Client Axiom | Vol 273
Analysts Change Forecasts As Inflation Appears Less Transitory
Meet The Axiom®’s Guest Editor: Joseph Maller, CPA
I’m Joseph Maller, Director of Tax with Annex Tax Services. The tax services team performs a number of functions, including preparation of client tax returns, tax planning and answering various tax questions. The world we live in continues to become more complex, and so have many tax situations. When I started in this area, “tax season” was the weeks surrounding the April tax submission deadline. Today, tax planning and preparation have become a year-round activity, not just once a year.
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Analysts Change Forecasts As Inflation Appears Less Transitory
As we see more signs that inflation is stickier than believed, analysts have updated their dot plots. What’s a dot plot, and what does it have to do with interest rates? Annex Wealth Management’s Dave Spano and Derek Felske discuss.
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The world at your pencil tip.
From health benefits to a creative outlet, picking up a pencil and paper can be worth the (relatively small) investment.
For some, a blank piece of paper is a nearly limitless opportunity to create and express an inner idea.
For others, the empty pad evokes a feeling of anxiety. For them, creating requires an investment of time and planning. There might be panic, list making, measuring of dimensions, or hours of decision making before even considering picking up the pencil.
To even consider sketching, some of us would likely have to silence our own inner voice, the one telling us that we lack the ability to draw anything worthwhile. But many believe you don’t have to be a naturally gifted artist to enjoy the benefits of sitting down with paper and some pencils.
Though there are many artistic mediums you could choose to create with, drawing might be the most accessible. It’s not likely that you can keep heaps of clay around the house for those moments when you feel like trying to sculpt. A simple pad of paper and a pencil or two can fit in a side table drawer and be accessed whenever inspiration strikes, which makes it more appealing and an easier art form to try.
Great art, or great expression of any kind, takes time. We could all benefit from slowing down – to focus on one single task that is enjoyable and all consuming. Time is our greatest asset and setting aside time for a creative project takes determination and focus on your task at hand. Distractions are all around us, and the more we give in to them, the less focus endurance we have.
Devoting time to one task, especially one that requires the creative synapsis and logical thinking pathways to fire, is a great way to engage your brain and retrain your focus.[1]
Sketching can also improve communication skills. Understanding visual communication allows you to consider expression through lines, figures, shapes, symbols, or colors.[2]
Your decision to interpret what you see and feel onto the paper allows both you and your audience the ability to consider emotions and feelings expressed without focusing on words. This allows for a better connection to internal emotions and enhanced expression with any audience you may have.
Focused drawing time can help improve your mood. By allowing your brain to focus on the task at hand, the constant strain of concentration can lead to stress and a host of other negative emotions. When your mind is focused on expression, it’s often able to relax, which can cause an endorphin release with the imaginative process, improving your overall mood.
By creating something with just your own imagination and hands, even if it’s not perfect (because nothing ever is), you can feel an immense sense of satisfaction and confidence in the fact that you made something out of nothing.[3] Watching a project come to life before your eyes as you go gives you physical proof of your effort and time. That satisfaction is something we all need and can be found in your pieces.
Looking to take a crack at this new hobby, or pick up the sketch pad again after a long break to see these benefits in action?
There are plenty of classes out there, whether self-guided or led by an instructor at every level of skill for you to hone your skills. You can begin to exercise your creative muscles as you get used to seeing the world through the eyes of an artist.
Online, you’ll find some courses will charge a fee to participate, like https://www.udemy.com/course/complete-drawing-course/ and https://www.linkedin.com/learning/topics/drawing. You can also find some free resources on YouTube that can get you started or help in great detail.
If you want to just see what you’ve got on your own, check out some guided tutorial books that take you step by step through a drawing. If you’re looking for something a little more freeform, there are books filled with ideas and prompts for sketches that can help you start the creative process.
Tips from a Trusted Source:
Annex Wealth Management’s Content Manager, Allie Anklam, serves as our own in-house designer and is an avid illustrator. Her work has been featured throughout the exclusive. She shares some tips to consider:
You can draw anything if you start seeing the world around you in basic shapes. For example, a table is really a bunch of rectangles. If you break down a complex object into simple shapes, it becomes significantly easier to assemble on paper. Eventually you will be able to draw from memory – by seeing an object in your mind, studying it, and breaking it down into simple shapes on a piece of paper.
