On It with Offit - August 2023

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AUG | 2023 Laura Sendldorfer Earns Chartered Financial Consultant® (ChFC®) Designation We are pleased to announce that Financial Advisor, Laura Sendldorfer, recently earned the Chartered Financial Consultant® (ChFC®) designation. The ChFC® designation is an important distinction for financial planning professionals. Successful completion of the ChFC® program empowers financial advisors like Laura with advanced knowledge in areas including financial planning, risk management, tax planning, retirement planning, estate planning, special needs planning, and more. By earning the ChFC®, Laura has demonstrated her commitment to professionalism, knowledge, and service to our clients with her expertise. Congratulations Laura! Ben Offit Heads to the Pacific Northwest for Executive Consulting with Philip Palaveev CEO and Founder, Ben Offit, CFP®, went to Seattle in July for an exclusive, all-day executive consulting experience with renowned financial services consultant Philip Palaveev.  Ben had the opportunity to discuss the future of Offit Advisors, team development and planning, financial management, and overall business management. Ben really enjoyed his first time in the Pacific Northwest, extending his trip to visit Vancouver, Canada, which was also amazing and beautiful! Dan Coyne and Jamie Sasselli Bring Insurance Planning Expertise to Offit Advisors Offit Advisors is happy to announce further expansion to its team with the addition of Dan and Jamie to it's support and service of insurance clients. Read more about their bios below. Dan specializes in helping Offit Advisors to provide life insurance, annuities, long term care, and disability income insurance and also specializes in Medigap plans, and impaired risk cases that have difficult underwriting through Triton Brokerage. Dan  started in the industry fresh out of college after he graduated cum laude from West Chester University of Pennsylvania where he majored in Business Management.  He is fluent in Spanish, enjoys travel, golf, and is a die hard Chicago Bears fan.  Dan loves to spend his personal time with his wife Jill, and two children, Olivia and Patrick.    Jamie Sasselli has more than 17 years of experience working in life insurance, annuities, long term care, and disability income insurance.  She primarily works on impaired risk cases.  Jamie is a University of Pittsburgh graduate.  She enjoys travel, horseback riding, camping, kayaking, Disney and watching her daughter play hockey.  In her spare time, Jamie enjoys spending time with her husband, Brian, and their two children, Giovanni and Giana.   Offit Advisors Hosts Medallion Advisor Group Luncheon Late last month we were thrilled to host our friends from Medallion Advisor Group for a Reunion Luncheon at Café Mezanotte in Severna Park. This was an opportunity to reconnect with some advisors we haven't seen in over 15 years! At the lunch, the group discussed the highlights of their careers, the future of the industry, and succession and continuity planning within financial services.  It was truly a fantastic day. "Laura was very easy to talk to. She had some good suggestions and gave me a lot to think about. She was very helpful and friendly." - Lisa The testimonial presented is made by an individual who is a client of Offit Advisors and is applicable only to the individuals depicted and may not be representative of the experience of others. The testimonial is not paid nor have the participants received any non-cash compensation and is not indicative of future performance or success. The testimonial has been evaluated for conflicts of interest and has not been found to present any conflicts. Apple, the company wants rights to the image of apples, the fruit, in Switzerland- one of the dozens of countries where it’s flexing its legal muscles. Between 2019 and 2021, Apple filed more trademark oppositions- attempts to enforce its IP over other companies- than Microsoft, Facebook, Amazon, and Google combined. WIRED, June 18, 2023   The median price for a home in Miami is $585,000. To afford that, homeowners would need to spend 79.9% of Miami’s average monthly income on homeownership expenses topping the amount paid by homeowners in Los Angeles and New York City. Pressreader, June 20, 2023   China’s controversial one-child policy, in place for more than three decades, was removed in 2015. Most people would have guessed that the country’s birth rate would rise, however, the opposite happened. Birth rates in 2022 are now 6.77 babies born per 1,000 people- the lowest level on record. Chartr, June 19, 2023   One study of retail currency traders found 70% on average lose money every quarter, and lose it all within 12 months. MarketWatch, April 19, 2023   “The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought.” Rudiger Dornbusch “The problem with internet quotes is that you can’t always depend on their accuracy.” Abraham Lincoln, 1864 The Recipe for a Successful Retirement Hey there, clients!   Many people when thinking about their potential retirement, think about their assets or their portfolio, and making sure it makes financial sense to be able to retire, which is natural and makes sense.  But there other elements to a successful retirement that one needs to think about first before doing so!   Health and Time – This is the single most important investment that you can make.  It is way more valuable to be able to enjoy your life until age 100 instead of age 85.  Life is made of memories, experiences, and you need more time to do that.  In order to have time, you need to have your health, so this needs to be a first priority.   A Social Network of Friends – It is hard to retire, because for many people they become great friends with those they work with.  These are people you spend hours with daily and is a big part of your daily communications and livelihood.  If you retire, and leave that, will you have friends to discuss life and the world with?  It is important to have a network of people to be able to enjoy life with and this is a big part of ones happiness in retirement.   Retiring at the Top of your Game – When you reach the point of being in a position to retire, you may be in a senior and experienced position with what you do.  Therefore, you may feel that you are a “Master of your Craft” or at the “Top of Your Game” and it may be hard to walk away from that feeling.    Purpose – If one doesn’t have a purpose in your post-retirement life, then it may be hard to transition to it.  For many people, going to work and making money is their purpose.  But if that is gone, what is your purpose?  Being able to retire TO SOMETHING instead of FROM SOMETHING is a big distinction.  Will be you be able to retire into having more time to live your dreams, to go on vacation and travel, to spend more time with your family, to spend more time with charities and non-profit work, or do something totally different that you couldn’t before?  Or perhaps, you just want to sit on the couch and watch sports, or TV shows all day – nonetheless, you need to be clear about what you want out of your retirement before doing so, and people are happier with a clear purpose in retirement.  Money at the end of the day is just a tool to help you live your purpose.   Flipping a Switch – It is hard to go from working for many years and saving money and having deferred gratification of putting your money away for the future, into starting to enjoy it and spending it.  One needs to be prepared to learn how to flip this switch and enjoy your money and your life!   Here's to investing in our health, time, friends, purpose and enjoying the abundant riches that life has to offer!   S&P 500 Index is an unmanaged group of securities considered to be representative of the stock market in general. You cannot directly invest in the index. Dow Jones Industrial Average - The Dow Jones Industrial Average is a popular indicator of the stock market based on the average closing prices of 30 active U.S. stocks representative of the overall economy.  NASDAQ Composite Index measures all NASDAQ domestic and international based common type stocks listed on The NASDAQ Stock Market. Today the NASDAQ Composite includes approximately 5,000 stocks, more than most other stock market indices. Because it is so broad-based, the Composite is one of the most widely followed and quoted major market indices. Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index which includes the 3,000 largest companies in the U.S., based on market capitalization. As of the latest reconstitution, the average market capitalization was approximately $762.8 million; the median market capitalization was approximately $613.5 million. The largest company in the index had an approximate market capitalization of $2.0 billion and a smallest of 218.4 million.  Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.  Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.  Government bonds are guaranteed by the U. S. Government and, if held to maturity, offer a fixed rate of return and fixed principal value. Securities offered through Kestra Investment Services, LLC (Kestra IS), Member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Offit Advisors is not affiliated with Kestra IS or Kestra AS. Offit Advisory Services, LLC is a tax firm but neither Kestra IS nor Kestra AS provide legal or tax advice and are not Certified Public Accounting firms.For more information on the Five Star Wealth Manager and the research/selection methodology go to: www.fivestarprofessional.com. Investor Disclosures: https://bit.ly/KF-Disclosures 6990 Columbia Gateway Drive Suite 150 Columbia, MD 21046, US Phone + Fax:  410 600 PLAN (7526) E – Office@OffitAdvisors.com W- www.OffitAdvisors.com   To schedule an appointment with us, click here! The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra IS or Kestra AS. The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. It is not guaranteed by Kestra IS or Kestra AS for accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.

