Here’s Why Millennials Need To Get Started Early Financially

Are you young and jump starting your career? Heading up the corporate/financial ladder but still worried you will not reach your financial goals? Don’t fret, many others out there are in the same boat, especially millennials. We have been writing about millennials and their increasing wealth in previous blogs, however, we have yet to touch on how those individuals feel about reaching their financial dreams. 

According to a survey by Broadridge, “of the 39% of millennials not using a financial advisor, the majority (65%) plan to begin using one in the next two years.” They found that “the demographic is more comfortable with investing than the total population, with 65% of millennials using self-directed brokerage accounts, compared with 52% of all investors surveyed.” 

At Sherman Wealth, we work with millennials, regardless of their financial status or assets, and help them reduce their financial stress and meet their financial goals. Our team works diligently to provide our clients with state-of-the-art technology that is well built for tech savvy millennials and helps them view all their finances in one place. With the overflow of social media and conflicting sources in the media, as a young individual, it’s very easy to get swept up in fads and social media trends, resulting in poor financial decisions. Given the data listed earlier, this is a real opportunity for you to let us help you get started at a young age and try to hit those goals you have set for yourself and your future. If you have any questions or are interested in learning how we can help you, reach out to us at info@shermanwealth.com or schedule a 30-minute complimentary consultation here.

Are you a Buy Now-Pay Later Fan?

You might notice that the ease of swiping your credit card often allows you to make impulse purchases. Have you ever purchased something you probably shouldn’t have because you mindlessly swiped your card? That’s okay! We all splurge on items that we want, but it’s important to discuss the consequences of building up debt on your cards and learning how to make smart decisions when doing so. 

“Buy now-pay later” apps and options on credit cards are all the craze right now, which allows individuals to split up their payments into installments instead of paying the lump sum in full. You may have seen companies like Klarna, Affirm, or AfterPay pop up while you were checking out at your favorite online store and decided to break up the price of your new favorite shoes over the course of 3 months. Many of you have probably used a payment plan when purchasing your peloton or new furniture for your house. I took advantage of Affirm when purchasing furniture for my new apartment, which helped lower the initial cost of my big move. While there is nothing wrong with choosing this option, it’s important to remember to pay your total minimum balance in full AND on time to avoid being hit with interest rates, a declining credit score, and late fees. Be cautious and make sure that you read the fine print of these buy now pay later options and ensure that participating will not negatively impact your financial health.  Only take on what you can afford! 

While discussing spending, it’s also important to touch on budgeting and how it is such a crucial part of your financial life in order to build your net worth and also avoid spending mistakes and consequences as you saw listed above. We’ve mentioned this in other blogs before, but creating clear goals for your future and listing out your wants versus your needs is a great way to get started on your personal budget. Check out our other blog for more tips on how to effectively and strategically build financial goals and a budget that is best for you. If you have any questions for us, email us at info@shermnwealth.com or schedule a complimentary 30-minute consultation here. 

Ep.50 Launch Financial- CryptoPunks and All Time Highs in The Market

Overview: 

Join us on the 50th episode of Launch Financial as we discuss all time highs in the market, CryptoPunks, the Pfizer vaccine, and more! 

What You’ll Learn:

  • Despite market volatility, stick to your long term financial plan
  • What CryptoPunks are 
  • How financially strapped women can better their financial situation

Show Notes:

Riskalyze Recapitalized 

A Note To Women Out There Who Are Feeling Financially Stressed-You Are NOT Alone

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A Note To Women Out There Who Are Feeling Financially Stressed-You Are NOT Alone

Did you lose your job in the last year because of the coronavirus pandemic? Did you quit your job to care for your children who were virtually learning at home and needed care? Are you divorced or widowed and feeling financially strapped? Do any of these scenarios hit home? Well you should be reassured to know that you are not alone. Women all over the globe are feeling the same way you are. Just know that there is help out there waiting for you.  

As you can see in the chart above from the Washington Post, women along with non-white Americans feel less financially fit since the pandemic has started. Although you may feel like you are in too deep or too far beyond repair, that’s not the case. At Sherman Wealth, we help  women in the same situation as you. No matter your situation, positive or negative, we can help educate you, repair your financial situation, and get you back on track for financial success. 

As a young independent woman now approaching the second year of my first job post-college, I can say first hand how far financial education has brought me and how empowered I now feel about my financial future. Whether you are starting with a large lump sum or just getting started, taking control of your finances and educating yourself on the “smart” things to do at each stage in your life can progress you towards financial independence. Sherman Wealth is here to teach you those important steps to take in order to reach your financial goals faster and more efficiently. We all make financial mistakes, but it’s important to learn from them and move on proactively and effectively. 

