Company Blog

What Investment Risks Should I Know About? Taken by itself, the word "risk" sounds negative. But broken down into what it really stands for in terms of investing, it begins to be a little more manageable. By understanding the different types of risk and keeping an eye on your investments, you may be able to manage your money more effectively.

A required minimum distribution (RMD) is the annual amount that generally must be withdrawn from a traditional IRA or a qualified retirement plan (such as a 401(k), 403(b), and self-employed plans) starting no later than April 1 of the year after the year the account owner reaches the age of 73 (for individuals who reach age 72 after December 31, 2022). If you attained age 72 in 2022 or earlier, you are already required to take RMDs. The RMD age will rise to 75 in 2033.

Every year, the Internal Revenue Service announces cost-of-living adjustments that affect contribution limits for retirement plans and various tax deduction, exclusion, exemption, and threshold amounts. Here are a few of the key adjustments for 2024.

Couples who have opposite philosophies regarding saving and spending often have trouble finding common ground, and money arguments frequently erupt. But you can learn to work with — and even appreciate — your financial differences.

The Federal Reserve’s rapid series of interest rate hikes throughout 2022 and 2023 — initiated in an effort to bring down red-hot inflation — rippled throughout financial markets and the broader economy.

Academic researchers have been exploring how investors’ personalities might affect their financial decisions and wealth outcomes.

Productivity of U.S. workers increased by 2.7% in 2023 — well above the average annual rate of 2.1% since the end of World War II, and a dramatic change from 2022, when productivity dropped by 2.0%. It’s also a big improvement over the 0.9% growth rate in 2021.

Most homeowners make their regular mortgage payments every month for the duration of the loan term, and never think of doing otherwise. But prepaying your mortgage or making biweekly payments can reduce the amount of interest you'll pay over time.

IRAs and employer-sponsored retirement plans are subject to annual contribution limits set by the federal government. The limits are adjusted periodically to compensate for inflation and increases in the cost of living.

The history of estate taxes in America has been a long and winding road. Careful estate planning is still one of the most important ways to manage and protect your assets for your heirs.

The start of a new year is typically a time when people resolve to implement or recommit themselves to a personal financial goal. This year, why not consider opening a 529 plan account, or increasing your contributions to an existing account, to enhance your child’s or grandchild’s financial future? 529 plans are the most flexible they’ve ever been since their creation more than 25 years ago.

As you plan for retirement, you might not give credit a second thought, especially if your plan includes paying off your mortgage and other debts, and relying more on cash than credit. But retirement could last many years, and your need for credit doesn’t necessarily disappear on your last day of work. At some point you may want to buy a second home, move to a retirement community, take out a home equity loan, or buy a vehicle; it’s also possible you will face an unexpected expense.

Estate planning is the process of managing and preserving your assets while you are alive, and conserving and controlling their distribution after your death. There are four key estate planning documents almost everyone should have regardless of age, health, or wealth. They are: a durable power of attorney, advance medical directive(s), a will, and a letter of instruction.

According to an October 2023 survey, higher interest rates impacted more than half of small businesses, and over 20% reported that higher rates and tighter lending standards influenced their hiring decisions.

It’s not easy to keep up with complex tax laws that always seem to be changing, much less figure out how they might affect you personally. Even so, it’s important to consider the potential impact of taxes when making many types of financial decisions.

The SECURE 2.0 Act, passed in late 2022, included numerous provisions affecting retirement savings plans, including some that impact required minimum distributions (RMDs). Here is a summary of several important changes, as well as a quick primer on how to calculate RMDs.

It's no surprise that consumers are contacted by debt collectors about medical bills more than any other type of debt. After all, the complex world of medical billing and collection practices is extremely difficult to navigate. Many people have trouble understanding what the various billing codes on a medical bill even mean. Historically, this has led to consumers racking up unpaid medical bills because they were unaware of what they owe.

New Medicare Rules Tackle Prescription Drug Prices The Inflation Reduction Act of 2022 included provisions intended to lower prescription drug costs for Medicare enrollees and slow drug spending by the federal government.

Economists and investors pay attention to the Institute for Supply Management (ISM) Manufacturing Purchasing Managers Index (PMI) not only for information about the health of U.S. factories but also for clues about demand in the national economy. A reading below 50% generally means that manufacturing activity is contracting, and a reading below 48.7% indicates that the overall economy is contracting along with it.

After a Surprising 2023, a Cautiously Optimistic Economic Outlook for 2024 Despite high interest rates and unsettling geopolitical conflict, the U.S. economy outperformed the expectations of most economists in 2023.

