Artificial Intelligence, Real Efficiency
Sometimes, it feels like the world is evolving at an unprecedented pace, and this month’s chart illustrates a trend that affects all of us as investors. When corporations become more efficient, they create ripple effects throughout the economy. Due to the evolution of efficiency tools and artificial intelligence, S&P 500 companies now need fewer […]
Navigating Retirement Pitfalls
Much is written about the classic financial mistakes that plague start-ups, family businesses, corporations, and charities. Some classic financial missteps have been known to plague retirees, too. Calling them “missteps” may be a bit harsh, as not all of them represent errors in judgment. Either way, becoming aware of these potential pitfalls may help you […]
A Taxing Story: Capital Gains and Losses
Chris Rock once remarked, “You don’t pay taxes – they take taxes.” That applies not only to income but also to capital gains. Capital gains result when an individual sells an investment for an amount greater than their purchase price. Capital gains are categorized as short-term gains (a gain realized on an asset held one […]
Social Security Fairness Act’s New Chapter
The Social Security Fairness Act, signed into law in December 2024, adjusts two longstanding provisions that previously reduced Social Security benefits for certain recipients: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These rules affected Social Security benefits for retirees who receive pension income from non-covered employment.¹ Who Qualifies for Increased Benefits? […]
Is My Home an Asset Or Liability?
Have you ever heard the expression, “It’s a buyer’s market?” That phrase describes what’s happening with today’s residential real estate: homes are selling for under their asking price and are taking longer to sell. Good news for buyers; not good news for sellers. I’m not a real estate professional, but I do understand that a […]
What Will 2025 Hold?
With 2024 coming to a close, I want to share my thoughts on America’s current fiscal policy, geopolitical elements, and other factors that may help shape 2025’s financial landscape. This transition period offers both challenges and opportunities for investors—and we’re here to help. Fiscal Policy Many provisions of the 2017 Tax Cuts and Jobs Act […]
America’s Productivity Punchup
As we approach the end of the year, I can’t help but reflect on what a wild financial journey 2024 has been. I’m sure many of us can recall the headlines proclaiming it was a year ripe for recession. However, time has shown that America’s ingenuity and determination have not only kept a recession at […]
Choices For Your 401(K) At A Former Employer
One of the common threads of a mobile workforce is that many individuals who leave their job are faced with a decision about what to do with their 401(k) account.¹ Individuals have four choices with the 401(k) account they accrued at a previous employer.2 Choice 1: Leave It with Your Previous Employer You may choose […]
A Brief History of Estate Taxes
Federal estate taxes have been a source of funding for the federal government almost since the U.S. was founded. In 1797, Congress instituted a system of federal stamps that were required on all wills offered for probate when property (land, homes) was transferred from one generation to the next. The revenue from these stamps was […]
Disability and Your Finances
The Social Security Disability Insurance program paid out over $150 billion in benefits in 2023. And with new applicants each year, the system is expected to exhaust its reserves at the end of 2035 if changes aren’t made.1,2 Rather than depending on a government program to protect their income in the event of a disability, […]
Retirement Confidence Rebounds, But Inflation Looms Large
The 2024 Employee Benefit Research Institute (EBRI) Retirement Confidence Survey was recently released, and it provides an illuminating look at the current state of retirement preparations and mindsets across the country. While the findings show reason for optimism, with 68% of workers and 74% of retirees feeling confident about their retirement prospects, this represents only […]
The Importance of Catch-Up Contributions
A recent survey found that 18% of workers are very confident about having enough money to live comfortably through their retirement years. At the same time, 36% are not confident.1 In 2001 congress passed a law that can help older workers make up for lost time. But few may understand how this generous offer can […]
Warren Buffet Speaks
Warren Buffett, the “Oracle of Omaha,” held court at the annual Berkshire Hathaway meeting in early May. Few events on the American business calendar are so hotly anticipated, and there is no hotter ticket in Nebraska- perhaps the entire Midwest!1 Notably absent was Buffett’s longtime business partner and comic foil, Charlie Munger, who passed in […]
Women and Wealth: A Pivot Towards Retirement
Retirement is a significant transition, and it can bring both challenges and opportunities for women who have spent many years focused on their careers. For women approaching retirement age, it is crucial to consider various tips and strategies to ensure a smooth and fulfilling transition. An elegant pivot from work life to a life of […]
