By Paul Bullock

Investing for the future is one of the best things you can do with your money. Whether you’re saving for a home purchase or planning for retirement, building a nest egg takes time, consistency, and hard work. So, what happens if your investment choice is more of a money suck than a viable asset? Would you even be able to tell the difference from your investment statements alone? 

The truth is most people barely look at their monthly investment statements, let alone fully understand what they’re saying. Unfortunately, this keeps many clients invested in assets that don’t make sense for their financial goals and earning way less than they should due to hidden fees and transaction costs. This is particularly true when it comes to mutual funds. Don’t let yourself be caught off guard by the hidden price of investing. In this guide, we’ll explain the components of your investment statement and help you understand the true cost of your mutual funds.

Understanding Your Statements

It’s not uncommon for people to avoid their investment statements out of confusion or frustration about how to interpret the numbers. If this sounds like you, we’ve got you covered! Here is a breakdown of the different components you may see on your mutual fund statement and what they mean:

• Account balance: The total amount in your account as of the statement closing date
• Performance: How much your account value increased or decreased over the statement period due to changes in the market (may be expressed as a percent or a dollar amount)
• Additions & withdrawals: Includes any money added to your account (deposits or reinvested dividends), as well as any money taken out of your account (withdrawals or fees)
• Total change: The total change in your account balance that occurred over the statement period from all contributions, withdrawals, gains, losses, and fees
• Holdings: A summary of what you’re invested in; usually expressed as a pie chart, your statement will probably use words like equities (stock) and fixed income (bonds) to describe your asset allocation.

Understanding the Expense Ratio

An expense ratio is essentially the cost of doing business as a mutual fund. These costs are then passed through to the shareholder in the form of various fees that roll up into the expense ratio. 

This is a key component of understanding mutual funds, yet they are not itemized on your account statements. Rather than listing out the expenses, they are automatically deducted from the value of the fund shares on a daily basis. This directly impacts the return received by shareholders like you. 

To make it even more complicated, expense ratios are often expressed as a percentage of the fund’s average net assets rather than a flat dollar amount. For instance, average expense ratios range from 0.5%-1.0%, (1) meaning that for every $10,000 invested, $50-$100 is lost to fees every year.

Understanding Your Fees

To truly understand the expense ratio, you must first understand the fee structure of a mutual fund. Management fees are taken from the asset pool, so you will pay for these fees through a reduction in investable assets.

Transaction fees and other hidden costs are usually charged regardless of how well the fund performs, and, at any given time, a significant portion of investment returns could be lost to fees, (2) such as: 

• Management fees: The administrative costs for the day-to-day investment of the fund, including transaction costs for buying and selling shares
• 12b-1 fees: The cost to service, distribute, and market the fund
• Sales load: A fee related to the purchase of shares
• Redemption fees: Charged when you sell shares of the fund
• Exchange fees: Charged if you transfer your shares to another fund within the same fund group
• Account fees: Charged for account maintenance if your account falls below a certain amount
• Purchase fees: A fee that may be charged when you purchase mutual fund shares, often in addition to the sales load

Working With a Fiduciary Financial Planner 

It used to be that mutual funds were one of the most popular ways to invest, but, due to excessive fees and lack of transparency, that has been changing recently. Exchange-traded funds (ETFs) and index funds offer similar exposure to a wide array of investments—without the price tag of a mutual fund.

Working with a fiduciary financial planner is a great way to reduce fees as well. Since he or she is legally obligated to act in the client’s best interest, a fiduciary financial planner does not make money by charging transaction fees and can help you spot a money-sucking investment over one that maximizes your potential return. 

How We Can Help

At Wellington Investment Advisors, we’re here to help you make the most of your investments by avoiding unnecessary fees and expenses. If you have questions about your mutual funds or would like to learn more about cost-efficient investment strategies, we would love to hear from you! Schedule a no-obligation introductory meeting or reach out to me at paul@wellingtoninvestmentadvisors.com or by phone at (812) 333-0874.

Be sure to check out what some of our clients say about working with our team at Wellington Investment Advisors to learn more about how we can help you.

