CREATING CLARITY & CONFIDENCE IN A COMPLEX WORLD
Retirement plans established under Section 403(b) of the Internal Revenue Code, commonly referred toas 403(b) plans or “tax-sheltered annuities,” have become a popular type of employer-sponsored retirement plan. What is a 403(b) plan? A 403(b) plan is a retirement savings…
The Question of the Week: What could we expect in 2021? Each year naturally brings more surprises than certainties, so outlooks and predictions of any kind quickly become futile. (We’ve already experienced a dramatic and unusual first week of January.)…
It’s nice to own stocks, bonds, and other investments. Nice, that is, until it’s time to fill out your federal income tax return. At that point, you may be left scratching your head. Just how do you report your investments…
The prior weekend, Congress had agreed on a $900+ bil. Covid relief package, approved by both chambers a few days later, and finally signed by the President last night. This had been in the works for months, with a few…
The Federal Reserve made no policy changes at today’s meeting, as expected, keeping the fed funds rate at the zero bound of 0.00-0.25%. There were no dissents from committee members. The dollar swap lines and repurchase facility were also extended.…
Incapacity means that you are either mentally or physically unable to take care of yourself or your day-to-day affairs. Incapacity can result from serious physical injury, mental or physical illness,advancing age, and alcohol or drug abuse. Incapacity can strike anyone…
When developing your estate plan, you can do well by doing good. Leaving money to charity rewards you in many ways. It gives you a sense of personal satisfaction, and it can save you money in estate taxes. A few…
Many IRA and retirement plan limits are indexed for inflation each year. While some of the limits remain unchanged for 2021, other key numbers have increased. IRA contribution limits The maximum amount you can contribute to a traditional IRA or…
It’s a new high, but not dissimilar to celebrating say, 29,999 as a new peak, although the odd number didn’t receive the same level of media attention. These round market levels, whether it be the Dow Jones Industrial Average, Nasdaq,…
Whether or not an asset class is in a bubble is difficult to answer in real-time, since sentiment can change course as quickly as a few weeks, or take years. In hindsight, these things are always more obvious. The question…
Myth: Social Security will provide most of the income you need in retirement. Fact: It’s likely that Social Security will provide a smaller portion of retirement income than you expect. There’s no doubt about it — Social Security is an…
When evaluating whether to initiate a rollover always be sure to (1) ask about possible surrender charges that may be imposed by your employer plan, or new surrender charges that your IRA may impose, (2) compare investment fees and expenses charged…
It’s difficult to imagine functioning in today’s world without credit. Whether buying a car or purchasing a home, credit has become an integral part of our everyday lives. Having easy access to credit goes hand in hand with having a…
Question of the Week: “With the election being over, what comes next?” The election results may have surprised some forecasters (and certainly pollsters), as the predicted ‘blue wave’ of Democrats capturing both the Presidency and Senate fell short. Democrats…
Beginning on November 1, 2020, individuals (including families) may apply for new health insurance, switch to a different healthcare plan, or re-enroll in their current plan through a Health Insurance Marketplace under the Affordable Care Act (ACA). The open enrollment…
In March 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which provided a six-month automatic payment suspension on federal student loans through September 30, 2020. In August, the president signed a memorandum to extend federal student…
On August 8, 2020, the president issued an executive order to allow the deferral of certain payroll taxes during the last four months of 2020, and the IRS recently provided related guidance. This has implications for both employers and employees.…
Happy Fall! The leaves are beginning to turn, the birds are headed south, and the evenings are getting a bit cooler. This fall is especially welcome with the rains bringing some control to the fires that have done so much…
In March 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which included several provisions designed to help retirement savers cope with the financial fallout from the pandemic. Among these temporary measures were special rules for required…
On August 18, 2020, the S&P 500 set a record high for the first time since COVID-19 ushered in a bear market on February 19. The cycle from peak to peak was just 126 trading days, the fastest recovery in…
Many women manage their own money. This includes women who have always been doing so and women who are relatively new to the world of investing, for whatever reason. Regardless of your level of investing experience, there are certain investor…
What would be the impact of a Trump Presidential reelection for a second term? How important is the President on financial markets anyway? In many ways, policies to expect would likely be similar to what’s in place today, and largely…
As women, we tend to spend much of our time caring for others. Planning ahead for life’s inevitable rough spots is one of the best ways we can care for ourselves and the ones we love. Women’s Worth is a…
The Federal Reserve Open Market Committee took no action at their mid-September policy meeting, as expected, leaving the fed funds rate at the zero bound of 0.00-0.25%. Lately, the action seems to be happening between meetings. The Fed announced a…
Remembering what it’s like to ‘get out on the open road’ and out of the house, Michelle took a sunny road trip to see her cousin in Utah at the end of July. She appreciated traveling through that beautiful and…
Client Questions: Can I Deduct Premiums Paid for Long-term Care Insurance (LTCI)? It depends on several factors. Your LTCI contract must be a qualified one, you must itemize deductions on Schedule A of IRS Form 1040, and the total of…
The impact of a potential new President on stock market returns is always a key question in the weeks prior to a general election. It’s important to keep in mind that, despite frequent worries around this time of year, and…
Even in normal times, it can be challenging for families to cover college expenses without borrowing money and/or risking their own retirement security. For the 2019-2020cacademic year, the cost of in-state tuition, fees, room, and board at a four-year public…
In this new world, we’re doing our best to meet our clients where they’re at. For some, that means utilizing technology and the virtual meeting space. For others, that means gathering in person. To err on the side of caution,…
Some employers offer 401(k) plan participants the opportunity to make Roth 401(k) contributions. If you have access to this option, Roth contributions could play an important role in helping enhance your retirement income. What is a Roth 401(k)? A Roth…
On June 8, 2020, the National Bureau of Economic Research (NBER), which has official responsibility for determining U.S. business cycles, announced that February 2020 marked the end of an expansion that began in 2009 and the beginning of a recession.1 This was no great surprise considering widespread…
The amended rules under the Coronavirus Aid, Relief, and Economic Security (CARES) Act provide flexibility for health-care spending related to the ongoing COVID-19 pandemic. 1 High-deductible health plans cover telehealth services Under the CARES Act, a high-deductible health plan (HDHP)…
