Planned Solutions

On this episode of the Planned Solutions Financial Review Podcast we discuss, The foundation of financial planning is the day-to-day cash flow decisions that determine the financial resources that can be committed to acheiving long-term goals. Too often the financial pressures of daily life can make it difficult to implement the good spending and saving habits that we need to fund long-term goals and manage the risks of financial downturns. Therefore, it is advisable to create a structure around cash flow management that may increase the likelihood of long-term financial success.

And, Earnings season is under way and already several large companies have reported earnings that beat Wall Street expectations. However, it is important to note that earnings expectations at the start of earnings season were quite low making it easier for companies to beat their earnings targets. So far this means earnings season is on track for slow growth rather than the decline in earnings that was expected before earnings season began.

Also, Social Security benefits are indexed for inflation so that each year Social Security benefits increase based on an inflation calculation. In 2020 the Cost-of-Living Adjustment (COLA) for Social Security benefits will be 1.6%, down from 2.8% in 2019 due to lower national inflation data. The Social Security wage base and the earnings limit for workers drawing Social Security benefits before they reach their full retirement age also increased for 2020.

Planned Solutions Office Bulletin Board -

Chase, Daryl, and Joel attended a bowling fundraiser to support Junior Achievement. Junior Achievement is a charity that supports financial education in schools by creating and distributing lesson plans, finding volunteers to teach or mentor students as they go through the material, and promoting teacher education when it comes to financial topics.

Chase and Daryl attended a Financial Planning Association (FPA) of Northern California presentation focused on how to better help clients with cash flow planning.

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.

ADDRESS: PHONE:

1130 Iron Point Road, Suite 170 (916) 361-0100

Folsom, CA 95630 (800) 750-2111

E-MAIL: FAX:

[email protected] (916) 361-0191

WEB SITE:

www.PlannedSolutions.com

#finance #invest #investment #stocks #interestrate #bonds

On this episode of the Planned Solutions Financial Review Podcast we discuss, The S&P 500 second quarter earnings results are now complete and the start of the third quarter earnings season is around the corner. The second quarter results were disappointing coming in below the first quarter number and only 2.6% higher than the second quarter 2018 number. This has put increased emphasis on the third quarter earnings reports as investors attempt to determine if the weaker results are the start of a trend or a short-term anomaly.

And, When a mutual fund sells investments with a gain they are required to distribute the bulk of the gain to shareholders and the tax is paid at the individual level. These payments typically occur near the end of the year and can be a tax planning opportunity for individuals who hold mutual funds in non-retirement accounts.

Also, As we near the end of the year, this is a great time to check your retirement plan contributions to make sure that you will have contributed the maximum by year end. Listed are the maximum contributions limits for 2019. Many employer-sponsored retirement plans only allow employees to contribute compensation earned up to December 31st. Meanwhile, traditional and Roth IRAs allow contributions up until April 15th or when the tax return for the year is filed, whichever is sooner.

On October 1st Charles Schwab and Company announced that it would be eliminating its trading fees for many online stock and Exchange Traded Fund (ETF) trades starting on October 7th, 2019. This fee reduction will apply to Planned Solutions’ contract with Schwab greatly expanding the number of investments that we will be able to trade at no cost.

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.

ADDRESS: PHONE:

1130 Iron Point Road, Suite 170 (916) 361-0100

Folsom, CA 95630 (800) 750-2111

E-MAIL: FAX:

[email protected] (916) 361-0191

WEB SITE:

www.PlannedSolutions.com

#finance #invest #investment #stocks #interestrate #bonds

On this episode of the Planned Solutions Financial Review Podcast we discuss, The Federal Reserve lowered interest rates for the second time this year in September. While this move was widely expected there seems to be some decent among Fed officials regarding the path forward. Meanwhile, Chairman Powell has signaled that the September cut is likely to the last in 2019 and possibly for some time. The opposing views may make it difficult for the Chairman to gain enough support for any additional moves unless additional data causes the committee members’ outlooks to change.

And, The Backdoor Roth IRA strategy has become popular among high income earners. Often the challenge to this strategy is finding a way to get rid of IRA assets so that the IRA can be used as a conduit to make Roth IRA conversions. One way to do this is a Reverse Rollover. This involves moving IRA assets into an employer sponsored retirement plan.

Also, The average cost of a health insurance family plan now exceeds $20,000 per year, a 5% increase from 2019. The high cost of health insurance makes it an important consideration when considering job offers and comparing compensation pack-ages in which health insurance may be covered, partially covered, or excluded. It also makes the cost of health insurance premiums an important consideration for anyone who desires to retire before age 65 when they become eligible for Medicare.

Several members of the Planned Solutions’ Team played in a number of charity golf tournaments this month. We are so appreciative of those who support our charity golf tournament, we try to do our part to support other worthy causes as well.

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.

