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Megan Rightnowar

My clients LOVE this financial tool!

When I sit down with new clients, I love getting to know them and learning what makes them unique. Whether they are a college student or graduated decades ago … single or married with four kids … I typically observe one common denominator: people are overwhelmed by the complexity of financial planning.

Knowing this, the easy response to them would be, “trust me, I’m a financial advisor!” But that is never my approach. I believe that building trust with my clients is something that should not be taken lightly, especially when their financial success depends on it. I do not want people to nod their head to my advice, then walk out the door without really understanding what I said. I want clients leaving curious, excited, and motivated about ways to set themselves up for success. That means they need to be provided the tools to do just that.

In the last year, I made a couple key investments in my practice. My number one favorite investment will be shared in a future post – stay tuned! My second favorite investment has been implementing a wealth management portal for my clients called Right Capital. Right Capital creates an interactive experience for my clients to link their accounts and assets in one place, view their accounts in real time, and see many “what if” scenarios that they may face in their lives — such as how retiring one year later may impact their situation. By helping them see the benefits of making sound decisions today, they are more likely to stay the course in times of uncertainty. Bonus: it’s an app on your smartphone!

Above, you can see a few screenshots of the many tools that Right Capital provides my clients. Whether they are getting started and trying to figure out how to pay off student loans (debt management), or want to know if they are on track to meet their long-term goals (retirement analysis), this platform helps them visualize the importance of proper planning. I want to make sure my clients understand my job doesn’t end at selecting investments, but also educating them in all facets of their financial picture.

My husband and I, as well as other advisors at Savage and Associates, use this tool too. Having found so much value from it, I couldn’t help but to offer it as a complimentary resource for all my clients!

Would you like to see every detail that affects your financial wellness in one spot? Maybe you are more curious about knowing if you are on track to accomplish your retirement goals? Give me a call directly at 419-725-7201 and I’d be happy to find out together.

About Megan:
Megan Rightnowar got into the financial services business almost five years ago to help individuals and families create a plan for financial freedom. She believes that money doesn’t have to control your life and she helps people live that out.  As an extension of her love for educating clients, she enjoys writing blog posts covering a myriad of financial topics. Megan also teaches finance and personal planning for pharmacy students at the University of Toledo.

*Megan Rightnowar was not provided free services or sponsored by Right Capital. All idea expressed above are her own.

Megan Savage Rightnowar
Direct: 419.725.7201
Office: 419.475.8665
655 Beaver Creek Circle Maumee, OH 43537

Securities and investment advisory services offered through Royal Alliance Associates, Inc. (RAA), member FINRA/SIPC. RAA is separately owned and other entities and/or marketing names, products or services referenced here are independent of RAA.

Is history repeating itself? Market declines continue.

Is history repeating itself? Are we in the midst of another Great Recession?

The last three weeks have been intense in the stock market. On Thursday, March 12 and Monday, March 16, we’ve seen drastic declines. It’s difficult to see the silver lining in the market when the headlines are just as terrifying as the unknown of our investment returns. We haven’t seen the markets act in this manner since 2008-09.

Are we repeating history, and at the start of a recession? The short answer: no. Let’s talk about why …

To begin, I don’t think I could write a comparison better than the one USA TODAY published last week: https://www.usatoday.com/story/money/2020/03/11/recession-heres-how-coronavirus-crises-different-2008/5012228002/

If you read their article and still want my perspective, read on!

As financial advisors, we look to different measurements to gain insight as to what the future of our economy and the market may hold. Without boring you with an economics lesson, I would like to give an overview of just two of them: gross domestic product (GDP) and the consumer price index (CPI).

With respect to our country’s GDP, consumer spending is its key driver. If we look at how the stock market ended in 2018, we were down about 20 percent. Therefore, it must mean a recession followed, right? Fortunately for everyone, that was not the case as we saw tremendous returns in 2019.

So how did the stock market get it wrong? We knew the noise of daily news was causing concerns of trade wars and a government shutdown to investors. In times of uncertainty, volatility increases. Despite the everyday investor seeing significant losses in their investment accounts, Christmas-time consumer spending was up 19 percent from the previous year! This shows us that drastic changes in the market did not translate to drastic changes in consumer behavior. Our country’s current GDP is more than 2 percent. Until we hit GDP of 1 percent, I am confident with our country’s growth.

Another key factor is understanding the CPI. If you look at the chart below from the Bureau of Labor Statistics, you can see that once the CPI reaches 4 percent, a recession is quickly on the horizon. The CPI is currently in the mid to low twos. We haven’t reached the threshold and we shouldn’t assume the coronavirus is a catalyst for a recession.


*Source: Bureau of Labor Statistics

Health care providers, scientists, and the leaders of our communities are working diligently on preventative measures and access to care for the well-being of all. There is not a country more well equipped than America. Hysteria, uncertainty, and volatility will pass. It always does, and once that happens, our country’s strong economic fundamentals will be restored just like they always do.

If you gain one takeaway from this: stay the course. What if in December 2018, you decided to get out of the market for fear of the negative markets to continue? You would have missed out on the positive returns that followed. While this uncertainty is uncomfortable, please stay safe and please choose to be hopeful.

