December 2023 Blog Newsletter

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December Captain’s Log

A Peak Ahead To 2024

What does history tell us about the performance of the S&P 500 during U.S. Presidential Election Years?

One common narrative floating around by media and perception of investors is that an election year is perceived to provide negative returns. I can think of a list of things that I am not looking forward to during an election year and wanted to communicate that the stock market more often than not is not on the naughty list.

Looking at the S&P 500 Index returns during Presidential election years (1928-2016); when a Republican President is elected the S&P 500 returns 15.3% and when a Democratic President is elected the S&P 500 returns 7.6%. If you average these results in all Presidential election years the average return is 11.28% for the S&P 500. There have been 24 Presidential elections since the S&P 500 Index began. In these election years:

20 of the 24 Presidential election years (83%) provided positive performance

When a Democrat was in office and a new Democrat was elected, the total return for the year averaged 11.0%

When a Democrat was in office and a Republican was elected, the total return for the year averaged 12.9%

To the pessimist there will no doubt be highs and lows within the calendar year 2024. That is why being a successful long-term investor is about time in the market and NOT attempting to time the market. Each year brings about unique challenges for the stock and bond markets, and I anticipate 2024 to follow suit. Do not be surprised that when the dust settles at year end more than likely, 83%, of the time the S&P 500 will be higher.

Now that we do not have to worry about 2024, take the time to enjoy with your family and friends celebrating Christmas and what this means. Be grateful for all the things that you do have! I know our team at Anchor Wealth is extremely grateful for YOU, our clients!

Merry Christmas!

5 Simple Habits Of The Average Millionaire

Who doesn’t dream of being a millionaire? The allure of financial freedom and the ability to live life on your own terms is something we all aspire to achieve. At Anchor Wealth Management, we’ve had the privilege of supporting both seasoned millionaires and those just embarking on their investment journey. Ever wondered about the secrets that propel ordinary individuals to millionaire status? Join us on a journey to uncover the common traits that set the stage for financial success.

Let’s dive into the 5 simple habits of the average millionaire and pave the way for a prosperous retirement

Save Consistently and Set Goals

One of the common traits among millionaires is the commitment to saving money consistently and starting early. By developing the habit of saving a portion of their income from an early age, they lay the foundation for financial success. Even if you can only set aside a small percentage of your income, doing so consistently can make a significant impact on your retirement savings over the years.

Establish a dedicated retirement savings account, contribute regularly, and consider automating your contributions so you never miss a deposit.

Invest Wisely

It’s tempting to buy lots of “what’s hot” at the moment, but what’s hot is not always investing wisely. Think “cryptocurrency,” for example. While investing carries some risks, it offers the potential for higher returns than traditional and highly conservative savings accounts. Expanding your financial portfolio strategically with stocks, bonds, real estate, and other assets can help spread the risk and increase your chances of financial success. To adopt this habit, educate yourself about investment options, or seek guidance from a financial advisor, like Anchor Wealth Management, to create a well-balanced and diversified investment portfolio that aligns with your retirement goals.

Diversify Your Income

Beyond a traditional job, consider the value of diversifying income sources. Explore these avenues for added money in your pocket:

Rental Income: Real estate investments, especially in rental properties, provide a reliable source of passive income. Wisely choose properties, factoring in management considerations, for steady income and potential appreciation.

Side Business: Cultivate a side business for both personal fulfillment and extra income. Whether a passion project or freelancing, side businesses can evolve into significant contributors to your overall wealth. Choose ventures aligned with your skills and interests for added financial resilience in retirement.

Control Your Expenses

Another fundamental habit of millionaires is living below their means. While they may have the means to afford luxuries, they prioritize saving and investing over extravagant spending. By maintaining a frugal lifestyle and making conscious financial decisions, they accumulate wealth over time. To follow this habit, track your spending, create a budget, and differentiate between your needs and wants.

Millionaires also understand the dangers of debt and the benefits of eliminating it responsibly. They work diligently to pay off loans and avoid accumulating unnecessary debt. Develop a plan to pay off debt, such as credit card and vehicle balances, and use credit responsibly. Prioritize paying off debts with high interest rates and consider consolidating loans or refinancing to reduce interest costs.

Continuously Educate Yourself

Lastly, millionaires often value education and self-improvement to make informed decisions about investments and financial strategies.

Read articles, books, Anchor Wealth blogs and newsletters to stay informed about current financial trends and strategies. Surround yourself with like-minded investors who share your goals and learn their best habits based on personal experience.

By adopting the habits of the average millionaire, you can build a strong foundation for a financially secure retirement. And who knows? You just might be on the path to millionaire status yourself!

By Adam Ludwig, CEO/Wealth Management

Learn More about Adam and the AWM Team

Adam’s Nightstand

This month, I have been reading Values-Based Financial Planning: The art of creating an inspiring financial strategy by Bill Bachrach.If you were to consult the best financial advisors on how to plan for your future, they wouldn’t start by educating you about market trends or mortality. They wouldn’t try to explain the pros and cons of mutual funds, exchange traded funds, insurance, or any other financial vehicles. And they certainly wouldn’t bore you with their resumes.

Instead, they’d focus on what’s important to you. They’d focus on your values. Values are those qualities and principles intrinsically valuable or desirable to you. The “why” behind the rest of the plan are your values. Goals are the tangible results you seek, while values are the intangibles that make pursuit of those goals genuinely meaningful to you. It’s more about process than products.

I am looking forward to implementing this book into our Anchor Wealth culture!

This book has reinforced the vision that I have had for working with clients at Anchor Wealth Management. By adapting additional principles from this book to our already proven process will help us to remain one of the top financial advisory firms in the country.

Learn More

Our Team Has Grown By One

AWM Team Member Shane Stuart, his wife Tiffany and daughter Finley received a special Christmas delivery this year and we couldn’t be more excited.

Layla Jo Stuart arrived on Monday, December 18th at 2:12 PM, weighing 7lbs 14 oz and is 19 inches long.

She has a full head of dark hair. Shane joked that they need to schedule her a haircut soon.

Tiffany and Layla are doing well and will be home in plenty of time to celebrate Christmas as a family of four.

Shane will be on Paternity leave until Monday, January 8th. If you need assitance, Angie Whitenburg, Shane’s assistant is available to help you. Angie can be reached at (815) 201-5011 Ext. 1024 or email her at