Important Birthdays Over 50
Most children stop being “and-a-half” somewhere around age 12. Kids add “and-a-half” to make sure everyone knows they’re closer to the next age than the last. When you are older, “and-a-half” birthdays start making a comeback. In fact, starting at age 50, several birthdays and “half-birthdays” are critical to understand because they have implications regarding […]
2023 IRA Deadlines Are Approaching : What You Need to Know
2023 IRA Deadlines Are Approaching What You Need to Know Financially, many of us associate the spring with taxes—but we should also associate December with important Individual Retirement Account (IRA) deadlines. This year, like 2024, will see a few changes and distinctions. Remember, this article is for informational purposes only. It is not a replacement […]
IRS Releases 2024 Tax Brackets, Retirement Contribution Limits
The Internal Revenue Service recently released updated income tax brackets, standard deduction, and retirement contribution limits for the 2024 tax year. While these taxes are not due for some time, it may benefit you to start thinking ahead. Overall, more than 60 provisions have changed. Here are a few of the most critical tax bracket […]
Estate Strategies Of The Rich And Famous
How the Queen of Soul, the Lizard King, and Other Celebrities Determined Their Legacies Famous people are all too human. Tabloid newspapers and celebrity magazines and websites make bank chronicling their every moment, from going out for a coffee to attending glamorous premieres and glitzy concerts. And, yes, whenever they make a mistake, those […]
Why Are Investors So Fearful?
If you’re a fan of Warren Buffett, you’ll recognize this quote: “Be fearful when others are greedy and greedy when others are fearful.” In recent weeks, the investing outlook has become a bit murky, which has led some people to let their emotions get the best of them. As you can see from the accompanying […]
Take Charge of Your 401K – Part 3
Cashing Out In our last blog, we talked about taking your 401k to a new job. Another choice is to liquidate your old plan and receive the money directly. While it can be tempting to see your savings as a quick source of cash, cashing out may result in penalties and taxes. Your 401(k) plan […]
Why You Should Never Write Your Own Will
Ever considered writing your own will? While you can draft a will on your own, there are plenty of reasons why you may not want to go that route. Most people do it to save money, but they may overlook or forget to take care of some important details – details that could eventually cost […]
Take Charge of Your 401K – Part 2
Taking Your Plan to Your New Job One of the best arguments in favor of rolling over your old retirement plan is that it can help simplify your life. In our experience, investors tend to lose track of accounts that aren’t right in front of them. Life gets busy, and failing to modify your investment […]
Take Charge of Your 401K – Part 1
HAVE YOU EVER SWITCHED JOBS? Research shows that the average American employee switches jobs over 12 times by the time they turn 54. Changing jobs can mean that many Americans have old 401(k) plans, which may not be properly positioned to help them prepare for retirement. Every time you change jobs, you have some choices […]
5 Benefits of Working in Retirement
5 Benefits of Working in Retirement In the past, retirement has been portrayed as an ending, a grand exit from your years in the workplace. But the rules are shifting. Labor force participation among those aged 65-74 is predicted to reach 30.7 percent by 2031, up from just 25.8 percent in 2021. As the Boomer […]
A Cheat Sheet for Sending Your Kid to College
College marks a great milestone in a child’s life. It may be the first time he or she will live away from home. Dropping off your child at college may be an experience loaded with emotions, so here are a few tips for a smoother transition. Accept that the Parent-Child Dynamic Has Changed Your child […]
Latest Social Security Predictions
Recently, you may have seen reports that the so-called “depletion date” for Social Security was adjusted. This refers to the predicted date when the long-running program will no longer be able to pay full benefits. Barring action from Congress, the Treasury Department predicts that 80% of benefits will be paid by 2034. This is one […]
Weekly Market Insights: Banking Crisis Fears Dim; Markets Rally
Stocks rallied last week on receding fears of a widening banking crisis, led by resurging investor interest in technology and communication services names. The Dow Jones Industrial Average gained 3.22%, while the Standard & Poor’s 500 added 3.48%. The Nasdaq Composite index rose 3.37% for the week. The MSCI EAFE index, which tracks developed overseas […]
Words Of Wisdom From Warren Buffett
The stock market can provide some head-scratching moments, which is why I like Warren Buffet’s quote, “…don’t watch the market closely.” Stocks have been strong this year, and they rallied sharply before and after the February Fed meeting, which ended Wednesday, February 1. But the following day, after the market closed, a handful of Wall Street’s […]
Recession Fears Fading?
