December 30, 2023

By Andrea Young on January 11, 2024

Where’s Our Head?

Our Insights

James Hastings,CFP®
Director of Advisor Services, Senior Wealth Advisor

Jason Hastings,CFP®
Senior Wealth Advisor

“Most people don’t plan to fail, they fail to plan.” Words as true today as they were when first spoken by John L. Beckley decades ago. Many people want to plan, but don’t know where to start. Others simply want to know, “Am I on the right track?”

Life’s cocktail of competing goals layered with varying time horizons is a recipe for uncertainty that can lead to stress and anxiety. Coming up with the right plan can quickly become both daunting and complex when thinking about retirement, buying a home, or starting a family just to name a few objectives.

It is essential to have goals to help identify what is most important, but, as Antoine de Saint-Exupéry purportedly quipped, “A goal without a plan is just a wish.” Life is constantly changing with one curve ball after another, which is why it is important to have a plan.

While each person’s situation is completely unique, in this month’s Insights we have taken a pass at mapping out an age-related financial planning checklist. Each age group is broken out by decade to highlight what an individual of a certain age may want to focus on. As stated by Alan Lakein “Planning is bringing the future into the present so that you can do something about it now.” Hopefully, this checklist helps to clarify and identify the order in which to prioritize some of life’s financial decisions. 

To read the full insights, click HERE.

Market Commentary

What Inflation?

December 21, 2023

 Just a quick Market Commentary this week to point out something that I thought was kind of interesting. The first chart below shows the extreme volatility in interest rates since COVID arrived. Most economists attribute the rapid increase and then subsequent decline in interest rates to the surge in inflation caused by both the pandemic and the massive policy responses to the pandemic. I don’t really disagree. Inflation surged, and now it is coming back down. 

Source: Bloomberg. Data as of December 20, 2023. 

But then I looked at historical breakeven inflation rates for the past four years. Breakeven inflation rates represent the average annual inflation rates expected by bond investors over different bond maturities. They can be calculated by subtracting the rates offered on Treasury Inflation-Protected securities, or “TIPs,” from nominal Treasury rates, which are just the rates we hear quoted in the media. You can see that with the exception of a roughly 10-month period from late-2021 to mid-2022 and a very short stint in early 2023, the 2-year breakeven rates have stayed below 3%. As for the 10-year breakeven rates, they remained below 3% for the entire time with the exception of one day (April 21, 2022). Both 2-year and 10-year breakeven rates are now back to levels (2.14% and 2.20%, respectively) that suggest investors are largely unconcerned about the longer-term threat of inflation. 

Source: Bloomberg. Data as of December 20, 2023. 

I guess my point is that investors only lost confidence in the Fed’s ability to wrangle inflation for a “hot minute” (this is an expression used by millennials to describe a very short period of time). It’s striking, to me anyway, that investors have maintained such confidence in the central bank, especially after the Fed was proven wrong (according to many people) about the initial surge in inflation by calling it “transitory.” Even after that error, though, the Fed quickly regained its credibility, and it remains firmly intact today. Will investors’ confidence in the Fed prove to be misplaced? 

As most of you know, my belief is that inflation is yesterday’s concern. Yes, a big surge in oil could cause some near-term price volatility, but the pig is now through the python. There are other threats to the economy and markets for sure, but as of right now I don’t see inflation being one of them. 

Peace, 

Michael 

2024 Tax Reference Guide

To view the full document, click HERE.

Power of Your Money Story in Financial Planning (Passing down wealth…or Well-th)

Every day we tell ourselves a money story that influences our financial decisions and well-being. These beliefs become our reality and without even knowing we pass these messages on to the next generation.

In this interactive webinar, learn how to uncover and harness the power of your money story to improve your well-being, gain clarity in financial decision-making, and communicate with the next generation about wealth.

Attend and walk away with:

• A greater understanding of how your story was written
• A technique for rewriting the unwanted parts of your money story
• A simple tool for identifying generational money messages and patterns
• Tips for using your money story to talk to the next generation about wealth

Enjoy this webinar replay!

Where’s our Heart?

Happy New Year!

Looking Back on 2023

Well-th & Well-being

The Power of Self – Care With Catherine  Canadeo (EP. 30)

In a world that often pulls us in multiple directions, finding equilibrium and prioritizing our well-being can seem like an elusive quest. However, fear not, for Barbara and Catherine are here to guide you through the labyrinth of self-care, offering invaluable insights that will revolutionize your approach to mental health and overall well-being.

In this episode, Barbara Archer and renowned wellness industry leader Catherine Canadeo come together to unravel the secrets of self-care. Drawing from her wide-ranging knowledge, Catherine Canadeo delves deep into the heart of self-care, debunking common myths and unveiling the profound cultural influences that shape our understanding of this vital practice.

Barbara and Catherine discuss:

• Cultural influences and debunking self-care myths, providing insightful perspectives.
• A variety of digital tools curated to enhance your well-being and self-care practices.
• The transformative ‘Haven technique’, a powerful method for effectively managing stress, anxiety, and finding inner peace.
• And so much more!

Listen to the podcast recording HERE.

Our Latest Empower Women Podcast

Check out our December Empower Women Series podcast interview, Nine Things You Can Do Now to Make Life Easier for Your Loved Ones After You’re Gone: A Probate Attorney’s Perspective on How to Simplify Your Life, with Liz O’Neil. Liz, an attorney specializing in estate planning and administration, talked about what happens after someone passes and offered insights on how to avoid common pitfalls that can complicate or lengthen the probate process.

Podcast Episode

You can also read our event takeaways by clicking HERE!