You probably know that there are lots of different ways to save \u2013 there are checking and savings accounts for cash, certificates of deposit (CDs), money market funds, individual stocks and bonds, mutual funds and exchange-traded funds (ETFs), real estate investment trusts (REITs), and more. With all these choices, and without a solid understanding of investment theory, it\u2019s easy to get lost in jargon, marketing hype and misinformation.<\/p>\n
The starting point is understanding why \u2013 unless you\u2019ve already earned or inherited more money than you\u2019ll ever possibly need \u2013 parking your savings in the perceived safety of cash is a terrible idea. Why? Well, it\u2019s true that keeping all of your savings and investments in cash ensures that they won\u2019t decline in value. But, at the same time, inflation is eroding the purchasing power of your savings. For example, if prices are going up 3% per year, today\u2019s $5 latte will cost over $12 in 30 years. So, your savings need to keep pace with, or ideally grow faster than, the rate of inflation.<\/p>\n
So, let\u2019s start by reviewing the keys to successful investing.<\/p>\n
\n
Chapter 1: Keys to Successful Investing<\/a>
Chapter 2: Investing Mistakes to Avoid<\/a>
Chapter 3: Investing in a Volatile Market<\/a>
Chapter 4: Getting Investment Advice<\/a><\/div>\n
\n
<\/a>1: Keys to Successful Investing<\/h2>\nUnderstand Your Risk Tolerance<\/h3>\n
Even if you\u2019ve only recently started saving and investing, you probably know that the stock market fluctuates \u2013 often dramatically \u2013 from day to day. These fluctuations impact the value of your investments \u2013 your savings. This can cause some investors to become very anxious, and to question their decision-making and commitment to an investment strategy.Risk tolerance is a measure of how emotionally comfortable you are with taking financial risk. For example, how much you\u2019re willing to see your portfolio\u2019s value decline for a chance to see it earn larger returns. Risk tolerance is psychological.<\/p>\n
Risk profiling is a process for finding your optimal level of investment risk by balancing the amount of investment risk required, your risk capacity and your individual risk tolerance.<\/p>\n
By knowing how comfortable you are with the variability of investment returns, you (and your advisor, if you\u2019re working with one) can make sure don\u2019t panic when the markets take one of their periodic tumbles. Bear markets \u2013 defined as when stock prices fall 20% or more from their most recent high \u2013 generally occur every 7 to 10 years. So, depending on your age, you\u2019re likely to experience five, six or even seven of these gut-wrenching episodes in your investing life.<\/p>\n
Get Your Asset Allocation Right<\/h3>\n
Asset allocation is one of the most important investing concepts. It\u2019s the strategy of dividing your investments across different asset classes \u2013 such as stocks, bonds, real estate, cash, and cash alternatives.<\/p>\n
It may seem counter-intuitive, but it\u2019s important to own investments that don\u2019t move in lock-step with each other, but instead perform differently over time. Why is that? Well, over time we do expect the stock market to go up, notwithstanding the inevitable periodic bear markets and smaller, less severe corrections. But if your portfolio includes investments that increase in value when your stocks decline, the variability of your portfolio\u2019s returns will be lower and your returns smoother.<\/p>\n
Looking back over many decades of investment history, there have been many asset classes \u2013 or categories of investments \u2013 that have demonstrated this \u201czig zag\u201d relationship, including stocks and bonds, stocks and real estate, US stocks and international stocks, large company stocks and small company stocks, developed markets stocks and emerging markets stocks, etc.<\/p>\n
Your asset allocation is the primary determinant of how risky your portfolio is. To the extent you include a higher percentage of risky asset classes \u2013 like stocks \u2013 in your portfolio, your returns will vary more from day to day, month to month, and year to year. But \u2013 over time \u2013 you can expect higher returns.<\/p>\n
Diversification<\/h3>\n
Perhaps you remember your grandmother or one of your other, older relatives telling you, \u201cDon\u2019t put all of your eggs in one basket\u201d. This adage warning against putting all your resources or efforts into one thing or place applies to investing, too.<\/p>\n
A suitable asset allocation isn\u2019t enough to ensure that you\u2019re appropriately diversified. If you and your advisor have decided that you should invest 60% of your portfolio in stocks, you shouldn\u2019t concentrate the full 60% in one or even a few stocks. Within each asset class, you should own as many securities as possible. This eliminates the risk that one underperforming investment can damage your portfolio. This broad diversification is best done with mutual funds or exchange-traded funds (\u201cETFs\u201d).<\/p>\n
When done properly, a suitable asset allocation will ensure that your portfolio is correctly positioned on the risk-return spectrum, while proper diversification across and within the asset classes you\u2019ve selected will insulate your portfolio against suffering large losses all at once.<\/p>\n
It\u2019s important to note that some company-sponsored retirement plans, offer access to only a limited number of mutual funds that represent distinct asset classes, together with a collection of so-called lifestyle or \u201ctarget date funds\u201d. There are some potential pitfalls<\/a><\/strong> to be aware of if your plan offers these investment options.<\/p>\nWhat\u2019s Your True Investment Horizon?<\/h3>\n
You know that inflation can erode the value of your savings, but also that investing can be risky, and that the fluctuations of the stock market can make for a stressful experience.<\/p>\n
As a young professional, you may well be comfortable with a relatively high allocation to stocks in your portfolio, understanding that retirement is (or at least seems) a long way off, and you won\u2019t need to tap those retirement account resources for a couple of decades.<\/p>\n
As you get closer to retirement, you may be tempted to reduce the riskiness of your portfolio, reasoning that you should focus more on preserving what you\u2019ve already accumulated rather than on continuing to grow it.<\/p>\n
It\u2019s true that \u201cthe magic of compounding<\/a><\/strong>\u201d is more powerful when you\u2019re younger and your investment horizon is longer. But even when you\u2019ve retired in your sixties or seventies, there\u2019s a real possibility that you could live several decades more, and may still need your portfolio\u2019s growth to keep up with inflation.<\/p>\nThat\u2019s why at Springwater we remind our clients that when saving for retirement, your investment horizon isn\u2019t \u201cto retirement\u201d, but \u201cthrough retirement\u201d.<\/p>\n
Rebalancing<\/h3>\n
If your portfolio is properly diversified, the investments you own will perform differently over time. After a while, your actual allocation to stocks, bonds, and other important asset classes will look different than your target, or ideal, allocation. When that time comes, your portfolio will need to be rebalanced.<\/p>\n
At its core, rebalancing is nothing more than the systematic process of selling some of those asset classes you own too much of, and buying more of those asset classes you own too little of, in order to bring your portfolio\u2019s mix back in line with the target allocation.<\/p>\n
Why rebalance? Well, a portfolio that has drifted too much from its target allocation will take on risk and return characteristics that are also (potentially very) different from your intended mix. If stocks do very well for several years in a row, and you never rebalance in the interim, your target 50% stock allocation could turn into a 75% stock allocation. And a portfolio that\u2019s 75% stocks is much riskier than one that\u2019s 50% stocks.<\/p>\n
If you think for a moment about what you\u2019re doing when you rebalance, you\u2019re \u201cbuying low and selling high\u201d. You\u2019ve almost certainly heard that clich\u00e9 before, and everyone know it\u2019s a good thing. But \u201cbuy low and sell high\u201d is the flip side of, \u201csell what has done well, and buy what has done (less well, or done) poorly\u201d. And that sounds much less appealing, right? This is why individual investors often struggle to properly manage their own portfolios in a prudent manner. They\u2019re reluctant to rebalance when it\u2019s needed, and oftentimes are inclined to do exactly what they shouldn\u2019t: buy high and sell low.<\/p>\n
Control what you can control<\/h3>\n
One of the more sobering realizations for investors is that there is really very little they can control. You can\u2019t control what the equity markets are going to do. Bull and bear markets are inevitable, but you simply can\u2019t influence their timing, size or duration. You can\u2019t control interest rates, and therefore what you\u2019ll earn on your cash and bond investments. You can\u2019t control inflation, or its impact on your purchasing power. You can\u2019t control currency exchange rates, and their influence on the global economy, interest rates, or global trade flows. The list goes on and on\u2026<\/p>\n
Since we know there\u2019s so much we can\u2019t control, it makes much more sense to focus on what we can control. We\u2019ve already reviewed the keys to successful investing; let\u2019s now look at some pitfalls to avoid.<\/p>\n
<\/a>2: Investing Mistakes to Avoid<\/h2>\nDon\u2019t Chase Performance<\/h3>\n