Should You Bank Your Retirement on Your Business? Investing in your own business makes sense. Many businesses achieve significant growth each year. However, when you consider that many small businesses fold every year, it becomes clear that banking your retirement solely on the success of your business might not be the best idea. There is no guarantee that your business will continue to grow or even maintain its current value.

Will Your Sources of Income Last a Lifetime? At age 65, a healthy man or woman can reasonably expect to spend up to 20 or 30 years in retirement. There is a 63% chance that one member of a couple will live to age 90. Social Security offers benefits similar to a lifetime pension. Not only does it provide a guaranteed income stream, but it also offers longevity protection, spousal protection, and even some inflation protection.

How Can I Control the Distribution of My Estate? There are a number of ways your estate can be distributed to your heirs after your death. Each allows a different degree of control over distribution, and each poses different challenges and opportunities.

When it comes down to it, you need to plan how you and your family will eventually pay them. The Estate Tax Dilemma Estate taxes are generally due nine months after the date of death. And they are due in cash. In addition to estate taxes, there may be final expenses, probate costs, administrative fees, and a variety of other costs.

Wills and trusts are two of the most popular estate planning tools. Both allow you to spell out how you would like your property to be distributed, but they also go far beyond that. Just about everyone needs a will.

Mutual funds pool investment dollars from many individual investors to purchase a group of selected securities aimed at meeting a particular objective. This offers a convenient way to invest across a wide range of market activity that would be difficult for most investors to do by purchasing individual securities. More than 52% of U.S. households owned mutual funds in 2022.

SECURE 2.0: Big Impact for Small Businesses A recent AARP study found that nearly half of all private sector employees ages 18 to 64 had no access to a retirement plan at work. It also found that small businesses are more likely to lack a work-based plan, putting their workers at a significant disadvantage when it comes to retirement preparations.

A 2023 survey revealed a notable shift in public opinion over the past decade about the value of a college degree: 56% of Americans think a four-year college degree isn't worth the cost due to students graduating with significant debt and a lack of specific job skills vs. 42% who believe college is worth it. The survey numbers have almost reversed from ten years ago, while college enrollment has declined by about 15% .

The Social Security cost-of-living adjustment (COLA) for 2023 was 8.7%, the largest benefit increase since 1981. Obviously, the COLA helps current beneficiaries, but you may wonder whether it will make a difference if you're not yet receiving retirement benefits. The answer depends on your age.

If you would like to reduce your monthly mortgage payment without having to refinance, then you may want to explore a mortgage recast. When you recast your mortgage, you put money toward the principal balance of your current home loan. Your mortgage lender then recalculates (reamortizes) your loan based on your new, lower balance, which reduces your monthly payment.

Retirees face several unique challenges when managing their income, particularly when it comes to taxes. From understanding how taxes relate to Social Security and Medicare to determining when to tap taxable and tax-advantaged accounts, individuals must juggle a complicated mix of factors.

Most Grocery Shoppers Aren't Fooled by Shrinkflation — Have you noticed that packages are smaller at the grocery store? If so, you're not alone. A survey of consumers taken in 2022 found that a majority of U.S. adults have noticed shrinkflation — products shrinking in size while prices stay the same or increase. This is a common strategy among manufacturers, but it accelerates in periods of high inflation, when companies are under more pressure to control their costs.

A March 2023 survey found that more than 90% of Americans worry about the Social Security program, and about half of those said they worry a great deal. A separate survey the same month found that more than 80% of Americans worry Medicare will not be able to provide the same level of benefits in the future.

Transformative Tech: Will AI Upend the American Workforce? A chatbot with uncanny human-like writing abilities has become the poster child for artificial intelligence (AI) since it was released in late 2022, inspiring new levels of attention, excitement, and concern about recent advances in this life-changing technology.

Frank Deptola Awarded Five Star Wealth Manager Recognition for 9th Straight Year

In 1884, Charles Henry Dow averaged the closing prices of 11 stocks he considered representative of the strength of the U.S. economy in a paper that preceded The Wall Street Journal.

There are a variety of retirement planning options that can meet your needs. Your employer funds some; you fund some. This list describes 10 of the most common planning options.

If you and your spouse are looking for a way to build your retirement savings but one of you is not working, you might consider funding a spousal IRA. This could be the same IRA that the spouse contributed to while working or it could be a new account.

Key Retirement and Tax Numbers for 2023 Every year, the Internal Revenue Service announces cost-of-living adjustments that affect contribution limits for retirement plans and various tax deduction, exclusion, exemption, and threshold amounts. Here are a few of the key adjustments for 2023.