On It with Offit - July 2023

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JULY | 2023 proACTION℠ Planning Series Bonus Episode | What Motivates Ben Join Ben Offit, CFP®, for a bonus episode of our proACTION℠ Planning Series, where he talks about his background, and his drive to help others achieve a higher quality of life thorugh Financial Planning. Ben Recognized by Baltimore Magazine as a 2023 Five Star Wealth Manager for 6th Consecutive Year To receive the 2023 Five Star Wealth Manager award, researched and managed by Five Star Professional, a wealth manager must meet 10 objective eligibility and evaluation criteria associated with wealth managers who provide quality services to their clients. Wealth managers do not pay a fee to be considered or placed on the final list of 2023 Five Star Wealth Managers. Note: The Five Star award is not indicative of the wealth manager's future performance. “Really, Really appreciate your thoughtful, individualized approach” – Clara, Physician The S&P 500 finally exited out of the longest bear market since 1948. It took 248 days for the market to close up more than 20% from its most recent low. MarketWatch, June 11, 2023   U.S. wages outpaced inflation on a year-over-year basis in May by 0.2%, ending the ignominious streak of 25 consecutive months of negative real-way growth. CNBC, June 22, 2023 A Ukrainian hotline for Russians who want to surrender has received more than 17,000 inquiries since September 2022. The Wall Street Journal, June 14, 2023 The New York Yankees’ Domingo Germán pitched the 24th perfect game in Major League Baseball history retiring all 27 Oakland Athletics batters he faced over nine dominant innings. Historically, the DOW has had very strong returns following perfect games: The index has been higher 81% of the time a year later, with an average return of nearly 13%. Barron’s, June 29, 2023 “Justice will not be served until those who are unaffected are as outraged as those who are.” Benjamin Franklin “History is one long processional of crazy ideas.” Phil Knight The Haystack Approach to Investing in the Future Greetings, loyal readership!   It's my pleasure to keep you informed about the evolving world of finance and investing. Today, let's discuss how major breakthroughs have shaped our world and how we can embrace the future with sound investment strategy.   Over the years, we've witnessed incredible technological advancements that have revolutionized the way we live and work. From the days of dial-up internet to the rise of electric cars, to the advent of artificial intelligence, each era has brought its own set unexpected winners.   Remember the early 2000s when the internet was booming? Back then, it seemed like every .com website had the potential to conquer the world. We had search engines like Lykos, AskJeeves, and Yahoo as the frontrunners, but then, out of nowhere, a funny named company called Google swooped in and became the grand winner.   Similarly, with cryptocurrency, while it's tempting to invest in this landmark technology, just as in the .com era, where countless companies fizzled out, the vast majority of cryptocurrencies will eventually go to $0. It's like betting on which flavor of ice cream will be the ultimate hit while ignoring the fact that most of them will melt away. However, a few may emerge as major winners, much like the rocky road or the chocolate mint that stand the test of time.   With electric cars, we can envision an electrifying future, but we can't predict which specific company will emerge as the long-term winner. Will it be Tesla? Maybe. Maybe not. The point is, don't put all your volts in one battery. Diversify your investment approach to ensure that you're not left stranded on the side of the road when it comes to the electrifying evolution of transportation.   Now, let's talk about the tried and true concept of diversification. Picture yourself strolling through a vibrant market, surrounded by an assortment of tantalizing fruits. You have the choice to either search for that one elusive needle in the haystack, the perfect fruit, or simply enjoy the rich variety the market offers. Well, my dear neighbors, the same principle applies to investing.   Rather than trying to pinpoint the exact companies that will dominate the future, consider owning the haystack itself. This is what you do by owning an entire index – you become the owner of the entire market, including those needles in the haystack!  For example, if you invest in the S&P 500, you're already holding a slice of the biggest tech companies out there, such as Apple, Facebook, and Tesla. These companies naturally find their way into the index as the economy evolves. By embracing diversification, you decrease the risk of failure and increase the probability of reward. After all, who wouldn't want a taste of that sweet pie chart with a side of stability?   Now, some folks might argue that concentrated positions lead to higher risk and higher rewards. While that may be true in some scenarios, when it comes to investing in individual stocks, it's like playing a high-stakes game of roulette. Sure, you might hit the jackpot and stumble upon the next Apple or Google, but let's face it, most individual stocks won't bring such fortunes. Investing in an index, on the other hand, offers you a higher likelihood of owning the top companies in the world at all times, minimizing the risk of a single position failing in your overall portfolio.   So, trying to be a fortune-teller with which companies will be the next big winners, take a step back and simply own the index. It's like having front-row tickets to the grandest show in town. You get to participate in the growth of the best companies now and into the future, all while embracing the beauty of diversification.   In the world of investing, the key is to ride the waves of change with a smile on our faces and a diversified portfolio in our hands. Embrace the breakthroughs, chuckle at the unpredictable winners, and savor the fruits of your diversified portfolio.   Disclosures: You cannot invest directly in an index S&P 500 Index is an unmanaged group of securities considered to be representative of the stock market in general. You cannot directly invest in the index. Dow Jones Industrial Average - The Dow Jones Industrial Average is a popular indicator of the stock market based on the average closing prices of 30 active U.S. stocks representative of the overall economy.  NASDAQ Composite Index measures all NASDAQ domestic and international based common type stocks listed on The NASDAQ Stock Market. Today the NASDAQ Composite includes approximately 5,000 stocks, more than most other stock market indices. Because it is so broad-based, the Composite is one of the most widely followed and quoted major market indices. Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index which includes the 3,000 largest companies in the U.S., based on market capitalization. As of the latest reconstitution, the average market capitalization was approximately $762.8 million; the median market capitalization was approximately $613.5 million. The largest company in the index had an approximate market capitalization of $2.0 billion and a smallest of 218.4 million.  Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.  Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.  Government bonds are guaranteed by the U. S. Government and, if held to maturity, offer a fixed rate of return and fixed principal value. Securities offered through Kestra Investment Services, LLC (Kestra IS), Member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Offit Advisors is not affiliated with Kestra IS or Kestra AS. Offit Advisory Services, LLC is a tax firm but neither Kestra IS nor Kestra AS provide legal or tax advice and are not Certified Public Accounting firms.For more information on the Five Star Wealth Manager and the research/selection methodology go to: www.fivestarprofessional.com. Investor Disclosures: https://bit.ly/KF-Disclosures 6990 Columbia Gateway Drive Suite 150 Columbia, MD 21046, US Phone + Fax:  410 600 PLAN (7526) E – Office@OffitAdvisors.com W- www.OffitAdvisors.com   To schedule an appointment with us, click here! The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra IS or Kestra AS. The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. It is not guaranteed by Kestra IS or Kestra AS for accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.

