Most parents today recognize how different childhood is in the 2020s compared to childhood when they were growing up. Our ubiquitous connection to the internet and children having access to tablets, smartphones and social media at early ages can shorten their years of carefree innocence. If you are making a concerted effort to let your children, be children for as long as possible, you’re not alone. 

Parents rightfully rely on educators to help their children understand how the world works at an appropriate pace of growth and maturation. However, there is a large blind spot in modern primary and secondary education – financial responsibility. 

There are many children who graduate from high school without really understanding the ramification of things like student loans, credit card debt or compound interest. This leads to avoidable young adult mistakes like racking up significant credit card debt or neglecting retirement savings at an early age. 

There’s no reason you can’t both protect the innocence of your children and prepare them for a responsible financial future. There are a variety of educational tools and basic life lessons you can instill without making money or finances a terrifying prospect for your kids. 

There are some parents who think children should do chores or get good grades without needing some kind of monetary or material incentive. That’s certainly your right as a parent, but an allowance is a convenient way to start teaching financial life lessons. 

One of the most basic lessons even preadolescent children can learn is that waiting and saving pays off. Saving is not natural, as illustrated by the 

 The psychologists who ran the study gave participating children two choices: 

According to follow-up studies of the children, the ones who delayed gratification tended to have what the researchers described as “better life outcomes.” (Higher SAT scores, higher educational attainment, low BMI, etc.) 

Luckily, your children aren’t lab mice in a psychological study, so you can choose your own ways to encourage them to delay gratification in life. It’s not a bad trait to attempt to instill in your children, as research does indicate it can lead to a greater likelihood of future success. 

Even relatively young children can grasp the concept of money and exchange. It’s a concept they’ll naturally pick up on their own as they see you interact with the world. As they get a little older, they will be able to recognize the distinction between getting an immediate thing they want (like a candy bar) or saving up to get something that’s better but more expensive (a video game). 

You can do this exercise whenever they get a little extra money, whether it was from chores or a birthday card. When they’re tempted to buy that candy or a cheap plastic toy at the drug store, ask them whether they’d rather have that or the video game. Delaying gratification and saving isn’t easy for a lot of adults, much less children. You can help remind them of their options. 

Encourage Your Teens to Open Savings Accounts 

Thankfully, the credit industry has legal boundaries, and you can’t legally get a credit card until you’re 18. Unfortunately, many 18-year-olds aren’t prepared for the responsibility, or simply don’t understand the repercussions of this seemingly free source of consumer goods. 

You can encourage your child to open a savings account and get a special kid-oriented debit card as young as 13, which can have several benefits:

Good and bad credit aren’t intuitive concepts to understand. The average child isn’t aware that some shadowy “credit bureau” is watching everyone’s spending habits. They might not realize the long-term consequences of debt or missing credit card or auto loan payments until the damage has already been done. 

Explaining the dangers of debt isn’t always easy. The concept of an annual percentage rate (APR) isn’t a simple thing to explain, but you can create your own lessons about interest. 

If your child asks to buy a $2 candy bar in the checkout line of a store, but they’re out of birthday money, offer to buy it for them so long as they pay you back $3 next time, they get some cash. Their immediate reaction might be to gladly accept the offer, but when it comes time to pay, they might be annoyed at the arrangement they agreed to. 

Teaching consequences of debt and obligations at an early age may be a good way to help children make better financial choices when those decisions carry real-world weight. 

Do You Need Help With Financial Planning in Phoenix?

At Fullerton Financial Planning, we help many Phoenix families set up savings and investment plans to support future generations. If you want to maximize the inheritance your children or grandchildren receive, while also ensuring you have the money to live comfortably in retirement, our team can help. 

Call us at (623) 974-0300 to learn more. 

 How to Teach Your Children to Be Financially Responsible From an Early Age 

It depends on the context, your existing credit history and what rates competing lenders are willing to offer you based on your perceived credit risk. 

For example, there are multiple points at which you can potentially negotiate a lower interest rate on a mortgage. When you’re shopping around for mortgages, you can approach lenders with rates you’ve qualified for from other loan originators. 

You might do this if you’d prefer to keep your mortgage with your existing bank or credit union even though the initial interest rate, they offered you wasn’t very competitive. Reach out to them with evidence that another lender is beating their rate and they may adjust what they’re offering to keep you as a loyal customer. 

