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Writer's pictureNate Baim, MBA, CFP®

How Your Neighbor Affects Your Money


Enjoy this week's edition of the Planner's Beta


Beta (n) - climber's jargon that designates information about a climb This digest's purpose is to share observations, ideas, and treasures found this week which you may also find insightful. Sharing does not mean it's an endorsement. I am endorsing the pursuit of knowledge and exploration.



Views from our Mt. Whitney hike several years ago.
Views from our Mt. Whitney hike several years ago.


Something from Nate

Listen in to learn more about Pursuit Planning and Investments, LLC's, offerings. I offer financial planning and investment management for those who are navigating life's complex decisions. I help those who face trade-offs between paying down debt, saving for a home, starting a family, while at the same time saving for their advanced years. Plan your pursuit.


Something Fun

Whitney Has Turned Into an Overcrowded Catastrophe (Outside Magazine) - Well, ok, the title doesn't sound "Fun," but mountaineering is fun. It always requires being prepared. A buddy and I hiked Whitney several years ago. We did it after we summited some more complex mountains. Before we set out, we went to the local outfitter looking for some last-minute gear purchases. At the store, we examined a pair of micro-spikes. Due to our pride (and lack of cash in our wallets), we did not purchase any micro-spikes. We completed the summit and hike in one day, but we wished we had brought those microspikes. Always be prepared in the hills was the lesson from that trip.


Something about Financial Planning

Psychological Schemas & Spending: Children’s Birthday Parties (DataPoints) - Research shows six factors contribute to predicting your future wealth, independent of your age and income. Those six factors are confidence, frugality, focus, planning and monitoring, social indifference, and responsibility. Individuals may be focused and have a high sense of responsibility. But, often, who we live near and where we grow-up affect our perception of how to manage money. We develop schemas or mental models from the examples we see in our community and families. These schemas influence what is "baseline" in our relationship with money. Social indifference, the factor of not needing to live the lifestyle of others, is a critical factor in growing your wealth. Understanding your mental model of money helps you negotiate the social queues you receive about personal finances. 


Something about Investing / Economics

World Bank warns of global debt crisis following the fastest increase in borrowing since the 1970s (CNBC) - Students of economic history learn the economy goes through debt cycles. And usually, the end of the debt cycle does not have a happy ending. The World Bank states in its recent Global Economic Prospects report, governments and policymakers should be cautious about the current growth of debt. As of 2018, global debt to GDP was 230%, a record. With interest rates expected to stay low for the foreseeable future, this may continue to push off a debt crisis. But, if there is a sudden collapse of growth, then debt payments may not be made, and this could kick-off a mess. If a crisis emerges, many wonder if central banks will be able to soften the blow. With interest rates so low, they may not have many traditional remedies for dealing with a crisis. Central banks may need to use unconventional solutions in a future crisis if it comes sooner than later.

 

Have something on your mind? Feel free to schedule a free call with Nate.

 

Pursuit Planning and Investments, LLC is an Investment Adviser registered with the State of Oregon. All views, expressions, and opinions included in this communication are subject to change. This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. We may, from time to time, have a position in the securities mentioned and may execute transactions that may not be consistent with this communication's conclusions. Past results do not guarantee future results. Please contact us at 971-803-5948 if there is any change in your financial situation, needs, goals or objectives, or if you wish to initiate any restrictions on the management of the account or modify existing restrictions.  Additionally, we recommend you compare any account reports from PPI with the account statements from your Custodian.  Please notify us if you do not receive statements from your Custodian on at least a quarterly basis.  Our current disclosure brochure, Form ADV Part 2, is available for your review upon request, and on our website, www.planyourpursuit.com. This disclosure brochure, or a summary of material changes made, is also provided to our clients on an annual basis.


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