Good morning. With earnings season underway, there has been a lot of movement under the surface of the broad market. Today we wanted to share some pieces we enjoyed, including the concept of dollar cost averaging, and why financial planning for entrepreneurs is quite different than those with a different lifestyle.
INVESTING & THE ECONOMY
We cannot control where the market goes and when, but if you set up a program that automatically invests whether the market is going up down or sideways, it systematically avoids the noise. This is the easy part. Hanging in there until the risk is rewarded, that’s what makes this tricky.
Home sales in the U.S. slumped in December, while prices inched up slightly, marking the smallest annual increase since the end of the last housing crash in 2012, according to data from brokerage Redfin. The median home price rose to $289,800 in December, a gain of 1.2 percent, the slowest monthly pace since March 2012. Sales dropped by almost 11 percent, the biggest decline for any month since 2016. Previously hot metropolitan areas are cooling fast. Prices dropped 7.3 percent in San Jose, California.
British Prime Minister Theresa May faced a new battle to save her job Wednesday following a stinging defeat in Parliament over her Brexit deal to leave the European Union – but while May, and Brexit, are down, they are far from out. May lost Tuesday’s vote on the deal she agreed with the EU to leave the bloc by 432-202. But while the defeat was widely expected, the scale of the loss was not, causing opposition Labour Party leader Jeremy Corbyn to call for a no-confidence vote in her government.
The people drowning in debt are usually scared when they come into Bankruptcy Court. On the 25th day of the government shutdown, many federal workers who are already under financial stress are understandably wondering whether bankruptcy is the only option.
Financial planning for entrepreneurs can be more difficult. But being an entrepreneur has many payoffs. Retiring years before “normal” retirement age, starting another business or only working on things that are really interesting to them personally are all things clients who have entrepreneurial goals can achieve. But you need a financial plan to attain those payoffs.