On this episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes COO & CMO Stacey McKinnon to discuss retirement planning. How much do people really need to retire comfortably?

Here are some key takeaways from their conversation:

- Over 55% of Americans feel behind in retirement planning.

- It is crucial to create a retirement plan custom to your lifestyle instead of taking generic advice from people who may have different standards than you. 

- 65 is generally seen as the “right” time to retire. However, Stacey and Chris urge listeners to consider their financial readiness, health and life aspirations rather than defaulting to the traditional retirement age. 

- Many people target age 65 for retirement to take advantage of Medicare, as it is cheaper than private insurance. But, the savings are around $5,000 to $6,000 annually, which may not make delaying retirement worth it for people who are financially prepared.

- Consider diversifying savings between personal savings, retirement accounts and home equity to avoid over-reliance on one source.

-  In order to avoid over-sacrificing in the present, Stacey suggests thinking about other ways to fund your retirement, like selling a property, considering the inheritance you may receive from parents/guardians, etc.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Wealth Advisor Patrice Bening to discuss dollar cost averaging, an investment strategy where investments are bought over time. Purchases occur regularly regardless of the asset’s price. 

Here are some key takeaways from their conversation:

- Patrice shares her first experience with dollar cost averaging through her 401(k), highlighting its discipline and long-term benefits despite market volatility. 
- Dollar cost averaging (DCA) can help mitigate emotional stress when investing large sums. It can also offer potential tax benefits and loss offsetting through tax loss harvesting.
- Chris emphasizes DCA’s role in systematic and automatic investing, providing stability during market fluctuations.
- Studies indicate that lump sum investing may outperform dollar cost averaging two thirds of the time, although DCA still has its benefits.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Portfolio Management Analyst Hunter Daniel to discuss Morton’s approach to portfolio management.

Here are some key takeaways from their conversation:

- For clients bringing cash to invest rather than an existing portfolio, Hunter and his team will use dollar cost averaging to mitigate market timing risks. This means they will make periodic investments over time which helps average the purchase cost and reduce the impact of market volatility. 

- Hunter and Chris highlight strategies like tax loss harvesting and the utilization of tax loss carryforwards from previous years.

- Hunter explains the importance of asset location, which involves strategically placing investments in various accounts (taxable, IRA, Roth IRA) to maximize after-tax returns. For example, the team will aim to locate income-generating investments in IRAs, where the income won't be taxed until withdrawal. Conversely, they might place growth-focused stock funds in taxable accounts, where gains can be managed for tax efficiency.

- Client accounts are reviewed daily and trades are made 4-6 times a year to keep portfolios in line with our investment strategies. 

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Jeff Sarti, CEO of Morton Wealth to discuss market conditions and valuations.

Here are some key takeaways from their conversation:

- Jeff highlights the importance of setting realistic expectations for stock returns, noting that the past decade’s 10-12% returns may not continue.
- Jeff discusses the benefits of investing in various asset classes beyond stocks and bonds, such as real estate and private lending. Diversification can help manage risk and volatility. 
- Valuations matter when predicting future long-term returns. Historically, higher starting valuations have been associated with lower future returns. 
- Jeff is cautiously optimistic about the market and advises careful consideration of valuations to manage risks effectively.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Wealth Planner & Estate Attorney Brian Standing to discuss advanced estate tax planning strategies. 

Here are some key takeaways from their conversation:

- Estate tax laws are set to sunset in the next year and a half, potentially reducing the exemption amount from over $13 million to $7 million per person.

- High net worth individuals with estates over $26 million (married) or $13 million (single) should consider advanced estate tax planning to avoid higher taxes.

- Irrevocable Life Insurance Trusts (ILIT) help create liquidity to pay estate taxes without forcing the sale of assets. This trust owns the insurance policy to avoid taxation on the proceeds.

- Spousal Lifetime Access Trusts (SLAT) allow assets to be given to a spouse, maintaining indirect access to income while reducing estate taxes. This strategy has risks, such as the potential for divorce.

- Charitable Remainder Trusts allow individuals to donate assets to a charity in the future while retaining income from those assets during their lifetime.

- Family Limited Partnerships (FLP) help reduce estate tax liability by discounting the value of restricted or non-controlling ownership interests in assets like real estate or businesses.

- Brian advises listeners to organize their assets, income, and future needs to facilitate effective estate tax planning before the law changes in 2026.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Chief Compliance Officer Menachem Striks to discuss cybersecurity measures you should take to protect yourself and your money.

