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                    [post_date] => 2022-08-12 12:07:21
                    [post_date_gmt] => 2022-08-12 17:07:21
                    [post_content] => By Scott Keegan, Associate Wealth Advisor

To wrap up my series on bucketing, I want to look at Bucket #3. To get a full picture of the bucketing system, check out our previous blogs on Bucket #1 and Bucket #2.



The Bucketing System can be good framework for people who are in or nearing retirement. Some may find that utilizing Bucket #1 and Bucket #2 strategies helps provide confidence in their retirement planning.

While more conservative investment can give that financial confidence, there also needs to be a portion of the portfolio that is more aimed at growth, or else we risk outliving our money if it isn’t growing as we go through retirement.

Bucket #3’s Job

Bucket #3’s job in the portfolio is to invest for long-term growth. The goal of this bucket is to fund the second half of retirement or provide a legacy to beneficiaries. This is the portion of the portfolio that will not be needed for expected expenses or distributions for at least six years. This allows us a good time horizon for these investments to grow, whereas the money in Bucket #1 or Bucket #2 will be needed in the near future by the client. Because this money is invested for more long-term growth, this bucket is often more geared toward stocks than bonds. We often remind clients in retirement that not all stocks are created equal. By this, we mean that owning a share of Berkshire Hathaway gives a more confident feeling than owning a share of GameStop or AMC. We tend to favor value stocks that pay dividends and are not highly volatile to make up the majority of Bucket #3 for clients in retirement. In terms of performance, Bucket #3 generally does the majority of the “legwork” because this is where we get more growth in the overall portfolio. The higher potential for growth also brings in risk to this bucket. We often compare the buckets to an old-fashioned spring doorstop; if you bent it and let it go, one end will fly back and forth while one end is secured to the wall:
  • Whether the market is going up or down, we expect Bucket #1 to be secured to the wall and not experience much movement.
  • Bucket #2 in the middle should move a little.
  • Bucket #3 would be the end, going up and down following the market fairly closely.
Bucketing becomes so valuable because we have time on our side when investing in Bucket #3 and we know we don’t need this money for at least six years. We don’t have to sell at market lows to produce income (that is Bucket #1’s job). We have staying power to wait for the markets to come back before we make any moves in Bucket #3. Once the market comes back from a correction, we can rebalance and secure profits from Bucket #3 and refill any distributions we have taken out of Bucket #1 or Bucket #2. Bucketing can be a very good system for retirees to utilize in an attempt to protect their income to help ensure their risk levels are in line with their financial plan. Schedule a no-obligation conversation to discuss what your buckets should look like.   This piece is not intended to provide specific professional advice. To determine what is appropriate for you, consult a qualified professional. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful. Rebalancing may be a taxable event. Before you take any specific action be sure to consult with your tax professional. [post_title] => Bucket Investment Strategy: Bucket #3 Is for Long-Term Growth [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => bucket-investment-strategy-bucket-3-is-for-long-term-growth [to_ping] => [pinged] => [post_modified] => 2022-08-12 12:07:21 [post_modified_gmt] => 2022-08-12 17:07:21 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.gertsema.net/?p=65471 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) [1] => WP_Post Object ( [ID] => 65467 [post_author] => 90034 [post_date] => 2022-08-12 12:04:32 [post_date_gmt] => 2022-08-12 17:04:32 [post_content] => By Jaymon Meikle, CFP®, Wealth Advisor One of my heroes is my Grandpa Meikle, who was an advisor himself and has been an important mentor my entire life. Another hero of mine is my Grandpa McKnight, or “Ray” to everyone else. Grandpa McKnight was a giant among men and was loved by many. He was lovingly referred to as Papa Bear by his grandkids and was never seen around his family without having at least one kid in his arms. Grandpa was an avid scouter and was my scout leader for a time. My grandparents loved kids and ended up with 12 children (eight biological and four adopted). They were foster parents for many years, which is where three of the four adopted children came from, two of whom (my Uncle Billy and Aunt Carrie) have Down syndrome. Grandpa worked hard to provide for his family, which was a constant challenge with having so many to care for, but he always found a way.

He Thought He’d Be Around Forever

Grandpa was an old-school gentleman who was convinced he would be around forever. The family needed him, so he was going to make sure he was always there. My father, who is also an advisor, tried many different times to get Grandpa to meet with him to go over his finances and to have the difficult conversation of what it would look like if he was no longer around, but Grandpa never took him up on the offer, saying that he was always going to be there. In December 2001, my grandparents bought a brand-new house on the north side of Phoenix, Arizona. They had never owned a new home, and it was a bit of a stretch for them to get it. Unfortunately, Grandpa never had a chance to live in it. On December 22 of that year, my older sister answered the home phone. It was my aunt looking for my mom, but my parents were out on a date. My aunt told my sister that Grandpa had a massive heart attack at home, just a few hours after running in to my mom and little sister at Costco, where he was picking out the Christmas ham. He was being rushed to the hospital. Cellphones were rare in 2001, and my parents did not have one at the time. I remember waiting anxiously for my parents to get home so that we could tell them to hurry down to the hospital. My parents barely made it to the driveway before all of seven us kids ran out to tell them what happened, and they turned around to speed to the hospital. We got a call later that night that Grandpa had passed. Our world was shattered. Grandpa was invincible – how could he be gone?

Chaos Begins

The next morning is when the chaos started to settle in. My grandma was completely lost without Grandpa. They had married when she was 16 years old, and she never dealt with any of the finances in all their years together. My mom and her siblings quickly realized they were going to have to step in and take care of everything. Together, the siblings found out there was essentially no estate plan or life insurance to help with the finances. Grandpa, believing that he would always be around, took a life-only option on his military pension (which was unknown to the rest of the family), so my grandma was left with the small amount of help they got from the state for adopting special-needs kids. So not only was my grandma left with very little income, but she was also now the owner of a new home that had to be paid for and had no assets to fall back on. By some miracle, my father was able to step in and work with the VA pension to get it switched over to my grandma, which gave her just enough to get by. Problem was there was still a funeral to pay for. My mom and her siblings had to not only plan the funeral, but pay for it as well, which was a major financial burden for all involved. Things were very difficult for a long time for my grandma and the rest of my mom’s family, largely because Grandpa didn’t take the time to create an estate plan and to discuss what would happen once he was gone. This situation could have been a lot worse, but this is an example of what can happen if you don’t make an estate plan or update that plan. When you fail to make a plan, you may end up hurting those you wish to protect. The conversation can be difficult, but it is wildly important. If you need help with figuring out where to start with your own plan, please give us a call at 816-259-5060 or schedule an appointment online. Grandpa and me, taken at a scout meeting when I was 11 years old. [post_title] => What Can Happen if You Don’t Plan: My Family’s Experience with Loss [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => what-can-happen-if-you-dont-plan-my-familys-experience-with-loss [to_ping] => [pinged] => [post_modified] => 2022-08-12 12:04:32 [post_modified_gmt] => 2022-08-12 17:04:32 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.gertsema.net/?p=65467 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) [2] => WP_Post Object ( [ID] => 65464 [post_author] => 90034 [post_date] => 2022-08-12 12:00:11 [post_date_gmt] => 2022-08-12 17:00:11 [post_content] => By Jaymon Meikle, CFP®, Wealth Advisor College is expensive. According to US News, the average cost of in-state tuition increased by 211% from 2002-2022. It is very likely that our kids will pay much more for their education than we had to for ours. On the other hand, the same could be said about our costs in retirement versus what our parents had to deal with. According to Yahoo News, the cost for health care alone has doubled since 2002 and will keep increasing as we live longer and longer lives. Anyone who has flown on a commercial flight has been through the safety briefing before the plane takes off. One of the main points is that if there is a loss of cabin pressure and the oxygen masks drop, it is vital that you put on your mask before you help even your own children. Finances are very much the same – it is vital for you to take care of your financial well-being before helping your children. It is from a position of strength that we can help others without hurting ourselves in the process.

Options for Paying for College

When it comes to paying for education costs, there are many different avenues that can be taken. One option is to take out loans to pay for education. Typically, debt should be avoided when possible, but it can be a useful tool in paying for schooling. For tips on paying for school, check out this blog written by my colleague and rockstar Associate Wealth Advisor Cristina Wiebelt-Smith, CPA. One additional way to reduce the cost of education that Cristina did not mention is sending your child to a community college for the first two years before moving to a university. The costs for community college on average are much lower than a four-year university. There is a lot of pressure for our kids to go straight to a university, but it will ultimately make very little difference in their education or ability to get their desired degree if planned properly.

You Can’t Finance Your Retirement

The unfortunate reality is that there are no loans that can be used to pay for your retirement, which is why I advocate for saving for yourself first. The burden of getting through retirement is slowly being pushed more to the individual than ever before. In the past, companies had pension plans that would supply an income stream for their retired employees, but pension plans are a rare benefit these days. Other benefits that past generations have relied on could look very different by the time we reach retirement, such as Social Security. In the end, it all comes down to setting your priorities and understanding the possible tradeoffs. If you prioritize your financial well-being and retirement, then your kids will most likely need to carry the cost of their education on their own. If your kids’ education is the priority, your kid may end up being your retirement plan. Hopefully this isn’t the case, but I have seen it happen. The beauty of making plans early and figuring out your priorities is that you can try to avoid any major tradeoffs and achieve all your goals. If you are wondering what you should do in your specific situation, give us a call at 816-259-5060 or schedule an appointment online. [post_title] => Should I Save for My Kids’ Education or My Retirement? [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => should-i-save-for-my-kids-education-or-my-retirement [to_ping] => [pinged] => [post_modified] => 2022-08-12 12:00:11 [post_modified_gmt] => 2022-08-12 17:00:11 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.gertsema.net/?p=65464 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) [3] => WP_Post Object ( [ID] => 65441 [post_author] => 125924 [post_date] => 2022-08-04 08:27:06 [post_date_gmt] => 2022-08-04 13:27:06 [post_content] => By Ryan Yamada, Senior Wealth Planner    When putting away for retirement, we often dream about all the things we’ll be able to do with that money – traveling, going out to eat, maybe trying new hobbies.   Of course, there are always the everyday household expenses to account for in your post-retirement budget. But one budget line that doesn’t always get enough attention? Health care.   If you think your health care costs will be similar to what you paid in your pre-retirement years, think again. Fidelity’s annual study found that the average 65-year-old couple retiring in 2022 will need $315,000 saved to cover their health care expenses throughout retirement.1 It’s a number that just keeps rising, too. This estimate is up $15,000 from last year’s study. Oh, and it doesn’t account for things like over-the-counter medications, dental care or long-term care costs.   In other words, health care may be the single biggest purchase you make in retirement.  Whether your retirement is still years away or you’re already retired, there are things you can do now that may help you pay for this major expense. Let’s dig into some ideas. 

