Planned Solutions

In this episode of the Planned Solutions Incorporated Podcast, The estimates of global economic growth have been revised several times in 2022 as the probability of a recession in the US within the next twelve months has increased to nearly 25%. It seems the best scenario is a period of very low economic growth, with the worst

case is a period of economic contraction. However, this outlook for economic growth may already be reflected in market prices as investors may have incorporated these expectations into their estimates of future prices.

Also, Cryptocurrencies were touted as an unregulated way for investors to hold and transfer funds in stark opposition to the highly regulated banking industry, which makes up the foundation of the

international financial system. However, recent failures show that the lack of regulation has allowed cryptocurrency companies to repeat the same mistakes that led to the bank regulations they sought to avoid.

And,The six-month rate of interest paid on Series I Bonds declined

from a rate in excess of 9% for the six months from May 1st to

October 31st to less than 7% for the period from November 1st

,2022, to April 30th, 2023. However, the fixed interest rate component was increased from zero percent to 0.4% making the

return slightly less dependent on the future rate of inflation to

generate a positive yield.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- The holidays are a popular time for charitable giving. However, few people give much thought to how they give which means they may be missing out on potential tax savings. Ever since the 2017 Tax Act, which increased the amount of the standard deduction, many taxpayers did not have a sufficient amount of itemized deductions to be able to take advantage of their charitable

contributions.

Chase Armer's book- Financial Planning Insights is now available at:

www.amazon.com/Financial-Planning…1586894022&sr=8-1

To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

The Personal Finance Review is published and distributed on a biweekly basis by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.

In this episode of the Planned Solutions Incorporated Podcast, The stock market surged on November 10th in response to a better-than-expected inflation report. This has caused some to question how stock prices can be considered rational when prices sometimes swing by such large amounts in one day. The answer relates to the fact that investors are forward-looking, so they are constantly anticipating the future. However, the time frame investors use to price investments often changes over time.

Also, The US inflation rate declined by more than expected in October. Consumer prices increased 0.4% for the month and 7.7% year-over-year. This was a 1.4% decrease from the peak of 9.1% in

June 2022 led by a decline in energy prices. However, food prices have continued to increase, and the price of shelter has remained persistently high despite stagnation in home prices due to

increased rents.

And, In an effort to step-up tax enforcement, new tax laws have

increased the reporting requirements for non-traditional sources of income such has “gig work” or “side hustles.” This includes a requirement that a Form 1099-K be issued for income earned of

$600 or more in a year. Therefore, it will be even more important for taxpayers to track their income and expenses from non-traditional work in the coming years to make sure they are able to properly report their income without overpaying income taxes.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- The Harlan D. Wood Memorial Cancer Charity Golf Tournament was once again a big success. The tournament was rescheduled due to extreme heat in September which caused some concern that Mother Nature may be against us this year and could bring rain on the alternate date in November. However, we dodged the rain earlier in the week and had a great day for golf. Chase’s team shot a very strong 53 (-19 to par) and returned three out of their four pink balls giving them a net score of -50 for the win. This means Chase’s long quest to get his name back on the winner’s plaque has ended. However, Shannon did get the bragging rights of winning the

long-drive competition this year. More importantly, this year we raised over $12,000 for cancer charities bringing our cumulative

total to $155,045. We would like to thank everyone who supported the event this year and in years past by attending the tournament, bidding on auction items, and contributing to cancer charities.

We look forward to next year when hopefully we will be able to continue to grow the tournament and the donations raised for cancer charities.

Chase Armer's book- Financial Planning Insights is now available at:

www.amazon.com/Financial-Planning…1586894022&sr=8-1

To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

The Personal Finance Review is published and distributed on a biweekly basis by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.

In this episode of the Planned Solutions Incorporated Podcast, The high rate of inflation throughout 2022 has resulted in large adjustments to a number of areas of the US income tax code. The number of tax deductions, the levels for each income tax bracket, and the income levels of tax credits are all adjusted upward for 2023. This will produce little change in tax rates for those whose taxable income has kept up with inflation but will likely produce tax savings for those whose income has not increased in line with inflation.

Also, The US economy grew by an annualized rate of 2.6% in the third quarter, offsetting the declines reported in the first and second quarters. Consumer spending continued to the positive while private investment contracted sharply. Meanwhile, foreign trade was strongly positive and government spending once again turned positive.

