Cortburg Speaks Retirement

Financial Considerations When Buying a Car

December 02, 2020 Miguel Gonzalez, MBA, AIF®, CPFA®, CRC® Season 2020 Episode 12
Cortburg Speaks Retirement
Financial Considerations When Buying a Car
Chapters
0:00
Introduction
0:55
Weekly Educational Update
3:35
Week on Wall Street
7:26
Weekly Tax Tip
9:12
Healthy Lifestyle Advice
11:08
Green Living Idea
12:51
Quote of the Week
13:37
Conclusion
Cortburg Speaks Retirement
Financial Considerations When Buying a Car
Dec 02, 2020 Season 2020 Episode 12
Miguel Gonzalez, MBA, AIF®, CPFA®, CRC®

Cortburg Speaks Retirement

Cortburg Speaks Retirement / Investment in Stock Market, Financial Planning, Retirement Planning, Money Management

1.Educational Update = Financial Considerations When Buying a Car
 
 2. Week on Wall Street


3.Tax Tip =  Stay Safe While Shopping Online

 4.Healthy Lifestyle Advice = Healthy Holiday Eating - Part 2

5.Green Living Idea = Eco-Friendly Holiday

6. Quote of the Week

Show Notes Transcript Chapter Markers

Cortburg Speaks Retirement

Cortburg Speaks Retirement / Investment in Stock Market, Financial Planning, Retirement Planning, Money Management

1.Educational Update = Financial Considerations When Buying a Car
 
 2. Week on Wall Street


3.Tax Tip =  Stay Safe While Shopping Online

 4.Healthy Lifestyle Advice = Healthy Holiday Eating - Part 2

5.Green Living Idea = Eco-Friendly Holiday

6. Quote of the Week

INTRODUCTION

Welcome to Cortburg Speaks Retirement

An audio podcast about investing in the stock market, financial planning, money management and retirement planning.  Each Wednesday, we help investors at all stages of life learn how to grow and preserve their money from first job through retirement.

Now here is your host, Miguel Gonzalez.

 

HOST

Hello and welcome to the CORTBURG SPEAKS RETIREMENT audio podcast.   On this episode, I am going to help you buy a car, review last week on Wall Street, and provide you with tips on staying safe while you shop online.  In addition, we will finish our healthy holiday eating advice and how to be more eco-friendly during the holidays. 

 


 1st – weekly educational update
Financial Considerations When Buying a Car

 

Time to buy a car? Short of buying a house, this is one of the most important purchases you will make. It’s also one that you might be making several times throughout your life, comprising of thousands – sometimes tens of thousands – of dollars. 

If you think about it, you can probably imagine other things that you might want to prioritize, including saving for retirement, buying a home, or even some lifestyle purchases, like travel. Not to mention, having more money in an emergency fund may be handy if you have an unexpected expense. Thankfully, there are many choices for saving money by avoiding spending too much on your next car. Here are some things to think about. 

Buying a new car? Buying one that’s used might require more research and test driving, but under the right circumstances, it can be a better value. 

A trade-in might not always favor you. A dealership is one choice to consider when trading in a car. Another option is to try and sell your vehicle, yourself, directly to another person. If you do attempt a trade-in, however, avoid any major expenditures on the old car beforehand. Focus on getting the best price for the new car and leave the trade-in for the end of your negotiation.

Leasing vs. buying. If you like to have a new car every few years, leasing is an approach to consider. Leasing a car is like renting an apartment. You pay a monthly fee to use the car for a specific amount of time, usually two to three years. Monthly payments are typically lower than when you finance, since you are paying for the depreciation on the car while you drive it. In certain situations, lease payments may also have tax considerations. However, there are caveats to leasing. For one, a lease typically stipulates the number of miles you are permitted to drive during the course of the lease. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.

Shop around for interest rates, but consider credit unions. Credit unions tend to have more-favorable rates, as they are member owned. There are several other benefits to credit unions, including being based locally. There are many financing options, though, so make credit unions only part of your research.[i]

An automobile is a big-ticket purchase. It’s worth taking your time to make sure you’ve covered your bases in terms of making the most responsible purchase.   

 

2nd – Week on Wall Street 

Stocks surged last week, ignited by another COVID-19 vaccine announcement, encouraging economic data, and the easing of political uncertainty. 

The Dow Jones Industrial Average rose 2.21%, while the Standard & Poor’s 500 added 2.27%. The Nasdaq Composite index, which has led all year, gained 2.96%. The MSCI EAFE index, which tracks developed overseas stock markets, climbed 1.54%.[ii],[iii],[iv]

Dow Breaks 30,000

For the third consecutive week, markets opened on Monday to yet another announcement of a potential COVID-19 vaccine. 

Stock prices found additional support on news that President-elect Biden would be nominating Janet Yellen, the former Chair of the Federal Reserve, to be Secretary of the Treasury. Investors reacted well to the choice, encouraged by her previously voiced support for greater fiscal stimulus and relieved that a candidate less antagonistic to the industry was selected.

Positive momentum continued into the following day, driving the Dow Jones Industrial Average, S&P 500 index, and the Russell 2000 to record high levels, with the Dow closing above the 30,000 milestone.[v]

Stocks eased off their highs in pre-Thanksgiving trading, though they recovered some of those losses on Friday, as the S&P 500 and NASDAQ Composite closed with fresh record highs.[vi]

A Microcosm of the Economy

The economic outlook has been difficult to figure out due to conflicting signals. One day it’s a historic jump in economic growth; another day it’s a record high in new COVID-19 infections. Last week was a good illustration of this. Reports of healthy consumer spending, a solid rise in durable goods orders, and sales of new homes remaining near almost-14-year highs were balanced by a jump in new jobless claims, a decline in household income, and new state and local COVID-related restrictions.[vii]

Last week investors chose to see the glass half full and look past the near-term challenges the economy faces. 

