Our 2 Cents

Like the lights that pop up on your car's dashboard to tell you something is wrong, there are warning signs that can indicate potential trouble in your financial life too. On today's episode, Steve and Gabriel are discussing things to watch for to spot potential problems ahead. Plus, they're sharing some quick hits and answering a listener question. 

1. Gabriel's 'Quick Hits': 
   • Social Security COLA for 2023 is the most since 1981
   • Increased 401(k) and IRA contribution limits for 2023
   • Tax bracket adjustments & standard deduction increases
   • Average college tuition costs have declined  
2. Financial Warning Indicators: 
   • No idea what your budget is for your retirement years
   • Only focusing on the "retirement number"
   • Not having sources of tax-free income in retirement  
3. Listener Question: 
   • "I've always been a more aggressive investor. I like seeing my money grow. At what age should I begin getting more conservative?" - Art

The gross national debt is inching close to an important statutory ceiling and Steve and Gabriel are here to break down what that all means on this new episode of Our 2 Cents.

They're also sharing real experiences when their clients' emotions took over the the driver's seat in their financial planning.

1. $31,000,000,000,000 and Counting:
   • Congress has placed a "cap" on how much the government can borrow, and at the start of the fiscal year the debt has reached $31 trillion, and $31.4 trillion is the borrowing limit.
   • However, this year's deficit will decline by an estimated $1.7 trillion.
   • So, what's the difference between the deficit and the debt?
   • What is the impact of all this on consumers and possible future tax ramifications?
2. Sharing Stories: When Emotions Impact Your Planning:
   • It's no secret that your emotions can play into your decisions and reactions across all areas of life.
   • We're sharing stories about some of the more common emotions with regards to investing:
     • Greed
     • Fear
     • Hope
     • Pride
     • Joy

We're back again on the Our 2 Cents podcast! Gabriel and Steve are putting a different spin on talking about recent market behavior by sharing some do's and don'ts when considering your options. Next, they're drawing comparisons between the world of retirement planning and America's favorite sport to watch: Football.

1. The Rollercoaster Ride:
   • What options are available to you as we ride out this rollercoaster market ride?
     • Do nothing?
     • Abandon your plan?
     • Let your emotions drive your decisions?
     • Try to buy the winners and sell the losers?
     • Look at non-market options?
   • There are pros and cons to every approach when handling difficult markets, we'll discuss some main points to consider if you are ready to take action.
2. Calling the Plays - Getting Into Victory Formation:
   • The 'Retirement Red Zone' and why this time is critical that you don't get tackled for a loss.
   • Does the coach make a difference? Why you should find one who fits your needs and your investing philosophy.
   • Victory formation: Not taking unnecessary risk when you've already won the game.

On today's episode of Our 2 Cents, we're delving in to the world of the fine print, and what hidden or not-so-hidden information you should pay attention to. But before we get to that, we are talking about the interest rate hike we saw last week and the continued efforts to reduce inflation. 

1. Three 75-Basis-Point Interest Rate Hikes in a Row:
   • The Fed raised interest rates yet again in another attempt to rein in inflation.
   • What can we expect over the next few months and quarters? Should we anticipate more rate hikes?
   • Are we in a recession right now? And what are the major drivers of a recession we should keep an eye on (e.g. unemployment, mortgage rates)?
   • How does all of this impact the stock market and your investments?
2. What's Hiding in the Fine Print?:
   • Does your traditional Long-Term Care policy have premium rate increases?
   • Are there any hidden fees in that variable annuity?
   • Watch out for mutual funds with a performance history that is "back-tested."
   • Can you ever get your money out of that REIT?

We're back with a new Our 2 Cents podcast episode. As mentioned last week, we're diving into the world of Maslow's Hierarchy of Needs and discussing how we feel it relates to money and finances. Then, we're giving a quick update on the future of tax filing and rounding out the show with some listener questions.

1. Maslow's Hierarchy of Needs:
   • We're dissecting Maslow's Hierarchy of needs and sharing how it applies to your every day life.
   • What does it have to do with your money?<
   • What are the financial parallels with the pyramid tiers and how do your finances impact you in each level?
2. "Tax Filing Should Be Simple":
   • The Inflation Reduction Act included $15 million for the Treasury Department to study the development of a free federal tax-filing system.
   • What could this mean for the future of tax preparation and filing in our country?
3. Listener Questions:
   • "I'm almost 60 years old and I don't have any money yet in Roth IRAs. Should I start converting some IRA money to Roth over the next few years?" - John
   • "I'll be inheriting about $250,000 after we settle my mother's estate in the next few months. I could use this money for a lot of different things like paying off debt or saving it for my own retirement. But part of me feels uncomfortable using my mom's life savings to clean up my mess. Do you have any suggestions for how to navigate this?" - Don

Our 2 Cents is back this week with a great episode! Steve and Gabriel are discussing forward-looking assumptions and forecasts for financial planning and then they're diving into the world of "financial satisfaction" as it relates to how you feel personally about your planning. Join in now for this conversation!

