Shaun McCarty Alto FG

01/08/2024

Forbes logo
Bernadette Joy, Contributor

Dec. 30, 2023

The Federal Reserve recently opted to hold interest rates at the same level. They’ve sat at 5.25% to 5.5% since July, and there’s a question driving much debate among investors lately: How low will the Fed will cut rates next year?

We don’t know the answer. Rather than using time and energy to predict the future, you can advance your financial goals much further by taking the necessary steps to prepare for what’s to come instead.

Following these financial trends can add up to big savings in 2024.

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Here are four trends that grew in popularity in 2023. If you continue to follow them into the new year, they can help you stack more savings and move faster toward financial freedom.

1. Prioritize Paying Down High-Interest Credit Card Debt
The first step in fixing your finances faster in 2024 is understanding the impact of high-interest loans, particularly credit card debt. Credit card debt has grown to an all-time high at $1.03 trillion, compared to $806 billion prepandemic, according to the New York Federal Reserve.

The need to navigate inflation and higher interest rates is unlikely to end in 2024, and even if they were to cool down significantly, you’d be better prepared by reducing your dependency and balances on high-interest credit cards. One financial goal everyone should have is to focus on getting to — and maintaining — $0 balances on credit cards as they continue to average at 27.8% interest rates currently.

2. Leverage AI To Expand Your Financial Vocabulary
AI was all the rage in 2023. I don’t recommend using AI tools such as ChatGPT for investing advice, which tends to be highly personalized. But I do think it’s a great tool to help understand or extrapolate key financial concepts that you might not have been able to learn before from other online resources. ChatGPT also can help you translate what you might have heard from a financial advisor or educator.

In teaching live classes on topics such as budgeting and investing, I often find learners are afraid to ask questions for fear of sounding uneducated, but there’s no judgment coming from an AI tool. Giving additional AI prompts like “explain it at fifth-grade level” or “explain it in simpler terms” can help you translate any financial jargon that may give you anxiety when making money decisions.

3. Plan For Early Retirement Now, Not Later
Financial Independence, Retire Early or the FIRE movement continued to grow in popularity this year, thanks to the growing number of people looking for freedom outside of a traditional day job in a post-COVID-19 world. A comfortable retirement may mean traveling or spending more time with family. Or it could mean you choose work you love to do, versus how much it pays. Regardless of the definition, 56% of Americans said they’re not on track to retire comfortably, according to a recent CNBC survey.

I personally reached a milestone of having $1.5 million saved up for retirement in 2023. This achievement was thanks to following the principles of the FIRE movement and shifting as much as I could in tax-advantaged accounts such as my 401(k) and IRAs. I also spent well below my earned income to save the difference. With interest rates not expected to decrease significantly in 2024, it’s a great time to jump on the FIRE bandwagon by taking advantage of higher ones and increasing your savings power.

4. Keep Challenging Societal Norms About Wealth
Lastly, the questioning of societal expectations about wealth dominated a lot of financial forums this year. Those ranged from the debate between renting and buying a home to the rise of quiet luxury, where we saw a noticeable shift away from brand-name fashion to classic and simple aesthetics.

In particular, as you form your financial goals for the new year, take an extra step to ask yourself, “Is this what I really want? Or do I think I want this because that’s what I’m supposed to do?” It's crucial to scrutinize these norms to manage your personal finances according to your values, rather than accept traditional advice in what’s likely to be another unexpected year.

01/08/2024

9 Financial Mistakes to Avoid in 2024
Entrepreneur Magazine
Mikey Lucas

Jan. 2, 2024
Welcome to the new year. Here we are, toes on the line with that new year's unbridled optimism. We all have that voice saying, "This year, it's going to be different." But let's pause for a second — will it really? Without a solid game plan, you're just sprinting off blindfolded.

Today, let's break down nine things you absolutely should not do as you kick off your new year. And no, we're not talking about the usual suspects like hitting the gym or giving your living room a facelift. Let's pivot to something less flashy, yet crucial — your finances.

Here's the deal: To genuinely pull ahead this year, you need to dust off those neglected, cobweb-covered corners of your financial house. The ones you've conveniently ignored or barely glanced at. Those are the game changers. Let's dive in.

1. Not having insurance
It's like going into a storm without an umbrella. No insurance? You're asking for trouble. A single mishap could lead to a financial deluge. The solution is simple: Get insured. Health, car, home — cover your bases. It's not just sensible; it's essential.

If this seems like a mammoth task, hire it out. Get a broker to analyze what's best for your situation. It might cost a dollar more, but it'll save you thousands if you never got insurance to begin with.