What is it? If you’re the beneficiary of a large inheritance, you may find yourself suddenly wealthy. Even if you expected the inheritance, you may be surprised by the size of the bequest or the diverse assets you’ve inherited. You’ll…
The Coronavirus Aid, Relief, and Economic Security (CARES) Act passed in March 2020 ushered in several measures designed to help IRA and retirement plan account holders cope with the financial fallout from the virus. The rules were a welcome relief…
Most Americans will eventually receive Social Security and Medicare benefits. Each year, the Trustees of the Social Security and Medicare Trust Funds release lengthy reports to Congress that assess the health of these important programs. The newest reports, released on…
We are happy to announce our newest team member, Eric Tanikawa. As a client service specialist, Eric will be working in-depth on the administrative details of client accounts. This includes processing withdrawal requests, preparing paperwork for client meetings, and proactively…
The Federal Reserve made no key policy changes in their July meeting, as expected, keeping the fed funds rate at the lower bound of 0.00-0.25%. Earlier this week, the pandemic-based emergency liquidity/lending programs were extended until at least the end…
For the second year in a row, interest rates on federal student loans will decrease for the 2020-2021 academic year. This year’s decrease brings rates to record lows. The rates apply to new federal student loans made on or after…
As hundreds of companies race to develop vaccines and drug therapies that could help end the COVID-19 pandemic, news reports on successful or failed trials affect individual stock prices and can trigger swings in the broader market.1 Understandably, this highly…
If anyone tells you that they aren’t confused right now, they are either intellectually dishonest or just plain lying. The events of the last six months have most of the rest of us scratching our heads and reflecting on the…
Are the financial markets (‘Wall Street’) and the real economy (‘Main Street’) disconnected? Although they may appear to be disconnected on the surface, and near-term outcomes are impossible to predict, they’re likely no more disconnected than usual. One of…
In May 2020, the IRS sent Economic Impact Payment (EIP) prepaid VISA debit cards to individuals who qualified for a stimulus payment under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and didn’t receive a payment via direct…
During this uncertain time, you or a member of your family may be facing unemployment. Coping with it means breaking away from the past and facing the future. It means dealing with the emotional, financial, and professional challenges unemployment can…
Michelle is inspired by the resilience of our client families. Hearing how you are staying connected with family and the creative ways in which you are staying healthy and strong is wonderful. She has taken your lead and spent some…
When it comes to your finances, “go with your gut” might not be the wisest adage to follow. In fact, it may work against you, particularly in periods of market turbulence. Before jumping to conclusions about your finances, consider what…
On April 20, 2020, the price of a futures contract for West Texas Intermediate crude — the benchmark for U.S. oil prices — fell below zero for the first time in history, dropping more than 306% in trading on the…
Again, as expected, the FOMC kept the fed funds interest rate steady at a lower-band target of 0.00-0.25%. Without dipping into the unchartered and controversial waters of negative rates, this is as far as they can go. The formal…
The Retirement Confidence Survey conducted each year by the Employee Benefit Research Institute (EBRI) took a slightly different tack in 2020. After completing its initial outreach in January — the 30th in its annual series — EBRI decided to conduct…
Fraudsters and scam artists are always looking for new ways to prey on consumers. Now they are using the same tactics to take advantage of consumers’ heightened financial and health concerns over the coronavirus pandemic. Federal, state, and local law…
This is never simple to evaluate, as current prices for rates and risk assets have a behavioral component, and appropriate price levels may only be obvious in hindsight. In past cycles, equity bear markets and subsequent recoveries have unfolded over…
Anyone can look good during a bull market. Smart investors are prepared to weather the inevitable rough patches, and even the best aren’t successful all the time. When the market goes off the tracks, knowing why you originally made a…
Throughout March 2020, as it became increasingly evident that the economic impact from the COVID-19 pandemic would be both profound and prolonged, Congress passed several pieces of legislation with provisions to help small businesses shore up their coffers and keep…
Few terms in personal finance are as important, or used as frequently, as “risk.” Nevertheless, few terms are as imprecisely defined. Generally, when financial advisors or the media talk about investment risk, their focus is on the historical price volatility…
On March 20, 2020, the Department of Education announced terms for student loan relief for tens of millions of borrowers in response to COVID-19. Here are answers to some questions about the new rules. For more information and to follow…
In late March, Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act. This $2 trillion dollar package aims to address the financial pressures faced by individuals, businesses, and state / local governments due to the pandemic. You have…
Due to the coronavirus pandemic, the due date for filing federal income tax returns and making tax payments has been postponed by the IRS from Wednesday, April 15, 2020, to Wednesday, July 15, 2020. No interest, penalties, or additions to…
We hope this note finds you staying well and taking care of your physical and mental health during this time. A couple of weeks ago, we were approached by the board of Capital Manor Retirement Community and asked to create…
Dear Clients, To help understand our current situation, it is sometimes helpful to look to history as a guide. Each financial downturn is different, but they often share common elements. 1987 In 1987, stocks dropped -22.6% in one day, Black…
The Setting Every Community Up for retirement Enhancement (SECURE) Act was enacted in December 2019 as part of a larger federal spending package. This long-awaited legislation expands savings opportunities for workers and includes new requirements and incentives for employers that…
Dear clients, During this time of uncertainty, we are going to continue with this trend of reaching out to you regularly to check-in and share with you our two cents on the ever-changing environment around us. Our goal is…
Quarter 1 Team Update The first few months of the year have flown by for Michelle! She has been busy with lots of family activities, celebrating her birthday and gearing up to celebrate her cousin’s long-anticipated Vegas wedding and…
Dear Clients, Monday brought another volatile day of market activity and we know that – even if we haven’t heard from you – you may be experiencing some anxiety. While you’re probably receiving a message from every email list…
Why has the Fed reacted so dramatically? Why has the market reacted the way it has to Fed actions? In short, it’s about messaging and credit markets. While lowering interest rates by a percent to zero at this stage may…
Getting married is exciting, but it brings many challenges. One such challenge that you and your spouse will have to face is how to merge your finances. Planning carefully and communicating clearly are important because the financial decisions that you…