You can also try to negotiate a lower rate on credit cards but doing so successfully isn’t always easy. There are certain historical factors that will likely influence the credit card company’s receptiveness. Customers who have been around for a long time or who have relatively solid records of regularly making payments are more likely to achieve favorable results. 

Credit card companies make money off people who carry a balance on their cards, but they can potentially lose money if you never pay them back. If you temporarily getting a lower rate increases the likelihood of them getting paid back, they might be amenable to negotiations. 

Some mortgage lenders might offer “discount points.” These let you put more money down to get a slightly lower interest rate for the life of the loan. The equation is usually one percent extra down for 0.25 percent off your interest rate. Even relatively small decreases in interest at the start of your loan can save you tens of thousands of dollars during the 30-year life of a loan. 

There’s generally a parallel between what you’re willing to put down and the rates for which you’ll qualify. If you can afford it, increasing your down payment can have long-term benefits for your interest rate. 

Some of the tactics that work in mortgage interest rate negotiations can also be effective when dealing with credit card companies. Going into negotiations with proof that you qualify for lower rates elsewhere can give you a lot of leverage during negotiations. 

You shouldn’t try to mislead credit card representatives during negotiations. They can easily pull your credit history or investigate the rates you claim you could get elsewhere. Dishonesty may damage your reputation with the credit card company. 

There’s also a right and a wrong way to conduct negotiations in these circumstances. The frontline customer service reps you speak with likely don’t have the authority to unilaterally grant you a lower interest rate on your credit card debt. Ask for a supervisor or try to identify someone with the authority to authorize those types of changes. 

Also avoid being rude to the customer service representatives. These can be stressful issues, but the person on the other end of the line isn’t the cause of your interest rate. Being impatient and combative can stall your negotiations. 

If you have multiple cards, start your negotiations with the companies you’ve used longest. The trust you’ve built over the years, if you’ve historically been good at paying at least the minimum each month, may help in your negotiations. 

Some credit card companies are amenable to offering temporary breaks on credit card rates if you can make the case that the lower rate will help you get back on track. 

Can You Negotiate a Better Rate on Savings Accounts? 

This is an interesting question for long-term savers, especially if you’re concerned with market volatility or prefer to have a significant sum of money in liquid form for emergencies. Savings accounts are notoriously low interest. Banks are happy to charge you high interest rates on borrowed money, but they aren’t big fans of paying high interest rates to their customers.

It may be possible to negotiate your savings account rate if you can find the right person to talk to and you can make a compelling case that it’s in your bank’s best interest to do so. 

Many people bank at institutions where getting a higher savings rate simply won’t be possible. If that’s your situation, consider looking at alternative financial institutions that offer high interest savings accounts or investigate alternatives like CDs or bonds. 

Get Help With Your Retirement Savings and Long-Term Investment Strategies

The team at Fullerton Financial Planning are dedicated to helping Phoenix savers prepare for the future. Our fiduciaries excel at developing retirement saving and 

 to help people in all types of situations. 

Get clear answers to your investment questions by calling us at (623) 974-0300. 

 Is There a Way to Negotiate Lower Interest Rates With Creditors? 

A 401(k) is a retirement savings plan facilitated by an employer and managed by a third-party financial institution. Employees choose what percentage of their income they want their employer to contribute on their behalf. The money is deducted from the employee’s paycheck just like tax withholding. 

This method of retirement savings has helped millions of American workers prepare for retirement. It is far easier to save when you don’t have to make a conscious effort to do it on a regular basis. This set-it-and-forget-it approach to retirement savings (and investing) frequently leads to better outcomes in the long run. 

What Is a Tax-Advantaged Retirement Plan? 

Many retirement accounts offer some kind of tax advantage, including 401(k)s. Workers who use traditional 401(k) plans are making pre-tax contributions. That means the percentage of your income that’s being deposited into your 401(k) doesn’t have any taxes removed from it. At the end of the year, you don’t have to pay taxes on your 401(k) contributions, even though technically all those contributions come from your income. 

Everyone eventually does have to pay tax on their 401(k) disbursements (distributions) and withdrawals, but those aren’t intended to start until you’re 59 ½ at the earliest. Technically, you can withdraw money from your 401(k) whenever you like, but there is a steep IRS penalty on top of normal income taxes.

