Posted on April 14, 2023
Keeping Your Wealth Management Portal Up to Date
Your CAM wealth management portal allows you to aggregate your assets and liabilities, so that you can clearly see and understand your financial position in real time at any point in time. The aggregation process requires just a few minutes of your time to connect each financial account and debt obligation.
Given that we are all busy and time is always of the essence, why are connections so important? Why is the process worth a few minutes of your time?
Posted on April 14, 2023
The Importance of Good Processes in Wealth Management: Achieving Positive Outcomes
At CAM, we never underestimate the importance of process.
Good processes are just as important in wealth management as they are in any other endeavor. When it comes to managing your wealth, having well-defined processes in place can help you achieve positive outcomes, such as growing your wealth, minimizing risks, and facilitating financial stability.
In this blog post, we will explore the relationship between good processes and positive outcomes in wealth management and why they are essential for achieving financial success.
Posted on April 14, 2023
SECURE 2.0: Rethinking Retirement Savings
From RMDs to student debt, the new law has something for everyone.
Key takeaways
- The age to start taking RMDs increases to age 73 in 2023 and to 75 in 2033.
- The penalty for failing to take an RMD will decrease to 25% of the RMD amount, from 50% currently, and 10% if corrected in a timely manner for IRAs.
- Starting in 2024, RMDs will no longer be required from Roth accounts in employer retirement plans.
- Catch-up contributions will increase in 2025 for 401(k), 403(b), governmental plans, and IRA account holders.
- Defined contribution retirement plans will be able to add an emergency savings account associated with a Roth account.
The SECURE 2.0 Act is now law. The legislation provides a slate of changes that could help strengthen the retirement system—and Americans’ financial readiness for retirement.
Posted on January 27, 2023
Key Tax Moves for 2023
Consider ways to help reduce taxes on your income and investments by acting now.
Key takeaways
- Wider tax brackets, a higher standard deduction, and expanded saving opportunities may help create new tax-saving possibilities for 2023.
- Don’t wait until the end of the year. There are tax-planning strategies to consider throughout the year, like maximizing credits and deductions and using tax-smart investing strategies.
- A tax advisor and financial professional can help you build a tax-smart investing plan that works for you all year long.
As we turn to 2023, there are plenty of uncertainties. Will the Fed engineer a soft landing for the economy? Will inflation slow? Will the stock market revive? Will interest rates come down? During uncertain times like now, it’s valuable to focus on things we can control—taxes, for example. While you generally can’t avoid taxes, you may be able to minimize them with a bit of thoughtful planning.
Here are 7 tax-smart steps to consider early in the year that are designed to help you keep more of your money—and put your savings in a position to grow too.
Posted on January 27, 2023
Security and Your Wealth Management Portal
As our world becomes increasingly digitized, cybersecurity has never been more important. Today, it is wise to be concerned and remain vigilant.
CAM has always prioritized your privacy, the security of your personal information and assets. Over the years, we have put many safeguards in place to limit opportunities for your data to ever be compromised.
Our Wealth Management Portals are one example. While we believe strongly in the benefits of aggregation—allowing clients to see all aspects of their finances—we are committed to working with a developer who takes security as seriously as we do.
Here is what you should know:
Posted on December 16, 2022
Turning Lemons into Lemonade
As the old adage directs, when you are dealt lemons, make lemonade. It’s time to be opportunistic.
We all know it has been a volatile year in the markets. As 2022 draws to a close, we are in the process of utilizing any losses our clients may have experienced in taxable accounts to trim positions which have out-performed.
Here’s what you need to know:
- The process we employ is an IRS approved strategy, known as Tax Loss Harvesting. We will realize losses in taxable accounts to offset gains.
- The objective is to re-position accounts without significant unwanted tax liability.
- Tax loss harvesting allows us to maintain an allocation appropriate for each client’s objectives, risk tolerance and time horizon.
- The proceeds of any sale will either be reinvested in a new position, with similar aims, or redirected to an existing position. As always, we will be guided by each client’s Investment Policy Statement (IPS).
- The Wash Sale Rule prohibits us from buying back the same security for at least 30 days.
- The Wash Sale Rule also mandates that the two investments—the one sold and the one purchased—be distinct.
The IRS can negate the tax loss for failure to follow the rule.
Many of our clients will see increased trading activity on their December statements. The trades will include both sales and purchases.
Tax loss harvesting is a thoughtful way to take advantage of an unwanted investment result, turning a negative into a positive. In other words, making lemonade.
If you have any questions, we will welcome your call.
Todd
Posted on December 16, 2022
12 Last-Minute Tax Tips for 2022
Act now to save money on 2022 taxes.
Key takeaways
- Retirement savings plans such as 401(k)s and 403(b)s have a December 31 deadline for contributions through payroll deductions.
- If you itemize, consider charitable contributions and accelerating medical expenses.
- If you’re 72 or older, consider strategies to reduce taxes on required minimum distributions (RMDs) from retirement accounts, such as a qualified charitable distribution.
As the end of the year approaches, the clock is ticking for important choices that could help lower your tax bill for 2022. With inflation cutting into paychecks and taxes scheduled to increase after 2025, you’ll want to snag every tax break you can now. Here are a dozen tax tips to consider before year-end to help trim your 2022 tax bill—and set you up for success in the years ahead.
Posted on December 16, 2022
New Year’s Financial Resolutions: Get Your Finances in Shape for 2022
Reshape your finances in the year ahead with these five resolutions.
If you’re someone who likes to make resolutions on New Year’s Day, you already know how hard it is to stick to them. Here are five resolutions that can help increase your financial fitness and hopefully inspire you to stay committed to them in the new year.
An added bonus is that the steps below are also steps we suggest that all investors take as part of creating a financial plan, the foundation, we feel, for any investor looking to own, plan for, and then take the steps needed to save, invest, and reach their financial goals.
Posted on November 17, 2022
Guide to Recessions: 9 Key Things You Need to Know
You have likely heard the ‘R’ word several times recently. Many analysts, CEOs and investors believe the chances for a Recession next year are increasing. With all the chatter, now may be a perfect time to examine what the term means, the typical catalysts, how long it may last, and the impact it could have on consumers and investors.
Guide to Recessions: 9 Key Things You Need to Know _ Capital Group (002)
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Posted on January 27, 2023
Control What You Can Control
by C. Todd Fry, CIMA(R), CFS
By all accounts, last year—2022—was a challenging year for investors, both for those seeking appreciation in equities and those wanting the relative stability of fixed income (bonds). We saw interest rates rise at an unprecedented and unexpected rate. As a result, both asset classes faltered.
The good news—last year was not the norm. Rarely do we see stocks and bonds decline in concert. While we see a reversion to the mean on the horizon, we feel it is likely that much of 2023 will still be dominated by spates of volatility—although to a lesser extent than we saw last year. Investors need clarity on inflation and interest rates.
Additionally, the probability of a recession is increasing. Recessions should not be feared but accepted as a normal aspect of a healthy economy, which is destined to cycle from peak to trough. Unfortunately, no one knows when those points will occur. The key consideration to remember, as we shared last month, mild to moderate recessions provide a needed opportunity for the economy to reset and prepare for future growth.
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