Get More For Your Cash!
It’s a bad time to hold too much cash in your portfolio or bank account. The Federal Reserve is systematically raising interest rates to temper inflation and as a result many fixed income products are becoming more attractive. Cash that is not needed for your emergency fund and that is left in a savings account loses value from inflation and earns minimal returns. The average interest rate for a savings account is low, and currently sits at 0.13% according to Bankrate’s 9/21/2022 weekly institutional survey.
(more…)Read MoreThe ABLE Account Program: Financial Planning for Family Members With a Disability
Financial planning for family members with a disability can be a challenging responsibility. Governmental assistance programs such as Supplemental Security Income (SSI) and Medicaid have strict eligibility requirements that make caring for loved ones difficult. For example, SSI has a limit of $2,000 in countable assets that a recipient can own which includes cash, bank accounts, investment and retirement accounts. An estimated 8 million people in the United States receives SSI disability benefits, but these benefits often do not cover all necessary expenses. Families and friends can fund special investment vehicles to assist in paying all necessary expenses.
(more…)Read MorePlanning Techniques for Bear Markets
Has your portfolio dropped significantly? What can you do? Watching your portfolio’s value tumble in the midst of a bear market can be mentally and emotionally draining. You might even wish to ignore your portfolio completely during a market downturn. While bear markets are generally unfavorable, they can provide an advantageous opportunity for various financial and estate planning strategies. Strategies such as tax loss harvesting, Roth conversions, 529 plan contributions, gifting assets, and setting up Grantor Retained Annuity Trusts (GRATs) can help you save money on taxes and efficiently remove assets from your estate.
(more…)Read MoreQuarterly Commentary Q2 2022: Interest Rates Increase
Rising wages and other inflationary factors spurred the U.S. Federal Reserve to raise short-term fed funds interest rates by 1.5% so far this year, with another 1.5% rate increase expected by year-end.
(more…)Read MoreDon’t Get Caught Without Enough Homeowners Insurance Coverage!
Given the recent wildfires in California, flooding in Florida, and other natural disasters throughout the United States, homeowners should be prepared for future disasters. Climate change, rising property costs, inflation and the risk of insurers refusing to provide or renew coverage are leaving many homeowners in jeopardy of being underinsured. Homeowners should insure the total replacement value of their property. Those carrying less than the recommended amount of coverage are at risk of cash shortfalls and in some cases only partial reimbursement for damages.
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