About Paul

Paul Bullock is CEO of Wellington Investment Advisors, an independent, boutique fiduciary firm serving pre-retirees and university faculty across Indiana. With over 32 years of financial experience, Paul is committed to building long-term relationships through thoughtful, personalized investment advice and guidance. He focuses on a disciplined tactical asset allocation approach to money management through a strong understanding of economic and market conditions and strives to build trust with clients by providing sound guidance. Paul understands the hard work his clients have put in to arrive at where they are today and wants to see them succeed in their goals for the future. Paul graduated from the University of Texas with an MBA, as well as a bachelor’s degree in finance, and has been dedicated to assisting clients with their financial needs ever since. When he is not working, Paul enjoys time with his family and is also an avid equestrian polo player who helps raise money for over 18 different charities through his playing. To learn more about Paul, connect with him on LinkedIn.

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(1) https://www.investopedia.com/ask/answers/032715/when-expense-ratio-considered-high-and-when-it-considered-low.asp

(2) https://www.nerdwallet.com/article/investing/mutual-fund-fees-what-investors-need-to-know

By Paul Bullock

The events of the last few weeks in Ukraine have been stressful and upsetting to many of us. The buildup of Russian forces along the border, rising tensions, and the ensuing attack have caused worldwide shockwaves. People across the globe are understandably concerned and anxious. 

What’s more, the events have caused economic volatility across the world, with Russia’s currency dropping to historic lows against the dollar and the Russian stock market issuing an emergency closure. (1) On Feb. 24, the European Stock Market Volatility Index, which measures the expectation of volatility over the next 30 days, neared a 20-year high. (2)

While hopes are high for talks aimed at deescalating the crisis, the financial implications may be considerable. Tough financial sanctions aimed at Russia could lead to an increase in retaliatory cyberattacks. In addition to the conflict in Ukraine, our economy is facing high inflation and continued uncertainty about COVID variants. Even with the Dow’s strong rally at the end of last week, the three major U.S. averages are on track for a loss of roughly 4% each for February. (3)

Financial Markets and Geopolitical Events

Events around the world can quickly shock financial markets, but the reality is that markets often tend to recover rather quickly from external shocks. In fact, since World War II, stock markets typically rebounded within 3 months of a large geopolitical shock. The average time for markets to rebound after major geopolitical shocks is around 47 days. (4) In fact, the U.S. stock market regained losses within 30 days of the Sept. 11 attacks. (5)

Take a look at the following chart to see how stocks typically recover following geopolitical crises: (6)

What to Do During Market Declines

While market declines can be scary, especially for those within retirement, the reality is that these declines often create valuable opportunities. Short-term price drops for companies with excellent long-term value offer a great chance to invest or rebalance. Because markets are prone to quickly recover after geopolitical shocks, it’s critical not to sell during short-term downturns.

Stay Calm

While the current conflict is stressful to many, your long-term investment plan should not be a source of fear. At times like these, it’s important to put current conditions into perspective. This is not the first time the market has taken a tumble and it won’t be the last. Declines in the Dow Jones Industrial Average are actually fairly regular events. In fact, drops of 10% or more happen about once a year on average: (7)

Play Dead

There’s an old saying that the best thing to do when you meet a bear market is the same as if you were to meet a bear in the woods: Play dead. While easier said than done, successful long-term investors know that it’s important to stay calm during a market decline.

Market volatility has increased in recent years and it may seem like each episode is worse than the one before. In reality, volatility does not hurt investors, but selling when the market is down will lock in losses.

Remember That Your Portfolio Is Diversified

Fears about war and market declines are stressful. However, it is important to keep in mind that while the stock market is down, your portfolio is made up of both stocks, bonds, and other assets that are designed to work together to decrease overall losses. It’s important to consider your specific portfolio, investment horizon, and circumstances when reflecting on economic events. If you have questions about your portfolio, get in touch with our office.

Review Your 401(k) and Other Accounts

Now is a good time to take a look at all of your investment accounts, including your 401(k) to make sure it is well diversified. If you have not rebalanced your other investment accounts in the last year, get in touch with our office and we’ll take a look and offer recommendations to minimize potential losses.

Speak With Your Advisor

Whether you’re new to investing or an experienced investor, it’s helpful to consult with an objective third party. Human nature causes us all to act out of emotion when our accounts go down. As an independent firm, we put your best interests first. We seek to serve as a support system for our clients, helping them make informed financial decisions that aren’t driven solely by emotion.

