Insights

Five Financial Planning Secrets of Millionaires

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You might be surprised: Most millionaires don’t feel rich. Instead, they have smart goals, discipline and a little help along the way.

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What to expect between Election Day and the Inauguration

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With the U.S. presidential election less than two weeks away, Americans may be looking forward to the end of a tumultuous political campaign season. However, if past trends are any indication, November 5 could be just the beginning.

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Great savers could face a ‘tax time bomb’ in retirement, advisor says — here’s how to avoid it

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Key Points:

If you’re nearing retirement with a large pre-tax 401(k) plan or individual retirement account balance, you need to a plan for managing future levies, experts say.

With Required withdrawals approaching, great savers could face a “tax time bomb” in retirement, said Scott Bishop, partner and managing director of Presidio Wealth Partners.

Only 3 in 10 Americans have  a plan to reduce taxes on retirement savings, according to a January study form Northwestern Mutual.

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Do You Qualify for Social Security Spouse’s Benefits?

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Social Security benefits are a crucial part of the retirement income for millions of Americans.

If you don’t have enough Social Security credits to get benefits on your own work record or your own benefit is small, you may be able to receive benefits as a spouse. Your spouse must be receiving benefits for you to get benefits on their work record. If your spouse does not receive retirement or disability, you’ll have to wait to apply on your spouse’s record.

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4 Insights from Fund Managers’ Recent Trip to China

Image_China article_2024.09At CAM, we believe in the deep dive.  And we recommend fund managers who feel the same.  We are not talking about excessive or un-necessary risk, but rather the drive and discipline to thoroughly vet investment opportunities.  American Funds’ managers recently toured China to explore the investment landscape in the world’s second largest economy.  Here is what they learned.

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How do stocks perform after the Fed cuts interest rates? Pretty well, actually.

Fed chair imageThe stock market has had a nice run in 2024, but investors have been nervous lately, because many are concerned that a slowing economy may tip over into an outright recession. To thwart that possibility, the Federal Reserve stands poised to lower interest rates, providing stimulus to consumers and businesses, some of whom have been reeling despite overall economic growth.

Will lower interest rates be enough to put a floor under the economy and turn things around, or is the Fed’s first interest rate cut the signal for the bottom to fall out of the market? The question plagues many investors, but recent research suggests that they should be optimistic.

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What Is A Black Swan Event?

image black swanBlack swan populations are small, and it is rare to come across one. The term “Black Swan” has been adopted my financial market participants to mean rare and unpredictable events, typically negative ones. Black swan events may have severe consequences, and can lead to major losses in the markets and harm for the economy.

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The Economic Impact of Higher (and Lower) Rates

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Over the last several years, many of our clients who prefer to hold significant amounts of cash for unplanned emergencies or near-term purchases–as we frequently recommend–have benefited greatly from higher interest rates.  After many years of ultra-low interest rates, these clients have finally been rewarded with respectable returns on their cash holdings.

Others seeking to purchase a house or car were not so fortunate.  For these individuals, borrowing costs often made financing far less attractive and limited buying capacity, given that inflation had already taken a toll on pricing.

Now that the Fed appears poised to begin a rate cutting cycle, we thought it may be interesting to take a brief look at how interest rates affect the economy.  As you will see, the impact of interest rates is quite extensive:

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How Elections Move Markets in 5 Charts

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How much do elections impact the stock market and portfolio returns? Should elections even matter to long-term investors in the first place? These are the questions investors and financial professionals are facing as we approach November 5.

To provide answers, we’ve analyzed more than 90 years of market and election data and identified five ways that elections influence stock returns and investor behavior.

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Utilizing a Spousal Lifetime Access Trust

Opening a trust fund is a common tool used to preserve and transfer your wealth in estate planning. Trusts can help mitigate estate taxes and help beneficiaries avoid probate court after you pass away, all while ensuring your assets are managed according to your wishes. For married couples, typically those who have a high net worth, a Spousal Limited Access Trust (SLAT) could be an efficient wealth-preserving strategy. These irrevocable trusts allow one spouse to transfer assets such as cash, marketable securities, real estate, and life insurance, to a trust that benefits the other spouse.

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