I time the stock market?
Timing the stock market — trying to predict when prices will be at their highest or lowest — is notoriously difficult, even for professional investors. A more reliable strategy is to focus on long-term financial planning. One such long-term option is called dollar-cost averaging. This approach reduces the impact of market volatility on your overall investment and helps avoid the pitfalls of trying to predict market movements.
Thank you for reading!
Joe Ezernack
This material is intended for informational purposes only and should not be construed as legal, accounting, tax, investment, or other professional advice. Trademark Capital’s investment strategies are built using quantitative, proprietary algorithms that are designed to identify and react to changing market conditions. However, investors should be aware that no investment strategy or risk management technique can guarantee returns or eliminate risk in any given market environment. As with all investments, Trademark Capital Management’s investment strategies are subject to risk and may lose money. The investment strategies presented are not appropriate for every investor and individual clients should review with their financial advisors the terms and conditions and risk involved with specific products or services. Due to our active risk management, our managed portfolios may underperform during bull markets. Past performance is no guarantee of future results.
