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How to Maximize Retirement Accounts from Former Employers
The journey to retirement spans a lifetime, marked by the pursuit of a fulfilling post-work life. Many Americans switch employers during their careers, resulting in the retention of 401(k) accounts from previous jobs. However, these...
Read MoreSmall Business Success: Financial Planning for Entrepreneurs
Small businesses represent a crucial pillar of the U.S. economy, as they employ half of the nation’s private-sector workforce and are credited with roughly 63% of the new jobs that have been created from 1995 to 2021, as per federal...
Read MoreThe Art of Financial Planning: Building a Solid Foundation
Some people avoid financial planning because they feel overwhelmed by all the numbers. Whether you suffer from the very real condition of arithmophobia or you simply don’t feel like you understand enough about finances to tackle your...
Read MoreNavigating Financial Stress During the Holidays
The holiday season is often portrayed as a time of joy, togetherness, and celebration. However, for many people, it can also be a source of financial stress and anxiety. The pressure to buy gifts, host gatherings, and partake in...
Read MoreRetirement Income Streams: Diversification for Financial Stability
Retirement is one of the most significant milestones in life. It represents the culmination of years of hard work and savings, but it also marks the beginning of a new financial chapter. Ensuring a comfortable and stable retirement...
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Closing Out the Year: Investment Strategies for Q4 Success
As the final quarter of the year approaches, investors are faced with a unique set of opportunities and challenges. The fourth quarter, often marked by increased market volatility and potential year-end considerations, requires a...
Read MoreKey Considerations for Couples Planning Retirement Together
As a financial professional, I often find myself discussing retirement plans with couples who are contemplating the idea of retiring simultaneously. The notion of embarking on a shared retirement journey, free to pursue dreams, travel,...
Read MoreFinancial Markets Feeling Uneasy
Welcome to October – as happens quite often this time of year, the last couple weeks have brought quite a lot of uneasiness to financial markets. The war in Ukraine continues and now the world has added a second “war”...
Read MoreHarvest Your Financial Potential
Tips for this Season of Preparation and Cultivation With the transformation of the leaves and a cool, refreshing breeze, fall offers more than just Pumpkin Spice everything. It's an annual opportunity to contemplate your financial...
Read MoreCrafting a Comprehensive Plan to Secure Your Family’s Future
Estate planning is not just about managing your assets or distributing wealth; it’s about leaving a legacy that lasts for generations. It’s a way to ensure that your hard-earned assets – and values – are preserved and passed down to...
Read MoreNational Savings Day
Use This Annual Reminder as an Opportunity to Strengthen Your Financial Future. Saving money isn't just a smart financial habit; it's an important step toward securing a prosperous and secure future. Mark your calendars! National...
Read MoreConditions Turn Negative for US Consumers
Negativity continues to circulate in the financial media and recently some well known economists at Morgan Stanley have focused their antagonism toward the US consumer. Some of the news we have already commented on in this weekly post...
Read MoreThe Q4 Playbook: Scoring Financial Touchdowns
With the final quarter of the year on the horizon, it's time to gear up for Q4 financial planning. The end of the year provides a unique opportunity to assess your financial landscape, recalibrate your goals, and set a course for a...
Read MoreDe-Dollarization…A Growing Trend?
Weekly we try to come up with topics from the financial media that we find interesting and feel our job to share our analysis with our readers. If you have been reading our writings for any length of time, you know that we are...
Read MoreWhat Does Financial Wellness Really Mean?
The concept of wellness is used often, generally when referring to a balanced and fulfilling life overall. But what does it mean when someone refers to their financial wellness? Financial wellness encompasses all aspects of an...
Read MoreBankruptcies on the Rise
In 2023 more than 400 publicly traded corporations have filed for bankruptcy protection. This is double the rate seen last year at this time. Fears are that the true negative effects of higher interest haven't filtered into the economy yet.
Read MoreLife Insurance Awareness Month
As the seasons transition and we enter fall, it’s a great time to reflect on the importance of securing your loved ones’ future. September is primarily recognized as Life Insurance Awareness Month, a season dedicated to highlighting...
Read MoreDebunking Common Myths about IRAs and 401(k)s
Individual Retirement Accounts (IRAs) and 401(k) plans are powerful tools for securing a financially stable retirement. However, misconceptions and myths can hinder individuals from making informed decisions about these essential...
Read MoreTen Birthdays Impacting Your Retirement Income
Your age significantly affects how much money you'll have during your retirement years, and different retirement benefits have different eligibility ages. Over the course of 23 years, from age 49 to 72, you'll need a financial...
Read MoreCommonly Overlooked Healthcare Expenses
Retirement planning is essential to financial security in the latter half of life. An area that usually gets overlooked is healthcare expenses. While healthcare is necessary for retirees, it can often be the most significant unknown....
Read MoreDeveloping a Financial Plan B
There are plenty of financial doomsdayers out there that write ad nauseam about the imminent demise of the U.S. dollar and how everyone needs to pile all of their assets into Bitcoin or gold or some foreign currency as a life raft to...
Read MoreA Cautionary Tale of Estate Planning
On August 16, 1977, the “King of Rock ‘n’ Roll,” Elvis Presley, died of cardiac arrest. While many famous icons fail to plan for their estate properly, Elvis thankfully did so just five months before his sudden passing. However,...
Read MoreSocial Security Taxation: Understanding How It Works
As the anniversary of the Social Security bill being signed into law (August 14, 1935)[i] approaches, we’re reminded of the intricate workings of the U.S. tax system. Social Security, a vital program designed to provide financial...