About Megan:
Megan Rightnowar got into the financial services business almost five years ago to help individuals and families create a plan for financial freedom. She believes that money doesn’t have to control your life and she helps people live that out.  As an extension of her love for educating clients, she enjoys writing blog posts covering a myriad of financial topics. Megan also teaches finance and personal planning for pharmacy students at the University of Toledo.

*Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is no guarantee of future results.

Securities and investment services offered through Royal Alliance Associates, Inc. (RAA), member FINRA/SIPC. RAA is separately owned and other entities and/or marketing names, products or services referenced here are independent of RAA.

The coronavirus and its impact on financial markets

Photo of Chinese Man in surgical mask

As a financial advisor, a big part of my role is to educate clients on the stock market. My job doesn’t end at picking investments for my clients but to openly communicate during times of intense media headlines and market volatility. Whether it’s trade wars, a negative fourth quarter in 2018, an election year, or the current coronavirus panic, I like to make sure my clients hear from me not only when we have regularly scheduled review meetings but when their account(s) are being affected.

Yesterday I sent an email to my clients, and I thought it would be valuable to turn that email into a post that others can gain insight. The subject matter: coronavirus. But from the standpoint of its overall impact on the stock market.

As you may be aware, there has been a growing number of cases throughout China, Italy, Iran, Japan and South Korea. Consequently, the global market has experienced increased volatility. It’s no coincidence – the stock market tends to react when a widespread illness breaks out. Two days ago, February 24, 2020, the S&P 500 declined about 3.5 percent, making it the worst day in about two years.

Regardless, if your reaction to the previous paragraph was “YIKES!”, this does not come as a big shock to the financial industry. Business has been slowing overseas with products/services that come out of the affected countries. I am also going to take a wild guess that you haven’t booked your dream trip to Italy in the past few weeks. The global economy is dipping and the market is reflective of that.

We do not know how long the coronavirus will continue to spread and dominate the headlines. Likewise, predicting the end of this current market volatility is equally challenging. As a silver lining though, we can see in the chart created by Dow Jones Market Data (below) that epidemics have historically not impacted the market for a significant length of time. I think you will find relief that only one of the previous 12 epidemics resulted in negative percent changes of the S&P over a six and 12 month period.

In closing, when it comes to the obstacles we are facing in the market, I’m not fretting and it is my hope that you aren’t either. Focusing on long-term objectives when it comes to investment accounts helps provide clarity in times of uncertainty. In the meantime, I’m praying for effective treatment and prevention and I hope you’ll join me.

An advisor’s four-part strategy to saving

Megan Rightnowar

Now that we are more than one month into the new decade, let’s revisit the goals that you made: going vegan, hitting the gym, attending church, sticking to your budget, etc.  As we are “adulting,” one New Year’s resolution question I got bombarded with was, “Megan, where do I put the money I am going to start saving?”

I thought this would be a good time to share the specifics of what my husband and fellow financial advisor Nick and I do for our personal finances.  Let’s dive into our four-part strategy!

Megan working with a customer.Annual Review
We sit down once a year for an annual review of our budget. Yup, that’s it.  That’s how often I recommend that my clients review theirs, too.  Money does not have to control your life, and I believe that revisiting your budget once a year is sufficient if you do it right.

Expenses
We get our pumpkin cream cold brews from Starbucks and pull out our budget sheet (see below).  We use this to outline our recurring expenses, including our mortgage, groceries (aka, takeout … your girl can’t cook!), Pure Barre, our sweetest employee, Kerigan, etc.  We then determine if there are any expenses we can eliminate, such as the gym across the street that I have not gone to once. (WHOOPS!) Next, we estimate expenses that do not occur monthly but know will happen throughout the year like hair appointments.  Lastly, we dedicate 10 percent of our income to our church and other charities – SO many people and organizations doing awesome things in our community!

Savings
Now it’s time to add our savings to the mix.  We set aside $416.67 a month to our savings account so that each year our savings grows by $5,000.  We max out our Roth IRAs and Health Savings Accounts (HSA) with monthly contributions to each.  We then put money toward our non-retirement investment account and our LIRPs (Life Insurance Retirement Plan).  As business owners, we must factor in savings for taxes each month too – shoutout to all the 1099 business owners out there!

(Fun!) Income
At the bottom of the budget sheet, we include our take-home pay and then subtract our expenses and savings.  Drum roll please (with my calculator) … we have our discretionary income, aka our FUN money!  Sometimes we may only have $20 left and other times it may be $2,000.  This is my, “Girl, get that dress!” money.  Some months my closet is growing while other months I ask to borrow a dress from a friend (you know who you are!).  Because we have done the hard part first, we have no regrets, and can truly enjoy the money we have earned.

Now that you know our process, let’s get back to you.  Take a deep breath and start your own budget sheet.  Make a commitment to saving so you can have some FUN!  Need help with the savings piece?  Holla at your girl.

Monthly Budget WorksheetSecurities and investment advisory services offered through Royal Alliance Associates, Inc. (RAA), member FINRA/SIPC. RAA is separately owned and other entities and/or marketing names, products or services referenced here are independent of RAA.
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