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Financial Literacy Month: 5 Financial Literacy Tips to Help You Cope with Economic Uncertainty

admin • April 18, 2023

Uncertainty is inevitable in our constantly changing, fast-paced world. And in recent years, it’s become clear just how uncertain things can be. On a day-to-day basis, we deal with all kinds of  societal, technological, and of course, economic uncertainty. 

With high-interest rates and the rising cost of basic goods, economic uncertainty can bring stress to your everyday life. 

And while there are many factors out of your control—like the cost of groceries, housing prices, and interest rates— you can control how you financially prepare for and respond to economic uncertainty. 

Being financially prepared and knowing how to respond to uncertain times ultimately helps you cope and sets you up for financial success in the future. 

So, how do you set yourself up to prepare for and cope with difficult financial uncertainty? 

It all starts with financial literacy . 

What Is Financial Literacy?

Financial literacy, or financial capability, is a broad term. It refers not only to financial knowledge, concepts, and skills but also to the ability to put them all into practice. It includes having the skills to budget, save for emergencies, manage your debt, invest and plan for retirement and beyond, and ultimately reach your financial goals. It also includes knowing how to use different financial products and services to make reaching those goals easier. 

The truth is, financial literacy isn’t as widespread as we’d hope. On the 2022 TIAA Institute-GFLEC Personal Finance Index , which is an assessment of American adults’ financial literacy, respondents answered only half of the questions correctly on average. 

We have a lot of work to do when it comes to improving our collective financial literacy. Doing so is critically important on an individual level and has major benefits for all aspects of your life.

Why Financial Literacy Is Important

As we mentioned above, being financially literate helps you cope with economic uncertainty and be better prepared for whatever the markets may throw at you. Understanding your unique financial situation can help you make decisions from a place of security rather than stress. Generally, financial literacy helps you make smarter money decisions. More specifically, financial literacy can help you:

  • Keep more of your money.   When you know how to spend wisely on the things that matter most—and when you can avoid costly mistakes—you can plug money leaks in your budget and keep more cash in your bank account and investments. 
  • Handle emergencies with ease. Many emergencies require money to fix. Being financially prepared for emergencies can help ease the burden without going into debt.
  • Pass down healthy money habits to your kids. They’ll notice when you show an interest in practicing healthy money habits, and they’ll want to do the same.
  • Borrow with less hassle at a lower cost. A good credit score goes a long way and can help cut costs if and when you need to borrow. Good credit means more options, and having more options is, financially, a great thing.
  • Keep your cool during an economic downturn. Recessions are not fun and they can affect us all financially and emotionally; but financial literacy can help you rest easier knowing you’ve been hard at work saving and investing for your future.
  • Live the life you want to live with less sacrifice. Many—if not most—goals in life require a financial investment. When you have the funds to do what you want, you can spend more time enjoying life to the fullest.

Financial literacy trickles into every aspect of your life. Improving your financial literacy translates into more than just financial success. Less stress and more joy as a result of financial literacy can change your life on a major scale. 

5 Financial Literacy Tips to Help You Cope with Economic Uncertainty

Financial literacy sounds great, but how do you achieve it?

The good news is, improving your financial literacy is easier than ever. That’s because financial information, products, and services are more widespread and, in many cases, less expensive than in the past. 

Aside from digging into the resources that are out there—reading books and blogs, listening to podcasts, and talking to financially savvy friends—here are some concrete steps you can take to improve your financial literacy and prepare yourself to cope with economic uncertainty. 

1. Allocate time to spend on your finances

Knowing how to improve your financial situation won’t help you unless you actually take the time to implement it. That’s why setting aside time to dig into your budget, check on your accounts, and track progress toward your goals is so important. Whether it’s daily, weekly, or monthly, get in the habit of having regular check-ins. And if you’re married, make sure you plan these sessions with your spouse.

2. Save for the unexpected

Weathering economic uncertainty comes down to planning for the unexpected. The best way to financially prepare for uncertainty is to build a healthy emergency fund. If you don’t already have one, set aside three to six months’ worth of expenses for emergencies and keep it in an accessible account. If you have dependents or a fluctuating income, consider saving even more.