On It with Offit - May 2023

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MAY | 2023 Offit Advisors On The Road  In April, Principal, Ben Offit visited various clients in the Southeast along with Ann Hoover joining via Zoom.  During the trip, Ben got to stay with long time teammate Barbara Owens at her home in North Myrtle Beach, South Carolina.  During the trip they both got to exercise on the beautiful beaches at 7 AM in the morning.  See picture above. proACTION℠ Planning Series Episode 6 | Sorting Through Your "Junk Box"  Simplifying your Financial Life Join Ben Offit, CFP®, for Episode 6 of the proACTION℠ Planning Series, where he discusses how Offit Advisors can help you organize your financial life. “Can't put into words how much we appreciate you both!!!” – Susan Leona Helmsley, widely dubbed the "Queen of Mean,” said, "We don't pay taxes. Only the little people pay taxes."  And in a fitting bit of chronology, the judge ordered her prison sentence to start on April 15. Time & The History Channel In 2021, India exported more in software ($133 billion) than Saudi Arabia did in oil ($113 billion). Level Up, February 6, 2022 “I am not worried about the deficit. It is big enough to take care of itself.” Ronald Reagan Gwyneth Paltrow not only won the $1 she requested in her countersuit against Terry Sanderson, but she also won the internet. Why was the trial so viral? Mainly because it produced so many soundbites that seemed like they were lifted from a White Lotus episode skewering the wealthy and aloof. After being asked how the crash inconvenienced her, Paltrow told the courtroom, “Well, I lost half a day of skiing.” Sanderson’s witnesses said that following the crash, he was unable to enjoy wine tastings. Morning Brew, March 31, 2023 Lincoln died. The Titanic sank, Ray Crock started McDonald's, and Babe Ruth hit his first home run, all on April 15th. Brainy History A blended study of 105,000 headlines and 370 million impressions concluded that “each additional negative word” in a news headline increased the click-through rate by 2.3%. Nature Human Behavior, March 16, 2023 “When you understand every opinion is a vision loaded with personal history, you will start to understand that all judgment is a confession.” Nikola Tesla Mixed Markets See Large-Caps and Bonds Advance; SMID Declined Highlights Concerns around regional banks caused stocks to slump and volatility to rise in the middle of March, but from that point on, equities have advanced, and volatility has declined through April.   The VIX Index, a measure of stock market volatility, rose to just below 30 on an intraday basis in mid-March, but it moved steadily lower from that point. It closed April at 15.78 – a 52-week low.   Large-cap stocks made gains in April, while small and mid-cap companies declined. International stocks were mixed as well with developed markets posting gains, but emerging markets sliding lower.   The yield on the 10-year U.S. Treasury closed April at 3.44% compared to March’s close at 3.48%. With the exception of municipal bonds, fixed income markets advanced in April.   Outside of the job market, economic data continued to show slowing activity. However, inflation readings also continued to improve in April, which could move the Fed toward the end of this rate hike cycle soon. Equity Markets In a modest change to the recent trend, large-cap value stocks outperformed large-cap growth companies in April, but the trend of large-caps outperforming small and mid-caps persisted during the month. Developed international stocks gained, but emerging market equities fell in what was a disperse return environment in April. See Table 1 for equity results for April and year to date.   Table 1   Index     April 2023     YTD 2023 S&P 500         1.56%         9.17% S&P 500 Equal Weight     0.34%     3.28% DJIA     2.57%     3.53% Russell 3000     1.07%     8.32% NASDAQ Comp.     0.07%     17.12% Russell 2000     -1.80%     0.89% MSCI ACWI ex U.S.     1.74%     8.72% MSCI Emerging Mkts Net     -1.13%     2.78% .   Source: Bloomberg For illustrative purposes only. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. The S&P 500 Index posted a solid gain of 1.56% in April but looking at the S&P 500 on an equal-weighted basis showed the average stock only gained 0.34%. Recall the S&P 500 Index is a market-cap weighted index and is becoming more and more dominated by mega-cap Technology companies. Those mega-cap Technology companies have done better than the average stock and by quite a significant margin when looking at year-to-date results. The tech-heavy NASDAQ Composite was only modestly higher in April but still has the strongest results so far this year. Meanwhile, the Russell 2000 Index, a measure of small-cap companies, continued to struggle in April and the strong gains at the start of the year have been largely wiped out with recent weakness in this space. On a year-to-date basis, significant divergences existed in the stock market. Large-cap growth stocks have been the clear winner so far in 2023. Despite gaining only 0.99% for the month, the Russell 1000 Growth Index was up 15.49% for the year to date. By