August 1, 2023
I often discuss the concept of the “Happy Bucket” – keeping a sufficient amount in your local bank to ensure you feel secure and content. With the current high short-term rates, CDs (Certificate of Deposits) have become an attractive option. I’ve even invested in some myself.
While I’m not keen on tying up funds or taking significant risks, especially being self-employed, CDs offer competitive rates. If you need to withdraw early, you typically lose only 60 days of interest. Fixed Annuities offer even higher rates, but they lack liquidity. With guaranteed rates of up to 5.25% for 10 years and even higher rates for Fixed Indexed Annuities, one might wonder why anyone would risk the stock market. Some are content with a 5% return, while others seek higher growth, accepting the market’s volatility. It’s essential to understand your financial boundaries.
Recently, I purchased a six-acre property adjacent to my home. I had always expressed interest in buying it if it ever went up for sale. To my surprise, I saw a ‘For Sale’ sign on it one day. Although I felt the asking price was steep, my wife, Laura, and I decided to meet it. Our offer was straightforward – no contingencies, just a cash deal.
What’s the value of choosing who lives next to you? To me, it’s significant. I wasn’t ready to risk having neighbors I might not get along with. Even if I might’ve paid a premium, the peace of knowing we’ll have a serene lot filled with nature is worth it.
Where would that money have been if not invested in the property? Likely in a bank. But what’s the real value of money just sitting there? Beyond ensuring your “Happy Bucket” is full, money should bring joy, help others, and serve a purpose. It’s a balance between saving, growing, and spending. A Certified Financial Planner Professional™ can guide you through these decisions. If you haven’t consulted one, I recommend doing so.
While summer is in full swing, Christmas is just around the corner. Here are some early saving tips to ensure a joyful holiday season:
By planning ahead, you can enjoy a stress-free holiday season!
Our summer’s GLB Client Appreciation event at Kelley’s Island was a hit! Despite initial weather concerns, we had a fantastic time with great food, drinks, and entertainment. A big thank you to our clients – we cherish every moment with you!
Until next month, Wayne