Weekly Notables

from the Desk of Brian Bickett, CFP®

for the Week of July 10, 2019

Saving vs Investing…

Saving and investing are both important; however they are not the same thing. 

My definition of saving is relatively low returns with very little (if any) risk and is used primarily for short-term goals.  This usually includes a “sleep-at-night” fund and money earmarked for purchases within the next 3 years such as cars or a home.  Tools used for these funds can include high-yield money market accounts, certificates of deposit and short-term Treasury notes.

Alternatively, investing allows the potential for higher returns by taking on the additional risk of loss and is used primarily for longer-term goals – typically at least 5 years away.  Investing for retirement, building wealth, and intelligently turning retirement accounts into retirement income are common investing goals.  Typical investments include stocks, bonds, mutual funds, exchange-traded funds (ETF’s), real estate and small business.

The Feds recent and continuing comments implying that they are ready to decrease short-term interest rates to fuel continued economic expansion is great news for investing and not-so-great news for saving.  Overall this is good news for folks like yourselves who have a solid financial plan and you are intentionally both saving and investing, matching funds for specific goals.   The long-term success of your financial plan is affected more by higher investing returns than decreases in short-term saving rates.  

Enjoy the ride of YOUR life!

— Brian

Find Your Financial Roadmap.

Brian can help you develop a roadmap to get you from where you are to where you want to go — and then put it in action, making your money work for you to avoid behavioral mistakes.

S&P 500 Jumps Above 3,000 for the First Time after the Fed Chief Signals a Rate Cut is Coming

The Dow Jones Industrial Average, S&P 500 and Nasdaq indexes have hit all-time highs today after prepared testimony from Federal Reserve Chair Jerome Powell was released.  His comments acknowledged the many current uncertainties with trade and global growth.  He also repeated his pledge made in June that the Fed would closely monitor developments and would act as appropriate to sustain the expansion.

Wendy Crockett Becomes First Woman To Win Iron Butt Rally

For the first time since it’s origins in 1984, a woman rider took first place at the 11,000 miles in 11 days bi-annual Iron Butt Rally.  An interesting side-note is that Wendy lives right here in Rapid City and completed the rally on her 2005 Yamaha FJR 1300 with more than 200,000 miles on it.

Where’s Brian?

Nicole & I will be at Fort Carson on Sunday for a short sprint

Additional Articles You May Find Interesting

Presidential Election, Volatility, and the Long View

Presidential Election, Volatility, and the Long View

Article written by Brian Bickett The presidential election is looming next week and, considering the many surprises 2020 has already brought us, the outcome of the election is shrouded with uncertainty, speculation, and angst.  Beyond how the election winner will...

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CARES Act – Returning unwanted 2020 RMDs

CARES Act – Returning unwanted 2020 RMDs

Article written by Brian Bickett   One of the key provisions of the CARES Act, the coronavirus relief act that took effect this spring, permitted retirement account holders to bypass required minimum distributions (RMDs) for 2020. RMDs are the annual withdrawals...

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Summary of the 2020 Social Security Trustees’ Report

Summary of the 2020 Social Security Trustees’ Report

The Social Security Board of Trustees released their annual report at the end of April once again this year.  The report for 2019 spans 276 pages that go into detail about the current financial status, future assumptions, and projections.  Once again…

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