Don’t give up on the page. If you make a mistake, don’t throw it out and start over, rather roll with it and figure out how you can use them. This teaches you to have confidence in your final product and to be creative with how you arrive there.
Practice! Even if you have paper in front of you with the purpose of just filling it up with anything that comes to mind, the more you do it, the naturally better you get.
And remember, you are mostly likely your harshest critic, so take your time, and extend yourself some grace. Every artist and professional must practice, make mistakes, learn, and grow as they go, and you can too!
[1] https://www.invaluable.com/blog/sketch-drawing/
[2] https://www.invaluable.com/blog/sketch-drawing/
[3] https://drawingsof.com/benefits-of-drawing/
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Poll Recap: What Kind Of Football Fan Are You?
Football season is here, and luckily there are lots of ways to consume it. Are you a diehard NFL fan, fanatic college football buff, member of the high school football cheering section, or Madden addict?
To no surprise, the majority of Axiom readers rank the NFL as their favorite, with college football at a close second.
Axiom readers fall right in line with a recent article from sports media website The Comeback: The Electoral map of football: The NFL vs. college football (NFL leaning states are in blue, college football states are in red)
According to the author, Wisconsin is an NFL leaning state.
“Wisconsin (10) – I initially had this in the solid NFL group. I mean, the Packers have had great QB play for 20+ years and a few Super Bowls, and historically it’s one of the NFL’s best teams. That said, UW really represents the soul of the state and is a more popular team in a large part of the state. I’d be very tempted to make Wisconsin red if there were another college team or two in the state, but the Packers plus some Bears fans in the state, makes it blue for now.”
Meanwhile, Florida – from the Gators to the ‘Noles to the ‘Canes – chooses college football slightly over the NFL. While some nearby states have an even greater affinity, Florida’s many successful college programs (including USF and UCF) have most Floridians (slightly) choosing college over the pros.
How about the other options? Well, as much as you love to cheer for your kids and grandkids, only 8% of readers chose high school as their football of choice. As for Madden – it didn’t even make the list. We’ll stay away from discussing who makes the cover of the popular video game in the future.
thecomeback.com (the-electoral-map-of-football-the-nfl-vs-college-football)
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We offer education on Education.
The Gift of Education, our newest Annex University launches this week.
Education can be an important part of life for our kids and grandkids, and we often want to do all that way can to help ease the financial burden of higher education on those we love. Saving for future education expenses now can be a big benefit when the time for college comes.
We are excited to introduce our newest Annex University: The Gift of Education. Our team has researched and put together a class on the ins and outs of the 529 plan, which uses state run programs providing income tax credits to contributors. The workshop will also cover how to set them up, benefits they provide, understanding what a qualified expense is, and many other things.
This can be a great way to invest in the future of your kids and grandkids, so please join us for our first Annex University webinar on September 28! To register, click on the link in the events section of the Axiom, or in the Events tab on our site. If you are unable to join the webinar, we are offering another online event on October 20 and will continue to offer classes on this important topic in the future, so check back for more dates coming up!
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This week’s Ask Annex comes from Arthur, who asks:
“What is market correction vs. bear correction?”
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We asked Annex Wealth Management’s Blaine Disrud, CFA®:
Both of these terms are related to declines in market prices. The magnitude of the declines is what differentiates a market correction versus a bear market.
Typical rule of thumb for a market correction is a decline of 10% to 20% from recent highs. Once a 20% decline occurs, the market enters what is known as a bear correction, or a bear market. The frequency of these two types of market environments differs, and they’re typically triggered for different reasons, as well.
Market corrections are a more natural phenomenon within equity markets and can be caused by several reasons. Bear markets, on the other hand, are generally caused by economic reasons, such as recessions.
Since 1974, market corrections have, on average, occurred about every other year, while bear markets have only occurred, on average, about every 7 to 10 years. For example, the last bear market we had prior to the COVID Pandemic bear market of 2020 was the Financial Crisis which started in late 2007.
Source for the dates provided:
https://www.schwab.com/resource-center/insights/content/market-correction-what-does-it-mean
Blaine Disrud, CFA®
Research Analyst / Trader
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“Axiom is not only a forum to provide education to the clients but it also showcases the depth of knowledge and talent that Annex has available to/for their clients.
The audio segments shared in the Axiom are especially helpful and succinct. I’m a big fan of listening while I’m multi-tasking.”
– Guest Editor: Joseph Maller, CPA | Manager, Annex Tax Services
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