Client Axiom | Vol 260
Happy Father’s Day! | FOMC Governors Note Inflation Rising – But Are Markets Overreacting?
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Meet The Axiom®’s Guest Editor: Keith Butler, JD
I’m Keith Butler, a Wealth Manager at Annex Wealth Management.
As a Wealth Manager, my job is to serve as the Annex team’s main contact for a group of clients, by getting to know each of them and their unique needs, and by making sure they are benefitting from, and to introduce them to all of the services Annex has to offer.
I am honored to serve as Guest Editor of Axiom on Father’s Day, 2021. About 23 years ago I married into an amazing family, with my wife, Linda, and three stepchildren. Now all of them are married and have children of their own, five in all, ranging in age from (almost) 2 to 4.
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FOMC Governors Note Inflation Rising – But Are Markets Overreacting?
This week’s FOMC meeting closed with Chairman Jerome Powell taking a dovish tone about inflation. The markets are troubled by the potential of interest rates rising – but are they overreacting? Annex Wealth Management’s Dave Spano and Derek Felske discuss.
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Let’s get outside and play!
Games to help make your summer party stand out.
Have you seen how many different types of yard games are out there now?
Lots of people can remember the days when metal tipped lawn darts were all the rage at parties, which was a classic game for all ages until someone’s aim was just a little off and people started to realize that maybe a metal tipped object flying through the air wasn’t such a good idea.
Instead, makers of lawn recreation have been busy creating new games based on a variety of sports and activity levels for kids and adults alike. As the Fourth of July and the rest of summer head our way, you can try some of these acitives to keep your kids and grandkids occupied for hours, or even join in on the fun yourself!
There are a bunch classic games to choose from like badminton (there’s actually a tamer version called Goodminton, which we think is clever), croquet, or bocce ball, so we want to share some of the more outrageous ones we’ve found to help take your party up to the next level.
Flickin’ Chicken
This one is just like the name suggests – you literally throw a rubber chicken at a target. Once you throw the target out, everyone takes turns to see how many throws it takes to get it to land on that little circular target. The player with the lowest number of throws wins. Just be careful, the chicken bounces! Grandkids and adults alike will laugh at this one!
Kan Jam
For those who are fans of frisbee, or maybe need to work on their aim, this one is for you! The game is played with two large flexible cylinder cans, each with a slot cut out in the front and an open top. The goal is to throw the frisbee towards the other can, where your partner can then help to guide the frisbee into the can or the slot for points. This is a two-on-two game and makes for great tournament style play for larger parties. You can get as into it as you want, and the kids might enjoy chasing after the frisbee as you play!
Kubb
With a nickname like “Viking Chess”, do we need any other reason to want to play this game? It consists of wooden blocks and batons – you toss the batons across the playing field at the blocks and try to knock them over. Once all the blocks are down, you then aim for the King Kubb to win. Apparently, there is a national tournament for this game, so you’d better get yourself a set and start practicing!
Bottle Bash
Another frisbee based game, this one is pretty self-explanatory. In two teams of two, you toss the frisbee towards a plastic bottle that sits on top of a small pole. The goal is to knock the bottle off, scoring points if the bottle or frisbee hit the ground. The other team can play defense and thwart you by catching the frisbee and/or the bottle. Unlike the rest of the games on the list, you’ll probably need both hands free for this one, just don’t put your actual drink on the stand by accident!
Yard Dice
There are many games you can play with giant wooden yard dice, and that’s what makes this option so appealing. Fun to toss around, games like Yardzee (we know, that’s a bad pun!) are easy to play and don’t require much skill other than some potential math to add up your score at the end of the game. For Yahtzee in the yard, grab a white board or just carry your scorecard in your pocket as you walk around the yard rolling the dice!
All these games are readily accessible and sound both fun and funny to us. Honestly, we might get a set of Flickin’ Chicken for ourselves because who wouldn’t laugh at that? Whether you are a competitive player or not, adding variety to your outside activities might just be what puts your party over the top and creates great memories with your family this summer!
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Poll: Have you booked a stay with Airbnb or VRBO?
Are seniors starting to get the hang of Airbnb?
According to Airbnb, senior adults are the fastest-growing segment of travelers. Prior to the pandemic, the percentage of seniors booking lodging on Airbnb was growing at strong double-digit annual rates. Many retirees and other senior adults are also serving as hosts.
In our latest poll, we asked readers if they’ve booked a stay with Airbnb or VRBO – the majority of respondents were above 60, and only 44% of them answered yes.