Although there are exceptions that will exempt you from early withdrawal penalties, they won’t exempt early withdrawals from income taxes. 

Although there are self-directed 401(k)s that can be used like any other brokerage account or IRA, most retirement savers who use 401(k)s are most likely to be given a handful of potential investment choices. 

Before making decisions regarding 401(k) investment picks, it’s important to understand one’s own risk tolerance. Some investment options carry significantly higher risk but also more growth potential. Others are quite low risk but will also grow at a slower pace than the riskier investment options. 

As a rule of thumb, most young retirement investors start out with high-risk investment strategies and gravitate to lower-risk options the closer they get to retirement. Protecting the value of your 401(k) is often more important than growth by the time you reach retirement. 

Most 401(k)s allow you to invest in specific mutual funds. These funds often include an S&P 500 fund, a large-cap fund, a mid-cap fund, a small-cap fund, international investment funds and funds specifically intended to be large-growth and high-risk as well as low-growth and low-risk, among others. 

Many 401(k) providers also offer more hands-off investment options where you simply choose a preferred 

, and the company manages the rest. For example, you may be able to set your retirement age and adjustments will be made to your 401(k) portfolio without the need for you to ever intervene. These options automatically alter your risk exposure and grow your money without you ever needing to rebalance your fund allocations. 

How you manage your 401(k) is a personal choice. Some people who don’t pay much attention to the market or investments may prefer a more turnkey approach. Others may want to micromanage their options and adjust their funds frequently. 

Many companies offer 401(k) matching as a hiring incentive and employee benefit. These matching funds are frequently in the three to six percent range. What that essentially means is an employer will match an employee’s contributions up to that percentage of their salary. 

If you made $60,000 and set your contribution to six percent to maximize your employer match, you’d be putting in $3,600 a year and your employer would be putting in $3,600 a year for a total contribution of $7,200 a year. 

Many employers match in the form of company stock, so they would technically be putting $3,600 of company stock into your 401(k) each year. In most cases, you are free to sell the company stock and move the proceeds into the other funds. 

Should You Maximize Your Employer Match? 

Some people believe that failing to maximize your employer matching funds is no different than leaving money on the table. However, every person is different. Some retirement investors believe they can beat their 401(k) investment options on their own through a self-directed brokerage account or some other investment strategy (like real estate). Others may simply not have the room in their budget to sacrifice that much of their check every pay period. 

Do You Want to Maximize Your Retirement Savings? 

Are you worried you haven’t saved enough for retirement? Are you wondering if there are better ways to grow your nest egg? Have you been saving in your 401(k), but aren’t sure it’s enough to maintain your quality of life during retirement? 

You don’t have to be in your 50s or 60s to have those questions, and it’s never too early to start planning for your future. 

 today at (623) 974-0300 to learn more about possible retirement investment strategies.

 Understanding 401k and the Affects It Has on Your Financial Future 

Raising children is a massive expense for most young adults. Current estimates of the cost of raising a child to the age of 18 is roughly $270,000. Luckily, new parents don’t have to shell out that sum of money at the start of their parenting journey. 

The health insurance policies of insured mothers will usually cover newborns for two weeks to a month, but you will need to add your baby to your health insurance policy as soon as possible. The birth of a child counts as a special circumstance in which you change your health insurance outside of the normal open enrollment period. 

You’ll likely be required to have the baby’s birth certificate and their social security number to complete enrollment. Avoid any lapses in coverage by finding out ahead of time what the grace period is on your coverage and how long the special enrollment period lasts. 

This is also a good time to review or modify your life insurance policies. Single people or couples without children, especially when they’re still relatively young, likely don’t dwell on life insurance. It’s not a fun topic of conversation.

It’s important to consider these things before delivery. While birth injuries and deaths are rare thanks to advances in modern medicine, they can and do still happen. Life insurance can help you find peace of mind that if the unforeseen happens, your surviving family members and your new baby will be protected.  

You can open a 529 plan as soon as your child (or your grandchild) has been assigned a Social Security Number. The importance of college varies from family to family, but if it’s something you want for your child in their young adulthood, there’s no reason not to start early. 

