Receiving an expected or unexpected inheritance can be an emotional and overwhelming time. The events that led to this windfall may have occurred through loss or some other life event. Here are some steps to take to help make the most of your inheritance: Take your time – allow yourself time to step back and process what has happened. Remember where it came from – think about how long it would have taken you to save up what has been…
People get used to the way things are and often have trouble adapting to change. Take interest rates for example. For much of the last 15 years since the financial crisis the Federal Reserve rate has been close to 0%. While it is historically unprecedented for rates to be this low, not to mention for so long, many people have come to think of it as normal and the way things were always going to be. What a difference a…
Just like getting the oil changed in your car on a regular basis, it’s a good idea to check on your financial house to be sure everything is in order. Here are a few items to review every year to be sure they are working in your favor: Personal spending plan – if you are not following a spending plan yet, create one and follow it. Cash flow is the cornerstone of achieving financial goals such as retirement and funding…
You’ve determined that now is the time to enlist the help of a professional for your financial affairs, now what? It’s a good idea to find a few advisors and interview them to see if they are the right fit for you. This will be an important relationship and you want to be able to trust this person and feel comfortable talking about important subjects like money and personal goals. Here’s a good list of questions to ask during your…
Over the last several years leading up to 2022 the acronym TINA was a very popular description for investment strategy. TINA stands for There is No Alternative (to stocks). The belief was that, with the Federal Reserve keeping interest rates at 0% and rushing to bail out the stock market each time it was in danger of declining significantly, stocks were the only place one could make any money. Certificates of deposit, government bonds, and money markets all offered extremely…
On April 9th Journey Tree sponsored and took part in planting trees with Friends of Trees. The weather was perfect, just a bit overcast without any rain and the Journey Tree team (along with a few Journey Tree clients) planted trees along Willamette & 15th as well as 15th and Charnelton. A total of 49 trees were planted around the city that Saturday, including many at Charlemagne Elementary School. We all enjoyed it and are looking forward to our next…
Journey Tree looks at investment returns over a long-term cycle that includes both up and down markets to ensure that clients get the returns they need with the least amount of risk. Due to a variety of factors, we have just been through an abnormally prolonged period of positive performance for both stocks and bonds. That highly unusual period fueled by low interest rates, government stimulus, and low inflation appears to have ended. Stock and bond markets have been artificially…
Given the current low interest rates and record setting inflation, many investors are looking for different ways to earn interest on their more liquid assets. Enter the I bond. A relatively unheard-of Treasury Department offering, the I-Bond is unique in that it’s rate is based on a combination of “Fixed Rate” and “Inflation Rate” to come up with it’s “Composite Rate”. The current “Composite Rate” the bond is paying is a whopping 7.12% annualized. With any deal potentially this good,…
“No living investor has experienced a global pandemic or the extraordinary monetary and fiscal policies that have been deployed to keep economies afloat. Without a playbook in hand, investors should beware of assuming that trends in recent years will repeat in the future.” – Chris Hogbin, Alliance Bernstein The stock market rose to historic levels in 2021. By some counts, as many as 70 record highs were recorded during the year. Buoyed by rock bottom interest rates (making it cheap…
A Roth conversion is the process of moving traditional IRA dollars, which are taxed when withdrawn, to a Roth IRA which can be withdrawn tax free. Benefits of a Roth conversion Tax-free income in retirement Ability to pass assets tax-free to heirs Lower Required Minimum Distribution (RMD) For example, you have a traditional IRA with a $100,000 balance as of 12/31 in 2021 and you turn 72 in 2022. Your RMD for 2022 would be roughly $3,600. But let’s say…