ADDRESS: PHONE:

1130 Iron Point Road, Suite 170 (916) 361-0100

Folsom, CA 95630 (800) 750-2111

E-MAIL: FAX:

[email protected] (916) 361-0191

WEB SITE:

www.PlannedSolutions.com

#finance #invest #investment #stocks #interestrate #bonds

On this episode of the Planned Solutions Financial Review Podcast we discuss, US manufacturing activity declined in August. This is the first such decline in nearly three years. The largest decline was in new export orders, a sign that the trade war is having a negative impact on US manufacturers. Many foreign manufacturers are also feeling the heat as industrial production, global trade, and capital spending have slumped in many countries. However, the US services sector continues to report strong growth. The question is whether the services sector will be able to offset the weakness in the manufacturing sector.

And, The University of Michigan Index of Consumer Sentiment declined to its lowest level in nearly three years in August. Both the Current Economic Conditions Index and the Index of Consumer Expectations also declined sharply. This could be a sign that consumers are becoming more and more pessimistic about the future which may lead to weaker consumer spending.

Also, There has been a sharp increase in the number of trucking companies that have declared bankruptcy this year. The trade war has caused freight volumes to unexpectedly decline forcing some companies to miss debt payments. Dow Theory states that the performance of transportation companies may be a leading indicator of the health of the overall US economy. In this case, transportation companies appear to be signaling an economic slowdown.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- The 17th annual “Harlan D. Wood Cancer Charity Golf Tournament” was, once again, a success. A big “Thank You” to those of who donated to the cancer charity of your choice, played golf, attended the BBQ, or bid on items at the silent auction. Due to your generosity, our running total for the amount raised since we started the golf tournament is now just shy of $127,000! We hope that our combined efforts can make a small difference in the fight against cancer.

Chase contributed to the mid-year update of the Sacramento Business Review (SBR). The updated publication is available at www.sacbusinessreview.com.

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.

ADDRESS: PHONE:

1130 Iron Point Road, Suite 170 (916) 361-0100

Folsom, CA 95630 (800) 750-2111

E-MAIL: FAX:

[email protected] (916) 361-0191

WEB SITE:

www.PlannedSolutions.com

#finance #invest #investment #stocks #interestrate #bonds

On this episode of the Planned Solutions Financial Review Podcast we discuss, Corporate America seems to be tightening the purse strings in response to economic and market uncertainties. The pace of capital investments and corporate stock buybacks have decreased sharply in 2019 as companies seek to conserve cash. In addition, corporate debt has increased sharply since 2008 forcing some companies to prioritize conserving cash and/or debt repayment over other uses.

And, There may be a member of your family that is left out of your estate plan: your pet. Many people may want to create a plan for their pets should they no longer be able to take care of them. This includes insuring that they have a good home and that the income needed to maintain the pet’s standard of living is provided. In this case, the pet should be included in an estate plan or arrangements should be made for the pet’s care.

Also, The ultra-short end of the US government yield curve has been inverted for some time with 3-month bonds offering higher yields than 10-year bonds. This has led to fears that a recession may be on the horizon. Recently, the 2-year bond also inverted versus the 10-year. This has increased recession concerns as it may be a sign that investors are becoming even more pessimistic about the pace of future economic growth.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board-

Shannon and Candice attended a Schwab SOLUTIONS workshop in San Francisco. Schwab offers these one-day conferences to help advisors learn how to increase their operational efficiencies by better utilizing the technological tools and resources that Schwab offers. It is also an opportunity to meet some of the Schwab support staff that we interact with on a regular basis in person. This is a part of Planned Solutions’ efforts to make sure that we can process requests as quickly and accurately as possible.

Planned Solutions’ office will be closed on Friday, September 6th for our annual cancer charity golf tournament. If you have an emergency, please leave a voicemail for Katie as she will be checking her voicemail throughout the day.

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.

ADDRESS: PHONE:

1130 Iron Point Road, Suite 170 (916) 361-0100

Folsom, CA 95630 (800) 750-2111

E-MAIL: FAX:

[email protected] (916) 361-0191

WEB SITE:

www.PlannedSolutions.com

#finance #invest #investment #stocks #interestrate #bonds

On this episode of the Planned Solutions Financial Review Podcast we discuss, Household debt in the US is at an all-time high, more than $1 trillion more than the previous high in 2008. This has led to the first annual increase in bankruptcies in over eight years. Unlike the last recession these bankruptcies are more likely to be triggered by excessive consumer debt (student loans, auto loans, and credit card balances) rather than mortgage debt. Bankruptcies have also been more likely to impact retirees.

And, The SECURE Act, which recently passed the House of Representatives and has been sent to the Senate, includes changes to the rules related to inherited IRAs for non-spouse beneficiaries. Specifically, the new rules would require that non-spouse beneficiaries distribute 100% of the account balance within 10 years of the original owner’s death which could lead to major financial planning and tax implications.