Ways to Start Planning Early for Retirement Health Care Costs

Let’s start with the obvious: savings plans. Purpose-specific accounts, such as health savings accounts (HSAs), often have built-in tax incentives that can make them a worthwhile option. In some cases, HSAs can offer a triple tax-advantage –  tax deductions for contributions, tax deferral during the accumulation period and tax-free distributions for qualified health-related expenses. Be sure to check what HSA deductions are available in your state before you jump in.2  Another option is adding insurance coverage that can help pay for some of the more significant health events. Before going down this path, it’s important to ask yourself what you’re trying to protect against. Here are two of the more standard coverage options that people can choose from. 
  • Critical illness coverage. Standalone critical illness policies can provide lump-sum or itemized benefits for things like cancer, heart attacks or strokes. Additionally, some life insurance policies have optional riders that can be added to help cover for these conditions or events. 
  • Extended care or long-term care coverage. Insuring for an extended care event or for long-term care can be done in a number of ways, including standalone policies and policy riders on life insurance or annuity contracts. With insurance companies making regular changes to these policies and how benefits are paid out, it's important to work with a local, independent insurance advisor who can help you find the best options for your situation.
Finally, certain retirement accounts like Roth IRAs and 401(k)s may also have features that allow penalty-free withdrawals for medical expenses. However, depending on how contributions were treated, distributions may still be taxed on the way out.  

What to Do When You’re Nearing Retirement

As you prepare to leave the workforce, it's important to get a handle on all of your expenses – that includes what health insurance options are available to you. Are you eligible for Medicare or do you need to buy coverage in the marketplace? (Hint: Take a look at your most recent paystub and consider your employer's health care subsidy. It might surprise you!) When do you need to sign up for Medicare so you won’t miss out on your open enrollment window and incur penalties? Additionally, have you thought about any procedures you might want to have done while employed? Planning out these expenses could be a great way to reduce costs post-retirement.   If you’re retiring before 65, you probably won’t be eligible for Medicare yet, so you’ll want to figure out how to get coverage in the meantime. Some early retirees are lucky enough to be covered under their previous employer. Others may find part-time employers who will help to subsidize the cost. Other options may include health sharing or co-op plans, self-insuring or even moving abroad.   As you approach Medicare open enrollment, you can start working with a trusted and independent Medicare expert. Be sure to choose someone who's familiar with the plans in your state. If you’re a “snow bird,” be sure to ask them about each of the states you plan to reside in, as coverage needs can change from state to state.  Once you’re enrolled in Medicare, you should decide whether to sign up for a Supplement or Medicare Advantage plan or purchase dental, vision or long-term care coverage. Be sure to look at how all these plans work together to determine your maximum out-of-pocket costs. Then, you can build those costs into your retirement income plan.  

Preparing for the Unknown

Now that you’ve retired, you can only hope that all your careful preparations will meet your needs. But the one constant in life is unpredictability. If a time comes when you need more money than you’ve put away or something arises that you’re not covered for, there are additional strategies to consider.  First, don’t panic. Then, call your financial advisor. They’ll be able to provide professional guidance based on your own specific situation. If you don’t already have an advisor, we can help you find one in your area.    1 “How to plan for rising health care costs,” Fidelity. May 25, 2002. https://www.fidelity.com/viewpoints/personal-finance/plan-for-rising-health-care-costs 2 The Finance Buff, “California and New Jersey HSA Tax Return Special Considerations.” December 4, 2018. https://thefinancebuff.com/california-new-jersey-hsa-tax-return.html#:~:text=Because%20the%20state%20of%20California%20does%20not%20recognize,gross%20pay%20for%20calculating%20the%20federal%20tax%20withholdings.   [post_title] => Paying for Health Care in Retirement [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => paying-for-health-care-in-retirement [to_ping] => [pinged] => [post_modified] => 2022-08-04 08:45:26 [post_modified_gmt] => 2022-08-04 13:45:26 [post_content_filtered] => [post_parent] => 0 [guid] => https://carsonhub.wpengine.com/?p=65125 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) [4] => WP_Post Object ( [ID] => 65422 [post_author] => 12175 [post_date] => 2022-08-02 10:06:37 [post_date_gmt] => 2022-08-02 15:06:37 [post_content] => By Jamie Hopkins, Managing Director, Wealth Services  Sonu Varghese, Director, Investment Platforms; and Ryan Detrick, Chief Market Strategist, contributed to this report.    Senate Democrats have reached a general agreement on a bill to address climate change, taxes, health care, inflation and the deficit, according to a White House statement  This agreement came as a surprise to many after the Build Back Better Act of 2021 was unable to gain enough traction in the Senate. But after months of negotiations, Senate Democrats have released a text of the bill, 725 pages, outlining the new spending and tax revenue provisions.    The bill is not yet finalized, though it appears lawmakers are motivated to take action before the midterm elections. And because Democrats plan to pass the bill through budget reconciliation, it can avoid a filibuster and pass in the Senate with a simple majority.   The Senate plans to address the bill next week before the Senate breaks. The bill would then need to pass through the House before it lands on President Joe Biden’s desk for a signature.  The major provisions of this bill include:  
  • Installing a 15% minimum corporate tax revenue for certain large firms 
  • Medicare and prescription drug reform 
  • Spending to increase IRS enforcement and efficiency to enable more audits of companies and high-income individuals and to cut back on fraud 
  • Closing the carried interest loophole  
  • Lowering drug and health care costs through expansion of the Affordable Care Act 
  • Expansion of Medicare Part D Low Income Subsidies 
  • Tax credits for electric cars and other energy investments 
  • Investments into clean and renewable energy and environmental issues 
Though the bill’s official moniker is the Inflation Reduction Act of 2022, how much the bill will directly impact inflation today or in the long run is up for debate.   There are areas of the bill that may help with inflation. For example, the drug pricing provisions are very deflationary – especially for the PCE price index (the Fed's preferred indicator), since medical costs are a big part of that.  In addition, tax increases tend to be deflationary, since they pull money out of the private sector. This also applies to the IRS funding, which provides extra money for increasing compliance, (i.e., raising tax revenue).  On the other end, the spending provisions could be inflationary. If the energy- and climate-related policies raise investment, then that's a productivity boost. That said, the transition from fossil fuels to more carbon-neutral fuels could be rough and inflationary. One item not addressed in the bill is reform to speed up permitting for energy infrastructure, since it can't be passed through budget reconciliation. It's expected to be addressed in separate legislation in the fall.  The budget impact of this bill is expected to raise tax revenue and decrease the deficit over the next 10 years by about $300 billion  It is just as important to talk about what the bill doesn’t do. According to the White House and Senate Democrats, this bill will not raise taxes on any Americans making less than $400,000 a year. Additionally, the bill does not include any expanded child tax credits, capital gains rate hikes, free college or paid leave provisions that were found in the Build Back Better Act.   This bill would represent a revenue increase for the government, potentially reduce the deficit and make significant investments into health care costs and energy sectors. Remember, this is not a final bill and could still see changes or roadblocks ahead.    Jamie Hopkins is not affiliated with Cetera Advisor Networks, LLC [post_title] => Senate Addresses Taxes, Deficit, Inflation, Health Care in Proposed Bill [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => senate-addresses-taxes-deficit-inflation-health-care-in-proposed-bill [to_ping] => [pinged] => [post_modified] => 2022-08-02 10:10:21 [post_modified_gmt] => 2022-08-02 15:10:21 [post_content_filtered] => [post_parent] => 0 [guid] => https://carsonhub.wpengine.com/?p=65118 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) ) [post_count] => 5 [current_post] => -1 [in_the_loop] => [post] => WP_Post Object ( [ID] => 65471 [post_author] => 90034 [post_date] => 2022-08-12 12:07:21 [post_date_gmt] => 2022-08-12 17:07:21 [post_content] => By Scott Keegan, Associate Wealth Advisor To wrap up my series on bucketing, I want to look at Bucket #3. To get a full picture of the bucketing system, check out our previous blogs on Bucket #1 and Bucket #2. The Bucketing System can be good framework for people who are in or nearing retirement. Some may find that utilizing Bucket #1 and Bucket #2 strategies helps provide confidence in their retirement planning. While more conservative investment can give that financial confidence, there also needs to be a portion of the portfolio that is more aimed at growth, or else we risk outliving our money if it isn’t growing as we go through retirement.

