Paces Ferry Wealth Advisors | Financial Planning Blog

Managing Your Response to Behavioral Biases

Written by Jeff Diamond, AIF® on October 15, 2019.

In the investment business terrain, there truly is no such phenomenon as a “sure thing,” and this is the reason our goals-based planning method takes into account the natural unpredictability of the market. In order to arrive at a safe middle ground, our strategy endeavors to invest assets in a way that even the worst of market situations have a less than total effect on any one portfolio. While there is no guarantee, prudent and science-based investing can help our clients weather the storm during market declines and benefit from the growth during periods of market upticks.

Human nature being what it is, however, we anticipate the anxiety that can lead clients to respond hastily during market corrections. Unfortunately, these premature panic responses can jeopardize a long term strategy, and significantly hurt a portfolio.

Behavioral biases can negatively affect our financial decisions, but there are ways to harness the power of optimism and manage your responses in a positive, confident manner, despite the inevitable pressures you may face financially over the course of your life.

The following is a demonstration of how a pragmatic approach to managing your behavioral biases can function to prevent your negative auto-responses during times when your confidence in your finances is strained.

Was It Worth It? Advisors Reflect on Joys and Pains of Moving

Written by Zachary Morris, CFP® on October 14, 2019.

by: John Kimelman

Reading the trade press and the almost daily deluge of advisors jumping from firm to firm, you might think switching firms is a quick and easy task.

But regardless of whether you’re going independent, joining another wirehouse or shifting to a regional firm, moving presents enormous risks to advisors who want to preserve their book of business and transition assets while also avoiding legal trouble from their former firm or ending up at the wrong place.

Three advisors who moved since last summer and agreed to speak to AdvisorHub about their move generally report that the process has gone smoothly thanks to careful planning, patience in dealing with unexpected surprises and a loyal client base who was willing to follow.

Paces Ferry Featured In: How to Manage Your Money After Kids, According to 15 Financial Advisors

Written by admin on October 9, 2019.

by: Matt Berical

Everything changes when you become a parent — especially your finances. You want to make sure to start off on the right financial footing. But, financially speaking, where do you begin? What’s the best financial advice new parents need to know?

Are You Getting the Most Out of Your 401(k)?

Written by Zachary Morris, CFP® on October 2, 2019.

If your employer offers a 401(k) plan, you likely know two things about it: 1) you can automate investment of a portion of each paycheck to make saving easy, and 2) whether or not your employer offers matching contributions (i.e. free money).

Outside of this basic information, 401(k) plans can be a bit confusing for the average investor. The financial jargon alone can be enough to deter you from investigating the best way to protect and grow your money over the long-term. This is one of the main reasons so many people leave their retirement accounts on auto pilot, failing to learn ways to enhance their earnings. If you’d like to avoid this fate, information is key.

Four Ways to Streamline Your Finances

Written by Jeff Diamond, AIF® on September 11, 2019.

Managing a complex financial picture can feel like a Herculean task and one that often leads to stress and procrastination. So much time is spent organizing paperwork and hunting down data that by the time you actually sit down to figure out where you stand you are too tired and stressed to be able to make good decisions or implement new strategies.

If this sounds like you, it may be time to take some steps to simplify your financial life. This won’t just save you time and effort it may also save you money.

We have compiled four tips that cover the areas most people seem to need to simplify and improve. Your needs may be different but at the very least this list should give you some ideas about how to get started.

How to Help Recession-Proof Your Life: 5 Tips

Written by Zachary Morris, CFP® on August 23, 2019.

It’s hard to watch the news and not feel a little concerned about your finances. Trade wars, stock plunges, interest rates fluctuating, combine that with stagnant wages and an inflating cost of living–it’s enough to get even the most stalwart savers wringing their hands. In fact, 25% of Americans report worrying about money all the time.[i] So, what can you do? In this article, we will outline 5 tips to help recession-proof your lifestyle so that, while the economy and markets may have ups and downs, you can feel secure.

Opportunity Zone Investments

Written by Zachary Morris, CFP® on August 2, 2019.

The 2017 Tax Cuts and Jobs Act (TCJA) was the most sweeping tax legislation since the 1986 Tax Reform Act was signed into law. The Tax Cuts and Jobs Act made small changes to personal income taxes and significantly reduces income tax for corporations. It also increased alternative minimum tax (AMT) and estate tax exemptions. New tax deductions for owners of pass-through entities and changes to the taxation of foreign income were also part of TCJA. For investors, Opportunity Funds promote investing in low-income designated areas, called Opportunity Zones, by offering federal tax advantages.

What Is Impact Investing and Why Does it Matter?

Written by Jeff Diamond, AIF® on July 29, 2019.

Impact investing allows you to put your money where your mouth is, and help the world in the process.

by: Brian O’Connell

Impact investing is everything the name implies – it’s all about investments in companies that make a positive impact on society and on their communities.

No question, investing in Environmental, Social and Governance (ESG), the more formal name for impact investing, has both rewards and risks, but that’s not stopping legions of investors from getting involved.

According to the Global Impact Investing Network, the global impact investment market stands at $502 billion in 2019.

Expect that figure to rise as more investors (especially younger ones) decide that “doing well by doing good” is their go-to investment strategy going forward, and as impact investing becomes their investment model of choice.

The Making of a Successful Retirement Starts with Maximizing Your Contributions

Written by Zachary Morris, CFP® on July 26, 2019.

If you have been contributing consistently to your retirement plan, then you are already on your path to a secure retirement. But are you doing everything you can to build your retirement nest egg? Capitalizing on your company retirement benefits package now can help to make your retirement that much more care-free. Here are five tips to help you build your financial future.

How Can Your Child Benefit from a Roth IRA?

Written by Zachary Morris, CFP® on June 25, 2019.

When you think of a Roth IRA, you aren’t usually picturing a child as the owner. But, when you dig deeper, a Roth really is an ideal savings vehicle because they have more than a half-century to watch their contributions grow tax-free. Plus, there is a great deal of flexibility allowing you to withdraw your contributions at any time without tax or penalties (*subject to certain withdrawal guidelines noted below).