- Protect your account information. If you must e-mail your advisor or others your account number, social security number, or date of birth, be sure to use encrypted e-mail.
- Heed the No-Nos: Do not repeat the same password for multiple sites. Do not use really easy passwords. Do not use your dog’s name followed by the number 1 as your password.
- Use a Password manager. Password managers are free tools that you can download to your computer that manage your passwords for you. You no longer have to remember complicated passwords, which frees you from the No-Nos.
- Ask your custodian or bank if they offer two-factor authentication. This is a device or app that provides a unique number each time you log in to your account.
- Check your credit report annually to ensure no one has taken out credit in your name.
- Keep your Social Security and Medicare cards some place secure.
- Consider freezing your credit if you don’t plan to take out a loan in the next few years.
- Don’t fall prey to phishing scams. If someone calls you on the phone telling you they’ve detected fraudulent activity on your behalf, do not give them your private information. The same goes for someone contacting you over e-mail.
- If your e-mail is hacked, change your password immediately and notify pertinent parties.
- Encourage your family to do the same – even children’s credit can be stolen.
What, another financial acronym? Yes, in late 2015, Congress passed the PATH (Protecting Americans from Tax Hikes) Act, which made the QCD permanent in early 2016. QCD stands for Qualified Charitable Distribution. This type of charitable gift is made directly from an IRA and isn’t included in taxable income. The QCD was introduced in 2006, but fell into the on-again, off-again bucket of acceptable tax strategies until the end of 2015.
Any individual over the age of 70 ½, who receives an annual RMD (required minimum distribution) from his/her IRA, is eligible to take advantage of a QCD. Now that the strategy is permanent, it’s worth a discussion if you’re already gifting to charity each year, over 70 ½, and the owner of an IRA.
As everyone knows, a gift to charity is tax deductible. So how is the QCD different and potentially more tax beneficial?
The amount of the QCD is excluded from income, which effectively lowers AGI (adjusted gross income) by that same amount. AGI is the threshold by which most itemized deductions are measured to determine if allowable or not. For example, unreimbursed medical and dental expenses are only deductible to the extent that they exceed 10% of AGI. Therefore a lower AGI may translate into an allowable or larger medical/dental itemized deduction.
Another benefit of the QCD is the possibility to reduce Medicare Part B premiums. This year, the standard premium for Medicare Part B is $134/month if you’re a single filer and your 2015 AGI was below $85,000 or married filing jointly and your 2015 AGI was below $170,000. To the extent your AGI was higher that these amounts on your 2015 return, your Medicare Part B premiums this year also increased. Currently, four AGI brackets determine the Part B premium amount that’s deducted from an individual’s monthly Social Security check.
|MAGI* Limits for Medicare Part B Premiums|
|Single Tax Filer:||Married Filing Jointly:|
|2015 MAGI:||2017 monthly premium:||2015 MAGI:||2017 monthly premium:|
|Less than $85,000||$134.00||Less than $170,001||$134.00|
|$85,001 to $107,000||$187.50||$170,001 to $214,000||$187.50|
|$107,001 to $160,000||$267.90||$214,001 to $320,000||$267.90|
|$160,001 to $214,000||$348.30||$320,001 to $428,000||$348.30|
|Greater than $214,000||$428.60||Greater than $428,000||$428.60|
*MAGI (modified adjusted gross income) = AGI + tax exempt interest
The maximum QCD amount is $100k per individual (or $200k per couple as long as $100k is given from each taxpayer’s IRA). So, in a year where one spouse gifts the maximum QCD, AGI will be reduced by $100k and the bracket which determines Medicare Part B premiums will also be lowered by $100k. For example, Billy and Betty’s 2015 AGI was $245,000 which translates to 2017 Part B premiums of $6,429.60/year. This year, Billy and Betty gifted $100k through a QCD to their alma mater to establish a named scholarship fund. The QCD lowered their AGI to $145k (assuming all other items remain constant), which reduced their bracket for determining Medicare Part B premiums. The new lower premium of $3,213/year (premium reduction of 50%) will take effect in 2019. Remember the premium change does not happen until the year after the tax return effecting the change is filed.
One further point to make – a QCD must be given to a public charity. A private foundation or donor advised fund does not qualify.
Parsec’s client service team processes QCDs on a regular basis for our clients. Here’s an outline of the simple steps to follow:
- Call your Financial Advisor
- Complete an IRA distribution form from your custodian – ensure that the gift is coded as a QCD.
- No tax withholding selected – the distribution is non-taxable.