Bucket #3’s Job

Bucket #3’s job in the portfolio is to invest for long-term growth. The goal of this bucket is to fund the second half of retirement or provide a legacy to beneficiaries. This is the portion of the portfolio that will not be needed for expected expenses or distributions for at least six years. This allows us a good time horizon for these investments to grow, whereas the money in Bucket #1 or Bucket #2 will be needed in the near future by the client. Because this money is invested for more long-term growth, this bucket is often more geared toward stocks than bonds. We often remind clients in retirement that not all stocks are created equal. By this, we mean that owning a share of Berkshire Hathaway gives a more confident feeling than owning a share of GameStop or AMC. We tend to favor value stocks that pay dividends and are not highly volatile to make up the majority of Bucket #3 for clients in retirement. In terms of performance, Bucket #3 generally does the majority of the “legwork” because this is where we get more growth in the overall portfolio. The higher potential for growth also brings in risk to this bucket. We often compare the buckets to an old-fashioned spring doorstop; if you bent it and let it go, one end will fly back and forth while one end is secured to the wall:
  • Whether the market is going up or down, we expect Bucket #1 to be secured to the wall and not experience much movement.
  • Bucket #2 in the middle should move a little.
  • Bucket #3 would be the end, going up and down following the market fairly closely.
Bucketing becomes so valuable because we have time on our side when investing in Bucket #3 and we know we don’t need this money for at least six years. We don’t have to sell at market lows to produce income (that is Bucket #1’s job). We have staying power to wait for the markets to come back before we make any moves in Bucket #3. Once the market comes back from a correction, we can rebalance and secure profits from Bucket #3 and refill any distributions we have taken out of Bucket #1 or Bucket #2. Bucketing can be a very good system for retirees to utilize in an attempt to protect their income to help ensure their risk levels are in line with their financial plan. Schedule a no-obligation conversation to discuss what your buckets should look like.   This piece is not intended to provide specific professional advice. To determine what is appropriate for you, consult a qualified professional. All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful. Rebalancing may be a taxable event. Before you take any specific action be sure to consult with your tax professional. [post_title] => Bucket Investment Strategy: Bucket #3 Is for Long-Term Growth [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => bucket-investment-strategy-bucket-3-is-for-long-term-growth [to_ping] => [pinged] => [post_modified] => 2022-08-12 12:07:21 [post_modified_gmt] => 2022-08-12 17:07:21 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.gertsema.net/?p=65471 [menu_order] => 0 [post_type] => post [post_mime_type] => [comment_count] => 0 [filter] => raw ) [comment_count] => 0 [current_comment] => -1 [found_posts] => 436 [max_num_pages] => 88 [max_num_comment_pages] => 0 [is_single] => [is_preview] => [is_page] => [is_archive] => [is_date] => [is_year] => [is_month] => [is_day] => [is_time] => [is_author] => [is_category] => [is_tag] => [is_tax] => [is_search] => [is_feed] => [is_comment_feed] => [is_trackback] => [is_home] => 1 [is_privacy_policy] => [is_404] => [is_embed] => [is_paged] => [is_admin] => [is_attachment] => [is_singular] => [is_robots] => [is_favicon] => [is_posts_page] => [is_post_type_archive] => [query_vars_hash:WP_Query:private] => 6b5c18c1252b6c6a9f5f8613c74e0017 [query_vars_changed:WP_Query:private] => [thumbnails_cached] => [stopwords:WP_Query:private] => [compat_fields:WP_Query:private] => Array ( [0] => query_vars_hash [1] => query_vars_changed ) [compat_methods:WP_Query:private] => Array ( [0] => init_query_flags [1] => parse_tax_query ) [tribe_is_event] => [tribe_is_multi_posttype] => [tribe_is_event_category] => [tribe_is_event_venue] => [tribe_is_event_organizer] => [tribe_is_event_query] => [tribe_is_past] => )

Bucket Investment Strategy: Bucket #3 Is for Long-Term Growth

By Scott Keegan, Associate Wealth Advisor To wrap up my series on bucketing, I want to look at Bucket #3. To get a full picture of the bucketing system, check out our previous blogs on Bucket #1 and Bucket #2. The Bucketing System can be good framework for people who are in or nearing retir …
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                    [post_content] => Women face unique challenges when it comes to investing, but they also have ample opportunities to succeed as investors. Learn what you need to know to get started with investing and understand what makes women especially suitable to be strong investors.

Download the checklist today to get started.

 
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                    [post_content] => Medicare can be a confusing topic for many. You can't simply sign up anytime you want – and your enrollment timeframe can depend on a variety of factors. To help you figure out when your eligibility begins, we have put together the following flowchart.

Download the checklist today to get started.

 
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                    [post_content] => Trillions of dollars will soon transfer from the Silent Generation and baby boomers to their adult children in what financial experts are calling “The Great Wealth Transfer.”

Are you one of the people expecting an inheritance in this historic transfer of wealth? Have you thought about the implications of receiving a tidy sum as a beneficiary?

Get ready and informed for your role as a beneficiary.

Download the checklist today to get started.

 
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                    [post_content] => The financial world is full of industry jargon and unfamiliar language that the average consumer may struggle to understand. This can be especially distressing during times of volatility, when we're all grappling for answers.

In this guide, we've broken down some of the most common phrases you might be hearing and reading to help you understand what's really being said.

Download the checklist today to get started.

 
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                    [post_content] => Gifting to your loved ones now or posthumously each carries their own positives and negatives as they relate to your estate plan, taxes, your goals and your legacy.

As you explore your options, refer to this guide. It offers a checklist, questions to ask your advisor and a conversation outline to help you communicate your wishes to your loved ones.

Download the checklist today to get started.

 
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Download the checklist today to get started.

 
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Resources

Resources

Find Your Freedom: Easy Steps for Beginning Women Investors

Women face unique challenges when it comes to investing, but they also have ample opportunities to succeed as investors. Learn what you need to know to get started with investing and understand what makes women especially suitable to be strong investors. Download the checklist today to get …
Continue Reading!
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                    [post_content] => Inflation slowed significantly in July. Lower energy prices, including a 7.7% decline in gasoline prices, helped the Consumer Price Index stay flat. Food and shelter costs helped offset the decline in energy prices. The core inflation rate fell to 0.3%, suggesting inflationary pressures are present but moderating from previous months. Estimates for both data points were 0.2% higher than the actual data. The annual inflation rate remains elevated at 8.5%. Producer prices reflected a similar trend as the Producer Price Index fell 0.5% last month.

