CCM INSIGHTS
A Newsletter by Compass Capital Management
A LOOK INSIDE THIS ISSUE:
1.A SPOOKY season is upon us!
Our CCM family is prepping for Halloween Fun ALL. MONTH. LONG
2.UNDERSTANDING THE U.S. ECONOMY
Do not be afraid to understand the U.S. economy and its impact on your family.
3.Fall Festivities at CCM Halloween Parties, Brewing up trivia, & More!!
A SPOOKY SEASON IS UPON US!
Compass Capital Management is feeling the spirit in our office! Everyone in the office is decorating their office for HALLOWEEN!
From haunted hallways to pumpkin-filled desks, employees go all out to bring the Halloween spirit to life. The friendly competition sparks teamwork, laughter, and a whole lot of creativity as everyone works together to bring some festive fun to our office.
Judges soon crown the winner of the spookiest space but in the end, the real prize is the fun and camaraderie that come from celebrating the holiday together.
The best part... YOU ARE THE JUDGE!
Keep an eye on our social media for more information on how to vote!
UNDERSTANDING THE U.S. ECONOMY
BY: JIMMY J. WILLIAMS, CPA/PFS, CFP , CRPC ® ™
“The U S economy is too complex to understand ” “Only the wealthy need to understand how the economy works ” These two statements were made during recent meetings with potential clients Thinking about the individuals’ mindset when these statements were voiced, it was evident to me that they were overwhelmed and needed some guidance in the impact of the economic factors on their family’s financial security.
Let us focus on the three most impactful economic factors that families should understand to make good financial decisions about their future First, many of us understand inflation and the impact it has on our family’s budget. Buying gasoline, groceries, clothing, or medical prescriptions will quickly educate an individual about inflation. Cash in a checking or savings account is negatively impacted by rising prices If the funds used for supporting your family grow at a lower rate than inflation, the family will be unable to maintain their purchasing power for goods This simply means that their dollar will buy less during inflationary periods than it would otherwise purchase in times of lower inflation.
To keep up with inflation, you should consider investing your resources in assets that earn returns greater than inflation Many forms of stocks, real estate and inflation-protected bonds will serve you well during times of increasing prices in our economy Lifestyle changes may also provide some relief from inflation. For example, driving your vehicle less and carpooling with others may contribute some savings to offset gasoline usage and higher prices Also, you may find other means of savings for prescriptions such as Good Rx or other discount cards to reduce your prescription costs
Interest rates are another area of the economy that many of us understand If you are purchasing a new home, the interest rate offering is much higher today than it was five years earlier The reason was the Federal Reserve Board of Governors (the “Fed”) kept rates at zero for banks that borrowed from the Fed to make loans in their communities. However, when the inflation rate started to climb during the recent pandemic, the Fed raised interest rates to slow down the economy and curb spending by our citizens Everything from savings accounts, bond prices and mortgage rates is impacted by the interest rate charged by the Fed to its participating banks
Credit card and automobile rates are a couple of common areas in which individuals will see higher interest rates. It is a good habit to develop that you pay off your balance on your credit card each month Some card issuers may charge in excess of 25% for unpaid balances in the current interest rate environment Also, if you are shopping for a new car, it may save you money in the long term by searching for models that are qualified for interestfree loans or, even better, purchased for cash.
Lastly, employment and spending rates are critical to understanding our economy A lower unemployment rate means that more Americans seeking work are gainfully employed The result of being employed is that they are spending money Businesses are growing and stocks will do better in a robust employment economy. Conversely, if employment lowers and more workers are drawing unemployment than in the previous few months, less spending will occur and the economy will slow down, resulting in lower business profits and stock values
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Do not be afraid to understand the U.S. economy and its impact on your family. It is a wise investor who understands the cycles of the economy and how to take advantage of lower interest rates and higher return investments. A CERTIFIED FINANCIAL PLANNER professional may provide you with a complimentary review of your family’s investments and budget to provide guidance on navigating the economy. Inflation, interest rates, employment, and spending factors are a subset of the factors we review on a daily basis to keep abreast of the economy’s performance. Go be the best you possible and create a peace-filled world!
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FALL FESTIVITIES AT CCM
Compass Capital Management has had a full schedule the last couple of weeks! Last Thursday, we hosted our Brewing Up Trivia event a night filled with laughter, friendly competition, and great company. Clients joined us for rounds of trivia, delicious coffee, and charcuterie, with prizes for the winners of each round. It was a wonderful opportunity to show our appreciation to our clients while having a blast together.
Just a few days later, we kept the fun rolling with our Halloween Party and Murder Mystery on Tuesday! Everyone came dressed in creative costumes, and our office transformed into a scene straight out of a detective novel Team members took on their character roles and worked together to solve the mystery, making it a truly memorable (and spooky) afternoon!
Amid all the fun, our team also made time for growth. We held a collaborative training session focused on enhancing teamwork and finding new ways to better serve our clients while maximizing the CCM Experience. It was an energizing mix of ideas, strategy, and inspiration that will help us continue to raise the bar in client service.
From client appreciation to team development, last week perfectly captured the spirit of Compass Capital Management where connection, collaboration, and a little fun always go hand in hand.
UPCOMING EVENTS:
Holiday Hoedown: November 13th