Here are some key takeaways from their conversation:

-          Menachem advises listeners to create complex, unique passwords (15 to 20 characters) for their accounts. Try not to use the same password for multiple accounts, as if one account is compromised, others can be jeopardized, too.

-          Password managers can help generate and store complex passwords. Apple’s new iOS 18 update includes a built-in password manager. 

-          Menachem suggests enabling two-factor authentication for accounts with sensitive information.

-          Be cautious with emails and phone calls to avoid phishing scams. Trust your gut instinct if you sense something is off. 

o    Make sure email addresses are legitimate before replying and limit how much you pick up phone calls from unknown numbers. If you do, try answering calls with a simple "hello" or staying silent initially to determine if the call is genuine. 

-          Stay aware of new phishing techniques and scams, especially as AI continues to develop. 

-          Morton consistently runs tests to ensure our internal network is secure and conducts comprehensive research on vendors we work with who have access to client information. We also train employees through phishing tests and are always staying on top of developments in the cybersecurity space.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Managing Director of Investments Sasan Faiz to discuss inflation, interest rates, and monetary policy.

Here are some key takeaways from their conversation:

- Some people think that when inflation comes down, prices should decrease. That would be “deflation,” which is a concerning economic indicator. Inflation measures how much more expensive goods and services become over a certain period, so when inflation slows down, that means prices won’t increase as much or will stay the same.
- Sasan says the risk of stagflation (when inflation remains high while economic growth slows and unemployment increases) is currently high. 
- Because supply chain disruptions were the main driver of inflation in 2021, the Fed’s attempt to slow inflation by raising rates did not have much of an effect.
- The Fed might lower rates if the economy weakens significantly, but they are cautious due to the current economic stability and low unemployment.
- High interest rates have made it difficult for housing development, thus keeping rents and prices high.
- Sasan advises listeners to consider opportunities in private credit markets which may offer equity-like returns with better downside protection.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Wealth Advisor Jon Wingent to discuss opportunities in international investing.

Here are some key takeaways from their conversation:

-          Most investors tend to have a home country bias, allocating most of their investments toward domestic stocks and companies.

-          Most investors hold less than 10% of their portfolios in international stocks, despite the U.S. making up only 24% of global GDP.

-          Jon says U.S. stocks are currently more expensive compared to international stocks. Furthermore, international stocks can offer higher dividend yields than U.S. stocks.

-          Warren Buffett has invested a significant amount in Japan, indicating long-term potential. The weaker yen, economic reforms, and tourism boom have attracted a considerable amount of foreign investments in Japan recently.

-          Chris and Jon touch on the potential of emerging markets like India, Brazil and Vietnam, which have growing middle classes and are making favorable progress in fiscal policy.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski welcomes Wealth Advisor Jenn Caruso to discuss recent financial headlines.

Here are some key takeaways from their conversation:

- The Dow Jones and NASDAQ have reached new highs; however, clients and consumers feel nervous.

- Clients often react emotionally to investment performance, wanting to sell underperforming assets and buy high-performing ones. 

- Jenn and Chris emphasize the importance of rebalancing portfolios and diversifying investments to manage risk, avoid chasing growth blindly, and align one’s portfolio with their personal goals, not just trends.

- Consumer behavior has shifted due to inflation; more people prioritize value over luxury. 

- Credit card balances are near all-time highs, and personal savings rates are down, reflecting financial strain.

On this week’s episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Wealth Advisor Patrice Bening to discuss planning for your child’s education with 529 plans, state-specific rules, and how to maximize benefits. 

Here are some key takeaways from their conversation:

-          In California, 529 plan funds that are used for kindergarten through 12th grade private school tuition incur taxes and penalties.

-          Up to $10,000 from a 529 plan can be used for student loan payments, but this is a lifetime limit.

-          $35,000 of unused 529 funds can be rolled over (over several years because the annual contribution limit is $7,000 per year) into a Roth IRA for the beneficiary, with conditions:

o   The 529 must be open for at least 15 years 

o   Contributions made in the last five years are not eligible for rollover

o   Beneficiary must have earned income

-          529 funds can be used for tuition, mandatory fees, computers, books, supplies, and room and board, but specific rules apply. They can also cover food and groceries if the child lives off-campus, adhering to the university’s specifications.

-          Parents can use 529 funds to pay rent for a home they own and rent to their child, but the rent must be comparable to on-campus housing prices, the income is taxable, and the child can no longer be declared dependent on their parents and must have their own health insurance.

-          529 funds can be used to pay for off-campus housing if the amount doesn't exceed what the school charges for on-campus housing.