3. Build credit—while avoiding bad debt 

Having solid credit gives you more options. It allows you to borrow at a lower cost and helps you qualify for better financial products. The first step in building healthy credit is to keep tabs on your credit score and check your credit report regularly to make sure there are no errors. Then use credit responsibly—by paying off your high-interest debts in full and on time. 

4. Plan for your future and your legacy

Planning for your future is a major part of financial literacy because the actions you take today have major impacts on your life down the road. In uncertain times and market declines, knowing you’ve been planning for retirement goes a long way. Do what you can now to ensure a comfortable, enjoyable retirement. Make sure you’re investing for the long term, protecting your assets with the right insurance policies, and creating a plan for your estate. 

5. Get the right professional help

Self-study and money-smart friends can go a long way in boosting your financial literacy, but at some point, you may want professional help. Unfortunately, we hear too many stories about our clients’ negative experiences with previous financial planners who didn’t take the time to build trusting, collaborative relationships.

Make sure you team up with someone who not only takes a holistic approach to planning but who’s a fiduciary and has your best financial interest at heart. A great financial planner can make sure you have a plan for both short- and long-term goals, answer your complex questions, and confirm your financial strategy matches your goals.

Invest in Your Own Financial Literacy 

Becoming financially literate is one of the best things you can do for yourself and your family. Money isn’t everything, but it sure makes things easier when you’re dealing with economic uncertainty. Understanding how to make your money work for you and last for your lifetime—maybe even leaving something for your children and grandchildren—helps you live life fully and with less stress.

If you’re feeling lost, confused, overwhelmed, or simply like you should know more about your financial situation than you do, it’s time to get support. If you’re ready to team up with a holistic financial planner, we’d love to meet you. 

Give us a call at 877.333.1015, email us at info@fivepinewealth.com , or visit our website to learn more about what it’s like to work with us.

 