Read MoreEmployment Numbers Remain Strong
Strange economic numbers continue to show up in our post-Covid world and the most consistently surprising of these numbers has to do with employment… “If every unemployed person in the country found a job, we would still...
Read MoreDemystifying Income Tax in Retirement
On August 4, 1862, the U.S. collected income tax for the first time[i]. You may be ready to bid farewell to income tax obligations once you retire, but unfortunately, it’s not that simple. While the dynamics may shift, understanding...
Read MoreAsset-Rich but Cash Poor: Understanding the Retirement Predicament
Retirement is a time when most people expect to enjoy the fruits of their labor, with financial security and a steady income from investments or savings. However, for some individuals, this period can present a unique financial...
Read MoreDiscussing the Long-Term Care Question
Long-term care planning is an important aspect of retirement planning that is often overlooked. As people are living longer and healthcare costs are increasing, it is crucial to consider the cost of long-term care in retirement...
Read MoreConflicting Messages Again
Most every week we begin this post talking about the lack of consensus that financial markets and financial pundits are presenting. In addition to that most of our posts involve complaining about the Federal Reserve and their creation...
Read MoreUnderstanding the Retirement Picture for Gen X
A recent study by Investopedia found that Generation X’s biggest worry is retirement. The survey found that although many members of Gen X feel like they understand their finances, they are still concerned about transitioning into...
Read MoreUnderstanding the Classic Fixed Annuity
Whether you’ve learned about annuities before or it’s your first time hearing about them, it’s important to first understand the basic concept and one of its simplest forms. In general, an annuity is a financial product that provides...
Read MoreEconomy Slowing – Interest Rates Lowering?
As we have mentioned repeatedly in this weekly post, the resilience of the U.S. stock market considering aggressive interest rate hikes from the FED has been quite impressive. The driving force behind this strength could be a...
Read MoreAre Annuities Right for You?
Annuities can be an excellent addition to your financial and retirement portfolio, but it's essential to determine whether they're the right fit for you and your financial goals. Here are some ways to know if annuities are right for...
Read MoreHow Do Annuities Really Work?
An annuity is an investment product that is designed to provide a guaranteed income stream for a predetermined period, often for the rest of one’s life. An annuity is typically purchased from an insurance company, and the purchaser...
Read MoreNew Bull Market
If you have been paying attention to the financial press over the last week then you are probably familiar with the news that the S&P 500 is in a new bull market. This is of course, an arbitrary label that really doesn’t mean...
Read MoreCovering the Basics of Annuities for Annuity Awareness Month
June is Annuity Awareness Month, a time to educate individuals on the benefits and importance of annuities. If you’re new to annuities or need a refresher, keep reading to understand the basics of annuities.Basically, an annuity is a...
Read MoreRetirement Tips for the High Net-Worth Individual
Retirement is a major milestone in the life of every individual, and it is no different for high-net-worth individuals. If you’re one of these individuals, you may think that being comfortable means you can worry less about retirement...
Read MoreWall Street Bear Analysts Capitulate
The long-anticipated stock bear market and economic recession just hasn’t materialized. The Federal Reserve has gone on the most aggressive raising of interest rates in more than a generation in an attempt to stamp out inflation....
Read MoreCelebrate 529 Day on 5/29!
529 Day is a holiday celebrated at the end of May, usually on May 29. It is a day dedicated to promoting and raising awareness for 529 college savings plans, a tax-advantaged way to save for college expenses, K-19 schooling expenses,...
Read MoreRecession Indicator Warning
There is a lot of bad news, political, economic and otherwise in the news right now. It probably isn’t a huge surprise when we tell you that the Fed’s recession risk indicator is now greater than it was in November 2007. If...
Read MoreWhat is a Rolling Recession?
You may have noticed that the economy after the pandemic has been volatile. And while there has been talk of a possible recession for a few years, we have yet to enter a traditional recession. A recession is defined as a consistent,...
Read MoreThe Role of Dividends for Income Generation
One investment and income strategy that can be useful when it comes to setting yourself up for retirement is one involving dividends. Dividends are regular payouts to shareholders based on the profits of the company. If you own some...
Read MoreSpring Cleaning for Your Financial Strategy
Come springtime, you might be thinking about doing some spring cleaning, whether it’s cleaning out your garage, throwing out old items, or rearranging your furniture. However, it’s important not to forget to do some spring cleaning on...
Read MoreBankruptcies – A Bad Start to the Year
Of course, businesspeople fear bankruptcy, but it is an essential part of the structure of capitalism. Misallocated resources need to be reallocated and it can be a painful process. Up until the last year, we have been in a 30...
Read MoreFinancial Literacy – Do the Little Things
The concept of financial literacy refers to knowing the basics of financial concepts to make smart decisions. Specifically, financial literacy can help prevent costly mistakes that could derail your life plans, prepare you for...
Read MoreVery Low Volatility
So far the month of April has been remarkably boring with regard to the financial markets including stocks, bonds and commodities. This is quite surprising especially when considering the extraordinary events happening around the globe...
Read MoreThe Importance of Savings Accounts
In the world of retirement strategizing, the focus tends to be on 401(k)s, IRAs, pensions, or other retirement investment accounts. But that doesn’t mean you should forget about the traditional savings account.Savings accounts can have...
Read MoreTeaching Financial Literacy to Your Kids or Grandkids
As an adult, you may have had tough learning moments when it comes to financial management. It could have been when you failed to pay your rent on time or got too deep in credit card debt. To keep your children or grandchildren from...
Read MoreCBDCs - Is Crypto Our Future?
Crypto currencies have become quite the enigma in the modern financial world. Many people are fashioning careers off the crypto industry – some getting wildly rich and some losing entire fortunes or even getting murdered for...