We’re Here for Your Friends and Family

If you have friends or family who need help with their investments, we are happy to offer a complimentary portfolio review and recommendations. We can discuss what is appropriate for their immediate needs and long-term objectives. Sometimes simply speaking with a financial advisor may help investors feel more confident and less concerned with the day-to-day market activity. Reach out to us today at paul@wellingtoninvestmentadvisors.com or by phone at (812) 333-0874.

About Paul

Paul Bullock is CEO of Wellington Investment Advisors, an independent, boutique fiduciary firm serving pre-retirees and university faculty across Indiana. With over 32 years of financial experience, Paul is committed to building long-term relationships through thoughtful, personalized investment advice and guidance. He focuses on a disciplined tactical asset allocation approach to money management through a strong understanding of economic and market conditions and strives to build trust with clients by providing sound guidance. Paul understands the hard work his clients have put in to arrive at where they are today and wants to see them succeed in their goals for the future. Paul graduated from the University of Texas with an MBA, as well as a bachelor’s degree in finance, and has been dedicated to assisting clients with their financial needs ever since. When he is not working, Paul enjoys time with his family and is also an avid equestrian polo player who helps raise money for over 18 different charities through his playing. To learn more about Paul, connect with him on LinkedIn.

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(1) https://www.cnn.com/2022/02/28/business/russia-ruble-banks-sanctions/index.html

(2) https://www.cnbc.com/2022/02/23/stock-futures-are-little-changed-after-dow-sinks-to-its-lowest-level-of-the-year-amid-ukraine-crisis.html

(3) https://www.cnbc.com/2022/02/22/stock-market-futures-open-to-close-news.html

(4) https://seekingalpha.com/article/4488660-how-stock-market-reacts-war-based-crash

(5) https://www.forbes.com/sites/jonathanponciano/2022/02/24/russian-invasion-triggers-scary-stock-market-correction-heres-how-long-stocks-take-to-recover-after-geopolitical-shocks/?sh=1e090de224ed

(6) https://www.reuters.com/markets/asia/live-markets-what-history-says-about-geopolitics-market-2022-02-18/

(7) https://www.capitalgroup.com/individual/planning/market-fluctuations/past-market-declines.html

By Paul Bullock

It’s safe to say we were all caught off guard at the beginning of 2020. Now, two years later, we’ve learned that we can’t predict much, especially the timing of economic stability or instability. 

And, while this has certainly been a time of much anxiety and stress, we aren’t powerless. In the midst of negative economic data and other unwelcome headlines, here are four ways to help you take control and prepare your finances for whatever lies ahead. 

1. Research > Reacting

This concept applies to many areas of life, but it’s extremely valuable to remember when it comes to your financial plans. 

When the marketplace is behaving erratically, you—the investor—need to do the opposite. One of the worst mistakes you can make is to sell from a place of panic. That’s because acting emotionally can turn a temporary loss into a permanent one. Instead, you should review past performance patterns, re-center your thinking, and make level-headed decisions (often with the help of a trusted financial advisor). 

History tends to repeat itself, and that’s certainly true when looking at the stock market. Major drops in the Dow are nothing new. In fact, it’s been rising and falling in record-setting fashion for nearly a century. Whether it’s a depression, recession, or pandemic, the economy has shown its ability to bounce back from even the hardest of times. 

2. Stay in the Market

It’s normal to feel worried when you see your investment values fall during uncertain times, but the last thing you should do is pull out of the markets entirely. When you do this, you’re locking in the low value of your accounts instead of letting them rebound before you withdraw. Remember, your investments may lose market value, but you don’t lose any money unless you sell while the value is low. 

Similarly, putting your money into a volatile market probably sounds like the last thing you want to do right now, but investing is not about timing the market, it’s about time in the market. Over time, consistent investing can lead to growth. It’s hard to see this when you’re looking at the short-term fluctuations, but you’ll be glad you did when you look back on your investments in the years to come. 

3. Rebalance Your Portfolio if Necessary

While you shouldn’t panic sell, holding on to stock is not always the right answer either. Course corrections are sometimes needed, especially in the form of rebalancing. 

When the markets take your money on a roller coaster, it’s not hard for your asset allocation to get out of whack. Let’s say your desired asset allocation is 70% stocks and 30% bonds (this will vary based on your age, goals, and risk tolerance), but as volatility continues, your allocation shifts to 80% stocks and 20% bonds. To rebalance your portfolio and keep your risk level stable, you’d have to sell some stocks and buy more bonds.