contrast, the Russell 1000 Value Index gained a modestly better 1.51% in April, but it stands with a year-to-date gain of only 2.53%. Growth performed modestly better than value on a relative basis in small and mid-caps in April. However, small and mid-caps were both down during the month regardless of style as large-cap performance dominated the month and year to date. Fixed Income Yields have been on a roller coaster ride so far in 2023. In January, yields dropped rather sharply, but February saw yields rise dramatically as some inflation readings were “hot” and concerns grew that the Fed might need to raise rates even higher than previously expected. Equally as dramatic was the drop again in yields in March as there was a flight to quality with concerns about some regional banks. In contrast, April was somewhat calm as yields finished April only modestly lower compared to March. (Not to say there was not some volatility during the month itself.) The 10-year U.S. Treasury closed March at 3.48% and April at 3.44%. Interestingly, the 30-year U.S. Treasury yield closed March and April at an identical 3.67%. Outside of the 1-month T-Bill, shorter-term rates (1-year and under) generally rose in April, but longer-dated bond yields generally declined. The inversion of the yield curve continues. Please see Table 2 for fixed income returns for April and YTD. Table 2 Index     April 2023     YTD 2023 Bloomberg U.S. Agg     0.61%     3.59% Bloomberg U.S. Credit     0.79%     4.26% Bloomberg U.S. High Yield     1.00%     4.60% Bloomberg Muni     -0.23%     2.54% Bloomberg 30-year U.S. TSY     0.16%     6.16% Bloomberg U.S. TSY     0.54%     3.56% Source: Bloomberg. For illustrative purposes only. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. We believe the move higher in rates in 2022 has largely run its course at the longer end of the yield curve and we expect the 10-year yield to move lower as we go through 2023. While volatile, that has occurred so far in 2023 with longer-dated yields declining, which has set up a better return environment for bonds. In previous Fed rate hike cycles, longer rates have started to come down before the Fed has stopped raising the Federal Funds rate and that pattern has played out this year as well. We maintain our opinion that we are in the late innings of this rate hike cycle. We also maintain our long-standing position favoring credit versus pure rate exposure in this interest rate environment. Municipal bonds have been somewhat expensive on a relative basis, so weakness in this part of the market was not unexpected in April. Finally, we believe the role bonds play in a portfolio, to provide stable cash flows and to help offset the volatility of stocks in the long run, has not changed. Source: Clark Capital Benchmark Review, April 2023 S&P 500 Index is an unmanaged group of securities considered to be representative of the stock market in general. You cannot directly invest in the index. Dow Jones Industrial Average - The Dow Jones Industrial Average is a popular indicator of the stock market based on the average closing prices of 30 active U.S. stocks representative of the overall economy.  NASDAQ Composite Index measures all NASDAQ domestic and international based common type stocks listed on The NASDAQ Stock Market. Today the NASDAQ Composite includes approximately 5,000 stocks, more than most other stock market indices. Because it is so broad-based, the Composite is one of the most widely followed and quoted major market indices. Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index which includes the 3,000 largest companies in the U.S., based on market capitalization. As of the latest reconstitution, the average market capitalization was approximately $762.8 million; the median market capitalization was approximately $613.5 million. The largest company in the index had an approximate market capitalization of $2.0 billion and a smallest of 218.4 million.  Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.  Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.  Government bonds are guaranteed by the U. S. Government and, if held to maturity, offer a fixed rate of return and fixed principal value. Securities offered through Kestra Investment Services, LLC (Kestra IS), Member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Offit Advisors is not affiliated with Kestra IS or Kestra AS. Offit Advisory Services, LLC is a tax firm but neither Kestra IS nor Kestra AS provide legal or tax advice and are not Certified Public Accounting firms.For more information on the Five Star Wealth Manager and the research/selection methodology go to: www.fivestarprofessional.com. Investor Disclosures: https://bit.ly/KF-Disclosures 6990 Columbia Gateway Drive Suite 150 Columbia, MD 21046, US Phone + Fax:  410 600 PLAN (7526) E – Office@OffitAdvisors.com W- www.OffitAdvisors.com   To schedule an appointment with us, click here! The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra IS or Kestra AS. The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. It is not guaranteed by Kestra IS or Kestra AS for accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.