- Check must be payable to the charity, not to the IRA owner. The check may be mailed directly to the charity or to the individual to hand to the charity.
- Make sure that your accountant is aware of the QCD.
Please contact your advisor with any questions.
Betsy Cunagin, CFP®
Senior Financial Advisor
With interest rates remaining at very low levels, there are few options for earning any sort of a return on cash balances.
|Charles Schwab Bank High Yield Savings||0.35%|
|Bank Money Market||1.30% (same as in my 2011 article)|
|3 Month U.S. Treasury Bill||1.12%|
|6 Month U.S. Treasury Bill||1.14%|
|1 Year CD, National Average||1.42%|
|5 Year Treasury Note||1.85% (same as in my 2011 article)|
|10 Year Treasury Note||2.26%|
|5 Year Treasury Inflation Protected Securities||0.02% (plus inflation)|
|10 Year Treasury Inflation Protected Securities||0.45% (plus inflation)|
|Series I Savings Bonds||1.96% (for the next 6 months, then 0% plus the inflation adjustment)|
One thing to consider for smaller balances is Series I Savings Bonds (“I Bonds”) issued by the U.S. Government. The new rates came out May 1, and I Bonds are currently earning an annual rate of 1.96% for the next 6 months. You can visit www.treasurydirect.gov for a more detailed description of I Bond features.
The earnings rate for I Bonds is a combination of a fixed rate, which applies for the life of the bond, and an inflation rate that changes semi-annually (think “I” as in “inflation”). The 1.96% earnings rate for I Bonds purchased through October 31, 2017 will apply for their first six months after issuance. I Bonds cannot be redeemed for 12 months after issuance, and there is a penalty of 3 months’ interest if they are redeemed before 5 years. Purchases are limited to $10,000 per Social Security Number annually, so a couple could purchase up to $20,000 per year.
What if there is an emergency and you need the money? Since you cannot redeem the bonds for 12 months, you need to leave some liquid cash on hand. After 12 months, a penalty of 3 months’ interest is deducted from the redemption value. But even after paying the penalty you would still be ahead of a bank CD, and considerably ahead if the change in inflation continues at its current level. In addition, I Bond interest is exempt from state income taxes and is tax-deferred until you redeem the bond. Also, if you buy the bonds on the last day of the month, you still get interest for the full month (I like to call this the “Mendelsohn Option”, in memory of the man who first pointed this anomaly out to me many years ago).
All I Bonds have the same inflation component. The only difference is in the fixed rate that each bond offers. If the fixed rate increases significantly in the future, just redeem some bonds and pay the penalty. Then buy some new bonds with the higher fixed rate (but remember the $10,000 annual limit on purchases for each Social Security Number). After 5 years, there is no penalty on redemption.
Another possibility for liquidity needs is a short-term, high quality bond fund. However, you should be aware that these do carry some interest rate risk. For example, a popular short-term bond fund has a current yield of 1.96% and an effective duration of 2.60 years. This means that if interest rates were to suddenly move up by 1%, the value of the fund would be expected to fall by about 2.6%. This would wipe out over a year’s worth of interest, making it a less attractive alternative for cash balances. I Bonds cannot go down in value (unless the Government fails, in which case we all will have much bigger problems to contend with). The worst that can realistically happen is if the inflation adjustment was to be negative for a period of time. In that case, there would be no interest paid on the I Bonds until the inflation adjustment turned positive. However, we believe that the probability of negative inflation over the next several years is minimal.
An examination of interest rates reveals current market expectations about inflation. We look at this by calculating break-even inflation rates over the next 5-10 years using current yields on Treasury securities. The break-even inflation rate is simply the difference between the yield on a Treasury Note of a particular maturity and the corresponding TIPS, or Treasury Inflation Protected Security.
For example, using the yields listed previously, the current 5 year break-even inflation rate is 1.83%. This is the difference between the 1.85% yield on 5 the 5-year U.S. Treasury Note and the -0.02% yield on 5 year TIPS). If you believe inflation is going to be lower than the break-even value for a particular investment horizon, you are better off in a Treasury Note. If you believe inflation is going to be higher than the calculated break-even rate, then you should purchase TIPS or I Bonds.
Bill Hansen, CFA
Medicare is a complex topic but also an important tool for financial planning during your retirement. You will no doubt be inundated with flyers, pamphlets, and marketing materials from multiple companies and organizations—as you approach your 65th birthday. It can become very overwhelming, so here are five quick things that will help you get a basic understanding of Medicare and what you need to do now to prepare for the big 6-5!