4. Talk to a Professional About Your Situation

Ultimately, to help allay your fears, it’s extremely beneficial to talk to someone who is an expert in the field and spends his or her days researching this type of information.

Further, depending on your age and financial circumstances, you might not feel that you have as much time to let the market bounce back. In this instance, it’s even more important to consult a professional to make sure the types of investments you have align with your risk tolerance and time horizon. 

Are you interested in learning more about your options and ways you can help protect your money and succeed in any market environment? Schedule a no-obligation introductory meeting or reach out to me at paul@wellingtoninvestmentadvisors.com or by phone at (812) 333-0874. And, be sure to check out what some of our clients say about working with our team at Wellington Investment Advisors to learn more about how we can help you.

About Paul

Paul Bullock is CEO of Wellington Investment Advisors, an independent, boutique fiduciary firm serving pre-retirees and university faculty across Indiana. With over 32 years of financial experience, Paul is committed to building long-term relationships through thoughtful, personalized investment advice and guidance. He focuses on a disciplined tactical asset allocation approach to money management through a strong understanding of economic and market conditions and strives to build trust with clients by providing sound guidance. Paul understands the hard work his clients have put in to arrive at where they are today and wants to see them succeed in their goals for the future. Paul graduated from the University of Texas with an MBA, as well as a bachelor’s degree in finance, and has been dedicated to assisting clients with their financial needs ever since. When he is not working, Paul enjoys time with his family and is also an avid equestrian polo player who helps raise money for over 18 different charities through his playing. To learn more about Paul, connect with him on LinkedIn.

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(1) https://dashboards.trefis.com/data/companies/SPX/no-login-required/E7CuKj6x/The-Coronavirus-Crash-vs-Other-Historic-Market-Crashes?fromforbesandarticle=trefis200313?fromforbesandarticle=trefis200313

(2) https://www.forbes.com/sites/lizfrazierpeck/2021/02/11/the-coronavirus-crash-of-2020-and-the-investing-lesson-it-taught-us/?sh=55591bb446cf

(3) https://www.google.com/finance/quote/.DJI:INDEXDJX?sa=X&ved=2ahUKEwj5gYnI8NbzAhWoTt8KHSlPB5EQ3ecFegQICRAc&window=5Y

By Paul Bullock

At Wellington Investment Advisors, we work with a lot of university faculty members, and what we have found is that college faculty members are smart, hardworking, and experts at what they do. But, they might not be experts in finance—which is where we can help. 

Here we’ll look at three of the top retirement planning challenges of university faculty members so you can better understand how to avoid them and securely plan for your future. 

1. How Will You Access Your Money in Retirement?

You’ve likely been contributing to your retirement plan for a long time now, but, as you prepare to retire, do you know how you’ll be able to access your money in retirement? 

Most universities offer good retirement plans, but each plan is different, so it’s important to understand how exactly you will make withdrawals in retirement, when you can start receiving payments, and what costs, fees, and taxes are associated with your withdrawals. 

For example, the Indiana University Retirement Plan for Academic and Professional Staff Employees is a 403(b) plan, which has different rules regarding contributions, contribution limits, vesting, investment options, and distributions compared to other retirement plans. You can find more details about this plan in the IU Retirement Plan Document—and we can help you decipher the fine print. (1)

2. Are You Planning for Taxes and RMDs?

In many cases, you will need to make the required minimum distributions (RMDs) from your retirement plan(s) by a certain age or risk substantial tax penalties. According to the IRS, your retirement plan may require you to begin receiving distributions by April 1 of the year after you reach age 72, even if you have not yet retired. (2)

Considering RMDs is especially important for college faculty members like professors because many professors continue teaching well into their 60s, 70s, and even beyond—at least part time. Planning for RMDs is not only vital to understanding your overall retirement financial future, but also to helping you avoid hefty tax penalties. 

3. Are You Structuring Your Income Stream(s) to Reduce Tax Liability and Extend the Life of Your Money?

College faculty or not, every retiree wants to pay less in taxes and reduce the risk of running out of money in retirement. Fortunately, there are a few strategies we can help you consider that will aid in reducing your tax liabilities and extending the life of your money, including deciding to retire later or working part time. 

Working part time and easing yourself into retirement may be a great option for college faculty members who want more flexibility but still desire the structure (and income) that a job provides. 

