Client Axiom | Vol 280
A Good Earnings Season, Inflation And Consumer Sentiment, And Moves By The Fed
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Meet The Axiom®’s Guest Editor: Jeff Stanich, CFP®
I am Jeff Stanich, CFP®, Wealth Manager for Annex Wealth Management at our Libertyville, Illinois office.
I enjoy meeting new people each week and learning about their life story. I also enjoy helping them build their unique financial plan, all the while doing it in a fiduciary capacity.
My wife Lana and I live in Pleasant Prairie, WI and we have three grown children: one son and two daughters. We enjoy traveling and spending time with family and friends.
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“I enjoy reading the Axiom every week for the Week in Review and other interesting topics. Our Annex team works hard to deliver relevant information each week in an engaging format.”
– Guest Editor: Jeff Stanich, CFP® | Wealth Manager
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A Good Earnings Season, Inflation And Consumer Sentiment, And Moves By The Fed
Consumer confidence is low as inflation continues to show itself to consumers in everyday goods and pent-up demand, though investors aren’t as quick to react to the signs of inflation with the S&P still remaining high. Hear from Annex Wealth Management’s President and CEO Dave Spano and Chief Investment Officer Derek Felske about what numbers they are watching and their thoughts on how consumer spending is interacting with the COVID inspired shortage and what it means for the economy as it continues to press on.
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They come in all shapes and sizes, are over 100 years old, and our nation is full of them.
What are they?
Our national parks, of course!
As early as the 1830s, Americans were concerned about the blossoming economic, industrial, and population expansion out into the vast and unsettled territories of the American West. Very few people had ever seen that part of the country, but those that did were shocked by the beauty and uniqueness they saw and quickly understood that unless something was done, and on a grand scale, modernization would eventually take over.
In 1861, head of the government’s geological survey team Ferdinand Hayden was tasked to uncover the facts about the nature and land to the west. On returning to the capitol, it took Hayden little effort to convince Congress of the need to protect the lands from future destruction.[1] He informed them that time would soon run out.
In response, the nation’s first land specifically dedicated to the “benefit and enjoyment of the people” was placed under the direct control and protection of the Secretary of the Interior by Congress in 1872.[2] That land was Yellowstone, the first National Park in the world. The idea was simple, and its impact was profound: the idea that nature should be preserved from commercial or private interest to be enjoyed by everyone. The idea took hold quickly in the U.S. and around the world.
After the creation of Yellowstone National Park, other lands across the country, though mostly in the Western part of the country, were added to the Federal list of protected sites. Around this same time, Australians won the battle for their Tasmanian reserves and created the world’s second national park, known as the Royal National Park.[3] After that, Canada followed with Banff National Park, New Zealand with Tongariro Nation Park, and eventually after the turn of the 19th century, Europe and Africa followed suit.
Back in America, the management of these lands and historical sites was not centralized under one Federal Office until President Woodrow Wilson signed the “Organic Act” in 1916, creating the National Parks Service that focus on the conservation and maintenance of the lands.
Today, the U.S. has more than 400 areas under the supervision of the Parks Service, covering more than 84 million acres across all 50 states and U.S. territories. From the smallest national park in Arkansas coming in at about 5,500 acres to the largest park in Alaska covering 13.2 million acres, there are over 18,000 miles of trails in the national parks to explore![4]
These lands have been set aside for their many amazing and unique features, and they are just begging to be seen! Consider adding some of these to your list:
- Arches National Park, Utah: home to the largest concentration of stone arches in the world
- Mammoth Cave National Park, Kentucky: you can find the longest cave system in the world, having more than 3,454 mapped miles to track through
- Sequoia National Park, California: drive through the massive trunk of a sequoia tree that fell over the road – rather than undertake moving it, engineers decided to hollow out part of the massive tree instead.
- Yosemite National Park, California: home to Ribbon Falls, a waterfall nine times taller than Niagra Falls.
- Crater Lake National Park, Oregon: the deepest lake in the U.S. is located here, reaching 1,932 feet.
- Death Valley National Park, California: one of the hottest temperatures on Earth was recorded here: a sweltering 134 degrees Fahrenheit.