And, Social Security benefits will increase by 8.7% in 2023. This is the equivalent of beneficiaries receiving an extra payment in 2023 as their total annual benefit will be more than 13 times their monthly 2022 payment. In addition, unlike past years where increases in Medicare premiums offset a large percentage of the Social Security COLA, in 2023 Medicare premiums will decrease slightly so that the entire Social Security COLA will flow through to beneficiaries.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- The annual contribution limit for employees who participate in 401k, 403b, 457 type plans will increase to $22,500 in 2023, which is a $2,000 increase from 2022. In addition, the catch-up provision that employees aged 50 and over can contribute will be an additional $7,500 (up $1,000 from the prior year), bringing the total employee deferrals to $30,000 for 2023.

The limit on annual contributions to an IRA or ROTH IRA will increase to $6,500 in 2023, up from $6,000 in 2022. The catch-up contribution for those aged 50 and older remains the same at $1,000, bringing the total to $7,500.

Limits on other small business retirement plans have also increased along with the income phase outs for ROTH IRA eligibility. With the larger increases coming in 2023, especially with the ROTH IRA eligibility, taxpayers may want to review their overall finances to determine if they need to make any adjustments, including increasing their salary deferrals or incorporating direct ROTH contributions if they are eligible based on the higher income thresholds.

Chase Armer's book- Financial Planning Insights is now available at:

www.amazon.com/Financial-Planning…1586894022&sr=8-1

To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

The Personal Finance Review is published and distributed on a biweekly basis by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.

In this episode of the Planned Solutions Incorporated Podcast, With the mid-term elections around the corner, there is a lot of noise about the risks that it could pose to the markets and the economy. Much of this is political rhetoric as both parties make their case for political power or attack the other in an attempt to get their base excited to vote. However, the data shows that midterm elections have not been the big political risk some are trying to make it out to be and, in fact, have led to positive market returns over the next year regardless of the outcome.

Also, 2022 has been a year in which investors have shunned investments to instead focus on spending for consumption. This explains why consumer prices are up and investment prices are down.

However, it may also create an opportunity for those with a contrarian mindset who are willing to limit consumption at high prices and instead invest the savings to take advantage of today’s

lower investment prices.

And, Family gifts or loans may be a good way to help the next generation get a financial head start in life. However, gifts as

well as loans, whether with interest or interest-free, may

create additional tax filing requirements as well as additional taxable income that the lender may have to report on their income tax returns.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- Applications to apply for student loan forgiveness are now being accepted at www.studentaid.gov. This process is still in beta mode which means there may be some hiccups in completing the required information and uploading the required documents. Student loan forgiveness is not expected to actually take place until the end of April 2023, however, those who are inclined may want to start working on the application now to be at the front of the line

Some clients, as well as some of us at Planned Solutions, have received paperwork from Securities America related to their privacy policy. The accounts that they are referencing were closed in 2018 when we transitioned to Schwab as our primary custodian, so it is unclear why they continue to send out these notices. Therefore, these notices, as well as the statements showing zero balances that they send occasionally, may be ignored.

The Planned Solutions Charity Golf Tournament was postponed this year due to extreme heat. Fortunately, we were able to postpone the date to a time when it should be much cooler.

The new details are:

Date: Friday, November 11, 2022

Time: 11:00 am shotgun tee time (moved up due to daylight savings)

With the change in the date, there is still time to sign up to golf or attend the dinner afterward.

The new deadline to RSVP is November 4th. This is the 20th year of the tournament so we are going all out with giveaways, raffle prizes, silent auction items, and other fun activities. We hope to see you there.

Chase Armer's book- Financial Planning Insights is now available at:

www.amazon.com/Financial-Planning…1586894022&sr=8-1

To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

The Personal Finance Review is published and distributed on a biweekly basis by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.

In this episode of the Planned Solutions Incorporated Podcast, The level of margin debt (money borrowed to invest in stocks) was at high levels in late 2021 creating a concern about the high level of short-term speculation in the stock market. However, since then, the amount borrowed to invest in stocks has declined sharply and is

now in line with the long-term trendline. This could be a sign that the stock market is normalizing by correcting for some of the excesses that were built following the pandemic.

Also, Interest rates have been increasing which is a bad thing for conventional mortgages. However, it may benefit borrowers to take out a reverse mortgage with a line of credit. This is because the

limit on the line of credit increases at the same interest rate that would be applied to any balance on the loan. Therefore, the higher the interest rates, the faster the limit on the line of credit will increase over time.