The Best Long-Term Investment Strategy? Stay Invested, Stay Calm

June 20, 2025
When markets are calm, investing can feel easy. You contribute regularly, watch your portfolio grow, and start picturing that future vacation home or early retirement. But when markets get volatile, everything changes. Suddenly, headlines are full of dire warnings. Account balances fluctuate. And the urge to do something can feel overwhelming. At Five Pine Wealth Management , we understand how emotional investing can become during periods of market uncertainty. One of the most important things we do as fiduciary financial planners is to help our clients stay grounded when the market gets choppy. Let’s walk you through how we approach investment risk management and why having a clear, disciplined philosophy matters most when volatility strikes. Our Philosophy: Think Long-Term, Not Next Week When markets are moving fast, it is easy to think that the “best long-term investment strategy” must involve taking action to avoid losses or chase gains. The reality is usually the opposite. Reacting to market noise can often do more harm than good. In fact, one of the greatest risks to long-term returns is making emotional decisions in response to short-term events. We coach our clients to stay focused on their long-term financial plans and goals. Volatility is a feature of markets, not a flaw. By designing portfolios with realistic expectations for ups and downs, we help clients stay invested through all market environments. Here is what this looks like in practice: We use broadly diversified portfolios built around low-cost ETFs. We focus on asset allocation aligned with your time horizon, goals, and risk tolerance. We do not chase trends or attempt to time the market. We regularly review and rebalance portfolios based on your financial plan, not headlines. In short, your portfolio is designed to ride out volatility, not avoid it entirely. Fiduciary Financial Planning: Advice in Your Best Interest There is a great deal of noise in the financial world, particularly during turbulent market conditions. One of the most significant ways we help cut through it is by being fiduciary financial planners. That means we are legally and ethically obligated to act in your best interest at all times. We are also fee-only advisors. We do not receive commissions for recommending one investment over another. Our primary agenda is to help you reach your goals. During market volatility, this matters more than ever. Too many investors fall prey to sales pitches disguised as “solutions” to market risk. We focus on education and long-term planning rather than quick fixes. Being a fiduciary allows us to focus on what serves you best: Keeping you aligned with your personal goals and values Helping you tune out market noise and media hype Offering sound, research-backed guidance without conflicts of interest Your Coach Through Emotional Market Cycles One of our most important roles as financial planners is helping clients manage the psychological side of investing. It is one thing to know, intellectually, that markets will recover over time. It is another thing to watch your portfolio drop 15% and not feel anxious. Market downturns create powerful emotions. Fear. Doubt. Sometimes, even panic. As humans, our instinct is to take action to relieve those feelings, even when the logical course is to stay invested. That is where we come in. We help coach clients through these moments so they can avoid costly mistakes like: Selling during a downturn and locking in losses Chasing the next hot trend during a rebound Over-concentration in “safe” assets out of fear We remind clients that volatility is a normal part of the market. Markets have experienced recessions, wars, pandemics, and political turmoil before. They will again. Over time, markets have historically rewarded patient investors who stayed the course. When you work with us, you gain a trusted partner who is here to talk through your concerns, offer perspective, and help you make decisions that serve your long-term goals. Why Staying the Course Actually Works It may seem counterintuitive, but reducing activity during market volatility often yields better outcomes. Consider this: From 1999 through 2018, if an investor missed just the 10 best days in the S&P 500, their overall return would have been cut nearly in half . Many of the best market days happen very close to the worst ones. Trying to time the market is a challenging task, even for seasoned professionals. By maintaining a disciplined investment approach and staying fully invested, you ensure that you are there for both the recoveries and the long-term growth that markets provide. Our role is to help you build a portfolio designed for precisely this kind of staying power. We structure your investment mix to help you weather market cycles without having to guess what will happen next. Educating Clients About Normal Market Cycles Another key aspect of fiduciary financial planning is helping clients understand what is “normal” in the market. Volatility is not a sign that something is broken. It is a natural part of how markets function. In fact, without volatility, markets would not offer the returns that make long-term investing so powerful. We work with clients to help them see: Why some years will be down, but others will be very strong Why trying to avoid all losses is neither realistic nor necessary How staying invested through cycles often leads to far better outcomes than jumping in and out of the market Perspective is everything . The more you understand market behavior, the less likely you are to make emotional decisions during downturns. Different Stages, Same Principles Our approach also adapts to the varying needs of clients at different stages of their financial journey. For clients in their 40s to 60s: We may focus on prudently preserving and growing wealth. We help manage sequence-of-returns risk as you approach retirement. We may emphasize income planning and portfolio sustainability. We ensure that your investment mix aligns with your evolving goals and risk tolerance. For clients in their 30s: We provide education about typical market cycles (especially if this is their first experience with volatility). We coach clients to take advantage of their longer time horizons. We help younger investors see downturns as buying opportunities, not threats. In all cases, we are committed to helping clients invest with confidence, regardless of the headlines. Ready to Build a More Resilient Investment Strategy? Market volatility will always be part of investing, but it doesn't have to derail your financial goals. As your trusted financial advisor Coeur d'Alene team, we're here to help you navigate market uncertainty with confidence through our comprehensive financial planning approach. Contact Five Pine Wealth Management today to discuss how our investment philosophy and comprehensive financial planning approach can help you navigate market uncertainty with confidence. To see how we can help you support your financial goals, send us an email or call us at 877.333.1015.  Whether you're looking to preserve the wealth you've already accumulated or build a foundation for long-term growth, our team has the experience and commitment to help you stay focused on what matters most: achieving your financial goals.

