September 30, 2018

By: John Zeltmann

As I write this article, we’re approximately three weeks out from the arrival of our third child.  The due date is mid-October, and we don't yet know whether we're having a boy or girl.  We're obviously very excited to find out and to also meet this little one who's coming into our lives. 

Of course, being a financial planner, I can't help but start thinking about a topic for my family that we frequently discuss with our clients: 529 plans. As we’re asked a lot of questions about 529 plans from both parents and grandparents alike, we thought it might be useful to share some of them.

September 30, 2018

AARP Bulletin¹ points out nine anticipated changes to the Medicare program for 2019. If you’re an enrollee, or about to become one, pay attention, because a lack of information may cost you a lot of money. 

September 30, 2018

The Wall Street Journal¹ article states the obvious: There are no easy answers or decisions when it comes time to try to stop an older driver from driving. (I can recall one family member stating that if he lost his license, he might as well die. He was approaching 90 at the time.)

September 30, 2018

MONEY Magazine¹ points out there are a lot of reasons to volunteer, especially in retirement when you may have more time. They note that “many groups also offer gigs with sweet benefits, from intellectual stimulation to outsider access, freebies and other perks.

Source: Direxion Funds

September 30, 2018

• Foreigners have increased their holdings of US Treasury securities from $1 trillion in 2000 to more than $6.2 trillion in 2018.

• In June 2018, the Congressional Budget Office projected that by the year 2048 (i.e., 30 years from now) the US government will spend as much money servicing its national debt as it will spend that year on the nation’s Social Security program. Today, our nation’s net interest cost is just 33% of our Social Security outlays.

• Borrowing $100,000 on a 30-year fixed rate mortgage at 4.53% (today’s national average) requires a monthly “principal and interest” payment of $508.47. Borrowing $100,000 on a 30-year fixed rate mortgage at 5.53% requires a monthly “principal and interest” payment of $569.67.

August 15, 2018

I can’t say it takes up a lot of our day, but John and I do spend a little time answering a similar question using a variety of the same answers: “NO”, “I don’t think so”, “Have you really thought about this?”, and “Is this is the same brother-in-law that you told me last year was a loser and good-for-nothing?”

What’s the question you ask? “I’d like to invest some money in (fill in the blank on the latest investment opportunity).”

August 15, 2018

By: John Zeltmann

When speaking with clients about relocating in retirement, one question prevails: Which state is the best state to retire to from a tax perspective? As is the case with most questions in the world of financial planning, the answer is...it depends.  On you.

August 15, 2018

A few years ago, Carl Richards, author of “The Behavior Gap: Simple Ways to Stop Doing Dumb Things with Money,” wrote a column¹ in which he advocated that financial advisors should play small ball with money they manage. It’s directly related to this issue’s Stan’s World, so we took it out of the archives, dusted it off, and will use it to explain further why our asset management process so closely resembles small ball.

August 15, 2018

We heard from a financial planner colleague in Maryland who recently shared an absolutely incredible cybersecurity scam experienced by one of his clients. The series of events is so frightening that we’re compelled to strongly urge you to take steps to better protect your investment and other accounts. Cybercriminals are using technology to degrees never before seen.

Source: Direxion Funds

August 15, 2018

• The yield on the 10-year Treasury note closed at 1.36% on 7/08/16, its lowest closing yield ever. (10-year notes have been traded in the USA since 1790, i.e., 228 years of trading.) The yield on the 10-year note closed last Friday (8/17/18) at 2.85%.

• Proposed US tariffs on car imports will add an estimated $5,800 to the price of an imported foreign vehicle.

• 45 US states collect statewide sales taxes, i.e., 5 states (Alaska, Delaware, Montana, New Hampshire and Oregon) have no state sales tax. California has the highest state sales tax (7.25%) in the nation.