We know from our Keys to Successful Investing that different asset classes will perform differently over time. We may see riskier asset classes do relatively better when the economy is on an upswing, and more conservative ones do better when the economic cycle slows. Many investors, though, make the mistake of extrapolating recent past performance into the future. This so-called \u201crecency bias\u201d causes them to want to invest more into the asset classes or funds that have performed best over the past quarter or two, and to pull money out of those that have lagged. Yet we know that this action \u2013 buying high and selling low \u2013 is the exact opposite of what you should be doing.<\/p>\n
Forget Trying to Time the Market<\/h3>\n
Market timing involves trying to out-perform the market, or a particular benchmark, by trying to predict its movements and buying and selling accordingly. If this sounds difficult, it\u2019s because it is \u2013 exceedingly so.<\/p>\n
If this is a strategy that you think might have some merit, you should recognize that for it to be successful, you have to be right twice \u2013 first, when you sell, and second, when you buy back in. Industry research has shown that for a market-timing strategy to be successful, an investor would need to be right over 70% of the time, to account for fees, taxes and other costs. An annual study by Morningstar<\/a><\/strong> shows how costly bad timing by investors can be.<\/p>\nDon\u2019t Gaze at Your Crystal Ball (Stock-picking)<\/h3>\n
Stock-picking \u2013 more formally known as security selection \u2013 involves trying to identify mis-priced investments, and buying or selling them accordingly to generate superior investment returns. To understand why this strategy is a mistake, let\u2019s take a moment to consider conceptually how a security\u2019s price is determined.<\/p>\n
Every day, around the world, there are literally millions of investors \u2013 many of them full-time, experienced professionals \u2013 trading securities on markets like the New York, London and Tokyo stock exchanges. These investors have access to enormous amounts of data about the securities in which they\u2019re investing, and they use that data to help them decide what a \u201cfair\u201d price is for each. Every security\u2019s price reflects the consensus view of the investors. As new information about a company or security becomes public \u2013 say, a new product, a corporate merger, or the death of a key executive \u2013 it\u2019s quickly incorporated into the security\u2019s price by investor trading.<\/p>\n
This means that it must be new information that moves a stock\u2019s price, as investors incorporate the information into their estimate of the stock\u2019s new fair price. And, by definition, new information is unknown.<\/p>\n
So, stock-picking or security selection as a viable investment strategy is based on two premises, both of which seem highly implausible. First, that an investor can consistently identify mis-priced securities that millions of other market participants have missed. And second, that an investor can trade successfully in advance of new information, which is by definition unknowable.<\/p>\n
The better strategy, as we noted before, is to use mutual funds or ETFs to own large baskets of securities in every asset class we want, and to accept the market\u2019s return.<\/p>\n
Don\u2019t Let Your Emotions Drive Your Decisions<\/h3>\n
Emotions are an essential part of what makes us human. We achieve some of our greatest accomplishments when we let our passions drive our decision-making.<\/p>\n
But when it comes to investing, emotions can be a problem. When faced with market volatility or uncertainty, you may be tempted by your emotions to sell when markets are trending down or to buy when markets are rising.<\/p>\n
If you think you may be inclined to let your emotions impact your investment decisions, consider working with a financial advisor, and before making any decisions, discuss your fears or concerns, to help keep your emotions in check. You and your advisor can work together to keep your long-term investment strategy on track.<\/p>\n
<\/a>3: Investing in a Volatile Market<\/h2>\nAt Springwater Wealth, we frequently share with prospective new clients our view that, \u201cShort-term bumps in the road are the price you pay for long-term growth\u201d.<\/p>\n
We noted earlier that in order to ensure that your portfolio\u2019s growth keeps up with inflation, you have to take some investment risk. That risk appears in the form of variability of your returns from week to week, month to month even year to year.<\/p>\n
For example, imagine that you and your financial advisor have built a financial plan for your family. Based on your investment horizon, risk tolerance, and goals and objectives, you\u2019ve agreed that an allocation of 60% to stocks should be sufficient for your plan to succeed. Your assumption about future inflation is 2.5% per year (lower than the long-term historical rate of about 4.0%), and about investment returns, 5.5% (also lower than the long-term historical return for a similar portfolio).<\/p>\n
As someone fairly new to investing, you then ask your advisor how a 60% portfolio has performed in the recent past. Your advisor remarks that the past 20 years have been fairly turbulent for investors, and mentions the 2000-02 dot-com crash, the 2007-09 Great Recession, and the more recent Coronavirus-related market correction. But, your advisor says, the returns over this period have been roughly in line with the long-term historical average, and shares the following chart with you. What does this volatility look like?<\/p>\n
![\"Noisiness](\"https:\/\/springwaterwealth.com\/wp-content\/uploads\/2020\/11\/Noisiness-of-Returns-2000-to-2019-1024x625.jpg\" "\\"Clicking")
<\/a><\/p>\nDisclaimer: The returns shown above are not actual portfolio returns. They are simulations developed to illustrate the benefits of portfolio diversification, using historical returns for the included asset classes as represented by an index and its percentage weighting in the portfolio.<\/em><\/p>\nThese indexes are not professionally managed and are not subject to transaction costs, custodial fees, advisory fees, taxes, and other fees and expenses, the effect of which would be to reduce the portfolio returns. The historical and expected rates of return stated herein are gross of any advisory fees, brokerage commissions, or other costs. These fees will reduce the return realized by you.<\/em><\/p>\nWhile you\u2019re fairly new to investing, you\u2019re also smart, intuitive and well-educated, and you immediately notice that while your advisor\u2019s model portfolio has produced an average annual return of about 6.8% per year over the past two decades, only three of those twenty years produced a return that was anywhere near the average \u2013 2005, 2007 and 2016. All the other years delivered returns that were wildly different than the average.<\/p>\n
That\u2019s volatility.<\/p>\n
To enjoy a successful long-term investment experience, you\u2019ll need to accept that, if you want to earn returns that outpace inflation and provide the growth you need, your returns will be volatile.<\/p>\n
<\/a>4: Getting Investment Advice<\/h2>\nAs a young professional, you may not have your own financial advisor. Maybe because you don\u2019t think you need one, or because you don\u2019t think your portfolio is big enough.<\/p>\n
If you\u2019re unsure whether it would be helpful to work with an advisor, here are a few questions you should ask yourself, to help you decide whether you should be managing your own investment and retirement accounts.<\/p>\n
Do you have an aptitude for it?<\/h3>\n
It\u2019s a big responsibility to manage your investment and retirement accounts, regardless of how much you\u2019ve accumulated so far. You shouldn\u2019t offload that responsibility to someone who lacks the necessary experience, even if that person is yourself. It\u2019s true that investment management isn\u2019t literally rocket science, but it also isn\u2019t something that everyone can do well, either. If you\u2019re contemplating managing your own investments, you\u2019ll need to educate yourself about the science of investing<\/a><\/strong>, and keep up with changes in financial economics and investment theory.<\/p>\nDo you have an affinity for it?<\/h3>\n
Even if you think that you have the aptitude for managing investments, you may simply not enjoy it. If you find that you dread the time needed to manage your accounts, the results will eventually reflect it.<\/p>\n
Do you have the time for it?<\/h3>\n
Managing your portfolio isn\u2019t a full-time job, but it\u2019s much more than a hobby that will only take a few minutes every month or two. With other competing priorities \u2013 work, family, leisure \u2013 you may not want to allocate the time needed to prudently manage your accounts.<\/p>\n
Do you know how you\u2019ll react in a stock market downturn?<\/h3>\n
One of the biggest benefits of working with an advisor is that they can act as an objective filter between your emotions and your investments. Depending on your age, you should honestly reflect on how you reacted to the March 2020 stock market correction, the 2007-09 Great Recession and, possibly, the 2000-02 dot com crash. If you let your emotions influence your investment decision-making, it will be in your best interest to work with an investment adviser.<\/p>\n
If you can\u2019t definitively answer yes to all four of these questions, you\u2019ll almost certainly be better off hiring a financial advisor to help you manage your growing portfolio.<\/p>\n
You can find a qualified, experienced financial advisor online, and the best places to start your search are the websites for the National Association of Personal Financial Advisors<\/a><\/strong>, the Financial Planning Association<\/a><\/strong>, and the CFP Board<\/a>.<\/strong><\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”3.22.3″ background_color=”#0060a5″ custom_padding=”14px|0px|0|0px|false|false” global_module=”4205″][et_pb_row column_structure=”1_3,1_3,1_3″ _builder_version=”3.25″ custom_padding=”27px|0px|27px|0px|false|false”][et_pb_column type=”1_3″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”PDX Office Address” _builder_version=”3.27.4″ text_font=”Montserrat||||||||” text_text_color=”#ffffff” z_index_tablet=”500″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px”]<\/p>\n