- Denali National Park, Alaska: the widest range of elevations is found here, from 200 feet in Yentna River to 20,302 at the summit of Mt. McKinley.[5]
If you are looking to make the most out of your travel, California and Alaksa contain the most National Parks with eight each. This isn’t surprising, given how large these states are. Also, if you are looking to cross off National Parks on your list, a drive through Utah will allow you to visit five parks in one trip since all the parks in this state are within an easy driving distance of each other and would make for lots of exploring in a short amount of time.
On average, Great Smoky Mountains National Park receives the most visitors every year, with the number reaching 12 million. That’s almost twice as many as the next largest, at Grand Canyon National Park coming in at about 6.2 million![6]
With parks, historic sites, and monuments all over the country, there are bound to be a few near by wherever you are in the country, or wherever you plan to visit. Getting out in nature is an excellent way to relax, breathe deeply the fresh, protected air, and enjoy some truly unique natural phenomenon that our predecessors fought to save. Without them, Yosemite Valley might be full of high rises buildings and bustling highways.
Instead, you can join the many millions of hikers, campers, nature lovers, and curious viewers to see what made it all worth it.
[1] https://www.nps.gov/articles/npshistory-origins.htm
[2] https://www.nps.gov/articles/quick-nps-history.htm
[3] https://www.bbc.com/travel/article/20120426-travelwise-birth-and-spread-of-the-worlds-national-parks
[4] https://www.outdoorproject.com/articles/59-fun-facts-about-our-national-parks
[5] https://www.outdoorproject.com/articles/59-fun-facts-about-our-national-parks
[6] https://fullsuitcase.com/best-national-parks-usa/
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A recent study shows that due to the pandemic our attitudes about saving and being wealthy have changed. Over the course of the next several weeks, we’re going to ask our readers some questions about what that means.
Poll | Are You A Saver Or A Spender?
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We understand that those who choose a Military career retire differently.
We’ve created a three-part series that discusses some important financial factors for a military family to consider.
With Veterans Day this past week, the Military has been on our minds. At Annex, we are proud of our own Brandon Leehman, CFP, AIF, a Wealth Manager, and an Engineer Officer in the National Guard. A subject that is relevant not only to himself, but many other families we know, Brandon explains many important facets of the financial side of military life. Take a listen to the first of three parts of our series on Financial Planning for Military Families and share this important information with any other military families you may know. For more information, continue on to parts two and three.
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This week’s Ask Annex comes from Steve, who asks:
1. “Is there a limit to how much money can be put into an HSA each year?”
2. “Can HSA funds be used to pay long-term care insurance premiums? If not, do you know of any tax-free funds that could be used to pay long-term care insurance premiums?”
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We asked Annex Wealth Management’s Tom Berkholtz, CFP®:
- For those covered by a high-deductible health insurance plan, an HSA can be a great tax advantaged saving vehicle. There are separate contribution limits for HSA’s depending on self-only coverage or family coverage. In 2021, maximum amount allowed for self-only coverage is $3,600 and $7,200 for family coverage. There is also a $1,000 catch-up contribution—per spouse if you have family coverage—for HSA participants older than 55. Additionally, to contribute the max amount you must be HSA eligible for the full year – otherwise the limit is reduced by a prorated amount.
- Typically, you can use HSA funds to pay for long-term care insurance premiums.However, there is a maximum annual tax-free withdrawal limit based on age to pay for long-term care premiums. There is also another caveat according to the IRC guidelines that the policy must meet the definition of qualified long-term care insurance. Essentially, the policy must be guaranteed renewable with inflation protection, no cash value, and may only pay for long-t erm care expenses.
All in all, HSA contributions and distributions can be complex. It’s always best to consult with a financial professional and talk through the specifics of your situation.
Tom Berkholtz, CFP®
Financial Planning Specialist
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KNOW THE DIFFERENCE MINUTE:
General Electric Plans To Split Into 3 Companies
KNOW THE DIFFERENCE MINUTE:
Inflation News: US Consumer Prices Up 6.2% In October
ANNEX RADIO
Part 2 | Financial Planning For Military Families: Post-Military Careers
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