Maybe it’s time to consider staying in a private home versus a hotel on your next vacation. In addition to more space and privacy, Airbnb’s are often generally more convenient for seniors. Guests can park in the driveway, close to their room and avoid going up and down elevators with luggage. However, some find renting a little too adventurous for their taste – as quality standards of a rental are a gamble compared to a trusted hotel chain.
What about hosting? Renting out your home or an extra room could provide a new source of retirement income. More than 400,000 seniors are currently serving as hosts for Airbnb rentals, a number that’s rising. Airbnb says seniors are also among the most favorite hosts, with 85% of them earning the top five-star rating from guests.
https://thisretirementlife.com/2021/02/11/seniors-benefit-from-airbnb-and-vrbo/
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When To Review Your Estate Plan
Estate planning, like financial planning, is an ongoing and evolving process that requires regular check-ins and reviews to ensure everything is in order.
In previous MoneyDos, we’ve discussed the importance confirming account titling and beneficiary designations so that everything with your estate plan is aligned. Your MoneyDo this week: Review Your Estate Plan. It’s important to remember that experiencing certain key life events should prompt you to dust off your estate planning documents and review them, such as:
- Changes in family status impacting anyone named in your estate plan, such as marriage, divorce, death or new family members;
- Change of your primary residence to a different state;
- Changes in your financial situation, such as changes in your employment status, including retirement, sale or transition of your closely-held business, or an inheritance;
- Changes in your health or insurance coverage (health, life, etc…);
- Changes in tax laws that may impact inheritance of funds, which could include income, gift and/or estate taxes changes; and
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- The passing of time itself. Make sure you’re reviewing the plan every three to five years to make sure you have a good understanding, and everything is in order.
When you review your estate plan, your review should include:
- Reading all the documents.
- Knowing who is named in all the various roles within your estate plan (i.e. your power of attorney, executor, trustee, etc.) including the backup people to make sure they are still appropriate.
- In addition, confirm those people have copies of or know where to find your documents and financial information if something happens to you.
- Understanding who your beneficiaries are and how they will inherit assets from you.
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- Reviewing your account titles and beneficiary designations.
If you need assistance conducting the review, you can reach out to an advisor you can trust, your wealth manager here at Annex, or estate planning attorney to help provide you some guidance.
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This week’s Ask Annex comes from Mary, who asks:
“What (if any) differences are there between Roth IRAs and Roth 401(k)s?”
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We asked Annex Wealth Management’s Tom Parks, AIF®, CRPS®:
It’s probably easier to start with the similarities between these two retirement savings vehicles. The tax treatment of Roth IRAs and Roth 401(k)s is the same. In each case, income taxes are owed on the contribution amount in the year in which the contribution is made (including contributions made to a Roth IRA prior to tax filing that are attributable to the prior tax year.)
Assuming all legal qualifications have been met, distributions of principal and earnings from each account type are made tax-free.
Two of the biggest differences between the two account types are the annual contribution limits and eligibility to contribute based on income.
Contribution limits for Roth IRA are $6,000 + $1,000 Catch-up for individuals age 50 and older while Roth 401(k)s offer a maximum annual contribution of $19,500 + $6,500 Catch-up for individuals age 50 and older.
While there is a phase-out income limitation for Roth IRAs depending on marital status and modified adjusted gross income, there is no such income limitation on Roth 401(k) contributions.
Required Minimum Distributions (RMD) rules also vary between the two. Whereas Roth IRAs are not subject to RMDs, Roth 401(k) accounts are. Also, Roth IRAs allow for premature penalty-free distributions under certain circumstances, while Roth 401(k) accounts are subject to all regulatory restrictions applicable to 401(k) accounts and plans-specific limitations.
There’s a tremendous amount of nuance associated with each of these conditions. Before you contribute to or take a distribution from any qualified account, we encourage you to discuss your situation with an advisor you can trust.
– Tom Parks, AIF®, CRPS®
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KNOW THE DIFFERENCE MINUTE:
Inflation Is The Boogeyman, Many Look To Central Bank For Reaction
KNOW THE DIFFERENCE MINUTE:
GM 2025 Goals: 30 New EVs, $35 Billion Spending Increase
ANNEX RADIO
Why You Should Recheck Your 401(k) Beneficiary
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“What I particularly like about Axiom is that it emphasizes client education. This is one of the hallmarks of the Annex experience. Whether it is something everyone will confront eventually, such as Social Security and Medicare, or more specialized features, like Saving the Family Cottage, Axiom keeps clients apprised of the opportunities to learn more about topics that are relevant and important to them.”
– Guest Editor: Keith Butler, JD | Wealth Manager
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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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