And, Higher interest rates have created an environment where many

homeowners can earn a higher interest rate on their money, with

little risk, then their mortgage is costing them. This can lead to a

low-risk strategy where borrowers who have the money to pay off their mortgage may benefit from investing their money instead and then using the funds, plus interest, to pay off their mortgage over time.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- For many health insurance providers, Open Enrollment for health insurance in 2023 starts on November 1, 2022. Now may be a good time to review your current coverage and make any necessary changes for the coming year. Things to consider can include your health history, change in marital status, change in dependents, change in job(s) for you and/or your partner, and change in income and tax brackets. The health insurance landscape is constantly changing which can impact your current plan. In addition to comparing plans offered by each of your and your partner’s employer, it is important to compare the premiums relative to the coverage, maximum out of pocket expenses, deductibles, and High Deductible Health Plans and Health Savings Account (HSA) features. If eligible, individuals can contribute up to $3,850 ($7,750 for family coverage) as tax-deductible contributions to an HSA Plan for the tax year 2023.

The Planned Solutions Charity Golf Tournament was postponed this year due to extreme heat. While we were looking forward to golfing and raising money for cancer charities we realized that no one was likely to show up to play in 108-degree heat and

smoke hanging in the air from the fires in El Dorado and Placer counties. Fortunately, we were able to postpone the date to a time when it should be much cooler.

The new details are:

Date: Friday, November 11, 2022

Time: 11:00 am shotgun tee time (moved up due to daylight savings)

With the change in the date, there is still time to sign up to golf or attend the dinner afterward.

The new deadline to RSVP is November 4th. This is the 20th year of the tournament so we are going all out with giveaways, raffle prizes, silent auction items, and other fun activities. We hope to see you there.

Chase Armer's book- Financial Planning Insights is now available at:

www.amazon.com/Financial-Planning…1586894022&sr=8-1

To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

The Personal Finance Review is published and distributed on a biweekly basis by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.

In this episode of the Planned Solutions Incorporated Podcast, The US stock market was unable to resume an upward trend in August as the market stalled out at the 200-day moving average trend line. Now the market is trading between its long-term trendline and the low for the year in mid-June. While these trends offer some indication of the market trends for the remainder of 2022 it is likely that important data such as Federal Reserve policy, economic data, and the upcoming earnings season will have a larger impact.

Also, Inflation proved surprisingly persistent in August as declines in fuel prices were offset by increases in energy utilities, new car prices, and services such as shelter, transportation, and medical services. This may be an indication that inflation is shifting from the goods market largely driven by supply chain issues and costs to the services

sector where higher wages may be forcing companies to raise prices.

And, Individuals who participate in a non-covered pension (a pension

that is earned while not being required to pay Social Security taxes) need to be aware of the Government Pension Offset (GPO) rules. Under the GPO rules, an individual who receives a non-covered pension may have their Social Security widow or widower benefits reduced based on the amount of their pension. In some cases, the Social Security benefits may be eliminated entirely.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- The Planned Solutions Charity Golf Tournament was postponed this year due to extreme heat. While we were looking forward to golfing and raising money for cancer charities we realized that no one was likely to show up to play in 108-degree heat and

smoke hanging in the air from the fires in El Dorado and Placer counties. Fortunately, we were able to postpone the date to a time when it should be much cooler.

The new details are:

Date: Friday, November 11, 2022

Time: 11:00 am shotgun tee time (moved up due to daylight savings)

With the change in the date, there is still time to sign up to golf or attend the dinner afterward.

The new deadline to RSVP is November 4th. This is the 20th year of the tournament so we are going all out with giveaways, raffle prizes, silent auction items, and other fun activities. We hope to see you there.

Chase Armer's book- Financial Planning Insights is now available at:

www.amazon.com/Financial-Planning…1586894022&sr=8-1

To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

The Personal Finance Review is published and distributed on a biweekly basis by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.

In this episode of the Planned Solutions Incorporated Podcast, The recent executive order creating student loan forgiveness of $10,000 or $20,000 for most student loan borrowers has created more questions than it has answered. Over time we should get more information on how this will be administered and the steps that borrowers will need to take to apply. However, there are some changes to student loan repayment programs that have been made which may impact some borrowers and allow them to better plan for their financial future.

Also, Commodity prices often follow predictable patterns as supply and demand shift over time. These cycles can lead to high prices followed by low prices and then high prices again. For example, one needs to look no further than the market for avocados which surged from 2017-2019 due to increased demand. Suppliers responded by

increasing production creating a glut of avocados causing prices to drop.