 

THIS WEEK: KEY ECONOMIC DATA

Tuesday: Institute for Supply Management (ISM) Manufacturing Index.

Wednesday: Automated Data Processing (ADP) Employment Report.  

Thursday: Jobless Claims, Institute for Supply Management (ISM) Services Index.

Friday: Employment Situation, Factory Orders.

 

Source: Econoday, November 27, 2020

The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.

 

THIS WEEK: COMPANIES REPORTING EARNINGS

Monday: Zoom Video Communications (ZM)

Tuesday: Salesforce.com (CRM)

Wednesday: Splunk (SPLK), Snowflake, Inc. (SNOW), Crowdstrike Holdings (CRWD) 

Thursday: Marvell Technologies (MRVL), Dollar General (DG), Docusign (DOCU)

 

Source: Zacks, November 27, 2020

Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.

 

 

3rd – weekly tax tip
Stay Safe While Shopping Online

 

It’s the most wonderful time of the year for online shopping! Buy your holiday gifts with ease with these tips on how to protect your data online:

●       Don’t enter your credit card information if you’re connected to an unsecure Wi-Fi network.

●       Only shop at sites that you know and make sure they have an “https://:” URL (the “s” in the URL means that it’s secure).

●       Recognize phishing emails, never click on links you don’t know, and report scams that ask for financial information to the IRS. 

●       Keep your computer and security software up to date. 

●       Use strong, long, and unique passwords. Use a combination of letters, numbers, and special characters. 

●       Use multifactor authentication when available. These sites, like email servers and banking websites, will require a code be sent to your phone number to be able to log in. 

●       Encrypt sensitive data on your computer. 

* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS.gov[viii]

 

 

4th – healthy lifestyle advice
Healthy Holiday Eating: Part 2

 

We’re back with more healthy holiday eating tips to help you navigate all the delicious food, without adding inches to your waistline. 

●       Take 10 - Before you go back for seconds, take a 10-minute break. It can take close to 20 minutes for your stomach to inform your brain you’ve reached satiety, so if you eat too quickly or go back for that second helping right after you’re done with your first, you might end up overeating. Instead, get up, walk around, and maybe even mingle for 10 minutes, then see if you’re still hungry. 

●       Eat a Pre-Party Snack - If you’re on your way to a holiday party, eat a healthy snack before you go, so you don’t arrive famished and want to eat everything in sight. The best pre-party snacks combine lean protein with complex carbohydrates, such as an apple and peanut butter, a turkey sandwich, or a couple hardboiled eggs. 

●       Dust Off Your Dancing Shoes - One of the most fun ways to work off a few extra calories is to hit the dance floor! After you’re done eating, take some time to get moving and enjoy the music. If you’re at a party without dancing, go for a walk with friends and family between dinner and dessert. 

Tip adapted from Harvard Health[ix]

 

 

5th – Green Living Idea
Have an Eco-Friendly Holiday

There are many ways to save resources during the holidays and save the planet! Here are some of our favorite tips:

●       Make your own wrapping paper or reuse gift bags. Most wrapping paper isn’t recyclable because it has glitter, shiny patterns, and foils. Look for recyclable paper or use things like butcher paper or decorated newspaper. 

●       Buy energy-saving LED holiday lights. LED lights use 90% less energy, which means you save money and natural resources. 

●       Get a pesticide-free tree. Many Christmas tree lots grow pesticide-free or organic trees. Even more, look for trees that you can plant in your yard or a nearby park after the holiday. 

●       Shop small and support local businesses. Not only will you be making a difference in the lives of an individual or family, but these sellers usually rely less on the many forms of transportation that big box retailers use. Some DIY gifts even reuse materials, making them even more environmentally friendly. 

Tip adapted from Small Footprint Family[x]

 

6th – quote of the week

“December. A month of lights, snow and feasts; time to make amends and tie loose ends; finish off what you started and hope your wishes come true” 

- Unknown

 

Make sure to visit our website, www.CortburgRetirement.com.  Our site is filled with educational videos, eBooks, publications, and financial calculators designed to help you learn more about your finances.  As you search our site, send us a note regarding any questions you may have about any particular investment concepts or products. We will get back to you quickly with a thoughtful answer.

This is Miguel Gonzalez, Retirement Specialist and Managing Partner, with Cortburg Retirement Advisors signing off for this week’s educational update.  

 

DISCLOSURES  

Opinions expressed are subject to change without notice and are not intended as investment advice or a solicitation for the purchase or sale of any security. Please consult your financial professional before making any investment decision. 

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

CRC conferred by The International Foundation for Retirement Education.

Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through Private Advisor Group, LLC, a registered investment advisor.  

Private Advisor Group, LLC and Cortburg Retirement Advisors, Inc. are separate entities from LPL Financial.

Investing involves risk including possible loss of principal.


[i]https://www.creditkarma.com/auto/i/credit-union-car-loan/
[ii] The Wall Street Journal, November 27, 2020
[iii] The Wall Street Journal, November 27, 2020
[iv] The Wall Street Journal, November 27, 2020
[v] CNBC, November 24, 2020
[vi] The Wall Street Journal, November 27, 2020
[vii] The Wall Street Journal, November 25, 2020
[viii]https://www.irs.gov/newsroom/follow-these-tips-to-protect-data-when-shopping-online [ix] https://www.health.harvard.edu/blog/12-tips-for-holiday-eating-201212245718  [x]https://www.smallfootprintfamily.com/eco-friendly-holiday-tips  

Introduction
Weekly Educational Update
Week on Wall Street
Weekly Tax Tip
Healthy Lifestyle Advice
Green Living Idea
Quote of the Week
Conclusion