1.) Medicare is health insurance for people 65 or older and people under 65 with certain disabilities. Original Medicare (Parts A & B) pays for about 80% of your health care costs. There are (4) main ‘Parts’ you will hear when talking about Medicare.
Part A– Hospital Coverage- part of Original Medicare
Free to most people
Part B– Doctor Coverage- part of Original Medicare
Has a monthly premium (based on income*) and a yearly deductible (the 2017 deductible amount is $183
Part C– Medicare Advantage- offered by private insurance companies
Takes the place of Original Medicare and usually combines Rx coverage
Part D– Rx Drug Coverage- offered by private insurance companies
Separate monthly premium
Original Medicare pays approximately 80% of qualified expenses, which leaves a gap of 20% that would be out-of-pocket for you.
There is currently no cap on the amount that the 20% could reach.
2.) It is important to know what qualified expenses are. Your ‘Medicare & You’ guide will have detailed information on this but here are a few examples of things Medicare does not cover: long-term care, eye exams for glasses, most dental care, dentures, hearing aids or exams, prescription glasses or exams, cosmetic surgery, routine foot care and acupuncture.
3.) You have options! You can choose Original Medicare (Parts A & B) or you can choose a Medicare Advantage Plan instead.You can also choose to add Supplemental coverage (for an additional monthly premium) to Original Medicare that would cover the approximate 20% gap in out-of-pocket expenses.
4.) There are penalties and fees for failing to enroll into Parts A, B, and D within a specified time frame. There is a 7-month window around your 65th birthday in which you can sign-up for Medicare and have guaranteed approval for any Rx drug, Advantage, or Supplement Plan you choose. You need to enroll in Medicare during this 7-month window to avoid late enrollment penalties/fees.
The 7 months covers 3 months prior to, the month of, and 3 months after your 65th birthday month.
You can enroll in Medicare online (www.medicare.gov) or at your local Social Security office.
5.) Use your resources! Medicare’s website (www.medicare.gov) is a wonderful tool to research, compare and shop for plans, companies, etc.If you are currently employed or covered by an employer health plan, talk to someone in your HR or benefits department as soon as you turn 64; the timing for signing up and your coverages may vary from the normal Medicare process.
As the time approaches, make sure that you complete the necessary steps to take advantage of the Medicare benefits which you have earned. For more detailed information, click here for our upcoming Parsec Newsletter for an article called “Medicare: What you need to know before you turn 65.”
Lori King, RP®, Client Service Specialist
One of the fundamental values at Parsec Financial is giving back to our community. We founded the Parsec Prize in 2005. Since that time, we have given over $1,000,000 in prizes to 66 local non-profit organizations serving Western North Carolina and Charlotte. The Parsec Prize represents approximately one-half of our annual charitable giving.
For the first time, we are expanding the Parsec Prize to a multi-year donation to one of the recipients. OnTrack Financial Education & Counseling will be the inaugural organization to receive this multiyear donation of $100,000 in total over the next four years. This is the largest commitment that Parsec Financial has ever made to one organization. We are giving an additional four Parsec Prizes of $25,000 each to four other worthy organizations.
The 2017 Parsec Prize recipients are:
- Guardian ad Litem of Buncombe County – $25,000
- OnTrack Financial Education & Counseling – $100,000 (4-year commitment)
- Our VOICE – $25,000
- United Way of Asheville and Buncombe County, Middle School Success Program – $25,000
- Western Carolina Rescue Ministries – $25,000
We thank these organizations for the value they provide to our community.
We encourage non-profit organizations to visit our website for information on applying for a Parsec Prize in 2018. The Prize will be considered for non-profits in any region where Parsec has a physical office.
The Parsec Team
The deadline to make IRA contributions for tax year 2016 is April, 18 2017. The maximum contribution is $5,500 per individual ($6,500 if age 50 or over) or 100 percent of earned income, whichever is less.
There are income limits which determine whether you can deduct your Traditional IRA contribution or if you qualify to make a Roth contribution. The following table gives the phase-out range for the most common circumstances.
Do you qualify to deduct your Traditional IRA contribution?
