Commentary

 

  • Social Security Windfall
    There are adjustments to Social Security in every year. Most often, we hear about benefit changes through cost of living adjustments (COLA)—a 2.5% increase in 2025. Some years have bigger changes. This year has one significant change that has largely gone unnoticed.

  • Long-Term Care Planning
    Planning for Long-Term Care needs is more than simply saving assets to meet expenses. There must be some foresight in choosing where and how to live as well as a process of downsizing assets. What we fail to do on our own behalf will have to be done by someone else… and it likely will not be done as we would have done it ourselves.

  • Handling Modern Long-Term Care
    Those at the extremes of financial resources don’t usually rely on insurance to meet the LTC need. The rich may choose to fund the need from what they have saved. The poor may turn to Medicaid for support. In the middle are those not wealthy enough to meet the need on their own yet too wealthy to qualify for state programs. This is why we have Long-Term Care insurance.

  • Understanding Tax-Advantaged Accounts
    Tax deferral is powerful for long-term wealth accumulation. There are accounts authorized by IRS code to help. Each has its purpose. It’s important to understand them and how they may be used.

  • Special Needs Planning
    Many parents face the challenge of caring for special needs children. Each child is unique and so are their families. The term "special needs" encompasses a wide variety of conditions and may mean different things to different people. The need may be medical as in cerebral palsy. It may be a physical condition such as blindness or a loss of limbs. It could be a neurological condition such as learning disabilities or autism. As different as the conditions may be, there are some common steps in planning for life and care.

  • Back to the Basics
    The new year is a time of new beginnings. Many people write down “New Years Resolutions” to start living their best life—doing the things they know are important for good health and well-being. We can do the same with our finances. We can’t change what came before, but we can start today and build a better foundation for the future. Let’s get back to the basics.

  • End of Year 2023
    As we approach year-end, we think of the holidays and time with family. It’s also worth spending time with one’s financial planning team. There are timely actions to consider before 2023 becomes a memory.

  • SECURE Act 2.0
    Another year, another SECURE Act. The new SECURE 2.0 was signed into law on December 29, 2022 clarifying some content from the original legislation and also expanding into new territory. There are many provisions touching employers, savers, retirees, and even young adults. While we await official guidance in some areas, here are some provisions that haven't received much press.

  • The Markets are Dealing with HICCUPS
    It’s been a tough year for investors so far. This seems like a good time for some perspective. Note that market conditions may have changed by publication date…

  • Understanding the Federal Reserve (The Fed)
    Who is the Fed and how do they function? What can they do about inflation and what are the expected effects on the economy? Investors should understand their role in maintaining stability in the financial system.

  • Looking Ahead to Tax Law Changes
    The tax regime we’ve been enjoying in recent decades through the Tax Cuts and Jobs Act (TCJA) will expire at the end of 2025. Unless a new law is passed, ordinary income tax brackets will increase to pre-TCJA rates and the estate tax exemption will decrease to pre-TCJA levels. Those with significant incomes and estates close to $5 million will want to consider implementing some reasonable strategies to prepare.

  • Inflation and Global Supply Chains
    All markets are governed by the forces of supply and demand. It doesn’t matter whether markets are local or global in scope. When supply exceeds demand, prices fall. When supplies become scarce relative to demand, prices rise. We are in an environment where supplies of many goods and services are constricted—and there will be economic consequences.

  • Fixed-Income in a Rising Interest Rate Environment
    The media is filled with discussions of rising inflation and interest rates. Why are these generally discussed together? Historically, there is a correlation. On the short end of the yield curve, the Fed tends to raise their Fed Funds rate to “cool” an economy generating higher inflation. The longer end of the yield curve is more unpredictable as it is driven by investor sentiment. If the Fed is too aggressive, they may cause short-term rates to rise above long-term rates and that scenario tends to signal a coming recession.

  • Financial Outlook for 2022
    It's always difficult to pen an article on the economy for a periodical magazine. Forecasts are valid as long as the current assumptions hold. There are a number of wildcards at play in this economy.

  • Creating Retirement Income with Less Common Securities: Excerpt 2
    My prior article discussed some common retirement income vehicles—bonds, equities, and annuities. Let’s tackle some less-common income vehicles here that may help diversify portfolio risk and sources of income.

  • Creating Retirement Income with Common Securities: Excerpt 1
    One of the challenges of investing during retirement is providing for annual income while balancing other considerations like liquidity needs, longevity of funds, risk tolerance, and anticipated rates of return for various types of investments.

  • Retirement - The Slowing Years
    As time goes on, our bodies become less able to do the things we've always enjoyed. We slow down our pace of life. In this period, we realize personally that we must prepare for what comes next.

  • Retirement - The Active Years
    One of the challenges of this period is balancing the "here and now" against the future. Our investments have a long time-horizon as this stage begins with a lot of life left to live. We have important decisions to make, though, that will have a lasting impact on the rest of retirement…

  • Understanding the SECURE Act
    The Setting Every Community Up for Retirement Enhancement (SECURE) Act became law on Dec 20, 2019. The Act is meant to improve savings habits in the United States. It includes changes to retirement and college savings accounts. Both areas add some new financial planning opportunities and challenges.

  • 2020 Outlook: Politics and Business
    This year promises to be one to remember. Will a record late-cycle economic expansion continue? What will be the result of Brexit on overseas markets? Will trade tensions increase or ease? Will there be increased investment volatility in the buildup to the election? We should talk about it.

  • Year-End Financial Planning Ideas
    This time of year is great for spending as much time as we can with our family and friends. We should also spend time making saving and investing decisions before the year ends. It will affect not only long-term goals but also the amount of taxes owed next April. It's a good time to sit with your financial advisor and make strategic decisions.