So, to all you women out there who don’t know what direction to go in next, reach out to us and let us help you make smarter decisions so you can be financially independent and one step closer to making your financial dreams come true. If you are interested in attending a women’s financial fitness seminar or local event to learn some of these great tips, email us at info@shermanwealth.com or schedule a complimentary 30-minute consultation here. 

Ep. 49 Launch Financial-How To Assign Familial and Financial Duties within a Relationship with David Pearl

Overview: 

Tune into this week’s episode of Launch Financial as we are joined by recurring special guest, Music City Pysch’s, David Pearl. On this episode, David discusses strategies couples should utilize when assigning financial duties to each other, and how communication is a key driver in that process.

For more background on David, he aims to provide a safe and supportive environment to strengthen self-esteem and facilitate more meaningful connections with family, friends, professional colleagues, or teammates.

David obtained his Master’s degree from The Silver School of Social Work at NYU and his Bachelor’s degree in Human Development and Family Studies from the University of Wisconsin-Madison. He is formally trained in Acceptance & Commitment Therapy (ACT), and has certifications in Imago Relationship Therapy and Prepare/Enrich Premarital and Marital Counseling. David is dual licensed in New York and Tennessee, and works with clients on an ongoing basis in both locations.

Prior to founding Music City Psych in Nashville, TN, David provided psychotherapy and performance coaching at Union Square Practice in NYC, counseling to individuals, couples, and families struggling with hematologic cancers at Mount Sinai Hospital, as well as psychodynamically oriented individual and couples counseling at The National Institute for the Psychotherapies (NIP).

What You’ll Learn:

  • Strategies on how to effectively and positively communicate with your spouse or partner
  • How to be intentional about your spending
  • How to talk about financial duties and money with your partner

Show Notes:

Ep. 40 Launch Financial- Does Money Buy Happiness with David Pearl

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Ep. 48 Launch Financial- Unpacking the 2021 Infrastructure Bill & The Delta Variant

Overview: 

Check out this week’s episode of Launch Financial with Ashley & Brad as we recap the first few weeks of August, including inflation, the car market, delta variant, and the new infrastructure bill. 

What You’ll Learn:

  • Inflation numbers and how that’s impacting what you may be in the market for
  • Details on the infrastructure bill 
  • Delta Variant’s impact on the travel and dining industry. 

Show Notes:

In The Market For A New Car? Check This Data Out

Why To Start Early When Saving and Investing

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In The Market For A New Car? Check This Data Out

In the market for a new car? Read this first. As you may already know this but the car industry has had quite the year, with used and new car prices shooting through the roof. Used cars have especially skyrocketed to record high prices and are actually hard to find as we’ve been following tons of pandemic-related chip shortages across the world. This shortage is leading to a decrease in supply during a time in which there is such great demand. 

Is it just cars that are more expensive? No it is not, the price of everything you want to buy is rising, and consumers are certainly feeling the impact of it first hand. Take a look at the chart below. 

So, knowing that inflation is real, demand is high, and supplies are limited, what should you do if you are in the search for the car of your dreams? Well, there’s a good chance that the car you are searching for won’t be available, so when going into your search, be flexible and have a few cars in mind that you are interested in. You may also want to expand your geographic search since we are in such a competitive market and the dealership up the street might not have what you are looking for. Put some time into researching and you may actually find another car out there that you like better. 

You may also want to consider some other options as well, such as leasing a car. With the demand of purchasing a car being so high, it could be a good idea to see what offers and specials dealerships are giving on leases. While leasing a car may not be the best option for you, it doesn’t hurt to check it out and see what deals there are. You may be able to swing a great deal if a certain dealership is behind on meeting their amount of leases for the year. If you are in the middle of a lease for your car, inquire about the purchase price of that vehicle after your lease is up. 

A bright-side to the skyrocketing car market right now is the amount of money you can get for your current car, as I can contest first hand. A month ago, I was offered such a great deal on my used car, more than I would ever usually get, due to this crazy demand for used cars. So, if you are willing to part ways with your car, now is a great time to sell and get the most for your vehicle. However, if you are selling your car now, keep in mind that your next dream car may not be available for immediate purchase, so make sure to have a back up plan in the meantime. 

It will be interesting to see how the surging COVID-19 delta variant impacts the car market and when the demand will start declining. If you have questions on what the best financial option for you is when purchasing your next car, send us an email at info@shermanwealth.com or schedule a 30-minute consultation here.  