If your income is less than the beginning of the phase-out range, you qualify. If your income is over the phase-out range, you do not. If your income falls inside the range, you partially qualify.
|Modified Adjusted Gross Income Phase-Out Range|
|Tax Filing Status||For 2016 Contributions||For 2017 Contributions|
|Single, participates in an employer-sponsored retirement plan:||$61,000 – $71,000||$62,000 – $72,000|
|Married filing jointly, participates in an employer-sponsored retirement plan:||$98,000 – $118,000||$99,000 – $119,000|
|Married filing jointly, your spouse participates in an employer-sponsored retirement plan, but you do not:||$184,000 – $194,000||$186,000 – $196,000|
Do you qualify to contribute to a Roth IRA?
|Modified Adjusted Gross Income Phase-Out Range – Roth|
|Tax Filing Status||For 2016 Contributions||For 2017 Contributions|
|Married, filing jointly:||$184,000-$194,000||$186,000-$195,999|
If your filing status differs from those listed above, please contact your advisor and he or she can help you determine whether you qualify.
Harli Palme, CFA, CFP®
While the year hasn’t officially wrapped up as of this writing, we’re close enough to be able to form some opinions and offer some perspective on 2016. If nothing else, this year could be characterized as unexpected. Despite a steep stock sell-off in January, which weighed on investors’ outlooks early in 2016, U.S. stock returns are poised to close up over 10 percent through December. On the other hand, bond returns, while on target to gain about 2 percent for the year, are finally starting to come under pressure after a bull market of over 30 years.
Looking back, the S&P 500 Index fell over 6 percent in January after U.S. GDP growth came in below expectations, corporate earnings continued to fall, and recession fears spiked. Despite investor concerns, most economic data at home were relatively healthy, driven primarily by steady gains in employment and disposable personal income. Additionally, many investors were concerned that slowing global growth would ultimately weigh on a resilient U.S. economy. Specifically, the International Monetary Fund (IMF) lowered its global growth rate predictions several times, China delivered GDP growth below expectations, and commodity prices remained depressed.
Stocks turned a corner in March, however, surging almost 7 percent at home and over 13 percent in developing countries. The state-side rally came amid falling U.S. corporate earnings that were driven by lower energy prices, depressed commodity prices, and a strong dollar. Although declining earnings growth usually leads to lower stock prices, the Federal Open Market Committee’s (FOMC) announcement that it would reduce the number of interest rate hikes for the year buoyed stock valuations. As a result, stock price-to-earnings multiples (a common valuation metric) expanded while underlying fundamentals remained weak.
After several years of underperformance, emerging markets stocks and bonds reversed course in 2016 as depressed commodity prices started to recover. The FOMC’s plan for fewer interest rate hikes was also a boost for emerging markets countries, many of which owe significant amounts of U.S. dollar-denominated debt. Likewise, economic data out of China were better than expected, although growing debt levels and excessive government stimulus there could prove to be longer-term risks.
In another unexpected development, low-growth telecom and utilities sectors led U.S. stocks in the first half of the year. Utilities and telecom stocks typically carry higher debt levels and the FOMC’s move to keep interest rates lower for longer was viewed favorably by the markets. Both sectors were up over 20 percent through June, although they have since given back almost half of those gains.
In between tragic terrorist attacks, the U.K. shocked the world in June when it voted to exit the European Union, a development known as “BREXIT.” Markets tumbled on the news but quickly bounced back and reached new highs. While shocking headlines dominated the popular press, global economic growth was quietly stabilizing around the globe and accelerating at home.
The summer brought a much-needed reprieve from the barrage of grim headlines earlier in the year. It also ushered in new confidence in the U.S. expansion as jobs growth continued, wage growth perked up, and housing data improved. As the Presidential election drew near, corporate spending started to pick up, oil prices rallied, and company earnings improved.
Following a relatively calm summer, the U.S. surprised the world in November with the election of Donald Trump to the presidency, while Republicans maintained their majorities in the House and Senate. Despite concerns of a global shift towards populism, markets soared on hopes of tax cuts and better growth at home. After the election and following months of healthy economic data – – including a meaningful pick-up in 3rd quarter U.S. GDP growth and signs that inflation was heating up – – the FOMC raised rates in December, as expected.
Clearly, 2016 was an eventful year for markets, governments, and citizens alike. While several unknowns have become known, many of this year’s developments have sowed the seeds for more uncertainty ahead. In terms of markets, although a divide still exists between stock valuation levels and underlying fundamentals, we’re encouraged by improving corporate earnings growth. On the other hand, bonds have benefited from over thirty years of falling yields (and thus rising prices). A steeper FOMC rate hike trajectory is clearly a headwind for fixed income, but the central bank’s stance is supported by strong economic growth and signs of inflation. The end result may mean stagnant fixed income returns, but a healthy economy – a trade-off we’re willing to take.