Read MoreIntroducing Financial Literacy Month
Financial Literacy Month is not only a celebration, it’s a challenge to take care of your finances as best you can. This month can be your opportunity to review your finances and take a concerted approach to improve them. But what’s...
Read MoreEarnings Season and Crude Oil
The first quarter is now in the books and we start into the second quarter and earnings season. The stock market finished the first quarter on a strong note and many money managers are scratching their heads. There is a lot of negative...
Read MoreShould You Engage in Tax-Loss Harvesting?
If you’ve ever asked yourself, “what if there’s a way to reduce the taxes I owe when I sell stocks or rebalance my portfolio?” then you should know about the tax-minimization strategy called tax-loss harvesting. It’s important to know...
Read MoreGold is Money
The famous American financier J.P. Morgan famously said in his testimony in front of Congress in 1912 “Gold is money. Everything else is credit.” It’s interesting how much the world of finance has changed and yet this...
Read MoreHow Taxes Work on Social Security
You may not know it, but Social Security income is taxed! However, your tax burden isn’t simply a gross income tax, and there are unique factors that dictate your tax rate and overall tax liability. First, not all Social Security...
Read MoreBank Failures in the News
The last couple weeks of financial market news have been high anxiety considering the second and third largest bank failures in U.S. history. Silicon Valley Bank and Signature Bank have both been taken into receivership by the Federal...
Read MoreStriking a Balance Between Tax and Income
In retirement, it’s not about receiving as much income as possible. During your working years, it might be, but when you’re the one paying yourself, it’s important not to turn your hard-earned savings into a large pile of income that’s...
Read MorePlanning Your Investments? Think About Tax
Thinking about investment strategy may conjure thoughts of stock trading, ticker symbols, brokerage accounts, and investment theses. But one of the most important factors in developing an investment strategy is the tax aspect.There are...
Read MoreThe Trillion Dollar Secret
We have repeatedly mentioned in our weekly posts that the resilience of the stock and bond markets over the last several months has actually been quite impressive. Interest rate hikes by the Federal Reserve have completely changed the...
Read MoreDon’t Wait Until the Tax Filing Deadline: April 18, 2023
Don’t wait until April to prepare your taxes! Tax filing preparation is an important process for individuals and businesses. It is the process of gathering, organizing, and submitting tax documents to the relevant tax authorities. The...
Read MoreInflation Target of the Federal Reserve 2%?
Regular readers of our post are familiar with our dislike of the Federal Reserve and their policies in general. Their “mandates” from Congress of shepherding the economy into full employment with inflation stability and...
Read MoreThe Value of College in a Technocratic World
As the cost of higher education rises and the competition for spots at top colleges and universities steepens, you might wonder if it’s even worth it to make such a large investment in a college degree. The value of a college degree...
Read MoreCollege Budgeting Tips for Your Kids or Grandkids
Budgeting is one of, if not the most important life skill one can learn. As they grow up, you may have been able to teach them valuable budgeting and saving skills, but when they leave home for the first time, often to go to college,...
Read MoreCBDCs – Is This Really Happening?
Crypto currencies have been an enigma to the vast majority of the investing public – the public in general for that matter since their inception a decade plus ago. The meltdown of multiple online cryptocurrency trading exchanges...
Read MoreFinancial Aid Forms for Your Kid’s or Grandkid’s College Journey
Financial aid is a key piece of the college puzzle for many families. The sticker price of college in the US has gone up in the past decades, virtually across the board. What that means is financial aid is an increasingly important...
Read MoreFinancial Aid and the 529 Plan
This month, the education community celebrates Financial Aid Awareness Month often by sharing information with students and families about access to federal, state, and institutional student aid. College and higher education costs can...
Read MoreFinancial System Reset
Last week we talked about the Debt Ceiling and alluded to what an amazing mass of debt has been piled up by specifically the U.S. government– but also the world’s governments, businesses and individuals in general. Some of...
Read MoreQualified Charitable Distributions to Reduce the RMD Tax Burden
When you started out saving for retirement, you may have contributed to an IRA or 401(k) through your employer. In addition, you heard that your contributions were tax-deferred, and you’d have to pay taxes when you reached your 70s....
Read MoreDebt Ceiling
Happy Chinese New Year and welcome to the year of the rabbit!Even a decade ago, not one reasonable individual would have said that it was even possible – but here we are…The U.S. government is bumping up against its...
Read MoreReducing Taxes on Investments
Achieving a comfortable retirement often comes down to investment performance and tax burden. However, it’s a tricky task to balance investment gains with a tax-minimization plan. If you expect your investments to perform well, you may...
Read MoreThe Roth IRA as a Tax Planning Tool
Taxes may be one of your biggest concerns when it comes to retirement. Whether you’re well into your retirement or just starting to think about it, taxes can be one of the main factors in maximizing your savings to stretch all the way...
Read MoreEconomic Recession Numbers
Happy New Year everyone!! Welcome to 2023 and our weekly financial market updates!!Anyone paying attention to the Federal Reserve’s emergency COVID-19 policies knew that they were WAAAY too loose with financial conditions...
Read MoreDon’t Have a Taxing 2023
You may assume that there are no more tax minimization strategies to engage in after December 31. While most of your tax-lowering strategies do come before the new year, there are still steps you can take now, and all the way up until...
Read MoreGive Yourself a Boost Towards Your Financial Goals
For some, especially during these tough market conditions, their retirement investments and savings may have declined. Due to this setback, your retirement timeline may have been pushed back, tightening your budget, making you work...
Read MoreHow to Save for a Major Expense in Retirement
Saving for large expenses, whether in retirement or during your working years, is a tall task. It often requires you to cut back on spending and find ways to maximize your income. However, in retirement, there are some key differences...
