MONTH-2-MONTH

AUGUST 2022

MONTH-2-MONTH is intended to provide you with updates on AFP and timely financial planning and investment information on a variety of topics. 

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Summer's End

As Labor Day approaches, it signals the end of another summer. Kids are going back to school and football season is right around the corner. The vegetables planted in the spring have matured and are ready to be harvested. It’s a great opportunity to squeeze in some trips to the pool or some time outdoors before the temperature starts to drop. Make sure you set aside some time to enjoy the waning days of summer while you can.

• HAPPENING AT AFP


  • Covid Policy Update We are now hosting in-person meetings with clients that have been fully vaccinated with a booster shot. We will continue to conduct meetings via Zoom as well for those clients that prefer it. Please make sure to indicate your preference for either a Zoom or an in-person meeting when scheduling.


  • Mail Issues – We have been getting our mail with more consistency recently, however delivery is still somewhat sporadic. Please keep this in mind going forward when sending us mail, as it may take a while for us to receive it.


  • AFP August Webinar – The AFP August Webinar will be held next Friday at noon (August 26th) and the topic is Medicare 101 with Kerry Quick. Kerry is a benefit advisor specializing in Medicaid and works for Seniority Benefit Group. The webinar will be hosted using Zoom and due to the limited size of Zoom meetings, the webinar links will only be sent to those who confirm their attendance ahead of time. We'll send a reminder email early next week and the Zoom link will be sent out on Friday morning. If you would like to attend, please either reach out to Erik Danielson (edanielson@afp-advisors.com) or reply to the webinar email you were sent previously. If you know anyone who would like to attend or could benefit from this information, we encourage you to pass along this newsletter or the webinar email to them.


  • AFP Website Webinars Page – Visit our website to view all of our previous webinars. All future webinars will be posted here as well. Click here to view.


  • 25 Year Celebration Update – We plan on holding our 25 Year Celebration on 9/21/2022 from 4 pm to 8 pm. We will provide further details soon, save the date!

FYI


  • Orion Portal Update – The Orion Portal will be updated effective September, 23rd. If you have existing access to the portal, your credentials will not be effected. Further details will be forthcoming.


  • Agreement Updates – In April/June we sent out a number of revisions to our agreements. We have received most of them back, however a few of them are still outstanding. If you have a contract update from AFP that you have not returned, please make sure you get it sent to us as soon as possible.


  • Beneficiary Updates – Now is a good time to check that your beneficiaries are up to date. We have been contacting clients to get theirs updated, with mixed success. Please double check to make sure your beneficiaries are current.


  • Tour of Homes – GHMC Historical Society will have their Tour of Homes on October 2, 2022. Teri is a board member and serves as a trustee for the organization. For more information, visit https://www.ghmchs.org/home-tours.
• THIS MONTH'S BLOG •

Click below to read our August 2022 Blog edition.


Retirement Is One Of Life's Major Transitions -

Maintaining Cognitive Health Can Make It Easier


We would enjoy receiving your feedback on our Blog. Please share any comments or suggestions for future topics with us via email.


• ON A PERSONAL NOTE •
+ Teri's World

This month seems to have flown by. Gene & I took a Saturday road trip up to Lehman’s Hardware Store and meandered back through the countryside. My oldest grandson turned 6 and had a birthday party with friends at their pool. Hard to believe he is off to kindergarten! One of my other grandsons broke his clavicle while swinging, and is on the mend. I’ve had a chance to spend more time with all 4 of my grandsons this month and it’s been a joy. Even though I have had less time to take care of the vegetable garden this summer, it is producing! Lots of tomatoes, peppers, and purple beans.

Vegitables from the garden

+ Tracey's Time

Summer was fun but passed by so fast. We crammed in another camping weekend close to home and attended the Dayton Air Show at the end of July. It was a picture perfect day with blue skies and only a few clouds. 