Overall, we view stocks as most likely to outpace growing inflation expectations over the long term. While equity prices may be due for a pullback in the near term, evidence suggests that the longer-term secular bull market remains intact.
The Parsec Team
The holiday season is quickly approaching! While we plan to be here for all your year-end needs, we also look forward to spending a little extra time with friends and family. So that we can enjoy time with loved ones, our office will be closed for certain holidays. Please review our schedule below so that you can plan office visits and gifting request accordingly.
- Thanksgiving: Our office will be closed on Thursday, November 24 and Friday, November 25, 2016.
- Christmas: Our office will close at 1:00 p.m. on Friday, December 23 and all day on Monday, December 26 in observance of the Christmas holiday.
- New Year’s Day: Our office will be closed on Monday, January 2, 2017.
The closures apply to all offices located in Asheville, Charlotte, Southern Pines, and Tryon. Some employees may be planning to take a little extra time off around the holidays, but someone from your advisory team will always be here to help you!
For a little fun reading this season, make sure to check out our new holiday edition newsletter. The cranberry sauce looks tasty! We hope you enjoy time with your loved ones and have a safe, happy holiday season.
Ashley Gragtmans, CFP®
Inflation isn’t exactly a hot topic these days, although the lack of it might be. Despite aggressive monetary policy by the U.S. Federal Reserve (Fed) since the Financial Crisis, prices are relatively flat. Along with increased money supply, a generally healthy economy and an improving employment picture would suggest higher prices. So why is inflation depressed?
Inflation is defined as a sustained increase in the general level of prices for goods and services. Basically, inflation happens when too much money is chasing too few goods or services. While the Fed’s bond buying operations since 2009 have dramatically increased the amount of money in circulation, most of it has not reached consumers who would be most likely to spend it. Instead, much of the cash generated by the Fed remains with large commercial banks that are unwilling to lend.
Steep losses tied to easy lending standards caused bankers to clamp down on loan issuance after the housing bubble burst. Credit standards are finally starting to loosen, but many banks remain conservative when it comes to issuing new loans.
Another factor that may be preventing more money from reaching consumers is tied to legislation introduced in 2008 that allows the Fed to pay interest on excess bank reserves. Historically, bank reserves held at the Fed did not earn interest. A lack of return on reserves motivated banks to put their excess capital to work by issuing new loans. However, now that banks can earn a very safe return on their reserves with the Fed, they are lending less. While historically there has been a strong correlation between the US monetary base and inflation, that relationship has weakened following the new legislation. From 2005 to 2015 while the monetary base rose at an annual rate of 17.8%, inflation expanded by only 1.9%.
But banks aren’t the whole picture. Oil prices, which comprise roughly 8% of the Consumer Price Index (CPI), have plunged since July 2014. Excluding oil and food, core CPI was actually up about 2.2% year-over-year in July. But this is still below the long-term inflation average of 3.8% since the end of World War II.
Many argue that recently healthy jobs gains should fuel demand for goods and services and thus push prices higher. While it’s true that the U.S. has added an average of 3 million jobs in each the last two years, consumers have only recently started to loosen their purse strings. Since the Financial Crisis, many have instead focused on saving and paying down debt. At the same time, flat wage growth has hindered spending. But this is starting to reverse and the combination of high employment levels and now rising wages should support consumer spending and in turn, could add to upward pressure on the inflation rate. Of course, for inflation to pick up substantially would require accommodating increases in the money supply from the Federal Open Market Committee.
Finally, weaker global economic growth and a strong U.S. dollar have been headwinds for domestic inflation. Our economy is one of the strongest in the world and the U.S. dollar has appreciated compared to many other currencies as a result. This means that foreign currencies have declined relative to the U.S. dollar and the prices of imported goods are getting cheaper. In order to compete with foreign goods, domestic companies have generally lowered their prices, putting downward pressure on inflation. This phenomenon is known as “importing inflation”.
While there may be other factors responsible for low inflation, it’s worth noting that the current environment is generally positive for consumers and investors. Low, but steady inflation levels – all else being equal – means lower grocery and gas bills, as well as higher real investment returns. Inflation is often one of the biggest headwinds to achieving adequate portfolio returns. Rising prices can eat into an investor’s real return and delay the achievement of financial goals. But in this low-yield environment, low inflation is a benefit to investment portfolios which will have a better chance of delivering returns that outpace prices for goods and services.