And, The Federal Reserve’s tough talk on inflation at their Jackson

Hole, WY symposium has caused investors to shift their concern from high inflation to slowing economic growth. This shift in sentiment may have taken Fed officials by surprise as they attempt to find the right balance between fighting inflation while maintaining US economic growth, the so-called “soft landing” scenario.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- The calendar says that Summer is nearing an end but the thermometer here in Sacramento and elsewhere is telling a different story with temperatures exceeding 110 degrees for multiple days in

a row. Naturally, with such extreme heat, we are looking forward to the Fall and hopefully the mild weather that it typically brings.

Fall also is the season for tax planning and Required Minimum Distributions (RMDs) from retirement accounts. This is a good time to meet to review tax strategy, tax withholdings, and discuss ways to reduce or manage tax liabilities before the year ends and many of the options available go away. If you are interested in discussing your tax situation, reviewing your RMD and the tax implications, or discussing strategies such as Roth IRA conversions, please contact us to set up a meeting. Or, let us know that you would like to include tax planning as an agenda topic for your next review meeting.

Chase participated in the Chartered Financial Analyst (CFA) Society of Sacramento’s annual golf tournament. In addition to being a fun day on the links, this tournament is always a great opportunity to network with other financial analysts and “talk shop.” In Sacramento the majority of the CFA Society members work at two of the nation’s largest pension funds, California Employees’ Pension Services (CalPERS) and California State Teachers Retirement Services

(CalSTRS) making it a great opportunity to learn what changes are occurring at these institutions both from an investment and participant services standpoint.

Chase Armer's book- Financial Planning Insights is now available at:

www.amazon.com/Financial-Planning…1586894022&sr=8-1

To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

The Personal Finance Review is published and distributed on a biweekly basis by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.

In this episode of the Planned Solutions Incorporated Podcast, The strong rebound in stock prices over the past two months has partially been due to short sellers reversing their bets against stocks. The short interest, the number of shares borrowed and sold, reached a high in mid-June but has since declined. Often when stock prices increase short sellers will engage in panicked buying as they

rush to buy shares to repay the shares that they borrowed before the share prices increase further.

Also, the meme stock craze (investors buying shares of companies that are thought to be near bankruptcy based on a recommendation from internet message boards) looked like it was running out of

steam this year as the share prices of recently popular meme stocks crashed. However, there appears to be a new round of get-rich-quick

investors distorting stock prices with their high-risk trades

And, The IRS has extended and increased the tax deduction allowed for K-12 educators who spend their own money on classroom supplies. The above-the-line deduction, which is allowed in addition to the standard deduction or itemized deductions, was increased from $250 per educator per year to $300 starting in 2022.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- Planned Solutions has hired a new part-time research analyst to help share the work of updating our ever-expanding list of investment research models. Cern Lee joined the firm on August 15th

and will work on updating investment research and compiling economic and financial data for the investment committee to review. Cern has a background in finance and taxes as well as working

with Customer Relationship Management software both in the US and in her native Thailand before taking some time off to start a family. For the time being, Cern will not have any client-facing responsibilities but will be providing support behind the scenes to improve our client service and expand our investment research capabilities.

Chase participated in the Chartered Financial Analyst (CFA) Society of Sacramento’s annual golf tournament. In addition to being a fun day on the links, this tournament is always a great opportunity to network with other financial analysts and “talk shop.” In Sacramento the majority of the CFA Society members work at two of the nation’s largest pension funds, California Employees’ Pension Services (CalPERS) and California State Teachers Retirement Services

(CalSTRS) making it a great opportunity to learn what changes are occurring at these institutions both from an investment and participant services standpoint.

Please mark your calendars if you will be able to attend.

Date: Friday, September 9th, 2022

Location: Rancho Murieta Country Club – South Course

7000 Alameda Drive

ancho Murieta, CA 95683

Time: 12:30 pm shotgun start with a dinner to follow

All profits go to cancer research and education. You can help by attending the tournament or

donating. Not golfing? Bring friends and attend the dinner.

Chase Armer's book- Financial Planning Insights is now available at:

www.amazon.com/Financial-Planning…1586894022&sr=8-1

To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

The Personal Finance Review is published and distributed on a biweekly basis by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.

In this episode of the Planned Solutions Incorporated Podcast, The US stock market has rebounded from its mid-June lows rallying 13% and cutting the losses for the year in half. However, the market is now nearing a key resistance line defined by the mid-March lows and the late-May/early-June highs. Should the market fail to push through this resistance level the lows from mid-June could be revisited. On the other hand, should the market push through this level the next point of resistance is 10% higher than the current price.