Before making any investment decision, one of the key elements you face is working out the real rate of return on your investment. Compound interest is critical to investment growth. Whether your financial portfolio consists solely of a deposit account at your local bank or a series of highly leveraged investments, your rate of return is dramatically improved by the compounding factor.

Responding to the changing needs of consumers, the life insurance industry has developed some alternatives that go much further in satisfying a variety of financial needs and objectives than some of the more traditional types of insurance and annuities. Modern contracts offer much more financial flexibility than traditional alternatives do.

The Inflation Experience Is Painful and Personal Inflation is a sustained increase in prices that reduces the purchasing power of your money over time. According to the Consumer Price Index (CPI), inflation peaked at an annual rate of 9.1% in June 2022, the fastest pace since 1981, before ticking down to 6.5% in December.

Red Ink: The Debt Ceiling and Deficit Spending On January 19, 2023, the outstanding debt of the U.S. government reached its statutory limit, commonly called the debt ceiling. The current limit was set by Congress at about $31.4 trillion in December 2021.

One of the best ways to protect against the financial consequences of a primary wage earner's premature death is life insurance. However, choosing from the many types of life insurance policies that are available can be a difficult process. A few main categories are described here to help you search for a life insurance policy that is appropriate for you.

Before making any investment decision, one of the key elements you face is working out the real rate of return on your investment. Compound interest is critical to investment growth. Whether your financial portfolio consists solely of a deposit account at your local bank or a series of highly leveraged investments, your rate of return is dramatically improved by the compounding factor.

When Must Taxes Be Paid on IRA and Employer-Sponsored Retirement Funds? Traditional IRAs and most employer-sponsored retirement plans are tax-deferred accounts, which means they are typically funded with pre-tax or tax-deductible dollars. As a result, taxes are not payable until funds are withdrawn, generally in retirement. Withdrawals from tax-deferred accounts are subject to income tax at your current tax rate.

Every investor dreams of buying into the market at a low point, just before it hits an upswing, and garnering a large profit from selling at the market's peak. But trying to predict market highs and lows is a feat no one has ever fully mastered, despite the claims by some that they have just the right strategy that enables them to buy and sell at the most opportune times.

Beginning at age 50, there are several key birthdays that can affect your tax situation, health-care eligibility, and retirement benefits.

Naming a trusted contact is optional but may help protect your account assets. This individual may be contacted in certain situations, such as when financial exploitation is suspected or there are other concerns about your health, welfare, or whereabouts. Naming a trusted contact is optional but may help protect your account assets.

Is the Yield Curve Signaling a Recession? Long-term bonds generally provide higher yields than short-term bonds, because investors demand higher returns to compensate for the risk of lending money over a longer period. Occasionally, however, this relationship flips, and investors are willing to accept lower yields in return for the relative safety of longer-term bonds.

This 2023 Five Star honor marks Frank Deptola's ninth consecutive year of recognition. "This is a very unusual occurrence, and Frank is in rare company," says Chrissy Mattson of Five Star. "Perhaps 15 people have won this award nine consecutive times in Orange County." 

Nearly 1 million consumers lost more than $2.3 billion to imposter scams, with a median loss of $1,000. Imposter scams happen when an individual posing as someone else.

Why Are Annuities Considered an Insurance Product? Annuities are financial vehicles that can be sold only by insurance companies. Basically, an annuity is a contract between you and an insurance company, which promises to pay you a future income in exchange for the lump-sum payment or premiums that you pay. The payments specified in the annuity contract will be paid to you during your retirement (or, in some situations, to your beneficiaries after your death).

Distributions from traditional IRAs and most employer-sponsored retirement plans are taxed as ordinary income, except for any after-tax contributions you've made, and the taxable portion may be subject to 10% federal tax penalty if taken prior to reaching age 59½ (unless an exception applies).

What Are Some Tips for Managing My Money? As with virtually all financial matters, the easiest way to be successful with a cash management program is to develop a systematic and disciplined approach. Spending a few minutes each week to maintain your cash management program, can help you keep track of how you spend your money and pursue your financial goals.

Some market sectors — such as health care, consumer staples, and utilities — are considered “defensive” and may be good to hold through a bear market or economic recession because businesses in these sectors tend to remain strong regardless of economic conditions.

IRA Distributions Can Benefit Your Favorite Cause and Your Tax Bill. The Tax Cuts and Jobs Act nearly doubled the standard deduction beginning in 2018 and indexed it annually for inflation through 2025 ($12,950 for single taxpayers and $25,900 for joint filers in 2022; $13,850 and $27,700 in 2023).