OUR LOCATIONS<\/strong><\/p>\nOur Portland office is conveniently located off the SW Denney Road exit from Highway 217.<\/p>\n
6600 SW 105th Avenue, Suite 155
Beaverton, OR 97008<\/p>\n
Our Bay Area office is located in downtown Santa Cruz.<\/p>\n
133 Mission Street
Santa Cruz, CA 95060<\/p>\n
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[\/et_pb_text][et_pb_social_media_follow _builder_version=”4.2.2″][et_pb_social_media_follow_network social_network=”twitter” url=”https:\/\/twitter.com\/SpringwaterWM” _builder_version=”4.2.2″ background_color=”#00aced” follow_button=”off” url_new_window=”on”]Twitter[\/et_pb_social_media_follow_network][et_pb_social_media_follow_network social_network=”facebook” url=”https:\/\/www.facebook.com\/SpringwaterWealth\/” _builder_version=”4.2.2″ background_color=”#3b5998″ follow_button=”off” url_new_window=”on”]Facebook[\/et_pb_social_media_follow_network][et_pb_social_media_follow_network social_network=”linkedin” url=”https:\/\/www.linkedin.com\/company\/springwater-wealth-management\/” _builder_version=”4.2.2″ background_color=”#007bb6″ follow_button=”off” url_new_window=”on”]LinkedIn[\/et_pb_social_media_follow_network][\/et_pb_social_media_follow][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":"
A Young Professional’s Guide to Successful InvestingYour career is off to a great start, and you\u2019ve started to build a solid financial foundation for the future. You\u2019re participating in your company\u2019s 401(k) plan, and while you picked a few funds off the plan\u2019s investment menu that looked like they were good performers, you\u2019re not one […]<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":5362,"menu_order":3,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"The decision to divorce is one of the most significant decisions you will make in your lifetime. It has profound implications. It can affect your entire family (kids, parents, siblings, etc.) your friends, and where you live. It may affect your physical health, your mental health, and your career. It can also affect you financially.\r\n\r\nYou\u2019ll want to seek advice and support from a variety of experts who can support you during this challenging transition. You should work with a family law attorney to understand and address the legal aspects of divorce. You might want to consult with a family counselor\/therapist to work through the personal and family issues associated with divorce. You may wish to seek the advice of a financial planner\/advisor (Certified Financial Planner\u2122, Chartered Financial Consultant\u00ae, or Certified Divorce Financial Analyst\u00ae) who can help you navigate the many financial ramifications of divorce.\r\n\r\nWe are not attorneys and this guide is not designed to provide legal advice. We are also not licensed therapists, and, therefore, we are not trained to help you with the personal issues you will face. We are financial planners, and we hold the CFP\u00ae, ChFC\u00ae, and CDFA\u00ae credentials. We have decades of experience providing financial guidance and advice to women who are contemplating, going through, newly emerging from, and\/or living long after divorce. This guide is designed to help you prepare for, negotiate, avoid the mistakes of, and live beyond divorce.\r\n\r\n
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\r\nTable of Contents<\/strong>\r\nChapter 1: How Women Can Prepare Financially for Divorce<\/a>\r\nChapter 2: How Women Can Negotiate Financially in Divorce<\/a>\r\nChapter 3: How Women Can Thrive Financially After Divorce<\/a>\r\nChapter 4: Going through Divorce? -\u00a0 Surround yourself with Financial Experts<\/a>\r\n<\/p>\r\n
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\r\n
\r\n1: How Women Can Prepare Financially for Divorce<\/h2><\/a>\r\nMost of the biggest decisions we make in life have financial implications.\u00a0 Deciding where to go to college.\u00a0 Deciding on a career.\u00a0 Deciding where to live.\u00a0 Deciding whether or not to have children.\u00a0 All of these decisions impact you financially.\u00a0 However, none of them affects you as much as a\u00a0divorce<\/a><\/strong>.\r\n\r\nBecause women often delegate financial responsibility to their spouses, they are often not as familiar with their household finances.\u00a0 This means that they may not have thought about the financial impact of divorce on women.\u00a0 So, let\u2019s consider how you can\u00a0prepare financially<\/a><\/strong>\u00a0for divorce.\r\n\r\nA good place to start is with spending.\u00a0 What are you spending to live currently?\u00a0 What will change if you divorce?\u00a0 Presumably, either you or your spouse will move to a different living environment.\u00a0 If you remain in your current home, will you be able to pay the associated costs (mortgage\/rent, taxes, insurance, utilities, maintenance)?\u00a0 If you decide to move, what are those costs likely to be?\r\n\r\nWhat about health insurance?\u00a0 Are you on a plan that will continue after divorce?\u00a0 If not, how will you obtain coverage and what will it cost?\u00a0 Do you need life insurance?\u00a0 If so, how much and what kind and what will it cost?\r\n\r\nDo you expect to receive alimony from your ex-spouse?\u00a0 How much and for how long?\u00a0 If you have children, what about child support?\u00a0 How much child support and for how long?\u00a0 What about paying for your children\u2019s education (e.g. private school, college, grad school)?\r\n\r\nWhat financial assets (e.g. home, property, pensions, retirement accounts, investments, etc.) do you and your spouse own?\u00a0 What are the tax characteristics of these assets?\u00a0 How are they likely to be divided in a divorce?\r\n\r\nIf you have been out of the workforce, do you plan to return to work?\u00a0 Is returning to work an imperative?\u00a0 Do you have current skills, credentials, knowledge, and experience?\u00a0 If not, will you need to go back to school?\u00a0 How much would additional schooling or training cost?\u00a0 Once you are back at work, how much do you expect to earn?\r\n\r\nAs you might imagine, you will probably need advice as you think through these questions and prepare financially for divorce.\u00a0 You should talk to a family law attorney about all of the legal aspects of divorce.\u00a0 You should consult with a financial advisor (Certified Financial Planner\u2122, Chartered Financial Consultant\u00ae, or Certified Divorce Financial Analyst\u00ae) about the financial aspects.\r\n\r\nDivorce can be a very difficult experience.\u00a0 You can minimize the financial impact by preparing and planning ahead.\r\n\r\n
\r\n2: How Women Can Negotiate Financially in Divorce<\/h2><\/a>\r\nIf you have decided to divorce your spouse, there are several ways in which you can approach the process.\u00a0 If you and your spouse are on good terms and your situation can be simple (e.g., no kids, limited assets, no legal complexity, and good collaborative spirit with your partner), you might be able to \u201cdo it yourself.\u201d\u00a0 You would follow the laws in your county and state and complete the documents necessary to dissolve your marriage.\r\n\r\nIf your situation is more complex (kids, significant assets, legal complexity) and you and your spouse are on good terms as you discuss ending your marriage, then you might consider a collaborative approach.\u00a0 This process involves working with a team to negotiate an agreement to end your marriage.\u00a0 The team typically includes attorneys (one for you and one for your spouse), a divorce coach, a financial specialist (Certified Divorce Financial Analyst\u00ae), and, if you have children, a child specialist.\u00a0 The group will work together to achieve a dissolution agreement that will avoid litigation in court.\r\n\r\nIf you and your spouse are in dialogue, but struggling to come to terms on your divorce, you should consider mediation.\u00a0 This is true regardless of the complexity of your situation.\u00a0 In mediation, you and your spouse hire an attorney (or you each hire an attorney) to help you sort through and resolve the areas of conflict as you pursue the end of your marriage.\u00a0 The goal of mediation is to reach an agreement about the dissolution without going to court.\r\n\r\nIf you and your spouse are in unhealthy conflict and none of the other methods will work, then you will be forced to pursue a litigated dissolution.\u00a0 This is the least desirable approach, because it is contentious, unpleasant, public, and expensive.\r\n\r\nWhat are the financial\u00a0issues<\/strong><\/a>\u00a0that are negotiated in the dissolution of a marriage?\u00a0 Alimony (i.e. payments by one spouse to the other for the support and maintenance of the other spouse) and child support (i.e. payments by one spouse to the other to care for children and keep them in the same general standard of living they experienced before the divorce) are the most common.\r\n\r\nIf you and your spouse have accumulated assets, you will need to decide how to divide them between the two of you.\u00a0 Your home is probably the most obvious shared asset.\u00a0 Who will live in it?\u00a0 Will it be sold?\u00a0 Is there a mortgage?\u00a0 How will you divide the value of it?\r\n\r\nWhat about retirement assets?\u00a0 Do either of you have pensions, employer-sponsored retirement accounts (e.g. 401(k), 403(b), deferred compensation), IRAs, and Roth IRAs?\u00a0 What about employer stock and stock options?\u00a0 Remember that retirement assets are typically tax-deferred (i.e. the income tax due is deferred until distributed in retirement).\u00a0 That means that they are worth less than the stated value, because taxes will eventually be deducted from them.\r\n\r\nHow about other assets such as investment accounts, insurance contracts (cash value life insurance, annuities) loans to others, coin collections, intellectual property (patents, copyrights, trademarks), businesses, vehicles (cars, trucks, RVs, boats, etc.), timeshares, rental property, timeshares, raw land, collections, antiques, artwork, and household goods and furnishings?\r\n\r\nAre there debts to others (e.g. credit cards, home equity loans, personal loans, unpaid taxes)?\r\n\r\nHow do you value your assets?\u00a0 In some cases, there is a ready market that provides current values (i.e. stock in a publicly traded company).\u00a0 However, in many cases, you will need a professional appraisal of the asset.\u00a0\u00a0 You may need multiple appraisals, if you and your spouse cannot agree on an initial appraisal.\r\n\r\nAnything of any significant value will become part of the settlement process.\u00a0 Yes, there may be prior agreements between you and your spouse that segregate certain assets, but you will still need to come to an agreement about who gets what. Also, state law (e.g. community property law) may determine how assets are divided.\r\n\r\nYour objective in the financial part of the settlement process should be to identify all assets (and liabilities), obtain proper fair market value for them and determine how you would like them divided between you and your spouse.\u00a0 You may need the help of an attorney, tax professional, a financial planner (Certified Financial Planner\u2122, Chartered Financial Consultant\u00ae, or\u00a0Certified Divorce Financial Analyst\u00ae<\/strong><\/a>), and appraiser(s).\r\n\r\n
