Client Axiom | Vol 261
Does The Bond Market Believe Our Current Economic Conditions Will Persist?
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Meet The Axiom®’s Guest Editor: Brandon Lehman, CFP®
I’m Brandon Lehman, Annex Wealth Management’s Director of Branch Development.
I’m responsible for the growth and advancement of Annex’s branch offices and ensuring all clients experience the Annex Difference, no matter where they work with the Annex team.
I live in Lake Country with my wife and three kids. Our favorite pastime is picking a movie from Disney+ and making homemade popcorn. Time all together is the best gift a dad could ask for. I also serve as Battalion Logistics Officer in the Wisconsin Army National Guard and have served in over 9 State Active-Duty missions within recent years.
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“I love the Axiom because it shows off all the talented folks who work at Annex. It showcases the amazing team environment here on a weekly basis. The Axiom is a great opportunity to get multiple ideas and thoughts out to everyone and hopefully generate great conversations at home.”
– Guest Editor: Brandon Lehman, CFP® | Director of Branch Development
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Does The Bond Market Believe Our Current Economic Conditions Will Persist?
The markets stalled over the “infrastructure two-step” as the bond market appears to remain “stuck.” Could it be that the bond market doesn’t believe our current economic pace won’t last? Annex Wealth Management’s Dave Spano and Derek Felske discuss.
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Are You Part of the Boating Trend?
Boating sales continue to surge.
You may not have realized it when you bought it, but if you own a boat, you’re a part of an emerging trend.
While many industries saw a decrease in consumer spending over the past 18 months, the boating industry remained strong, as sales gained momentum in 2020 and continue into 2021, with powerboat sales up 12% overall.[1]
You might ask, why now? One interview indicated that “People are tired of the four walls of their houses.”[2] Being confined for so long, the flexibility and freedom that come with being out on the water are something that has become increasingly valuable to many.
Studies show that being near the water can reduce stress, improve creativity, and help you naturally relax[3] – something many of us have needed over the past months. Some boat owners have discovered their craft has increased time with family and friends, and often provides access to a unique community of people who also love the water.[4]
Due to increased demand, if you’re thinking about purchasing a boat or even upgrading from what you already own, be prepared for a potentially longer production wait time. You aren’t the only one in line. Boats that typically take 10 weeks to deliver are now sometimes taking over four months[5].
While you wait for your new craft, here are some more unique ways to enjoy what you already have, or ideas for the next time your friends invite you to join them. Hint: not all boating fun involves being pulled by a rope!
- Drop anchor and pull out the board games! No matter if your boat has an empty seat or a built-in table, bring a deck of cards or your family’s favorite game to be able to spend some time floating around while also enjoying some friendly competition.
- Maybe this one seems obvious, but we’ll say it anyways: fishing! Most fishers agree – it’s hard to get stressed when you’re out enjoying the calm, quiet waters watching your bobber and casting your line over and over again. And if you do eventually catch something, consider (as safe) portable grill for a freshly caught dinner out on the boat.[6]
- For all the musically inclined out there, bring a portable karaoke machine out with you and turn the lake into your own stage. You can even serenade other boaters as you go by with some rousing renditions or your favorite songs or try and create a group sing along on a crowded day in the water that everyone can partake in.
- If you’re feeling adventurous, take your boat out on a clear night for some amazing star gazing, away from the lights on land. Grab some bug spray and a blanket and enjoy the stars while listening to the sounds of the water gently lapping against your boat. Ah, that sounds relaxing.
Summertime means boating season, and we are so ready for it. We know that many of our clients are too. If you’d like to join in on this trend or make an upgrade to your existing set up and are curious how a large purchase could affect your financial plan, talk to your advisor today!
[1] https://www.cnbc.com/2021/03/19/boat-sales-took-off-during-pandemic-dealers-cant-keep-up-with-demand.html
[2] https://fortune.com/2020/07/26/americans-boating-industry-us-coronavirus-pandemic-boats/
[3] https://www.nbcnews.com/better/health/what-beach-does-your-brain-ncna787231
[4] https://www.intermarineboats.com/news-events/Ten-Reasons-to-Own-a-Boat/153
[5] https://www.bizjournals.com/twincities/news/2021/04/09/buying-a-boat-you-may-wait-months-to-get-it.html
[6] https://crownline.com/081115-15-awesome-boating-activities/
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Space Battle. Blue Origin or Virgin Galactic? Jeff Bezos or Richard Branson?
Poll: Who Will Get To Space First? If You Were Given A Golden Ticket, Would You Join Them On Their Trip To Space?
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Consolidating could mean less of what stresses you.
We can help you consolidate your outside accounts for an easier financial experience.
Because of our One Team approach to managing your financial plan, we have in-house expertise in multiple areas of the industry. Our teams work with your Wealth Manager to provide knowledge and strategies, which allows them to work with you in a hands-on environment to help you achieve your financial goals.
With outside account consolidation, Annex can work with you to house all your accounts in one place. You and your Wealth Manager will then be able to view your entire portfolio at a glance, allowing you to be more focused with financial planning, tax review, cash flow, beneficiary updates, and eventually your Required Minimum Distribution strategy among many other things.
Consolidation may be efficient way to save you time, stress, and it could even help to lower your overall fees from having accounts spread across multiple institutions. Your Wealth Manager can discuss how consolidation will affect your overall plan, and will be able to understand your entire financial picture to help you to make holistic decisions to best help you towards your planning and goals.
To make planning and management even easier for you, consider consolidating your accounts with Annex, so you can be confident that all your accounts are in the hands of professionals who know you and who you can trust.
If you think outside consolidation sounds right for you, we would be happy to talk to you further. Reach out to your Wealth Manager about how to get started today!
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This week’s Ask Annex comes from Joe, who asks:
“Wanted to get your thoughts about investing in real estate…specifically owning rental properties. Is this something you see people do and have success? Is it a worthwhile investment?”
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We asked Annex Wealth Management’s Todd Voit, PhD:
Dear Joe,
Great question – and one we’ve been hearing a lot more lately. Yes, investing in real estate can be a great decision.
One key issue that many new investors overlook is the operational nature of the investment. Despite the fact that you might hire a professional management company to oversee daily activities, your investment may still require your attention and preparedness for key decisions. An investor should consider that real estate is more similar to an operating business, than an equity.
You can’t necessarily count on continuous positive cash flow. Interruptions in tenancy and capital events (repair and maintenance) are common and should be expected.
Despite the challenges, real estate can be a very attractive investment. Low interest rates, tax advantages associated with depreciation, and real assets as a hedge against inflation are a few.
For investors less interested in daily operations, and who want shelter from risk (personal guarantees, limitless liability) – there are some great private and public real estate investment funds to consider.
– Todd Voit, PhD
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KNOW THE DIFFERENCE MINUTE:
Computer Glitches, Ransomware Increases; What’s Up With The Internet?
KNOW THE DIFFERENCE MINUTE:
Is The US Economy A Coiled Spring?
ANNEX RADIO
401(k) Nondiscrimination Testing – Why It’s Important
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Annex Wealth Management has always been committed to client growth and education. Planning and saving can be demanding. We’ve found that when our clients master key concepts, it often enhances working together to reach their goals. Because these are not sales presentations, our clients benefit from a truly informative experience.
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