It’s time to tackle your financial questions on the podcast so let’s open up the mailbag and try to answer a few that came in recently.

The first one ties into a recent trend we’ve seen nationwide called ‘The Great Resignation.’ This person has had enough of their current job and want to find something new. It’s gotten so bad that they’re willing to live off savings in the interim. This exact scenario might not be commonplace but many Americans are reevaluating their career path.  

If you’re in this situation, here are some things to consider. If possible, test the waters while you’re still employed to get a better sense of how easy or difficult it might be to find a new job. It’s always best to have something else lined up before you leave your current position, but we understand that sometimes you reach the point where you’ve had enough. In that case, be prepared to adjust your plan if the job search lasts longer than expected because you might need to replenish any savings you tapped into.

Our next question comes from a business owner who wanted to know if he was better off investing his money back into the business rather than the stock market or other places because he believes in that more than anything else. We admire the conviction and it might be the best route to take, but there needs to be some discussion with your advisor.

This is a very difficult scenario because there’s value in both of these investments. Many times the business owner will accumulate cash outside of the company because it can be a cushion. Now it all depends on what the business is and what industry it’s in because that might help determine the answer.

But the biggest problem business owners run into with retirement is that they count on the asset to carry them without getting ever evaluating the true value of the company. That puts them in a predicament because they end up not having as much saved as they need and it could force them to adjust retirement plans.

Our final question is about the market and how long it will take to recover. When we hear someone ask that, the first thing we ask is, “Recover relative to what?” Are you hoping things return to where they were a few months ago or where they were 2-3 years? Those are two different discussions, but the bottomline is you need to make sure you’re properly invested in the market and not depending exclusively on those returns. You will never be able to time the market so having the proper risk in your portfolio will help you maintain the long-term perspective that comes along with planning.

Hopefully you learned something that might help you out with your own finances, but the you’ll always be in the best position by having a proper financial plan. Take advantage of our complimentary Money Map review process to ask any questions you might have and to start that planning process.

0:21 – Mailbag question on changing jobs

2:05 – Mailbag question on investing back into the business

3:38 – Mailbag question on market recovery

5:02 – Money Map Review