\r\n3: How Women Can Thrive Financially After Divorce<\/h2><\/a>\r\nIf you are just emerging from divorce, you are probably trying to reassemble your life.\u00a0 You may have just travelled through one of the darkest chapters in your life.\u00a0 But you made it to the other side.\u00a0 Now let\u2019s look at how you can thrive financially after divorce.\r\n\r\nThe place to start to rebuild your financial life is, perhaps curiously, to take care of yourself.\u00a0 Focus on your health.\u00a0 Make sure your diet is nutritious.\u00a0 Exercise several times each week.\u00a0 Get plenty of sleep (7- hours).\u00a0 Keep alcohol consumption to a minimum.\u00a0 Don\u2019t smoke and avoid recreational drugs and other dangerous behavior.\u00a0 Surround yourself with positive, uplifting people.\u00a0 Practice your religion or meditate or do whatever you do to nurture your inner self.\r\n\r\nOnce you are feeling better about yourself, you can start thinking about your financial life.\u00a0 Start with an assessment.\u00a0 What are your assets and liabilities?\u00a0 These make up your balance sheet and the difference between the two of them is your net worth.\u00a0 What are your sources of income?\u00a0 Perhaps you are working or soon will be working.\u00a0 How much will you earn?\u00a0 Are you receiving alimony?\u00a0 How much and for how long?\u00a0 What about child support?\u00a0 Will you have other income from, say, rental property?\r\n\r\nNow that you know how much income you will have coming in, let\u2019s consider your expenses.\u00a0 Do you know what you were spending before you got divorced?\u00a0 How will that change?\u00a0 Did you move?\u00a0\u00a0 What are your fixed costs for housing (mortgage\/rent, tax), utilities, insurances (personal, property, and casualty), cell phone, cable TV and internet, gym membership, groceries, transportation, entertainment, etc.?\u00a0 What about your variable expenses for vacations, home repair and maintenance (e.g. appliances), vehicle replacement?\u00a0 The more precise you are in identifying and projecting your expenses, the more confident you will be about your financial future.\r\n\r\nBefore we go any further, let\u2019s step back and acknowledge that you should be saving for any large future expenditures that are not in your core living expenses.\u00a0 That means saving for vacations, replacement vehicles, your children\u2019s education, and, above all, retirement.\u00a0 The best way to organize your finances is to save first and spend second.\u00a0 Most people spend first and save second, if there is anything left to save and too often there isn\u2019t.\r\n\r\nWhat do you do if your income is not big enough to save the way you need to and spend the way you want to?\u00a0 Well, you will have to make some tough decisions.\u00a0 What\u2019s most important to you?\u00a0 Do you need to live in the house you shared with your ex-spouse?\u00a0 Do you need to take as many vacations?\u00a0 Can you trim your cable TV package?\u00a0 Could you change jobs and earn more?\u00a0 What about taking on a second part-time job?\u00a0\u00a0 Try to find ways to reduce your expenses and\/or increase your income, so that you can save what you need to save and spend what you want to spend, but saving is your priority so don\u2019t compromise it.\r\n\r\nIn the wake of a divorce, there are some other tasks you need to take in order to be financially secure.\u00a0 You should change the beneficiary designations on your retirement accounts, your insurance policies and your \u201ctransfer-on-death\u201d accounts.\u00a0 You should check in with the\u00a0Social Security<\/a><\/strong>\u00a0Administration and clarify your benefits.\u00a0 If you were married for ten or more years, you will qualify for benefits based on your ex-spouse\u2019s record and those benefits may be larger than your own. (You receive the larger of the two.)\u00a0 If there are mistakes in your earnings record, you can correct them.\u00a0 You should establish an emergency fund that contains enough cash to pay for a large, unexpected expense or pay your basic, fixed living expenses for 3-6 months if you become unemployed for some reason.\u00a0 You should update your\u00a0estate plan<\/strong><\/a>\u00a0(will, durable power of attorney, and health directive).\r\n\r\nAs you might imagine, to work through and accomplish these financial tasks, you may need assistance from a financial advisor (Certified Financial Planner\u2122, Chartered Financial Consultant\u00ae, or Certified Divorce Financial Analyst\u00ae), insurance agents, tax professional, and estate planning attorney.\r\n\r\nThe key to thriving financially after divorce is developing a sound plan and following it.\r\n\r\n
\r\n4: Going through Divorce? -\u00a0 Surround yourself with Financial Experts<\/h2><\/a>\r\nThere are a lot of issues to consider as you go through a divorce.\u00a0 They fall into categories: legal,\u00a0financial<\/a><\/strong>, tax, and investment.\u00a0 Let\u2019s consider the issues and who can help you navigate them.\r\n\r\nUnless you plan to execute your own divorce (i.e. do-it-yourself) in your legal jurisdiction (state and county), you will need to hire an attorney who can walk you through the process of dissolving your marriage.\u00a0 While most attorneys are capable of guiding you, we suggest you work with a family law attorney who focuses on divorce.\u00a0 You can find family law attorneys by searching on your state bar\u2019s website, asking other professionals for a referral, or doing a simple internet search.\u00a0 You should interview 2-3 and select the person who is most qualified and with whom you have the best personal rapport.\r\n\r\nIf you are likely to receive alimony from your ex-spouse, your divorce attorney will help you negotiate an amount and a payment period that is fair.\u00a0 If you have children and expect to receive child support, your attorney will also negotiate those payments.\r\n\r\nDivorce results in a tangle of financial issues.\u00a0 What are the marital assets, what are they worth and how will they be divided?\u00a0 How much income will you have after your divorce?\u00a0 Will that be enough to support you?\u00a0 What will you do for insurance?\u00a0 How will you save for retirement?\u00a0 What will be your Social Security benefits?\u00a0 What happens if your ex dies and your alimony and child support end?\r\n\r\nThere are various financial advisors who can help you with the different financial issues you will encounter in your divorce.\u00a0 A financial advisor can help you with many aspects of\u00a0personal finance<\/a><\/strong>\u00a0<\/strong>(budgeting, insurance, taxes, estate planning, investments, education funding, retirement planning).\u00a0 Look for a fee only planner who does not sell financial products and earn commissions.\u00a0 The Certified Financial Planner\u2122 and Chartered Financial Consultant\u00ae credentials are the most respected credentials held by financial planners.\u00a0 If you feel you need particular expertise in the area of divorce financial planning, look for a\u00a0Certified Divorce Financial Analyst\u00ae<\/a><\/strong>.\u00a0 You can search for a CFP\u00ae at the\u00a0CFP Board website<\/strong><\/a>\u00a0and a CDFA\u00ae on the\u00a0Institute for Divorce Financial Analysts website<\/a><\/strong>. The American College awards the ChFC\u00ae designation, but there is no way to directly search for one on its website.\r\n\r\nIf you have difficult-to-value assets, you should hire an appraiser.\u00a0 The American Society of Appraisers confers\u00a0four appraisal credentials<\/a><\/strong>\u00a0<\/strong>related to the subject in need of appraising.\u00a0 There is a \u201cFind an appraiser\u201d tool on its\u00a0website<\/a><\/strong>.\u00a0\u00a0\u00a0 If you are trying to value a business, consider hiring an accountant with the Accredited Business Valuation (ABV) credential.\u00a0 There is a credential directory tool on the\u00a0AICPA website<\/a>.<\/strong>\r\n\r\nIf you need tax-specific advice, work with a Certified Public Accountant (CPA) or an Enrolled Agent (EA).\u00a0 The state society of Certified Public Accountants will often have a tool on its website that allows a consumer to find a CPA.\u00a0 You can search for an enrolled agent on the National Association of Enrolled Agents\u00a0website<\/a><\/strong>.\r\n\r\nWhat about insurance?\u00a0 If you need help with personal insurance including life insurance, disability insurance, annuities and long term care insurance, consider working with a Chartered Life Underwriter (CLU\u00ae).\u00a0 The American College bestows the CLU credential, but there is no search tool on its website to find a CLU.\u00a0 If you need help with health insurance, consider working with a Chartered Healthcare Consultant\u00ae (ChHC\u00ae), Registered Health Underwriter (RHU\u00ae) or Registered Employee Benefits Consultant (REBC\u00ae).