It is a pivotal time for Cayleigh. She celebrated her 16th birthday! She is working toward meeting the requirements to take the driving test and is playing junior varsity golf this fall. She plays violin and has advanced to the Concert Orchestra level. Her academic load this year includes three advanced courses and no study hall. This should keep us all very busy for the time being. 


Andy and I have plenty to do as well. There are some home projects we have put off that need our attention. It isn’t a lot of fun but we enjoy the sense of accomplishment when we are productive. We will fit the tasks in between two additional fall camp weekends we have lined up for September and October. 

The Blue Angels flyover at the Dayton Air Show

+ Erik's Exploits

August has been a quiet month with little to report. Outside of hanging out with friends on the weekends, not much of interest has been going on since returning from vacation last month. I’ve been doing some house sitting for my dad while he is out of town, which has consisted of light yardwork and dog walking for the most part. Next month I’m going to try to set a few days aside to visit a friend in Baltimore, if I can. So between that and the return of college football, September looks like it’s shaping up to be a lot more fun.

• POINTS OF REFERENCE •
Current Economic and Investment Information

INVERTED – Each of the 8 recessions that have occurred in the USA since 1969 have been preceded by an “inverted” yield curve, i.e., the 2-year Treasury note yield exceeding the 10-year Treasury note yield. As of 7/29/2022, the 2-year note yield has exceeded the 10-year note yield for 18 consecutive trading days. The 2022 inversion is a function of the 2-year note yield quadrupling since the beginning of this year, reacting to Fed rate hikes that are expected to drive down inflation (source: Treasury Department).  


FED ACTION – The Fed raised short-term rates by 0.75 percentage points on 7/27/2022, its 4th rate hike since 3/16/2022, making it a total of 2.25 percentage point increases this year (source: Federal Reserve).


HOME SELLING – When the pandemic started (January 2020), the median sales price of existing homes sold in the USA was $266,300. In June 2022, the median sales price of existing homes sold in the USA reached a record $416,000 (source: National Association of Realtors).


OOPS! – The city of Chicago decided in 2020 to raise property taxes in 2021 and beyond based on our nation’s rate of inflation up to a maximum increase of 5% in any single year, i.e., inflation to be measured by the nationally calculated “Consumer Price Index” (source: Property Tax Extension Limitation Law).


THIS WILL CHANGE IN THE FUTURE – 91% of the 128 million households in the USA own at least 1 car, SUV or light-duty truck, a total of 250 million vehicles. Surprisingly, electric cars and trucks make up just 2 million of the 250 million vehicles in our country today (source: Census Bureau).


YOU PROMISED – The “aggregate funded ratio” of state and local pension plans across America is 77.9%, i.e., the pension plans’ assets divided by the present value of the pension plans’ liabilities. Since 2001, the ratio has been as high as 95.1% (2001), as low as 62.4% (2009) and was 84.8% in 2021 (source: Equable Institute).


INFLATION REDUCTION ACT – On Friday 8/12/2022, the House of Representatives passed the “Inflation Reduction Act of 2022.” This bill was signed into law by President Joe Biden on 8/16/2022. HR # 5376 is projected to reduce our deficit by $294 billion over the next 10 years (source: House).


CLIMATE – IRA injects $369 billion over the next decade into climate and energy programs, spending that is forecasted to reduce US greenhouse gas emissions by 42% below our 2005 levels by 2030 (source: Senate).


EV – IRA includes a $7,500 tax credit for the purchase of a new electric vehicle (EV) and a $4,000 credit for the purchase of a used EV. The credits are limited to purchases of cars costing no more than $55,000 and trucks maxed out at $80,000, and the batteries must contain minerals from a short list of countries (source: Senate).


CORPORATE MINIMUM TAX – IRA is expected to raise $258 billion over the next decade via a 15% minimum tax on the 150 US companies that have annual profits of at least $1 billion (source: Joint Comm. on Taxation).


