21May
Looking for a New/Pre-owned Car/Truck/SUV in 2019?
Economy
Kiplinger predicts “there will be plenty of deals in 2019.”
(Source: The Kiplinger Letter April 12, 2019.)

While there may be fewer incentives than in 2018, here are some tips for 2019:

August and September are good months to shop as 2019 models are cleared from lots to make room for the 2020’s.  The same is true for year-end as auto dealers want to reduce taxable inventory. Specifically consider the day after Christmas and New Year’s Eve.
(Source: Yahoo Answers 5-5-2019)

While SUV’s and pickup trucks are in highest demand, they are also in high supply.

The average price of a new car in the U.S. has consistently climbed over the years, but look at what has happened to trucks: JD Power shows truck buyers pay 61% more for a new pickup compared to the cost 10 years ago. The average price of a new car rose 28% in the past decade to $32,500.  The average cost of a new truck is closer to $44,000!

(Source: “Capability Will Cost You: Trucks Cost 61% More Compared to a Decade Ago” Sean Szykowski, The Wall Street Journal; February 27, 2019.)
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21May
Beware These Life Insurance Traps
Insurance

While it is not necessarily a popular topic, understanding some life insurance basics is essential.  This is because there are many uses of life insurance throughout our lifetimes. Fortunately, there is a type of insurance that matches various needs.

For example, insurance may be needed for:

  • Liquidity at death to pay bills, pay taxes, replace lost income
  • Liquidity at death to complete business agreements such as a buy-sell agreement in a succession plan
  • Liquidity at death to equalize an inheritance
  • Liquidity during life to pay for long term needs or chronic illness

Once the need for the insurance is clear, then it is important to determine which type policy offers the necessary features/benefits:

  • Is a single life policy best or is it a survivorship policy (policy based on two lives)?
  • Is there a measurable term of years for the insurance need?
  • Is it better to have a fixed death benefit or an increasing one?
  • Does it need a rider to protect against disability, chronic illness or long-term care?
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15May
What Just Happened?
Economy
Here we were, coasting merrily along in the U.S. stock market.  Then, all of sudden, the last few days hit!

While I will be sending several opinions on consecutive days, I wanted to start with this one from Giolio Martini, Partner, Director of Strategic Asset Allocation at Lord Abbett.

Will Trade Trauma Trip Up U.S. Growth?

In our view, the effects of recently imposed tariffs likely will not have a significant impact on the current U.S. Gross Domestic Product (GDP) trajectory.

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08Feb
We’ve Moved our Office
Blogs / Articles

Our new address is:

Resonate, Inc.
4605 East Galbraith Road
Suite 200
Cincinnati, Ohio 45236

(513) 605-2500
fax: (513) 605-2505

We look forward to welcoming you!  We are located near the Kenwood Mall.

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01Nov
Is the Bull Market Over?
Economy

Here’s an ARTICLE you may find interesting.

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03Oct
5 Year Economic Prediction from Northern Trust
Economy

The information in this email is not to be taken as a recommendation to invest in any certain way.  Ginger Szala wrote “6 Economic Predictions for Next 5 Years: Northern Trust”, Sept. 10, 2018 as a result of interviewing Bob Browne the Chief Investment Officer of Northern Trust.)

Northern Trust has been shifting assets back in to the U.S. because “they have more confidence in the short-term U.S. story than in the international one.”  Browne thinks the U.S. equities will return about 6.5% total return in the short- term and expect equities to return closer to 6% over the next 5 years.  He predicts high-yield bonds at 6.3% total return in the short-term and 4.9% over the next five years.

In contrast, he projects 8.3% total return for emerging markets over the next 5 years.

He sees no risk of recession in the next 5 years and expects only one more interest rate increase from the Fed in 2018 and one in 2019.

While this obviously just represents the opinion of one institution, I thought you might be interested in seeing the total return predictions.

Barbara A. Culver
CFP®, ChFC®, CLU, AEP®
Resonate, Inc.
(513) 605-2500

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20Sep
When Older Family Members Will Not Address The Realities Of Aging
Intergenerational Planning

As you know, your Resonate team is dedicated to “helping clients create best outcomes during life’s most difficult times.”   The aging process often creates “difficult times” within families. 