Why To Start Early When Saving and Investing

You always hear people talking about saving for the future and for retirement. But you may be wondering why is it so important? Well, saving for your future and building your wealth can be quite simple if you go about it in the right way. One of these “right ways” includes STARTING EARLY. 

Starting early is a great savings philosophy and strategy when it comes to building your wealth. When you’re just starting your career, it’s very important to save as much as you can as early as you can. When you’re young, you might not have as many expenses or financial burdens than you will later on as your life becomes more complicated. 

Another reason to start saving early is because of the power of compound interest. Compound interest is when you earn interest on both the money you’ve saved and the interest you earn. Increasing the compounding frequency or your interest rate, or adding to your principal, can all help your money grow faster. Also, money invested earlier in time will grow faster than money invested later in time. So if you save as much as you can as early as you can, you will be better off as you near retirement.

 

The graph above from JP Morgan shows account growth of $200 invested/saved monthly among 4 individuals starting at different times. As you can see, with the same rate of return of 5.75%, Consistent Chloe, who consistently invested her money starting at age 25 to age 65, ended up with the greatest ending portfolio.

Finding a balance between saving, investing, and also enjoying your life is not an easy task, but it tends to be easiest when you start early. Starting when your career is jumpstarting is a great way to get yourself consistently saving and investing and will benefit you in the long run. If you have any questions on how to work this strategy into your financial plan and life, email us at info@shermanwealth.com or schedule a 30-minute complimentary consultation here.

Your COVID-19 Relief May Be Coming to An End

As summer is passing by quickly and September is just around the corner, people are starting to prepare financially for the fall. However, this fall might look a bit different than others in the past as loan repayments are restarting. Although Biden stated that there will not be another eviction moratorium, yesterday evening, the CDC issued a new federal eviction ban effective across most of the country, a yearlong nationwide halt on rental evictions, through October 3rd, 2021.

According to the CDC, this new eviction ban is being extended for areas of the country that are still facing high levels of the coronavirus. So, for those who have been unable to pay their housing payments for the last year, the CDC has granted you another 60 days. Be sure to do some research on whether this extension applies to your state and also do further investigating on whether your state is providing supplemental local or state assistance if you still need further financial help. 

While there was some back and forth on the eviction moratorium, many people are speculating that this might also hint at the end of the Federal Student Loan Relief, which is set to expire September 30, 2021. So, for those with federal student loan payments, take this next month to save and financially prepare for this new payment that you may have taken a break from over the last year or so. 

Check out some of our other blogs that will help discuss topics such as budgeting, refinancing, spending and savings tips to help prepare you to pay back some of these loans during such a hard time. If you have any questions for us and want help looking at your financial picture, email us at info@shermanwealth.com or schedule a complimentary 30-minute appointment here.

What To Think About When Moving Jobs

Changing jobs and not sure if you have everything under control? Switching jobs can be a stressful time and definitely a transition, so it’s important to make sure you are on top of everything you need to know and do. So where do you start? Let’s see. 

Salary Structure

According to an interesting LinkedIn article, most people leave their jobs due to career advancements and salary increases. While this may be the reason you are leaving your job, you should make sure you understand the full scope of your pay situation, in terms of the pay schedule and type 

Workplace Benefits 

The benefits at your new job may be different than the ones at your previous job. You may have had a 401(k) and match at your old company and realize that your new one may not. If that’s the case make sure you are aware and content with the circumstances. If you have an old 401(K) from the company you are leaving, make sure to take it with you and consider a rollover to make the most sense. 

Also, keep investing in or open a Roth IRA while you switch jobs in case you are unable to contribute to your new company 401(k) for a certain amount of time. Check out our previous blog discussing mistakes to avoid when rolling over a 401(k) to an IRA. In addition to your retirement options, make sure you look at what other financial perks your company offers, such as how your health and medical insurance may change, for the better or worse.  

Job Growth 

You’re probably moving jobs because you want to advance in your career. No matter the reason, you should always work somewhere you feel you can achieve personal growth and advancement. 

Company Culture 

Before committing to a new company, do research on the company and make sure you fully understand the culture of that workspace. Company culture is a huge part of being successful at your job, so feeling comfortable with the new team you may be joining is a huge step. Given the unconventional working conventions due to COVID-19, inquire about the future of your company’s work culture, whether that may be returning to in-person or remaining virtual. 

While starting a new job may bring an abundance of emotions, it’s important to think through all of your options and do your research. Consider discussing your switch with a financial professional to understand how to make a smooth transition to the next chapter in your life. If you have any questions for us about your current situation, reach out to us at info@shermanwealth.com or schedule a 30-minute appointment here.