1. Capital Market Assumptions - The Experts Predict:
   • What are capital market assumptions and what are the designed to do?
   • How can these forward-looking forecasts help you in your long-term planning?
   • How and why do major investment & research firms like Blackrock, Morningstar, Vanguard, and Research Affiliates change their predictions based on market behavior?
   • We'll share ways these forecasts are used to model portfolios and potential performance.
2. Elements of Satisfaction:
   • The elements to satisfaction in retirement planning
   • What, finances aside, are we trying to provide to our clients when building them a plan?
   • Peace-of-mind, confidence to spend, independence: What can you do to accomplish these feelings of satisfaction?

We have a great episode in store for you today!

Steve and Gabriel kick things off by discussing a bit of a hit-or-miss topic: The Student Loan Forgiveness Plan. Next, they tackle the complex world of marketing and advertising in our industry, and finish the show answering a couple 'Getting to Know Us' questions!

1. The Student Loan Forgiveness Plan:
   • Who is going to see their federal student loans forgiven?
   • How do you know if you qualify for the forgiveness?
   • Insights into the controversial nature of this topic
   • What are the presumed economic impacts from this?
2. Marketing Manipulation:
   • How headlines like "Invest Like the 1%" and "Hedge Funds For the Rest of Us" have gotten popular and garner a lot of attention
   • Why marketing companies try to elicit emotional and instant reactions with their messaging 
   • Do these marketing companies have compliance oversight or regulations in the financial industry?
   • Are there people with hidden agendas behind the messaging?
3. Getting to Know Steve and Gabriel:
   • If you could only eat one thing for dinner for the rest of your life, what would it be?
   • If you could live during any other time period in history, when would it be?

Gabriel and Steve are back at it again to review The Inflation Reduction Act now that it's been signed into law, they deliver a Pop Quiz on household health, and wrap up with a listener question! Listen now for a great new episode!

1. The Inflation Reduction Act:
   • Key provisions to pay attention to as they may impact you and we'll share when the changes will begin.
   • Prescription drug benefits, premium tax credits for the ACA, hiring more IRS staff, and more.
   • Changes to Medicare Part D such as out-of-pocket costs cap and "smoothing," premium increase limits, and other benefits to Medicare recipients.
2. Pop Quiz!:
   • What cleaning supplies contain VOCs (Volatile Organic Compounds)?
   • What percentage of households typically do spring cleaning every year?
   • What area of the bedroom did researchers find contains more germs than a chimpanzee bed?
   • Which of these cleaning activities does not reflect the calories burned by a 150-lb person for one hour of the activity?
   • Which household products are not recommended as safe cleaners by the Environmental Protection Agency?
   • When people do "spring cleaning," what part(s) of the house do they typically prioritize?
   • Researchers have found how many types of bacteria on a kitchen sponge?
3. Listener Question:
   • "I have a financial advisor who has done a good job for me, but my brother always tells me I could be doing better. Should I listen to my brother or tell him to leave me alone" - Pete

We are back with another new episode of Our 2 Cents! Today we are discussing the rate increase for Social Security that might be coming your way, the dangers of procrastinating on your retirement planning and answering a question from one of our loyal listeners. Click below to listen in now!

1. Social Security Raise Ahead in 2023 :
   • Current assumptions show a huge jump in 2023 due to inflation.
   • Just how much of an impact could that make for retirees?
   • What else should you be aware of with a Social Security raise like this?
2. The Procrastination Problem:
   • Reasons procrastination might be stalling your retirement planning.
   • Have you been "hitting the snooze button" on important planning decisions?
   • How to overcome procrastination challenges.
   • The importance of thinking longer-term and not only the immediate consequences.
3. Listener Question:
   • "You often talk about having retirement funds in different tax buckets. Do you recommend residents of Illinois contribute to Roth 401(k)s? I ask because I believe contributions to a Roth would be taxed as ordinary income, however contributions to a traditional 401(k) would not be taxed by Illinois now or at the time of withdrawal. Seems like you are incurring the 5% (roughly) tax unnecessarily?" - Jeff P.

On this week's podcast episode, Steve and Gabriel give a synopsis of the proposed Inflation Reduction Act of 2022 and how the various innerworkings of the Act could potentially impact you.

Next, they'll discuss times that they've found themselves "going against the grain" in terms of their financial planning advice. Join us now for this discussion!

1. The Inflation Reduction Act of 2022:
   • Will the effects be felt immediately or longer term?
   • Expanding ACA subsidies and the impacts on premium tax credits
   • Prescription drug pricing reform and Medicare costs
   • IRS funding and tax enforcement
   • Plus more!
2. Going Against The Grain:
   • Using life insurance in retirement planning
   • Never having any debt
   • Have 6 months worth of cash for emergencies
   • Buying an annuity