Key Points for the Week 
  • The Consumer Price Index (CPI) was flat last month, and core inflation increased 0.3%. Both numbers were 0.2% lower than expected.
  • Expectations for future interest rate hikes fell in response to the CPI report after the previous week’s strong jobs report prompted them to rise.
  • Market breadth is improving; 80% of the S&P 500 is above its 50-day moving average.
Expectations for future rate hikes fell after the inflation data. The expected rate increase at the September Fed meeting dipped from 0.75% to 0.50%. Market expectations have been volatile. The strong jobs report earlier this month raised expectations for faster rate hikes, while the weak inflation report reversed them. Stocks responded positively to the news. Markets added to recent gains. The S&P 500 soared 3.3% last week. The S&P 500 is now down 9.9% from its record high. The MSCI ACWI of global stocks climbed 2.9%. The Bloomberg Aggregate Bond Index added 0.2%. This week will be relatively quiet for key economic releases. Retail sales will be released in the U.S. and China. The reports will provide additional information on how consumers are acting in the world’s two largest economies. Figure 1 A Respite from Rising Prices “The Consumer Price Index for all Urban Consumers was unchanged in July on a seasonally adjusted basis after rising 1.3 percent in June.” That was the surprising first sentence of the Bureau of Labor Statistics’ (BLS) Consumer Price Index report for July. In other words, the rate of price changes, i.e., inflation, was flat last month. July’s report showed the lowest monthly increase since May 2020 and fell short of expectations for a 0.2% increase. It was a welcome respite from the rapid increase in inflation that has gone on for more than a year. As the BLS noted in the report, prices have increased 8.5% over the last 12 months. The big driver for inflation running at a pace of 8.5% over the past year has been rising energy prices. But those fell 4.6% in July and were mostly responsible for headline inflation coming in flat. Gasoline prices, which are closely watched by the public, fell 7.7%. Food prices continued to increase, rising 1% in July and offsetting some of the decline in energy prices. The real surprise was below the headline number. Core prices (for items excluding food and energy) were expected to rise 0.5% in July, but they came in at 0.3%. This is the smallest monthly gain in core prices in 10 months. The details were very positive, with core inflation easing across a broad range of categories. Prices for used vehicles fell in July, as did prices for several other pandemic-impacted services, such as airline fares, hotels, and car and truck rentals, thus imposing a deflationary force for the first time in almost a year. Price changes in other categories, such as medical care, internet services and child care, also slowed or reversed. One major concern was prices for shelter (rentals and owner-occupied) continued to rise at a pace well above pre-pandemic levels. It eased a bit in July but nowhere near enough to pull inflation back toward the Fed’s 2% target anytime soon. Even if core inflation runs at a monthly pace of 0.3% over the next 12 months, yearly inflation would add up to 3.8%. That would be higher than at any point in the last 15 years, prior to this year. Combine this with the strong wage growth from last week’s payroll report, and it seems likely the Fed will continue its urgent pace of rate hikes, including a 0.75% increase in the federal funds rate at its September meeting. Markets clearly do not agree with this assessment and are currently pricing in a 0.50% increase next month. This is a reversal from expectations for a 0.75% increase that was priced in immediately after a surprisingly strong employment report. But we’re likely to bounce back and forth over the next few weeks. The Fed is no longer giving any guidance for its upcoming moves; instead saying it will be “data dependent.” This report supports that stance as the rapid rate hikes and gradual balance sheet reduction seem to be having some effect on inflation. A lot of data will be released between now and the Fed’s September meeting, including PCE price index data for July (Fed’s preferred inflation indicator) as well as employment and CPI inflation data for August. All these reports could result in higher volatility as investors scour them for clues on the committee’s next steps and whether July’s data was a brief respite or a new trend. - This newsletter was written and produced by CWM, LLC. Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. The views stated in this letter are not necessarily the opinion of any other named entity and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results. S&P 500 INDEX The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. MSCI ACWI INDEX The MSCI ACWI captures large- and mid-cap representation across 23 developed markets (DM) and 23 emerging markets (EM) countries*. With 2,480 constituents, the index covers approximately 85% of the global investable equity opportunity set. BLOOMBERG  U.S. AGGREGATE BOND The Bloomberg US Agg Total Return Value Unhedged, also known as “Bloomberg U.S. Aggregate Bond Index” formerly known as the “Barclays Capital U.S. Aggregate Bond Index”, and prior to that, “Lehman Aggregate Bond Index,” is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate pass-throughs), ABS and CMBS (agency and non-agency). Bureau of Labor Statistics. 08/10/22 https://www.bls.gov/news.release/cpi.nr0.htm Bureau of Labor Statistics. 08/11/22. https://www.bls.gov/news.release/ppi.nr0.htm CME Group. 08/14/22. https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html CNBC.com. Jeff Cox. 08/11/22. https://www.cnbc.com/2022/08/10/consumer-prices-rose-8point5percent-in-july-less-than-expected-as-inflation-pressures-ease-a-bit.html Compliance Case # 01459131 [post_title] => Market Commentary: Inflation Finally Falls Flat, Stocks Respond Positively [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => market-commentary-inflation-finally-falls-flat-stocks-respond-positively [to_ping] => [pinged] => [post_modified] => 2022-08-17 08:31:15 [post_modified_gmt] => 2022-08-17 13:31:15 [post_content_filtered] => [post_parent] => 0 [guid] => https://carsonhub.wpengine.com/?post_type=market-commentary&p=65154 [menu_order] => 0 [post_type] => market-commentary [post_mime_type] => [comment_count] => 0 [filter] => raw ) [1] => WP_Post Object ( [ID] => 65454 [post_author] => 90034 [post_date] => 2022-08-08 09:15:34 [post_date_gmt] => 2022-08-08 14:15:34 [post_content] => The U.S. job market didn’t get the message it was supposed to slow down. The establishment survey estimated 528,000 new jobs were created last month. Every employment sector experienced growth, although services and government hiring accounted for 87% of new jobs. Key Points for the Week
  • The U.S. economy created 528,000 net new jobs in July, more than doubling expectations for a 250,000 increase.
  • Unemployment reached the pre-pandemic low of 3.5% last month, while wages rose 0.5%.
  • Earnings are expected to have grown approximately 6.7% in July, but without energy stocks earnings have declined.
A couple pre-pandemic milestones were reached. There are now more people employed in the U.S. than prior to the pandemic. Unemployment also dipped 0.1% and reached the pre-pandemic low of 3.5%. Getting all these people to take jobs didn’t come cheap. Private sector wages increased 0.5% in July, which is faster than the economy can sustain without pushing inflation higher. S&P 500 earnings are expected to rise 6.7%. Energy companies have experienced rapid earnings growth as energy prices have climbed. Without energy growth, S&P 500 earnings would have dropped. The financial sector contributed most to earnings weakness, with approximately 25% of the S&P 500 still to report. Markets held on to the previous week’s gains, while faster growth pressured bonds. The S&P 500 added 0.4% last week. The global MSCI ACWI edged 0.3% higher. The Bloomberg Aggregate Bond Index declined 1.0%. The Consumer Price Index leads the list of economic data released this week. Markets will likely focus on core inflation as energy price declines are expected to help rein in July’s headline inflation. Figure 1 Jobs Data Show Underlying Economic Strength The U.S. employment report indicates the U.S. economy remains strong despite much speculation to the contrary. The economy added 528,000 new jobs last month, according to the establishment survey. Rather than job growth slowing, the survey indicated the economy added the second most new jobs this year. With the gains, the economy has added 3.3 million jobs in 2022 and 1.3 million in the last quarter. The problem may be the economy remains too strong, not too weak. The underlying data showed the gains were broadly based. Every industry increased employment. Health care and social services, leisure and hospitality and professional and business services all added close to 90,000 jobs. Government hiring, in advance of a new school year, rose 57,000. With the gains, employment reached the level it was before the pandemic, and the unemployment rate fell back to 3.5%, its pre-pandemic low. One area that hasn’t reached previous levels is labor force participation. The overall labor force participation rate fell to 62.1% in July. When only prime-age workers 25-54 are included, that number rises to 80.0%. Prime-age participation is close to the pre-pandemic record but not quite there. Because supply challenges are contributing to inflation, getting people back to work can help fill key roles and cap wage pressures. Fighting inflation will mean getting wage inflation under control. Prior to the pandemic, aggregate payrolls rose about 5% per year. Increased average hourly earnings accounted for most of the gains, and a significant minority resulted from new jobs being added to the economy. In the last 18 months, yearly payroll increases have averaged around 10%, with gains roughly split evenly between higher earnings and new jobs. The strong jobs data mean the chief worry has swung from recession back to inflation. As we noted last week, two negative quarters is a popular definition of a recession. The National Bureau of Economic Research uses six primary indicators to determine if the economy is in a recession. Only one of those is negative: real wholesale and retail sales. The nominal level of sales remains strong, but high inflation has pushed that indicator negative. A measure of real income excluding government payments to individuals is neutral. The other four indicators — total employment, employment level, real personal consumption, and industrial production — are all positive. For inflation to start declining, wage gains will have to slow. Renewed concerns about inflation mean the Federal Reserve may do more than expected. Prior to the jobs data, markets reflected a 66% chance for a 0.50% rate hike in September and a 34% chance of a 0.75% hike. After the jobs data, odds swung to 70% expecting a 0.75% increase and only 30% predicting 0.50%. Strong economic data mean the market expects the Fed to do more to tame inflation. The CPI report this week will be the next big indicator of current economic conditions. Core inflation excludes food and energy, and many believe that reflects the underlying trend in inflation better than headline data. Headline CPI, which has been higher than the core rate, should be lower than core inflation. In July, energy prices dropped, and that should help temper headline inflation. We will be watching core inflation to see if lower energy prices spilled over into core inflation categories and the rapid inflationary pressures start moving the other way. Keep in mind it will be more than a month before the next Fed meeting. Another employment and CPI report will be released before then. It also means the Fed’s tightening strategy will have another month to work itself into the economy. A rate hike in September seems nearly certain. The level will depend on how future data affect the overall outlook. Expect volatility to remain elevated and more swings between recession and inflation concerns. There is a lot to think about in the current market, and as we’ve learned the market is almost always worried about something. - This newsletter was written and produced by CWM, LLC. Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. The views stated in this letter are not necessarily the opinion of any other named entity and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results. S&P 500 INDEX The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. MSCI ACWI INDEX The MSCI ACWI captures large- and mid-cap representation across 23 developed markets (DM) and 23 emerging markets (EM) countries*. With 2,480 constituents, the index covers approximately 85% of the global investable equity opportunity set. BLOOMBERG  U.S. AGGREGATE BOND The Bloomberg US Agg Total Return Value Unhedged, also known as “Bloomberg U.S. Aggregate Bond Index” formerly known as the “Barclays Capital U.S. Aggregate Bond Index”, and prior to that, “Lehman Aggregate Bond Index,” is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate pass-throughs), ABS and CMBS (agency and non-agency). Compliance Case # 01453039 [post_title] => Market Commentary: U.S. Adds 528,000 New Jobs and Unemployment Reaches Pre-Pandemic Low [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => market-commentary-u-s-adds-528000-new-jobs-and-unemployment-reaches-pre-pandemic-low [to_ping] => [pinged] => [post_modified] => 2022-08-08 13:04:10 [post_modified_gmt] => 2022-08-08 18:04:10 [post_content_filtered] => [post_parent] => 0 [guid] => https://carsonhub.wpengine.com/?post_type=market-commentary&p=65141 [menu_order] => 0 [post_type] => market-commentary [post_mime_type] => [comment_count] => 0 [filter] => raw ) [2] => WP_Post Object ( [ID] => 65415 [post_author] => 90034 [post_date] => 2022-08-01 09:43:02 [post_date_gmt] => 2022-08-01 14:43:02 [post_content] => Last week was a big one for monetary policy and economic data. The Federal Reserve raised interest rates 0.75%, with unanimous agreement that higher rates were required to bring inflation under control. In his press conference, Fed Chair Jerome Powell announced the Fed was becoming more data dependent. The market interpreted that statement to mean rate hikes would likely slow in the future, especially if inflation starts moving lower. Key Points for the Week
  • The Federal Reserve raised rates 0.75% to a range of 2.25-2.50%.
  • U.S. gross domestic product declined 0.9%, restrained by falling goods purchases and slower inventory growth.
  • The S&P 500 gained 9.2% in July, its best month since COVID vaccine data was released in November 2020.
U.S. GDP shrank for the second consecutive quarter, contracting by 0.9%. Much of the economy remains strong, and services consumption continues to increase. Weakness in goods, inventories, housing, and government spending are contributing to signs the economy is slowing. The Personal Consumption Expenditures (PCE) Price Index confirmed the earlier Consumer Price Index report that inflation remains a challenge. PCE was up 1.0% as fuel prices added to pricing pressure in other sectors. Core PCE, which excludes food and energy, rose 0.6%. Markets welcomed the idea the Fed may slow interest rate hikes sooner than expected. The S&P 500 gained 4.3% last week to complete a 9.2% rally for the month. The global MSCI ACWI rebounded 3.3%. The Bloomberg Aggregate Bond Index jumped 0.6%. Figure 1 Are We in a Recession? Many investors seem to have learned that two quarters of declining GDP means the country is in a recession. Yet, this definition isn’t totally accurate. There are far more factors the National Bureau of Economic Research (NBER) uses to determine whether there is a recession, but for much of the public, the two-negative-quarters definition seems to have stuck. Like most rules, two quarters of economic decline isn’t a terrible test for a recession. The NBER defines recession as, “…a significant decline in economic activity that is spread across the economy and lasts for more than a few months.” Two quarters of declining GDP is usually significant, affects the broad economy, and lasts for more than a few months. Reality indicates recessions are more complicated. Figure 1 shows none of the last three recessions matches the popular definition of two consecutive quarters of GDP growth. The 2001 recession had two nonconsecutive quarters of growth. The Great Financial Crisis had multiple negative growth quarters but started with a down and then up quarter. The 2020 COVID crisis had two consecutive negative quarters only because the very short recession overlapped the first and second quarters. Sometimes quarterly economic patterns create short-term irregularities. The first quarter’s 1.6% decline in GDP had several. Personal consumption and investment remained robust. Declining federal spending from the end of pandemic-related support and weak exports, partly related to Russia’s invasion of Ukraine, caused the initial data release to show the economy shrunk in the first quarter. Those factors fail the test of the decline being spread across the economy. From a broader perspective, the vast majority of the economy remained strong. In fact, it was too strong, and the Federal Reserve was forced to embark on a program of rapid rate increases to tame inflationary pressures. The weakness in the second quarter was broader than the first. Goods spending dropped 1.1%. Residential investment fell 3.7%, in line with our expectations that higher interest rates would pressure housing demand. Government spending also continued to decline as pandemic-related programs continued to wind down. Each of these areas experienced abnormal growth during the pandemic. People sought out goods to make social distancing less painful. The demand for housing rose rapidly as some people left big cities and others sought to expand their homes. Government programs supporting people displaced by the pandemic are no longer as necessary. Inventories also stopped increasing as rapidly as in previous quarters, pulling growth lower. What is bouncing back is services consumption, which increased 1.0% in the second quarter. Exports also bounced back from the temporary weakness in the first quarter. While we don’t believe the U.S. has entered a recession, we do see the economy has slowed. Some of this pullback is necessary, as excess demand and lack of supply have caused unacceptable levels of inflation. Those inflationary pressures are quite broad. Wages rose 1.6% last quarter and are 5.7% higher than a year earlier. Core PCE inflation rose 0.6% last month. In order for inflation to move toward 2.0% per year, wage pressures will need to drop. The recession argument wasn’t the only item that interested markets. The Fed also indicated it is seeing some signs of economic slowing. According to Fed Chair Jerome Powell, the recent rate hike has raised rates to a “moderately restrictive level” and the Fed will be more data dependent. Markets took this statement to mean the Fed is willing to slow interest rate increases if inflation starts moving lower. Whether the U.S. ultimately enters a recession or not is still to be seen. Risks are higher than normal, but a recession, in our view, is far from certain. The Fed would like to avoid a recession, but previous comments suggest it would be OK with “softish landing” in which the economy entered a shallow recession and then rebounded without the inflationary pressure. The broader point is the Fed recognizes its policy has tightened materially and it will adjust its future outlook and not keep raising rates and creating a far worse economic slowdown. The S&P 500’s 9.2% increase last month indicates the market is moving that way as well. - This newsletter was written and produced by CWM, LLC. Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. The views stated in this letter are not necessarily the opinion of any other named entity and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results. S&P 500 INDEX The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. MSCI ACWI INDEX The MSCI ACWI captures large- and mid-cap representation across 23 developed markets (DM) and 23 emerging markets (EM) countries*. With 2,480 constituents, the index covers approximately 85% of the global investable equity opportunity set. BLOOMBERG  U.S. AGGREGATE BOND The Bloomberg US Agg Total Return Value Unhedged, also known as “Bloomberg U.S. Aggregate Bond Index” formerly known as the “Barclays Capital U.S. Aggregate Bond Index”, and prior to that, “Lehman Aggregate Bond Index,” is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate pass-throughs), ABS and CMBS (agency and non-agency). National Bureau of Economic Research. https://www.nber.org/research/business-cycle-dating Bureau of Economic Analysis. 7/28/22. https://www.bea.gov/news/2022/gross-domestic-product-second-quarter-2022-advance-estimate Bureau of Economic Analysis 6/29/22. https://www.bea.gov/news/2022/gross-domestic-product-third-estimate-gdp-industry-and-corporate-profits-revised-first Bureau of Economic Analysis.7/29/22. https://www.bea.gov/news/2022/personal-income-and-outlays-june-2022 U.S. Department of Labor Statistics. 7/29/22. https://www.bls.gov/news.release/eci.nr0.htm Federal Reserve. 07/27/22. https://www.federalreserve.gov/newsevents/pressreleases/monetary20220727a.htm Federal Reserve. 07/27/22. https://www.federalreserve.gov/mediacenter/files/FOMCpresconf20220727.pdf Compliance Case #01445642 [post_title] => Market Commentary: As Anticipated, Fed Announces Another 0.75% Rate Hike [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => market-commentary-as-anticipated-fed-announces-another-0-75-rate-hike [to_ping] => [pinged] => [post_modified] => 2022-08-01 12:23:09 [post_modified_gmt] => 2022-08-01 17:23:09 [post_content_filtered] => [post_parent] => 0 [guid] => https://carsonhub.wpengine.com/?post_type=market-commentary&p=65106 [menu_order] => 0 [post_type] => market-commentary [post_mime_type] => [comment_count] => 0 [filter] => raw ) [3] => WP_Post Object ( [ID] => 65404 [post_author] => 90034 [post_date] => 2022-07-25 09:14:36 [post_date_gmt] => 2022-07-25 14:14:36 [post_content] => Central banks are playing the leading role in today’s markets. Last week, the European Central Bank raised interest rates 0.5%, pulling the deposit facility rate to 0%. It is the first interest rate increase in 11 years and the first time the rate hasn’t been negative in eight years. Japan’s central bank took a different approach, leaving rates stable. The Japanese Consumer Price Index has only risen 2.3% in the last year. That is much higher than normal but close to the target of 2%. Key Points for the Week
  • The European Central Bank joined the inflation fight, raising rates 0.5%. Japan left rates unchanged.
  • The United Kingdom continues to lead all G7 countries with a 9.4% inflation rate.
  • Housing starts fell 2% last month as higher interest rates pushed demand lower.
