Planned Solutions

In this episode of the Planned Solutions Incorporated Podcast, Student loan payments and interest charges are set to start once again on September 1st. However, the new SAVE Plan has expanded the rules for income-based student loan payments to reduce the payment amount for many borrowers. The definition of low-income borrowers has been expanded so more borrowers will qualify for zero payments under the new plan. In addition, those with income over the zero-payment threshold will be required to pay just 5% of their income rather than the 10% required previously.

Also, Utility stocks used to be considered low-risk investments that offered good income yields. However, times have changed, and many utility stocks face elevated risks due to high debt ratios and increased legal risks while the dividend yields have not kept pace with rising bond yields. This makes utilities a risker investment category that should be analyzed carefully before investing.

As well, In the past, employer-sponsored retirement plans only offered one option: tax-deducible traditional contributions. However, the ROTH provisions that were previously only allowed for ROTH IRAs were expanded to some employer-sponsored retirement plans, such as 457s/401ks/403bs several years ago. Now, the ROTH contribution option has been further expanded to employer-sponsored retirement plans designed for small businesses. This creates the option to add a ROTH provision to SIMPLE IRAs and SEP-IRAs.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- It is official, We recently sent out the registration forms for our annual charity golf tournament. We are busy ordering the giveaways for the tournament and gathering donations for the silent

auction. We hope you will be able to attend (either golf or attend the dinner) or donate to a cancer charity to support our efforts.

The Planned Solutions Cancer Memorial Charity Golf Tournament

Date: October 13, 2023

Location: Rancho Murieta Country Club – North Course

7000 Alameda Drive

Rancho Murieta, CA 95683

Time: 1:00 pm shotgun start, 5:30 pm dinner

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:

https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb

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 biweekly 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, Central banks have increased interest rates around the globe in an effort to bring down inflation. Now the Federal Reserve may be at the end, or getting close to the end, of its interest rate hiking cycle. However, the impact of higher long-term interest rates is not fully reflected in the financial or economic data, which will only occur when low-interest rate debt must be paid off or rolled over at higher interest rates. This impact will depend on debt management at the business and household level and the future path of interest rates.

Also, Long-term interest rates have moved up recently as investors fear that large government deficits will require significant borrowing in the coming months. When government borrowing increases it often pushes up interest rates as the government must offer to pay higher rates to attract the funds it needs to borrow. This can also push out private borrowers as they are unable to compete with the

government for funds or are unable to match the high-interest rates that the government will pay.

New rules take effect in 2024 that will impact high-income earners who are age 50 or older and making catch-up retirement

contributions. Effective January 1st, people who earned more than

$145,000 in the prior year will be required to make retirement

catch-up contributions to a Roth 401k. This may be an issue if the

employer 401k does not offer a Roth option as it would disallow the catch-up contributions. In addition, Roth contributions are not tax deductible so it could lead to an increased tax bill.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- The Financial Crimes Enforcement Network (FinCEN) recently issued a nationwide alert regarding a surge in check fraud schemes targeting the US. Check fraud has increased by 84% so

far in 2023 despite a decrease in check usage. In many cases, checks are stolen from the US mail and are altered to change the dollar amount and the recipient.

It is official, We recently sent out the registration forms for our annual charity golf tournament. We are busy ordering the giveaways for the tournament and gathering donations for the silent

auction. We hope you will be able to attend (either golf or attend the dinner) or donate to a cancer charity to support our efforts.

The Planned Solutions Cancer Memorial Charity Golf Tournament

Date: October 13, 2023

Location: Rancho Murieta Country Club – North Course

7000 Alameda Drive

Rancho Murieta, CA 95683

Time: 1:00 pm shotgun start, 5:30 pm dinner

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:

https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb

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 biweekly 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, There are a wide variety of employee benefits offered by different employers. In many cases, the value of these benefits may add up to a large percentage of the employee’s overall compensation. Therefore, it is important to review these benefits as well as their tax

benefits or consequences to extract as much value as possible to help fund financial planning goals.

Also, In the past, distributions from a 529 plan that were owned by someone other than the student’s parent were considered income of the student for federal financial aid purposes. In many cases, this could reduce or eliminate the student’s eligibility for federal financial aid. Fortunately, starting in the 2024-2025 school year this rule will be changed so that distributions from a 529 plan owned by a relative other than a parent will not have an adverse impact.