On It with Offit - March 2023

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MAR | 2023 Offit Advisors & The Greene Turtle Host March Madness Happy Hour We were thrilled to host a happy hour for tenants in our Columbia office building earlier this month to get to know our neighbors, enjoy some great food and drinks, and share a little bit of Financial Planning knowledge along the way. Special thanks to our co-host The Greene Turtle for helping to make this event possible. OA attends Kestra Ascend Conference in Austin The Offit Advisors team went to Austin, Texas in February for the Kestra Ascend Conference.  It was a great experience to go to our home office, interact with other advisors from around the country, and learn about the markets, economy, practice management, and have a great time together! The "Wealth Killers" Are you being impacted by credit card debt, student loans, or another "wealth killer?" Ben checks in to discuss.  50 Tips to Help You Retire by Age 50 Check out this article from GOBankingRates.com featuring Offit Advisors' Financial Advisor & Financial Planning Specialist Rachel Burk, who offers some tips on how to retire by the time you turn 50. Read More proACTION℠ Planning Series Episode 5 | Emergency Funds; How to Use & Structure Them Join Ben Offit, CFP® and Laura Sendldorfer, CIC to better understand how you can use and structure an emergency fund to protect you and your family when the unexpected happens. Apartment rents fell in every single major metropolitan area in the U.S. over the past six months through January. This is the first time in five years that rents fell every month over a six-month period. The Wall Street Journal, February 27, 2023   Since 2007, the U.S. Senate Select Committee on Ethics, which investigates allegations of misconduct by Senators and staff, has received 1,523 complaints that alleged rule violations. Over the course of the past 16 years, the committee has voted to issue disciplinary sanctions in zero cases. Raw Story, February 22, 2023   Spain's government has been shamed after spending millions on trains because they don’t fit through its tunnels. In June 2020, Spanish railway giant Renfe commissioned the manufacturing of 31 trains with dimensions that have now been discovered not to conform to the railway network on which they were going to travel. Express, February 13, 2023   U.S. healthcare spending grew 2.7% in 2021, reaching $4.3 trillion or $12,914 per person. As a share of the nation’s Gross Domestic Product, healthcare spending accounted for 18.3 percent. CMS.gov, December 15, 2022   “Winter is not a season, it’s an occupation.” Sinclair Lewis   “Bad times traditionally produce good books” Salmon Rushdie Inflation Fears Rattle Market as Stocks and Bonds Decline in February Highlights February saw stocks and bonds give back some of the strong gains from January after some economic data showed a rather “hot” economy. After hitting a 52-week low at the very beginning of February at just over 17 on an intraday basis, the VIX Index closed February at 20.70 as volatility rose. The 10-year U.S. Treasury yield closed January at 3.52%, but as fear grew that the Fed might stay more aggressive, it spiked to just below 4% during the month. It closed February at 3.92% and bonds struggled as rates rose. The FOMC raised rates at its first meeting of the year on February 1 by 0.25% as expected. The “step down” in rate hikes continues and we believe we are in the late innings of this rate hike cycle. Economic data continued to be mixed but a strong payroll number and higher than expected inflation readings fueled concerns that the Fed will likely need to raise rates higher and keep them there for longer than previously expected. We seem to be in a “good news is bad news” cycle as it relates to the economy and potential monetary policy action. Equity Markets   Index  Feb 2023     YTD S&P 500    -2.44%     3.69% DJIA    -3.94%     -1.13% Russell 3000    -2.34%     4.39% NASDAQ Comp.    -1.01%     9.61% Russell 2000    -1.69%     7.89% MSCI ACWI ex U.S.    -3.51%     4.32% MSCI Emerging Mkts Net    -6.48%     0.90% For illustrative purposes only. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. The trend from January of outperformance of small-caps and growth stocks continued in February despite declines across the board. However, January gains were enough to keep all the major indices, except for the Dow Jones Industrial Average, in positive territory year to date. As interest rates rose during February, the U.S. dollar strengthened and that created a headwind to international stocks. Emerging markets were particularly hard hit in February and were able to only hold onto modest year-to-date gains. The broader measure of international stocks, the MSCI ACWI ex U.S. Index, was also among the hardest hit areas in February, but it continued to hold onto solid gains year to date after a strong start to the year in January. Growth outperformed value in February continuing the trend from January. For example, the Russell 1000 Growth Index declined -1.19% for the month, while the Russell 1000 Value Index fell -3.53%. Small-caps fared better than large-caps in February as can be seen in Table 1, but growth also outperformed on a relative basis in the small-cap space. The Russell 2000 Growth Index slipped -1.08%, while its value counterpart fell -2.31%. Please see Table 1 for equity index returns for February and year to date. The VIX Index hit a 52-week low in early February, just above 17 on an intraday basis (after the Fed raised rates by 25 basis points), but that gave way to higher volatility during most of the rest of the month as stocks weakened. The VIX Index closed February at 20.70, higher for the month and just about 1 point lower than where it ended 2022. Fixed Income   Index    Feb 2023    YTD Bloomberg U.S. Agg    -2.59%    0.41% Bloomberg U.S. Credit    -3.01%    0.69% Bloomberg U.S. High Yld    -1.29%    2.47% Bloomberg Muni    -2.26%    0.55% Bloomberg 30-year U.S. TSY    -4.45%    1.38% Bloomberg U.S. TSY    -2.34%    0.11% For illustrative purposes only. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index. February was a challenging month for bonds as rates rose rather dramatically. The 10-year U.S. Treasury closed January at 3.52% but it rose to 3.92% by the end of February and this backdrop of rising rates took a toll on bond returns. The more interest-rate sensitive parts of the bond market, like U.S. Treasuries, were most impacted by rising rates compared to those pockets of bonds that are somewhat less sensitive, like high yield bonds. However, bonds were weaker across the board in February and those declines took away much of the strong gains from January, but bonds are still positive so far this year. High yield bonds stand out with their strong relative performance in February and overall positive performance year to date. Please see Table 2 for fixed income returns for February and year to date. As we have previously stated, we believe the move higher in rates in 2022 has largely run its course at the longer end of the yield curve and we expect the 10-year yield to move lower as we go through 2023. Volatility is expected along the way and rates moved up in February, but we think the broader trend will be lower. As has happened in previous Fed rate hike cycles, longer rates have started to come down before the Fed has stopped raising the Federal Funds rate. The market seems to now be pricing in the idea that the Fed might raise rates higher and keep them at those levels for longer than previously expected. We maintain our long-standing position favoring credit versus pure rate exposure in this interest rate environment. We also believe that the role bonds play in a portfolio, which is to provide stable cash flows and to help offset the volatility of stocks in the long run, has not changed. Source: Clark Capital Benchmark Review, February 2022 S&P 500 Index is an unmanaged group of securities considered to be representative of the stock market in general. You cannot directly invest in the index. Dow Jones Industrial Average - The Dow Jones Industrial Average is a popular indicator of the stock market based on the average closing prices of 30 active U.S. stocks representative of the overall economy.  NASDAQ Composite Index measures all NASDAQ domestic and international based common type stocks listed on The NASDAQ Stock Market. Today the NASDAQ Composite includes approximately 5,000 stocks, more than most other stock market indices. Because it is so broad-based, the Composite is one of the most widely followed and quoted major market indices. Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index which includes the 3,000 largest companies in the U.S., based on market capitalization. As of the latest reconstitution, the average market capitalization was approximately $762.8 million; the median market capitalization was approximately $613.5 million. The largest company in the index had an approximate market capitalization of $2.0 billion and a smallest of 218.4 million.  Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.  Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.  Government bonds are guaranteed by the U. S. Government and, if held to maturity, offer a fixed rate of return and fixed principal value. Securities offered through Kestra Investment Services, LLC (Kestra IS), Member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Offit Advisors is not affiliated with Kestra IS or Kestra AS. Offit Advisory Services, LLC is a tax firm but neither Kestra IS nor Kestra AS provide legal or tax advice and are not Certified Public Accounting firms.For more information on the Five Star Wealth Manager and the research/selection methodology go to: www.fivestarprofessional.com. Investor Disclosures: https://bit.ly/KF-Disclosures 6990 Columbia Gateway Drive Suite 150 Columbia, MD 21046, US Phone + Fax:  410 600 PLAN (7526) E – Office@OffitAdvisors.com W- www.OffitAdvisors.com   To schedule an appointment with us, click here! The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra IS or Kestra AS. The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. It is not guaranteed by Kestra IS or Kestra AS for accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.