Last Saturday, we gathered with over 450 people to celebrate. As Katherine recently wrote, the Salem Area Chamber of Commerce First Citizen’s Award Banquet is a night to celebrate the good in our community. We are proud of our own…
Negative sentiment concerning the coronavirus has been relentless, which has been spurred by media coverage and a variety of governmental actions to combat the contagion’s spread. Most recently, these have included the President’s temporary ban on incoming flights from Europe…
As if markets hadn’t produced enough volatility already in recent weeks, this morning’s initial drop of -7% triggered stock exchange circuit breakers—a computer system intended to temporarily stop trading activity, with the purpose of stopping a free fall in prices…
Even though the tax filing season is well underway, there’s still time to make a regular IRA contribution for 2019. You have until your tax return due date (not including extensions) to contribute up to $6,000 for 2019 ($7,000 if…
In late February, Brenna gathered with a dozen other CFP® professionals for a three-day training in financial life planning, courtesy of Money Quotient. Financial life planning is defined as a process of: – Helping people focus on the true…
Dear Clients, We’re reaching out during this time of market volatility to provide you with our two cents and some helpful information. What’s Happening? Understanding what’s caused the most recent downturn is pretty straight forward. As the…
Moving Forward Financially after the Loss of a Spouse The loss of a spouse can be a devastating, life-changing event. Due to longer life expectancies, women are more likely to face this situation. Becoming a widow at any age can…
New Cases in South Korea, Italy, and Iran Market Note | 2/24/2020 Financial markets have been especially hard-hit today, with reports of new coronavirus (COVID-19) cases appearing in South Korea, Italy, and Iran. The uncertainty over transmission and fears of…
On December 13, 2019, the United States and China announced a “phase one” in trade agreements just before new tariffs were scheduled to go into effect.1 Six days later, the House of Representatives passed the United States-Mexico-Canada Agreement (USMCA) in…
The Salem Area Chamber of Commerce has a long standing tradition. The First Citizen’s Banquet, now in its 70th year, honors community members who give of themselves to make Salem a better place to live, and inspire others to do…
Whether at home, work or on a cell phone, it’s a scenario many Americans have found themselves in: answering a phone call only to find out it’s from an unwanted robocall. In fact, the number of unwanted robocalls in this…
Why do so many people never obtain the financial independence that they desire? Often it’s because they just don’t take that first step — getting started – investment planning. Besides procrastination, other excuses people make are that investing is too…
What has been/will be the impact of the coronavirus on the global economy and markets? The spread of the new coronavirus has taken over the headlines and hijacked market sentiment in recent weeks. Thus far, through available medical data, it…
The Federal Open Market Committee (FOMC) completed their January meeting, with no stated changes in monetary policy, and no dissents. The target fed funds rate remains at 1.50-1.75%. The formal statement was little changed, noting low inflation and economic growth expanding…
Medicare premiums, deductibles, and coinsurance amounts change annually. Here’s a look at some of the costs that will apply in 2020 if you’re enrolled in Original Medicare Part A and Part B. Medicare Part B premiums According to the Centers…
Net farm income is forecast to grow almost 4.8% to $88 billion in 2019, but this broad measure of profits includes financial support from the federal government. Direct government payments (excluding crop insurance) to U.S. farmers are projected to hit…
You know how important it is to plan for your retirement, but where do you begin? One of your first steps should be to estimate how much income you’ll need to fund your retirement. That’s not as easy as it…
Happy New Year! What a year it was! Go ahead, pat yourself on the back, you certainly deserve it after sticking through the turmoil of last year’s markets. While 2018 ended on a dismal note, 2019 ended with a bang. …
Caring for your aging parents is something you hope you can handle when the time comes, but something you probably hope you never have to do. Caring for your aging parents means helping them plan for the future, and this…
Between the holiday bustle, yearend to do’s and political news, you would be forgiven for missing the SECURE Act, which was signed into law December 19th. This act, “Setting Every Community Up for Retirement Enhancement (SECURE)” carries with it a…
The term ‘outlook’ can be misleading, as most forecasts tend to be partially to very off-base in hindsight. So, this question is best answered as a summary of whatever is currently top of mind going into the New Year. Some…
With the holiday season upon us and the end of the year approaching, we pause to give thanks for our blessings and the people in our lives. It is also a time when charitable giving often comes to mind. The…
The income tax benefits offered by 529 plans make these plans attractive to parents (and others) who are saving for college or K-12 tuition. Qualified withdrawals from a 529 plan are tax-free at the federal level, and some states also…
IRA contribution limits The maximum amount you can contribute to a traditional IRA or a Roth IRA in 2020 is $6,000 (or 100% of your earned income, if less), unchanged from 2019. The maximum catch-up contribution for those age 50 or…
The Federal Reserve Open Market Committee decided to keep the fed funds target interest rate unchanged—at a level of 1.50-1.75%. This was widely anticipated as Fed committee members, through various speeches and other comments, have been hinting that they’re essentially…
Q4 Team Update Sarah recently celebrated her one-year milestone with our firm! She is excited to continue building relationships with our client families and team. Outside of the office, Sarah and Peter took a weekend trip to Montana to…
Each year, the College Board releases its annual Trends in College Pricing report that highlights current college costs and trends. While costs can vary significantly depending on the region and college, the College Board publishes average cost figures, which are based on a…
Which segments of the equity market face the most uncertainty prior to the 2020 election? This question is always a wildcard so far in advance, but it will likely depend on the ultimate Democratic front-runner. With the slippage of…
October 20 to 26, 2019, was National Retirement Security Week, a nationwide effort to raise awareness about the importance of saving for retirement. Established by Congress in 2006, National Retirement Security Week is designed to elevate public knowledge about retirement…
A health savings account (HSA) is a tax-advantaged account linked with a high-deductible health plan (HDHP). They work together to help you cover your current healthcare costs and also save for your future needs. By one estimate, a 65-year-old couple…
When you think of Social Security, you probably think of retirement. However, Social Security Survivor Benefits can also provide much-needed income to your family members when you die, making their financial lives easier. Your family members may be eligible to…
Beginning on November 1, 2019, individuals (including families) may apply for new health insurance, switch to a different health-care plan, or re-enroll in their current plan through a Health Insurance Marketplace under the Affordable Care Act (ACA). The open enrollment…
