David Henderson, CFP, Chfc, CLU

12/17/2024

In 2024, we all experienced inflation in different ways. Some felt it at the grocery store, others while traveling, or when dining out.

But I would argue that the inflation story is mostly positive at this point. The overall trend is lower, which has made the Fed comfortable enough to begin lowering short-term interest rates.

11/05/2024

Did you know that a Republican or Democrat sweep is the most likely election outcome since 1900? Check out the 8 possible scenarios following the election.

I am very surprised that two scenarios have never happened!

10/29/2024

The IRS has released the 2025 tax brackets with a 2.8% inflation adjustment—the smallest increase in several years.

Here's what's changing:
➡️ Standard deduction for married couples filing jointly rises to $30,000
➡️ Single filers' standard deduction increases to $15,000
➡️ Annual tax-free gift limit grows to $19,000 per recipient
➡️ Estate tax exclusion reaches $13.99 million (up from $13.61 million)
➡️ Earned Income Tax Credit maximum increases to $8,046 for qualifying families

Understanding how tax brackets work remains crucial: you're only taxed at higher rates for income above each threshold, not your entire earnings. For example, if you're married filing jointly, you'll pay 10% on the first $23,850 of taxable income, then 12% on earnings above that amount.

Important note: Some provisions aren't changing in 2025, including the $10,000 SALT deduction cap and the $2,000 Child Tax Credit. ⚖️


Source:

The IRS has adjusted tax brackets and dozens of other provisions for inflation. Here's how that will impact your taxes.

10/15/2024

👉 The best time to start saving for retirement was 20 (or 30) years ago. The second best time is today!

👉 Workers between 45 and 54 years old had a median account balance of roughly $60,000 in employer-sponsored retirement plans such as 401(k)s at Vanguard Group in 2023.

👉 A good first step many financial advisers recommend is a thorough analysis of your finances. You can start with your spending. It might not be a fun exercise, but taking stock of your expenses can help you understand what you’re spending on necessities and what you’re spending on everything else.

👉 There is no right way to prepare for retirement. Some people might prioritize spending on travel and experiences now, rather than socking away the money for their later years. That comes with a cost, however.

👉 “There’s no magic in saving for retirement,” said Kathleen Grace, chief executive of Fiduciary Family Office. “You have to have the determination and you’re going to have to make sacrifices along the way.”

Many financial advisers say people in their 40s and 50s still have time to increase their savings rate and develop a road map for their later years.

09/17/2024

Social Security benefits for 2025 are expected to increase, but perhaps not as much as they did in previous years, which is good news.

👉The 2025 cost-of-living adjustment, or COLA, is expected to be 2.5%.

👉The 2024 increase was 3.2%, 2023 was 8.7% and 2022 was 5.9%.

👉Why is a lower COLA good news? It means inflation is coming down.

👉The Social Security Administration sets its yearly COLA based on inflation during the third quarter, or from July through September.

09/11/2024

-> Today, we honor the brave men and women who stood united on September 11, 2001. Their courage and sacrifice will never be forgotten. 🇺🇸

-> Reflecting on the resilience of our nation and the strength we found in each other.

-> Let’s take a moment to remember the heroes and pay tribute to the lives lost on this solemn day.

->Together, we stand stronger—honoring the unity, bravery, and compassion shown in the face of tragedy.

->We will always remember the spirit of hope and unity that emerged from the darkness.

09/05/2024

Holy smoke!

If this is all true it does not speak well of Chase Bank.

There are some really bad people in the world.

September 05, 2024 -- Jason Valasek, an Arizona business owner, lost $320,504.24 in a fraud scheme involving a Chase Bank employee and an ex-felon. His account was closed without consent, leaving his business struggling and him facing $3 million in debt.

08/30/2024

❗Beware! When interest rates decline, scams will increase.❗

🔥🔥This is a great article by Jason Zweig from the Wall Street Journal detailing one example of ridiculous offers by questionable characters.

⚠️It is a bit long, but the main point is that if you see offers for "safe" accounts or investments promising unusually high rates of return, BE VERY CAREFUL. ⚠️

⚠️There is no magic in finance. Unfortunately, there are shysters in finance.

⚠️Do your homework and don't send anyone money until you read and understand all the details.

08/28/2024

The latest Fed minutes suggest we might see an interest rate cut as soon as September. Here's what you need to know:

▪️ Most Fed officials believe easing policy could be appropriate if data continues as expected
▪️ Markets are fully pricing in a September cut
▪️ Inflation is moving towards the 2% target, but labor market risks have increased

What does this mean for your portfolio? It's a great time to review your investment strategy and consider how potential rate changes might impact your financial goals.

Stay tuned for more updates, and don't hesitate to reach out if you have any questions about positioning your finances in this changing economic landscape!


Source:

The Federal Reserve on Wednesday released minutes from its July 30-31 policy meeting.

08/19/2024

Here's how to find out if your Social Security number was included in last week's massive data breach

You've likely never heard of National Public Data, the company that makes its money by collecting and selling access to your data to credit card companies, employers, and private investigators. It now appears that the hacker group USDoD snatched about 2.9 billion of its records. Odds are that your records - including, possibly your Social Security number (SSN) - are in those databases.

There's a site from the personal security company Pentester that can tell you if your SS number was exposed. https://npd.pentester.com/search

It requires that you input your first name, last name, year of birth, and what states you've lived in. If your SSN was leaked, the site will present you with a chart showing your address in the record and the last two numbers of your SSN.

I tested this tool and found that my information had been exposed. 😡

If your data has been compromised, what should you do? Below are 3 steps to help mitigate your risk.

✅ #1 - If your SSN was leaked, check your credit reports (Experian, Equifax, and TransUnion) for any unauthorized activity (and do so regularly going forward!). Report any suspicious transactions to the credit bureaus, via their websites, and place a credit freeze to prevent new accounts from being opened in your name.

✅ #2 - Enable two-factor authorization on all of your financial accounts. I understand that it can be inconvenient to get a code texted to you each time you want to log into your accounts but just think how inconvenient recovering from identity theft would be.

✅ #3 - You should also stay vigilant against phishing attacks. Be cautious of emails, texts, or calls that attempt to solicit personal information. Scammers will use your leaked data to craft convincing phishing attacks. For example, I recently got an email claiming to be from PayPal indicating money had just been transferred from my account. It directed me to a link in the email to dispute the withdrawal. It was a complete scam but it looked very real at first glance. BE CAREFUL!

In addition to the tips above you may want to sign up for an identity theft and credit monitoring service as one more layer of protection.

This latest data breach is just the most recent in a long line of reported cyber hacks. We have to stay vigilant and this is our new normal.

https://qz.com/national-public-data-lawsuits-data-hack-social-security-1851625502

08/16/2024

The Fed's holding steady on interest rates, but markets are getting antsy (and so am I)!

Some economists think the Fed should start easing up, and the markets are pricing in rate cuts as early as September. However, the Fed wants "greater confidence" that inflation is heading back to 2% before cutting rates.

Remember, a changing rate environment can impact various aspects of your financial picture. It's always wise to stay informed and consider how economic shifts might align with your long-term goals.

What are your thoughts on the Fed's approach? Let's discuss! 💬


Source:

Markets are pricing in an aggressive path for interest rate cuts starting in September.

07/18/2023

Some things to think about for anyone heading into retirement

Thinking about early retirement? It may seem like a dream come true, but being thoroughly prepared is crucial to avoid potential complications. Take the time to carefully consider all the factors involved.