And, continuing  to work part time may allow you to delay distributions from your retirement plan. 

Another income stream to consider is Social Security. Social Security is a significant retirement asset for many university faculty members, and when you receive these benefits will impact your income streams and tax liabilities. Here’s how:

• You can elect to receive Social Security benefits as early as age 62, but your benefit amount may be reduced.
• To receive the maximum benefit amount, you must delay your benefits until you reach full retirement age as determined by the IRS. (3)
• Social Security is a tax-free benefit as long as your combined income stays within certain limits. If those limits are exceeded, income tax will be charged on 85% of your benefit amount. (4) This is a very important point to consider because other streams of retirement income (like those coming from your retirement plan) can impact your tax liability if you’re not careful. 

Lastly, you might have income from other investments outside of your retirement plan, including dividends, inheritance, and/or trust funds. These all play into your financial future and should be considered when planning for retirement. 

Do You Understand Your College Faculty Retirement Plan?

Not only are college faculty members faced with unique concerns because of their university-sponsored retirement plans, but they also must consider their overall financial life when planning for retirement. Are you ready to talk about your retirement benefits to ensure you’re making the most out of your university-sponsored retirement plan? Schedule a no-obligation introductory meeting or reach out to Paul at paul@wellingtoninvestmentadvisors.com or by phone at (812) 333-0874.

About Paul

Paul Bullock is CEO of Wellington Investment Advisors, an independent, boutique fiduciary firm serving pre-retirees and university faculty across Indiana. With over 32 years of financial experience, Paul is committed to building long-term relationships through thoughtful, personalized investment advice and guidance. He focuses on a disciplined tactical asset allocation approach to money management through a strong understanding of economic and market conditions and strives to build trust with clients by providing sound guidance. Paul understands the hard work his clients have put in to arrive at where they are today and wants to see them succeed in their goals for the future. Paul graduated from the University of Texas with an MBA, as well as a bachelor’s degree in finance, and has been dedicated to assisting clients with their financial needs ever since. When he is not working, Paul enjoys time with his family and is also an avid equestrian polo player who helps raise money for over 18 different charities through his playing. To learn more about Paul, connect with him on LinkedIn.

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(1) https://hr.iu.edu/pubs/books/retirement.pdf

(2) https://www.irs.gov/retirement-plans/plan-participant-employee/401k-resource-guide-plan-participants-general-distribution-rules

(3) https://www.ssa.gov/benefits/retirement/planner/agereduction.html

(4) https://www.ssa.gov/benefits/retirement/planner/taxes.html

By Paul Bullock

Are you procrastinating when it comes to organizing your finances? You’re not alone. Whether it’s insurance planning, putting together an estate plan, or figuring out withdrawal strategies, most people don’t put retirement planning at the top of their to-do lists because they don’t find it interesting or exciting. 

But just because it seems uninteresting doesn’t mean it shouldn’t be done. And, procrastinating further can even be costly—in time, energy, and money. If you’ve been putting off retirement planning, consider these five reasons why you should get started now: 

1. You’re Probably Not Saving As Much As You Should

Saving for retirement is one thing, but knowing you have enough is another. And, the truth is, you’re probably not saving as much as you should be. 

If you’re planning to retire in your mid-60s, your retirement savings may need to carry you through 30+ years of life. Keep in mind, inflation will decrease the value of your savings over time and you’ll likely encounter additional expenses along the way. A recent study found the average 401(k) balance of those ages 60 to 69 is $198,600, (1) yet the average retirement cost of living is nearly $46,000 per year. (2) At that rate, a savings of $198,000 will only last about four years. 

The best way to avoid running out of money in retirement is to work with a financial professional to understand what you’ll need in retirement and how to make your savings work for you. Contrary to popular belief, you cannot simply use a multiple of your annual income to determine how much to save. This is why it’s crucial to plan ahead. The sooner you understand your needs, the more options you will have and the easier your goals will be to accomplish.

2. Healthcare Costs Are on the Rise

Healthcare costs in America are among the highest in the world. (3) And, it’s no surprise that as you age, you will likely require more healthcare services. According to the Fidelity Retiree Health Care Cost Estimate, the average couple at age 65 will need about $300,000 saved to cover healthcare costs in retirement. (4) Most people don’t even have that much in their retirement accounts to live on, let alone to cover medical costs.

