Axiom | Vol 278

Markets Finish Off Another Great Month As Inflation Rises

Meet The Axiom®’s Guest Editor: Nikki Trudell

I’m Nikki Trudell, and I am a Client Service Manager at Annex Wealth Management. 

My role involves working closely with the Wealth Managers and assisting with our clients’ needs. I really enjoy getting to know our clients and working alongside an exceptional team. 

My husband Jeff and I are recent empty nesters which has been quite an adjustment. We love spending time with our two sons, spoiling our dogs, fishing, camping, and cheering on our Wisconsin sports teams. 


Markets Finish Off Another Great Month As Inflation Rises

Markets closed out another historically positive month. Earnings season has been favorable, although Apple and Amazon both reflected supply chain problems. What do analysts see coming as we near the holidays? Annex Wealth Management’s Derek Felske and Deanne Phillips discuss.


What I really like about the Axiom are our polls. It’s always interesting to see how others respond and I enjoy taking them as well. 

– Guest Editor: Nikki Trudell | Client Service Manager

Poll | Let’s end this debate once and for all! Candy Corn…the best or the worst Halloween candy?


Buy Low, Sell High, Diversify  

Diversification is a key part of a well-crafted portfolio. When an investor diversifies, he or she spreads investments across different sectors and investment vehicles. 

Many studies and mathematical models show that maintaining a well-diversified portfolio can be one of the most cost-effective ways to reduce risk. Investors diversify to lower risk, because risk is higher when everything is placed into one investment, which has only one set of outcomes. 

This week’s MoneyDo is “Diversify Your Investment Portfolio – Properly” because unfortunately, diversification can be harder than it seems. 

  1. Continuous monitoring is necessary, which is time consuming and sometimes, costly. Most experts suggest investing in 20 stocks or more. Researching, and then managing the transactions for your current holdings – while planning your future portfolio – can take time and cost money. 
  2. Buying a variety of mutual funds doesn’t necessarily mean you’re diversified. Mutual fund managers will sometimes be overweight in one sector or stock to help boost the fund’s return. If you hold multiple mutual funds engaged in the same tactic – relying on the same stock or mutual fund – you may not be as diversified as you thought. 
  3. Your understanding of the strengths and weaknesses of the universe of investments will be critical. Diversification doesn’t just mean investing in different asset classes, but also rotating between types of investments. 
  4. It’s possible to be over diversified. It can be easy to forget why you’re diversifying at all: to mitigate risk while still seeking to reach your goals for retirement and beyond. Instead, the strategy may become the goal. In addition to the demands of diversification, most experts agree that you’ll need to rebalance your portfolio. Rebalancing is a critical part of maintaining your investments. 

As you set up your portfolio, you’ll often start with a predetermined mix of asset classes and investment types. If you leave your portfolio unattended, you’ll find that one class or investment type has blossomed while others may have lagged. Rebalancing means trimming back one area and maintaining your predetermined mix. 

Diversification is hard work, and it almost always requires a financial plan to help you stay focused on your true goals. If you’re struggling with staying diversified properly – or even concerned how to start – find an advisor you can trust to help you sort through your goals, your risk tolerance, and help keep you on track. 


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

What amount determines your RMD? Is it the day you actually take it or the amount in your IRA at the beginning of the year?


We asked Annex Wealth Management’s Eric Strom, CFP®:

Your required minimum distribution (RMD) is calculated based on the value of your IRA or other retirement account, such as a 401(k), as of 12/31 of the previous year. The 12/31 value is divided by a life expectancy factor in the IRS Uniform Lifetime Table. Your age at the end of the current year is used to determine the life expectancy factor. 

However, a different IRS table is used if you are married and your spouse is the only primary beneficiary of your account and is more than 10 years younger than you. In this case, your RMD is calculated using the 12/31 value and the IRS Joint Life Expectancy table. Both your spouse’s age at the end of the current year and your age at the end of the current year determine the life expectancy factor used if the aforementioned conditions are true. If you are a beneficiary of an account (an inherited IRA), you may or may not have an RMD obligation. Check with a financial planner for help with your specific situation. 

  • If you own multiple IRAs, the RMDs must be calculated separately for each account. 
  • However, the total RMD amount can be withdrawn from one or more of your IRAs.  
  • Conversely, RMDs from other retirement accounts such as 401(k)s must be withdrawn separately from each account.  

We hope that this answers your question. Please reach out to us here at Annex Wealth Management if we can be of any further assistance. 

Eric Strom, CFP®

Financial Planning Manager


Does Your Advisor Have A Process That Helps You Unleash The Power Of What’s Next?

Wealthmetric is a process where you gain honest insight on your financial goals, and what’s next.  As a fiduciary, Annex Wealth Management has no products to push, so the conversation will be about what’s best for you.


  • Wealthmetric starts with a discussion centered on you – your goals, what you own, what’s important to you, even what concerns you. We ask valuable questions, and listen hard.
  • Then, we turn to the science of what’s next: using powerful technology and our team experience, we analyze your current state.
  • Finally, you get you a Wealthmetric report which shows you where you are and areas of focus for what’s next.

Get Started On Your Wealthmetric →


McDonald’s Higher Prices, New Menu Items, Celebrities


Purchasing Power Vs. Pricing Power


Why Do Some Women Start Planning Later Than They Should?


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.