To be sure, the current low-inflation environment may not last. As with many trends, inflation may return to average or even above-average levels in the future. We are starting to see wage income rise, consumers have increased their spending levels recently, and oil prices have rebounded year-to-date. Rising inflation can erode portfolio returns and spending power, but modest, steady price gains are also associated with healthy economic growth in which consumers are spending, businesses have pricing power, and wages are growing.
Carrie A. Tallman, CFA
Director of Research
Interesting Tidbit On Unclaimed Property
More people than you might expect are owed money and don’t even know it. Many different types of assets are escheated to the state for a variety of reasons. An individual might move – perhaps several times – and forget to update his or her address with all vendors. Funds may then be mailed to a previous address and subsequently be returned to the sender. The company will usually attempt to locate the individual; however, unclaimed funds will eventually be surrendered to the state. Alternatively, when family members pass away, assets are often left unclaimed or not cashed, so they are returned.
I have used the below website many times while working with clients or estates. Take a couple of minutes to check it yourself. Maybe you will find only enough extra cash for an ice cream cone, or perhaps it will be enough for a vacation. It is very easy to claim your cash.
Vicki Oxner, RP®
Visit a historical site:
Western North Carolina is rich in history. One of my family’s favorite locations is Cherokee. In particular, we like to visit the Oconaluftee Indian Village. We always enjoy walking the trials and making new friends. Staff members are eager to share stories and have live demonstrations on how the early Cherokee people made jewelry, clothes, weapons, shelters, and canoes. We always seem to learn something on our trip back through time.
Read the Declaration of Independence
While many of us can recant passages of the document such as, “We hold these truths to be self evident,” how many of us have read or can recall the 27 grievances in the original writing leading to the declaration?
Get active – go for a hike, fishing, or camping:
Did you know that WNC has some of the arguably best trout fishing in the state? We have well over 3,000 miles of trout streams and each year the Wildlife Commission closes 1,000 miles for restocking and delayed harvesting. Currently, fishing season is wide open with a 7 daily keeper limit.
Make it memorable:
Consider investing in a decent photo or video camera. We took the plunge a few years ago and bought both types of cameras. We have a lot of fun capturing memories. Occasionally, we will look back on these priceless photos and videos to relive the moment and found this to be a great pass time. One of the things I like to do is compile short video clips and then set them to music; this makes a great way of preserving memories in a fun and engaging way.
Pack a picnic and watch the fireworks:
Admit it, many reading this cannot recall the last time they sat on a blanket and enjoyed a picnic dinner. How about trying a new recipe or pick up a box of fried chicken while picking out the perfect viewing area? Don’t forget to pack a frisbee to toss around. Looking for fireworks? Find them here!
Treat a veteran to lunch or dinner:
What better way to honor our nation’s heroes by treating them to a lunch? We see active duty servicemen and women at restaurants near the Asheville airport. Something we like to do is anonymously pay for their meal.
Make a difference:
Everyone has something they are passionate about. Why not take this passion and introduce it to someone new? For instance, an outgoing person might go to a nursing home and visit a resident. Someone who enjoys soccer could visit a local park and start a pick-up game.
Throw an Independence Day themed BBQ:
On a recent visit, the client arranged for a catered Low Country Boil as incentive for his staff to stay after hours for my education presentation and one-on-one meetings. This was my first boil and I was impressed at the simplicity of the food and great conversations. So much so, this inspired my family to invite a few good friends over for our first boil this summer! (If any have advice about how to make this go off without a hitch, please email me with your thoughts and suggestions.)
Watch the local 4th of July parade:
Remember when you were a kid and watched the parade? The nostalgia of candied apples, popcorn, marching bands, and waving the American flag just oozes fun and happy memories! It just doesn’t get much better.
Declare your independence, financially that is:
The Declaration of Independence is roughly 1,400 words. Financial independence does not require a formal “declaration” per se, but it does require a well thought out plan. Just as our forefathers were resolute in their desire for independence, our decision to save and invest for our future should be a high priority. Things that should be considered are having adequate cash reserves, health, life and disability insurance, long-term savings and investments, and estate planning documents to name a few. The internet has a wide variety of tools and resources that may be helpful. However, the advisors at Parsec take a unique and tailored approach for client recommendations and advice. More importantly, our advice is consistent whereas information on the internet will vary. Our belief is that with proper savings, planning, and investment oversight most people can achieve financial independence. If you have questions or concerns that you would like us to address, please call or write.
I hope everyone has a happy and safe 4th of July!
Neal Nolan, CFP®, AIF®
Senior Financial Advisor
Director of ERISA Services