Given the events of the past two years, it’s more important than ever to start preparing for the ever-increasing cost of healthcare. The longer you wait, the fewer options you’ll have. Working with an experienced financial professional can help you evaluate your options and build a long-term plan. 

3. Tax Strategies Take Multiple Years to Implement

Another reason to not put off retirement planning is that if you don’t start early, you’ll miss out on several tax strategies that take years to implement, including:

Tax-Advantaged Retirement Savings

If you’re in a high tax bracket, being able to save for retirement with pre-tax dollars is a great advantage because pre-tax contributions reduce your taxable income and, ultimately, reduce the amount of taxes you owe. This strategy could save you thousands of dollars in taxes each year. The earlier you start, the more you’ll save. 

Roth Conversions

Roth conversions help increase your retirement savings and decrease your long-term tax liability by transferring funds from a pre-tax retirement vehicle (traditional IRA) to an after-tax account (Roth IRA). This allows your money to grow tax-free for as long as you’d like, while also avoiding required minimum distributions (RMDs).

Withdrawal Strategies

When it comes to withdrawing from your retirement accounts, how you take your distributions can make a big difference. Each retirement asset (employer-sponsored accounts, Social Security, traditional IRAs, etc.) has different tax characteristics. Creating a withdrawal strategy can help lower your tax burden by structuring withdrawals from each income source in a tax-efficient way. 

To properly implement these strategies and more, a long-term understanding of your full financial picture is required. Putting off financial planning can leave you stuck with a large tax bill that could have been avoided.

4. Compound Interest Takes Time Too

It’s not about timing the market; it’s about time IN the market. Starting early and saving consistently are the most strategic things you can do for your financial future. Just as saving early allows you to take advantage of tax savings over time, there is a compound effect that occurs with the money that is already invested. The money contributed to your retirement account each year will grow exponentially over time, but the key part of that equation is time. 

A single penny that doubles every day for a month may not seem like much on the surface—especially when compared to $1 million upfront. But, by the time the 30th day rolls around, you would have over $5 million in pennies. This same concept can be applied to your retirement savings, but, because investments are at the mercy of the stock market, it will take more than 30 days to see that kind of growth. 

If you wait to invest, you will miss out on growth year after year, and the resulting loss can be substantial. Not to mention the potential for loss when you try to invest yourself without the proper advice and guidance of a financial professional. We’ve found that many clients are often invested too conservatively and miss out on the opportunity for significant growth in even just a slightly riskier portfolio. 

5. Having a Plan Can Alleviate Stress

Do you feel 100% confident in the financial choices you’ve made for your future? Have you encountered more complexities as your assets have grown? Partnering with a financial professional can help alleviate the stress and anxiety that comes from trying to figure out your finances on your own.

Proper retirement planning should help reduce the stress that comes from not knowing where you stand or how you’ll achieve your goals. With the right help, you can spend more of your time doing what matters most to you. 

Get Started Today

The sooner you start the planning process, the sooner you will know how much you need and what you need to do. If you have long-term financial goals like buying a house, paying for your grandchildren’s education, or saving for retirement, working with a financial professional is one of the best things you can do to set yourself up for success. Don’t leave your most important goals and priorities to chance. 

At Wellington Investment Advisors, we will build a custom plan to put your money to work for you, so that you can feel confident in your financial future. Schedule a no-obligation introductory meeting or reach out to me at paul@wellingtoninvestmentadvisors.com or by phone at (812) 333-0874 to get started. Be sure to check out what some of our clients say about working with our team at Wellington Investment Advisors to learn more about how we can help you.

About Paul

Paul Bullock is CEO of Wellington Investment Advisors, an independent, boutique fiduciary firm serving pre-retirees and university faculty across Indiana. With over 32 years of financial experience, Paul is committed to building long-term relationships through thoughtful, personalized investment advice and guidance. He focuses on a disciplined tactical asset allocation approach to money management through a strong understanding of economic and market conditions and strives to build trust with clients by providing sound guidance. Paul understands the hard work his clients have put in to arrive at where they are today and wants to see them succeed in their goals for the future. Paul graduated from the University of Texas with an MBA, as well as a bachelor’s degree in finance, and has been dedicated to assisting clients with their financial needs ever since. When he is not working, Paul enjoys time with his family and is also an avid equestrian polo player who helps raise money for over 18 different charities through his playing. To learn more about Paul, connect with him on LinkedIn.