On It with Offit - February 2023

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FEB | 2023 For Current Clients, be sure to watch out from tax notices from Kestra, Fidelity, Assetmark, and various other investment firms.  You will need to include your 1099s and 5498s on your tax filing for 2022!   If you have a long term care insurance policy, you have some tax deduction opportunities! Learn More   If you are a business owner with a 401k you have some other tax savings opportunities!  Learn More Offit Advisors' Financial Advisor Rachel Burk Featured on Nasdaq.com  Check out this article from Nasdaq.com featuring Offit Advisors' Financial Advisor & Financial Planning Specialist Rachel Burk, who lends some key insight to an article entitled Want a Higher Savings Rate? Ask Your Bank for a Raise. Read More Ben Featured on The Financial Advisor's Workshop Podcast with Brian Kasal Join Ben Offit and Host Brian Kasal on the Financial Advisor's Workshop podcast for Episode #36 | The Real Risk Is Not Being Ready For When The Market Rebounds. Listen Now proACTION℠ Planning Series Episode 4 | Mortgage Planning and Refinancing Join Ben Offit, CFP® for a crash course in mortgage planning, and discover what you should consider before refinancing. Shell became the latest oil giant to report eye-watering profits last year. It earned nearly $40 billion in 2022, making last year its most profitable in its 115-year history. Morning Brew, February 3, 2023   As of last Monday morning, Jan 16, the Russell 3000 benchmark for the entire U.S. stock market was up about 4.85% over the three-month period since late October 2022. By contrast, the MSCI World ex-U.S. index has surged more than 19%, while the pan-European Stoxx 600 was up more than 12%. CNBC, January 24, 2023 Several states are raising their minimum wages this year. The tight labor market has forced employees' wages that are much higher than the legal minimum. Average hourly pay for nonsupervisory retail workers rose 4% in December from a year earlier, to $19.93. The Wall Street Journal, January 24, 2023   The San Antonio Zoo is offering a special Valentine’s Day greeting for exes who just won’t bug off. For $10, the zoo will name a cockroach after your not-so-special someone and feed it to an animal. Those not into bugs can choose a rodent for $25 instead. Donors can opt to send their ex-boo a digital Valentine’s Day Card informing them that a cockroach or rodent was named after them and fed to an animal. Last year they received more than 8,000 donations from all 50 states and over 30 different countries. CNN, January 29, 2023   In October of 2022, billionaire Larry Ellison was pulled over for running a stop sign and speeding on the Hawaiian Island of Lanai – which is 98% owned by Ellison. RepublicWorld, January 13, 2023   “A lie can travel halfway around the world while the truth is putting on its shoes." Mark Twain S&P 500 Index is an unmanaged group of securities considered to be representative of the stock market in general. You cannot directly invest in the index. Dow Jones Industrial Average - The Dow Jones Industrial Average is a popular indicator of the stock market based on the average closing prices of 30 active U.S. stocks representative of the overall economy.  NASDAQ Composite Index measures all NASDAQ domestic and international based common type stocks listed on The NASDAQ Stock Market. Today the NASDAQ Composite includes approximately 5,000 stocks, more than most other stock market indices. Because it is so broad-based, the Composite is one of the most widely followed and quoted major market indices. Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index which includes the 3,000 largest companies in the U.S., based on market capitalization. As of the latest reconstitution, the average market capitalization was approximately $762.8 million; the median market capitalization was approximately $613.5 million. The largest company in the index had an approximate market capitalization of $2.0 billion and a smallest of 218.4 million.  Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.  Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.  Government bonds are guaranteed by the U. S. Government and, if held to maturity, offer a fixed rate of return and fixed principal value. Securities offered through Kestra Investment Services, LLC (Kestra IS), Member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Offit Advisors is not affiliated with Kestra IS or Kestra AS. Offit Advisory Services, LLC is a tax firm but neither Kestra IS nor Kestra AS provide legal or tax advice and are not Certified Public Accounting firms.For more information on the Five Star Wealth Manager and the research/selection methodology go to: www.fivestarprofessional.com. Investor Disclosures: https://bit.ly/KF-Disclosures 6990 Columbia Gateway Drive Suite 150 Columbia, MD 21046, US Phone + Fax:  410 600 PLAN (7526) E – Office@OffitAdvisors.com W- www.OffitAdvisors.com   To schedule an appointment with us, click here! The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra IS or Kestra AS. The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. It is not guaranteed by Kestra IS or Kestra AS for accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.