Not all 529 plans are made equal, so be sure to shop different state 529 plans and consider your options. Also keep in mind that contributions to a 529 plan are deductible in Arizona, which could be an additional incentive to start saving for your baby’s (or grandchild’s) future education. 

Arizona is one of only a handful of states where you can deduct contributions to any state’s 529 plan. In most states, you must enroll in your own state’s plan to claim deductions. 

Although 529 fees are not the only differentiating characteristic to consider when browsing plan options, it’s worth remembering the plan fees are annual. You will likely need to pay them for a minimum of 18 years. 

This, along with enrolling your new baby in your health insurance ASAP, is maybe the most important thing you can do ahead of your child’s birth. It’s also relatively easy to accomplish if you’re thorough.

Start calculating your projected expenses for things like diapers, baby food, formula, baby clothes, toys, baby proofing tools, accessories, etc. There are many new expenses you’ll have within the first couple years of a child’s life (babies are notorious for growing extraordinarily fast and will need things like new clothes often.) 

With a little bit of research on baseline baby consumption and expenses you can likely get a general idea of what you’ll need to spend each month. 

Also discuss childcare with your spouse or partner. Many young professional couples will need to pay for childcare, and it is likely going to be your biggest new expense in the years before your child can begin kindergarten. Know what you can afford and begin adjusting your spending habits accordingly, so you’re not blindsided by the cost. 

Like life insurance, estate planning is another unpleasant conversation, especially when you’re primarily focused on bringing a new life into the world. It’s still important to be prepared for the unexpected. You may want to consider scheduling a consultation with an estate planning attorney or researching boilerplate will options. If you have the assets and income to justify a trust, you may want to look into starting one. 

An emergency fund is an important thing for any young person or family to have, but it gets even more vital as you begin growing your family. If you haven’t set up a system for setting aside a little bit of your income each month for unpredictable financial hardship, now might be the best time to start. 

Talk to an Investment and Retirement Advisor in Phoenix 

At this point in a new family’s life there are a lot of different things they need to be saving for, from college savings plans and 

 can help you get a better grasp on your finances and ensure your assets are on a reliable path to sustained growth. 

 with a Fullerton Financial advisor today by calling (623) 974-0300.

 How to Financially Prepare for a Baby 

 How to Build Wealth 

How investments affect your taxes depends on the types of investments you have and what you did with them during the previous tax year. The funds and investments in normal brokerage accounts are treated differently than funds in pre-tax 401(k)s and after-tax Roth IRAs.

If you sell investments in your own personal brokerage account that isn’t specifically a retirement account, you might need to pay either short-term or long-term capital gains taxes. Whether your sale is taxed on the higher short-term rate or the (usually) lower long-term rate depends on how long you held the investment.

Investments sold after holding them for less than a year are charged the short-term capital gains tax, while investments sold after more than a year are taxed based on the long-term rate.

Short-term investments sold in a regular brokerage account are taxed like regular income at your tax rate (up to 37 percent for the highest income bracket). As of the 2021 tax year, the long-term capital gains tax rate is either zero percent, 15 percent or 20 percent, depending on your tax bracket.

The income level range for the 15 percent long-term capital gains rate is particularly wide. Any single person with an income between $40,401 and $445,850 should pay 15 percent on long-term capital gains (the profit from the sale of stock held for more than a year).

You can learn about the specific rates for your income and filing status 

401(k)s are tax-deferred retirement plans. All the money that your employer invests into your 401(k) skips the normal income step of having a percentage withheld. When April rolls around, you aren’t expected to pay income tax on any money you’ve put into your 401(k) over the year.

The money’s growth over the ensuing years or decades is also tax free. You don’t have to pay any short-term or long-term capital gains taxes on any dividends or interest accrued in your 401(k).

Instead, 401(k) disbursements are taxed like regular income when the time comes to begin withdrawing funds. The rate at which you’re taxed on 401(k) withdrawals depends on your income tax bracket. Those funds will never be subject to a capital gains tax.  

 to learn more about maximum contributions for your age.

Currently, 401(k) holders can begin withdrawing money penalty free once they turn 59½. The company managing a 401(k) generally withholds 20 percent from funds withdrawn early in order to maintain IRS compliance.

