Good tidings we bring! I met with a friend the other day who is going through some tough family events. When I greeted them and asked how things were, the tears began to flow and they said life was a disaster. I also had a recent experience with a friend who was starting over when most people are retiring, but their outlook was completely different. ‘I have my health, there are opportunities, I just need to dig in.’
I am not suggesting we stick our heads in the sand and ignore the tough stuff, but I am suggesting we look at the blessings each of us enjoys. Here at Harvest Financial, we have a place to go to work each day and we have great clients who share their adventures with us. We have a purpose: to provide guidance and counsel in the financial planning arena.
Certainly, markets go up and go down. Year to date the S&P 500 is up almost 27% (as of 12/10/24). In April it dropped almost 5% and then almost 7% in July. This is a great example of why we discuss your time horizon as a planning element. We offer very different advice if you need the money in one to two years compared to the advice if you have a 10–20-year time horizon. If you go back to December of 2000, you will find the S&P 500 at 1160 or showing a 421% increase to today. This includes a serious drop in 2008. Things do change with time.
Let’s look at it from a Life Insurance perspective. ‘I’m young (36) and healthy and don’t want to pay $211 per year for a $500,000 death benefit (10 year term). I’m going to wait until I’m 56 and pay $1021 per year, (assuming my health stays the same).’ He saved $4,220 (20X211), but the same policy now costs $810 per year more. In five years, he will lose the savings and he risked a change in his health. It makes sense that various types of life insurance get more expensive as you get older because the risk increases. Why do we put off important purchases?
As you move through the holidays, take the time to acknowledge the blessings and opportunities you have. Take action on those things that are important to you and your family. Get ready for an incredible 2025 and most of all, thank you for blessing our family with your business. We cherish the relationships and stories you bring each day.
May the holidays bring you relaxation and a fresh perspective for the upcoming year.