The Federal Reserve Open Market Committee decided to cut interest rates a third time, by another 0.25%, to a new range of 1.50-1.75%. As with the two prior cuts in recent months, this move was controversial. The economic community was…
In a perfect world, both halves of a couple share the same investment goals and agree on the best way to try to reach them. It doesn’t always work that way, though. Disagreements about money are often a source of…
It’s nice to own stocks, bonds, and other investments. Nice, that is, until it’s time to fill out your federal income tax return. At that point, you may be left scratching your head. Just how do you report your investments…
January brings about an opportunity to reset and reframe the year ahead. Join us for a free financial and economic update to get 2019 off to a great start. PROVIDING FINANCIAL WISDOM, LEADERSHIP AND PLANNING IN TUMULTUOUS TIMES When: January…
What is the Medicare Open Enrollment Period? The Medicare Open Enrollment Period is the time during which Medicare beneficiaries can make new choices and pick plans that work best for them. Each year, Medicare plan costs and coverage typically change.…
Fall is the time of year when most investors find their way back from their summertime pursuits, roll up their sleeves and get back to work. This year finds us all with a lot of information to digest and more…
We’re proud to co-present at this upcoming symposium in partnership with Willamette Valley Hospice. Join us for an informative morning session on the later years of life. Your choice of engaging sessions: • Legal Issues with Aging • Oregon’s Death…
When investing for retirement, you’re likely to hear a lot of well-meaning guidance from family, friends, and others offering advice — even the media. As you weigh the potential benefits of any commonly cited investment rules, consider that most are…
As women, we tend to spend much of our time caring for others. Planning ahead for life’s inevitable rough spots is one of the best ways we can care for ourselves and the ones we love. Women’s Worth is a…
Due to experiences in the past, especially in the 1970s, many investors have been conditioned to expect the worst when oil supplies are threatened. While trends in oil demand tend to be far more persistent, and are largely affected by…
As expected, the Federal Reserve Open Market Committee lowered the fed funds rate a second time by 0.25%, to a new range of 1.75-2.00%. There were a few dissents, strangely in opposite directions, with one member wanting a larger 0.50%…
We’ve all heard about the importance of having life insurance, but is it really necessary? Often, the answer is “yes,” but it depends on your specific situation. In general, you should consider life insurance protection if any of the following…
Our connection to our client families continues to humble us. This summer, we were welcomed into the homes of many of them. We celebrated graduations, toasted dream homes and shared in the loss of some dear friends. We continue to…
On August 14, 2019, the Dow Jones Industrial Avenue plunged 800 points, losing 3% of its value in its biggest drop of the year. The Nasdaq Composite also lost 3%, while the S&P 500 lost 2.9%.1 The slide started with…
Large-scale data breaches are in the news again, but that’s hardly surprising. Breaches have become more frequent — a byproduct of living in an increasingly digital world. During the first six months of 2019, the Identity Theft Resource Center (ITRC),…
Conflict in the Persian Gulf has spurred modest oil price volatility in recent weeks, but prices didn’t spike to high levels seen during some past conflicts. That’s partly because rising U.S. oil production has shaken up the global oil market…
Today, the U.S. equity markets experienced their worst day of the year, with the Dow, S&P and Nasdaq all falling roughly -3%. While such days are historically common and not necessarily noteworthy, the lack of volatility experienced over the past…
The IRS continues to encourage taxpayers to review the amount of tax they have withheld to avoid an unexpected tax surprise when they file their 2019 tax returns next year. Preliminary 2018 tax filing data seems to show the need…
It’s that time of year again – back to school sales, bus drivers practicing their routes, and staff getting classrooms ready for their new students. These are the early reminders that the first day of school is just around the…
The July FOMC meeting resulted in a 0.25% reduction in the federal funds rate, to a new range of 2.00-2.25%. The policy vote was far from unanimous, with eight members supporting the change, and the Fed presidents from Kansas City…
The federal minimum wage (FMW), currently $7.25 per hour, hasn’t increased since 2009—the longest stretch with no federal increases since 1938, when the minimum wage was created. Several presidential candidates as well as proposed House Bill H.R. 582, Raise the…
The Tax Cuts and Jobs Act of 2017 included a $10,000 ($5,000 if married filing separately) cap on the amount of state and local taxes that can be claimed as an itemized deduction on Schedule A of Form 1040. If…
With the costs of college on the rise, establishing a savings plan early is vital. A 529 plan is a tax-advantaged education savings vehicle and one of the most popular ways to save for college today. It can also be…
Happy Summer! The longest and warmest days of the year are here. The gardens all around town are beautiful, with riots of color against a backdrop of verdant green. In sitting down to write this, we thought about simply changing…
Portfolio Rebalancing Imagine you just bought a new car. You love how it looks and handles. You take it on long, beautiful drives together. When you take your car in to be serviced, you are asked if you want the…
On May 13, 2019, escalating trade tensions between the United States and China sparked a worldwide stock sell-off that wiped out more than $1 trillion in global equity values.1 The markets recovered over the next three days, but tensions between…
Spring is trying to spring here in Oregon, and for us, that meant several gatherings with our community friends, partners and client families. Between their Fine Art Auction, annual luncheon and Cinco de Micro Brewfest, we had fun supporting the…
The decision of whether or not to purchase insurance for future healthcare expenses is an important one. Our team of CERTIFIED FINANCIAL PLANNER™ professionals have helped many of our client families navigate this question. We weigh the impact that Long-Term…
Following their June meeting yesterday, the Federal Open Market Committee (FOMC) made no change to the 2.25-2.50% range for the fed funds rate. However, member appeared split on the outlook, with one member voting for a cut today, while others…
When choosing an investment, there are a wide range of figures and numbers you can consider before making a decision. Things can get more complicated when you consider that you, other investors and professionals will put varying levels of emphasis…
Whether you have $100 or $1,000,000, you want to see your investment grow. Ideally, you would like to see that money grow a lot without the investment risk. Unfortunately, the risk/return tradeoff concept in investing tells us that greater returns…
The 29th annual Retirement Confidence Survey (RCS), conducted by the Employee Benefit Research Institute (EBRI) in 2019, found that two-thirds of U.S. workers (67%) are confident in their ability to live comfortably throughout their retirement years (up from 64% in…
