Smart Cents

401k plans during COVID 19-- reallocating to avoid volatility and/or short term loses because of sectors impacted by COVID is a personal decision. Consult your financial advisor for one on one advice. I am not comfortable offering that kind of advice to the masses....everyone's goals and risk tolerances are different. I am comfortable, however, offering the following...

If you are still employed and cash flow is 'okay' during these times -- please continue contributing to your retirement plan. At a minimum dollar cost averaging will help you 'buy more low' as the markets experience ongoing volatility.

If you are concerned about your current investments and/or investment mix --- use some common sense. Go to your 401k online statement-- take a look at the holdings you have invested in and use your own common sense.

During this economic pullback (dramatic understatement) what companies are going to suffer and what companies will benefit.

Benefit--- Amazon, Walmart, Kroger, PPE providers, how about the folks that make toilet paper...!! Buffett has touted common sense and investing in things that you understand-- there is no need for a Wall Street analyst to tell you some of the sectors that will benefit from COVID.

Suffer --- well that is pretty straight forward as well....Marriott (major hotel chains, where majority of properties are corporate run/owned), airlines, hospitality/recreation -- keep in mind that the movie makers tend to be large diversified companies beyond entertainment.

Take a look at the prospectus or google current holdings of your 401k investments -- you might reallocate based on what you find as the largest holdings within the investments.

Please do not turn into a market timer, but if you are close to retirement and a 20% drop would impact your assets --- at a minimum consider your current mix and strategy.

If your advisor does not currently help with your 401k mix -- ask them to. They do not get paid to do so -- but the vast majority are happy to help.

At a minimum do not stop contributing...if possible increase the amount going into your 401k.

Our Heroes -- the front line professionals putting their lives on the line during the COVID crisis are being fleeced in their retirement accounts.

Not to be harsh-- but ripped off, retirement money being wasted on unnecessary internal fees - and the 'rip off' is in the millions/billions of dollars---and the vast majority of our heroes have no idea...! Shockingly the industry and the government have done nothing about it. We call them our Heroes (rightly so) yet when it comes to their retirement plans our Heroes usually experience higher fees, lower net results and wasted investment dollars. It is extremely difficult to quantify (can do it on a one account at a time basis) but safe to say in totality it is in the 9 or 10 figures annually. Amazing that our "heroes" could get burned for a billion dollars a year and nothing has changed and very few speak of it.

"What are you talking about?" --- 403b plans vs. 401k plans. Look out for an in-depth explanation in the days to come. The issue is the use of annuities inside of 403b plans versus mutual funds or often in today's world using brokerage options in 401k...ETFs or individual stocks --which can make the cost differential even higher.

One example at a cost of 1.75% per year (extremely common)-- on a $100,000 - 403b the increased costs could be $1,750 annually -- see how we get to billions of dollars?

The majority of 403bs (often known as a TSA - tax sheltered annuity)-- which are offered to school teachers, police, fire departments, Doctors, EMTs -- many of our COVID Heroes -- along with other heroes...Universities, non-profits-- the list goes on---are wasting their money in a 'money for nothing' scenario. This has existed for decades and even with SEC efforts to make prospectus easier for the consumer...it goes on.

Why is the public not outraged? Why does the public sector not DEMAND change? Billions of dollars to investment providers bottom lines-- money stolen from our American Heroes.

Again, this topic has been addressed by mainstream media (Clark Howard, Motley Fool to name two that immediately come to mind) -- but wholesale change has not incurred and day after day, year after year insurance companies continue to take 'money for nothing'.

Please revisit this page in the next week to read for yourself -- this will be Topic 1 in an ongoing attempt to provide financial advice to the masses.

I was a personal financial advisor (for profit) for 15+ years and there are certain topics the public has to be reminded of (to facilitate change)...and there is information that everyone should be exposed to...and in my opinion...in a 'fee free' environment.

With that said -- in the weeks, months to come I hope to provide information on a number of financial topics. 401k vs. 403b, interest free loans to Uncle Sam, 'true' cost of investing and simple steps to increase cash flow---those 4 topics will be where I start.

Again, my motivation is to provide information/money management strategies everyone should know about without having to pay a financial planner. I am a fan of the profession -- Financial Planners work hard and deserve to be compensated -- but, for some reason, the public has a need for additional financial information. I admit the topics can be boring -- I am not popular at parties...!! -- but the amount of money simple actions can make....a bit of boredom is worth it.

Thank you for your time and your consideration. I look forward to my first informational post -- "401k vs. 403b and the fleecing of our Heroes...!!!" Enjoy the weekend.

Sba.org/funding-options That is the site for COVID business loans. There is still relief for business owners-payroll and sustinence funding. If you have used the programs and need more or need cash sooner-- reach out to me. I can assist with funds within 49 hours....our products include traditional term loans to cash advance products. Excellent credit to 'poor' credit can be approved. We can work something out for you and your business. Funds can be used to grow the business, payroll, survival mode or expansion. Easy underwriting, FICO not critical...from 10k to 5m might be available....why not inquire? Here or [email protected] or 404 632 3263. Thanks and stay tuned....next post....why do our 'heroes' get ripped off on their retirement plans-? If you have a 403b....please comeback and read - Our Heros Pay Dearly for their retirement plans...

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Will begin to add content to this page....advice from 17 years working as a financial advisor...things public still struggles with around finance....for free.

If you are a business owner that needs capital-- short term or long term -- let's chat.