Also, The US economy has likely contracted for two consecutive quarters based on the first estimate for the second quarter of 2022 economic output. However, household spending has remained positive for the first two quarters showing that the consumer remains strong. Meanwhile, government spending has declined as the stimulus spending from early 2021 is compared to current spending levels.

And, Investors typically want to avoid taking distributions from their investment accounts when the markets are down. However, those who own an inherited IRA and are subject to the 10-year distribution rules may benefit from accelerating distributions when investment values are down and then reinvest the money in an after-tax investment account where a recovery in value may be subject to lower tax rates. This will also help free the account owner from the 10-year rule that is related to inherited IRAs.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- The Inflation Reduction Act of 2022 recently passed the Senate and is expected to soon pass the House of Representatives and be signed by the President. While this bill is scaled way back from the original Build Back Better bill it still contains numerous provisions that will take time for us to dig into. The bill includes new taxes, mostly on businesses, that are expected to generate $739 billion in increased tax revenue as well as spending of $433 billion, some of which includes individual tax credits such as those for purchasing electric vehicles.

The bill also includes increased funding for the IRS in an attempt to increase tax collections. Unfortunately, it looks like most of this money will go to tax enforcement (increased audits) rather than IRS customer service which has made it nearly impossible for taxpayers to resolve tax issues. Therefore, taxpayers may face an increase in audits and tax notices with no additional resources to help them get these issues resolved.

Save the date for the Harlan D. Wood Memorial Cancer Charity Golf Tournament which is scheduled for Friday, September 9th, 2022. We hope to build on the strong participation that we

had last year and set a new record regarding funds raised for cancer charities again this year. The course should be in good shape and the silent auction items will be great again this year. In

addition, we are going to switch things up a bit and play the South Course this year, which plays a little easier but is every bit as good as the North Course for great views and tricky angles to the greens.

Please mark your calendars if you will be able to attend.

Date: Friday, September 9th, 2022

Location: Rancho Murieta Country Club – South Course

7000 Alameda Drive

ancho Murieta, CA 95683

Time: 12:30 pm shotgun start with a dinner to follow

All profits go to cancer research and education. You can help by attending the tournament or

donating. Not golfing? Bring friends and attend the dinner.

Chase Armer's book- Financial Planning Insights is now available at:

www.amazon.com/Financial-Planning…1586894022&sr=8-1

To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

The Personal Finance Review is published and distributed on a biweekly basis by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.

In this episode of the Planned Solutions Incorporated Podcast, One of the themes of the stock market in 2022 has been the outperformance of value stocks over growth stocks. However, growth stocks have demonstrated a tendency to outperform value stacks when prices are trending upward as they have over the past six weeks. This may be a sign that growth stocks are more likely to lead

market returns should the stock market recovery continue.

Also, One of the themes of the stock market in 2022 has been

the outperformance of value stocks over growth stocks. However, growth stocks have demonstrated a tendency to outperform value stacks when prices are trending upward as they have over the past six weeks. This may be a sign that growth stocks are more likely to lead market returns should the stock market recovery continue.

And, Stock lending is now being offered to non-institutional

investors as an enticement to use certain brokerage firms. Some

investors are attracted to the idea of lending their stock holdings to

other investors in order to earn a small amount of income on the loan. However, there are important risks as well as tax

implications that investors need to consider before engaging in these more advanced investment strategies.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- Save the date for the Harlan D. Wood Memorial Cancer Charity Golf Tournament which is scheduled for Friday, September 9th, 2022. We hope to build on the strong participation that we

had last year and set a new record regarding funds raised for cancer charities again this year. The course should be in good shape and the silent auction items will be great again this year. In

addition, we are going to switch things up a bit and play the South Course this year, which plays a little easier but is every bit as good as the North Course for great views and tricky angles to the greens.

Please mark your calendars if you will be able to attend.

Date: Friday, September 9th, 2022

Location: Rancho Murieta Country Club – South Course

7000 Alameda Drive

ancho Murieta, CA 95683

Time: 12:30 pm shotgun start with a dinner to follow

All profits go to cancer research and education. You can help by attending the tournament or

donating. Not golfing? Bring friends and attend the dinner.

Chase Armer's book- Financial Planning Insights is now available at:

www.amazon.com/Financial-Planning…1586894022&sr=8-1

To subscribe to the Personal Finance Review (the written form of all the content we discuss on the podcast) please e-mail [email protected]

The Personal Finance Review is published and distributed on a biweekly basis by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.