Why Do We Worry About Money

Even the wealthy worry about money. Financial success doesn’t eliminate fears or insecurities, often rooted in childhood experiences, societal pressures, or the responsibilities of managing wealth.

Here are three main reasons we worry about money:

1. Fear of the Unknown: Concerns about market volatility, economic downturns, and unexpected life events cause stress. A comprehensive financial plan with contingency strategies helps reduce anxiety and provides a sense of control.
2. Responsibility to Others: The obligation to provide for family, support charitable causes, and contribute to communities can be overwhelming. A legacy plan that aligns with your values can ensure your wealth is managed wisely and ethically.
3. Maintaining Financial Independence: Even the wealthy fear running out of money or becoming a burden. Planning for healthcare and considering long-term care insurance can provide peace of mind.

Understanding these concerns, we offer personalized strategies to help you navigate financial worries with confidence. Having a trusted advisor by your side makes achieving financial peace of mind possible.

Jeff Wetta, RPS and Dustin Jackson, CFP® RICP®
Managing Partners

Your Market Update

Improved markets as earning growth was strong

As we ended May, equity markets remained positive year-to-date and recovered from the April pullback. A dovish Fed press conference on April 30th, where rate increases were ruled out, helped fuel the May recovery. The S&P 500 was up 4.6%, and the tech-heavy Nasdaq was up 7.7% through May 28th. Meanwhile, slower-growing companies of the Dow Jones were up 1.6%. Strong earnings drove the market increase. Aggregate earnings were up 8% year-over-year versus an expectation of 3% growth.

On May 15th, the Bureau of Labor Statistics released the CPI report for April. The headline CPI rose 3.4% year-over-year (3.6% ex-food and energy). These numbers were sticky versus the prior month but were better than feared, and the market rallied after receiving this news. Even though the chance of rate cuts before the election is low, the equity markets have acclimated well to the higher for a more extended environment, and investors have focused on companies and earnings. While technology earnings have led the charge, the market return is diversified across different sectors, albeit slightly less than through April. Consensus earnings growth for the full year 2024 is estimated at 11%, which could help fuel further gains in equities if achieved.

The prospect of a “higher for longer” rate environment was offset a bit by the favorably viewed CPI report for fixed-income investors. The Bloomberg U.S. Aggregate Bond index (AGG) was up 1.5% for the month through May 28th. For the year-to-date period, the AGG was down 1.5%, highlighting a still tough fixed-income environment.

Overall, volatility was down in May, and broad market volatility continued to be on the low end of the historical range. We think volatility could pick up as the year progresses.

Looking Ahead

We remain invested in a broad mix of investment securities anchored by the S&P 500 in our equity holdings and a smaller portion to select growth investments. In addition, our equities are augmented with structured growth notes and attractively yielding dividend stocks with a high confidence in dividend payouts.

In equities, we are currently invested in both the highly vetted private equity manager Carlyle and our in-house Venture Growth Fund. As mentioned in last month’s report, the environment and valuations for pre-IPOs improved notably during the quarter.

We continue to take advantage of historically high short-term rates for fixed-income investors. We also continue to utilize yield notes to help drive a higher yield during moments of volatility. Additionally, our private credit allocation to Apollo takes advantage of the higher-for-longer rate scenario. Mid-duration fixed-income, corporate bonds, and municipal bonds are also being incorporated.

To Sum Up

We continue to have a favorable view of 2024, and the market increase in May helped with our view. In the future, our base view remains that the economy will continue to move along and that the Fed’s position of potentially allowing three rate cuts (likely only if the economy begins to falter) provides some support. Generally, a buy-and-hold view, while properly positioned, should help drive a solid return and manage risks. Short-term volatility may pick up, and this is something equity investors should be aware of. Many issues on the horizon include Fed rates and inflation, the budget deficit, the price of energy, and the presidential election, which weigh in on investors’ minds but are not yet affecting markets. We continue monitoring macro and microeconomic indicators as we move through 2024.

Sevasti Balafas, CFA, CPWA®
CEO & Founder
GoalVest Advisory

Sources: JP Morgan Asset Management, Bureau of Economic Analysis, Bureau of Labor Statistics, Morningstar, Factset, and Ycharts

Why Advisor Teams

When it comes to financial advice, the benefits of working with a team rather than an individual advisor become increasingly clear as your financial needs grow more complex. A team can offer a range of insights and perspectives, bringing a more comprehensive approach to managing your finances.

There are a wide variety of teams out there. Some are large, some are small. Some have specialists in-house, while others leverage external partners. Really, there is no “perfect” team structure. It’s more about finding a team whose specialties align with your needs and whose values are congruent with your family’s.

We thought it might be helpful to share some of our thoughts on why teams are so important in managing wealth. Here are a few points to consider:

Enhanced Service:

If you’re working with a solo professional without adequate support, you may find that responsiveness and personal attention are lacking. Conversely, if you’re working with a well-staffed financial team, you should expect more personal attention, quicker turnaround times, and the feeling of “white glove” service.

Comprehensive Approach:

A team approach is essential for taking a comprehensive, holistic viewpoint on your finances. It’s common for some team members to be in-house like financial planners and portfolio managers. Other “team members” like attorneys and accountants may be external (working for different organizations), but coordinating their efforts for the betterment of mutual clients.

Increased Reliability:

A well-built team offers reliability that individuals would find hard to match. A stable and reliable point of contact is crucial during times of urgency when immediate decisions are necessary. Moreover, the presence of multiple professionals within the team ensures that there is always someone available to assist with your needs, enhancing overall service delivery.

When evaluating whether a particular financial team is the right fit for managing your wealth, it’s essential to ask questions that reveal their competence, compatibility with your financial goals, and ability to provide a high level of personalized service. Here are five questions to consider:

1. What is the structure of the team, and what are the roles of its members?

2. What does the communication and reporting process look like?

3. Who would be my primary point of contact?

4. How many clients are they actively managing?

5. How do you coordinate with external partners like accountants and attorneys?

Choose wisely and look for a cohesive unit that works well together. Finding the right advisory team takes a little work, but the impact can be felt for generations.

We’ve Moved!

If you’ve been to our office recently, you may have noticed that we added workspaces to accommodate our expanding team. With the happy dilemma of where to fit all these team members, we have been searching for a new home base. We have officially moved to 8415 E 21st St. N Suite 150 Wichita, KS 67206.