While millions of people frantically check their smartphone notifications about the coronavirus disrupting the stock market, here are a few notifications that catch my attention.

These reminders are reassuring, especially when the 24-hour news cycle tempts us to hit the panic button. Most importantly, they keep me focused on things that I can control. In this case, my investment accounts have been busy taking advantage of the volatility in the stock market by using intelligent portfolio management.

Let’s quickly break down both of these notifications:

The first alert I received was for tax-loss harvesting, which is a nerdy term for converting market downturns (such as the one we’re seeing right now) into tangible tax savings. When properly applied, tax-loss harvesting turns your financial lemons into lemonade. A successful tax-loss harvest lowers your tax bill without substantially altering or impacting your long-term investment outcomes.  

The second alert I received was for rebalancing – also known as buying what’s cheap in the market and making sure my overall risk profile, also known as my asset allocation, is on target. This happens automatically—and without additional fees. It’s the investing equivalent of having your GPS re-route your trip to maximize efficiency.

These are the little things that add up over time. In fact, last month we posted a popular article titled “No Tipping on Taxes” which explores how important tax-loss harvesting is to avoid paying unnecessary taxes. No one likes to be surprised by a larger-than-expected tax bill.

In times like these you need to focus on the things you can control (automating your portfolio management) and avoid worrying about the things you can’t control (fear-mongering news alerts). In fact, the smartest financial decision you make could be putting your phone away. If you’re curious about how these simple yet important investment management tools could help you during this period, schedule a short call with us here.

In my experience, most people are reluctant to speak to a new advisor. Often, the hesitation is rooted in logistics: the obligatory transition process involving opening accounts and selling their assets sounds daunting. As part of our Hillfolio service level, we’ve built out a sweet start-to-finish process of setting up an account, approving asset transfers, and, most importantly, setting up a monthly contribution. It generally takes about 25 minutes – less time than it takes to watch an episode of your favorite Netflix show. You can set up your account securely and seamlessly from your phone or with a couple clicks of your computer mouse. We are always here to make this process feel effortless for you, every step of the way.

The process boils down to these 4 simple steps

1. Answer a few straightforward questions so we can understand your current situation and future goals,
2. Choose the account(s) you want to open,
3. Electronically sign a form that gives us permission to transfer your assets into a low cost globally diversified portfolio of nearly 13,000 companies,
4. Set up a monthly contribution that aligns with your budget and goals,

No paper. No 800 numbers. No sales gibberish. No hidden fees. We’ll also set you up with our app so you’ll get a notification when we rebalance your portfolio (at no extra charge). 

Ready to talk? Just pick a time on this calendar.

There is a new term we are hyper-focused on this month at Hill Investment Group – “snowplow parent.” The phrase refers to a parent who clears every obstacle out of their child’s way, preventing the youngster from developing the skills they will need later in life.

In episode 7 of the Take the Long View with Matt Hall podcast, experienced wealth counselor and financial therapist, Marilyn Wechter says “If you think about spoiled, what you’re talking about is kids who haven’t had the opportunity to figure out how to solve problems on their own and haven’t had the opportunity to figure out how to get something that they really want other than passively being given to.”

Marilyn and Matt Hall discussed the 4 primary things spoiled kids have in common.

1. Few chores or responsibilities
2. Not many rules to govern behavior or schedules
3. Parents and others lavish them with time and assistance
4. A plethora of material possessions

So, if we know what not to do, what’s the solution? Marilyn suggests we should nurture curiosity, patience, thrift, generosity, perseverance, modesty, and perspective.

That’s a lot to tackle, especially because today you can buy just about anything from your phone and POOF, it shows up at your door the next day.  How do you teach kids the value of money when your kids rarely see you hand a physical dollar to a live human in exchange for a good or service? Are the days of stashing wrinkled dollars and loose change in a piggy bank over?

In our house, once you turn 8, which is the age of my oldest son Jack, you began to earn an allowance on a weekly basis. It has been interesting to see how Jack chooses to spend or save his allowance. At first, he bought a few Pokémon cards on Amazon with our help.  In an effort to get him to realize everything does not come in a cardboard box a few days after you order it online, we went to a physical store.  We chose to visit one of his favorite spots, the store where everything is a dollar – I mean everything!  Jack chose his items and when he had to hand over his 4 hard-earned dollars to the cashier in exchange for a few cheap toys, he began to learn the value of money.  Shortly after that trip to The Dollar Store and some careful thought, Jack realized that the toys he bought would likely break or become less interesting within just a few days, so he’s now committed to saving his allowance.  He is learning if he puts his money in a bank, the bank actually pays HIM (very, very little these days) to keep his cash with them. That concept was mind-blowing for an 8-year-old. He asks me each week how much money he has in the bank and is thrilled to watch it grow. I can’t wait to show him the power of investing and the valuable work we do at Hill Investment Group!

Talking how to take the long view (not snowplowing) is vital at an early age, but as we hear in the podcast, it is never too late to start!