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JAN. 12, 2024 • 5B
Dave Says...Guide them, but let them learn from their mistakes
BY DAVE RAMSEY, CEO, Ramsey Solutions, and an eight-time No. 1 national best-selling author, and host of The Ramsey Show
D
ear Dave, My wife and I have
started teaching our fiveyear-old son about money. Do you feel we should step in and fix things when he makes mistakes, or let him experience the consequences of his actions? It’s so hard on my wife, especially, to see him disappointed when he makes a mistake, and his plans don’t work out. Lane Dear Lane, I know this might sound mean to some folks, but sometimes a good finan-
cial disappointment when you’re young is the best thing that can happen to you. They’re hard to watch happen, or to experience, but often they’ll teach lifelong lessons. No decent parent wants to see their child sad or hurt, but reality is a pretty good teacher when it comes to learning how the world really works. One of the jobs of a parent is to look for teachable moments with their kids. Of course, when it
comes to teaching, there’s always a chance the student won’t learn the lesson well enough the first time around. I’m not sure how you’re doing things, but if I were in your shoes, I’d follow these steps. First, give him a chance to earn some money. In my book, that means work. No allowances! There’s a lot of self-esteem and value to be found in accomplishing a given task successfully. Then, once you pay him for
the work he does, you have another perfect chance for teachable moments, because you can help him learn about saving, spending and giving, and how to do all three wisely. It’s always hard on parents when they see their kids unhappy. I know we went through it with ours. As a parent and protector, you want to jump in and make everything okay. But the hard truth is that fixing or doing everything for
them is the easy way out. And in the process of doing that, a child will begin to develop a sort of learned helplessness. Sometimes, Lane, you need to love kids enough to not do things for them. Let them make some mistakes, experience the consequences, and fix things themselves. And it’s better for them to do all this while they’re still under your guidance and protection. —Dave
Stock Market Insights: Staying alert in the 2024 markets
DR. RICHARD BAKER, AIF®, is the founder of and an executive wealth advisor at Fervent Wealth Management. https://www. facebook.com/Dr.RichardBaker
B
e alert and active. Our daughter drove to Dallas this week along with five other cars for a young adult conference. One of the other girl’s cars was in a minor accident, and another girl
got a ticket for speeding in a small town in Oklahoma. She asked our daughter, “You were driving just like us, so why didn’t anything happen to you?” She replied, “Because I am a really alert driver and don’t get distracted.” Last year was good for the investors who didn’t get distracted. Stocks were even better than I expected in 2023. The Dow Jones finished at an all-time record high on December 28, and the S&P 500 almost hit a record high. Even bond portfolios finished strong. But getting those strong finishes wasn’t a smooth investing ride
for those paying attention. Stocks had three peaks (January, July and December) and two difficult valleys (February and October) but ended a furious late-year rally to reach its third peak. The market in 2022 and the first ten months of 2023 dealt with the repercussions of the Federal Reserve’s (Fed) attack on inflation. It wasn’t until November of 2023 that investors felt confident that the Fed had stopped its rate-hiking campaign. I think 2024 will be about the markets returning to a more normal cycle that is less dependent on Fed decisions. Inflation seems to be
under control enough that the Fed has finished raising rates. So, investors in the new year will need to focus on how to benefit from this Fed policy shift by overweighting into investments that benefit the most from declining interest rates. I expect stocks to rise when the Fed lowers rates. I believe this because stocks have historically risen when interest rates fall. This is because when rates drop, loans become cheaper, leading to business spending/ expansion and higher earnings potential, which could increase stock prices. I don’t think we will have
to wait long for the first interest rate drop. It could come as early as June and maybe even March. I encourage investors to focus on the long term. This year’s market cycle won’t be smooth either, making it extremely difficult to predict where stocks are going, reminding us that “time in the market” is a better mantra than “timing the market.” The year may not bring quite as much joy to your portfolio. Still, with inflation down, unemployment low, corporate fundamentals in good shape, and the Federal Reserve poised to cut interest rates, these are the ingredients for stocks to
rise again this year. I would not be surprised if stocks increase with mid-to-high single-digit returns in 2024. Unfortunately, our daughter inherited her fast driving from her dad. When I talked to her on the phone, I asked her if she was going to drive slower on the way home, “Oh no, I’m just teaching the girls to be more alert and active when it comes to speed traps.” Investing-wise, that’s what my clients hire me to do: stay alert and active on their behalf in the markets to get them through difficult parts of the trip Have a blessed week! www.FerventWM.com
Get ready to buy a home by improving your credit score
BY HEATHER TANKERSLEY, REALTOR®, provides services for residential, commercial, land and lake properties in the Branson Tri-Lakes area.