And, High demand for travel abroad has created delays in the processing of new US passport applications. Under normal circumstances, a new application should be processed in 10-13 weeks. However, many are finding that it could take much longer and even expedited applications are taking nearly three months. Therefore, it is

important to plan ahead when making travel plans if a new passport will be required.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- The stock market has posted strong gains in the first half of 2023. However, the gains have been lumpy in that some areas of the stock market have done very well, while others have lagged the

overall market average. When this happens the areas of the market that outperform often become a larger percentage of an account’s value than was originally designed or desired. Therefore, it is

important to rebalance these accounts periodically to bring the allocation percentages back in-line with the target. For example, if a 401k plan investment performance has been uneven this year, with growth stocks increasing at a faster pace than value stocks, it may be a good time to rebalance the holdings by taking profits in growth stocks and allocating the proceeds to value stocks.

It is official, we recently sent out the registration forms for our annual charity golf tournament.

We are busy ordering the giveaways for the tournament and gathering donations for the silent

auction. We hope you will be able to attend (either golf or attend the dinner) or donate to a cancer

charity to support our efforts.

The Planned Solutions Cancer Memorial Charity Golf Tournament

Date: October 13, 2023

Location: Rancho Murieta Country Club – North Course

7000 Alameda Drive

Rancho Murieta, CA 95683

Time: 1:00pm shotgun start, 5:30pm dinner

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:

https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb

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 biweekly 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 rate of inflation declined by two-thirds from a year ago when it peaked at 9.1%. The June inflation rate was just 3.0%, a 1.0% decline from May. The decrease in prices was led by a large drop in energy prices, while food and shelter inflation remained persistently high.

However, the average inflation rate for many households that own their home, and therefore are insulated from the increase in shelter prices, is likely below the Federal Reserve’s target of 2.0%.

Also, A new rule takes effect in 2024 that will allow unused funds in a 529 college savings plan to be transferred to a Roth IRA in the name of the 529 plan beneficiary. This is a great opportunity for college savers who do not use the funds in a 529 plan to fund college expenses or have funds left over after college. However, there are a number of detailed provisions in the law that must be followed in order to qualify for the transfer.

And, This is expected to be the biggest travel season in years. As a

result, travelers are dealing with larger crowds, limited lodging, and dining options, and increased add-on fees. Many of these fees are an attempt by hotels and restaurants to keep their list prices low to compete with other options while still boosting revenues with additional costs. Therefore, it is important to read the fine print and understand the extra fees that may apply when making travel plans this summer.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- It is official, we recently sent out the registration forms for our annual charity golf tournament.

We are busy ordering the giveaways for the tournament and gathering donations for the silent

auction. We hope you will be able to attend (either golf or attend the dinner) or donate to a cancer

charity to support our efforts.

The Planned Solutions Cancer Memorial Charity Golf Tournament

Date: October 13, 2023

Location: Rancho Murieta Country Club – North Course

7000 Alameda Drive

Rancho Murieta, CA 95683

Time: 1:00pm shotgun start, 5:30pm dinner

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:

https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb

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 biweekly 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 yield curve is currently inverted meaning short-term term deposits are paying a higher interest rate than longer-term deposits. So, why would savers commit to longer-term deposits at a lower interest rate? It all comes down to the expectation for the future path of interest rates. If rates are expected to fall in the future it may be better to lock in longer-term rates today rather than roll over short-term deposits which may pay more today but could pay lower interest in the future.

Also, A year ago, Series I Savings Bonds with no fixed rate and a high inflation rate were popular investments. Since then, the inflation rate on these bonds has declined sharply while newer bonds are now paying a fixed rate in addition to the inflation rate. So over the long term, the bonds purchased when inflation rates were high will likely yield less than the bonds issued before and after the frenzy will likely offer higher returns.