The U.K. is on the other end of the inflation spectrum. Inflation in Britain jumped 0.8% last month and is now 9.4% higher than one year ago. The Bank of England indicated a 0.50% hike is possible at the next meeting given that inflation has remained elevated despite a steady stream of 0.25% rate increases. The domestic housing market is starting to respond to higher interest rates in the U.S. Housing starts fell 2%, the second straight monthly decline (Figure 1). The Federal Reserve is likely to reduce demand further by increasing interest rates 0.75% at its meeting this week. Markets seem to have priced many of these events in already. The S&P 500 gained 2.6% last week. The global MSCI ACWI rebounded 3.2%. The Bloomberg Aggregate Bond Index rallied 0.7% as long-term rates declined despite the widely expected additional rate increases.   Figure 1 Nearly a Full Court Press In basketball, a full court press is when the defense pressures the offense the entire length of the floor. Every player needs to exert significant effort for a press to be successful. If only three of the players are trying to press and the rest are not, the press will be broken fairly easily. Global central banks are engaging in their own version of the full court press against inflation as more central banks are joining the effort to reduce excess global demand. Until last week three major players hadn’t raised rates: the European Union, China, and Japan. We will examine each country as we look toward the Federal Reserve interest rate decision this week. The European Central Bank surprised markets last week by raising interest rates 0.50% to 0%. The reason this is so surprising is it is the first time in 11 years that the ECB increased interest rates. In fact, this is the first time in eight years that the deposit rate in Europe is positive. The market expected the increase to be 0.25%, but June’s outsized inflation report at 8.6% caused the ECB to raise rates more aggressively. Interestingly, the ECB didn’t provide any forward guidance on moves it may make later this year. It has signaled it will be data-dependent, meaning it will wait to see what the July inflation number looks like. One reason the ECB may be hesitant to raise rates too quickly is Europe’s inflation is being driven by supply issues, especially on energy due to the conflict in Russia. The European economy has weakened as the sanctions on Russia have slowed growth. Exacerbating the problem is weakness in the euro. The euro is as weak as it’s been in the past 20 years, which is making energy imports priced in U.S. dollars even more expensive. A 0.50% increase showed markets the ECB was serious, while the lack of future guidance reflects the weak European economy. Japan’s central bank has been the lone holdout of major developed economies. The Bank of Japan announced last week that it would keep interest rates unchanged, with its short-term rates remaining at -0.1. This comes despite the weakest level for the yen versus the U.S. dollar since 1998. The fear from BOJ governors is that any increase in rates, even to stop the fall of the yen, would be too damaging to Japan’s economic recovery. The difference is Japan is experiencing much more muted inflation than the U.S. and Europe. The expectation in Japan is that core inflation will increase by only 2.3% over the next year. China’s monetary policy has moved in the opposite direction from the rest of the world. The Chinese have actually cut rates and taken other steps to invigorate the economy. At first glance this doesn’t make much sense, as China is a big importer of energy. China’s situation is different because it will buy oil from Russia, likely at a lower price than what the rest of the world pays. It also continues to lock down cities and engage in strong forms of social distancing. By restricting activity, the Chinese are effectively pushing down demand for all sorts of goods and services, and those policies are likely doing more to slow their economy than a 0.50% rate hike. We expect central banks to ratchet up the pressure more next week. The Fed is expected to raise rates 0.75% when its meeting concludes on Wednesday, matching June’s increase. Any other outcome would be surprising. Fed Chair Jerome Powell’s press conference after the meeting will be watched closely for future guidance. If rates move up 0.75%, the target rate will be 2.25-2.5%, which is above what the economy could sustain before COVID. Our expectation is the broad number of nations tightening policy will start to reduce the effects of excess demand on inflation and remove some of the pressure from supply-constrained markets at the same time. The Fed moving rates past what many believe is neutral means short-term rates will be working to slow the economy. The ECB moving rates to 0% means the strange incentives encouraged by negative rates will disappear. Every rate hike helps to slow the economy, but the ECB hike last week and the expected Fed move this week are key events in the fight against inflation. - This newsletter was written and produced by CWM, LLC. Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. The views stated in this letter are not necessarily the opinion of any other named entity and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results. S&P 500 INDEX The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. MSCI ACWI INDEX The MSCI ACWI captures large- and mid-cap representation across 23 developed markets (DM) and 23 emerging markets (EM) countries*. With 2,480 constituents, the index covers approximately 85% of the global investable equity opportunity set. BLOOMBERG  U.S. AGGREGATE BOND The Bloomberg US Agg Total Return Value Unhedged, also known as “Bloomberg U.S. Aggregate Bond Index” formerly known as the “Barclays Capital U.S. Aggregate Bond Index”, and prior to that, “Lehman Aggregate Bond Index,” is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate pass-throughs), ABS and CMBS (agency and non-agency). Wall Street Journal. Megumi Fujikawa. 7/21/2022. https://www.wsj.com/articles/bank-of-japan-sees-inflation-hitting-2-3-this-fiscal-year-11658374450 Wall Street Journal. The Editorial Board. 7/21/2022. https://www.wsj.com/articles/the-ecb-raises-while-mario-draghi-falls-christine-lagarde-european-central-bank-interest-rates-italy-11658426371 Financial Times. Chris Giles. 7/20/2022. https://www.ft.com/content/e777a2d1-bc5c-4e01-8605-2be0682aad5e US Census Bureau. 7/19/2022. https://www.census.gov/construction/nrc/pdf/newresconst.pdf VOA. 7/06/2022. https://www.voanews.com/a/fresh-covid-19-outbreaks-put-millions-under-lockdown-in-china/6648113.html CME Group. 07/24/2022. https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html Compliance Case #01439315 [post_title] => Market Commentary: European Central Bank Joins Fight Against Inflation, Raises Rates 0.5% [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => market-commentary-european-central-bank-joins-fight-against-inflation-raises-rates-0-5 [to_ping] => [pinged] => [post_modified] => 2022-07-25 13:39:33 [post_modified_gmt] => 2022-07-25 18:39:33 [post_content_filtered] => [post_parent] => 0 [guid] => https://carsonhub.wpengine.com/?post_type=market-commentary&p=65094 [menu_order] => 0 [post_type] => market-commentary [post_mime_type] => [comment_count] => 0 [filter] => raw ) [4] => WP_Post Object ( [ID] => 65364 [post_author] => 90034 [post_date] => 2022-07-18 09:46:09 [post_date_gmt] => 2022-07-18 14:46:09 [post_content] => The Consumer Price Index (CPI) leapt 1.3% in June, following a 1.0% increase in May. The measure of inflation has risen 9.1% in the last year and reached its highest level since 1981 (Figure 1). Energy prices have been the top contributor in the last 12 months, responsible for 3.0% of the 9.1% annual increase. Core CPI, which excludes food and energy, rose 0.7%. Its annual level continues to slide lower, dropping from 6.0% to 5.9%. Shelter costs rose sharply as rents and housing prices pushed them higher. Key Points for the Week
  • The Consumer Price Index jumped 1.3% in June, beating expectations. Inflation has now increased 9.1% in the last year.
  • Retail sales surged 1.0% as higher prices and strong employment helped retail demand stay robust in the face of higher inflation.
  • Chinese GDP fell 2.6% in the second quarter. Lockdowns and a weaker property market caused the Chinese economy to shrink.
The U.S. consumer is holding up well despite the inflationary pressures. June retail sales rose 1.0% and are 8.4% higher over the last year. When adjusted for inflation, consumers are paying more for slightly fewer goods as inflation has risen faster than sales. In June, the 1.0% rise in sales lagged the 1.3% rise in inflation, and the 8.4% yearly sales gain trails the 9.1% inflation hike. For example, gasoline station sales surged 5.9% because gasoline prices were significantly higher. Chinese GDP fell 2.6% last quarter as China’s approaches to COVID-19 restricted economic activity. The shutdowns were major contributors to retail sales falling in April and May and only partially rebounding in June. The risk of future lockdowns continues to loom large on Chinese growth and the global supply chain. Markets were lower last week, although a rally on Friday after the retail sales report helped narrow weekly losses. The S&P 500 fell 0.9%. The global MSCI ACWI gave back 1.6%. The Bloomberg Aggregate Bond Index rallied 0.9%. The Job Openings and Labor Turnover Survey as well as second quarter earnings are the key data points likely to move markets this week. Figure 1 Inflation Spirals Higher U.S. inflation continued to run higher in June. A monthly increase of 1.3% added to already high inflation and pushed the yearly inflation rate to 9.1%. As we shared last week, pay increases have been most rapid for those with the least education and lowest-paying jobs. While these pay gains have helped, this group is also the most vulnerable to increases in inflation as they spend a higher percentage of their incomes on basic goods and have less spending flexibility than higher earners. Energy costs have contributed significantly to annual inflation. Although energy makes up only 7% of the basket of goods used to measure CPI, it has contributed 3.0% to the yearly inflation rate, accounting for nearly one-third of the increase. When combined with food and auto prices, the three categories contributed 56% of the inflation, yet make up only 28% of the basket. Any relief in these areas could help slow inflation. The details of the report provided little positive news. A few travel categories reported lower prices, but those have still increased by more than the overall CPI average in the last year. A plethora of categories climbed more than 0.5%, suggesting inflation pressure continues to broaden. Some relief on energy prices will help next month's report. Gasoline prices have declined for more than 30 straight days, after peaking in early June. Because the average price in June was above May’s average, gasoline pumped inflation higher in June. That should reverse in July. Some factors working in the opposite direction will make next month’s inflation a tougher comparison. Monthly inflation ebbed lower in the third quarter last year, and that means smaller monthly increases may still push the annual inflation rate higher than the already high 9.1%. The Federal Reserve meeting in two weeks is the next big event in the ongoing fight to lower inflation. In its recent minutes and subsequent press appearances, Fed governors have gone out of their way to make up for being overly optimistic about inflation trends earlier. Since dropping “transitory” from its description of inflation late last year, the Fed has become more hawkish, meaning it has more will to raise rates. That hawkishness, combined with the big jump in CPI, has cemented expectations for at least a 0.75% increase in interest rates later this month. Some have begun to forecast an increase of 1.0%, matching the Canadian central bank’s recent hike. A 1.0% increase seems a big step given the moves already made by the Fed and others. Even amid the high inflation, strong employment environment, and solid retail sales, there are signs the global economy is slowing. The International Monetary Fund (IMF) announced it will reduce its projections for economic growth for the second time in three months due to the ongoing war in Ukraine, higher inflation, and ongoing supply bottlenecks. Some Fed governors are counselling against raising rates too fast. Esther George, who leads the Federal Reserve Bank of Kansas City, worries, “…that a rapid pace of rate increases brings about the risk of tightening policy more quickly than the economy and markets can adjust.” Interest rate hikes often slow the economy after a lag, as some economic momentum takes a while to reverse. The U.S. is not alone in raising rates. The U.K., South Korea, Canada, and Australia have all increased rates, which will help slow global activity. According to the IMF, 75 central banks have raised interest rates since July 2021. Perhaps a useful analogy for the Fed’s current challenge is someone trying to train for a marathon after sitting on the couch for most of the pandemic and then postponing the start of the training program until long after the recommended start date. The erstwhile marathon runner will have to accelerate her training much more rapidly to get in good enough shape to finish the race. At the same time, the intense training regimen required increases the chance of injury. The Fed is in a similar situation. Having waited too long to start increasing rates, it finds itself having to walk a narrow path between pushing too hard and not pushing hard enough. Based on the signals the Fed is giving, we expect it will increase rates 0.75%. That attempts to balance the goal of taking big steps to curtail inflation while still giving the economy and markets time to adjust to a higher rate environment. - This newsletter was written and produced by CWM, LLC. Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. The views stated in this letter are not necessarily the opinion of any other named entity and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results. S&P 500 INDEX The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. MSCI ACWI INDEX The MSCI ACWI captures large- and mid-cap representation across 23 developed markets (DM) and 23 emerging markets (EM) countries*. With 2,480 constituents, the index covers approximately 85% of the global investable equity opportunity set. NBC News. Laura Eagan. 07/17/2022. https://www.nbcnews.com/politics/gas-prices-are-falling-voters-say-arent-feeling-relief-rcna37680 IMF. Kristalina Georgieva. 07/13/2022. https://blogs.imf.org/2022/07/13/facing-a-darkening-economic-outlook-how-the-g20-can-respond/ Wall Street Journal. Nick Timaros. 07/17/2022. https://www.wsj.com/articles/fed-officials-preparing-to-lift-interest-rates-by-another-0-75-percentage-point-11658068201?mod=hp_lead_pos1 Wall Street Journal. Michael S. Derby. 07/11/2022. https://www.wsj.com/articles/feds-george-concerned-about-effect-of-aggressive-rate-rises-on-economy-11657554589?mod=article_inline Cheddar News. Alex Vuocolo. 12/15/2021.0 https://cheddar.com/media/fed-chair-powell-drops-transitory-from-statement-speeds-up-taper#:~:text=Fed%20Chair%20Powell%20Drops%20'Transitory'%20From%20Statement%2C%20Speeds%20Up%20Taper,-Dec%2015%2C%202021&text=As%20prices%20for%20goods%20hit,in%20its%20latest%20policy%20statement US Bureau of Labor Statistics. 07/13/2022. https://www.bls.gov/news.release/cpi.nr0.htm US Census Bureau. 07/15/2022. https://www.census.gov/retail/marts/www/marts_current.pdf CNBC. Evelyn Cheng. 07/14/2022. https://www.cnbc.com/2022/07/15/china-q2-gdp.html Compliance Case # 01432458 [post_title] => Market Commentary: U.S. Consumers Still Strong Amid Inflation; Fed Remains Hawkish [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => market-commentary-u-s-consumers-still-strong-amid-inflation-fed-remains-hawkish [to_ping] => [pinged] => [post_modified] => 2022-07-18 15:12:09 [post_modified_gmt] => 2022-07-18 20:12:09 [post_content_filtered] => [post_parent] => 0 [guid] => https://carsonhub.wpengine.com/?post_type=market-commentary&p=65073 [menu_order] => 0 [post_type] => market-commentary [post_mime_type] => [comment_count] => 0 [filter] => raw ) ) [post_count] => 5 [current_post] => -1 [in_the_loop] => [post] => WP_Post Object ( [ID] => 65475 [post_author] => 90034 [post_date] => 2022-08-15 09:41:24 [post_date_gmt] => 2022-08-15 14:41:24 [post_content] => Inflation slowed significantly in July. Lower energy prices, including a 7.7% decline in gasoline prices, helped the Consumer Price Index stay flat. Food and shelter costs helped offset the decline in energy prices. The core inflation rate fell to 0.3%, suggesting inflationary pressures are present but moderating from previous months. Estimates for both data points were 0.2% higher than the actual data. The annual inflation rate remains elevated at 8.5%. Producer prices reflected a similar trend as the Producer Price Index fell 0.5% last month. Key Points for the Week
  • The Consumer Price Index (CPI) was flat last month, and core inflation increased 0.3%. Both numbers were 0.2% lower than expected.
  • Expectations for future interest rate hikes fell in response to the CPI report after the previous week’s strong jobs report prompted them to rise.
  • Market breadth is improving; 80% of the S&P 500 is above its 50-day moving average.
Expectations for future rate hikes fell after the inflation data. The expected rate increase at the September Fed meeting dipped from 0.75% to 0.50%. Market expectations have been volatile. The strong jobs report earlier this month raised expectations for faster rate hikes, while the weak inflation report reversed them. Stocks responded positively to the news. Markets added to recent gains. The S&P 500 soared 3.3% last week. The S&P 500 is now down 9.9% from its record high. The MSCI ACWI of global stocks climbed 2.9%. The Bloomberg Aggregate Bond Index added 0.2%. This week will be relatively quiet for key economic releases. Retail sales will be released in the U.S. and China. The reports will provide additional information on how consumers are acting in the world’s two largest economies. Figure 1 A Respite from Rising Prices “The Consumer Price Index for all Urban Consumers was unchanged in July on a seasonally adjusted basis after rising 1.3 percent in June.” That was the surprising first sentence of the Bureau of Labor Statistics’ (BLS) Consumer Price Index report for July. In other words, the rate of price changes, i.e., inflation, was flat last month. July’s report showed the lowest monthly increase since May 2020 and fell short of expectations for a 0.2% increase. It was a welcome respite from the rapid increase in inflation that has gone on for more than a year. As the BLS noted in the report, prices have increased 8.5% over the last 12 months. The big driver for inflation running at a pace of 8.5% over the past year has been rising energy prices. But those fell 4.6% in July and were mostly responsible for headline inflation coming in flat. Gasoline prices, which are closely watched by the public, fell 7.7%. Food prices continued to increase, rising 1% in July and offsetting some of the decline in energy prices. The real surprise was below the headline number. Core prices (for items excluding food and energy) were expected to rise 0.5% in July, but they came in at 0.3%. This is the smallest monthly gain in core prices in 10 months. The details were very positive, with core inflation easing across a broad range of categories. Prices for used vehicles fell in July, as did prices for several other pandemic-impacted services, such as airline fares, hotels, and car and truck rentals, thus imposing a deflationary force for the first time in almost a year. Price changes in other categories, such as medical care, internet services and child care, also slowed or reversed. One major concern was prices for shelter (rentals and owner-occupied) continued to rise at a pace well above pre-pandemic levels. It eased a bit in July but nowhere near enough to pull inflation back toward the Fed’s 2% target anytime soon. Even if core inflation runs at a monthly pace of 0.3% over the next 12 months, yearly inflation would add up to 3.8%. That would be higher than at any point in the last 15 years, prior to this year. Combine this with the strong wage growth from last week’s payroll report, and it seems likely the Fed will continue its urgent pace of rate hikes, including a 0.75% increase in the federal funds rate at its September meeting. Markets clearly do not agree with this assessment and are currently pricing in a 0.50% increase next month. This is a reversal from expectations for a 0.75% increase that was priced in immediately after a surprisingly strong employment report. But we’re likely to bounce back and forth over the next few weeks. The Fed is no longer giving any guidance for its upcoming moves; instead saying it will be “data dependent.” This report supports that stance as the rapid rate hikes and gradual balance sheet reduction seem to be having some effect on inflation. A lot of data will be released between now and the Fed’s September meeting, including PCE price index data for July (Fed’s preferred inflation indicator) as well as employment and CPI inflation data for August. All these reports could result in higher volatility as investors scour them for clues on the committee’s next steps and whether July’s data was a brief respite or a new trend. - This newsletter was written and produced by CWM, LLC. Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. The views stated in this letter are not necessarily the opinion of any other named entity and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results. S&P 500 INDEX The Standard & Poor’s 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. MSCI ACWI INDEX The MSCI ACWI captures large- and mid-cap representation across 23 developed markets (DM) and 23 emerging markets (EM) countries*. With 2,480 constituents, the index covers approximately 85% of the global investable equity opportunity set. BLOOMBERG  U.S. AGGREGATE BOND The Bloomberg US Agg Total Return Value Unhedged, also known as “Bloomberg U.S. Aggregate Bond Index” formerly known as the “Barclays Capital U.S. Aggregate Bond Index”, and prior to that, “Lehman Aggregate Bond Index,” is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate pass-throughs), ABS and CMBS (agency and non-agency). Bureau of Labor Statistics. 08/10/22 https://www.bls.gov/news.release/cpi.nr0.htm Bureau of Labor Statistics. 08/11/22. https://www.bls.gov/news.release/ppi.nr0.htm CME Group. 08/14/22. https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html CNBC.com. Jeff Cox. 08/11/22. https://www.cnbc.com/2022/08/10/consumer-prices-rose-8point5percent-in-july-less-than-expected-as-inflation-pressures-ease-a-bit.html Compliance Case #
01459131 [post_title] => Market Commentary: Inflation Finally Falls Flat, Stocks Respond Positively [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => market-commentary-inflation-finally-falls-flat-stocks-respond-positively [to_ping] => [pinged] => [post_modified] => 2022-08-17 08:31:15 [post_modified_gmt] => 2022-08-17 13:31:15 [post_content_filtered] => [post_parent] => 0 [guid] => https://carsonhub.wpengine.com/?post_type=market-commentary&p=65154 [menu_order] => 0 [post_type] => market-commentary [post_mime_type] => [comment_count] => 0 [filter] => raw ) [comment_count] => 0 [current_comment] => -1 [found_posts] => 120 [max_num_pages] => 24 [max_num_comment_pages] => 0 [is_single] => [is_preview] => [is_page] => [is_archive] => [is_date] => [is_year] => [is_month] => [is_day] => [is_time] => [is_author] => [is_category] => [is_tag] => [is_tax] => [is_search] => [is_feed] => [is_comment_feed] => [is_trackback] => [is_home] => 1 [is_privacy_policy] => [is_404] => [is_embed] => [is_paged] => [is_admin] => [is_attachment] => [is_singular] => [is_robots] => [is_favicon] => [is_posts_page] => [is_post_type_archive] => [query_vars_hash:WP_Query:private] => a903a142677fece24840fa13db0e14fd [query_vars_changed:WP_Query:private] => [thumbnails_cached] => [stopwords:WP_Query:private] => [compat_fields:WP_Query:private] => Array ( [0] => query_vars_hash [1] => query_vars_changed ) [compat_methods:WP_Query:private] => Array ( [0] => init_query_flags [1] => parse_tax_query ) [tribe_is_event] => [tribe_is_multi_posttype] => [tribe_is_event_category] => [tribe_is_event_venue] => [tribe_is_event_organizer] => [tribe_is_event_query] => [tribe_is_past] => )