A
s a new year begins, the idea of buying a home might be on your mind. It’s an exciting goal to set, and it’s never too early to start laying the groundwork. One crucial step to prepare forhomeownership is building a solid credit score. Lenders review your credit to assess your ability to make payments on time, pay back debts, and more. It’s also a factor that helps determine your mortgage rate. An article from CNBC explains: “When it comes to mortgages, a higher credit score can save you thousands of
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understand your friend’s logic. Instead of lying, you can say, “I see where you are coming from with that.
dollars in the long run. This is because your credit score directly impacts your mortgage rate, which determines the amount of interest you’ll pay over the life of the loan.” This means your credit score may feel even more important to your homebuying plans right now since mortgage rates are a key factor in affordability, especially today. According to the Federal Reserve Bank of New York, the median credit score in the U.S. for those taking out a mortgage is 770. But that doesn’t mean your credit score has to be perfect. An article from Business Insider explains generally how your FICO score range can make an impact: “. . . you don’t need a perfect credit score to buy a house Aiming to get your credit score in the ‘Good’ range (670 to 739) would be a great start towards qualifying for a mortgage. But if you’re wanting to qualify for the lowest rates, try to get your score within the ‘Very
Good’ range (740 to 799).” Working with a trusted lender is the best way to get more information on how your credit score could factor into your home loan and the mortgage rate. As FICO says: “While many lenders use credit scores like FICO Scores to help them make lending decisions, each lender has its own strategy, including the level of risk it finds acceptable. There is no single “cutoff score” used by all lenders and there are many additional factors that lenders may use to determine your actual interest rates.” If you’re looking for ways to improve your score, Experian highlights some things you may want to focus on: • Your Payment History: Late payments can have a negative impact by dropping your score. Focus on making payments on time and paying any existing late charges quickly. • Your Debt Amount (relative to your credit limits): When it comes
Given the facts you had at the time and how you were feeling, I probably would have done the same.” You learn a lot by seeing through someone else’s lens of trau-
ma, values and expectations. You’ll know you’ve heard a person fully when they respond to your reflective conversation with “That’s right!”
HEATHER TANKERSLEY
start to finish, from assessing which range your score falls in to telling you more about the specifics for each loan type. Bottom Line As you set your sights on buying a home in the upcoming year, a focus on boosting your credit score could help you get a better mortgage rate when the time comes. If you want to learn more, connect with a trusted lender.
It’s Your Move! When you’re ready to buy, let’s connect. Have you heard of the Temporary Buydowns? Buyers have access to lower mortgage payments by reducing their rates. Call me today and I can introduce you to lenders that are helping buyers with home ownership. Heather Tankersley REALTOR®, ABR® Keller Williams Tri-Lakes D: 417 332.5130 O:417.336.4999
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jan 18–21 • 6 pm & 8 pm See TWO concerts of the British rock band Queen! The first concert is their show in Montreal, November 1981, with “Under Pressure” topping the charts, following their record-breaking tour of Latin America. It was to be the only concert by Queen that was ever shot on film. The second concert is their live performance at Live Aid in 1985 with Queen’s 24 minute set in Wembley Stadium. ®
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to your available credit amount, the less you’re using, the better. Focus on keeping this number as low as possible. • Credit Applications: If you’re looking to buy something, don’t apply for additional credit. When you apply for new credit, it could result in a hard inquiry on your credit that drops your score. A lender will help you navigate the process from
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