Client Axiom | Vol 279
Excellent Jobs Report Encourages Markets
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Meet The Axiom®’s Guest Editor: Mark Strey, CFP®, CMFC®
I’m Mark Strey, a Wealth Manager, CFP®, on the Annex Wealth Management team. In addition to meeting with clients, I also partner with many of our Wealth Managers across our branches to help and support clients with situations that have added complexities or unique challenges.
My areas of specialty include planning around: employer stock options, deferred compensation, net unrealized appreciation (NUA), real estate and business sale transactions, large investment concentrations, and other complex tax planning needs around Roth IRA conversions, estate planning and legacy planning. What I love most about my role here at Annex is that there is always something new to learn and teach to others.
My wife and I currently reside in Lake Country with our 18-month-old Golden Retriever pup Annie Jo. During the summer months, we love spending our weekends boating and being with friends on the lake. Other activities we enjoy include hunting, fishing and spending as much time outside as possible.
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Excellent Jobs Report Encourages Markets
An excellent jobs report – accompanied by some very good earnings reports – shows an economy with lots of life left in it. What does this mean for portfolio construction into the holidays? Annex Wealth Management’s Dave Spano and Derek Felske discuss.
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Are you feeling energized after that extra hour of sleep?
How changing your clocks was more divisive than we were originally taught.
Today is the day we’ve come out of Daylight Savings Time and back into “normal” time. At least, most of us have (we see you, Arizona.)
We were wondering why that is, though we won’t complain about an extra hour of sleep. Why is it that for 6 or so months out of the year we get thrust forward into the future by one hour, just to be drawn back as the season turns towards winter? Turns out it’s a more modern reason than we were taught in school.
Starting at the beginning, Benjamin Franklin, who pretty much invented everything useful, wrote to the French press in 1784 about the novel concept that the sun comes up earlier and earlier each day heading into summer months. Though meant to be a dig at the laziness of the French for never having realized this because they had “never seen any signs of sunshine before noon,” it did spur on an idea to take advantage of the hours that the sun is up rather burning more candles and just dealing with it.[1]
Though nothing formally came from Franklin’s comments, over 100 years later, the concept was officially credited to a New Zealand entomologist named George Vernon Hudson. He became frustrated with how early the sun set during summer, giving him less time during prime bug catching season. When he approached the Scientific Society in New Zealand, they wrote off his proposal of resetting the clocks to take advantage of the sunlight as a pointless and complicated idea, but less than two decades later it was adopted for another purpose.[2]
During World War I, Germany saw the need to conserve coal for fuel and adopted the practice in an effort to use less energy. The U.K. and the U.S. soon followed suit. After the war was over, the farmers lobby was the most vocal about taking Daylight Savings Time off the table for good, contrary to popular belief. They made their case that less work was done due to the disruption of laborers who still paid attention to the clock rather than the sun, often cutting their days short and therefore decreasing productivity. To their dismay, it came back into effect in World War II for the same reason of once again conserving energy.[3]
After the war and beyond, chaos ensued in the U.S. as Congress allowed certain states and cities to choose if they would continue participating in Daylight Savings Time, failing to create a nationwide standardized time. This created confusion for travelers, broadcasters, and laborers since times could change by an hour in either direction based on where you traveled to. In fact, a journey from Steubenville, Ohio to Moundsville, West Virginia, a 40 mile drive, would give you seven different time changes.[4]
In 1966, Congress finally corrected the problem and President Lyndon Johnson signed the Universal Time Act into law that standardized Daylight Savings Time to begin at the end of every April and end on the last Sunday of October. States were allowed to submit exemptions on the law, and only Hawaii and Arizona (excluding a pocket of the Navajo Nation) chose to exclude themselves from the law.[5] To this day, these two states still do not participate, so if you are sick of changing your clocks twice a year, maybe it’s time to consider relocating.
One of the first modern reasons for the concept was to reduce energy usage. As modern technology progressed, overall usage actually rose slightly with the use of screens, lights, heating, and air conditioning. Those who argue against the practice use this reasoning often – that it may have made more sense before the modern age of technology but now is a useless practice. Also, the change takes place at 2 a.m. because it is believed that most people will be asleep and not notice the change, and bars and restaurants will be closed by this time.[6]
Interestingly, it wasn’t until recently that the end Daylight Savings Time moved to the beginning of November. Lobbies of all kinds came to the defense of the practice, since more sunlight in the summer meant higher sales in baseball, golf, and other equipment related to outdoor activities that could happen with longer evening light. Retailers also had something to say because studies have proven that more daylight means more spending.[7]
Surprisingly, it was the candy industry that pushed for the extension of Daylight Savings Time because they adamantly believed that with the extra hour of light, more children and families would be willing to be outside trick-or-treating and therefore the industry would sell far more candy to accommodate the influx. According to one report, candy lobbyists in 1985 put small candy pumpkins on the chairs in the Senate to persuade them to make the change. Though the push did not initially work, a law extending Daylight Savings into November was finally passed in 2007, and the candy industry cheered.[8]
The ideas and policies surrounding Daylight Savings Time have changed about as many times as the clocks on our walls. There is a growing movement to end Daylight Savings Time, and you can even sign a petition if you feel strongly about avoiding the semiannual meltdown when changing the clock in your car. But after all that Congress went through to get the law to where it is today, we can’t imagine much will change. The affected industries are strong, and they aren’t wrong that more light at the end of the day means people are more likely to be out and about. Which doesn’t seem like a bad thing.