And, Medicare premiums are means-tested meaning higher-income individuals may pay higher Medicare premiums. This is called the Income Related Monthly Adjustment Amount (IRMAA) which is based on the income from two years prior to the current year. However, if an individual had a qualifying life-changing event that caused their income to change may petition the Social Security Admin to have their IRMAA amount reduced based on their change in income.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- As a result of the storms that hit California earlier this year, most counties in California were designated federally declared disaster areas. As a result, most CA residents were granted an automatic extension to file and pay their 2022 tax returns and balances through October 16, 2023. However, many taxpayers who have elected to take advantage of this extension have received past-due notices from the IRS. The problem is that the IRS computer system was not updated to reflect the extension, so the IRA has automatically mailed notices of balances due including to individuals who were eligible for the automatic extension. However, the IRS has reassured California taxpayers covered by the disaster declaration that they continue to have an automatic extension until later this year to file and pay their taxes. So if you intend to pay your taxes owed in October but get an IRS notice to pay the balance due now you can disregard the notice and delay your payment to later in the year as long as it is paid by October 16th

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

https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb

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 biweekly 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 S& P 500 earnings season is right around the corner. This could be a key earnings season for the stock market following the sharp rebound in earnings reported in the first quarter. Should earnings continue to rebound, and possibly exceed their peak from the fourth quarter of 2021, it may support the stock market rally that began in October 2021. The key sectors will likely be financials and technology given their large contributions to S& P 500 earnings.

Also, All money market accounts are not equivalent to each other. This is especially true when comparing bank money market deposit accounts with investment money market funds. For example, bank money market accounts are typically FDIC insured whereas investment money market funds are not. This does create an additional risk that savers should be aware of when choosing where to hold their savings.

And, Higher mortgage rates have made homeownership less affordable in the US. However, despite a 66% increase in mortgage rates and a 33% increase in the mortgage payment required for the median home, the increase only represents 5% of the median household income. However, the amount of income required to

qualify for a mortgage on the median home value has increased by 33% which will make it more difficult for borrowers to qualify for a loan.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- All of us at Planned Solutions would hope you had an enjoyable, safe, and happy Fourth of July holiday as we celebrated the anniversary of the original thirteen colonies' Declaration of Independence from Britain. For those looking to expand their historical knowledge of the American Revolution, we would recommend the book Rebels at Sea, Privateering in the American Revolution. The book highlights the importance of individual investors and private sailors in supporting the revolutionary army and supplying the nation with the goods needed to maintain commerce and limit shortages while the nation’s largest cities were under occupation. It shows how so many individuals contributed to the revolution and the importance of economic victories in addition to

those won on the battlefield. The book also highlights how many individuals became wealthy through sponsoring privateers during the war and was then an important source of investment funds for economic development and to support the nearly bankrupt Congress after the war ended.

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

https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb

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 biweekly 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, Summer jobs for teens are often low-level and low paying. However, they can be an important springboard that can be used to start a career on the right track and jumpstart a financial plan. Therefore, it

is important to be prepared to take advantage of the career skills and learning opportunities that a part-time job may offer.

Also, Oil prices have declined sharply in the past 12 months. After peaking at more than $120 in June 2022, oil prices have since trended downward falling below the $70 price point in June 2023. In

addition, it appears that oil prices may continue to decline as suppliers have ramped up production following the pandemic which could possibly return prices to their pre-COVID level of $55 per barrel.

And, The US debt ceiling debate is finally over but investors may

not even take notice as they were not deceived by the purported

danger to begin with. Despite the economic and financial brinks manship, the US stock market remained near its highs for the year and the volatility index(VIX), a common fear gauge, never showed signs of stress. It appears that investors have panic fatigue when it comes to the debt ceiling having been told it would result in a disaster that never materialized too many times in the past.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board-It is that time of year again … charity golf tournament season. It is the time of year when we can get outside, enjoy the warm weather, have fun, and support worthwhile causes. With that said we

hope you will join us again this year in playing golf and raising money for cancer charities.

The Harlan D. Wood Memorial Cancer Charity Golf Tournament is

planned again this year. We hope you will sign up to attend or support the cause by donating to a cancer charity of your choice.

Date: October 13th, 2023

Location: Rancho Murieta Country Club – South Course

7000 Alameda Drive

Rancho Murieta, CA 95683

Time: 9 am 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.

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

https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb

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 biweekly 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, We decided to outsource our lead article to Google Bard this week. Google Bard is Google’s Artificial Intelligence Chatbot. We found that the article generated was mostly accurate, although not completely (see notation in the article), which raises concerns about misinformation or false information when relying on artificial intelligence. This highlights the need to audit any information received from these models to ensure their accuracy

Also, Taxpayers often focus on income taxes, but there are other types of tax that can be just as important when it comes to tax planning and tax savings. Employment taxes (Social Security and Medicare taxes) can exceed 15% of income when both the employee and employer contributions are considered. Therefore, employment tax planning should not be overlooked when engaging in tax planning.

