Wealth Management Blog | WrapManager | Financial Planning (2)

How to Financially Plan for Natural Disasters and Other Unexpected Events

Posted by Seton McAndrews | CFP®, Vice President Investments

January 31, 2018

How to Financially Plan for Natural Disasters and Other Unexpected Events

2017 was a historic year for multiple reasons, but perhaps none more impactful than in the context of natural disasters here in the United States. 2017 was a record year when it came to cumulative damages from “weather events,” with the total cost reaching $306.2 billion. This number shattered the previous record set in 2005 of $214.8 billion, which was disproportionately caused by Hurricane Katrina in New Orleans.

When people think about 2017 in terms of natural disasters, Hurricane Harvey, Irma, Maria, and the California wildfires probably come immediately to mind. But there were also hail storms in Colorado and Minnesota, drought and fire in the Plains states, three sizable tornado outbreaks, and flooding in California last February. The National Oceanic and Atmospheric Administration created this insightful graphic detailing the major weather events, many of which may still come as a surprise. In all, there were 16 weather events whose damages exceeded $1 billion.

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Investment Planning Financial Planning

Navigating Your Finances Through Divorce

Navigating Your Finances Through Divorce

January 22, 2018

There’s really no way to sugarcoat it – though relationships are often filled with love and beauty, they can also be complicated and sometimes difficult to sustain over time. In recent years, January has earned the dubious honor of being nicknamed “Divorce Month,” as analysis of divorce filings between 2008 and 2011 revealed a spike in divorces in January through March.1 Life changes like divorce or separation almost always call for major financial adjustments, which can often feel like insult to injury. But it doesn’t have to be that way – working with your financial advisor can help you work through the process professionally, and can also prevent emotion from sifting into financial decision-making. That’s key to eliminating some of the financial consequences of divorce. [+] Read More

Calculating the Impact of Expense Ratios on Returns: Doug's Quiz Corner

Calculating the Impact of Expense Ratios on Returns: Doug's Quiz Corner

January 19, 2018

How Does An Expense Ratio Impact Returns? Consider this scenario: Your friend Martha has just invested $100,000 in a mutual fund that has an expense ratio of 1.50%. She has discovered an alternative investment that is very similar to the mutual fund she purchased but has an expense ratio of 1%. She is considering switching to the lower cost investment but isn’t sure if 50 basis points in an expense ratio will make much of a difference in her returns going forward. Assume both investments return 8% per year, each year for the next 10 years before expenses. What is the difference in ending dollar value between the mutual fund with an expense ratio of 1.5% and the alternative investment with an expense ratio of 1% at the end of 10 years? [+] Read More

Financial Planning for…Pet Owners?

Financial Planning for…Pet Owners?

January 17, 2018

For about 85 million Americans, owning a pet is a joy and marvel of everyday life. Indeed, according to the 2017 - 2018 National Pet Owners Survey, about 68% of US households own a pet. This marks a remarkable 56% increase from pet ownership levels in 1988, the first year the survey was conducted. That’s a lot of furry and fuzzy (and fishy and flighty) friends across the country. Many of these pets are considered a part of the family because of the companionship they offer. According to a 2015 poll, 95% of pet owners in America think of their animal as a member of the family; even going so far as to buy them birthday presents! This perhaps explains why for many, no amount of money can replace the happiness and health benefits of owning a pet. [+] Read More

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