The popularity of investing in index funds has been gaining interest in recent years. Index mutual funds are not a new concept – they have been available for over four decades, and exchange-traded funds (“ETF”) for more than ten years.…
The Tax Cuts and Jobs Act (TCJA), which passed in December 2017, made fundamental changes to the U.S. tax code, and 2018 returns were the first time most taxpayers could see the practical impact of these changes. In an April…
It may not be as dramatic as laid out in several worst-case scenarios, but intensification of tensions doesn’t appear to be a positive. (On a historical basis generally, restricting trade typically doesn’t enhance prospects for either side, long-term.) While the…
Paying tax is an unavoidable reality of life. While tax dollars may fund important social programs, infrastructure, and services throughout society, that knowledge doesn’t always soothe the burn left behind by a big tax bill. Capital gains tax (tax that…
Most Americans will eventually receive Social Security and Medicare benefits. Each year, the Trustees of the Social Security and Medicare Trust Funds release lengthy reports to Congress that assess the health of these important programs. The newest reports, released on…
As predicted, yesterday’s FOMC meeting ended with no change in policy, with all members on board with keeping the fed funds rate within a range of 2.25-2.50%. The formal statement was very little changed, noting continued strength in the labor…
The IRS recently issued its annual list of tax scams. The list highlights various scams that taxpayers may encounter, many of which occur during tax filing season. Here are some of the scams that are highlighted on the list. Phishing…
One of the longest-standing debates in investing is over the relative merits of active portfolio management versus passive management. With an actively managed portfolio, a manager tries to beat the performance of a given benchmark index by using his or…
At its meeting on March 20, 2019, the Federal Open Market Committee (FOMC) maintained the benchmark federal funds rate at the target range of 2.25% to 2.50% that was set in December 2018. This in itself was not surprising. But…
This time of year finds many of our client families vacationing somewhere near the equator. When they return home, they sometimes bring back more than just a tan, returning as an owner of a timeshare and unsure of whether or…
It’s nice to own stocks, bonds, and other investments. Nice, that is, until it’s time to fill out your federal income tax return. At that point, you may be left scratching your head. Just how do you report your investments…
What a difference a few months can bring. The fourth quarter of last year was sure a tough one, with uncertainty and general angst pushing prices down significantly. The first quarter of 2019 was quite the opposite. Such is the…
The federal income tax filing deadline for most individuals is Monday, April 15, 2019. Residents of Maine and Massachusetts have until Wednesday, April 17, to file their 2018 tax return because April 15 is Patriots’ Day and April 16 is…
Time is flying and we’ve buttoned up the first quarter of 2019. As is our custom, here’s a short update on what our team has been up to. Michelle has been delightedly occupied with getting a jump on the New…
When we consider our own mortality, most of us have a few wishes in common. We want to be in our own space, with people we love and avoid suffering. These requests feel obvious, almost like basic human rights. But,…
In the life of most working individuals, there’s a turning point, where you move from living paycheck to paycheck to finding a bit of extra money left in your account at the end of each month. What you do with…
The March FOMC meeting ended as many predicted—with no change to the fed funds rate, which is currently set at 2.25-2.50%. Regardless, the meeting was closely watched in terms of how the Fed planned to communicate a stance on policy…
Market watchers and strategists are big on anniversaries, so have been acknowledging that about 10 years ago, March 9, 2009, marked the end of the Great Recession bear market and beginning of the bull market run of the past decade.…
Since 1950, the Salem Chamber has honored those who exemplify servant leadership. These are individuals who, through their business, volunteering, and philanthropic efforts, improve the lives of those in the community by serving first. The First Citizen Awards Banquet recognizes individuals…
The following has been provided by Broadridge Investor Communications Solutions, Inc. Even though tax filing season is well under way, there’s still time to make a regular IRA contribution for 2018. You have until your tax return due date (not…
For those of you with a charitable heart over 70.5, you might have donated to your favorite charity directly from your IRA last year. This gifting strategy, technically called a Qualified Charitable Distribution (QCD), has increased in popularity over the…
For the fourth time, our firm is thrilled to partner with Collier Law and Willamette Valley Hospice to bring Women’s Worth. This 2-hour seminar has been created by and for women. Why is this important? Here are a few unsettling…
As CERTIFIED FINANCIAL PLANNER™ professionals, we are intimately familiar with the term ‘fiduciary.’ It means to put the best interests of others (in our case, our clients) above all else. It’s hard to imagine a job with more fiduciary responsibility…
At the start of every new year, our team sets aside a day to gather offsite. Yesterday, we celebrated the accomplishments of our firm and staff, analyzed the missed opportunities and set goals for the year ahead. Here are some…
Not necessarily in the immediate future—although the probabilities of one have moved higher in recent months—but at some point, yes. Based on a rough survey of indicators put forth by various sources, the odds of one happening in the next…
The longest government shutdown in U.S. history ended after 35 days on January 25, 2019. A temporary appropriations bill extended funding for shuttered federal agencies to February 15, 2019, while a bipartisan committee negotiates a new spending bill for the…
The FOMC unanimously decided on no policy action upon the conclusion of their January meeting, which was as expected. The formal statement noted continued strength in the labor market and economic activity rising at a ‘solid’ rate (downgraded from December’s…
We had a wonderful time yesterday, welcoming a group of over 60 people to join us for our seminar, “Providing Financial Wisdom Leadership and Planning in Tumultuous Times.” 99% of those who RSVPed attended, which made for lively conversation and questions throughout. David…
Unfortunately, data breaches are a part of our high-tech world. Today, we learned of a new one. Touted by many technology outlets as the “Mother of All Breaches,” the “Collection #1” breach announced today exposed 2.6 billion email addresses and…
Medicare premiums, deductibles, and coinsurance amounts change annually. Here’s a look at some of the costs that will apply in 2019 if you’re enrolled in Original Medicare (Part A and Part B). Medicare Part B Premiums According to the Centers…
In the final quarter of 2018, interest rate and growth fears, along with geopolitical events, sparked volatility in the financial markets and reversed many of the outsize stock gains notched earlier in the year. The S&P 500 posted a loss…
It is times like these that test the most stalwart of investors. As you have probably noticed this last quarter was tough for investors of all stripes. Despite being a decade old, this has been the most “unloved” bull market…
When we tell people that we’re CERTIFIED FINANCIAL PLANNER® professionals during times of market volatility, we get empathetic looks, paired with comments similar to, “Boy, that must be tough right now. Are your clients calling you in a panic?” This…
