Client Axiom | Vol 277
Fed Moves From Defining Inflation As “Transitory”
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Meet The Axiom®’s Guest Editor: Brandon Arps, CFP®
I’m Brandon Arps, a Wealth Manager at Annex.
I meet with individuals and families that are both clients as well as those interested in learning more about Annex’s comprehensive wealth management. Working with clients gives the Annex team the chance to review their Investment, Tax, Estate, and Financial Plan; helping to ensure that they are on track to meet their personal retirement goals – as well as other aspirational dreams they may have outside of retirement. The most rewarding part of my role as Wealth Manager is learning about our clients and what’s important to them, which allows our teams to create bespoke action plans.
I live in Pewaukee with my wife and two stepsons, who keep us very busy with their active sports schedules. We also recently found out that we will be growing our family by one more next March – we couldn’t be more excited!
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“My favorite section of the Axiom is “Week in Review.” Our Investment Team brings a remarkable amount of expertise to this weekly section, with a quick yet thorough summary of all things impactful to markets. It’s great to have a resource like this available whenever you’re ready to listen. For me, that’s usually after the kids are in bed.“
– Guest Editor: Brandon Arps, CFP® | Wealth Manager
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Fed Moves From Defining Inflation As “Transitory”
Investors are currently still enjoying relatively good earnings and low interest rates. But the Fed may move to contain or reduce inflation with some moves in the near future. Annex Wealth Management’s Dave Spano and Derek Felske discuss.
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If you love riding on the open road, then a visit to some of these bike friendly cities is calling your name.
Pack your bags, it’s biking time.
Taking a casual bike ride can be relaxing and a good way to be active. But depending on where you live, there can be other benefits too. Cities are starting to ramp up their commitment to becoming biker friendly…and we do mean bicycles.
In a recent list of the world’s top 20 bike friendly cities, a total of zero were here in the United States.[1] Most of the cities listed are in Western Europe, and we can’t say we’re surprised. The idea of riding around Paris on a bicycle with your baguet and cheese for the day in the front basket is both idyllic and realistic, so it seems!
So, what is it that makes these cities bike friendly and why should you visit so you can experience it too?
Our first stop is in Copenhagen, Denmark. In a recent poll, 62% of inhabitants in the city bike to work or school, averaging about 894,000 miles every single day! Though that many bikers presents a different kind of traffic congestion, the city has invested money on biking infrastructure for bridges, wide bike lanes, and “cycling highways” around the city.[2]
Local politicians even run on the issue of expanding cycling transportation, and the citizens of the city look at pro-car stances as a negative thing. With these feelings ingrained in the city, it has become a point of pride for Copenhagen to be the leader and inspiration for motorless transportation.
Amsterdam is next on the list – only a 40-hour bike ride from Copenhagen, if you’re really in the spirit of being a dedicated biker. A city that is only growing in population, Amsterdam has proclaimed in 2022 it will invest even more in building the biking infrastructure to help alleviate the stress of the influx of cycling commuters. For instance, to help during rush hour, the city plans to widen existing bike lanes and create new routes throughout the city dedicated to bike travel while also redesigning major intersections to make cyclists safer as they traverse busy streets.[3]
Though only just making it into the top 10 on the list of bike-friendly cities, Vienna Austria is certainly unique in their approach. Not only are they continuing to invest in cycling development, they’re actively campaigning and communicating their goal of having more citizens make the switch from four wheels to two.[4] In 2018, the city was filled with the hashtag #warumfährstDUnicht? which translates to #whydontYOUcycle? The ads were aimed at convincing people that cycling has benefits that could outweigh any excuses they might have. We think that’s pretty clever!
Can we say “bike tour” anyone? But don’t worry, you don’t have to figure out a way to get your bike across the sea these days! Bike share companies are all around, especially in cities that take biking so seriously. For only a few crowns (Denmark’s currency) a day, you can tour the city like a local and see just how friendly the city is yourself.[5]
Honorable mentions from the list include Helsinki, Paris, Oslo, Barcelona, and Tokyo. With so many places to choose from, it will be hard to decide which pavement you want to ride down first!
Choosing to ride a bike around the city as a tourist can alleviate learning to drive on the wrong side of the road, having to fight city traffic on roads you don’t know, and somehow manage to read street signs in another language, all at the pace of the traffic on the street.
