Paddock Financial Planning

Paddock Financial Planning Helping people manage their money through a simplified financial planning process that supports fina

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Paddock Financial Planning is not a registered broker/dealer and is independent of Raymond James Financial Services. Important Disclosure Information: http://raymondjames.com/smicd.htm

Happy ! It's fair to say that April made it easier to find reasons for concern than hints of optimism. Still, I take t...
05/02/2022

Happy !

It's fair to say that April made it easier to find reasons for concern than hints of optimism.

Still, I take the view that the headwinds we've faced so far in 2022 represent discomfort masking long-term opportunity and a fundamentally resilient economy.

That said, it's wise to acknowledge the prevailing pessimisms:

- The U.S. gross domestic product shrank in the first quarter.
- Inflation remains high.
- There is no clear end to the Russia-Ukraine war.
- Each major market index was down for the month.

As the markets are forward-looking, we would be equally remiss to ignore the good news underneath:

- Measures of domestic demand are strong, and consumer savings are higher than ever.
- Month-over-month inflation in April is expected to be milder, lowering the year-over-year inflation rate.
- Supply chain data from the Federal Reserve Bank of New York suggests an easing of disruptions.
- First quarter corporate earnings growth was generally strong.
- Corporate savings are empowering shareholder-friendly policies.

Meanwhile, all eyes are on the U.S. Federal Reserve. If the wave of inflation doesn't break, the interest rate-setting committee may feel additional pressure to stabilize prices with the tool at its disposal, which could cost economic growth.

The bottom line: In the near term, volatility will likely remain elevated. However, these concerns may be fully priced into the market already.

Meanwhile, there is evidence suggesting some of the largest headwinds will ease this year, presenting opportunities to long-term investors.

As always, the market and the world remain in flux and I'm here to support you to navigate these conditions together.

In honor of Earth Day, let's talk sustainable investing!For me and many of my clients, sustainability is the new standar...
04/22/2022

In honor of Earth Day, let's talk sustainable investing!

For me and many of my clients, sustainability is the new standard for investing. It is no longer a "niche strategy," but one that has enduring value that anyone can appreciate.
You might be wondering, what's sustainable investing? It is an approach that supports companies proactively managing environmental, social and governance (ESG) issues.

The top motivations for investing this way may surprise you:

1. Risk mitigation

Institutional investors often cite the importance of mitigating ESG risk. Protect the downside, right? Environmental degradation or data breaches can impact a company's bottom line. These cautious optimists looks for companies trying to get ahead of regulations for the right reasons.

2. Values

Investing in companies whose practices align with your own moral compass.

3. Impact

A more conscious approach can help investors make a positive impact. Like a 2016 impact investment in Civic Builders that built a new school to serve a city in financial ruin with a 29% poverty rate. Or an investment in funds that build affordable housing for disabled people.

4. Long-term performance

Slow and steady, like the fabled tortoise, the long-term investor sees growing evidence that integrating ESG principles has the potential to positively impact risk-adjusted performance. In the past few years, companies with higher ESG ratings exhibited higher average return on invested capital, compared to companies with lower ratings, according to data provider MSCI. This is in part because ESG pushes com¬panies to look beyond the three- to five-year business cycle in evaluating risk.

If you're interested in aligning your investments with your sustainable values, I'd love to talk. We can make a difference together!


Saving and investing are important parts of your financial plan – but they are different! Saving is the process of setti...
04/21/2022

Saving and investing are important parts of your financial plan – but they are different!

Saving is the process of setting aside money to be used for a financial goal – think establishing an emergency fund, accumulating for retirement, or buying a house.

Investing is what we do with the money you've saved, and there are lots of options.

Some investments are designed to help you protect your principal (the initial amount you set aside), but may provide little to no return.

Other investments can go up or down in value and may or may not pay interest or dividends. Stocks, bonds, cash alternatives, and real estate all represent investments.

