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We have been fortunate in central Ohio to dodge some wild weather, but not the smoke from the Canadian forest fires! Yet there have been so many fun things to get out and enjoy. County fairs are in full swing, sporting events, concerts, art festivals; you name it, there's something for everyone to do this time of year. No matter where you are, we hope you have been able to take a bit of summer in and make some summer memories with good company! | | |
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AFP Office Move – Just a reminder that we have MOVED! Construction of our new space (while we've been in it) is nearing an end. Our kitchenette should be done in the next two weeks! Please note the new address below.
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Save the Date: OPEN HOUSE (OFFICE) CELEBRATION – We will be hosting an open house on Thursday, September 14th. We are looking forward to welcoming you to our new space. Additional details coming soon.
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Schwab Migration – The transition from TD Ameritrade to Charles Schwab is scheduled for Labor Day Weekend (Sept. 2 - 4). Schwab will be sending via the US Postal Service a packet (per account) to all current TD Ameritrade account holders. The packet will include your new eight-digit account number and key information about the transition. Please expect this in your mailbox around August 1st. Transition information is also available at welcome.schwab.com/alliance. Please call if you have any questions.
- AFP 3rd Quarter Webinars:
If you would like to attend, please send an email to [email protected] or you can go to our website and sign up there as well.
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July: "Midyear Investment Update" with Teri R. Alexander CFP®, MSFP, CeFT®, AIF®.
- What happened in the first half of 2023, where we are now, & how are things shaping up for the second half?
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August: "Financial Life Planning Overview" with Teri Alexander CFP®, MSFP, CeFT®, AIF® and Nathan Swab CFP®, AWMA®.
- Let's take a deep dive into what financial life planning is and why everyone needs a personal financial roadmap.
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September: "The New Retirement" with guest speaker, Virginia Macali, JD, MS, founder of High Point Transitions.
- Financial planners can run the numbers to determine if you are financially okay to retire from your current job, but are you emotionally ready to retire to your next stage of life?
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Summer seems to be flying by and it has been a packed month. There have been plenty of move-in tasks and items to address at work. Of course there is the daily dog walking, frequent weeding and mowing (seems daily) to dos: rinse and repeat. My son has been recovering from his bicycle accident last month and surgery is still a possibility for his broken collarbone. Time will tell if they think he needs to go this route. Gene had his 50th high school reunion and that was really fun to take in as we both attended Dublin High School and I knew many of these people (I’m just a little younger!). We also went to the Jazz concert at the Columbus Zoo and it was a wonderful evening. I have started stepping up my training for the ½ Marathon in October and I did my annual black raspberry picking earlier this month. There is a jar of jam in the office if you happen to stop by! | | | |
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The Smokey Mountains in Tennessee were on the schedule this month. We spent a week there and enjoyed the mountain views. While there are some places that can be overwhelmingly crowded down there, other spots are peaceful and relaxing. Thankfully our cabin was far from the crowds and noise of the touristy areas. It was fun to explore the park, although the size of the crowds was a bit surprising. If you go to Smokey Mountain National Park, the earlier in the day the better. My main goal was to relax and I was definitely able to do that. I read some books, watched some TV, and we played a number of board games as a family. It feels good to come back from vacation refreshed. | | | |
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We enjoyed an amazing adventure in June. It began at Hot Springs National Park in Arkansas, then a stop in Guthrie, Oklahoma. We had fun exploring this original capital of OK, which bears our namesake. From OKC, we picked up historic Route 66 stopping at attractions along the way. We spent time in Santa Fe, NM before heading north to Durango, CO. We drove the San Juan Skyway (aka The Million Dollar Highway) to Montrose, CO. The Black Canyon of the Gunnison is known as the “Grand Canyon of the Rockies”, carved by the Gunnison River and over 2,000 feet deep. It is one of many stunning sights! Final stops included Colorado Springs and St. Louis. Cayleigh added a dozen NP Jr. Ranger Badges to her collection.
It was nice to return to work at our new location. I spent part of the first week setting up my workspace. Other happenings in July have included Red, White & Boom, a college visit to BGSU, and a knitting class. The weekends continue to be booked up. Soon we will be beyond ready for some rest.