Also, Most people understand that they should reduce their investment risk as they get closer to retirement or the point where they will start taking income from their accounts. This is also true when it comes to educational accounts. It is important to reduce the investment risk of educational accounts as the beneficiary gets closer to the age when they will need to fund higher educational expenses. If this is neglected educational accounts could experience a sharp decline in value right as the money is needed to fund educational goals.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board-

The Harlan D. Wood Memorial Cancer Charity Golf Tournament is just three months away. We hope you will sign up to attend or support the cause by donating to a cancer charity of your choice.

Date: September 6th, 2019

Location: Rancho Murieta Country Club – North Course

7000 Alameda Drive

Rancho Murieta, CA 95683

Time: 9am shotgun start, 1:30 barbecue

All profits go to cancer research and education. You can help by attending the tournament or donating. Not golfing? Bring friends and attend the BBQ.

To subscribe or unsubscribe 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.

ADDRESS: PHONE:

1130 Iron Point Road, Suite 170 (916) 361-0100

Folsom, CA 95630 (800) 750-2111

E-MAIL: FAX:

[email protected] (916) 361-0191

WEB SITE:

www.PlannedSolutions.com

#finance #invest #investment #stocks #interestrate #bonds

On this episode of the Planned Solutions Financial Review Podcast we discuss, The second quarter US economic growth rate appears to have struck a balance between the fears that growth is slowing too quickly and the fears that growth will be strong enough that the Federal Reserve will not cut interest rates later this month. Household and government spending were the bright spots in the report while investment spending and trade detracted from growth.

And, The concern about the underfunded status of many private and public pensions is mounting. Many multi-employer pension plans are reporting large shortfalls which is putting the entire national pension insurance system at risk. Absent some government support, pension recipients may see their pension benefits reduced substantially due to a lack of funds to support the payments.

Also,With interest rates moving lower there have been several articles in the news as well as advertisements encouraging homeowners to refinance their mortgages. While this may be a good strategy to reduce the long-term cost of a mortgage loan it is important that homeowners factor in the cost of refinancing when attempting to determine the pros and cons of replacing their existing mortgage.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- Planned Solutions had an in-service day in which we took some time out from daily tasks to focus on long-term business planning.

Chase attended a presentation at the Financial Planning Association of Northern California monthly meeting. The presentation focused on ways to communicate more effectively with people from different cultures.

The Harlan D. Wood Memorial Cancer Charity Golf Tournament is just three months away. We hope you will sign up to attend or support the cause by donating to a cancer charity of your choice.

Date: September 6th, 2019

Location: Rancho Murieta Country Club – North Course

7000 Alameda Drive

Rancho Murieta, CA 95683

Time: 9am shotgun start, 1:30 barbecue

All profits go to cancer research and education. You can help by attending the tournament or donating. Not golfing? Bring friends and attend the BBQ.

To subscribe or unsubscribe 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.

ADDRESS: PHONE:

1130 Iron Point Road, Suite 170 (916) 361-0100

Folsom, CA 95630 (800) 750-2111

E-MAIL: FAX:

[email protected] (916) 361-0191

WEB SITE:

www.PlannedSolutions.com

#finance #invest #investment #stocks #interestrate #bonds

On this episode of the Planned Solutions Financial Review Podcast we discuss, The SECURE Act has passed the House of Representatives and is expected to be taken up by the

Senate. The bill would make a number of changes to

person finance laws and regulations which may have

an impact on financial planning now and in the future.

And, Earthquake insurance is not covered by traditional

homeowner’s insurance policies. Instead,

protection against earthquake damage requires a

separate policy that comes with a number of limits

and details that differ from those of traditional

policies. These factors can make earthquake

insurance quite expensive but my be the only

financial recourse an individual may have if their

property is damaged by an earthquake.

Also,Under the IRS gift tax regime

every individual can gift up to

$11.4 million (2019 limit) during

their lifetime without paying gift

tax. However, gifts in excess of

$15,000 per year to any one

individual still requires that the

person giving the gift file a gift

tax return, even if no tax will be

due. However, there are some

exceptions which with careful

planning may allow an

individual to make gifts in excess

of the limit while still avoiding

the administrative time and cost

of filing a gift tax return.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- The Harlan D. Wood Memorial Cancer Charity Golf Tournament is just three months away. We hope you will sign up to attend or support the cause by donating to a cancer charity of your choice.

Date: September 6th, 2019

Location: Rancho Murieta Country Club – North Course

7000 Alameda Drive

Rancho Murieta, CA 95683

Time: 9am shotgun start, 1:30 barbecue

All profits go to cancer research and education. You can help by attending the tournament or donating. Not golfing? Bring friends and attend the BBQ.

To subscribe or unsubscribe 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.

