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MONTH-2-MONTH
FEBRUARY 2023
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MONTH-2-MONTH is intended to provide you with updates on AFP and timely financial planning and investment information on a variety of topics.
If you find our content useful, please forward this e-mail to a friend.
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February's weather has been surprisingly pleasant! It certainly has been a welcome break in the middle of winter. March is right around the corner, which means we are creeping ever closer to Spring. | | |
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Happy Presidents' Day – The markets will be closed on Monday, February 20th, in observance of Presidents' Day.
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AFP February Webinar – Due to time constraints, AFP will not be hosting a webinar in February. Stay tuned for info about our March webinar.
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Construction Heads Up – Earlier this week, Grandview Heights Schools had the old middle school across the street from our building demolished. Please keep this in mind if you are coming to the office as it is impacting local traffic.
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• FOR AFP INVESTMENT CLIENTS • | |
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Many of you should have your Tax Forms in your mailbox, inbox,
or on Account View from TD Ameritrade.
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Jan. 31, Form 1099-R – Any client who took money from a Traditional IRA in 2022 will get a 1099R from TD Ameritrade.
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Jan. 20 – Feb. 24, Form 1099-Consolidated Tax – For non-retirement or taxable accounts (i.e. Individual, Joint, TOD, a trust). These are multiple page landscape-oriented documents, generally 6-12 pages. There may be Corrected Form 1099-Consolidated Tax forms mailed to some clients over the next month or so. These are usually due to corrections made by the reporting agents of different mutual funds or other securities. TD Ameritrade has no control over these changes, but they are required to report the changes.
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Feb. 24 & May 31, Form-5498 – This Form reports your total annual contributions to an IRA account and identifies the type of retirement account you have, such as a traditional IRA, Roth IRA, SEP IRA or SIMPLE IRA. Form-5498 will also report amounts that you roll over or transfer from other types of retirement accounts into this IRA. Form 5498 is for informational purposes only, there is nothing to report on your taxes.
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February is a pretty intense work month, but the fabulous weather we’ve been experiencing here in Columbus has made it much more enjoyable. Gene, my son, and I have had some great hikes at Battelle Creek and Highbanks Metro Parks on the weekends. Tucker got high marks at his 6 week vet check-up this week, so he is now able to go up some stairs and take walks with Rubi, the puppy. Total recovery will be another 2 ½ months. The grandsons are all involved in different activities and I have tried to take in some of these events when I am able. We celebrated Gene’s birthday with 4 different dinners and gatherings, so he should be good for another year! | | | |
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February is always a slow month in our household. The basketball season continues for Ellie, who is doing really well this year. Her ability and understanding is really improving as she becomes a very good all-around player. One valuable lesson we did learn this month: the Saturday before Valentine’s Day is really busy at restaurants. After a super romantic trip to IKEA, Lisa and I looked to have a nice kid-free dinner. But we quickly realized you have to have reservations on this particular day. We’re such amateurs. On a related note: Brio has some nice high-top tables in their bar area. They’re almost as comfortable as a regular table – they just signal to the rest of the restaurant that you’re unable to plan ahead. | | | |
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This Ohio winter is bi-polar. Warm one day, cold the next. We were able to get in one evening of skiing earlier this month. Conditions were par for Ohio, meaning a base of ice with some groomed man-made faux-snow on the surface.
Other happenings this month are that Andy has finished most of the basement renovation project. He has a few things left on the “honey do” list including making doors for the storage cabinets. Cayleigh passed her driving skills test to obtain her driver’s license and scheduled classes for senior year. She is taking a Jewelry and Metals class and enjoys working with her hands. It is a nice follow-up to Industrial Tech (wood shop) last year and expands her skill set with soldering.
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Things have been pretty quiet for me lately. I went to a couple of Blue Jackets games, but not much else has taken place that’s worth mentioning. Both games were losses, but there’s been a lot of that this year since the Jackets lead the NHL in injuries by a significant margin. We have three or four games left on our ticket plan this season, so we’re hoping they have some good quality hockey left in them this year. | | |
Current Economic and Investment Information | |
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TIME TO BUY – You’ll find deals on big-ticket items around Presidents’ Day weekend (Feb. 18-20). Big sales on furniture and large appliances like washing machines, dishwashers and refrigerators. Cold-weather clothing items like winter coats, hats, gloves and boots. The best deals of the year for mattresses are during Presidents’ Day weekend. (source: Consumer Reports)
PENNY PINCHING FOR RETIREMENT – Employees, on average, contributed 6.4% of income into their 401(k) plans in December 2022, which was down from the 6.6% a year prior. Overall, 26% of participants contribute 3% or less of income to their 401(k) plans. This rate is highest among baby boomers, where 43% contribute less than 3%. Millennials are among the biggest savers, 47% contribute 7% or more of their income to 401(k) plans. (source: Bank of America)
HOMEOWNERS INSURANCE – Inflation is striking homeowners insurance. The average premium rose 12.1% from May 2021 to May 2022. There’s some evidence of easing in 2023 — to 3%, with a cumulative hike over 2 years of 15%. (source: Policygenius & Bankrate.com)
DIVIDEND YIELDS LOSE THEIR ALLURE – The yield on the 2-Year US Treasury note stood at 4.45% on 2/8/23. In the S&P 500 index, there are just 20 stocks that have a higher dividend yield than the yield on the 2-year Treasury. Today the average yield for the S&P 500 is 1.7%. (source: Bespoke Calculations)
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Underlying Inflation Gauge
The Underlying Inflation Gauge (UIG) captures sustained movements in inflation from information contained in a broad set of price, real activity, and financial data. To view the full, interactive graph, click the link below.
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Click here to view the source. | |
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You Might Live Longer Than You Think.
Your Finances Might Not.
Financial planning tends to overlook longevity, a factor that can far exceed life expectancy
By Josh Zumbrun
Source: The Wall Street Journal
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Here are two numbers that people ought to know but often don’t: how many more years they are likely to live and the probability of living much, much longer.
The good news is that many Americans live a lot longer than they expect. The bad news is that this often leads to financial regret as they realize, sometimes too late, they might have claimed Social Security too early, passed up the opportunity to buy annuities or long-term-care insurance, or simply undersaved for all those added years of retirement.
Demographers and actuaries make the following distinction between life expectancy and longevity: Life expectancy refers to the average number of years someone will live from a given age, whereas longevity refers to how long he or she might live if everything goes well, typically expressed as the probability of living beyond a certain age such as 85, 90 or even 100.
A growing body of evidence shows that many people are ignorant of their so-called longevity risk—the probability of living a very long time—and the complications that presents.
Click here to continue reading this article.
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61 Travel Tips to Make You the
World's Savviest Traveler
By Matt Kepnes
Source: NomadicMatt.com
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Our original plan for February was to do our webinar on travel. Since we were unable to bring that plan to fruition, we have decided to share this list of travel tips. We hope you'll find it useful!
Click here to continue reading this article.
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“Spring's first heartbeat honors Winter's last breath.”
- Angie Weiland-Crosby
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Alexander Financial Planning |
1621 W. First Avenue
Grandview Heights, OH 43212
614-538-1600
Registered Investment Advisor
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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. | | |
© Alexander Financial Planning, Inc. | |
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