Why is investing important? The future is expensive. People live longer, retirement costs are higher, groceries, gas, inflation…the list goes on and on. The value of a dollar today is less than the value of a dollar 10 years from now.

Because everyone has different goals and expectations, it's important to work with a financial planner to match YOUR goals to appropriate investments.

To recap:

Step 1 – Save! If you don't, there's no money to invest.
Step 2 – Invest! Work with a financial planner to match your goals to your investments.


Why do so many people never obtain the financial independence they desire? It's often because they don't take the first ...
04/18/2022

Why do so many people never obtain the financial independence they desire? It's often because they don't take the first step – getting started. Can you relate?

Do you feel like investing is too risky, complicated or time consuming?

Do you tell yourself that investing and financial advisors are only for rich people? Wrong! You just haven't found the right person to help you.

I meet with people every day who don't feel "wealthy enough," and you know what? They are all FAR wealthier than they think.

So, if you're waiting until your finances are perfect, or you have zero debt, or you get that raise, or you feel more confident, or you are "wealthy enough" to ask for help, chances are you'll never reach out.

…and chances are you are missing opportunities to grow your wealth.

Call me. DM me. Email me. Take the first step – get started.

[email protected]
831-417-0714

Breaking even is the goal when it comes to taxes, but if you are fortunate enough to be receiving a tax refund this year...
04/10/2022

Breaking even is the goal when it comes to taxes, but if you are fortunate enough to be receiving a tax refund this year, be wise in what you do with it! Here are some ideas for you to consider.

1. Invest in your future

Save for retirement
Pay down debt
Build up your emergency fund
Fortify your portfolio

2. Invest in yourself

Save for higher education – for yourself, your kids or grandkids!
Renovate your home
Start an exercise routine
Start a "Fun Fund" – money for future big-ticket wants, so you can enjoy them without going into debt!

3. Invest in the world

Become more generous – give to a charity you've always wanted to support
Go green – invest in ways to save on energy expenses and reduce your carbon footprint
Grow your own garden – save money by growing healthy fruits and veggies in your backyard

Whatever you decide to do with your refund this year, avoid squandering the money and make the most of it!

If you end up owing taxes, talk to your tax and financial advisors about ways you can pay the bill without disrupting your investment plan or depleting your savings. If you anticipate owing taxes again, you may also want to discuss investment and tax-saving strategies to reduce your liability next year and over the long term. These two professionals should be able to work together to address your specific situation and help you refine your tax strategies going forward.

Reminder – Show your CPA some love! Fact: Taxes are the worst. Raise a hand if you agree!But they're a part of our lives...
04/07/2022

Reminder – Show your CPA some love!

Fact: Taxes are the worst. Raise a hand if you agree!

But they're a part of our lives that are here to stay, and we need to be thankful for those who take care of the heavy lifting for us.

With tax returns due on Monday, April 18, your accountants and CPAs are in a flurry getting your taxes done. Show them some love by dropping by a cup of coffee, a food delivery gift certificate, or maybe a lovely thank you note!

…even better, tag them here, so we can all love on them!

Are your finances stressing you out? I can help!I can help you with:- Dialing in your budget- Managing your investments-...
04/07/2022

Are your finances stressing you out? I can help!
I can help you with:

- Dialing in your budget
- Managing your investments
- Saving for the future
- Cleaning up and consolidating old accounts
- Educating you on your options during life transitions
- Talking through your feelings about money

…and much, much more!

There's no reason to continue to lose sleep over your money. Contact me to start the conversation! I'm here for you.

It's everyone! Here's what happened in March...The volatility of recent months continued in March, driven by geopoliti...
04/04/2022

It's everyone! Here's what happened in March...

The volatility of recent months continued in March, driven by geopolitical events that I believe are unlikely to dissipate soon, a more hawkish Federal Reserve and higher prices.

Despite headwinds, domestic equity markets rallied toward the end, making up for some of the earlier losses. The general economic backdrop remains favorable as U.S. consumers, flush with cash, continue to spend, despite rising prices; manufacturing and business spending remain healthy; and the labor market remains robust.