If you withdrew $1,000 from your 401(k) at 45, you’d likely only get $800. At tax time the IRS would also expect you to pay a 10 percent penalty for early withdrawal, so you’ll essentially only get $700 of the $1,000 you withdrew.

There are many scenarios in which the penalty is waived, but you’ll still be expected to pay taxes on withdrawals as if they’re normal income. Those 

Generally, early 401(k) withdrawals are best avoided. If you’re thinking about withdrawing money early to take a trip to Europe or pursue your dream of opening a coffee shop, art studio or some other small business, consider speaking with an investment advisor or personal tax planner first. They can explain your options and the potential repercussions so you can make an educated decision.

This depends on whether you have a regular IRA or a Roth IRA and when you start withdrawing funds. The 59½ rule applies to all qualified retirement savings plans, including IRAs. If you withdraw money before that age, you will need to pay the 10 percent penalty fee at tax time.

Roth IRAs are a partial exception. You must only pay the penalty for early Roth IRA withdrawals if you take earnings from the account.

Traditional IRAs are pre-tax dollars like a 401(k). Roth IRAs are post-tax dollars. When you withdraw money or take disbursements from a traditional IRA, you’ll need to pay taxes on it as income. You generally don’t have to pay income taxes on withdrawals from a Roth IRA.

One of the benefits of a traditional IRA are tax deductible contributions. You don’t have the option to deduct Roth IRA contributions from your yearly taxes. The tax-free Roth IRA withdrawals also only go into effect if you’ve had the account for at least five years.

Want to Understand How You Can Maximize Tax Savings With Your Retirement Investments?

At Fullerton Financial Planning, we are committed to helping our clients develop tax-efficient retirement 

. We’ve even incorporated estate planning professionals into our team to ensure our clients have all their 

If you’d like to learn about the most effective way to grow your 

 while minimizing your tax exposure and safeguarding your legacy, request a consultation with our team. Call us at (623) 974-0300 to 

 It’s Tax Season! Do Taxes Affect Your Financial Portfolio? 

Bitcoin is the latest craze in the world of online trading and investment strategies. Some people have been turning to Bitcoin to invest for retirement or grow their money, to varying degrees of success. You may have heard of people making fortunes in Bitcoin and are now wondering if you should try to get on board with the crypto craze and make a few bucks yourself.

But what exactly is a cryptocurrency, and should it be a part of your retirement portfolio?

Cryptocurrency is a digital currency. While some of them can be used to make actual purchases, many are held solely for investment purposes. Essentially, you exchange real money for digital currency with ownership stakes and trades etched in a decentralized blockchain ledger. The cryptographic nature of the Bitcoin mining process and the decentralization of the blockchain means Bitcoin can’t be counterfeited, but it can potentially be stolen by hackers. 

The inherent risk and earnings potential of cryptocurrency has to do with fluctuations in the exchange rate. When you go to another country and swap your dollars for another currency, you may lose or gain money depending on the exchange rate and how valuable the foreign currency is.

Cryptocurrencies operate in a similar fashion, but the exchange rate fluctuations are much more unpredictable and volatile than traditional government-backed currencies. This is mainly because cryptocurrencies are decentralized, meaning banks and governments have no control over their value or how they’re exchanged.

Bitcoin remains the dominant cryptocurrency, mainly due to its high value, but there are several other options like Ethereum, Binance, Tether and more.

Yes, Bitcoin’s transition from obscurity to mainstream use, as well as the many upstart cryptocurrencies that have sprouted in its wake, have made cryptocurrency one of the fastest growing asset classes. An asset class is a grouping of similar financial securities. For example, cash is a type of asset class consisting of liquid funds, savings accounts and hard cash.

Although it may be tempting to lump crypto in with cash and cash equivalents, its decentralized nature, the way it’s exchanged and its reliance on blockchain technologies instead of government central banks makes it unique enough to stand on its own.

As a result, more people are considering diversifying their investment portfolios with Bitcoin and other more affordable cryptocurrencies.

Whether Bitcoin should be in your investment portfolio is dependent on a lot of investment factors and risk tolerances that are unique to you. However, before you exchange your dollars for Bitcoin or another cryptocurrency, there are a few things you should know before deciding to buy.