Technically, we are right on the cusp. By definition, a ‘bear market’ in stocks occurs at the point of a -20% price drop from a recent peak—we’re within a percent or two from that threshold. Although this recent movement seems…
With the holiday season upon us and the end of the year approaching, we pause to give thanks for our blessings and the people in our lives. It is also a time when charitable giving often comes to mind. The…
Once a quarter, we share a little bit about what’s going on in the lives of our team. Here’s what the last three months looked like for us. Michelle spent the fall doing things she loves. She’s enjoyed several plays and…
The Federal Reserve Open Market Committee raised the fed funds target rate by 0.25% to a new level of 2.25-2.50%. This was widely anticipated, with a high futures market probability of this outcome beforehand. There were no committee dissents. The…
While opportunities for tax planning in 2018 are dwindling, it’s not too early to consider making adjustments for next year. The changes that accompanied the Tax Cuts and Jobs Act of 2017 (TCJA) are coming into focus, and they are…
At the risk of being repetitive, many of the same issues as in the last installment, with resolution still hard to find. Tariffs/Trade Despite the positive market reaction to a 90-day deferral by the U.S. in implementing a 25% tariff…
This fall, our team attended a seminar focused on Elder Abuse and Reporting. Besides learning about the laws, regulations and definitions associated with elder abuse, we were updated on common elder abuse and consumer scams. Due to accessibility during business…
We are happy to announce our newest team member, Sarah Sepulveda. As a client service specialist, Sarah will be working in depth on the administrative details of client accounts. Processing withdrawal requests, preparing paperwork for client meetings and proactively finding ways…
This fall, we helped several of our client families navigate the complexities of the Free Application for Federal Student Aid (FAFSA). The College Board has released college cost data for the 2018-2019 school year in its annual Trends in College Pricing…
The horrific wildfires impacting California serve an unfortunate reminder on the importance of preparing for a disaster. Operation Hope and FEMA have compiled an Emergency Financial First Aid Kit (EFFAK) to help you prepare financially and provide tips to reduce the…
Thanksgiving week can be just another week, full of commitments and business. Or, it can be a time of reflection. We chose the latter. This week, we took some time as a team to share our gratitude. Gratitude for…
Unlike the surprise result in the presidential election two years ago, that fooled pollsters and statisticians both, last week’s mid-term election results were in line with predictions—although a few surprises still unfolded. The Republicans held their majority position in the…
January brings about an opportunity to reset and reframe the year ahead. Join us for a free financial and economic update to get 2019 off to a great start. PROVIDING FINANCIAL WISDOM, LEADERSHIP AND PLANNING IN TUMULTUOUS TIMES When: January…
As expected, the FOMC unanimously made no change in the fed funds target rate during the November meeting—leaving the level at 2.00-2.25%. Their formal statement offered few surprises, noting strength in underlying economic growth and labor markets. In keeping with…
Beginning on November 1, 2018, individuals (including their families) may apply for new health insurance or switch to a different health-care plan through a Health Insurance Marketplace under the Affordable Care Act (ACA). The open enrollment period for 2019 health…
The perception of the risk inherently associated with investing is ever-changing. When markets are strong and uncertainty is low, prices go up and market volatility is reduced. Of course, the opposite is true as well. Uncertain times and weak prospects…
Blockchain is a data structure used to create a digital ledger shared among a distributed network of computers. It was initially designed for the peer-to-peer exchange of the virtual currency bitcoin. However, businesses are now developing and testing some potentially…
Where should interest rates be? This has been pondered countless times over the last decade as the Fed imposed a monetary policy of extreme easing during the depths of the Great Recession, keeping interest rates near zero in subsequent years,…
Once a quarter, we take a few minutes to update you on what’s going on with our team. Here’s what has been happening in our world(s). Over the summer, Michelle spent a lot of time near or on the water: staying…
The current pull back in the stock market once again gives us an opportunity to remind everyone just how normal and frequent these events are. Since the end of September, the S&P 500 is down about 6.4% and the broader…
The last few days of market turmoil may have you wondering, is a recession coming? One of many indicators that economists are watching is the yield curve. But what does it tell us? What is the yield curve? The yield curve…
Over the weekend, Brenna and I spent a part of our morning taking “Steps to Safety.” This was the name of the walk/run event hosted by the Center for Hope and Safety on Saturday morning. Part fundraiser, part awareness-builder, part…
We don’t know about you, but there are days when we envision getting far away from the news and the disquieting things we hear each day. Fortunately, and we’ve mentioned this before, the economy and the various capital markets don’t…
What is the Medicare Open Enrollment Period? The Medicare Open Enrollment Period is the time during which people with Medicare can make new choices and pick plans that work best for them. Each year, Medicare plan costs and coverage typically…
The FOMC decided to raise short-term interest rates by another quarter-percent—the third hike this year—bringing the fed funds target range to 2.00-2.25%. This was largely as expected, with formal probabilities of such a move being pegged at around 95% based…
Last week, I enjoyed leading a class for the Neighborhood Economic Development Corporation (NEDCO) and their Financial Foundation course. For more than 35 years, NEDCO has been building opportunities in our community. By supporting financial stability and responsible homeownership, providing…
When it comes to retirement, the most common concern we hear from our client couples isn’t usually related to their finances. It’s personal. Among the top for many long term couples? “How are my partner and I going to handle…
As of today, fees previously associated with a credit freeze have disappeared. This has renewed the conversation around placing a credit freeze and identity protection. Last fall in the wake of the Equifax data breach, we shared strategies for adults to protect…
It was our pleasure to serve as table captains at today’s Champions for Children luncheon. Liberty House Child Abuse Assessment Center holds this fundraising luncheon every fall in an effort to spread the word about the vital services they provide…
On December 18, 2017, our office posted an article titled, “What to Make of the Rise in Bitcoin and Other Cryptocurrencies?” On the previous day, Bitcoin reached an all-time high of nearly $20,000 – a price it has not seen…
Lifelong learners make the best financial planners. It’s a vital part of what makes us not only a knowledgeable resource, but a trustworthy partner for our clients. Every fall, a handful of these financial planners attend a unique retreat. Where thought…