Read MoreHas the FED Gone Too Far?
The Federal Reserve is raising short term interest rates at a furious pace – faster than they have done in decades in an effort to stave off inflation. The discount rate – or the rate that commercial banks pay for overnight...
Read MoreYou Won’t Reach your 2023 Financial Goals Without Priorities
If you search the Internet for tips on financial strategies, you’ll see many general rules and broad advice that may apply to an “average” retirement saver or retiree. But the truth is, those general pieces of advice rarely apply to...
Read MoreAssessing Your Financial Goals for 2023
For many, the turn of the new year is a time to self-reflect and make resolutions. There’s no better time to assess your financial goals for the new year and beyond by following proper financial goal-setting practices. Setting...
Read MoreMore Erratic Economic Data
It was a chaotic week of news headlines and most economists and investors watching economic data are expecting more inconsistencies going forward. The Federal Reserve continues to raise interest rates in order to “fight...
Read MoreThe State of Long-Term Care: Reflecting on LTC Awareness Month
The 2020 pandemic put the spotlight on the in-facility long-term care (LTC) industry. Nursing homes and assisted living facilities experienced woeful staffing shortages and unsafe practices that put people’s loved ones at high risk of...
Read MoreEconomic Data Weakening
For most of 2022 the economic numbers haven’t been so great. We had two consecutive quarters of declining GDP which is, by definition, a recession. Although we haven’t had the sort of slow down we had in 2020, many people...
Read MoreHow to Choose a Nursing Home
Considering a nursing home for long-term care or elder care is one of the most difficult decisions you and your family can encounter. Whether you have a health risk and planning for a future in a nursing home or are considering a...
Read MoreWhat Comes Next?
In recent posts we wrote repeatedly about all of the conflicting forces acting on our asset markets as we try to transition out of the Covid disaster. A year ago, the Fed was aggressively dovish and pouring trillions of dollars onto...
Read MoreHow Do Medicaid and Long-Term Care Relate?
Government assistance programs are a common option for people looking for healthcare coverage, especially over the age of 65. However, while Medicare covers a lot, even covering emergency hospital visits at no cost, it doesn’t cover...
Read MorePressure Released
Inflation data came out of the Bureau of Labor Statistics this week and initiated a fierce rally in asset markets –the biggest rally by some measures since just after the Covid selloff in 2020. Some of the rally was...
Read MoreThings are Volatile – Some is Good and Some is Bad
There have been some wild trading days recently in U.S. stocks and bonds both up and down driven by the news du jour. We have had earnings reports, inflation reports, employment reports, wild weather reports, war reports,...
Read MoreWhat You Need to Know About Long-Term Care and Home Care
This month marks Long-Term Care Awareness Month. We have the knowledge and tools these days to live healthily and happily throughout our lives. But as we age, we need to invest more in our health. That’s why it’s crucial to understand...
Read MorePreparing for a Wintery Market with A Helping Hand
When the winter seasons come around, you’ll likely have to adjust your routines and prepare. If you’re in colder states you may be looking to purchase a new winter coat or snow boots, skiing equipment for your winter holidays, or you...
Read MoreDon’t Get Spooked by Common Retirement Mistakes
This Halloween season, you may be thinking about spending time with friends and family and planning fun Halloween events with them. You may not be thinking about all the nuances of your retirement strategy, but when you think about the...
Read MoreThe Fed Sends Swap-Line to Switzerland
Volatility is still the norm in financial markets as the S&P puts together one of its biggest reversal moves in history. The CPI inflation numbers came out last week (Thursday) and surprised to the upside – meaning the...
Read MoreAre You Prepared for The Costs of Retirement?
Healthcare is one of the largest expenses for people in retirement, but it’s not easy to budget for them. Sometimes, accidents happen, or certain health-related concerns can come out of nowhere. Because of how difficult it can be to...
Read MoreMedicare Open Enrollment is Around the Corner!
With all this market volatility and inflation, talk about investment strategies and portfolio longevity seems to dominate the discussion on retirement. But one of the most important aspects of retirement is often overlooked: Medicare...
Read MoreBank of England Breaks Ranks
Central bankers around the world speak frequently and try to coordinate their activities. The raising of interest rates in an attempt to stave off inflation is consistent among central banks of the world’s developed economies....
Read MoreMarket Volatility and Dollar Strength
We have had two very rough weeks in the world’s financial markets. The stocks and bonds have sold off aggressively in the U.S. and across the globe. The S&P 500 went after its 2022 low that was set in June. Overseas rumors of a...
Read MoreProtecting Your Retirement With the Bucket Strategy
The Bucket Strategy is built to account for your needs at different stages of your life. But putting it into action is easier said than done. If you’re looking to build a retirement plan that’s structured to protect your savings and grow your savings over time, the Bucket Strategy might be for you. Get connected with our team today!
Annuities - A Little-Known Retirement Secret
You’re probably familiar with the classic retirement accounts such as 401(k)s, IRAs, and pensions. But did you know there is a financial product out there that is customizable and can be tailored to your specific risks and financial goals?
An annuity is an insurance-based financial product that takes in payments from individuals and pays them back usually over a long period of time in a flow of payments or a lump sum when a certain event occurs, such as a specific time, age, or if an illness occurs. The insurance company can accept payments over time or in one lump sum as well. The money in it is invested by the financial institution and grows until the date that the payments are to be distributed to the beneficiary or account owner.
An annuity can provide regular payments from a fixed-rate, variable, or indexed annuity.
Fixed-rate annuities often take the form of a singular lump sum that is structured to provide you a set amount of income periodically. It’s not exposed to any market risk, its payout rates are fixed, and its principal value does not grow or decline.