Cryptocurrencies are subject to extreme fluctuations. This could lead to significant gains or devastating losses depending on where you are in your crypto investment journey. More hopes have been dashed thanks to crypto in recent years than just about any other investment opportunity. This is partially because inexperienced investors, often young people, have seen cryptocurrencies (as well as things like NFTs) as low-risk ways to get rich quick.

Unlike equities where valuations and investment outlooks are based on tangible things like balance sheets, consumer demand, intellectual property, business governance, etc., cryptocurrency valuations are based solely on demand.

Although the cost of an equity, bond or commodity can’t be perfectly predicted by its underlying fundamentals, those can at least inform market valuations. Cryptocurrencies generally don’t have that luxury.

If you have money to spare and enjoy risky “gambling,” Bitcoin and other cryptocurrencies may be a fun alternative to equities. However, if you’re looking for a steady, reliable and more predictable retirement investment, you may want to consider other options. That doesn’t mean its bad to have any cryptocurrency exposure in your portfolio, but you should speak with a financial advisor to ensure you’re minimizing your risk.

Cryptocurrency is also an attractive target for online fraudsters. Scammers and hackers may find it easy to get ahold of your personal information and drain your entire digital wallet. While traditional banks and financial institutions take great measures to protect you from fraud, and are usually insured, cryptocurrencies aren’t government-regulated, thus there is no guarantee you’d ever get your money back.

Thinking About Diversifying Your Investment Portfolio? Get Help From an Experienced Financial Planner in Arizona

Knowing where and how to invest your money can be a daunting task, especially when you and your family’s future relies upon the outcome of your choices. You don’t have to go through this process alone. At Fullerton Financial Planning, our financial advisors will help you 

 to ensure your portfolio reflects your unique life goals.

For more information, call our Peoria office at (623) 974-0300, our Tempe office at (480) 912-4500 or fill out our 

 Should Bitcoin Be in Your Retirement Portfolio? 

The growing demand for copper is elevating this red-orange metal to new heights. But why exactly is copper gaining so much importance in industrial applications, and how can you potentially benefit from the present copper supply gap?

Copper is no stranger to humans. It’s been in use for over 10,000 years and can be found on several continents. While Chile, Peru and China are the top three suppliers of copper, the United States isn’t too far behind. Interestingly, the largest American copper mine is in Morenci, Arizona.

Unlike gold or silver, copper is not a precious metal. Despite being a base metal, it’s still a vital asset among many industries in both developed and developing countries. It’s the second best (after silver) conductor of heat and electricity and is used to build pipes, wiring, radiators, pots and pans and more.

In developed countries, copper is a popular component of green energy technologies. The metal is currently in high demand among electric vehicle manufacturers and is also used to produce solar panels and wind farms. Electric vehicles require significantly more copper wiring than traditional gasoline engine vehicles.

The average copper content in an electric vehicle battery is around 183 pounds. The U.S. Energy Information Administration (EIA) forecasts that global EV production will 

increase from 0.7 percent of the global fleet in 2020 to 31 percent by 2050.

 This means auto manufacturers will be dramatically increasing their copper acquisitions in coming years.

However, it’s the wind and solar energy systems that are the biggest copper guzzlers. A single solar power plant has around 5.5 tons of copper per megawatt of power generation, while a wind turbine contains approximately 800 pounds of copper.

Manufacturers will need millions of tons of copper if they want to continue to realize their ambitious plans to electrify and decarbonize the world.

Copper is an abundant metal found on almost every continent. It’s also recyclable, so you may be wondering why the current copper supply isn’t adequate to demand, especially as older electronics are decommissioned and recycled.

Since previous generation electronics didn’t contain nearly as much copper, and not all of those devices make it to recyclers, there’s simply nowhere near enough recycled copper to meet current needs.

While recycling copper is relatively easy, mining copper presents a challenge. Due to low copper prices in recent years, miners have been slow to invest in building new mines or expanding current ones.

With the increasing demand for copper and a shortage of worldwide producers, the supply won’t be able to meet the rising demand, resulting in a supply gap. Eventually, more mines will be built, and the gap will close. However, until the supply catches up with the demand, the price of copper may increase significantly.

Can You Benefit from Investing in Copper?

While it’s hard to predict when the copper supply gap will be in full swing or how long it will last, the slow but steady shift toward green technology suggests copper consumption will only grow in the coming decades.