Emerging markets have long been characterized by unique, idiosyncratic factors and higher volatility, especially compared to more established markets such as the U.S., Europe and Japan. This is true despite an expansion of opportunities and greater investor acceptance of these…
According to the most recent Congressional Budget Office (CBO) projection, the federal budget deficit for fiscal year 2018 (which ends on September 30) will reach $793 billion, or 3.9% of gross domestic product (GDP). This figure is $230 billion larger…
It’s no secret that a 529 plan offers tax advantaged growth for college expenses like tuition, books, supplies, etc. What isn’t as clear is who should own the account? The parent or the grandparent? As CERTIFIED FINANCIAL PLANNERS™, we get…
As many of our client families approach age 70½, they begin to consider the impact their required minimum distribution will have on their income and tax liability. A common question that crosses their minds: Should I consider delaying my first required…
What is the current level of recession risk? It’s always prudent to ask these questions when conditions are benign, since that’s when the downside of the current good times is usually the most ignored. It seems everyone in the world…
For the past two years, I’ve had the great pleasure of teaming up with Willamette Valley Hospice and Collier Law. Together, we’ve brought the opportunity for knowledge and empowerment to women in our community. The last several seminars have been such a great success,…
Last spring, my wife Laurie and I bid on an auction item at the Rotary Club of Salem dinner and auction. The package included and a private tour of the Oregon State Hospital Museum of Mental Health. We decided to take our team, and…
The Memorial Day weekend is usually the beginning of the summer driving season, and — not coincidentally — often a high point in the annual ups and downs of gas prices. This year, almost 37 million drivers hit the road…
Most Americans will receive Social Security and Medicare benefits at some point in their lives. For this reason, workers and retirees are concerned about potential program shortfalls that could affect future benefits. Each year, the Trustees of the Social Security…
The FOMC concluded their monetary policy meeting today, which, as expected, resulted in no change to the fed funds rate—currently targeted to a range of 1.75-2.00%. There were no dissenting votes. The formal narrative again was positive in its assessment…
The Gross Domestic Product (GDP) report came out last week and showed that the economy grew at a rate of 4.1% last quarter; the highest growth rate in the last 4 years. A common question we get from our clients…
Do you have a student loan (or two)? Interest rates on federal student loans are set to rise for the second year in a row. This table shows the interest rates for new loans made on or after July 1,…
Once a quarter, we like to give a team update to let you know what’s going on in our lives both personally and professionally. Here’s what the second quarter of 2018 looked like for us. Taking advantage of all the sunshine we have…
Did you know that one of five people in our community go to bed hungry every night? Marion Polk Food Share is working hard to change that. Their programs range from emergency food supply, managing Meals on Wheels, coordinating incredibly fertile community gardens and…
Happy summer! The second quarter of this year brought with it some more of the volatility we experienced in Q1. While the market movements weren’t as wide as the first quarter, political rhetoric and interest rate changes continued to keep…
Productivity continues to be a debated topic, and the subject of both academic and more practical white papers, with no clear-cut conclusion reached, although hopes and expectations for improvement from current low levels are widespread. A recent report by consultant…
Prior to our client meetings, we send out a brief questionnaire to understand what we can prepare in advance to assure our time together is valuable. In a recent questionnaire, a client asked a great question, “How will the latest tax reform…
Talk About Trade The majority of the market questions we’ve received over the last three months have been on trade. The back and forth between the White House and China (and most recently, Canada and Mexico) have some of you…
In working with their estate planning attorney, many of our clients choose to name a child or other family member as their successor trustee. In most cases, that individual has little to no experience serving in this important capacity. Here’s…
You know how when you buy a new car, you suddenly see ‘your’ car everywhere, though you never really noticed it before? That’s what’s been happening with me and the Roth IRA lately. They’ve been around for over 20 years but…
The June FOMC meeting concluded with members deciding to raise the fed funds target rate by 0.25%, for the seventh time this cycle, to a new range of 1.75-2.00%. As the probability of this happening was over 95%, in light…
Dear Graduates, As you make your way into the workforce, you might feel eager to take on the first job offer that comes your way. But I encourage you to proceed with thought, caution and with the best interests of…
Dear College Graduates, Most of you will walk away from your education with more than a diploma. Around 68% of you graduating with a bachelor’s degree are carrying $30,000 in student loan debt. For graduate students, that number is closer to…
Dear College Graduates, This will not be like other advice columns. I won’t condescend, nag, or remind you about irritating millennial or Gen Z stereotypes that you’ve been working to overcome. My goal in this three part series is just to…
Oil prices have a stealthy way of luring investors into the complacency of a trading range, before taking a dramatic turn on the cusp of a single geopolitical factor (often in the Middle East) or variety of coinciding factors. With…
Last week, I sat down with one of my long time clients. She and I were discussing the volatile stock market as of late, and I was sharing with her that corrections and pullbacks are a part of a normal,…
The Fed met today and ended their meeting with a unanimous vote of no action on the interest rate front, as predicted, with the fed funds rate target remaining at 1.50-1.75%. The formal statement showed little change from the March edition,…
If you receive Medicare, you will be getting a new Medicare card in the mail. To help prevent fraud and fight identity theft, Medicare is removing Social Security Numbers from Medicare cards. Your new card will have a new Medicare…
The first 80 degree day of 2018 and there were still over 50 women who came to learn what they can do to improve their financial and estate plans. This is the second time we’ve co-hosted and co-sponsored this unique event.…
There are financial terms that, as advisors, we often use as if they are a part of everyday conversation. Some clients will get a bit giddy when we use terms like asset allocation, beta, correlation, and diversification. The other 95%…
Yesterday, while the rest of the staff was busy working, I had the opportunity to attend the annual luncheon supporting the Boys and Girls Club of Salem, Marion and Polk Counties. While I’ve had a long connection the Boys and Girls…
Market volatility has obviously been ramping up as of late, with one of the catalysts being the announcement of various layers of tariffs by the U.S. administration. This rhetoric has been targeted at China, which has responded with a series…
Women are powerful. They represent the primary breadwinner in 44% of U.S. households and manage over $14 trillion (51%) of wealth today.[1] Even with that kind of influence, the relationship between women and finances isn’t always an empowered one. Only…
