• Schwab Update, Sharing Account Access – The migration of TD Ameritrade to Charles Schwab is complete. One hiccup of note, we have received a few calls related to the ‘read-only viewing access’ for clients with partners. The authorization to view each other's accounts did not transfer to Schwab. The good news is it can fixed. We will be sending an e-mail with instructions to those impacted by the end of next week.

• Tech Talk – Do you use Microsoft Office on your personal computer? If so, are you due for an upgrade? Microsoft is no longer supporting Office 2013 as of April 11th. So if you are on this version or an older version, you could be exposing yourself to serious and potentially harmful security risks. For Apple users, there is an upgrade as well to version 16.6.1 or 17.

• Five Star Wealth Manager – For the third time (second straight year) AFP has received the Five Star Wealth Manager award for being among the top wealth management firms in Columbus.

• AFP Open House – Thank you to everyone that attended our Open House last week! It was great seeing all of you and we hope you had as good a time as we did. We also want to thank everyone that called, sent cards, and gifts!

Virginia Macali, JD, MS, founder of High Point Transitions

• AFP September Webinar – "The New Retirement" with guest speaker, Virginia Macali, JD, MS, founder of High Point Transitions on Friday, September 29th at noon. This will be a discussion on the non-financial aspects of retirement. Finding greater fulfillment in retirement by uncovering those desires which give you meaning and purpose.

• How do you attend? Let Erik know at edanielson@afp-advisors.com. A webinar link will be sent via email the morning of the webinar to those who have expressed an interest in attending. If you know anyone who would like to attend, please pass along the webinar email to them.

• AFP 4th Quarter Webinars:

If you would like to attend, please send an email to edanielson@afp-advisors.com or you can go to our website and sign up there as well.

• October: "Year-End Tax Moves"

• November: "Charitable Giving"

• December: "Untangling Social Security"

Click below to read our September 2023 Blog edition.

High Earners 50 and Up Get Two-Year Reprieve From IRS on 401(k) Rule

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

DEEPLY INVERTED CURVES – Deeply inverted yield curves usually precede periods of below average equity market returns. Following periods when the 10y-3m US Treasury yield curve was inverted by more than 100 basis points, the S&P 500’s average return over the following year has been a gain of 1.6% with positive returns just 44% of the time. (source: Bespoke)

A COOLING CORE – Consumer price index (CPI) increased from 3.2% to 3.7% in August, but the core reading fell from 4.7% to 4.3%. The 2.3 percentage point decline in Core CPI from its peak of 6.6% in November, is the largest decline from a 12-month high since September 1983. (source: BLS)

WEALTHY SEEKING ADVICE – In a recent Harris Poll, 70% of millionaires said they work with a financial advisor compared to just 37% of the general population. 53% of millionaires said their financial advisor was their most trusted source of financial advice, with spouses/partners at just 11%. (source: Northwestern Mutual)

15 YEARS LATER – September 15th marked the 15th anniversary of Lehman Brothers’ bankruptcy filing. From close on the Friday before Lehman filed (9/12/08) to the low on March 9, 2009, the S&P 500 declined 46%. Despite that initial drawdown, the S&P 500’s total return in the fifteen years since that Friday is 380.8%, or 11% annualized. (source: Bespoke)

SECOND HALF SEPTEMBER SLUMPS – The last two weeks of September are historically among the weakest two weeks of the year. Since 2003, the S&P 500’s average change in the last two weeks of September has been a decline of 1.02% with gains just 30% of the time. The only two-week period that has been weaker is the two weeks after the close on 2/21, when the S&P 500 has averaged a decline of 1.16%. (source: Bespoke)

Sentiment Chart

There are numerous indicators that economists track to gauge which way the markets may move. One sentiment chart called the Smart Money/Dumb Money Index (courtesy of SentimenTrader) is shown below. Although we are not a fan of the name, it does get one’s attention. The “Smart Money” measures the sentiment of institutional sized transactions while the “Dumb Money” measures smaller, more typical retail investor transactions. On balance, when the “Smart Money is in an upward trend and the “Dumb Money” is in a downward trend, that bodes well for stock markets and vice-versa. The "Dumb Money” tends to trend-chase, and is often poor at market time, but is a good indicator once a trend has been identified. Sentiment charts seem to validate or invalidate after the fact, but are still a good indicator to confirm a trend direction.

Roth vs. Traditional 401(k):

Where to Put Your Money for Retirement

You don't have to think like a tax accountant, actuary and investment adviser to get it right.

By Anne Tergesen

Source: The Wall Street Journal

The 401(k) was built on a simple idea. Set aside money from each paycheck to save for tomorrow and get a tax break today.

Many workers now have another option: Save the tax break for tomorrow, too. 

That is the promise of the Roth 401(k), a relatively new retirement tool that is funded with after-tax money and grows tax-free in the years after. In many ways, it is like the Roth IRA, but with the additional benefit of allowing workers to save significantly more than is possible in an IRA, not to mention the company match. 

Thousands of companies have added Roth 401(k)s to their retirement plans, one of many new—and sometimes confusing—options designed to give workers more flexibility in retirement saving. Putting money into Roth 401(k)s could give savers more spending money, and lighter tax burdens, in old age.

Click here to continue reading this article.

Medicare Premiums Are Going Up Next Year.

Here's How Much

You can expect Medicare Part B Premiums to get more expensive in 2024,

while Part D will likely be slightly cheaper.

By Katie Teague

Source: CNET

Medicare Premium costs will be changing again, starting in 2024. Medicare Part B costs are expected to get more expensive, while Medicare Part D prices are projected to decrease. We'll tell you how much below.

Each year, the Social Security Administration determines what the costs associated with the Medicare program will be. It then either raises or lowers premiums and deductibles using rules set out in the Social Security Act.

Here's how much prices could change if you receive Medicare Parts B and D. In addition, if you receive Social Security, here's how much the COLA increase is expected to be next year.

Click here to continue reading this article.

Can Taking Vacation Prolong Your Life?

Here's What Experts Say.

By Jamie Davis Smith

Source: Yahoo! Life

Do You Need a Reason to Get Away?

If you’ve been banking vacation days or haven’t found the time to plan a trip - STOP IT! According to a recent study taking time off can boost your creativity, improve relationships, make you a better parent, get you raise, and even lead to a longer life!

Click here to continue reading this article.

“Another fall, another turned page: there was something of jubilee in that annual autumnal beginning, as if last year's mistakes had been wiped clean by summer.”

- Wallace Stegner