We have found that proactive, skilled facilitation of “what if situations” provides time for thoughtful discussion and creates compassionate solutions to which everyone agrees in advance.  Then, “when the time comes,”  there is a plan to implement.

We welcome the opportunity to begin the conversation with you and your family.

Article: When Older Family Members Will Not Address The Realities Of Aging

 

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14Sep
Boomers, Gen X-ers, Millennials, and Money
Economy

One of the special skills of the Resonate team is working intergenerationally.  We are grateful to be working with three generations of many of our clients and – in some cases – with the fourth generation as well.

Here are some of the insights we have learned from our client families:

  1. Baby Boomers are feeling more secure about retirement than that did in 2010.  In fact, 15% more Boomers feel ready for retirement today than in 2010.  Many continue to choose to live well below their means.  This is true, in part, because “leaving a legacy to family and making a difference” are key values of this generation.
  2. Conversely, many Gen Xers are feeling enormous financial pressure.  Non-mortgage debt has increased 15% since 2014, leading to credit card balances carrying over from month to month.  Add the burden of student loans and we understand the stress of debt.
  3. Many Millennials feel financially confident and have already adopted positive savings habits.  Due, in part, to the uncertainly of Social Security, they also see saving for retirement a necessity.  The access to social media often leads to feelings of inadequacy about their own lifestyle, which leads to impulse spending.
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14Sep
What to Do About Retirement Health Care Costs?
Health Care Costs

(The source of this information is a research paper recently produced by Vanguard and Mercer Health and Benefits.  I found it helpful and hope you do as well.)

There is a great deal of fear swirling around the issue of the expense of health care in general and, particularly, in retirement.

One of the reasons for this is because we read statements like: “It’s going to cost $250,000 or more to cover health care costs in retirement.”

However, we do not talk about the cumulative cost of travel, food or other parts of our retirement budget.  Why is that?  Because expenses like travel and food are more controllable – more consistent.

Health care, however, is far less predictable.  In addition, it gets complicated from the need for Medicare Parts A and B and the never-ending options for supplemental policies and drug coverage.

New products offering protection that leverage your assets are constantly evolving as well.

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07Aug
Should I Name Individuals or a Trust as the Beneficiary of My Qualified Retirement Plan/IRA?
Investing

As opposed to leaving money outright to an individual, many of you have asked us regarding whether you should designate a revocable living trust as a beneficiary of an IRA.

While this is a legal question as opposed to a financial planning question, I do want to offer reasons why people may choose one or the other beneficiary designations.  Please note that I am referencing an article called “Designating a Trust as an IRA Beneficiary” written by Brian Dobbis, Director, Retirement Solutions for Lord Abbett, May 11, 2018.

  1. Because qualified retirement plans and IRAs are typically not subject to probate because of the beneficiary designations, many individuals simply choose to leave these qualified assets to their heirs outright.  With proper use of the beneficiary designation, you do not need to use a trust to have a qualified asset bypass probate.
  2. The primary reason for naming a trust over an individual as the beneficiary of an IRA or qualified plan is to provide post-death control over the assets.  This means that the individual or individuals named as the beneficiary of the trust do not have total control over the asset.  Rather, the terms of the trust control the distribution of the asset and/or its earnings.

If you choose to use a trust as the beneficiary for qualified assets, here are a few key points for your consideration:

  • Confirm with your attorney that the trust qualifies as a “look-through” or “see-through” trust.
  • Talk with your tax advisor or estate attorney regarding the income tax implications of using a trust versus an individual as beneficiary.
  • Be sure that trust documentation is provided to the IRA custodian no later than October 31 of the year following the IRA owner’s death.

Please note that the trustee of the trust is responsible for overseeing and implementing the terms of the trust.  Therefore, another key decision has to do with who you choose to name as trustee.I hope this provides some helpful information for those of you who are considering changing beneficiaries for your existing retirement plans or IRAs as well as for those of you who are naming beneficiaries within the near future.

 

Barbara A. Culver
CFP®, ChFC®, CLU, AEP®
Resonate, Inc.
(513) 605-2500

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