Variable annuities are market-exposed annuities. These annuities have more risk involved and their payout amounts usually factor in the portfolio performance. The amount invested in a variable annuity can grow or decline.
Index annuities are market-exposed annuities but track a diversified index of stocks or equities. These types of annuities are a middle ground between some of the riskier assets that go into a variable annuity and the risk-averse, non-market-exposed fixed annuity.
Though annuities may seem complicated, the basic idea is simple. An insurance company receives a fixed or variable income stream for a predetermined period, or for life, in exchange for money in return.
With your retirement accounts, such as your 401(k)s, IRAs, or Roth IRAs, there are annual contribution limits and age restrictions that are meant to have your money used in a specific way regardless of your unique circumstance. With an annuity, the main benefit is that it is structured to be tailored to your unique needs.
It’s important to know that any guarantees, like interest or market protection, are backed by the financial strength and claims-paying ability of the issuing insurance company.
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Europe's Energy Disaster
The energy situation plaguing Europe right now is no surprise to anyone as it has been front page news for months now being associated with the Russian invasion of Ukraine. From 20,000 feet, the reality of the situation is that Europe...
Read MoreAre Your Retirement Accounts Prepared for Taxes?
Taxes are one of the most important things to consider when it comes to your retirement. You’ll likely have several sources of income in retirement that can be taxed, such as IRA distributions and Social Security benefits. But is your...
Read MoreUnderstanding the Different Types of Life Insurance
Ever wonder what type of life insurance is best for you? It depends on various factors, including how long you want the policy to last, how much you're willing to pay, and if you wish to use the policy as an investment vehicle. Let's...
Read MoreCommonly Overlooked Healthcare Expenses
Long-term care is generally the most significant question mark when saving the optimal amount for your retirement years. According to Financial Professional Barry Bigelow, “statistically, if you're a married couple, there's a 25%...
Read MoreStuck in a High Tax Bracket? Try These Reduction Strategies
Let’s talk about tax brackets. They aren’t straight across the board but graduated based on income, meaning most taxpayers fall into more than one bracket. Current tax brackets are 10%, 12%, 22%, 24%, 32%, 35%, and 37%, and you could...
Read MoreNew European Debt Crisis
A common theme in our weekly posts is haranguing about the financial profligacy of our monetary authorities – the Federal Reserve – and from time to time we will extend some extra criticism of the Bank of Japan. This week...
Read MoreHow to Allocate Assets when Saving for College
Have you ever considered that saving for college is different than saving for your long-term retirement?Let’s start with the fact that, when saving for college, you’re saving for a specific year (the year of high school graduation)....
Read MoreInverted Yield Curve
Distortions in financial markets continue as the Federal Reserve tries to engineer a normalization of interest rates. Of course, inflation gets the biggest headlines in the financial news out there with the latest Consumer Price Index...
Read MoreMulti-Generational Planning and the Impact of Financial Literacy
Investopedia conducted a survey of 4,000 US adults in January and February of 2022 which included 1,000 individuals from each generation to better understand their financial literacy by generation. Side note: Seeing other generations’...
Read MoreMaking the Most of Your HSA
The average couple retiring today needs a whopping $315,000 to cover the cost of health care throughout their retirement.1 You’ll want to plan for those future health costs. Have you considered that your HSA (Health Savings Account)...
Read MoreDon’t Let Inflation Stress You Out During Retirement
ForbesAdvisor.com recently reported, “According to a 2020 survey from Allianz, nearly half of Americans are worried that rising prices in retirement will cause basic expenses to be unaffordable once they stop working. But there’s an...
Read MoreDifferent Generations, Different Financial Viewpoints
Every generation views their situation differently, from fashion to food to finance, and currently, there are seven defined generations. Let’s see how their views differ on finances and if you line up with your generation.1910-1927 The...
Read MoreThe Strength of the U.S. Dollar
Contrary to popular belief the U.S. dollar is not losing its world reserve currency status. The demise of the U.S. dollar has been a popular in the financial media for more than a decade. That is understandable considering the creation...
Read MoreThree Life Insurance Myths Young Families Should Research
For young couples just getting started, new commitments, such as buying their first home or having children, bring with them the responsibility of making sure their loved ones are financially covered. Life insurance can help loved ones...
Read MoreDoes Your Credit Score Matter After Age 50?
We’ve all seen the commercials for checking your credit score, and some even talk about ways to boost it, but if you’re over 50 and well established, does the number really matter that much? According to the FICO® Score model, the...
Read MoreEnlisting the FIRE Movement to Retire Really Early
Are you considering retiring before your full retirement age? Then you’re a part of the FIRE Movement, also known in long-form as "Financial Independence, Retire Early.” The Movement requires you to accumulate enough wealth to support...
Read MoreDo You Have a Clear Understanding of Caregiving Costs?
Many Americans underestimate the impact that caring for a loved one can have on their lives, marriage, work, and finances. In a column by Michelle Singletary, a Washington Post columnist, an “AARP study found that three-quarters of...
Read MoreWhere is Your Money Going Inside Your 401(k)?
A 401(k) is a common savings tool for many working Americans. It’s an easy way to save and generally comes with the benefit of employer matching. But are you really clear on where your money is invested and if it’s the optimal place...
Read MoreHow High Will Interest Rates Go?
Predicting the future price movement of actively traded commodity, bond, stock markets – really any market for that matter – can be very difficult endeavor. Indeed, sometimes it borders on a fool’s errand. However,...
Read MoreVolatility Continues
One day the U.S. stock indexes are up big in a 2% rally and the next day they give it all back. The markets are watching the news and bad news is good and good news is bad. That is how backwards the whole situation is. If the economic...