Investing in copper might be a smart move for some investors, but it depends on your unique situation. Buying copper isn’t the only way to invest in the commodity. As with other precious metals, investors can choose to instead invest in companies that mine copper or those that hold large copper reserves. There are also copper ETFs that can be bought, sold or held like stocks.

Just like with any other investment, there are risks associated with investing in copper and other commodities. You should always speak with your investment advisor and do your own research before making investment decisions.

Plan Your Long-Term Investments with the Help of a Knowledgeable Financial Advisor in Arizona

If you’re striving to create a better future for you and your loved ones by making wise investments, the financial experts at Fullerton Financial Planning can help you decide 

Schedule a consultation by calling our Peoria office at (623) 974-0300, our Tempe office at (480) 912-4500 or fill out our 

 Is It Possible Copper Will Be More Important for the Future Than Precious Metals? 

Tips for homebuyers fall into a variety of categories. The advice a young, first-time homebuyer needs might not be relevant to an older homebuyer who is purchasing their third, fourth or fifth property. However, there are some universal best practices that make purchasing a home or getting a mortgage easier and more affordable. These tips include things like:

There’s also a separate set of tips and tricks for retirees, soon-to-be retirees and people who are thinking ahead and looking into rental properties. Rental properties can be an effective option for people looking for steady supplemental income in retirement and a reliable store of value and inflation-adjusted wealth.

Depending on your expenses and the number of properties you’re thinking about purchasing, you might be able to support your lifestyle on rental income or at the very least supplement your other retirement income (pensions, 401(k)s, IRAs, etc.). Some common tips for investment property purchases include: 

 properties will likely depend on your age and where you’re at in life. Property management companies can potentially take on many tasks like finding tenants, collecting rent and maintaining the property. Alternatively, you could take on those duties yourself to avoid management fees. It all depends on how much supplemental income you need or want and the amount of time and effort you want to invest into being a landlord. 

Things do break in rental properties and eventually need to be replaced. If you buy three rental properties, that’s an extra three HVAC systems, roofs and landscapes to maintain. Significant unexpected costs can arise and it’s important to budget for those things. 

People who are buying a home have many financing options. Rental home shoppers can potentially get a single loan to finance the purchase of multiple investment properties. That often ends up be being easier than obtaining separate mortgages for multiple properties at the same time, which can make lenders leery. 

Both Fannie Mae and Freddie Mac have investment property programs that let you buy multiple properties (usually up to 10). You might also qualify for an FHA or VA loan for investment properties if you meet eligibility requirements. 

If you’re buying a home to be your primary residence, you have even more potential options. You can apply for a conventional mortgage through private lending institutions like your credit union, bank or independent mortgage lenders. 

In Phoenix, Scottsdale and Tempe, the current 

 is $647,200. Any financing over that amount is considered a non-conforming jumbo loan. The conforming loan limit is higher in high-cost areas, and the conforming amount can vary depending on the number of properties being purchased. 

How Should You Prepare for Your Mortgage Application? 

Are You Looking for a Reliable Retirement Investment Strategy or Long-Term Financial Plan? 

Phoenix retirement savers and investors may benefit from a free consultation with financial advisors at

. We would be happy to discuss ways you can save for retirement or establish supplemental income to sustain your lifestyle during your golden years. Call us at (623) 974-0300 to

 Financial Tips and Tricks to Use When Buying a House or Signing a Mortgage 

Bequeathment isn’t always simple. Depending on your life and the things and people you care about, you might be forced to make some hard decisions. Divorces, children from multiple marriages, grandchildren and personal philosophies on charity or generational wealth can pull you in multiple directions. 

There are no guides to help you objectively determine who should get your money and assets when you’re gone. It’s a decision every person should have a right to make for themselves. 

However, there is one generally accepted best practice when it comes to inheritance – have a legally binding plan. 

Probate can be messy, and it may result in your money going to the wrong people or places. Not only do you lose control over how your assets are distributed if you die with no estate plan in place, but your surviving children, siblings, spouse, exes, grandchildren and relatives may get into bitter legal disputes over who should get what. The more detailed instructions you can provide, the easier the estate process will be for your inheritors. 

Should You Put Your Assets Into a Trust? 