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                    [post_content] => Watch this webinar hosted by Carson’s Scott Kubie, Senior Investment Strategist, and Patrick Sittner, Portfolio Strategist, as they dive into the quarterly market outlook.
                    [post_title] => Q3 2022 Quarterly Market Outlook
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                    [post_content] => Carson Partners’ Scott Kubie shares key events we saw in the past quarter and how we think they’ll affect markets in the upcoming quarter. Contact us to speak with a financial advisor.

[post_title] => Quarterly Market Outlook Highlights: Q3 2022 [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => quarterly-market-outlook-highlights-q3-2022 [to_ping] => [pinged] => [post_modified] => 2022-07-15 14:37:07 [post_modified_gmt] => 2022-07-15 19:37:07 [post_content_filtered] => [post_parent] => 0 [guid] => https://carsonhub.wpengine.com/?post_type=videos&p=65071 [menu_order] => 0 [post_type] => videos [post_mime_type] => [comment_count] => 0 [filter] => raw ) [2] => WP_Post Object ( [ID] => 65327 [post_author] => 90034 [post_date] => 2022-07-11 09:00:14 [post_date_gmt] => 2022-07-11 14:00:14 [post_content] => Watch this webinar hosted by Carson’s Ryan Yamada, Senior Wealth Planner, and Tom Fridrich, Senior Wealth Planner, as they dive into RMDs. [post_title] => Everything You Need to Know About RMDs [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => everything-you-need-to-know-about-rmds [to_ping] => [pinged] => [post_modified] => 2022-07-11 09:05:33 [post_modified_gmt] => 2022-07-11 14:05:33 [post_content_filtered] => [post_parent] => 0 [guid] => https://carsonhub.wpengine.com/?post_type=videos&p=65046 [menu_order] => 0 [post_type] => videos [post_mime_type] => [comment_count] => 0 [filter] => raw ) [3] => WP_Post Object ( [ID] => 65285 [post_author] => 90034 [post_date] => 2022-06-28 13:37:48 [post_date_gmt] => 2022-06-28 18:37:48 [post_content] => Watch this webinar hosted by Carson’s Ryan Yamada, Senior Wealth Planner, and Tom Fridrich, Senior Wealth Planner, as they dive into estate planning strategies to minimize taxes. [post_title] => Estate Planning Strategies to Minimize Taxes [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => leveraging-life-insurance-as-a-financial-planning-tool-2 [to_ping] => [pinged] => [post_modified] => 2022-06-28 13:48:21 [post_modified_gmt] => 2022-06-28 18:48:21 [post_content_filtered] => [post_parent] => 0 [guid] => https://carsonhub.wpengine.com/?post_type=videos&p=65016 [menu_order] => 0 [post_type] => videos [post_mime_type] => [comment_count] => 0 [filter] => raw ) [4] => WP_Post Object ( [ID] => 65214 [post_author] => 90034 [post_date] => 2022-06-10 08:20:02 [post_date_gmt] => 2022-06-10 13:20:02 [post_content] =>
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Videos