Though this is all part of the international travel experience, choosing a bike can alleviate a few of those headaches. You’ll be able to take your time as you pedal by the sights, stop to take photos or even read a map if you get lost, and get faster access to places by saving time on finding a parking spot.[6]
And maybe the best hidden benefit of all, you’ll be getting a workout in the process, even on a leisurely ride!
If biking is something that you love to do, or you’d rather find an alternative mode of transportation, consider some of these great bike-friendly destinations as you plan!
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.wired.com/story/most-bike-friendly-cities-2019-copenhagenize-design-index/
[2] https://www.wired.com/story/most-bike-friendly-cities-2019-copenhagenize-design-index/
[3] https://www.wired.com/story/most-bike-friendly-cities-2019-copenhagenize-design-index/
[4] https://www.wired.com/story/most-bike-friendly-cities-2019-copenhagenize-design-index/
[5] https://www.eurocheapo.com/blog/copenhagen-how-to-use-bike-share-as-a-visitor.html
[6] https://thriveglobal.com/stories/16-benefits-of-biking-to-work/
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Poll Recap | Opinion: What Are Your Thoughts On This?
To help alleviate supply chain issues, California ports and a number of retail and logistic companies will operate 24/7. In a recent poll we asked you what you thought. Here were your top two responses:
1. “Good idea, but what about the trucker shortage?”
Your most popular response – chosen by nearly 1/3 of polltakers – indicated many of you believe unloading more cargo at the ports will not completely solve the problems plaguing the supply chain. Accompanying the port crisis is a trucking crisis, a problem we addressed in this Know The Difference Minute: https://youtu.be/4T3awZ7S3rw
2. “It’s fine, but this will take longer than anyone plans.”
Your second most popular poll response addresses the time it will take to “detangle” the mess we’re in. Pickup slots are already going unused, according to a report in the Wall Street Journal. “We are open 90 hours a week now with 60% utilization,” said Sal Ferrigno, vice president of SSA Terminals, Long Beach.¹
There’s no easy solution to this massive problem, and it contributes to so many aspects of our lives. We will have to be patient as supply and prices vary in the coming months. And when it comes to Christmas gifts, experts suggest shopping early and buying local.
1. https://www.truckinginfo.com/10153954/will-bidens-24-7-port-plan-alleviate-supply-chain-problems
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We’ve all heard it before.
Inflation, what exactly is it?
Inflation is something we’ve been hearing about more frequently in the news lately. It’s important to understand what it is and how it works. We asked our Director of Retirement Plan Services, Tom Parks, CRPS to explain more about it. Check out what he has to say below:
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This week’s Ask Annex comes from James, who asks:
“Do I need to take an RMD this year? If so, what’s the best time to take it?“
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We asked Annex Wealth Management’s Eric Strom, CFP®:
There have been a number of changes to the rules regarding required minimum distributions (RMDs) over the last few years. As you may recall, the CARES Act waived RMDs in 2020. However, RMDs are once again required in 2021. Because of the SECURE Act of 2019, RMDs now begin at age 72 for those born after June 30, 1949.
For those who haven’t started RMD’s yet, you will be faced with this obligation starting in the year you turn age 72. Distributions are required from traditional IRAs and certain employer-sponsored retirement accounts such as 401(k)s, 403(b)s, or 457(b)s.
Some investors like to take their RMD towards the end of the year to let their account grow tax-deferred for as long as possible before taking funds out. One unexpected downside to waiting is that you leave your heirs with a small window to take RMDs if you died during the year. You can alleviate this concern by taking your RMD early in the year. Another advantage of taking it early is to avoid any penalties that can be incurred by forgetting to take your RMD.
The IRS imposes a whopping 50% penalty on any portion of the RMD that is not taken by the end of the year. For example, if you have an $8,000 RMD and you don’t take the distribution by year-end, you would be subject to a $4,000 penalty.
Contact your financial professional today to ensure your RMD has been taken and avoid unwanted penalties. If you’re an Annex client, we’re ready to answer your questions. Getting your distribution request in early allows time to double-check that your RMD has been satisfied and to make any necessary adjustments before the end of the year.
Eric Strom, CFP®
Financial Planning Manager
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KNOW THE DIFFERENCE MINUTE:
Squid Game: Netflix’s Most Popular Show, Ever
KNOW THE DIFFERENCE MINUTE:
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ANNEX RADIO
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