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Investments, LTWM News, Financial Planning

The fourth quarter was exceptionally strong for stocks, so it was important to believe in the strength of the American consumer and the power of the Fed when stocks and bonds were hitting lows last quarter (see our last quarterly commentary here). Inflation continued to decline and the probability of the first Federal Reserve interest rate cut increased for the new year. The Fed has paused since its last rate hike in July of 2023. The first cut may be as early as Q1, most likely in Q2, but could be pushed out to the end of the year, or beyond, if the economy remains robust enough to keep adding jobs. We would like to see a long pause from the Fed based on the strength of the economy. Bond yields have already responded, moving down substantially across longer maturities, in anticipation of the first interest rate cut.

The last stock market record high was January 5th, 2022, and we are currently very close to the same level for the S&P 500. The momentum from 2023 is strong and will likely continue if the strength of the U.S. job market continues and U.S. consumer spending drives GDP and corporate earnings growth higher. The bond market is back in balance between sellers and buyers as a dovish change in language by the Fed caused a sharp reversal in longer term U.S. Treasury yields from short covering. The current sentiment of bond investors is an overwhelming agreement that the next move by the Fed will be a rate cut.

We are cautious due to the high valuation of U.S. stocks but remain optimistic on the U.S. job market and improved productivity from new technologies. We want to remind you we are watching all the developments closely, especially small-cap stocks, which performed very well during the last two months of last year. We look forward to our planning discussions for the new year and meeting with you, whether in person or virtually.

For those who would like a deeper dive into the details, please continue reading…

Jan 12

Jan 12 New Retirement Plan Contribution Limits for 2024

Financial Planning, Income Tax Planning, Retirement Planning

Get ready to save more in your retirement plan and IRAs in 2024! The Treasury Department has adjusted how much you can contribute to your employer sponsored retirement plan and Individual Retirement Accounts (IRAs).

Keep reading to find out more…

Oct 13

Oct 13 The LTWM Insider – Market and Economic Commentary Q3 2023

If the Federal Reserve Board handles the spike in yields resulting from the current lack of buyers in the U.S. Treasury bond market, which we believe it will, we remain cautiously optimistic on the strength of the American consumer, since jobs are still plentiful, and workers are proving to be very resourceful in the face of high inflation.

For those who would like a deeper dive into the details, please continue reading…

Oct 13

Oct 13 Year End Giving

Charitable giving is win-win, benefiting both those in need and the generous individuals who give. There are opportunities for charitable giving to not only amplify the job of giving but also reduce one’s tax liability. If lightening your tax burden while making a meaningful impact on a charity or cause that is important to you, then you’ll want to keep reading…

Oct 13

Oct 13 Four Reasons to Review Your Medicare Options Every Year

Retirement Planning

You may be surprised that almost half of Medicare beneficiaries do not review or even compare their coverage options each year during open enrollment.1 Navigating the Medicare landscape can be challenging, and it's easy to overlook when there are more engaging tasks at hand. However, ensuring you have the most suitable coverage each year is vital. Here are four compelling reasons why all Medicare beneficiaries should make it a priority to review their Medicare selections annually.

Jul 12

Jul 12 The LTWM Insider- Market and Economic Commentary Q2 2023

Investments, LTWM News

Apr 11

Apr 11 The LTWM Insider- Market and Economic Commentary Q1 2023

Investments, LTWM News

Jan 19

Jan 19 The LTWM Insider – Market and Economic Commentary Q4 2022

Jan 6
Jan 6 Secure 2.0

Just before funding for the federal government was set to expire on December 23, 2022, Congress passed—and President Biden later signed—the Consolidated Appropriations Act of 2023. The nearly $1.7 trillion appropriations bill funds the federal government through September 30, 2023.

There were numerous items included in the Act related to retirement savings and distributions. Collectively these items have been labeled “Secure 2.0” as they are a follow up to the SECURE (Setting Every Community Up for Retirement Enhancement) Act passed in 2019.

Oct 13

Oct 13 The LTWM Insider – Market and Economic Commentary Q3 2022

Three challenging quarters for investment portfolios, both stocks and bonds were down together again at the end of the third quarter. We are in a bottoming process that won’t likely end until the Federal Reserve Board (the Fed) pauses from its rate hikes and/or its bond selling. The Fed has delivered strong actions, two 75 basis points (bps), or 0.75%, rate hikes during the quarter to slow the economy in its attempt to bring down inflation. The overnight lending rate has moved from 0% in the first quarter to 3.25% currently and another 125 bps, 1.25%, of rate hikes are expected between the two remaining meetings in November and December this year. The Fed started its $8.9 trillion balance sheet reduction (selling bonds) and has ramped up to a rate of $95 billion per month in September or $1.1 trillion annually. The massive bond selling has created low liquidity and high volatility in the bond and stock markets.