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The last month as been fairly hectic for me. My parents went on a three week Alaskan cruise, which overlapped almost exactly with Tracey’s vacation. So while I was filling in for her at work, I was also house sitting for them. Which, was really more glorified babysitting, as I had to keep track of my younger brother the whole time. I did manage to string together a few days off around the 4th, so I was able to decompress a bit after feeling under water for the better part of a month. | | |
Current Economic and Investment Information | |
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YEAR THREE STRONG EXCEPT Q3 – The S&P 500's performance during year three of the Presidential Election Cycle has historically been the best of the four-year cycle. However, Q3 of the third year has historically proven weak. Since 1928 the third year is the only year that Q3's average return has been negative. (source: Bespoke)
USED CAR PRICES BREAKDOWN – Used car prices in the US declined 4.2% month over month in June. This is the largest decline since April 2020 and the largest on record for June since 2009. Prices declined 10.3% on a year over year basis with every market class posting declines. (source: Manheim)
COLA LOSING ITS FIZZ – The highest inflation in decades resulted in Social Security's annual Cost of Living Adjustment (COLA) to spike up to 5.9% in 2021 and 8.7% in 2022; the highest increases since 1982. With inflation cooling, 2023's increase is expected to fall to 3%. (source: SSA)
LESS INTEREST IN CHAT GPT – Google search interest in "Chat GPT," an app that allows users to have text-based conversations with AI, exploded over the first four months of 2023. However, by the first week of July, Google search interest had fallen to just 31% of its peak. (source: Google Trends)
CARING FOR A LIVING – About 14% of women age 25-54 in the US don't work because they are full-time caregivers, a number unchanged since 2003. Just 1.5% of men in that age range are full-time caregivers, but that amount has doubled over the last 20 years. (source: Minneapolis Fed)
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Disinflation
The Disinflation trend seems to be taking shape globally. In June the CPI report showed inflation at 3.1%, well below the peak inflation of 8.9% y/y a year ago. This trend is not unique to the U.S. The OECD reported softening inflation in most major economies to 6.5% y/y in May, the lowest level for global inflation since December 2021. There are some outliers in some of the developed countries, but on balance the global economy is experiencing a disinflation trend.
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Retiree Medical Costs Are Expected to
Moderate but Remain High
Coming changes to Medicare rules for prescriptions drugs may help rein in retiree
health costs, but they will still be high,
By Ann Carns
Source: Rethinking65.com
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Retirees just got some encouraging news: Coming changes to Medicare rules for prescription drugs may help rein in their health costs.
In part because of recently enacted limits on retiree prescription drug costs, the estimated cost of health and medical care in retirement overall didn’t rise this year, according to an annual analysis from Fidelity Investments.
A 65-year-old retiring this year can expect to spend an average of $157,500 on health and medical costs over a roughly 20-year retirement, said Hope Manion, senior vice president and chief actuary at Fidelity Workplace Consulting. The estimate is the same as it was in 2022 — the first time in almost a decade that the company’s year-to-year projection has stayed flat.
While the latest estimate is a “welcome reprieve” from years of increasing health costs, Manion said, “it’s still a big honking number.” This year’s estimate is almost double the company’s estimate of $80,000 in 2002.
Click here to continue reading this article.
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2023 Gift Tax Limit and Rates:
How It Works, Who Pays
Two things keep the IRS out of most people's hair: the annual gift tax exclusion and the lifetime exclusion.
By Tina Orem & Sabrina Parys
Source: NerdWallet
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Sending a $50 bill with your niece's graduation card? No need to sweat the federal gift tax. But if you're dispersing millions worth of gifts over the course of your lifetime, you may have to cut a few extra checks to the IRS.
What is the gift tax?
The gift tax is a federal tax on transfers of money or property to other people who are getting nothing (or less than full value) in return. It is typically paid by the giver, not the recipient.
Two factors come into play when it comes to calculating how much you can give away before owing taxes on the gifted amount: the annual gift tax limit and the lifetime gift tax limit.
If you exceed the annual gift tax exclusion, you must file a gift tax return with the IRS, and the excess of your contribution will get added toward your lifetime gift tax exclusion. Once you exhaust your lifetime exclusion, you may begin to owe gift taxes.
Click here to continue reading this article.
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“Sun is shining. Weather is sweet. Make you wanna move your dancing feet.”
- Bob Marley
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Alexander Financial Planning | |
3600 Olentangy River Rd, Ste. C2
Columbus, OH 43214
614-538-1600
Office Hours: Monday - Friday
9:00 AM - 5:00 PM
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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