PRESCRIPTION DRUGS – IRA will allow Medicare to negotiate directly with drug companies for lower prices on 10 prescription drugs beginning in 2026, including inflation caps for the drugs it purchases. These changes have been scored to produce $288 billion of savings over the next decade (source: Senate).

Inflation Reduction Act cont.


Some additional information about what's in the Inflation Reduction Act of 2022


Click here to view the source.

• TIMELY TOPICS •

When Couples Differ on Spending

Financial Bullying Can Ruin a Marriage:

First-Person Stories

When partners consider finances, when is it 'my' money and when is it 'our' money?


By Jana Kaperkevic

Source: The Guardian

A survey of about 1,000 Americans found that one in 10 would describe their partner as a financial bully. Our readers, however, insist that that might be a label easily assigned to a partner who is simply being financially responsible.


When we put out a call to out readers last week to see if any of them had similar experiences, we found that many of you wouldn’t define the actions described as financial bullying. Instead, quite a number of you insisted that keeping track of your partner’s expenses was simply budgeting and being financially responsible.


Click here to continue reading this article.

Bonding Through Tradition

family_at_dinner.jpg

Creating Memories with Your Loved Ones


Source: Freedman Financial

Building family traditions can be a great way to solidify the family bond. In fact, traditions and rituals often tell a story about your family—serving as real reminders of what helped shape your lives together. They also build memories, comfort, and security. But how do you start one?


The next time you’re getting the family together, or you want to create memories with your loved ones, try one of these fun ideas. From handshakes to movie nights, you’re sure to find something that fits the uniqueness of your family! 


Click here to continue reading this article.

A Date to Remember

The Intelligent Investor: What Aug. 12 Should Tell Us


By Jason Zweig

Source: The Wall Street Journal

Dates can bring back memories. When I read this article, I realized this was the month and year that I made the switch from teaching to finance. Hard to believe it’s been 40 years. It was a true teaching moment when the market took off at a time when all the news was so negative. - Teri Alexander


Click here to continue reading this article.

A Difficult Balance

Overstretched 'Sandwich Generation' Caregivers Need More Support

With Alzheimer's and other forms of dementia impacting BIPOC at higher rates, balancing

elder care and child care takes a heavy toll.


By Pamela Appea

Source: Prism

Julie Ramos first realized her husband’s forgetfulness was far more serious than she had previously suspected the day he and their then 6-year-old daughter got lost in Mexico City while walking in a familiar location near their relatives’ home. Ramos, who is using a pseudonym, ended up having to call the police to find her husband and daughter. At the time, Ramos didn’t know as much about dementia and how it would impact her American military veteran husband, James, also using a pseudonym, who was in his early 70s at the time. But over the last six years of her husband’s life, Ramos, who was then in her 40s, became her husband’s full-time caregiver while also being a de facto single mother to their daughter.


“I had no help,” Ramos told Prism. “It was hard. I used to dress him and cut his nails. My husband was aggressive sometimes [as a result of dementia, but] I felt like [caring for him] was my responsibility. It was part of my commitment when I married him.”


Click here to continue reading this article.

• QUOTE •


“When summer opens, I see how fast it matures, and

fear it will be short; but after the heats of July and August,

I am reconciled, like one who has had his swing, to the cool of autumn.”


- Ralph Waldo Emmerson

Alexander Financial Planning
1621 W. First Avenue
Grandview Heights, OH 43212
614-538-1600

Registered Investment Advisor
This material is distributed by Alexander Financial Planning, Inc., (AFPI) and is for information purposes only. Although information has been obtained from sources we believe to be reliable, we do not guarantee its accuracy. It is provided with the understanding that no fiduciary relationship exists because of this report. Opinions expressed in this report are not necessarily the opinions of AFPI and are subject to change without notice. AFPI assumes no liability for the interpretation or use of this report. Financial planning, investment conclusions, and strategies suggested in this report may not be suitable for all investors and consultation with a qualified advisor is recommended prior to executing any investment strategy. No portion of this writing should be construed as legal or accounting advice. All rights reserved.
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