So, now you know a little bit more about how we got here, and why you have to change your clocks. We’re already looking forward to when we can change them back in spring. Until then, we hope you’re well rested!
Have an idea you’d like us to write about, or a story to share? Send us an email at cl************@*********th.com.
[1] https://www.smithsonianmag.com/smart-news/did-benjamin-franklin-invent-daylight-savings-time-1232015/
[2] https://www.mentalfloss.com/article/88302/10-fascinating-facts-about-daylight-saving-time
[3] https://www.mentalfloss.com/article/88302/10-fascinating-facts-about-daylight-saving-time
[4] https://enddaylightsavingtime.org/the-complete-history-of-daylight-saving-time/
[5] https://www.mentalfloss.com/article/88302/10-fascinating-facts-about-daylight-saving-time
[6] https://www.mentalfloss.com/article/88302/10-fascinating-facts-about-daylight-saving-time
[7] https://www.vogue.com/article/daylight-saving-time-shopping
[8] https://www.mentalfloss.com/article/88302/10-fascinating-facts-about-daylight-saving-time
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Poll Recap | Let’s end this debate once and for all! Candy Corn…the best or the worst Halloween candy?
Is it candy? Is it corn? Is it a chalky wax?
Turns out, the majority of our readers aren’t a fan.
But it goes deeper. The majority of poll respondents describe their relationship to Candy Corn as something like this…
It’s Halloween night and the kids are asleep. You’ve been waiting all day to eat some of their candy, put your feet up and watch TV in peace. You inspect their haul and find they’ve cleaned out all of the goodies besides… the Candy Corn. A wave of horror washes over you. It’s just not good. Where are the Twix? The Reese’s? You’d even take a popcorn ball at this point. For a majority of you, you sigh and shove a handful of the sickly tricolored candles in your mouth, defeated.
In last week’s poll, no one described candy corn as “superior to all other candy,” but almost 1/3 of you named it in your top five.
That’s the good news for candy corn.
The majority you don’t like it – with a third of you admitting you’ll eat it if it’s all that’s left, and more than a third of you harboring feelings of genuine dislike.
The moral of the story – either you love it or you hate it. Or, there’s nothing left in the candy bowl, so it wins by default.
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Heads up, the year is coming to a close.
Some tax planning strategies can take time to implement.
Now that we’re well into November, many of us have year-end tax planning on the mind. It’s important to know that some tax strategies can take several weeks to put into place. When accounts need to be opened or paperwork filed, these activities take time.
Because of this, we have set a deadline of Thanksgiving for implementing year-end tax planning strategies. That’s the last day that we will be able to guarantee that certain activities can be completed by the end of the year. Our team is always working for you, and just like everyone else, the end of the year is a busy time for us.
If you’re considering a financial strategy for 2021 such as a charitable gift or Roth conversion and need assistance from us to help you plan or implement these, please make your request known to us in the next few weeks by contacting your Wealth Manager so that we have time to help before the year ends.
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“My favorite part about the Axiom is how it showcases the various members of our team. There are many people that I have the luxury of working with that don’t directly participate in meetings on a daily basis. It’s impossible for any one person to know everything, thus Annex’s commitment to education and staying current on proposed changes benefits everyone. The work the Team does behind the scenes and the value that adds to our company is what truly sets Annex apart from the rest of the industry.”
– Guest Editor: Mark Strey, CFP®, CMFC® | Wealth Manager
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This week’s Ask Annex comes from Amy, who asks:
“Do your “Women & Wealth” workshops offer something that your other workshops don’t?”
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We asked Annex Wealth Management’s Deanne Phillips, CFP®, CDFA®, ABFP:
Great question, Amy. The short answer is – yes. At Annex, we understand that everyone’s story, and what’s important to them, is different. What we’ve discovered through time is that many women share similar questions, values, and concerns about their future.
“Women & Wealth” is designed to address the specific needs and concerns we’ve heard women express to us. Recent research indicates that only about half (52 percent) of females feel confident in their investing ability, and less than 2/3 (61 percent) of women report having a good understanding of their investments and holdings.i
Obviously, taxes, inflation and interest rates don’t behave any differently for one person than another. But how we react to those forces is subject to our own questions and confidence. That’s where Women & Wealth comes in. Check out our webpage to learn more about upcoming events – and stay tuned! 2022 is going to be bigger than ever!
ihttps://www.accenture.com/_acnmedia/pdf-52/accenture-reinventing-wealth-management-for-women.pdf
Deanne Phillips, CFP®, CDFA®, ABFP
Director of Client Learning & Development
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KNOW THE DIFFERENCE MINUTE:
The Squid Game Cryptocurrency Scam
KNOW THE DIFFERENCE MINUTE:
Positive Employment News As Jobless Claims Fall
ANNEX RADIO
Steps To Selling A Business
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