Once a quarter, we like to give a team update to let you know what’s going on in our lives both personally and professionally. Here’s what the first quarter of 2018 looked like for us. Last month, Michelle wrapped up the extensive volunteer…
We’ve spent the last 6-12 months telling you to anticipate an increase in market volatility. We have a feeling many of you were recalling those conversations as you rode through the market volatility of the last quarter. For the first time…
On St. Patrick’s Day, we were thrilled to join about 2 dozen other sponsors who gathered to support Liberty House. Their annual Celebrate Spring dinner and auction raises funds to support the important work this organization does. Liberty House is…
Markets were in the news again, with media headlines implying panic selling, akin to what we saw in early February when the market experienced its first correction in years. Headlines especially focus on the drop measured in the number of…
The juxtaposition of a bull and a bear to describe capital markets is thought to have originated in the early 1700’s. Even though several stories exist, there is no definitive answer as to which, if any, is correct. The following…
Do you know the difference between Medicare, Medigap and Medicare Advantage? What about supplements A, B, C, D and the rest of the alphabet soup? My parents are approaching Medicare age and late last month, I tagged along to attend…
At the end of last week, the news was dominated by President Trump’s announcement to implement tariffs on imported steel and aluminum products. This has a lot of us wondering how those tariffs would look in practice. Our on-staff Chartered Financial…
Yesterday, I had the great pleasure of visiting Willamette University. I spoke with a group of brilliant students who were in their third or fourth year. Some of them were looking forward to graduation in June, others were gearing up for…
Recently, one of our client families came to us with questions around how best to finance a down payment for their future home. A young couple, their home was perfect back when it was just the two of them. But…
At a recent meeting with one of our long time client families we were asked for some tips on how to best maintain and protect their online profile in this ever changing digital world. “How do we manage all of…
And a good time was had by all! Last Saturday, our whole team gathered at the Salem Convention Center to support The Salem Rotary Foundation. The annual GoodWorks Auction hosted by our club raises money for the foundation to support local…
For the last several months, the USA Today insert in the local newspaper has had an ever-shrinking, almost non-existent “Money” section. I’d wager to guess that may not be the case in tomorrow’s edition. Today’s news of the Dow Jones…
Today, Janet Yellen attended her last meeting of The Fed as chair. As anticipated, it was uneventful with no increase to interest rates for the time being, keeping short-term rates to a targeted range of 1.25-1.50%. New chairperson Jerome Powell…
As you’re pulling together information to prepare your 2017 tax returns, you might be looking through your paper files wondering, “Do I really need all this?” It’s a good time to revisit the essentials of what you should keep and…
Our team of financial planners is special. We’re diverse, we’re experienced and we’re of the belief that knowledge is power. Last fall, in partnership with Willamette Valley Hospice and Collier Law, I had the great privilege of speaking to a room full of intelligent women…
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The market highs set in 2017 may have you a bit nervous. How much longer can this bull market go? Here’s Larry’s take.
This weekend, I ran into a couple of experienced mom’s who shared some holiday advice. “Whatever you do, do NOT start the Elf on a Shelf thing,” said one. The other added, “OR let grandma set up an expectation for…
Last month, our team of financial advisors wrote about cryptocurrencies and bitcoins. We gave you an overview on the mysterious investment and highlighted some of the dangers. Today, cryptocurrencies are making headlines again. With exponential gains in bitcoins dollar price (currently…
Ron Kelemen and his wife and Kathy retired on November 2, after 35+ years in the financial advisory business. Before they got too far down the retirement path, we interviewed Ron about his years in this industry. How did you…
As a member of our Salem community, we are proud to support a number of deserving organizations, several of which come with the gift of beautiful music. If you’re looking for an event to get you and your family into…
Tax reform took a lurch forward over the weekend with both the House and Senate passing different versions of the bill. You’ll find a lot of similarities between the two: overall tax rates are lower for individuals and businesses, child…
For some of our client families, this time of year means tax planning. For others, we’re focused on how to help them complete the charitable resolutions they set back in January. In today’s blog post we discuss how to achieve…
For those with a charitable heart, they know the secret: that the very act of giving makes us happier. They want share that secret with everyone, especially their families. No matter what your family looks like, you can instill values that will…
The Federal Reserve Board can seem mysterious. With signs of the stimulus program unwinding and the recent nomination of Jerome Powell to replace Janet Yellen next year as chair of the board, there’s renewed interest in unpacking this opaque government…
For over 35 years, Ron and Kathy Kelemen have worked in the financial advisory business. Last Thursday marked their final day of work as they join several of our client families in retirement. Check out this fun, surprise video our…
As fee-only-Certified Financial Planners, clients often ask us our opinion about various investments. It seems like we get this question every time there is a new investment fad or a new IPO offering. Because we are investment fiduciaries, we always…
What biases affect your financial decisions? Now that Richard Thaler has won the Nobel Prize in economics for his groundbreaking research in the field of behavioral finance, perhaps we’ll all be more aware of our often-flawed decision making. Dr. Thaler…
With the Dow at over a record 23,000, we just passed the 28th anniversary of the October 19, 1987 stock market crash, in which the Dow fell 508 points, or 22.6% in one day. That would be the equivalent of…
As fee-only financial advisors, the fall often means some hands on year-end tax planning for our clients. Couple that with recommendations of early filing in the wake of the Equifax data breach and news of a tax reform proposal, and…
The long‐awaited fall is finally upon us. We are pleased to present our review of the third quarter of 2017. Once again, it’s been a good quarter for stocks, except for some rough patches during August. The past 12 months…
If you’ve spent the month of September evaluating your online presence and security measures, you’re not alone. The Equifax data breach has served as an unfortunate reminder of just how public our “private” information is. This breach has also rekindled…
Another week has passed since we’ve checked in with you on the Equifax data breach. We hope by now that most of you are starting to feel better about the identity safety measures you have put in place. Aside from the…
Our clients often express concern about the debt that they, their kids or their grandkids are saddled with straight out of college. In the last several years, news about the possibility of student loan forgiveness has surfaced. If ever there…