Investors put the economy on recession watch when the Fed started its “higher in a hurry” push with short-term interest rates in mid-2022. After the 10-year/2-year Treasury curve inverted in July 2022, it was “all aboard” the recession bandwagon. Then the business community followed suit, with CEOs hunkering down and preparing companies for a slowdown […]
A Decision not Made is Still a Decision
Whether through inertia or trepidation, investors who put off important investment decisions might consider the admonition offered by motivational speaker Brian Tracy, “Almost any decision is better than no decision at all.” This investment inaction is played out in many ways, often silently, invisibly, and with potential consequences to an individual’s future financial security. Let’s […]
Bond Market vs Feds: Who is Right?
What does the bond market know that the Fed isn’t telling us? The Fed sees short-term interest rates over 5 percent, but the bond market says that’s too high, expecting that short-term rates will top out at 4.5% in 2023. Who’s right?
New Retirement Contribution Limits For 2023
The Internal Revenue Service (IRS) has released new limits for certain retirement accounts for the coming year. After months of high inflation and financial uncertainty, some of these cost-of-living-based adjustments have reached near-record levels. Keep in mind that this update is for informational purposes only, so please consult with an accounting or tax professional before […]
Traditional vs. Roth IRA
Traditional Individual Retirement Accounts (IRA), which were created in 1974, are owned by roughly 36.6 million U.S. households. And Roth IRAs, created as part of the Taxpayer Relief Act in 1997, are owned by nearly 27.3 million households.1 Both are IRAs. And yet, each is quite different. Up to certain limits, traditional IRAs allow individuals […]
Stubborn Inflation Tests Fed’s Resolve
Stubborn doesn’t seem like a strong enough word, but that’s how Fed officials are describing inflation. Inflation’s “stubbornness” has been on full display in recent weeks: First, the Producer Price Index (PPI) showed that costs remain high for producers of goods and services. Then in September’s more widely followed Consumer Price Index (CPI) high prices […]
Weekly Market Insights: U.S. and U.K. See Financial Turbulence
Rising recession fears and uncertainty in the bond and currency markets sent stocks to new 2022 lows last week. The Dow Jones Industrial Average declined 2.92%, while the Standard & Poor’s 500 slumped 2.91%. The Nasdaq Composite index fell 2.69%. The MSCI EAFE index, which tracks developed overseas stock markets, lost 1.94%.1,2,3 A Tumultuous Week […]
Weekly Market Insights: Fallout From Powell Comments Continues
Last week, Fed Chair Powell said the U.S. would not tame inflation without economic pain. This week heightened recession fears and sent stocks broadly lower. The Dow Jones Industrial Average dropped 4.00%, while the Standard & Poor’s 500 lost 4.65%. The Nasdaq Composite index fell 5.07% for the week. The MSCI EAFE index, which tracks […]
Student Loan Relief- Important Details
The White House recently forgave up to $10,000 to student loan borrowers as part of a larger debt forgiveness program. There are still quite a few questions to be answered, but here are some key points to know. Pell vs. non-Pell: Loan forgiveness of up to $10,000 is available to non-Pell Grant recipients and up […]
Let’s Review Your Life
Life doesn’t stand still. Neither do your life insurance needs. If you have a quote or policy and haven’t reviewed it lately, you may be surprised to discover that what worked for you then may not meet your needs now. Luckily, going over your life and matching it with your life insurance just takes a […]
Are You Ready for a Windfall? 1.02 Billion Reasons to Be Prepared
What would you do with a windfall? It’s a question I’ve read or heard a lot lately. Considering the Mega Millions jackpot has now grown to $1.02 billion, it’s safe to say most of us have thought about what it would be like to win. While winning the lottery is far from likely (odds this […]