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(1) https://www.financialsamurai.com/the-latest-401k-balance-by-age-versus-the-recommended-amount-for-a-comfortable-retirement/

(2) https://www.financialsamurai.com/the-average-spending-amount-in-retirement-is-surprisingly-high/

(3) https://www.investopedia.com/articles/personal-finance/072116/us-healthcare-costs-compared-other-countries.asp

(4) https://www.fidelity.com/viewpoints/personal-finance/plan-for-rising-health-care-costs

By Paul Bullock

Despite what most people think, a financial plan is not a one-and-done deal. As you move through life and experience changes in your situation and priorities, your financial strategies need to adapt as well. That’s why we see a financial plan as a living, breathing document that requires ongoing planning, evaluation, and recommendations to ensure that you stay on track to achieve your goals. 

At Wellington Investment Advisors, we believe there’s more to financial planning than beating the market or getting a better return; it’s about partnering with someone who can help you pursue your goals and provide honest, caring, and tailored advice—not just when times are good, but when they’re tough, as well. That being said, we’re here to set the record straight about three most popular financial planning myths. 

Myth #1. Mutual funds are less risky than stocks. 

The reality is that all investment vehicles carry a certain degree of risk. Mutual funds and stocks are both subject to the volatility of the market. That’s why diversifying your portfolio with a healthy mix of stocks, bonds, and other investments helps manage the risk. When deciding which investments to take on, it’s important to consider your goals for the future, your family, and even, perhaps, your business. A financial advisor can help you figure out your timeline and risk tolerance so you can properly invest your money. 

Myth #2. The best way to avoid losses is to avoid the stock market.

Many people believe that keeping their money stored away in a standard savings account is the best way to protect their money. But, what they’re not taking into consideration is inflation. Cash is guaranteed to lose spending power over time due to inflation. The good news is, you can give your savings a chance to grow by investing your funds. 

But what if you’re scared of losing your money in the stock market? A large component of financial planning with a trusted advisor is meeting your goals for the future in a way that makes you feel comfortable and confident. The market is full of unexpected dips and potential crises, but the right financial advisor will guide you through even the most difficult financial situations. 

Some important questions an advisor can answer include:

• Do I stay the course until the market stabilizes? 
• Should I buy more of an investment for portfolio optimization? 
• Should I sell my shares of a stock that is plummeting? 
• How can I protect my investments and financial well-being? 

By consulting with a fiduciary advisor, you can be confident that you’re receiving advice that’s right for you. And you can also avoid making hasty decisions out of fear or uncertainty. 

Myth #3. If the market is down, you should get out and cut your losses.

You can suffer several different types of losses when you’re investing in the stock market; the trick is to learn how to deal with each of them. By consulting with a financial advisor, you can find ways to navigate your risk and tax implications so you can align your strategy with your overall financial plan. 

Remember: It’s normal to feel uncertain about the market—especially if you’re new to investing. But a trusted advisor can help educate you and make you feel comfortable about making smart financial decisions. 

We’re Here to Help 

A great financial plan is created with a strategy that works for you and guidance from the right professional. My most loyal client has been with me for about 28 years. I’ve helped him and his family stay the course and navigate through life’s challenges to meet their financial goals. This is what I love most about my job. 

I am always open to meeting new people and seeing how I may be able to help. Whether you’ve already started planning for the future or have yet to put strategies in place, I encourage you to schedule a no-obligation introductory meeting or reach out to me at paul@wellingtoninvestmentadvisors.com or (812) 333-0874 to get started. Be sure to check out what some of our clients say about working with our team at Wellington Investment Advisors to learn more about how we can help you. 

About Paul

Paul Bullock is CEO of Wellington Investment Advisors, an independent, boutique fiduciary firm serving pre-retirees and university faculty across Indiana. With over 32 years of financial experience, Paul is committed to building long-term relationships through thoughtful, personalized investment advice and guidance. He focuses on a disciplined tactical asset allocation approach to money management through a strong understanding of economic and market conditions and strives to build trust with clients by providing sound guidance. Paul understands the hard work his clients have put in to arrive at where they are today and wants to see them succeed in their goals for the future. Paul graduated from the University of Texas with an MBA, as well as a bachelor’s degree in finance, and has been dedicated to assisting clients with their financial needs ever since. When he is not working, Paul enjoys time with his family and is also an avid equestrian polo player who helps raise money for over 18 different charities through his playing. To learn more about Paul, connect with him on LinkedIn.