On It with Offit - January 2023

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JAN | 2023 Offit Advisors' Laura Sendldorfer, CIC Elected  FPA President-elect The team at Offit Advisors is thrilled to recognize one of our own. Congratulations to Offit Advisors' Financial Advisor Laura Sendldorfer, President-elect of the Financial Planning Association of Maryland. This remarkable achievement is a distinction that Laura has earned through her hard work, knowledge, and expertise, and we are excited to see her thrive in this leadership position at the FPA. proACTION℠ Planning Series Brand New Secure Act 2.0 Join Ben Offit, CFP® and Laura Sendldorfer, CIC® as they discuss the brand new Secure Act 2.0 main changes and some planning thoughts related to them. Ann and Ben, Just wanted to drop a follow-up note to personally thank you for your work with and continued support of my mom. It means a great deal to her and myself to have you overseeing and helping her through some of the planning and investment decisions, both when my dad first passed away and now moving forward in life.   It has become less daunting and intimidating to her and she actually was looking forward to going to the appointment today.  I enjoyed catching up with you both as well! Your patience, understanding and perspectives are very valuable and the relationship is very much appreciated. Thanks again. Ben S South Koreans consider a person a year old at birth and add a year to their age every New Year’s Day. A child born on New Year’s Eve can be considered to be two years old despite literally being born yesterday. Independent, April 12, 2019   When the S&P declines 20% or more in a calendar year, it’s been up the next year two-thirds of the time. The following 12 months have seen a median gain of 24.3%. Barron’s, December 23, 2022   New York’s waterways are the cleanest they’ve been in over a century, and whales, dolphins, sharks, seals, crabs, seahorses, and oysters are returning in droves. Future Crunch, December 16, 2022   Going back to the early 1970s, Fed hiking cycles lasted an average of 219 days (from the first hike to the first cut); we’re currently just beyond 260. Liz Ann Sonders, December 9, 2022   The invention of the transistor occurred 75 years ago this week and today it is considered the most manufactured item in human history. Marketplace, December 12, 2022   “Middle age is when you’re faced with two temptations, and you choose the one that will get you home at 9:00 o’clock." Ronald Reagan Steps to Become a Millionaire - Part II Hello Loyal Readership, We got a lot of positive feedback about our Ten Steps to Become a Millionaire, so we thought about a few other items that could be included and created a part two! So you want to be a millionaire? Follow these steps: 1) Own it and do it. Take responsibility for making it happen. Contrary to popular belief, most millionaires are self-made and 79% did not receive any inheritance of family wealth. 2) Start saving and investing towards it TODAY – if you assume a 7% annualized rate of return, you will need to save the following amounts to have $1M by age 65:      a. Age 25 - $400 per month      b. Age 30 - $580 per month      c. Age 40 - $1275 per month      d. Age 50 - $3200 per month 3) Obtain a Bachelor’s Degree – it’s not fully necessary, but statistics show that education helps. It’s true that some high school and college dropouts make it really big, and kudos to those people! However, this is the exception, not the majority. 88% of millionaires have a college degree (compared to 33% of the general population). Also, 52% have an advanced degree (compared to 12% of the general population). 4) Pick your career wisely – Certain careers have statistically showing a higher chance of translating into becoming a millionaire – accountants, actuaries, engineers, doctors, lawyers, zoologists, professors, and sales professionals. This is not to say that you cannot become a millionaire outside of these careers, but you may have a higher probability to do so in the above careers. 5) Work, over a long period of time – Yes, the vast majority of millionaires go to an actual job every day for 28 years before they hit the millionaire mark. 6) Save into your 401k – find a job or career that offers the opportunity to save into a 401k with a match, and take advantage of it right away. 80% of millionaires invested in their 401k. 7) Don’t carry credit card debt – if you spend more than you earn, you will end up with credit card debt that will compound against you with high-interest rates and make it nearly impossible to become a millionaire. Spend less than you earn and save more. Most millionaires never carry credit card debt. 8) Save into tax-deferred vehicles – This gives you a tax benefit that makes it easier to become a millionaire. Use things such as 401ks, IRAs, Roth IRAs, and cash value life insurance. 9) Become friendly with stocks and equities – One needs to earn close to a 7% annualized rate of return over time to become a millionaire. Holding cash earning 0-2% or bonds earning 0-4% will make it much harder to become a millionaire. 10) Be disciplined with investing – Stop messing around with fads (ie. Day trading, meme stocks, crypto, NFTs). These can feel and sound exciting, but these are not too much different than gambling and you are more likely to strike out with $0 than hitting the home run and making millions. Most millionaires invest consistently, with a disciplined and diversified long term portfolio. This focus on the long term is more boring, but it is what works more often. Embrace the boring! 11) Accept volatility – the stock market is down about 1 in 4 years. Market corrections (a drop of 10% of more) happen every year or so. Bear markets (a drop of 20% of more) happen every 5 years or so. Accept this and look at as an opportunity to buy low and take advantage of the short term discount! 12) No excuses, do it, now! - You can decide if you want to become a millionaire or not. Take action today. Start saving in an account today, ignore the noise, make it happen. Sources: Entrepreneur and Business Insider The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra IS or Kestra AS. The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. It is not guaranteed by Kestra IS or Kestra AS for accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.   S&P 500 Index is an unmanaged group of securities considered to be representative of the stock market in general. You cannot directly invest in the index. Dow Jones Industrial Average - The Dow Jones Industrial Average is a popular indicator of the stock market based on the average closing prices of 30 active U.S. stocks representative of the overall economy.  NASDAQ Composite Index measures all NASDAQ domestic and international based common type stocks listed on The NASDAQ Stock Market. Today the NASDAQ Composite includes approximately 5,000 stocks, more than most other stock market indices. Because it is so broad-based, the Composite is one of the most widely followed and quoted major market indices. Russell 2000® Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represents approximately 8% of the total market capitalization of the Russell 3000 Index which includes the 3,000 largest companies in the U.S., based on market capitalization. As of the latest reconstitution, the average market capitalization was approximately $762.8 million; the median market capitalization was approximately $613.5 million. The largest company in the index had an approximate market capitalization of $2.0 billion and a smallest of 218.4 million.  Russell 1000® Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.  Russell 1000® Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.  Government bonds are guaranteed by the U. S. Government and, if held to maturity, offer a fixed rate of return and fixed principal value. Securities offered through Kestra Investment Services, LLC (Kestra IS), Member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Offit Advisors is not affiliated with Kestra IS or Kestra AS. Offit Advisory Services, LLC is a tax firm but neither Kestra IS nor Kestra AS provide legal or tax advice and are not Certified Public Accounting firms.For more information on the Five Star Wealth Manager and the research/selection methodology go to: www.fivestarprofessional.com. Investor Disclosures: https://bit.ly/KF-Disclosures 6990 Columbia Gateway Drive Suite 150 Columbia, MD 21046, US Phone + Fax:  410 600 PLAN (7526) E – Office@OffitAdvisors.com W- www.OffitAdvisors.com   To schedule an appointment with us, click here! The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra IS or Kestra AS. The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. It is not guaranteed by Kestra IS or Kestra AS for accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.