3 Shrewd Maneuvers in a Down Market
It’s natural to think “defense” during a bearish market season. But why not mix in some “offense” with your defense? Here are three moves we can discuss together that may be helpful during the current market downturn. Invest Your Excess Cash: If you have excess cash earmarked for a long-term goal (retirement or college, for […]
Your Personal Finance Calendar
Use this handy calendar to remember the year’s most important financial dates. Take a look at your “sources and uses” of money. Is it what you expected, or are you considering making adjustments? Don’t forget second-quarter estimated income tax payments are due by June 15. Refresh your money skills. Add at least one book on […]
Helpful Retirement Strategies for Women
Preparing for retirement can look a little different for women than it does for men. Although stereotypes are changing, women are still more likely to serve as caretakers than men are, meaning they may accumulate less income and benefits due to their time absent from the workforce. Research shows that 31% of women are currently […]
Personal Finances and Inflation
If you have a balance on a credit card or an adjustable rate mortgage, you might be noticing changes in your payments. Higher interest rates are starting to ripple through the personal finance landscape, and it doesn’t look like that trend will change anytime soon. The Federal Reserve has indicated it plans to keep raising […]
Weekly Market Insights, April 18, 2022
Stocks posted losses in a holiday-shortened trading week as the first-quarter earnings season kicked off and investors digested new inflation data.The Dow Jones Industrial Average declined 0.78%, while the Standard & Poor’s 500 fell 2.13%. The Nasdaq Composite index dropped 2.63% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, lost […]
Inflation Math for Today’s Retiree
Retirement brings excitement as well as many concerns. You may have heard the saying, “inflation hurts savers and benefits borrowers.” The expression suggests that borrowers benefit from inflation because they pay back lenders with dollars worth less than when the money was initially borrowed. But for savers, your hard-earned dollars may lose buying power over […]
Monitoring the Fed and Interpreting Economic Signals
The Russian invasion of Ukraine has made the Fed’s interest rate decision a little more complicated. The Fed appears set to raise interest rates by 0.25% at its March meeting. Up until recently, there was talk by Fed officials that the economy needed a 0.5% bump to help manage inflation. Energy prices have been rising […]
3 Estate Challenges for Blended Families
Preparing your estate can be complicated, and if you’re a part of a blended family, estate decisions can be even more complex and nuanced. Blended families take on many forms, but typically consist of couples with children from previous relationships. Here are a few case studies to help illustrate some of the challenges. Case Study […]
Warren Buffet on Volatility
If you’re concerned about today’s market volatility, you might take some comfort from one of my favorite quotes by Warren Buffett. “I would tell them don’t watch the market closely,” said the Oracle of Omaha. Buffett’s quote was from 2016 when the markets were wrestling with Brexit, China’s economy, and, coincidentally, the Federal Reserve’s interest […]
Retirement, Seen Through Your Eyes
How do you picture your future? Some see retirement as a time to start a new career. Others see it as a time to travel. Still others plan to spend more time with family and friends. With that in mind, here are some things to consider. What do you absolutely need to accomplish? If you […]
Translating the “Fed Speak”
Most people have heard about the Federal Reserve, but I’ve found that few understand the many roles it plays in the overall economy over the years. The Fed makes headlines every few weeks by updating investors on what’s going on with interest rates. Most recently, the Fed said it’s prepared to raise interest rates next […]