Each quarter, our investment team comments on the markets and economy over the past quarter and looks forward at what the next period might bring.   Executive Summary Inflation forced the Fed and other central banks to raise interest rates and tighten liquidity in 2022. The results have been unpleasant, but in many regards market and economic activity this year has been logical. Unsustainable froth in some of the most speculative assets has been washed away, and equity prices overall probably better reflect the new interest rate reality. Persistent inflation and deeper recession remain r ..read more

Following the death of a loved one, financial matters can be complicated. One aspect to consider is debt. It is possible to inherit debt in certain situations. However, when a loved one dies, a family member or spouse may not necessarily inherit the debt the loved one leaves behind. Instead, the deceased person’s estate usually takes care of any outstanding debts. The decedent’s estate is the property that an individual has at death. In some cases, the decedent’s assets go through probate, a legal process that transfers a person’s property after they die. Probate ensures that the decedent’s de ..read more

While it remains to be seen if the Supreme Court will allow President Biden’s student loan forgiveness plan to move forward, borrowers may still experience relief under changes to how discretionary income is calculated.    First announced in late August, the White House program would cancel up to $10,000 in student debt ($20,000 for those that received a Pell grant) for individuals making under $125,000 per year or households making less than $250,000. Another key part of the program lowers income-based student loan payments from 10% to 5% of discretionary income, which is calcu ..read more

Stocks and bonds advanced for a second consecutive month in November, based on increased hopes for an economic soft landing and a Fed pivot back toward more accommodative policy. This was despite a fourth 0.75% rate hike in less than five months. On the last day of the month, Fed Chairman Jerome Powell suggested rate hikes will continue but transition to smaller increments.  International stocks significantly outperformed and are now modestly ahead of U.S. stocks for the year. The dollar declined and continues to be inversely correlated with stock prices overall. While we are still techni ..read more

If you want to plan ahead to pass assets down to heirs in a tax-efficient manner, a grantor trust might be the right choice for you. Find out more about what a grantor trust is and how it works, so you can make an informed decision about your finances. Who is the Grantor of a Trust? A grantor is a person who creates a trust. They’re often the same person who funds the trust, transferring ownership of assets into the trust. In most cases, the grantor also appoints the person who will manage the trust — known as the trustee. In the case of a grantor trust, the grantor retains certain powers over ..read more

Public-sector employers and other qualifying organizations can offer 403b and 457 plans. Find out about these plans and which might be right for you. Many people are familiar with 401k plans. These are employer-sponsored retirement plans. If you’re a qualifying employee, you can defer part of your paycheck before taxes into these plans, and in certain cases, your employer may match some of your contributions. However, public-sector organizations at the state and federal levels, such as schools, can’t generally offer new 401k plans. That doesn’t mean public-sector employees are left without emp ..read more

Understanding Modified Adjusted Gross Income It’s true that you won’t find your modified adjusted gross income listed on your Form 1040, but that doesn’t mean it’s not important. MAGI is a vital calculation for many taxpayers. Unfortunately, taxpayers may not be familiar with what modified adjusted gross income is or its impact on various potential tax benefits. The calculation for MAGI can vary depending on what it is being applied to. The IRS uses this calculation to determine your eligibility for various tax deductions and credits, as well as retirement plan contributions, including: Tradi ..read more

A CPA, also referred to as a certified public accountant, is an accounting professional that has met all the licensing requirements set by their state’s board of accountancy. To earn the CPA designation, you must meet stringent education and experience requirements and pass the extensive Uniform CPA examination. These professionals must also adhere to the Code of Professional Conduct set by the American Institute of Certified Public Accountants (AICPA). Is a CPA the Same as an Accountant? While all CPAs are accountants, not all accountants are CPAs. The major difference between these two profe ..read more

Self-employment, especially during COVID-19, appears to be on the rise. People love the idea of creating their own schedules and working from wherever they please.  However, finances can be a bit tricky and confusing for those who are self-employed. One of the questions I see often is this: “What happens to my 401(k)? Can I still contribute if I don’t have a traditional employer?” While there is more than one retirement plan for the self-employed person, I’ll be walking you through the one I used that ultimately enabled me to hit my $100k goal by 25 years old — a SEP IRA. If you didn’t kn ..read more

The rest are getting gift cards, cash or slippers (unless you’re lucky enough to have a Gen Zer in your life, who may be knitting you a sweater).    Key findings: Budget cuts: 60 percent of Americans say inflation is impacting their holiday shopping choices this year, with the average shopping budget down roughly 23% (approximately $200) this season.*  Prioritizing pets: 34% of Americans will be purchasing a gift for their dog vs.19% who will be purchasing gifts for their in-laws. 22% of cats will be receiving gifts.  Baking, crafting and thrifting: Cash or gift cards (77 ..read more