\u00a0 All of these credentials are administered by the National Association of Health Underwriters, and there is a \u201cfind an agent\u201d tool on its\u00a0website<\/strong><\/a>.\r\n\r\nIf you need assistance with your investments, there are two credentials for which you should look.\u00a0 The Certified Financial Planner\u2122 (CFP\u00ae) and the Chartered Financial Analyst (CFA) designations.\u00a0 The latter can be found on the CFA Institute website on their\u00a0member directory<\/strong><\/a>.\r\n\r\nYou will need to update your estate plan. While most attorneys are capable of doing this, consider working with an estate planning attorney.\u00a0 These attorneys work more narrowly on estate planning matters.\u00a0 As with family law attorneys, you can find an estate planning attorney on your state bar\u2019s website.\r\n\r\nFor all of these professionals, you can, of course, ask for referrals from other friends, family members, and other professionals you know or conduct a search on the internet.\u00a0 It is always wise to interview 2-3 experts before selecting one to serve you.\r\n\r\nDivorce is a complex process with many and varied financial consequences.\u00a0 Surround yourself with experts to avoid pitfalls and achieve the very best outcomes.","_et_gb_content_width":"","_mi_skip_tracking":false,"footnotes":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/pages\/5603"}],"collection":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/comments?post=5603"}],"version-history":[{"count":0,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/pages\/5603\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/pages\/5362"}],"wp:attachment":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/media?parent=5603"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
What\u2019s Your True Investment Horizon?<\/h3>\n
You know that inflation can erode the value of your savings, but also that investing can be risky, and that the fluctuations of the stock market can make for a stressful experience.<\/p>\n
As a young professional, you may well be comfortable with a relatively high allocation to stocks in your portfolio, understanding that retirement is (or at least seems) a long way off, and you won\u2019t need to tap those retirement account resources for a couple of decades.<\/p>\n
As you get closer to retirement, you may be tempted to reduce the riskiness of your portfolio, reasoning that you should focus more on preserving what you\u2019ve already accumulated rather than on continuing to grow it.<\/p>\n
It\u2019s true that \u201cthe magic of compounding<\/a><\/strong>\u201d is more powerful when you\u2019re younger and your investment horizon is longer. But even when you\u2019ve retired in your sixties or seventies, there\u2019s a real possibility that you could live several decades more, and may still need your portfolio\u2019s growth to keep up with inflation.<\/p>\n That\u2019s why at Springwater we remind our clients that when saving for retirement, your investment horizon isn\u2019t \u201cto retirement\u201d, but \u201cthrough retirement\u201d.<\/p>\n If your portfolio is properly diversified, the investments you own will perform differently over time. After a while, your actual allocation to stocks, bonds, and other important asset classes will look different than your target, or ideal, allocation. When that time comes, your portfolio will need to be rebalanced.<\/p>\n At its core, rebalancing is nothing more than the systematic process of selling some of those asset classes you own too much of, and buying more of those asset classes you own too little of, in order to bring your portfolio\u2019s mix back in line with the target allocation.<\/p>\n Why rebalance? Well, a portfolio that has drifted too much from its target allocation will take on risk and return characteristics that are also (potentially very) different from your intended mix. If stocks do very well for several years in a row, and you never rebalance in the interim, your target 50% stock allocation could turn into a 75% stock allocation. And a portfolio that\u2019s 75% stocks is much riskier than one that\u2019s 50% stocks.<\/p>\n If you think for a moment about what you\u2019re doing when you rebalance, you\u2019re \u201cbuying low and selling high\u201d. You\u2019ve almost certainly heard that clich\u00e9 before, and everyone know it\u2019s a good thing. But \u201cbuy low and sell high\u201d is the flip side of, \u201csell what has done well, and buy what has done (less well, or done) poorly\u201d. And that sounds much less appealing, right? This is why individual investors often struggle to properly manage their own portfolios in a prudent manner. They\u2019re reluctant to rebalance when it\u2019s needed, and oftentimes are inclined to do exactly what they shouldn\u2019t: buy high and sell low.<\/p>\n One of the more sobering realizations for investors is that there is really very little they can control. You can\u2019t control what the equity markets are going to do. Bull and bear markets are inevitable, but you simply can\u2019t influence their timing, size or duration. You can\u2019t control interest rates, and therefore what you\u2019ll earn on your cash and bond investments. You can\u2019t control inflation, or its impact on your purchasing power. You can\u2019t control currency exchange rates, and their influence on the global economy, interest rates, or global trade flows. The list goes on and on\u2026<\/p>\n Since we know there\u2019s so much we can\u2019t control, it makes much more sense to focus on what we can control. We\u2019ve already reviewed the keys to successful investing; let\u2019s now look at some pitfalls to avoid.<\/p>\n We know from our Keys to Successful Investing that different asset classes will perform differently over time. We may see riskier asset classes do relatively better when the economy is on an upswing, and more conservative ones do better when the economic cycle slows. Many investors, though, make the mistake of extrapolating recent past performance into the future. This so-called \u201crecency bias\u201d causes them to want to invest more into the asset classes or funds that have performed best over the past quarter or two, and to pull money out of those that have lagged. Yet we know that this action \u2013 buying high and selling low \u2013 is the exact opposite of what you should be doing.<\/p>\n Market timing involves trying to out-perform the market, or a particular benchmark, by trying to predict its movements and buying and selling accordingly. If this sounds difficult, it\u2019s because it is \u2013 exceedingly so.<\/p>\n If this is a strategy that you think might have some merit, you should recognize that for it to be successful, you have to be right twice \u2013 first, when you sell, and second, when you buy back in. Industry research has shown that for a market-timing strategy to be successful, an investor would need to be right over 70% of the time, to account for fees, taxes and other costs. An annual study by Morningstar<\/a><\/strong> shows how costly bad timing by investors can be.<\/p>\n Stock-picking \u2013 more formally known as security selection \u2013 involves trying to identify mis-priced investments, and buying or selling them accordingly to generate superior investment returns. To understand why this strategy is a mistake, let\u2019s take a moment to consider conceptually how a security\u2019s price is determined.<\/p>\n Every day, around the world, there are literally millions of investors \u2013 many of them full-time, experienced professionals \u2013 trading securities on markets like the New York, London and Tokyo stock exchanges. These investors have access to enormous amounts of data about the securities in which they\u2019re investing, and they use that data to help them decide what a \u201cfair\u201d price is for each. Every security\u2019s price reflects the consensus view of the investors. As new information about a company or security becomes public \u2013 say, a new product, a corporate merger, or the death of a key executive \u2013 it\u2019s quickly incorporated into the security\u2019s price by investor trading.<\/p>\n This means that it must be new information that moves a stock\u2019s price, as investors incorporate the information into their estimate of the stock\u2019s new fair price. And, by definition, new information is unknown.<\/p>\n So, stock-picking or security selection as a viable investment strategy is based on two premises, both of which seem highly implausible. First, that an investor can consistently identify mis-priced securities that millions of other market participants have missed. And second, that an investor can trade successfully in advance of new information, which is by definition unknowable.<\/p>\n The better strategy, as we noted before, is to use mutual funds or ETFs to own large baskets of securities in every asset class we want, and to accept the market\u2019s return.<\/p>\n Emotions are an essential part of what makes us human. We achieve some of our greatest accomplishments when we let our passions drive our decision-making.<\/p>\n But when it comes to investing, emotions can be a problem. When faced with market volatility or uncertainty, you may be tempted by your emotions to sell when markets are trending down or to buy when markets are rising.<\/p>\n If you think you may be inclined to let your emotions impact your investment decisions, consider working with a financial advisor, and before making any decisions, discuss your fears or concerns, to help keep your emotions in check. You and your advisor can work together to keep your long-term investment strategy on track.<\/p>\n At Springwater Wealth, we frequently share with prospective new clients our view that, \u201cShort-term bumps in the road are the price you pay for long-term growth\u201d.<\/p>\n We noted earlier that in order to ensure that your portfolio\u2019s growth keeps up with inflation, you have to take some investment risk. That risk appears in the form of variability of your returns from week to week, month to month even year to year.