Videos

Q3 2022 Quarterly Market Outlook

Watch this webinar hosted by Carson’s Scott Kubie, Senior Investment Strategist, and Patrick Sittner, Portfolio Strategist, as they dive into the quarterly market outlook.
Continue Reading!
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                    [post_content] => By Erin Wood, Senior Vice President, Financial Planning and Advanced Solutions

Just a few years ago, Rose retired with a decent-sized 401(k). With some careful budgeting and a part-time job, her retirement finances were on track. Rose was looking forward to traveling, reigniting her passion for photography and spending time with her son and her grandkids.

The pandemic changed everything. Her son contracted COVID-19 in the early days of the pandemic. His health deteriorated quickly and he died at only 35 years old. He didn’t have life insurance. A gig worker without a 401(k), he had very minimal retirement savings.

Rose’s grandchildren, ages 2 and 6, joined the more than 140,000 U.S. children under the age of 18 who lost their primary or secondary caregiver due to the pandemic from April 2020 through June 2021. That’s approximately one out of every 450 children under age 18 in the United States.

Rose’s ex-daughter-in-law battles drug addiction and had lost custody of the kids during the divorce, so Rose became the children’s primary caregiver. She quickly discovered that caring for young children as an older adult is more physically challenging than when she raised her son, so she made the difficult decision to leave her part-time job to have the energy to care for her active grandchildren. She wants to do everything for these kids who have lost so much — but it puts her financial security at risk.

Sadly, she is far from alone.

Read the full article
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                    [post_content] => By: Erin Wood, CFP®, CRPC®, FBS®, Senior Vice President, Financial Planning, Carson Group

 

Laura and Caroline are in their late 50s. Friends since meeting at a playgroup for their toddlers, both were in long-term, seemingly happy marriages. Laura married her high school sweetheart right after they graduated from college and worked as an RN while her husband attended medical school. When their first child was born, Laura decided to become a stay-at-home parent. She just celebrated sending her last child off to college and was looking forward to enjoying an empty nest with her husband.