From Full House to Financial Freedom: Smart Money Moves for Empty Nesters

May 23, 2025
The day your last child leaves home hits differently. It’s not just about the quiet hallways or fewer groceries in the cart. It’s the moment you realize that the life you’ve known for 20+ years is evolving into something new. For many, that change is deeply emotional. But it’s also a golden opportunity. At Five Pine Wealth Management, we work with parents who are entering this new season of life. Maybe you’re celebrating. Perhaps you’re feeling uncertain. Likely, you’re feeling a mix of both. This new chapter comes with financial freedom and decisions to match wherever you land. Let’s explore the smart financial moves you can make as empty nesters. Empty Nesters: A New Financial Season Meet Rob and Dana. After 25 years of raising three kids, their youngest finally left for college last fall. Their house, once bustling with backpacks, soccer cleats, and half-eaten cereal bowls, suddenly felt oversized and eerily quiet. They weren’t used to grocery bills being cut in half or weekends without games and activities. But what really surprised them? Just how much less money was going out each month. They came to us with a familiar feeling: a mix of excitement and uncertainty. "We think we're in a good place," Dana said. "But are we doing what we should be doing?" This is where a financial check-in becomes vital. With fewer day-to-day expenses and more flexibility, this is a time to refocus your finances. Here’s where to focus: Revisit your monthly budget. Your spending needs have probably changed. Without dependents at home, you may find new flexibility. Redirect those dollars toward long-term goals. Refresh your financial goals. That dream trip to Italy or the kitchen renovation you’ve put off? Let’s pencil it in, but also ensure your retirement accounts are getting the love they need. Update your estate plan. Now that the kids are young adults, your wills, healthcare directives, and beneficiaries may need adjusting. Freedom looks different for everyone, but for many, it starts with clarity. Pre-Retirement Planning: Your Next Big Financial Milestone For most empty nesters, retirement is no longer a distant concept—it’s getting real. Pre-retirement planning becomes a critical focus, especially in your late 40s to mid-60s. This is often the highest-earning period of your life and the sweet spot for pre-retirement planning. Here’s what we help our clients prioritize: Maximizing retirement contributions : As an empty nester, your cash flow could increase by 12% or more . Now’s the time to supercharge your 401(k), IRA, or other investment accounts with that extra cash. If you’re 50 or older, take advantage of catch-up contributions. Evaluating your risk exposure : Is your portfolio still aligned with your risk tolerance and timeline? Consider your tax strategy: With fewer deductions (like kids at home) and possibly a high-earning year, you may want to explore Roth conversions, charitable giving, or other tax-aware strategies. Running retirement projections : We help clients answer big-picture questions like: When can I retire? Will I have enough? What lifestyle can I realistically support? These aren’t always easy questions, but they’re essential. Planning for healthcare : Don’t wait until 65 to think about Medicare. Explore long-term care insurance and out-of-pocket expectations now. Rob and Dana sat down with us to run a retirement analysis. With only 8 years until Rob planned to retire, we helped them rebalance their portfolio to reduce risk, evaluate their pension and Social Security options, and make a plan to pay off their mortgage early. The result? They now have a clear retirement date and peace of mind. Should I Downsize My Home? One of the most common questions we get from empty nesters is, “Should I downsize my home?” It’s not just a financial question. It’s an emotional one, too. That house holds birthday parties, graduation photos on the stairs, and a dent in the drywall from a wild game of indoor tag. But it may also hold higher property taxes, more space than you use, and maintenance costs that don’t serve your current lifestyle. When deciding whether to downsize, we walk clients through: Total cost of ownership : What are you paying for the space? Emotional readiness : Are you ready to let go of the home? What would moving free up? : Cash for retirement? A move to your dream location? Family needs : Will your kids (or grandkids) be visiting regularly? Would a smaller home still support that? Downsizing doesn’t always mean moving into a tiny condo. Sometimes it means relocating to a one-level home with less yard or trading square footage for a better lifestyle. For Rob and Dana, downsizing meant moving to a townhome closer to their daughter and walkable to their favorite coffee shop, all while cutting their housing costs by nearly 35%. Give Yourself Permission to Dream Again One of our favorite things about working with empty nesters is helping them rediscover what they want. For years, life revolved around the kids. College tours. Dance recitals. Saturday mornings spent on the soccer sidelines. You were investing in their future. Now, it’s time to invest in yours. That might mean: Launching the business you put on hold Traveling during off-peak seasons (because you can!) Picking up a new hobby or volunteering more Creating a legacy through charitable giving or a family foundation Whatever it is, we want to help you align your money with your vision. Ready to Rethink the Next Chapter? This stage of life is full of opportunities, but it can also raise big questions. The good news is you don’t have to figure it all out on your own. Whether you're considering downsizing, exploring early retirement, or just want to know you’re on the right path, Five Pine Wealth Management is here to help you plan wisely, invest intentionally, and live fully.  Take advantage of this pivotal financial moment. Call (877.333.1015) or email us today to schedule your empty nester strategy session. The empty nest doesn't have to feel empty. It can be the launch pad for your next chapter of financial success.