And, The tax code offers several small tax credits for certain energy-efficient home improvements. However, these credits can be complicated in terms of which projects qualify for the tax credits. In addition, there are annual and lifetime limits which differ based on the type of credit. Therefore, it is important to consult with a knowledgeable tax professional to determine the amount of the tax credit and how to meet the requirements for documentation to be able to claim the credit.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board-Following the COVID travel restrictions and the economies around the globe reopening, the summer of 2023 is expected to be a record travel season. This also appears to be the case at Planned Solutions. Several members of the Planned Solutions team have planned, or have recently returned from, vacations that are a bit longer than average. Naturally, we have taken steps to make sure that we have sufficient coverage so that the high-quality service levels that we pride ourselves on do not suffer, especially tasks that are time-sensitive or emergency issues. Even when on vacation our team members take steps to be accessible by phone or e-mail in case

an emergency arises, or they are needed to offer some insight on an issue. However, time differences and the availability of internet access while traveling can cause some delays in the ability to respond as quickly as normal. Therefore, there may be some cases where some non-time-sensitive issues may be delayed a little bit longer than would be normal. We ask for your patience and understanding.

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

https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb

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 biweekly 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, Technology stocks have outperformed other sectors by a wide margin so far in 2023, helping to offset the large losses in Technology stocks in 2022. This has caused some investors to allocate a large percentage of their stock portfolios into this single sect or which may result in higher risks than they realize. Instead, investors may be better served by being patient and allowing time for the market breadth (number of shares increasing in value)to improve.

Also, Banking turmoil in the US which began in March has continued to negatively impact the US financial system. However, the issues have been fairly contained within the sphere of smaller regional banks. Meanwhile, the Financial Stress Index reported by the Federal Reserve shows that financial stress spiked in March but has since improved sharply.

And, One of the key decisions when creating a trust is who should be named as the successor trustee. Often those who set up a trust will appoint a friend or family member to be their successor trustee, but this can create unwanted stress and legal liability for the appointed trustees. Another option is to appoint a professional trustee or a corporate trust office as the trustee.

Plus a look at the Planned Solutions Incorporated Office Bulletin Board-Everyone at Planned Solutions recently completed training on how to spot and avoid the financial exploitation of senior clients. Unfortunately, financial crimes against those aged 65 or older have been increasing in the US as criminals find more and more creative ways to try to access the funds of retirees.

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

https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb

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 biweekly 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 economy grew just 1.1% in the first quarter, a lower growth rate than the prior two quarters. However, the report had a lot of positives with household spending up 3.7% and government spending increasing 4.7%. Meanwhile, investment expenditures were a drag

on growth, down 12.5%, likely due to increased interest rates and the uncertainty of the current business environment.

Also, US consumer sentiment is often cited as a leading economic indicator as it tends to change course before the stock market. In 2021 it peaked six months before the US stock market and in 2022 it

bottomed four months before the market low. Today, consumer sentiment is signaling support for the current market recovery as the index continues to trend upward at 27% above its low from October

And, Term life insurance policies are often very cost-effective but do

come with a downside, unlike permanent insurance, that the policy term will end at some point in the future. However, some term policies have features that allow them to be continued, at a higher premium, or converted into a permanent insurance policy, also at a higher premium, for those who need to continue their coverage.

However, these provisions are often complex and therefore should be considered carefully before making an election

Plus a look at the Planned Solutions Incorporated Office Bulletin Board- Last newsletter we expressed our support for the Sacramento Kings who were in the NBA playoffs for the first time in seventeen years. Since then, the Kings lost in the last game of a best of seven series to the defending champions, the Golden State Warriors. Despite the disappointing result, this was a great season to be a Kings fan. After years near the bottom of the standings, the Kings finished third in the Western Conference regular season standings and had a good showing in the playoffs taking the defending champions down to the wire, only falling short in the final game of the series. As special thanks goes out to the Kings coach, Mike Brown, who not only won NBA Coach of the Year but also demonstrated how a change in leadership and a new culture can transform an organization from mediocrity to excellence. We are looking forward to seeing how Coach Brown and his players are able to build on their

recent success next year.

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

https://www.amazon.com/Financial-Planning-Insights-Decades-Planner/dp/1098306279?ref_=ast_author_mpb

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 biweekly by Planned Solutions, Inc. for informational purposes only. Please seek the advice of a qualified financial planner before taking any action.

Planned Solutions, Inc.