<\/p>\n For example, imagine that you and your financial advisor have built a financial plan for your family. Based on your investment horizon, risk tolerance, and goals and objectives, you\u2019ve agreed that an allocation of 60% to stocks should be sufficient for your plan to succeed. Your assumption about future inflation is 2.5% per year (lower than the long-term historical rate of about 4.0%), and about investment returns, 5.5% (also lower than the long-term historical return for a similar portfolio).<\/p>\n As someone fairly new to investing, you then ask your advisor how a 60% portfolio has performed in the recent past. Your advisor remarks that the past 20 years have been fairly turbulent for investors, and mentions the 2000-02 dot-com crash, the 2007-09 Great Recession, and the more recent Coronavirus-related market correction. But, your advisor says, the returns over this period have been roughly in line with the long-term historical average, and shares the following chart with you. What does this volatility look like?<\/p>\n Disclaimer: The returns shown above are not actual portfolio returns. They are simulations developed to illustrate the benefits of portfolio diversification, using historical returns for the included asset classes as represented by an index and its percentage weighting in the portfolio.<\/em><\/p>\n These indexes are not professionally managed and are not subject to transaction costs, custodial fees, advisory fees, taxes, and other fees and expenses, the effect of which would be to reduce the portfolio returns. The historical and expected rates of return stated herein are gross of any advisory fees, brokerage commissions, or other costs. These fees will reduce the return realized by you.<\/em><\/p>\n While you\u2019re fairly new to investing, you\u2019re also smart, intuitive and well-educated, and you immediately notice that while your advisor\u2019s model portfolio has produced an average annual return of about 6.8% per year over the past two decades, only three of those twenty years produced a return that was anywhere near the average \u2013 2005, 2007 and 2016. All the other years delivered returns that were wildly different than the average.<\/p>\n That\u2019s volatility.<\/p>\n To enjoy a successful long-term investment experience, you\u2019ll need to accept that, if you want to earn returns that outpace inflation and provide the growth you need, your returns will be volatile.<\/p>\n As a young professional, you may not have your own financial advisor. Maybe because you don\u2019t think you need one, or because you don\u2019t think your portfolio is big enough.<\/p>\n If you\u2019re unsure whether it would be helpful to work with an advisor, here are a few questions you should ask yourself, to help you decide whether you should be managing your own investment and retirement accounts.<\/p>\n It\u2019s a big responsibility to manage your investment and retirement accounts, regardless of how much you\u2019ve accumulated so far. You shouldn\u2019t offload that responsibility to someone who lacks the necessary experience, even if that person is yourself. It\u2019s true that investment management isn\u2019t literally rocket science, but it also isn\u2019t something that everyone can do well, either. If you\u2019re contemplating managing your own investments, you\u2019ll need to educate yourself about the science of investing<\/a><\/strong>, and keep up with changes in financial economics and investment theory.<\/p>\n Even if you think that you have the aptitude for managing investments, you may simply not enjoy it. If you find that you dread the time needed to manage your accounts, the results will eventually reflect it.<\/p>\n Managing your portfolio isn\u2019t a full-time job, but it\u2019s much more than a hobby that will only take a few minutes every month or two. With other competing priorities \u2013 work, family, leisure \u2013 you may not want to allocate the time needed to prudently manage your accounts.<\/p>\n One of the biggest benefits of working with an advisor is that they can act as an objective filter between your emotions and your investments. Depending on your age, you should honestly reflect on how you reacted to the March 2020 stock market correction, the 2007-09 Great Recession and, possibly, the 2000-02 dot com crash. If you let your emotions influence your investment decision-making, it will be in your best interest to work with an investment adviser.<\/p>\n If you can\u2019t definitively answer yes to all four of these questions, you\u2019ll almost certainly be better off hiring a financial advisor to help you manage your growing portfolio.<\/p>\n You can find a qualified, experienced financial advisor online, and the best places to start your search are the websites for the National Association of Personal Financial Advisors<\/a><\/strong>, the Financial Planning Association<\/a><\/strong>, and the CFP Board<\/a>.<\/strong><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”3.22.3″ background_color=”#0060a5″ custom_padding=”14px|0px|0|0px|false|false” global_module=”4205″][et_pb_row column_structure=”1_3,1_3,1_3″ _builder_version=”3.25″ custom_padding=”27px|0px|27px|0px|false|false”][et_pb_column type=”1_3″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”PDX Office Address” _builder_version=”3.27.4″ text_font=”Montserrat||||||||” text_text_color=”#ffffff” z_index_tablet=”500″ text_text_shadow_horizontal_length_tablet=”0px” text_text_shadow_vertical_length_tablet=”0px” text_text_shadow_blur_strength_tablet=”1px” link_text_shadow_horizontal_length_tablet=”0px” link_text_shadow_vertical_length_tablet=”0px” link_text_shadow_blur_strength_tablet=”1px” ul_text_shadow_horizontal_length_tablet=”0px” ul_text_shadow_vertical_length_tablet=”0px” ul_text_shadow_blur_strength_tablet=”1px” ol_text_shadow_horizontal_length_tablet=”0px” ol_text_shadow_vertical_length_tablet=”0px” ol_text_shadow_blur_strength_tablet=”1px” quote_text_shadow_horizontal_length_tablet=”0px” quote_text_shadow_vertical_length_tablet=”0px” quote_text_shadow_blur_strength_tablet=”1px” header_text_shadow_horizontal_length_tablet=”0px” header_text_shadow_vertical_length_tablet=”0px” header_text_shadow_blur_strength_tablet=”1px” header_2_text_shadow_horizontal_length_tablet=”0px” header_2_text_shadow_vertical_length_tablet=”0px” header_2_text_shadow_blur_strength_tablet=”1px” header_3_text_shadow_horizontal_length_tablet=”0px” header_3_text_shadow_vertical_length_tablet=”0px” header_3_text_shadow_blur_strength_tablet=”1px” header_4_text_shadow_horizontal_length_tablet=”0px” header_4_text_shadow_vertical_length_tablet=”0px” header_4_text_shadow_blur_strength_tablet=”1px” header_5_text_shadow_horizontal_length_tablet=”0px” header_5_text_shadow_vertical_length_tablet=”0px” header_5_text_shadow_blur_strength_tablet=”1px” header_6_text_shadow_horizontal_length_tablet=”0px” header_6_text_shadow_vertical_length_tablet=”0px” header_6_text_shadow_blur_strength_tablet=”1px” box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px”]<\/p>\n OUR LOCATIONS<\/strong><\/p>\n Our Portland office is conveniently located off the SW Denney Road exit from Highway 217.<\/p>\n 6600 SW 105th Avenue, Suite 155 Our Bay Area office is located in downtown Santa Cruz.<\/p>\n 133 Mission Street [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text admin_label=”Schedule Consultation” _builder_version=”3.27.4″ text_font=”Montserrat||||||||” text_text_color=”#ffffff”]<\/p>\n SCHEDULE A FREE CONSULTATION<\/strong><\/p>\n If you’d like to learn more about how we can help you build a solid plan for your future, let us know by filling out our contact form. Or give us a call at (888) 998-4796.<\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_text _builder_version=”3.27.4″ text_font=”Montserrat||||||||” text_text_color=”#ffffff”]<\/p>\n CONNECT WITH US<\/strong><\/p>\n Want to keep up with the latest news from Springwater? Follow us across our social networks.<\/p>\n [\/et_pb_text][et_pb_social_media_follow _builder_version=”4.2.2″][et_pb_social_media_follow_network social_network=”twitter” url=”https:\/\/twitter.com\/SpringwaterWM” _builder_version=”4.2.2″ background_color=”#00aced” follow_button=”off” url_new_window=”on”]Twitter[\/et_pb_social_media_follow_network][et_pb_social_media_follow_network social_network=”facebook” url=”https:\/\/www.facebook.com\/SpringwaterWealth\/” _builder_version=”4.2.2″ background_color=”#3b5998″ follow_button=”off” url_new_window=”on”]Facebook[\/et_pb_social_media_follow_network][et_pb_social_media_follow_network social_network=”linkedin” url=”https:\/\/www.linkedin.com\/company\/springwater-wealth-management\/” _builder_version=”4.2.2″ background_color=”#007bb6″ follow_button=”off” url_new_window=”on”]LinkedIn[\/et_pb_social_media_follow_network][\/et_pb_social_media_follow][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" A Young Professional’s Guide to Successful InvestingYour career is off to a great start, and you\u2019ve started to build a solid financial foundation for the future. You\u2019re participating in your company\u2019s 401(k) plan, and while you picked a few funds off the plan\u2019s investment menu that looked like they were good performers, you\u2019re not one […]<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":5362,"menu_order":3,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"The decision to divorce is one of the most significant decisions you will make in your lifetime. It has profound implications. It can affect your entire family (kids, parents, siblings, etc.) your friends, and where you live. It may affect your physical health, your mental health, and your career. It can also affect you financially.\r\n\r\nYou\u2019ll want to seek advice and support from a variety of experts who can support you during this challenging transition. You should work with a family law attorney to understand and address the legal aspects of divorce. You might want to consult with a family counselor\/therapist to work through the personal and family issues associated with divorce. You may wish to seek the advice of a financial planner\/advisor (Certified Financial Planner\u2122, Chartered Financial Consultant\u00ae, or Certified Divorce Financial Analyst\u00ae) who can help you navigate the many financial ramifications of divorce.\r\n\r\nWe are not attorneys and this guide is not designed to provide legal advice. We are also not licensed therapists, and, therefore, we are not trained to help you with the personal issues you will face. We are financial planners, and we hold the CFP\u00ae, ChFC\u00ae, and CDFA\u00ae credentials. We have decades of experience providing financial guidance and advice to women who are contemplating, going through, newly emerging from, and\/or living long after divorce. This guide is designed to help you prepare for, negotiate, avoid the mistakes of, and live beyond divorce.\r\n\r\n Table of Contents<\/strong>\r\nChapter 1: How Women Can Prepare Financially for Divorce<\/a>\r\nChapter 2: How Women Can Negotiate Financially in Divorce<\/a>\r\nChapter 3: How Women Can Thrive Financially After Divorce<\/a>\r\nChapter 4: Going through Divorce? -\u00a0 Surround yourself with Financial Experts<\/a>\r\n<\/p>\r\nRebalancing<\/h3>\n
