👋 Financial Breakaway Newsletter | September 2024
Welcome to the September edition of the Financial Breakaway Newsletter!
As fall approaches and the back-to-school season settles in, it's a great time to pause and reflect on how far we’ve come this year. Markets have been strong so far this year, but as we move into the final months of the year, there are developments to keep an eye on. With talks of a potential Fed interest rate cut on the horizon, we’ll explore what this could mean for your financial outlook. In this edition, I have some good insights to help you stay informed and confident as you navigate the months ahead.
Newsletter Highlights
🌅 Retirement: Your S&P 500 Index Fund is REALLY NOT Diversified Now
📈 Mid Career: Everything You Need to Know About Stock Options and RSUs
📚 Short Shifts: What I’ve been reading
🎙️ New Podcast Episode: The 7 Essentials of Retirement Health Insurance
⏰ Open Virtual Office Hours: Mondays & Fridays!
❓❓QUIZ TIME❓❓:
When was the S&P 500’s “Lost Decade” …where the S&P 500’s annualized total return was negative 0.7% a year?
A.) From March 2000 to March 2010
B.) From February 2005 to February 2015
C.) From March 1990 to March 2000
D.) From January 2010 to January 2020
*Answer below
• Retirement •
What I’ve Been Reading…
Your S&P 500 Index Fund is REALLY NOT Diversified Now
Talk about timing! About one week ago, I wrote this blog about the dangers of overconcentration in the S&P 500. Since then, many of the Mag 7 stocks such as Nvidia, Google, Apple have been down quite a bit, pulling the market as a whole down with them. It’s a real-life reminder that diversification isn’t just a buzzword. If you’re relying on an index fund for safety, you might want to think again! Check out my blog to learn why.
• Mid-Career •
What I’ve Been Reading…
Everything You Need to Know About Stock Options and RSU's
This article explores a benefit helps connect people to their company: equity compensation. Learn how stock options and restricted stock units can offer you a stake in your company’s success and potentially boost your financial future. This article is a great guide to understand how to navigate these perks, mitigate risks, and maximize your rewards.
My thoughts on this article…In Milwaukee, where major employers like GE, Harley-Davidson, Rockwell, and FIS offer employees equity compensation through RSUs or ESPPs, it's common to see people unsure about how these benefits work or how they’re taxed. I like this article because it helps break down everything you need to know about stock options and RSUs. By better understanding how they work and enlisting your financial planner like myself can help you make informed decisions about how to effectively use these to benefit your financial future.
• Short Shifts •
- 📈 Fed Expected to Hold Rates and Signal September Cut | Bloomberg.com
- ⛱️ Finding Your Purpose in Retirement | Forbes.com
- 😎 Retirement: Open to the Good Stuff | Psychologytoday.com
• New Financial Breakaway Podcast Episode •
*Click Here to Watch Full Episode on YouTube*
Quiz Answer:
A.) From March 2000 to March 2010
Source: https://www.ft.com/content/a3b2789b-66bb-41a1-b9b5-a1eba0b1a2cf