Sep 2
Sep 2 Financial Success Through Policy Based Decision Making

Retirement Planning, Investments, Financial Planning

“Life is the sum of all your choices.” – Albert Camus, philosopher, author, and journalist.

This is the final article of a four-part series on Financial Success Through Policy Based Decision Making. Earlier articles addressed “WHAT is policy-based decision making?” and “WHY use policy-based decision making?” as well as “HOW to use policy-based decision making.” This article will provide some examples of WHEN/WHERE policies are best used to achieve your financial success.

Aug 1
Aug 1 Financial Success Through Policy Based Decision Making

“Life is the sum of all your choices.” – Albert Camus, philosopher, author, and journalist.

This is the third of a four-part series on Financial Success Through Policy Based Decision Making. The first two parts answered “WHAT is policy-based decision making?” and “WHY use policy-based decision making?” This article will dive into the details of HOW to draft policies, and an upcoming article will talk about WHEN & WHERE policies are best used for financial success.

Jul 14

Jul 14 The LTWM Insider – Market and Economic Commentary Q2 2022

It was another challenging quarter for investment portfolios, both stocks and bonds were down together for the second quarter in a row. For the U.S. markets, the Federal Reserve Board of Governors (the Fed) delivered a higher than expected 75 basis point (0.75%) increase to the overnight lending rate at its June meeting and signaled another 50-75 bps increase at its next meeting on July 27th. The Fed has delivered strong actions to slow the economy in its attempt to control inflation. The Fed started its $8.9 trillion balance sheet reduction (selling bonds) ramping up to a rate of $95 billion per month in September or $1.1 trillion annually; and so far, this move has met fierce buying from the flight to quality bond traders. Many bond market buyers believe the Fed tightening will send the U.S. economy into recession; but they could still lose capital if interest rates continue to climb.

Jun 21
Jun 21 Funds and Fees – What’s that Fee for?

A key element of being a successful investor is to understand what you are receiving for the price you pay. Discovering the price you pay often manifests in a conversation about fees. It’s hard to have a conversation about investment fees without first identifying the various kinds of fees and what those fees are intended for. For starters, the most prevalent fees include the Investment Management Fee, Transaction fees and Advisor Fee.

May 13
May 13 Financial Success Through Policy Based Decision Making

“Life is the sum of all your choices.” – Albert Camus, philosopher, author, and journalist.

This is the second of a four-part series on Financial Success Through Policy Based Decision Making. The initial question we answered was “What is policy-based decision making?” This article will address WHY USE POLICY BASED DECISION MAKING? Future articles will tackle HOW to draft policies, and When / Where are policies best used for financial success. Click to continue reading.

Apr 15

Apr 15 Financial Literacy and Your Children

Debbie Grose

April is Financial Literacy Month, so what better time to talk about your children and personal finance. Did you know that less than nine states require testing of student knowledge in the area of personal finance? Or that only 25 states require curriculum in personal finance be offered to high school students? This is according to a bi-annual report from the Council for Economic Education. Many people are opposed to teaching financial education within the school system, as they believe it is the parent’s responsibility. What this means to parents is that teaching their children about personal finance is of the utmost importance. The good news is that when you talk to your children about personal finance, not only are you preparing them for adulthood, but you could give your financial plan a boost. So, what’s a parent to do? Click to continue reading…

Apr 13

Apr 13 The LTWM Insider – Market and Economic Commentary Q1 2022

“Forecasts may tell you a great deal about the forecaster; they tell you nothing about the future.”

Warren Buffett, legendary investor

Are you a cup half full or a cup half empty type of investor?

Have stocks peaked in January, marking the first quarter the start of a new bear market; or is this a pause prior to new record highs? You will hear many forecasts, but we will only know in hindsight and the decisions of millions of investors will determine the direction. The only sure thing is the ride will be bumpy. Continue reading for more…

Apr 12

Apr 12 Know Fear

Debbie Grose

Will the markets go up or will the market go down? As an investor, fear and greed, by far are the most compelling emotions that all too often prompt poor decision making. The reality is, too many bad moves will result in portfolio underperformance and therefore have a detrimental effect on your financial plan. But with a little understanding, your fears can actually be helpful. The question is how will you read your fears and which ones should you listen to?

Mar 4
Mar 4 Financial Success Through Policy Based Decision Making - Part 1