Read MoreANNUITIES – Why this Might be Good for Your Portfolio
According to Annuity.org, there are multiple reasons Americans are investing billions into annuities. There’s much talk around annuities regarding retirement planning, which leaves the conversation open to a lot of questions and...
Read MoreInterested in Annuities but Myths Holding You Back?
If the fear of outliving your retirement savings haunts you, then looking into income sources that can keep going as long as you do may not be such a bad idea. One way to potentially alleviate this financial anxiety is to consider an...
Read MoreWhy Even the Healthy People Consider Life Insurance
Insurance gets a bad rap and, as policies go, life insurance might be at the top of the list. But we’d like it to be on the top of your list for another reason. We often think of insurance as a means to paying for funeral expenses, but...
Read MoreHealthcare Industry and the Necessity for Coverage
Medical liability is a pervasive concern for physicians because of the potential effects of a settlement and the costs of fighting a prolonged and costly legal battle. While laws capping tort damages have been effective in some states,...
Read MoreEducators Considering Early Retirement
Most of the nation’s teachers and K-12 educational employees are members of their state’s public pension plans. After years of service, these plans have promised a secure retirement for educators and support staff. Unfortunately, a...
Read MoreAsset-Protection Strategies Worth Knowing
Your first line of defense against potential litigation will likely be insurance in the form of an “umbrella policy.” Your financial professional can help with the right coverage but be prepared for a policy that’s at least equal to...
Read MoreTalking Tax Benefits of Annuities
An annuity is an insurance product that pays out guaranteed income and can be used as part of a retirement strategy. The income you receive from an annuity can come monthly, quarterly, annually, or even in a lump sum payment. But what...
Read MoreLong-Term Care Insurance Premium Deductibility
According to IRS Revenue Procedure 2020-45, a couple age 70 or older who both have the right kind of long-term care insurance policy can deduct as much as $11,280 in 2021 an increase of $420 from the $10,860 limit for 2020. Essentially...
Read MoreIRS Tax Suggestions for New Business Owners
According to the US Census Bureau, there were 430,411 new business applications in January 2022.2 Starting a business sometimes comes with a learning curve that can trip you up, so it makes sense to get as many things as right as...
Read MoreHave You Created Your Retirement Road Map?
One of the most complex parts of preparing for retirement is thinking about life where working and building income isn’t the main focus. At times you may become so overwhelmed thinking about saving for an unknown future that you end up...
Read MoreThe Complexity of the Telemedicine Rollback
During the early months of the Covid-19 pandemic, all 50 states and the District of Columbia transitioned to telemedicine, in part due to state emergency orders that mandated the coverage of telehealth visits and waived requirements...
Read MoreTalking to Beneficiaries About Your Estate Intentions
It’s no surprise that couples disagree throughout their marriage. For the most part, those differences can be resolved relatively quickly, but common ground can feel very far off when it comes to estate planning. A few critical...
Read MoreWills Versus Trusts: Which One is Right For You?
Wills and trusts are both estate-planning tools that can help ensure your assets are protected and bequeathed to your heirs. However, the transfer process becomes more involved when passing wealth to a subsequent generation. We highly...
Read MoreThe Omicron Variant
Here we go again… The Omicron Variant is reportedly spreading around the world from a starting point in South Africa and it may be resistant to all the vaccinations. On the Friday after Thanksgiving that sent a huge shockwave...
Read MoreThe Future of Interest Rates
If you listen to radio adds encouraging you to refinance your mortgage, you may think that interest rates will be going higher imminently. You would get that same opinion from a lot of the financial market pundits who postulate that,...
Read MoreA Different Look at Inflation
There is a lot of talk in the economic/financial news about inflation – both what we are looking at today and expectations of future inflation. First let’s agree on the definition of inflation because we hear many different...
Read MoreWill the Asset Rally Ever End?
In case you missed our post last week, we discussed the policies of the world’s central banks – specifically the inflation of asset prices worldwide. https://andorracapital.com/historical-ratio-divergence/ We don’t...
Read MoreHistorical Ratio Divergence
Many strange things are permeating our financial markets even as hopes of a “return to normal” are still the goal – at least on surface level for reasonable participants. Of course, the more control of the financial...
Read MoreCurrency Experiments
The launch of cryptocurrencies began with Bitcoin in 2008 and at that point it had very little fanfare. The cost per Bitcoin was just over $.01. The origins of Bitcoin are still very mysterious even to this day. The “founder...
Read MoreWhat Could Go Wrong?
With the worst of the Covid issue seeming to be in the rear-view mirror, and the Federal Reserve (and the rest of the world’s central banks) continuing to provide more “liquidity” than is reasonably necessary, we...
Read MoreCentral Bank Liquidity
After a summer hiatus and without posting our weekly writeup, we are back after it and preparing for the fall. Hopefully all readers are healthy and happy and ready for the holiday season – of course Covid-free as the weather...
Read MoreInterest Rates
When we are describing conditions in the financial markets, interest rates are of very high concern and commonly mentioned at the forefront. We need to understand that there are many different interest rates in the world economy, but...
Read MoreWarning Signs
There has been much discussion and debate in recent weeks whether the current blast of inflation is permanent – or as the Fed has intimated, transitory because of Covid-19 supply chain disruptions. Surprisingly, there has been a...
Read MoreQuestion for the Federal Reserve
In our weekly post, we do our best to make sense of the complex world of the financial markets we are all invested in between stocks, bonds, real estate and commodities. The financial world is immensely complex with billions of...
