PrairieFire’s I’s and R’s / Market Update
We have a quick video on the markets/world at large through the lens of the I's and the R's. https://bbemaildelivery.com/bbext/?p=video_land&id=c4a9a6b8-8e1e-49f7-ab2f-707ae25e405b
The End of the World as we Know it – 2.0
A few years ago, I used this R.E.M song to describe the negative tint in all things market, economy and policy related. As I write this on Monday, September 26th I am again marveling at the pervasive negative news across the world. Take your pick – a bumbling Fed, out of control inflation, Russia/Ukraine, and the Iowa Hawkeye’s offense – things seem bleak. All this dour energy is justified. We have seen a bear market take place in both bonds and stocks. That has not been the case since the early 80’s and has thrown a number of investment assumptions out the window. While I believe diversification and defensive posturing will always help – they haven’t been the lifeguard we’ve needed. So, what to do? 1. Acknowledge the negativity and recognize that these bad times, generally, do not last forever. We have persistent problems with high inflation and the [...]
Insights 2023 – Getting a Grip
Insights 2023 highlights the challenges that stem from new economic dynamics - higher interest rates, higher inflation and slowing growth. Oh My - what to do? Please join us on the replay of Insights 2023 - https://youtu.be/BiDSePM7fro
Trying to Time Recession?
Economies move in cycles – always have, always will The Federal Reserve has been steadily increasing interest rates in an attempt to slow the rate of inflation. Its efforts are yielding some results, although inflation remains stubbornly high. This may cause the Fed to keep rates higher for longer, which may increase the chances of a recession. It’s important to remember that economic fluctuations are normal, and if we enter a recession, it is not a time to panic. As detailed below, every recession is unique, with varying lengths and severities. Putting recessions in context, we have come through each slowdown in the past, and the trajectory of the U.S. economy over time has been positive. Stages of the business cycle1 The economy’s movement through alternating periods of growth and contraction is known as the business cycle. The business cycle has four phases: expansion, peak, contraction, and [...]
Understanding the September Effect: What It Is and Why It Happens
If you ask the average investor which month is the most volatile for the stock market, they will probably say October. It's a reasonable answer, but it's incorrect. Despite October's reputation for market-defining events like the crash of 1929 that led to the Great Depression, Black Monday's drop in 1987, and the federal bank bailout at the start of the Great Recession in 2008, over the last 25 years, September returns on the Standard & Poor's 500 stock index have been worse. This phenomenon has become known as the "September Effect." And as you can see in the chart below, this isn't just a U.S. market anomaly, but a global trend that has affected stock markets worldwide. With September upon us, we wanted to discuss the September Effect and assure you that your investment strategy takes into consideration that there will be periods of market volatility. We also [...]
Living Trusts: Understanding the Basics and Key Considerations
Estate management can be a complex and daunting task for many people, but it’s a critical step in helping your assets get managed and distributed according to your wishes. One popular tool that can be used in estate strategies is a living trust. A living trust can provide a flexible and efficient way to manage assets during your lifetime and after your death, but it’s important to understand how it works and whether it’s the right choice for your individual circumstances. Using a living trust or any other type of trust involves a complex set of tax rules and regulations. Before moving forward with a trust, consider working with a professional who is familiar with these rules and regulations. In this blog, we’ll dive into the details of living trusts, including how they differ from other types of trusts, what their benefits and limitations are, and how they can [...]
Charitable Giving 101
“Never respect men merely for their riches, but rather for their philanthropy; we do not value the sun for its height, but for its use.” - GamalielBailey As we near year-end 2022 many will contemplate giving strategies into their planning. There are many important causes that our clients care about and enjoy supporting. What I have found over the years, particularly after we review everyone’s tax return, is that not everyone maximizes their giving opportunities. My hope with this series of articles, social media posts and webinars is to help everyone make the most of their philanthropic giving. Let’s start with three ways to manage your giving this year. 1. Consider donating appreciated securities Many investors hold either individual stocks, mutual funds or exchange traded funds that have grown over the years. When those securities are sold, they realize or capture a capital gain. Those capital gains are then [...]
Coping with a Newly Cleared Schedule – Empty Nesting Edition
The kids are away at college and you now have something called free time. Giddy Up! Or maybe not… Now that the golf courses are starting to close for the winter season, what do you do with all of this free time? It may sound cliché, but a new hobby can go a long way. Finding a pastime that both stimulates and challenges you can be invigorating. It also can leave you with a feeling of accomplishment and fulfillment. Plus, hobbies are a great avenue for building personal relationships with others. To help you avoid the Netflix binge spiral, here are some recommendations from two experienced empty nesters for a sustainable and intriguing new hobby. Pickleball This sport is all the rage right now! Empty nesters, millennials, retirees, and college kids all have taken up this exhilarating game. Pickleball is enjoyed equally by men and women, with about 53% [...]
Transitioning to Medicare from Private Health Insurance Plans
Transitioning from Private Health Insurance Plans to Medicare As you approach retirement age, you may be anticipating transitioning from your private insurance to Medicare, which is a federal health insurance program that provides coverage to individuals who are 65 years or older. It’s important to consider a wide range of factors involved in making the transition to help ensure that you are getting the most appropriate coverage for your needs. Here are some of the critical factors to consider: Medicare Eligibility Medicare eligibility begins at 65 years of age. This is called your Initial Enrollment Period (IEP). It lasts for seven months, starting three months before you turn 65 and ending three months after the month you turn 65. For example, if your birthday falls on a date in May (outside of May 1st), your Medicare eligibility would be from February to August that year. If your birthday [...]
Top 10 Questions High Net Worth Individuals Ask About Social Security
Social Security, the program you may have spent a lifetime paying into, is designed to offer stability, supplemental income, and other valuable benefits that can play a role in your overall financial strategy after you retire. We've pulled together answers to 10 questions our clients ask most frequently regarding Social Security. If you are nearing retirement, this Q&A is designed to help you better understand what to expect from Social Security. 1. How are Social Security Benefits Calculated? Social Security benefits are typically computed using "average indexed monthly earnings." This average summarizes up to 35 years of a worker's indexed earnings. Social Security applies a formula to this average to compute the primary insurance amount (PIA). The PIA is the basis for the benefits that are paid to an individual. In general, the higher your earnings (up to $160,200, the maximum taxable amount in 2023), the higher your [...]