If you speak with a financial planner, they may recommend putting many of your assets into a trust. There are two primary trust categorizations: revocable and irrevocable. Under those two umbrellas are many other different types of trusts, each of which serves a specific purpose. Some trust options include charitable trusts, generation-skipping trusts or special needs trusts for a dependent or family member.

Your trust is always managed by a trustee, whether you’re living or dead. The trustee can be a person or an organization. They are responsible for managing the assets according to your (the trustor’s) wishes. You can be both the trustor and the trustee, and you can name beneficiaries of a trust. 

Trustors have wide latitude on the assets they can transfer into a trust. Traditional investments like stocks and bonds, real estate, business ownership stakes and even collectibles can all be put into a trust. When  you pass away, the trust is immediately passed on to beneficiaries or can continue to be managed by co-trustees. 

Unlike wills, bequeathing through a trust can prevent your family or beneficiaries from needing to go through the traditional probate process. It can be easier to ensure your wishes are followed as you intend with a carefully designed and properly executed trust. 

What’s the Difference Between a Trustee and an Executor? 

The trustee is specifically tasked with managing a trust and can be the trustor themselves. An executor is solely in charge of administering a person’s estate after their death. An executor can be named in a person’s will as the individual who will handle the dissolution of their assets and liabilities. 

An executor can also be a co-trustee and/or be put in charge of disbursing assets in a will according to the estate owner’s wishes. You’re able to leave specific instructions on who you want in charge and what you want them to do after your death if you have a well-drafted will and trust documents. 

Things to Keep in Mind When Choosing Beneficiaries 

Can Fullerton Financial Help With My Estate Plan? 

We work with estate planning professionals to ensure your 

 are optimized for your needs today and in the future. Our goal is to make the dispersal of your assets to beneficiaries as seamless, smooth and unencumbered as possible. 

You can find out how we build estate structure into retirement plans by calling us at (623) 974-0300 for an 

 Deciding Who Should Inherit Your Wealth When You Die 

Interest rates and investments have a complicated relationship. The value of fixed-interest bonds usually decrease when interest rates rise, while the value of floating-rate bonds might increase.

Higher interest rates are often good for financial institutions, which is why they sometimes perform well when interest rates go up. Theoretically, higher interest rates should reduce economic expansion and earnings growth and therefore be bad for equities, but there are a nearly endless number of variables that also play a role in the performance of individual stocks and the market in general.

Why Would Higher Interest Rates Affect Stocks?

Low interest rates essentially mean it’s cheap for businesses to borrow money. In simple, general terms, affordable money means more growth. That’s why low interest rates tend to lead to higher stock prices. When the federal reserve increases interest rates and makes borrowing less attractive, growth might slow.

The Federal Reserve and the central bank have a few levers they can pull to affect interest rates and liquidity. When inflation is high or there are concerns about impending, persistent inflation, the Fed may attempt to correct it by setting higher interest rates on the money the central bank lends to commercial banks and lending institutions.

The higher cost of money discourages borrowing, reducing the growth of money in the economy and reducing inflationary pressures.

Interest rates can affect the attractiveness of certain types of bonds. Although you might assume higher interest rates would mean better yields and higher prices for bonds, that’s often not the case.

For example, fixed-interest bonds, like U.S. Treasury Bonds, are a more highly valued investment option when interest rates are going down since the bonds are locked in at a higher, more attractive yield rate. They’re less attractive when rates are going up.

State government and corporate bonds tend to track treasury bonds, which in turn impacts bond rates across the globe.

On the flip side, floating-rate bonds (also referred to as floating-rate notes) that are rate adjusted may outperform fixed-rate bonds when the Fed increases interest rates.

What Does Post-Pandemic Inflation Have to Do with Interest Rates?

Inflation, in simple terms, means there’s more demand and money than there is supply. If two people want the same car, the price of the car will go up.

Government spending in response to the pandemic resulted in trillions of dollars being rapidly injected into the economy, including directly into many consumers’ pockets. Generous unemployment benefits made it harder for employers to attract workers when lockdowns began to ease. Wages naturally had to go up to attract workers. Higher wages meant increased prices for goods and services.

Pent up demand, increased money in consumers’ pockets and persistent shortages in consumer goods have inevitably led to inflation. Low interest rates have also made borrowing money extraordinarily attractive – creating a perfect storm for inflationary pressure.

The Federal Reserve has suggested they’re 

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