As the election draws near, stock and bond markets have been divided as to the significance of the outcome. A Trump victory injects policy uncertainty -  something markets generally dislike. And a Clinton presidency provides more policy certainty, but with recent revelations from the FBI,...

This year's presidential race has destroyed any remaining remnants of normalcy in our country's quadrennial 'peaceful' transition of power. The breadth of its chaos has shattered precedents in civility, legality, political polling, expectations, and reporting. Both candidates have survived what almost certainly would have led...

langley-cumbie We are pleased to introduce you to Langley Cumbie, our new Director of Client Relations at Beacon Wealthcare. She is busy invigorating our communications, event planning, marketing, and new client on-boarding processes.

Ever notice after a hurricane how some trees remain standing while others have fallen? More often than not it’s the rigid, unyielding trees that have fallen, while the more flexible survive. This fact of nature provides an important lesson for anyone who wants to plan for...

Among my fondest memories are those late Sunday night drives back to Hampden-Sydney College in Virginia, listening to Casey Kasem’s Top 40 Countdown. The music was great, but it was Casey’s back stories of the songs and singers that made the experiences so much richer. It felt like Casey, with his melodic baritone voice, was riding beside me in the car as he told his colorful stories of those early 70's artists and their music. He had a way of penetrating the mystique of those mighty rock stars of the day, making them seem real and approachable. The music took on new meanings when Casey described how it was inspired, how it fit into the history of the genre, and how it impacted millions of fans as he shared their letters.

[caption id="attachment_8098" align="alignleft" width="550"]earnings-life-cycle Source: “What Do Data on Millions of U.S. Workers Reveal about Life-Cycle Earnings Risk?” by Guvenen, Karahan, Ozkan & Song[/caption] If you've been reading our Brief for any length of time you may have seen the term "lifestyle creep" come up once or twice. It's a fascinating concept with an equally emotive name, and it has all sorts of implications in the practice of long-term financial planning. Lifestyle creep is, more or less, the natural but potentially dangerous rising standard of living that occurs over the course of a lifetime as salaries increase with age (to a point). It's potentially dangerous, because if it creeps too much, then retirement becomes prohibitively expensive to fund at the level of your creeped up lifestyle, since your rate of consuming dollars will by definition have outstripped your rate of saving dollars.

It’s a straightforward question that usually evokes an immediate, reflexive, and emphatic YES! And when pressed to define what rich means, we likely respond in monetary terms. After all, money is how we describe and measure many of the things we value in our daily lives. But, unless we are careful, the logical progression is to be driven to become richer, or borrow, in order to buy more of the things we value and enjoy.

One of the most important things to know about your financial relationship is whether you are a customer or a client. The differences may be subtle or obvious, but understanding them and feeling confident in the role you have accepted is vital in determining the quality of your financial future. As a customer, you are pitched to, or persuaded to buy. As a client you are advised. 'K'nowledge and 'R'esponsibility align differently in the two dynamics as illustrated below:

Did you know that you can buy a stroller (for a baby) made by Aston Martin? Did you know that it would cost you $4,000? I present this, for now, without comment. We'll come back to it momentarily.
Sometimes, when I tell people about the sort of work we do at Beacon, I get the sense that some view our primary mission and value as simply the building of wealth. And of course, that's part of what we do, and an important one at that. No one exactly hires us to make a nice La-Z-Boy shape out of their pile of money and just sit on it for 30 years. After all, the bank will pay them a couple pennies a year to do that. But the concept and reality of inflation would make that course of action pretty detrimental to most folks, so we build wealth for clients the best we know how, harnessing the power of the capital markets as efficiently as possible, and as effectively as human behavior allows.

The BrickMy wife is a genius, and I will tell you why. Whenever we go out to eat, no matter where we go, she is strictly "no phones." I don't care if we're having a conversation about movies and one of us might be tempted to IMDB an actress, or if out of habit I pull out my phone to tweet something dumb--doesn't matter. NO PHONES AT DINNER.