Read MoreAll-Time Records
We are obviously in interesting times whether we are talking about political turmoil, weather extremes or the “pandemic” that doesn’t seem to be going away. If we are talking about national debt in financial terms we...
Read MoreEconomic Divergence at the Big Banks
Strange things are afoot at the Circle K… We know that this is not a perfect time to reference a second rate 80s comedy movie - Bill and Ted’s Excellent Adventure – we are supposed to be serious when writing about...
Read MoreEarnings Season
Earnings season begins this week, and the world markets are trying to balance the enthusiasm of a post-covid recovery and the reported data of lingering “pandemic.” In the week ending last Friday April 9, the numbers...
Read MoreMore Interest Rate Analysis
The most important price in the entire world is the price of money as defined by U.S. interest rates. We continually talk about the manipulation of the world’s asset markets by central banks and ground zero of that market...
Read MoreVelocity of Money
In this weekly post, we have repeatedly discussed our concerns about our Federal Reserve buying assets in the open market (mostly bonds) and keeping interest rates artificially low for years now. Historically low interest rates have...
Read MoreInflation Fears
The speed with which the U.S. economy has recovered after the Covid-19 shock has surprised most observers. According to Morgan Stanley estimates, the U.S. will reach pre-crisis output levels by the end of the current quarter. They...
Read MoreInterest Rates
The Treasury yield curve has steepened significantly in the last couple weeks, as bond investors sold because of fears of higher inflation in the future. The Federal Reserve continues to pump an excess of “stimulus” into...
Read MoreMore Regulation Needed?
The biggest news in the financial markets recently comes from an unusual situation in the stock of Gamestop. A week ago, this was a $40 stock, with the company losing well over $4 a share which is pretty typical in the retail world...
Read MoreEarnings Season Again
With about 25% of the S&P 500 companies having reported 4th quarter earnings so far this month, we have had some good news and some bad news. According to Bank of America, the good news is that 73% of companies have beaten expectations...
Read MoreWelcome to 2021!
From all walks of life all around the world, most people were happy to close the books on 2020. The pandemic, international military saber rattling, wild asset market gyrations and a crazy U.S. presidential election are just the tip of...
Read MoreU.S. Dollar Weakness
A consistent theme in our weekly post has been a concern over potential weakness in the U.S. Dollar. This anxiety is largely due to the performance of the Federal Reserve which has been dismal for decades. They have simply provided...
Read MoreCentral Bank Balance Sheets
Worldwide stock and bond markets continue to defy gravity in the wake of a resurgence of the Corona virus. Economic numbers are mixed to weak and as government stimulus has waned in recent months – but the stock indexes are full...
Read MoreOne Simple Trick for Saving More in Retirement
We all have financial responsibilities that can become a balancing act. Some that are significant to us while others aren’t. With competing financial obligations, there never seems to be enough money to go around and retirement...
Read MoreHoliday Shortened Week
We have the Thanksgiving holiday this week and many market observers seem ready for the break. We have seen such outrageous political headlines for quite some time now, that we are certainly not the only investors tired of reading that...
Read MoreVaccination vs Election
Pfizer has hit the headlines over the last two weeks with news of a vaccine for the corona virus. The effectiveness of the vaccine for the “general population” appears to be 90-95% which is a grand-slam home run....
Read MoreA Huge News Week
Of course, the election is first and foremost on the minds of most Americans and especially investors. However, the coming week will be much more than just the election. It is a "huge week" for investors with a Fed decision, 128...
Read MoreCovid-19 Numbers Getting Worse
The numbers of infected cases across the globe is coming back in another wave as the Northern Hemisphere starts to turn cold. This isn’t a surprise, of course. When looking at historical pandemics often subsequent waves turned...
Read MoreEarnings Season Again
Right now, the stock market is ping-ponging up and down on the news of whether or not the White House and Congress can agree on the next stimulus package. While the future of the economy being dependent upon more “stimulus”...
Read MoreEvents This Week
The upcoming week should be fairly quiet for the financial markets with China on holiday until Friday and the Vice-Presidential debate on Wednesday being the highlight event in the U.S. The only interest rate decision from the G20...
Read MoreMarkets Facing Volatility/Challenges
The stock market as defined by the S&P 500 has pulled back 10% recently, the NASDAQ more like 14%. Many regard this as a well overdue pullback and now staring at a number of challenges, the markets may have a difficult time rallying to...
Read MoreThe FED Moves the Goal Posts - Again
Last week at the Federal Reserve “meeting” in Jackson Hole (actually done remotely via Zoom) much of the discussion revolved around the Fed “mandate” of institution/initiating/managing 2% inflation. We put...
Read MoreRumors are Holding You Back
If the fear of outliving your retirement savings really haunts you, then looking into income sources that will keep going as long as you do may not be such a bad idea. You can potentially alleviate this financial anxiety by considering...
Read MoreHow this Election Year Could Impact the Economy and Your Retirement
Election years historically bring uncertainty to the stock market, and uncertainty often translates to economic volatility. While the changing of the guard will have an impact on your retirement, changes you make today can determine if...
Read MoreModern Monetary Theory
Stephanie Kelton, a professor at Stony Brook University recently turned up the apple cart in normal economic/monetary thinking with her book The Deficit Myth: Modern Monetary Theory and the Birth of the People’s Economy. Kelton...
Read MoreProgress of Economic Reopening
Individual states have all begun to reopen to some degree or the after the coronavirus thrust the country into lockdown starting in March. Nothing moves in a straight line, so now some states are pausing plans to re-open and a few are...
Read More2nd Quarter Earnings Season So Far
Everyone knows that there is a disconnect between the positioning of the major U.S. stock indexes and the performance of the economy. The question is whether that gap is going to be corrected by an economic rebound or by the stock...