By Paul Bullock

Two things played a role in my decision to become a financial advisor: moving from big-city Chicago to small-town Arkansas as a child and the famed movie Wall Street. Here’s the story:

The Beginning

When my parents moved our family to Arkansas, they bought a farm. As anyone who has experienced farm life knows, it’s an all-hands-on-deck endeavor. I learned to ride horses, care for cattle, fix fences, and appreciate our strong family values, including the importance of hard work. My parents were passionate about education and believed it was the way out of poverty, but they wanted me to take ownership and reap the rewards of investing in something worthwhile. That’s how I ended up in West Texas, working in the oil fields and paying my way through college. 

I had always been interested in finance, so when it came time to choose a major at the University of Texas, it wasn’t a difficult choice. I earned my bachelor’s in business administration with a concentration in finance, as well as my MBA. 

This is where Charlie Sheen and Michael Douglas come into play. In 1987, my dad made a career switch and became a financial advisor. He encouraged me to do the same. I had recently seen Wall Street and was fascinated by the inner workings of the financial industry and thought it would be an interesting career choice. It turned out to be so much more than that. 

Shaping My Values

I got my start in the late ’80s when financial advising looked a lot different than it does today. I was taught to cold call people at home in the evenings to sell a product and was more of a salesman than an advisor. I’ve learned a lot since then, namely that caring for people and always putting them first is more important than anything else; building relationships that last for decades brings incredible fulfillment. Through the years, I have seen what an important role my guidance plays in people’s lives and how much my advice impacts their futures. Witnessing my clients reach their goals and live their ideal visions of retirement has become my motivation.

I learned much of this from years of watching my dad serve his clients. In 2013, he passed away from a brain tumor. In his last week with us, I got to hear many more of his stories and ask him questions. I specifically asked: “In looking back over your life, if there is one piece of advice you would give me, what would it be?” He responded: “Learn empathy and treat others with compassion.” He told me that this lesson changed how he looked at his life and other people. 

He also told me it’s unwise to manage your own money because you become too emotionally invested and make unwise decisions when the markets go crazy. As someone who has experienced many market cycles, I can tell you that I have walked countless clients through difficult situations, helping them calm their nerves and stay the course—and then see them succeed when they stick to a long-term strategy. 

Fast-Forward to Today

Now, with over 30 years of experience under my belt, I am CEO of Wellington Advisors, an independent, boutique fiduciary firm serving pre-retirees and university faculty across Indiana. I spend my days helping my clients prepare for the future through excellent service and sound money management advice that’s personalized for them. 

It’s not about beating the market or getting a better return than someone else. It’s about partnering with others as they pursue their goals and giving honest, caring, and tailored advice—not just when times are good, but when they are tough as well. As the famous saying goes, if you love what you do, you’ll never work a day in your life. That’s how I feel about my role as a financial advisor. There’s just nothing like making this much of a difference in people’s lives, helping them grow and protect their hard-earned money so they can live the lives they want. 

Take the Next Step

I am always open to meeting new people and seeing how I may be able to help. Whether you’ve already started planning for the future or have yet to put strategies in place, I encourage you to schedule a no-obligation introductory meeting or reach out to me at paul@wellingtoninvestmentadvisors.com or (812) 333-0874 to get started. Be sure to check out what some of our clients say about working with our team at Wellington Investment Advisors to learn more about how we can help you.

About Paul

Paul Bullock is CEO of Wellington Investment Advisors, an independent, boutique fiduciary firm serving pre-retirees and university faculty across Indiana. With over 32 years of financial experience, Paul is committed to building long-term relationships through thoughtful, personalized investment advice and guidance. He focuses on a disciplined tactical asset allocation approach to money management through a strong understanding of economic and market conditions and strives to build trust with clients by providing sound guidance. Paul understands the hard work his clients have put in to arrive at where they are today and wants to see them succeed in their goals for the future. Paul graduated from the University of Texas with an MBA, as well as a bachelor’s degree in finance, and has been dedicated to assisting clients with their financial needs ever since. When he is not working, Paul enjoys time with his family and is also an avid equestrian polo player who helps raise money for over 18 different charities through his playing. To learn more about Paul, connect with him on LinkedIn.