Already established in her career as an accountant for a large insurance firm, Caroline married a bit later, at 33. Today, she’s a financial controller for the same firm. Her spouse owns his own landscaping business. Caroline is the high-wage earner in the family.

Unfortunately, both women are now surprised to be facing a “gray” divorce: a divorce involving couples in their 50s or older. Each will need to make some tough choices as they deal with the emotional devastation of unraveling a long-term marriage. Although my focus as a financial planner is to help my clients find their financial footing during and after divorce, I also encourage clients to build a strong network of family and friends as well as a therapist or clergy person to offer critical emotional support during this time.

Read full article on Kiplinger.com

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Roth conversions can be a powerful tax and retirement planning technique. The idea behind most Roth conversions is to take money from an IRA and convert it to a Roth IRA. Essentially, you’re paying taxes today instead of paying taxes in the future.

The Tax Cut and Jobs Act lowered taxes for many Americans and with the SECURE Act Roth IRAs became even more powerful as an estate planning vehicle to minimize taxes, so it’s a convenient time to take advantage of Roth conversions. However, Roth conversions can come with some issues. Before you engage in one, be aware of these common problems as it can be hard to undo the transaction.

Conversions After 72

IRAs and Roth IRAs are both retirement accounts. It’s easy to assume Roth Conversions are best suited for retirement, too. However, waiting too long to do conversions can actually make the entire process more challenging. If you own an IRA, it’s subject to required minimum distribution rules once you turn 72, as long as you had not already reached age 70.5 by the end of 2019. The government wants you to start withdrawing money from your IRA each year and pay taxes on the tax-deferred money. However, Roth IRAs aren’t subject to RMDs at age 72. If you don’t need the money from your RMD to support your retirement spending, you might think, “I should convert this to a Roth IRA so it can stay in a tax-deferred account longer.” Unfortunately, that won’t work. You can’t roll over or convert RMDs for a given year. So, if you owe a RMD in 2020, you need to take it and you cannot convert it to a Roth IRA. Despite the fact you can’t convert an RMD, it doesn’t mean you can’t do Roth conversions after age 72. However, you need to make sure you get your RMD out before you do a conversion. Your first distributions from an IRA after 72 will be treated as RMD money first. This means, if you want to convert $10,000 from your IRA, but you also owe an $8,000 RMD for the year, you need to take the full $8,000 out before you do a conversion. Full article on Forbes   [post_title] => 3 Roth Conversion Traps To Avoid After The SECURE Act [post_excerpt] => Roth conversions can be a powerful tax and retirement planning technique. The idea behind most Roth conversions is to take money from an IRA and convert it to a Roth IRA. Essentially, you’re paying taxes today instead of paying taxes in the future. [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => 3-roth-conversion-traps-to-avoid [to_ping] => [pinged] => [post_modified] => 2020-02-28 16:01:10 [post_modified_gmt] => 2020-02-28 22:01:10 [post_content_filtered] => [post_parent] => 0 [guid] => https://divi-partner-template.carsonwealth.com/?post_type=news&p=53316 [menu_order] => 0 [post_type] => news [post_mime_type] => [comment_count] => 0 [filter] => raw ) [3] => WP_Post Object ( [ID] => 51325 [post_author] => 6008 [post_date] => 2019-12-06 10:26:33 [post_date_gmt] => 2019-12-06 16:26:33 [post_content] => By Jamie Hopkins People plan on having a good day, a good year, a good retirement and a good life. But why stop there? Why not plan for a good end of life, too? End of life or estate planning is about getting plans in place to manage risks at the end of your life and beyond. And while it might be uncomfortable to discuss or plan for the end, everyone knows that no one will live forever. Estate planning and end of life planning are about taking control of your situation. Death and long-term care later in life might be hard to fathom right now, but we can’t put off planning out of fear of the unknown or because it’s unpleasant. Sometimes it takes a significant event like a health scare to shake us from our procrastination. Don’t wait for life to happen to you, though. Full article on Kiplinger [post_title] => 10 Common Estate Planning Mistakes (and How to Avoid Them) [post_excerpt] => Estate planning and end of life planning are about taking control of your situation. Death and long-term care later in life might be hard to fathom right now, but we can’t put off planning out of fear of the unknown or because it’s unpleasant. Don’t wait for life to happen to you, though. [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => 10-common-estate-planning-mistakes-and-how-to-avoid-them [to_ping] => [pinged] => [post_modified] => 2020-02-28 16:02:24 [post_modified_gmt] => 2020-02-28 22:02:24 [post_content_filtered] => [post_parent] => 0 [guid] => https://divi-partner-template.carsonwealth.com/?post_type=news&p=51325 [menu_order] => 0 [post_type] => news [post_mime_type] => [comment_count] => 0 [filter] => raw ) [4] => WP_Post Object ( [ID] => 63758 [post_author] => 273 [post_date] => 2019-11-11 16:27:38 [post_date_gmt] => 2019-11-11 21:27:38 [post_content] => By Jamie Hopkins

Everyone’s heard the stories of celebrities who died without a proper estate plan in place. It’s been a hot topic in the last few years with Prince and Aretha Franklin serving as unfortunate faces of the phenomenon. But it’s not just freewheeling entertainers. Abraham Lincoln – a lawyer by trade – didn’t have one either, which leads me to say something you’ve probably never heard anyone say: don’t be like Abraham Lincoln.

Most people want to plan for a good life and a good retirement, so why not plan for a good end of life, too? Let’s look at four ways you can refine your estate plan, protect your assets and create a level of control and certainty for your loved ones.

1. Review Beneficiary Designations

Many accounts can pass to heirs and loved ones without having to go through the sometimes costly and time-consuming process of probate. For instance, life insurance contracts, 401(k)s and IRAs can be transferred through beneficiary designations – meaning you determine who you want to inherit your accounts after you die by filing out a beneficiary form. You can often name successors or backup beneficiaries, and even split up accounts by dollar amount or percentages between beneficiaries with these forms. Full article on Forbes [post_title] => 4 Ways To Improve Your Estate Plan [post_excerpt] => Most people want to plan for a good life and a good retirement, so why not plan for a good end of life, too? Let’s look at four ways you can refine your estate plan, protect your assets and create a level of control and certainty for your loved ones. [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => 4-ways-to-improve-your-estate-plan [to_ping] => [pinged] => [post_modified] => 2020-02-28 17:02:59 [post_modified_gmt] => 2020-02-28 22:02:59 [post_content_filtered] => [post_parent] => 0 [guid] => https://www.gertsema.net/insights/news/4-ways-to-improve-your-estate-plan/ [menu_order] => 0 [post_type] => news [post_mime_type] => [comment_count] => 0 [filter] => raw ) ) [post_count] => 5 [current_post] => -1 [in_the_loop] => [post] => WP_Post Object ( [ID] => 65100 [post_author] => 90034 [post_date] => 2022-05-26 08:18:44 [post_date_gmt] => 2022-05-26 13:18:44 [post_content] => By Erin Wood, Senior Vice President, Financial Planning and Advanced Solutions Just a few years ago, Rose retired with a decent-sized 401(k). With some careful budgeting and a part-time job, her retirement finances were on track. Rose was looking forward to traveling, reigniting her passion for photography and spending time with her son and her grandkids. The pandemic changed everything. Her son contracted COVID-19 in the early days of the pandemic. His health deteriorated quickly and he died at only 35 years old. He didn’t have life insurance. A gig worker without a 401(k), he had very minimal retirement savings. Rose’s grandchildren, ages 2 and 6, joined the more than 140,000 U.S. children under the age of 18 who lost their primary or secondary caregiver due to the pandemic from April 2020 through June 2021. That’s approximately one out of every 450 children under age 18 in the United States. Rose’s ex-daughter-in-law battles drug addiction and had lost custody of the kids during the divorce, so Rose became the children’s primary caregiver. She quickly discovered that caring for young children as an older adult is more physically challenging than when she raised her son, so she made the difficult decision to leave her part-time job to have the energy to care for her active grandchildren. She wants to do everything for these kids who have lost so much — but it puts her financial security at risk. Sadly, she is far from alone. Read the full article [post_title] => COVID’s Financial Toll Isn’t What You Think [post_excerpt] => [post_status] => publish [comment_status] => closed [ping_status] => closed [post_password] => [post_name] => covids-financial-toll-isnt-what-you-think [to_ping] => [pinged] => [post_modified] => 2022-05-26 08:24:48 [post_modified_gmt] => 2022-05-26 13:24:48 [post_content_filtered] => [post_parent] => 0 [guid] => https://carsonhub.wpengine.com/?post_type=news&p=64940 [menu_order] => 0 [post_type] => news [post_mime_type] => [comment_count] => 0 [filter] => raw ) [comment_count] => 0 [current_comment] => -1 [found_posts] => 9 [max_num_pages] => 2 [max_num_comment_pages] => 0 [is_single] => [is_preview] => [is_page] => [is_archive] => [is_date] => [is_year] => [is_month] => [is_day] => [is_time] => [is_author] => [is_category] => [is_tag] => [is_tax] => [is_search] => [is_feed] => [is_comment_feed] => [is_trackback] => [is_home] => 1 [is_privacy_policy] => [is_404] => [is_embed] => [is_paged] => [is_admin] => [is_attachment] => [is_singular] => [is_robots] => [is_favicon] => [is_posts_page] => [is_post_type_archive] => [query_vars_hash:WP_Query:private] => 8bbea74eca9b0e937ac286f0d22d32a8 [query_vars_changed:WP_Query:private] => [thumbnails_cached] => [stopwords:WP_Query:private] => [compat_fields:WP_Query:private] => Array ( [0] => query_vars_hash [1] => query_vars_changed ) [compat_methods:WP_Query:private] => Array ( [0] => init_query_flags [1] => parse_tax_query ) [tribe_is_event] => [tribe_is_multi_posttype] => [tribe_is_event_category] => [tribe_is_event_venue] => [tribe_is_event_organizer] => [tribe_is_event_query] => [tribe_is_past] => )

In the News

In the News

COVID’s Financial Toll Isn’t What You Think

By Erin Wood, Senior Vice President, Financial Planning and Advanced Solutions Just a few years ago, Rose retired with a decent-sized 401(k). With some careful budgeting and a part-time job, her retirement finances were on track. Rose was looking forward to traveling, reigniting her passion …
Continue Reading!