Read MoreEarnings Season Is Here
We are now entering 2nd quarter earnings season for all publicly traded companies. This is where the rubber will meet the road for an answer to the dichotomy of tepid economic numbers along with a strong stock market that has launched...
Read MoreCOVID-19: Were You Prepared? What Will You Change?
The impact of COVID-19 is colossal and everyone is feeling the impact. We all know someone who needs extra care during this pandemic. Do you have the financial resources and peace of mind in place to help? Perhaps you are a child...
Read MoreRisk On or Risk Off?
The roller coaster in the stock market continues with volatility last week returning to the type of panic moves as we had in March. Trying to make sense of markets with economic numbers in full out depression territory and a...
Read MoreDebt Expansion
For years we have been writing about the expansion of debt that has been taken on world-wide by countries, companies, and individuals. That trend of debt accumulation has exploded higher in the last few months in response to the...
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Weekly Market Insights: Optimism for Re-Opening
The shortened week, which began with a powerful two-day rally of trading, was enough to drive the markets into another week of solid gains.The Dow Jones Industrial Average rose 3.75%, while the Standard & Poor’s 500 advanced...
Read MoreReturning Optimism
Risk on is the name of the investing game right now with the S&P 500 back above the 3000 level and the ten-year treasury yields sneaking back up over .7%. Bad economic reports and flare-ups political between the U.S. and China have...
Read MoreDivergence in Markets
If you are looking at a chart of the U.S. stock market indexes, you may think that the Corona Virus challenges are behind us and we are back to a full-steam-ahead sort of economy. The fundamentals of the economy, however, show a...
Read MoreHuge Week for Economic News
Tumultuous market trading has settled down over the last couple weeks with the VIX (volatility index) settling well back below forty. However, this week we will be bombarded with the peak week of Q1 earnings as well as announcements...
Read MoreHow Much Will Defaults Accelerate?
The turmoil in financial markets has been epic to say the least over the last two months. The coronavirus has effectively halted the world economy – and after the longest expansion in U.S. economic history, U.S. banks are...
Read MoreEarnings Season
After a torrid week of gravity defying gains in the world’s stock indexes last week, we see a dose of reality hit the markets for open this week. That reality will be the earnings season that is kicking off and the question is...
Read MoreLight at the End of the Tunnel?
With news organizations reporting nearly nothing save the coronavirus updates, most of the world is on hold waiting for indications of a timeline for the pandemic to subside. India, China, France, Italy, New Zealand, Poland, and the UK...
Read MoreVolatility Reigns
The rollercoaster ride of the stock market has hit some unprecedented levels recently. From the high print of late February, U.S. stock indexes sold off 30 something percent – in one month. The situation overseas has been worse...
Read MoreEmergency Central Bank Actions
The world has seen asset market turmoil over the last few weeks fueled by panic over the coronavirus situation. The fear is largely driven by the virus’ capacity to transmit quickly with little person to person contact as neither...
Read MoreInterest Rate Frenzy
As of the writing of this article the world-wide numbers on the Corona Virus aren’t pretty. The total number infected has risen to 100,034 and the death total stands at 3,825. Schools are closing, companies are cancelling travel...
Read MoreOne Week's Change!
One week has turned the entire financial world upside down and now everyone is scratching their heads wondering – what’s next?Coming immediately off an all-time high, in rough numbers the S&P 500 sold off 15% in about a...
Read MoreCoronavirus and Economics
Monetary authorities across the world have slashed interest rates 80 times over the last 12 months and printed upwards of $1 trillion over four months to counter the economic slowdown that is plaguing especially the developed world. As...
Read MoreHappy New Year!
The new year is rolling in with a lot of changes both in the economic/pollical world and with us as commentators on it! First and foremost, we at SES Services just moved offices – although within the same building. We moved from...
Read MoreInterest Rates
Interest rates have been coming down in America – and worldwide for that matter – since 1981 when Fed Chair Paul Volcker rocketed the Federal Funds Rate to 20%. As interest rates are, in essence the cost of money, things...
Read MoreStock Buybacks
Artificially low interest rates for the last decade, as we have written repeatedly have been one of the driving forces of asset prices going higher. One of the mechanisms through which these low rates drive stock prices higher is...
Read MoreMajor Market Averages Move Higher
The stock market surged to new all-time highs this week with the Dow Jones Industrial Average closing over 28,000 for the first time. Economic numbers this week, however, were actually quite dismal including poor retail sales numbers...
Read MoreTrade Optimism Boosts Markets Higher
The stock market is surging to new highs at least partially because of a positive update on the Chinese trade conflict. A senior White House official says the deal is almost done – but talks continue on tech transfer and IP...
Read MoreFED Expected to Lower Rates Again
Federal Reserve Chairman Powell is expected to deliver another U.S. interest rate cut at the FED meeting on Wednesday this week. Recent U.S. economic data has been mixed, with weakness among manufacturers contrasting with resilient...
Read MoreCorporate Bond Market Glut
The month of September set the new all-time record in world-wide corporate bond issuance – topping $300 billion for the first time. Issuance for the entire year is on pace for a new all-time record of about $2 trillion. Even...
Read MoreRates Go More Negative
Mario Draghi, president of the ECB announced a massive new bond-buying program last Thursday in a bid to stimulate the ailing euro zone economy. The central bank’s quantitative easing (QE) program will entail 20 billion euros per...
Read MoreWhat Will the Fed Do Now?
Until last month, the Federal Reserve has been on a tightening strategy since late 2015. The Fed was decreasing the size of its balance sheet and the Fed Funds rate was increased from essentially zero to the 2.25%-2.5% range. The...
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