The father-and-son duo of SHM Financial Group has been navigating the waters of investing, retirement planning and more for over 64 years.
Stan and Lee Molotsky have even written two books; their latest is SHM Financial’s Smartest Book on Pre and Post Retirement Planning that You Will Ever Read. All of the book’s proceeds support the Jewish Federation of Southern Jersey’s special needs endowment fund.
“Investing in today’s world is a different ballgame than it was years ago,” says president and CEO, Stan Molotsky. “The strategies that once seemed infallible may not be right anymore. With what we’re going through at the present time you may have to be much more nimble than you may have been in the past and keep your mind open to some of the newer things available now. With investing, you can’t just do something, stuff it in a drawer and forget about it.”
We sat down with Stan to talk about the Top 5 rules for investing in a changed world.
1. Think carefully about NOT investing in your 401K
When markets are soaring people tend not to pay much attention to their employee-sponsored plans. Many don’t have that luxury anymore, says Molotsky. “Bad 401Ks limit options while charging high fees. Low fee taxable brokerage accounts and IRAs are worth considering, especially ones that guarantee a return. Limit your fees as much as possible. Over your working lifetime it becomes a staggering amount.”
2. Be prepared for high inflation
“Stimulus programs over the past few years have helped businesses and people stay afloat, but free money is rarely ever free. Today living life is more expensive—food and gas prices are up, medical costs are higher and home values are through the roof. If you needed $85,000 in 2010 you would need $101,000 to have the same buying power today.” In terms of savings, always look for the investments that can increase with inflation. In the past, Molotsky notes, putting funds into real estate, gold, precious metals and commodities like lumber and food staples have paid off.
3. Think twice before buying stocks
Whether you are new or experienced with investing, it is best to focus on companies that thrive when times get hard, says Molotsky. “Build your watch list of shares you would someday like to own. You will then be ready to act.”
4. Update your will
Don’t leave your plan for the distribution of assets up in the air. It’s important that your will is up to date and you have the proper powers of attorney, adds Motlosky.
5. Don’t Wait to Act
Stan, Lee and the certified team of financial planners at SHM have worked for decades developing plans for their clients that take into account that different times call for different strategies. “Ask yourself this: If I did not own what I currently have in my portfolio, would I buy these same companies today?” says Molotsky. “If not, why hold these positions?”
To determine if your portfolio is aligned to your goals turn to someone you can trust. Visit SHM’s website for the free tools available to help. Also, call SHM for a complimentary copy of their latest book.
Before Your Grandchild Goes to College… Key advice from the SHM Financial Group
Do yourself a favor and complete these documents as guardians and parents need to make sure they have access to their children’s medical and financial records.
• Universal HIPPA release forms. This allows important medical information to be shared.
• Health care proxy or health care power of attorney. This allows someone to act on behalf of someone who is unable to act for themselves.
• FERPA waiver. This allows parents or whoever is paying tuition access to their child’s grades and school records.
• Health insurance. Young people can stay on parents’ plans—in most cases until age 26—but some people may elect to purchase college plans that might be less expensive.
• Durable power of attorney for finances. This allows parents to step in to help financially without seeking judicial permission to act on a child’s behalf.
• Living will. If a medical crisis does occur, you want to be ready with a living will that allows young adults to spell out ahead of time what would be acceptable to them. These forms are readily available from your attorney or even online in some cases.
Having these forms in place helps in providing peace of mind. Remember SHM Financial Group’s motto: “Think positive—hope for the best, but prepare for the worst.”
SHM Financial: 1010 Haddonfield-Berlin Road, Suite 305, Voorhees
SHM Building: 100 Richey Ave. Collingswood
Published (and copyrighted) in Suburban Family Magazine, Volume 14, Issue 3.
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