Control what you can control<\/h3>\n
<\/a>2: Investing Mistakes to Avoid<\/h2>\n
Don\u2019t Chase Performance<\/h3>\n
Forget Trying to Time the Market<\/h3>\n
Don\u2019t Gaze at Your Crystal Ball (Stock-picking)<\/h3>\n
Don\u2019t Let Your Emotions Drive Your Decisions<\/h3>\n
<\/a>3: Investing in a Volatile Market<\/h2>\n
<\/a><\/p>\n<\/a>4: Getting Investment Advice<\/h2>\n
Do you have an aptitude for it?<\/h3>\n
Do you have an affinity for it?<\/h3>\n
Do you have the time for it?<\/h3>\n
Do you know how you\u2019ll react in a stock market downturn?<\/h3>\n
Beaverton, OR 97008<\/p>\n
Santa Cruz, CA 95060<\/p>\n
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\r\n1: How Women Can Prepare Financially for Divorce<\/h2><\/a>\r\nMost of the biggest decisions we make in life have financial implications.\u00a0 Deciding where to go to college.\u00a0 Deciding on a career.\u00a0 Deciding where to live.\u00a0 Deciding whether or not to have children.\u00a0 All of these decisions impact you financially.\u00a0 However, none of them affects you as much as a\u00a0divorce<\/a><\/strong>.\r\n\r\nBecause women often delegate financial responsibility to their spouses, they are often not as familiar with their household finances.\u00a0 This means that they may not have thought about the financial impact of divorce on women.\u00a0 So, let\u2019s consider how you can\u00a0prepare financially<\/a><\/strong>\u00a0for divorce.\r\n\r\nA good place to start is with spending.\u00a0 What are you spending to live currently?\u00a0 What will change if you divorce?\u00a0 Presumably, either you or your spouse will move to a different living environment.\u00a0 If you remain in your current home, will you be able to pay the associated costs (mortgage\/rent, taxes, insurance, utilities, maintenance)?\u00a0 If you decide to move, what are those costs likely to be?\r\n\r\nWhat about health insurance?\u00a0 Are you on a plan that will continue after divorce?\u00a0 If not, how will you obtain coverage and what will it cost?\u00a0 Do you need life insurance?\u00a0 If so, how much and what kind and what will it cost?\r\n\r\nDo you expect to receive alimony from your ex-spouse?\u00a0 How much and for how long?\u00a0 If you have children, what about child support?\u00a0 How much child support and for how long?\u00a0 What about paying for your children\u2019s education (e.g. private school, college, grad school)?\r\n\r\nWhat financial assets (e.g. home, property, pensions, retirement accounts, investments, etc.) do you and your spouse own?\u00a0 What are the tax characteristics of these assets?\u00a0 How are they likely to be divided in a divorce?\r\n\r\nIf you have been out of the workforce, do you plan to return to work?\u00a0 Is returning to work an imperative?\u00a0 Do you have current skills, credentials, knowledge, and experience?\u00a0 If not, will you need to go back to school?\u00a0 How much would additional schooling or training cost?\u00a0 Once you are back at work, how much do you expect to earn?\r\n\r\nAs you might imagine, you will probably need advice as you think through these questions and prepare financially for divorce.\u00a0 You should talk to a family law attorney about all of the legal aspects of divorce.\u00a0 You should consult with a financial advisor (Certified Financial Planner\u2122, Chartered Financial Consultant\u00ae, or Certified Divorce Financial Analyst\u00ae) about the financial aspects.\r\n\r\nDivorce can be a very difficult experience.\u00a0 You can minimize the financial impact by preparing and planning ahead.\r\n\r\n
\r\n2: How Women Can Negotiate Financially in Divorce<\/h2><\/a>\r\nIf you have decided to divorce your spouse, there are several ways in which you can approach the process.\u00a0 If you and your spouse are on good terms and your situation can be simple (e.g., no kids, limited assets, no legal complexity, and good collaborative spirit with your partner), you might be able to \u201cdo it yourself.\u201d\u00a0 You would follow the laws in your county and state and complete the documents necessary to dissolve your marriage.\r\n\r\nIf your situation is more complex (kids, significant assets, legal complexity) and you and your spouse are on good terms as you discuss ending your marriage, then you might consider a collaborative approach.\u00a0 This process involves working with a team to negotiate an agreement to end your marriage.\u00a0 The team typically includes attorneys (one for you and one for your spouse), a divorce coach, a financial specialist (Certified Divorce Financial Analyst\u00ae), and, if you have children, a child specialist.\u00a0 The group will work together to achieve a dissolution agreement that will avoid litigation in court.\r\n\r\nIf you and your spouse are in dialogue, but struggling to come to terms on your divorce, you should consider mediation.\u00a0 This is true regardless of the complexity of your situation.\u00a0 In mediation, you and your spouse hire an attorney (or you each hire an attorney) to help you sort through and resolve the areas of conflict as you pursue the end of your marriage.\u00a0 The goal of mediation is to reach an agreement about the dissolution without going to court.\r\n\r\nIf you and your spouse are in unhealthy conflict and none of the other methods will work, then you will be forced to pursue a litigated dissolution.\u00a0 This is the least desirable approach, because it is contentious, unpleasant, public, and expensive.\r\n\r\nWhat are the financial\u00a0issues<\/strong><\/a>\u00a0that are negotiated in the dissolution of a marriage?\u00a0 Alimony (i.e. payments by one spouse to the other for the support and maintenance of the other spouse) and child support (i.e. payments by one spouse to the other to care for children and keep them in the same general standard of living they experienced before the divorce) are the most common.\r\n\r\nIf you and your spouse have accumulated assets, you will need to decide how to divide them between the two of you.\u00a0 Your home is probably the most obvious shared asset.\u00a0 Who will live in it?\u00a0 Will it be sold?\u00a0 Is there a mortgage?\u00a0 How will you divide the value of it?\r\n\r\nWhat about retirement assets?\u00a0 Do either of you have pensions, employer-sponsored retirement accounts (e.g. 401(k), 403(b), deferred compensation), IRAs, and Roth IRAs?\u00a0 What about employer stock and stock options?\u00a0 Remember that retirement assets are typically tax-deferred (i.e. the income tax due is deferred until distributed in retirement).\u00a0 That means that they are worth less than the stated value, because taxes will eventually be deducted from them.\r\n\r\nHow about other assets such as investment accounts, insurance contracts (cash value life insurance, annuities) loans to others, coin collections, intellectual property (patents, copyrights, trademarks), businesses, vehicles (cars, trucks, RVs, boats, etc.), timeshares, rental property, timeshares, raw land, collections, antiques, artwork, and household goods and furnishings?\r\n\r\nAre there debts to others (e.g. credit cards, home equity loans, personal loans, unpaid taxes)?\r\n\r\nHow do you value your assets?\u00a0 In some cases, there is a ready market that provides current values (i.e. stock in a publicly traded company).\u00a0 However, in many cases, you will need a professional appraisal of the asset.\u00a0\u00a0 You may need multiple appraisals, if you and your spouse cannot agree on an initial appraisal.\r\n\r\nAnything of any significant value will become part of the settlement process.\u00a0 Yes, there may be prior agreements between you and your spouse that segregate certain assets, but you will still need to come to an agreement about who gets what. Also, state law (e.g. community property law) may determine how assets are divided.\r\n\r\nYour objective in the financial part of the settlement process should be to identify all assets (and liabilities), obtain proper fair market value for them and determine how you would like them divided between you and your spouse.\u00a0 You may need the help of an attorney, tax professional, a financial planner (Certified Financial Planner\u2122, Chartered Financial Consultant\u00ae, or\u00a0Certified Divorce Financial Analyst\u00ae<\/strong><\/a>), and appraiser(s).\r\n\r\n