Steps to Become a Millionaire; Part 2

Hello Loyal Readership,

We got a lot of positive feedback about our Ten Steps to Become a Millionaire, so we thought about a few other items that could be included and created a part two!  So you want to be a millionaire? 

Follow these steps:

1. Own it and do it.  Take responsibility for making it happen.  Contrary to popular belief, most millionaires are self-made and 79% did not receive any inheritance of family wealth.

2. Start saving and investing towards it TODAY – if you assume a 7% annualized rate of return, you will need to save the following amounts to have $1M by age 65:

1. Age 25 - $400 per month

2. Age 30 - $580 per month

3. Age 40 - $1275 per month

4. Age 50 - $3200 per month

3. Obtain a Bachelor’s Degree – it’s not fully necessary, but statistics show that education helps.  It’s true that some high school and college drop outs make it really big, and kudos to those people!  However, this is the exception, not the majority.  88% of millionaires have a college degree (compared to 33% of the general population).  Also, 52% have an advanced degree (compared to 12% of the general population).

4. Pick your career wisely – Certain careers have statistically showing a higher chance of translating into becoming a millionaire – accountants, actuaries, engineers, doctors, lawyers, zoologists, professors, and sales professionals.  This is not to say that you cannot become a millionaire outside of these careers, but you may have a higher probability to do so in the above careers.

5. Work, over a long period of time – Yes, the vast majority of millionaires go to an actual job every day for 28 years before they hit the millionaire mark.

6. Save into your 401k – find a job or career that offers the opportunity to save into a 401k with a match, and take advantage of it right away.  80% of millionaires invested in their 401k.

7. Don’t carry credit card debt – if you spend more than you earn, you will end up with credit card debt that will compound against you with high interest rates and make it near impossible to become a millionaire.  Spend less than you earn and save more.  Most millionaire never carry credit card debt. 

8. Save into tax-deferred vehicles – This gives you a tax benefit that makes it easier to become a millionaire.  Use things such as 401ks, IRAs, Roth IRAs, and cash value life insurance.

9. Become friendly with stocks and equities – One needs to earn close to a 7% annualized rate of return over time to become a millionaire.  Holding cash earning 0-2% or bonds earning 0-4% will make it much harder to become a millionaire.

10. Be disciplined with investing – Stop messing around with fads (ie. Day trading, meme stocks, crypto, NFTs).  These can feel and sound exciting, but these are not too much different than gambling and you are more likely to strike out with $0 than hitting the home run and making millions.  Most millionaires invest consistently, with a disciplined and diversified long term portfolio.  This focus on the long term is more boring, but it is what works more often.  Embrace the boring! 

11. Accept volatility – the stock market is down about 1 in 4 years.  Market corrections ( a drop of 10% of more) happen every year or so.  Bear markets (a drop of 20% of more) happen every 5 years or so.  Accept this and look at as an opportunity to buy low and take advantage of the short term discount!

12. No excuses, do it, now!  - You can decide if you want to become a millionaire or not.  Take action today.  Start saving in an account today, ignore the noise, make it happen.

Sources: Entrepreneur and Business Insider