Offit Advisors' Laura Sendldorfer, CIC Elected FPA President-elect
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The team at Offit Advisors is thrilled to recognize one of our own.
Congratulations to Offit Advisors' Financial Advisor Laura Sendldorfer, President-elect of the Financial Planning Association of Maryland. This remarkable achievement is a distinction that Laura has earned through her hard work, knowledge, and expertise, and we are excited to see her thrive in this leadership position at the FPA.
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proACTION℠ Planning Series
Brand New Secure Act 2.0
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Join Ben Offit, CFP® and Laura Sendldorfer, CIC® as they discuss the brand new Secure Act 2.0 main changes and some planning thoughts related to them.
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Ann and Ben,
Just wanted to drop a follow-up note to personally thank you for your work with and continued support of my mom.
It means a great deal to her and myself to have you overseeing and helping her through some of the planning and investment decisions, both when my dad first passed away and now moving forward in life. It has become less daunting and intimidating to her and she actually was looking forward to going to the appointment today. I enjoyed catching up with you both as well!
Your patience, understanding and perspectives are very valuable and the relationship is very much appreciated.
Thanks again.
Ben S
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South Koreans consider a person a year old at birth and add a year to their age every New Year’s Day. A child born on New Year’s Eve can be considered to be two years old despite literally being born yesterday.
Independent, April 12, 2019
When the S&P declines 20% or more in a calendar year, it’s been up the next year two-thirds of the time. The following 12 months have seen a median gain of 24.3%.
Barron’s, December 23, 2022
New York’s waterways are the cleanest they’ve been in over a century, and whales, dolphins, sharks, seals, crabs, seahorses, and oysters are returning in droves.
Future Crunch, December 16, 2022
Going back to the early 1970s, Fed hiking cycles lasted an average of 219 days (from the first hike to the first cut); we’re currently just beyond 260.
Liz Ann Sonders, December 9, 2022
The invention of the transistor occurred 75 years ago this week and today it is considered the most manufactured item in human history.
Marketplace, December 12, 2022
“Middle age is when you’re faced with two temptations, and you choose the one that will get you home at 9:00 o’clock."
Ronald Reagan
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Steps to Become a Millionaire - Part II
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Hello Loyal Readership,
We got a lot of positive feedback about our Ten Steps to Become a Millionaire, so we thought about a few other items that could be included and created a part two! So you want to be a millionaire? Follow these steps:
1) Own it and do it. Take responsibility for making it happen. Contrary to popular belief, most millionaires are self-made and 79% did not receive any inheritance of family wealth.
2) Start saving and investing towards it TODAY – if you assume a 7% annualized rate of return, you will need to save the following amounts to have $1M by age 65:
a. Age 25 - $400 per month
b. Age 30 - $580 per month
c. Age 40 - $1275 per month
d. Age 50 - $3200 per month
3) Obtain a Bachelor’s Degree – it’s not fully necessary, but statistics show that education helps. It’s true that some high school and college dropouts make it really big, and kudos to those people! However, this is the exception, not the majority. 88% of millionaires have a college degree (compared to 33% of the general population). Also, 52% have an advanced degree
(compared to 12% of the general population).
4) Pick your career wisely – Certain careers have statistically showing a higher chance of translating into becoming a millionaire – accountants, actuaries, engineers, doctors, lawyers, zoologists, professors, and sales professionals. This is not to say that you cannot become a millionaire outside of these careers, but you may have a higher probability to do so in the above careers.
5) Work, over a long period of time – Yes, the vast majority of millionaires go to an actual job every day for 28 years before they hit the millionaire mark.
6) Save into your 401k – find a job or career that offers the opportunity to save into a 401k with a match, and take advantage of it right away. 80% of millionaires invested in their 401k.
7) Don’t carry credit card debt – if you spend more than you earn, you will end up with credit card debt that will compound against you with high-interest rates and make it nearly impossible to become a millionaire. Spend less than you earn and save more. Most millionaires never carry
credit card debt.
8) Save into tax-deferred vehicles – This gives you a tax benefit that makes it easier to become a millionaire. Use things such as 401ks, IRAs, Roth IRAs, and cash value life insurance.
9) Become friendly with stocks and equities – One needs to earn close to a 7% annualized rate of return over time to become a millionaire. Holding cash earning 0-2% or bonds earning 0-4% will make it much harder to become a millionaire.
10) Be disciplined with investing – Stop messing around with fads (ie. Day trading, meme stocks, crypto, NFTs). These can feel and sound exciting, but these are not too much different than gambling and you are more likely to strike out with $0 than hitting the home run and making millions. Most millionaires invest consistently, with a disciplined and diversified long term
portfolio. This focus on the long term is more boring, but it is what works more often. Embrace the boring!
11) Accept volatility – the stock market is down about 1 in 4 years. Market corrections (a drop of 10% of more) happen every year or so. Bear markets (a drop of 20% of more) happen every 5 years or so. Accept this and look at as an opportunity to buy low and take advantage of the
short term discount!
12) No excuses, do it, now! - You can decide if you want to become a millionaire or not. Take action today. Start saving in an account today, ignore the noise, make it happen.
Sources: Entrepreneur and Business Insider
The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra IS or Kestra AS. The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. It is not guaranteed by Kestra IS or Kestra AS for accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.
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S&P 500 Index is an unmanaged group of securities considered to be representative of the stock market in general. You cannot directly invest in the index.
Dow Jones Industrial Average - The Dow Jones Industrial Average is a popular indicator of the stock market based on the average closing prices of 30 active U.S. stocks representative of the overall economy.
NASDAQ Composite Index measures all NASDAQ domestic and international based common type stocks listed on The NASDAQ Stock Market. Today the NASDAQ Composite includes approximately 5,000 stocks, more than most other stock market indices. Because it is so broad-based, the Composite is one of the most widely followed and quoted major market indices.
Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index which includes the 3,000 largest companies in the U.S., based on market capitalization. As of the latest reconstitution, the average market capitalization was approximately $762.8 million; the median market capitalization was approximately $613.5 million. The largest company in the index had an approximate market capitalization of $2.0 billion and a smallest of 218.4 million.
Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.
Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.
Government bonds are guaranteed by the U. S. Government and, if held to maturity, offer a fixed rate of return and fixed principal value.
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Securities offered through Kestra Investment Services, LLC (Kestra IS), Member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Offit Advisors is not affiliated with Kestra IS or Kestra AS. Offit Advisory Services, LLC is a tax firm but neither Kestra IS nor Kestra AS provide legal or tax advice and are not Certified Public Accounting firms.For more information on the Five Star Wealth Manager and the research/selection methodology go to: www.fivestarprofessional.com. Investor Disclosures: https://bit.ly/KF-Disclosures
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