2023 Q2 In Review - Integrity Wealth Advisors, Ventura & Ojai, California

THE IMPACT OF
SOUND FINANCIAL
PLANNING
Recent Vanguard research 1 shows that an experienced
wealth management team not only adds peace of mind,
but also may add about 3 percentage points of value in
net portfolio returns over time. What does this mean? Your
team has the ability and the time to evaluate your portfolio
investments, meet with you to discuss objectives, and
help get you through tough markets. All of these factored
together potentially add value to your net returns (returns
after taxes and fees) over time. But the most interesting part
of this research is that it shows that financial planning and
financial coaching contributed to the greater majority of the
added net 3% in net portfolio returns.
It’s important to realize how valuable making sound financial
planning decisions is and that value is added by your
financial planning team. As investors, our emotions can be
our worst enemy, especially when the markets are volatile,
and guidance from a “behavioral coach” can save us from
panic-selling and abandoning long-term financial plans.
Numerous studies demonstrate that advisors can have a
huge impact on investor finances, but it’s hard to say if these
findings have been recognized and understood by everyday
investors.
YOUR MID-YEAR MONEY CHECK-UP
Are you on track to meet your financial goals? Follow these five steps to find out.
Summer is kicking into high gear and your finances may be the last thing on your mind right now.
But here's why it's important to carve out time for a simple five step mid-year money check-up.
Just like the halftime break in football, the purpose is to take a breather, assess progress toward
your goals and adjust your strategy if you aren't on track.
STEP 1: UPDATE YOUR SPENDING PLAN
So often we just tap and pay. It's easy to spend without realizing how much it adds up. That's
why we always recommend you track your monthly expenses: review your credit card statements
or ask us about our Budgeting Tool within our financial planning software. It's important to know
where your money is going. If you identify a spending issue—use the information to intentionally
change your behavior—so you can funnel the money where you want it to go.
STEP 2: CONTRIBUTE TO YOUR COMPANY'S RETIREMENT
PLAN UP TO THE MAXIMUM MATCH
A 401(k) match is money your employer adds to your retirement account, on top
of your own contributions. If your company matches dollar for dollar up to 5%
of your income, then that means if you save 5%, your employer will add
an additional 5% to your retirement account.
Don't leave this free money just lying on the table. Here's what
the impact of an employer match can mean over 35 years:
Let's say you are 30 years old, earn $80,000 per year and
contribute 5% each year until age 65. The value of your
401(k) could be $460,092 at age 65.*
If you add in a dollar for dollar 5% employer match,
the value of your 401(k) at age 65 with the employer
match could be $920,184.
DREAM.
PLAN.
ENJOY.
Your action item: If you couldn't contribute up
to the match amount at the start of the year—
consider this—did you get a pay raise recently?
If yes, carve off as much of that pay increase as
possible to bump up your savings to your match level
now, and increase the amount you are contributing to
your company 401(k) plan.