\r\n3: How Women Can Thrive Financially After Divorce<\/h2><\/a>\r\nIf you are just emerging from divorce, you are probably trying to reassemble your life.\u00a0 You may have just travelled through one of the darkest chapters in your life.\u00a0 But you made it to the other side.\u00a0 Now let\u2019s look at how you can thrive financially after divorce.\r\n\r\nThe place to start to rebuild your financial life is, perhaps curiously, to take care of yourself.\u00a0 Focus on your health.\u00a0 Make sure your diet is nutritious.\u00a0 Exercise several times each week.\u00a0 Get plenty of sleep (7- hours).\u00a0 Keep alcohol consumption to a minimum.\u00a0 Don\u2019t smoke and avoid recreational drugs and other dangerous behavior.\u00a0 Surround yourself with positive, uplifting people.\u00a0 Practice your religion or meditate or do whatever you do to nurture your inner self.\r\n\r\nOnce you are feeling better about yourself, you can start thinking about your financial life.\u00a0 Start with an assessment.\u00a0 What are your assets and liabilities?\u00a0 These make up your balance sheet and the difference between the two of them is your net worth.\u00a0 What are your sources of income?\u00a0 Perhaps you are working or soon will be working.\u00a0 How much will you earn?\u00a0 Are you receiving alimony?\u00a0 How much and for how long?\u00a0 What about child support?\u00a0 Will you have other income from, say, rental property?\r\n\r\nNow that you know how much income you will have coming in, let\u2019s consider your expenses.\u00a0 Do you know what you were spending before you got divorced?\u00a0 How will that change?\u00a0 Did you move?\u00a0\u00a0 What are your fixed costs for housing (mortgage\/rent, tax), utilities, insurances (personal, property, and casualty), cell phone, cable TV and internet, gym membership, groceries, transportation, entertainment, etc.?\u00a0 What about your variable expenses for vacations, home repair and maintenance (e.g. appliances), vehicle replacement?\u00a0 The more precise you are in identifying and projecting your expenses, the more confident you will be about your financial future.\r\n\r\nBefore we go any further, let\u2019s step back and acknowledge that you should be saving for any large future expenditures that are not in your core living expenses.\u00a0 That means saving for vacations, replacement vehicles, your children\u2019s education, and, above all, retirement.\u00a0 The best way to organize your finances is to save first and spend second.\u00a0 Most people spend first and save second, if there is anything left to save and too often there isn\u2019t.\r\n\r\nWhat do you do if your income is not big enough to save the way you need to and spend the way you want to?\u00a0 Well, you will have to make some tough decisions.\u00a0 What\u2019s most important to you?\u00a0 Do you need to live in the house you shared with your ex-spouse?\u00a0 Do you need to take as many vacations?\u00a0 Can you trim your cable TV package?\u00a0 Could you change jobs and earn more?\u00a0 What about taking on a second part-time job?\u00a0\u00a0 Try to find ways to reduce your expenses and\/or increase your income, so that you can save what you need to save and spend what you want to spend, but saving is your priority so don\u2019t compromise it.\r\n\r\nIn the wake of a divorce, there are some other tasks you need to take in order to be financially secure.\u00a0 You should change the beneficiary designations on your retirement accounts, your insurance policies and your \u201ctransfer-on-death\u201d accounts.\u00a0 You should check in with the\u00a0Social Security<\/a><\/strong>\u00a0Administration and clarify your benefits.\u00a0 If you were married for ten or more years, you will qualify for benefits based on your ex-spouse\u2019s record and those benefits may be larger than your own. (You receive the larger of the two.)\u00a0 If there are mistakes in your earnings record, you can correct them.\u00a0 You should establish an emergency fund that contains enough cash to pay for a large, unexpected expense or pay your basic, fixed living expenses for 3-6 months if you become unemployed for some reason.\u00a0 You should update your\u00a0estate plan<\/strong><\/a>\u00a0(will, durable power of attorney, and health directive).\r\n\r\nAs you might imagine, to work through and accomplish these financial tasks, you may need assistance from a financial advisor (Certified Financial Planner\u2122, Chartered Financial Consultant\u00ae, or Certified Divorce Financial Analyst\u00ae), insurance agents, tax professional, and estate planning attorney.\r\n\r\nThe key to thriving financially after divorce is developing a sound plan and following it.\r\n\r\n
\r\n4: Going through Divorce? -\u00a0 Surround yourself with Financial Experts<\/h2><\/a>\r\nThere are a lot of issues to consider as you go through a divorce.\u00a0 They fall into categories: legal,\u00a0financial<\/a><\/strong>, tax, and investment.\u00a0 Let\u2019s consider the issues and who can help you navigate them.\r\n\r\nUnless you plan to execute your own divorce (i.e. do-it-yourself) in your legal jurisdiction (state and county), you will need to hire an attorney who can walk you through the process of dissolving your marriage.\u00a0 While most attorneys are capable of guiding you, we suggest you work with a family law attorney who focuses on divorce.\u00a0 You can find family law attorneys by searching on your state bar\u2019s website, asking other professionals for a referral, or doing a simple internet search.\u00a0 You should interview 2-3 and select the person who is most qualified and with whom you have the best personal rapport.\r\n\r\nIf you are likely to receive alimony from your ex-spouse, your divorce attorney will help you negotiate an amount and a payment period that is fair.\u00a0 If you have children and expect to receive child support, your attorney will also negotiate those payments.\r\n\r\nDivorce results in a tangle of financial issues.\u00a0 What are the marital assets, what are they worth and how will they be divided?\u00a0 How much income will you have after your divorce?\u00a0 Will that be enough to support you?\u00a0 What will you do for insurance?\u00a0 How will you save for retirement?\u00a0 What will be your Social Security benefits?\u00a0 What happens if your ex dies and your alimony and child support end?\r\n\r\nThere are various financial advisors who can help you with the different financial issues you will encounter in your divorce.\u00a0 A financial advisor can help you with many aspects of\u00a0personal finance<\/a><\/strong>\u00a0<\/strong>(budgeting, insurance, taxes, estate planning, investments, education funding, retirement planning).\u00a0 Look for a fee only planner who does not sell financial products and earn commissions.\u00a0 The Certified Financial Planner\u2122 and Chartered Financial Consultant\u00ae credentials are the most respected credentials held by financial planners.\u00a0 If you feel you need particular expertise in the area of divorce financial planning, look for a\u00a0Certified Divorce Financial Analyst\u00ae<\/a><\/strong>.\u00a0 You can search for a CFP\u00ae at the\u00a0CFP Board website<\/strong><\/a>\u00a0and a CDFA\u00ae on the\u00a0Institute for Divorce Financial Analysts website<\/a><\/strong>. The American College awards the ChFC\u00ae designation, but there is no way to directly search for one on its website.\r\n\r\nIf you have difficult-to-value assets, you should hire an appraiser.\u00a0 The American Society of Appraisers confers\u00a0four appraisal credentials<\/a><\/strong>\u00a0<\/strong>related to the subject in need of appraising.\u00a0 There is a \u201cFind an appraiser\u201d tool on its\u00a0website<\/a><\/strong>.\u00a0\u00a0\u00a0 If you are trying to value a business, consider hiring an accountant with the Accredited Business Valuation (ABV) credential.\u00a0 There is a credential directory tool on the\u00a0AICPA website<\/a>.<\/strong>\r\n\r\nIf you need tax-specific advice, work with a Certified Public Accountant (CPA) or an Enrolled Agent (EA).\u00a0 The state society of Certified Public Accountants will often have a tool on its website that allows a consumer to find a CPA.\u00a0 You can search for an enrolled agent on the National Association of Enrolled Agents\u00a0website<\/a><\/strong>.\r\n\r\nWhat about insurance?\u00a0 If you need help with personal insurance including life insurance, disability insurance, annuities and long term care insurance, consider working with a Chartered Life Underwriter (CLU\u00ae).\u00a0 The American College bestows the CLU credential, but there is no search tool on its website to find a CLU.\u00a0 If you need help with health insurance, consider working with a Chartered Healthcare Consultant\u00ae (ChHC\u00ae), Registered Health Underwriter (RHU\u00ae) or Registered Employee Benefits Consultant (REBC\u00ae).\u00a0 All of these credentials are administered by the National Association of Health Underwriters, and there is a \u201cfind an agent\u201d tool on its\u00a0website<\/strong><\/a>.\r\n\r\nIf you need assistance with your investments, there are two credentials for which you should look.\u00a0 The Certified Financial Planner\u2122 (CFP\u00ae) and the Chartered Financial Analyst (CFA) designations.\u00a0 The latter can be found on the CFA Institute website on their\u00a0member directory<\/strong><\/a>.\r\n\r\nYou will need to update your estate plan. While most attorneys are capable of doing this, consider working with an estate planning attorney.\u00a0 These attorneys work more narrowly on estate planning matters.\u00a0 As with family law attorneys, you can find an estate planning attorney on your state bar\u2019s website.\r\n\r\nFor all of these professionals, you can, of course, ask for referrals from other friends, family members, and other professionals you know or conduct a search on the internet.\u00a0 It is always wise to interview 2-3 experts before selecting one to serve you.\r\n\r\nDivorce is a complex process with many and varied financial consequences.\u00a0 Surround yourself with experts to avoid pitfalls and achieve the very best outcomes.","_et_gb_content_width":"","_mi_skip_tracking":false,"footnotes":""},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/pages\/5603"}],"collection":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/comments?post=5603"}],"version-history":[{"count":0,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/pages\/5603\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/pages\/5362"}],"wp:attachment":[{"href":"https:\/\/springwaterwealth.com\/wp-json\/wp\/v2\/media?parent=5603"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}