Bonus points: Get your family on board for the new year, too. This will not only be a lifesaver for you and them (quite literally) but might also get you all some discounted deals as well.

2. Not having an emergency fund
Imagine your car breaks down or you face a sudden medical bill. Without an emergency fund, you're flirting with debt disaster. The game plan here is straightforward: Build that fund. Aim for a cushion that can cover three to six months of expenses. It's your financial shock absorber.

Don't know where to start? Consider opening a bank account that automatically deducts $50 from your incoming pay. And if this seems difficult, call up your bank and get them to set it up. The key here is to set it and forget it (until you need it).

3. Not planning for taxes
Taxes can be a ticking time bomb if ignored. Waiting until the last minute invites stress, mistakes, and penalties. The wise approach is to tackle your taxes all year round. Keep track of your expenses and deductions. It's about turning a headache into a manageable task.

Let's break it down easily. Your best game plan here is to get in touch with a reputable tax professional who can sketch out the fine details for you. Get the professionals to make you a plan, and just follow it through. Again, it might cost more upfront, but it will save you enormously when tax time comes around.

4. Paying only the minimum on credit cards
It's a trap! Minimum payments keep you in a perpetual debt cycle. The accruing interest turns what was once a molehill into a mountain. Break free by paying off more than the minimum. Better yet, clear the whole balance monthly. It's the smart way to keep interest costs in check.

Tackle it like your emergency fund — automatically allocate money out of your incoming pay. This way, when you look at your balance, you're looking at what you can use with peace of mind.

5. Not having financial goals
Sailing without a destination leads nowhere. Without financial goals, saving and investing become aimless. Set clear, achievable objectives. Whether it's a down payment for a house, a dream vacation, or a comfortable retirement, having a target gives your financial efforts direction and purpose.

If you're unsure of what this might look like, start by saying what you don't want. That might be debt, stress, being financially constrained — you name it. Then turn this into a goal for yourself to avoid this year, and you've got a good place to start.

6. Not checking your credit score
Your credit score is the gateway to your financial opportunities. Ignoring it can lead to nasty surprises at the worst times (like loan rejection). Regular checks are a must. It's about being proactive and addressing issues before they become problems.

Make it easy for yourself. Get your accountant to do this for you. Here's another bonus — set this up as one of your previous financial goals for this year. Chat with your accountant about what you can do to get that score up. Then set it in action.

7. Not investing
Letting your money idle in a low-interest savings account is a missed opportunity. Inflation can erode your savings' value over time. Investing offers the potential for huge returns. Research, understand your risk tolerance, and start putting your money to work.

For anyone who hasn't attempted investing before, join an investing group. You'll get great insights into opportunities, you'll get educated and maybe find some great networks, too.

8. No budget
Operating without a budget is like driving with your eyes closed — you don't know where you're going until you crash. A budget is your financial roadmap. It helps you track income, control spending, and ensure you're steering towards your financial goals.

The best source of information to help you build your budget is you. Look back over your bank statements. See where your money went last year. And aim realistically. Cutting back $50 per week on unnecessary expenses is a win in itself.

9. Ignoring debts
This is a one-way ticket to financial stress. Unchecked debts grow, interest compounds, and before you know it, you're in over your head. The solution? Face them head-on. Create a repayment plan prioritizing high-interest debts, and stick to it. It's about reclaiming control.

Book an appointment with your accountant as soon as they're open in January. Get real about the looming clouds over your financial freedom, and let them make a plan for you to follow. Remember: If it's too hard, hire it out.

So, let's raise a toast to the new year — not just to what it brings, but to what we'll avoid to make it truly spectacular. Here's to making smart choices, to being financially fearless, and to a year where the only downfalls are the ones we expertly dodge together. Wishing you and your family a prosperous (and financially abundant) year ahead. Happy financial planning!

08/16/2023

06/18/2023

Student Loans are coming back and you are going to have to start paying them again are you ready?

https://calendly.com/smccartyreti.../consultation-phone-call

05/30/2022

So many have paid the ultimate price while protecting our country while in the line of duty! We give thanks to those that gave us this freedom that we all enjoy today.

05/18/2022

Do you know what your investments are really worth? Have you ever really sat down to question how much you have made? Do you think it's worth investigating?
Do you wonder Why you are not making real gains in the market?

The real rate of return is objective, and substantial. It delineates the exact performance of your capital from start point to end point.

02/04/2022

Do you know what your investments are really worth? Have you ever really sat down to question how much you have made? Do you think it's worth investagating?

02/04/2022

A family that helps a lot of families!

11/11/2021

11/09/2021

Information That every woman should read regarding Social Security.