Key takeaways for the month:

- As expected, the Federal Open Market Committee raised the federal funds rate 25 basis points at its March meeting and indicated that further increases will be needed to return inflation to its 2% goal.

- The Russian invasion of Ukraine has lifted oil prices globally, exacerbating inflation and prompting renewed interest in alternative energy sources.

- Earnings trends remain solid and valuation multiples have become more compelling. In addition, I believe that higher Treasury rates coupled with wide spreads and increased municipal/Treasury ratios should bode well for income buyers in both the corporate and municipal markets.

The bottom line: Overall, volatility tied to geopolitical risk is likely to persist over the medium term and adds complexity to the global economic outlook. Despite uncertainty, the U.S. economy looks to have room to grow, and higher equity prices seem likely.

We are constructive on equities and believe that investors should view temporary choppiness as a buying opportunity.

I mean really - is there any better way?!
04/03/2022

I mean really - is there any better way?!

Happy April Fool's Day, everyone! Pranks don't just happen once a year, especially when it comes to money. All too often...
04/01/2022

Happy April Fool's Day, everyone!

Pranks don't just happen once a year, especially when it comes to money. All too often I hear financial "advice" that should be April Fool's jokes, but aren't…and I definitely hear them all year round.

Here are 3 of the most common foolish financial myths I hear:

1. Carrying a balance on a credit card will help your credit score

Using a credit card and making on-time payments can help build a positive credit history, but that has nothing to do with carrying a balance. Not only will that cost you interest, but it can hurt your score by increasing your credit utilization.

2. Bad times means it's time to get out of stocks

Market volatility is the price we pay for stock returns, so there will inevitably be times when your portfolio loses value. Selling when the market is down just turns a short-term paper loss into a permanent one. It could take some time to recover, so don't invest money that you need in the next 5 years or so. Then, build a portfolio that matches your risk tolerance, so you're no tempted to bail out at the next downturn.

3. Plan for retirement based on general guidelines and average assumptions

I see and hear lots of chatter about how much you should have saved for retirement at different ages. The problem with this is that it doesn't take into account individual factors like when you want to retire, how much income you need or would like to have in retirement, how much you'll collect in pensions and/or Social Security benefits, and how much you can afford to save going forward. And if you're using a calculator with an average rate of return and life expectancy, there's a good chance it doesn't match your actual investment returns and longevity. If you're going to use a calculator, use conservative return estimates and plan on living until 100! Better to save too much than not enough.

So – before you follow the advice of your brother-in-law or a TV pundit, consider consulting with a qualified, unbiased financial planner (like me!) for all your financial questions. You don't want your future turning into a joke!

Financial preparedness can feel overwhelming - I get it! Sometimes starting with small tasks can get the ball rolling in...
03/11/2022

Financial preparedness can feel overwhelming - I get it! Sometimes starting with small tasks can get the ball rolling in the right direction.

So, here are 3 ways you can start laying the foundation for your financial journey!

1. Establish a cash reserve - It will take time to build it up, but opening an account and having an automatic contribution to it monthly will get you started.

2. Protect your income - When our income goes away, we lose the ability to support ourselves and our families. We risk the ability to have a roof over our heads and food on the table. Depending on your age and phase of life, there are different ways to do this. Talk to a financial professional (like me!) to learn about your options.

3. Review titling of your accounts & beneficiaries - If you died tomorrow, do you know if your assets would go to probate? Do you know who would get your money? If you don't, then it is time to take a look at your account titles and beneficiaries. These items should be reviewed annually.

Want more tips on being financially prepared? Join me on Tuesday, March 15 at 12:00 p.m. PST for an educational webinar with Wanda Vollmer of ! Link to register below.

https://us06web.zoom.us/meeting/register/tZAld--qpjIoG9Bruge6Dw9TlOqfUWHIUMST

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398 Foam Street, Suite B2
Monterey, CA
93940

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+18314170714

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