Kefauver Financial Planning & Wealth Management

07/05/2024

Millennials now hold more wealth than Baby Boomers did at their age.

Wild, right? Baby Boomers are swimming in cash. But guess what? Many of them delayed consulting financial planners to make the most of it.

This isn't just their problem. It affects you. It affects the economy. It affects your country.

Ponder that tonight.

12/08/2023

Some Perspective.

11/10/2023

This insightful article from Visual Capitalist, featuring a detailed chart, offers a compelling demonstration of the value of investment diversification. It warrants a thorough read, especially for analyzing how each decade's predominant investment themes are often met with turbulent reversals.

Recall the rise of Japanese stocks in the '80s, the surge of American tech stocks in the '90s, and the boom of Emerging Markets in the 2000s? Each serves as a cautionary tale of the market's cyclical nature.

Here are the investment themes that have defined each decade from the 'Nifty Fifty' to the tech giants of the 2010s.

08/11/2023

Talk About a Missed Forecast!

The 'Death of Equities' cover from BusinessWeek back in 1979? 📰 It's a classic example of how financial journalism is dangerous and often misses the mark by a mile. 💥

While it may have seemed convincing at the time, the reality that followed was quite the opposite. The markets didn't just survive; they thrived! 🚀

Lesson Learned: Financial predictions often age about as well as milk in the sun. ☀️ So, if you're making crucial financial decisions based solely on today's headlines, you might want to think twice.

🔍 Insight: If this '79 cover teaches us anything, it's that a long-term perspective and a diversified strategy tend to outshine short-term sensationalism. 💡

Sound decisions aren't built on catchy headlines, but on informed, thoughtful strategies that stand the test of time.

07/06/2023

It's incredible to see how core investment principles are being reaffirmed at an accelerated pace. Over a span of just over three years, we've experienced two significant market downturns, yet the steadfast advice of "stay the course" has consistently proven its worth. It's a powerful reminder that volatility does not equate to loss, and resilience is key to long-term success in the investment world.

06/24/2023

The length of Bull markets as compared to Bear Markets since 1950. It's been a tough 26,837 days to be a pessimistic investor!

05/26/2023

It has become trendy for financial advisors to avoid numbers and charts in their marketing. Industry experts and business coaches suggest that building a connection and addressing clients' emotional relationship with money is essential for capturing their attention and fostering meaningful discussions.

The chart below shows that from 1950 thru 2022, there has yet to be a rolling 20-year period in US equities that returned less than 6% annually. You can pick any date and roll forward 20 years. It'll have been a 6% annual return or more.

How do you feel about that?

05/16/2023

Discussing the need for long-term care may feel uncomfortable, but it's crucial to recognize that the probability of requiring such care increases as we age.

According to Healthview Services, even for the healthiest older adults, there is an estimated 75% chance that at least one spouse in a couple will require some level of care. This emphasizes the significance of planning for such an eventuality.

Below is a chart illustrating the probability of needing long-term care at different stages of life. Let's engage in a meaningful conversation about preparing for the future and ensuring the well-being of ourselves and our loved ones.

05/15/2023

How can retirement spending be optimized for maximum enjoyment while considering potential healthcare and housing costs?

Retirement presents three distinct spending phases: go-go years, slow-go years, and no-go years. 📈 But let's not forget about potential increases in healthcare and housing costs as we age. 🏥🏠

The good news? A general decline in spending during the later years can enable higher early retirement withdrawal rates. This means more funds for travel and discretionary expenses. ✈️🌴

To visualize these phases and consider potential cost implications, check out the accompanying chart. 📊

05/11/2023

Did you know that the more you spend in retirement, the more dependent you become on your portfolio?

According to recent data, for a family earning $150,000 per year pre-retirement wanting to maintain this standard of living in retirement, Social Security would provide just 33% of that need versus 44% at the $100,000 income level. In other words, the more income that is required in retirement, the more reliant that retiree will be on their portfolio.

This can be worrisome, but being mindful of your spending in retirement can help you plan accordingly. Check out the chart below to see the numbers for yourself.

05/03/2023

Did you know that the breakeven point for delaying Social Security benefits is lower than most people assume? By waiting until age 70 to claim benefits, the total benefits paid can equal the amount paid if claimed at age 62 or full retirement age by the age of just 81.

Plus, delaying benefits can be a wise choice, especially for higher earners, as their benefits continue for the recipient or their spouse's lifetime. Considering that joint life expectancy can extend well into the 90s, it's worth thinking about whether delaying benefits is right for you.

05/01/2023

Did you know that only 6% of individuals wait until age 70 to claim their Social Security benefits, despite the potential for a 76% increase in retirement income compared to claiming at age 62? It's important to consider all your options and make an informed decision that's right for your unique circumstances. Start planning your retirement today to ensure a financially secure future.