Axiom | Vol 260

Happy Father’s Day! | FOMC Governors Note Inflation Rising – But Are Markets Overreacting?

Meet The Axiom®’s Guest Editor: Keith Butler, JD

I’m Keith Butler, a Wealth Manager at Annex Wealth Management.

As a Wealth Manager, my job is to serve as the Annex team’s main contact for a group of clients, by getting to know each of them and their unique needs, and by making sure they are benefitting from, and to introduce them to all of the services Annex has to offer.

I am honored to serve as Guest Editor of Axiom on Father’s Day, 2021. About 23 years ago I married into an amazing family, with my wife, Linda, and three stepchildren. Now all of them are married and have children of their own, five in all, ranging in age from (almost) 2 to 4.


FOMC Governors Note Inflation Rising – But Are Markets Overreacting?

This week’s FOMC meeting closed with Chairman Jerome Powell taking a dovish tone about inflation. The markets are troubled by the potential of interest rates rising – but are they overreacting? Annex Wealth Management’s Dave Spano and Derek Felske discuss.


Poll Recap: Have you booked a stay with Airbnb or VRBO?

Are seniors starting to get the hang of Airbnb?

According to Airbnb, senior adults are the fastest-growing segment of travelers. Prior to the pandemic, the percentage of seniors booking lodging on Airbnb was growing at strong double-digit annual rates. Many retirees and other senior adults are also serving as hosts.

In our latest poll, we asked readers if they’ve booked a stay with Airbnb or VRBO – the majority of respondents were above 60, and only 44% of them answered yes.

Maybe it’s time to consider staying in a private home versus a hotel on your next vacation. In addition to more space and privacy, Airbnb’s are often generally more convenient for seniors. Guests can park in the driveway, close to their room and avoid going up and down elevators with luggage. However, some find renting a little too adventurous for their taste – as quality standards of a rental are a gamble compared to a trusted hotel chain.

What about hosting? Renting out your home or an extra room could provide a new source of retirement income. More than 400,000 seniors are currently serving as hosts for Airbnb rentals, a number that’s rising. Airbnb says seniors are also among the most favorite hosts, with 85% of them earning the top five-star rating from guests.


When To Review Your Estate Plan

Estate planning, like financial planning, is an ongoing and evolving process that requires regular check-ins and reviews to ensure everything is in order. 

In previous MoneyDos, we’ve discussed the importance confirming account titling and beneficiary designations so that everything with your estate plan is aligned. Your MoneyDo this week: Review Your Estate Plan. It’s important to remember that experiencing certain key life events should prompt you to dust off your estate planning documents and review them, such as: 

    • Changes in family status impacting anyone named in your estate plan, such as marriage, divorce, death or new family members; 
    • Change of your primary residence to a different state; 
    • Changes in your financial situation, such as changes in your employment status, including retirement, sale or transition of your closely-held business, or an inheritance; 
    • Changes in your health or insurance coverage (health, life, etc…); 
    • Changes in tax laws that may impact inheritance of funds, which could include income, gift and/or estate taxes changes; and 
    • The passing of time itself. Make sure you’re reviewing the plan every three to five years to make sure you have a good understanding, and everything is in order. 

When you review your estate plan, your review should include: 

    • Reading all the documents. 
    • Knowing who is named in all the various roles within your estate plan (i.e. your power of attorney, executor, trustee, etc.) including the backup people to make sure they are still appropriate. 
    • In addition, confirm those people have copies of or know where to find your documents and financial information if something happens to you. 
    • Understanding who your beneficiaries are and how they will inherit assets from you. 
    • Reviewing your account titles and beneficiary designations. 

If you need assistance conducting the review, you can reach out to an advisor you can trust, your wealth manager here at Annex, or estate planning attorney to help provide you some guidance. 


This week’s Ask Annex comes from Mary, who asks:

“What (if any) differences are there between Roth IRAs and Roth 401(k)s?”


We asked Annex Wealth Management’s Tom Parks, AIF®, CRPS®:

It’s probably easier to start with the similarities between these two retirement savings vehicles.  The tax treatment of Roth IRAs and Roth 401(k)s is the same. In each case, income taxes are owed on the contribution amount in the year in which the contribution is made (including contributions made to a Roth IRA prior to tax filing that are attributable to the prior tax year.)   

Assuming all legal qualifications have been met, distributions of principal and earnings from each account type are made tax-free.

Two of the biggest differences between the two account types are the annual contribution limits and eligibility to contribute based on income. 

Contribution limits for Roth IRA are $6,000 + $1,000 Catch-up for individuals age 50 and older while Roth 401(k)s offer a maximum annual contribution of $19,500 + $6,500 Catch-up for individuals age 50 and older.

While there is a phase-out income limitation for Roth IRAs depending on marital status and modified adjusted gross income, there is no such income limitation on Roth 401(k) contributions.   

Required Minimum Distributions (RMD) rules also vary between the two. Whereas Roth IRAs are not subject to RMDs, Roth 401(k) accounts are. Also, Roth IRAs allow for premature penalty-free distributions under certain circumstances, while Roth 401(k) accounts are subject to all regulatory restrictions applicable to 401(k) accounts and plans-specific limitations.  

There’s a tremendous amount of nuance associated with each of these conditions. Before you contribute to or take a distribution from any qualified account, we encourage you to discuss your situation with an advisor you can trust.

– Tom Parks, AIF®, CRPS®


Does Your Advisor Show Commitment & Support To Our Armed Forces?

Several Wisconsin employers of reserve military service members temporarily joined the Army National Guard to fly the friendly skies of the Badger state and get a first-hand look into what their employee service members do away from work throughout the year for military training.

Smiles were abound and new friendships and memories were cemented as these employers got a taste of the service and sacrifice members of the US Armed Forces make everyday.

President & CEO Dave Spano, CFP® joined Brandon Lehman, CFP®, Director of Branch Development at Annex Wealth Management and 173d BEB Battalion Logistics Officer in the Wisconsin Army National Guard aboard the UH-60 Blackhawk on Wednesday.

Thank you to Brandon Lehman and all US Armed Forces service members for your service and sacrifice!



Inflation Is The Boogeyman, Many Look To Central Bank For Reaction


GM 2025 Goals: 30 New EVs, $35 Billion Spending Increase

Annex Radio

Why You Should Recheck Your 401(k) Beneficiary


“What I particularly like about Axiom is that it emphasizes education. This is one of the hallmarks of the Annex experience. Whether it is something everyone will confront eventually, such as Social Security and Medicare, or more specialized features, like Saving the Family Cottage, Axiom keeps readers apprised of the opportunities to learn more about topics that are relevant and important to them.”

– Guest Editor: Keith Butler, JD | Wealth Manager

Annex Wealth Management provides free workshops, open to the public, on key wealth management topics.

Each week, we provide links to register for upcoming events.