You may donate money to charitable organizations throughout the year, for no other reason than your heart-felt desire to support causes that you care about. But if philanthropy is important to you, keep in mind that the associated tax breaks could potentially increase your ability to give.

The most important attribute of a cash reserve is its availability in time of sudden need. And even though a federally insured savings account is considered one of the safest places to put money being reserved for emergencies you may want to consider other alternatives when interest rates are low. When selecting ways to invest your cash reserve, you should balance your liquidity needs with potential returns.

The federal gift tax applies to gifts of property or money while the donor is living. The federal estate tax, on the other hand, applies to property conveyed to others (with the exception of a spouse) after a person's death. The gift tax applies to the donor. The recipient is under no obligation to pay the gift tax, although other taxes, such as income tax, may apply.

There are a number of different gifting strategies available for planned giving. Each has its advantages and disadvantages. Instead of making an outright gift, you could choose to use a charitable lead trust. With a charitable lead trust, your gift is placed in a trust. The recipient of the gift draws the income from this trust. Upon your death, your heirs will receive the principal with little or no estate tax.

The use of telehealth skyrocketed early in the COVID-19 pandemic, with the number of remote office visits and outpatient services, 78 times higher in April 2020 than in February 2020. Usage has stabilized since that extraordinary rise, but as of early 2021 remained 38 times higher than the pre-pandemic level.1

You might think that those who are rich and famous would be way ahead of the curve when it comes to planning their estates properly. Yet plenty of celebrities and people of note have died with inadequate or nonexistent estate plans.

A broader inflation-adjusted index that captures a basket of 26 foreign currencies reached its highest level since 1985.

What Are the Pitfalls of Probate? Have you ever wondered what will happen to your estate after you die? How long will it take for your loved ones to receive the estate you've left them? Will each receive what you'd like them to have? If you're like most people, your estate will go through a lengthy probate process. Probate consists of the court proceedings that conclude all your legal and financial matters after your death.

How Will I Pay Estate Taxes? When it comes down to it, you need to plan how you and your family will eventually pay them. The Estate Tax Dilemma Estate taxes are generally due nine months after the date of death. And they are due in cash. In addition to estate taxes, there may be final expenses, probate costs, administrative fees, and a variety of other costs.

How can I control the distribution of my estate? There are a number of ways your estate can be distributed to your heirs after your death. Each allows a different degree of control over distribution, and each poses different challenges and opportunities.

How Can a Living Trust Help Me Control My Estate? Living trusts enable you to control the distribution of your estate, and certain trusts may enable you to reduce or avoid many of the taxes and fees that will be imposed upon your death.

What Key Estate Planning Tools Should I Know About? Wills and trusts are two of the most popular estate planning tools. Both allow you to spell out how you would like your property to be distributed, but they also go far beyond that. Just about everyone needs a will.

Dividends can be a dependable source of income for retirees and others who want an income stream without selling their underlying investments.

How Life Insurance Could Help Mitigate Taxes in Retirement. Permanent life insurance offers a tax-free death benefit, and a portion of each premium goes into a cash-value account that accumulates on a tax-deferred basis. The policy owner may also access the cash value, if needed, without triggering income taxes.

Unpacking the Inflation Reduction Act: What's in it? The Inflation Reduction Act (IRA), signed into law on August 16, 2022, is a package of climate, energy, health-care, and tax legislation.

What Are Some Tips for Managing My Money? As with virtually all financial matters, the easiest way to be successful with a cash management program is to develop a systematic and disciplined approach. Spending a few minutes each week to maintain your cash management program, can help you keep track of how you spend your money and pursue your financial goals. Any good cash management system revolves around the four A's; Accounting, Analysis, Allocation, and Adjustment.

A 401(k) plan is a self-directed, qualified retirement plan established by an employer to provide future retirement benefits for employees. Employee contributions are made on a pre-tax basis, and employer contributions are often tax deductible.

Tech Sector Turmoil and the Bear Market During the intensely volatile first 100 trading days of 2022, the stocks of companies in the S&P 500 index delivered their worst performance since 1970.The S&P 500 continued to tumble, and the benchmark index descended into a bear market.

529 Lesson Plan: High Scores for 529 Plans Looking for a tax-advantaged college savings plan that has no age restrictions and no income phaseout limits and one you can use to pay for more than just tuition? Consider 529 savings plans, a popular way to save for higher-education expenses.

In general, Americans are not sufficiently prepared to pay for long-term care. Many of them go through their lives simply hoping that they won't ever need it. Unfortunately, in the event that you or a loved one does need long-term care, hope won't be enough to protect you from potential financial ruin. Self-insurance as an option To self-insure,that is, to cover the cost yourself, you must have a sufficient income.

