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How Your Spending Patterns May Affect Your Investment Decisions Working, saving, investing, and spending are the four pillars of financial life management, or FinLife®, as we call it. We can intuitively understand that the four actions are tightly interconnected, but what may be less obvious is that they are all equally important. While discussion of the fourth pillar, spending, may sometimes be neglected in favor of the other three, we feel that it is so important to a well-balanced FinLife® that we’re devoting an entire month to discussing the subject. After all, even the most diligent savers plan to spend their funds someday. We’ll start off the topic of spending with a little whimsy. Consider the following sentence: After spending their whole life working, savers often plan to spend their retirement spending their savings. While admittedly repetitive, the sentence illustrates the profound importance generally attached to spending. Part of FinLife® is making choices that allow us to feel like we’re “spending” well. For those still in the accumulation phase, there is a different nuance: how much they spend dictates how much they might save, which can affect how long they plan to work. Where you are with respect to working, saving, investing, and spending may mean that you need to approach your portfolio differently. Someone who is accumulating assets versus someone who is relying on their investments for cash flow needs (such as in retirement or for college expenses), may likely invest their entire portfolio very differently. United Capital has tools available for many different sets of investors, but let’s focus first on ways someone who is spending down their portfolio might think about investing their assets. A L I V E 36 E A S T B A Y j a n u a r y 2 0 1 6 PRESENTED BY KELLY TREVETHAN, CIMA, RFC Consider how we think about investing, using a triad of low cost tracking, performance, protection and tax minimization.


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