ADDRESS: PHONE:

1130 Iron Point Road, Suite 170 (916) 361-0100

Folsom, CA 95630 (800) 750-2111

E-MAIL: FAX:

[email protected] (916) 361-0191

WEB SITE:

www.PlannedSolutions.com

#finance #invest #investment #stocks #interestrate #bonds

On this episode of the Planned Solutions Financial Review Podcast we discuss, The 2017 Tax Act gave the US stock market a boost as corporate taxes were reduced and after-tax earnings increased. Today the Tax Act continues to support stock prices in the form of corporate stock buybacks as corporations have been able to access money that was stashed overseas to return it to shareholders. The pace of these buybacks will be more and more important in the future as they have become an important source of demand for stocks.

And, Margin debt, the amount of money investors borrowed using their investments as collateral, has declined sharply since 2018 and has been flat in 2019 despite the stock market recovery. This may be a sign that investor’s confidence that the current market cycle will continue is declining adding yet another factor that should be monitored closely for signs that the stock rally may run out of steam.

Also,Interest rates, and thus Mortgage rates, are once again at ultra-low levels when compared to long-term historical norms. In some cases, mortgage rates are once again below 4%. These low rates make this a good time for homeowners to review their mortgage rates and determine if they will benefit from refinancing to lower their rates. Lower mortgage rates are even more attractive for many people given that a large number of taxpayers are no longer benefiting from the mortgage interest tax deduction.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- Chase has been the President of the Rancho Cordova Rotary Charitable Foundation for the past four years. The Foundation provides scholarships to high school students, grants to local organizations seeking to fund community projects, and in-kind donations to the local food locker. Recently, the Foundation announced that it will be funding five grants this year as a part of its Home Town Hero Grant totaling more than $11,000 in total.

The Harlan D. Wood Memorial Cancer Charity Golf Tournament is just three months away. We hope you will sign up to attend or support the cause by donating to a cancer charity of your choice.

Date: September 6th, 2019

Location: Rancho Murieta Country Club – North Course

7000 Alameda Drive

Rancho Murieta, CA 95683

Time: 9am shotgun start, 1:30 barbecue

All profits go to cancer research and education. You can help by attending the tournament or donating. Not golfing? Bring friends and attend the BBQ.

To subscribe or unsubscribe 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.

ADDRESS: PHONE:

1130 Iron Point Road, Suite 170 (916) 361-0100

Folsom, CA 95630 (800) 750-2111

E-MAIL: FAX:

[email protected] (916) 361-0191

WEB SITE:

www.PlannedSolutions.com

#finance #invest #investment #stocks #interestrate #bonds

On this episode of the Planned Solutions Financial Review Podcast we discuss, how the trade war has become an interest rate war. Many countries have responded to US tariffs by decreasing interest rates in order to reduce the value of their currency. A lower currency value makes their exports less expensive which can help to offset the cost of the tariffs. Meanwhile, trade deficits and surpluses tend to persist. This is the reason trade wars escalate and can last many years as one country acts and their trading partners respond accordingly.

And, Charitable contributions dipped by 1.7% in 2018. Some speculated that the changes in the tax law would cause charitable giving to drop sharply as many taxpayers would no longer receive a tax benefit for making charitable contributions. However, the decline is fairly small, especially given that global stock markets declined in 2018 which historically has been correlated with a decline in charitable giving.

Also,A survey of professional stock fund managers shows that they are the most pessimistic that they have been since the financial crisis. Approximately one-third of fund managers are underweight equities and the average cash holding has increased to 5.6% in actively managed stock funds. This may be an early sign that the fear of an escalating trade war or the risk of a recession on the horizon is causing investors to pull back on their stock holdings.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- Chase has been the President of the Rancho Cordova Rotary Charitable Foundation for the past four years. The Foundation provides scholarships to high school students, grants to local organizations seeking to fund community projects, and in-kind donations to the local food locker. Recently, the Foundation announced that it will be funding five grants this year as a part of its Home Town Hero Grant totaling more than $11,000 in total.

The Harlan D. Wood Memorial Cancer Charity Golf Tournament is just three months away. We hope you will sign up to attend or support the cause by donating to a cancer charity of your choice.

Date: September 6th, 2019

Location: Rancho Murieta Country Club – North Course

7000 Alameda Drive

Rancho Murieta, CA 95683

Time: 9am shotgun start, 1:30 barbecue

All profits go to cancer research and education. You can help by attending the tournament or donating. Not golfing? Bring friends and attend the BBQ.

To subscribe or unsubscribe 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.

ADDRESS: PHONE:

1130 Iron Point Road, Suite 170 (916) 361-0100

Folsom, CA 95630 (800) 750-2111

E-MAIL: FAX:

[email protected] (916) 361-0191

WEB SITE:

www.PlannedSolutions.com

#finance #invest #investment #stocks #interestrate #bonds