Why Small Businesses Should Pay Attention to Accessibility The Americans with Disabilities Act (ADA), which passed more than 30 years ago, made it illegal to deny job opportunities to people based on their disabilities, mandated reasonable accommodations to make buildings accessible, and required most private businesses to offer equal service to disabled customers. About 61 million people in the United States & one in every four adults live with a disability.

Are You Ready to Cancel Your Cable TV? An explosion in the number and variety of streaming services, coupled with the high cost of cable and satellite television packages, might have you wondering whether it’s time to cut the cord. But streaming costs money, too, and you may have to subscribe to multiple services to access all your favorite programs. You might also need to buy a streaming device and pay for a pricey high-speed Internet connection.

Homebuyers braving the hot U.S. housing market have run headlong into a striking transition. The average interest rate for a 30-year fixed mortgage jumped from around 3.2% at the beginning of 2022 to 5.3% in mid-May, the highest level since 2009.

BNPL plans are more popular with younger consumers trying to stretch their paychecks, partly because they are more comfortable shopping online (and particularly on smartphones). At first glance, it may seem like a worthwhile convenience, but there are good reasons to think twice before committing to installment purchases.

Are you saving for retirement? For your children’s education? For any other long-term goal? If so, you’ll want to know how inflation can impact your savings. Inflation is the increase in the price of products over time. Inflation rates have fluctuated over the years.

An estimated 102.5 million investors — representing almost 46% of U.S. households — owned mutual funds at the end of 2020 (most recent data). These individual retail investors held about 89% of the $23.9 trillion in assets invested in U.S. mutual fund companies.1

Since your home is one of your greatest assets, you should make sure it is adequately protected. That's where homeowners insurance enters the picture. Homeowners insurance protects against liability (in case someone is injured on your property), damage to the structure of your home and/or personal belongings, and theft.

When Two Goals Collide: Balancing College and Retirement Preparations You've been doing the right thing financially for many years, saving for your child's education and your own retirement. Yet now, as both goals loom in the years ahead, you may wonder what else you can do to help your child (or children) receive a quality education without compromising your own retirement goals.

What's the Difference Between Medicare and Medicaid? It's easy to confuse Medicare and Medicaid, because they have similar names and are both government programs that pay for health care. But there are important differences between the programs. Medicare is generally for older people, while Medicaid is for people with limited income and resources.

Is the Russia-Ukraine War a Threat to the Global Economy? Before Russia stunned the world by invading Ukraine, it was widely believed that the economic ties formed through globalization would help promote peace. But the war is testing that assumption and drawing attention to the vulnerabilities in far-flung supply chains, which were already under pressure because of the pandemic and recovery.

Colliding Forces: Russia, Oil, Inflation, and Market Volatility The Russian invasion of Ukraine has drawn condemnation and punitive sanctions from the United States, Europe, and their allies. The humanitarian cost of war cannot be measured, and the long-term economic effects could take months or years to unfold. However, the early stages of the conflict pushed oil prices upward and sent the U.S. stock market plunging, only to see stocks bounce back and drop again.

In Season 1 of Ken Burns documentary series on the Vietnam War entitled, “The Vietnam War: A Film by Ken Burns and Lynn Novick (Vietnam: Burns and Novick),” his narrative helps illustrates mistakes the United States made in managing a war we intentionally provoked...

Inflation, in the basic sense, is a rise in price levels. Economists believe inflation comes about when the supply of money is greater than the demand for money. Inflation is viewed as a positive when it helps boost consumer demand and consumption, driving economic growth. Inflation is one of the greatest threats to a healthy economy. Inflation eats away at our standard of living if our income doesn't keep pace with rising prices over time.

I am writing today, during this turbulent and historic time, to try to provide an objective perspective on some of the effects current major geo-political events are having on the “market’s” performance, and how we are trying to address these concerns for our clients over the balance of this year...

What Tax Deductions Are Still Available to Me? Tax reform measures are enacted frequently by Congress, which makes it hard for U.S. taxpayers to know which deductions are currently available to help lower their tax liability.

The Fed Pivots to Fight Inflation On December 15, 2021, the Federal Open Market Committee (FOMC) of the Federal Reserve System made a significant shift in monetary policy in response to rising inflation.

Help Wanted: Why Can't Businesses Find Enough Workers? The headline U.S. unemployment rate fell from 6.7% at the end of December 2020 to 3.9% in December 2021.

Frank Deptola was recently notified by Five Star Professional that he has again been selected as a 2022 Five Star Wealth Manager - one of the top financial advisers and wealth managers in Orange County, CA.