Well Balanced

This week's podcast discusses divorce's emotional and financial complexities. It features personal insights from Vector's Scott Rose and expert advice from managing director Sharon Calhoun, a Certified Divorce Financial Analyst (CDFA).

Listen in to gain a deeper understanding of asset division, spousal support, and the importance of building a professional team early in the process. Sharon explains why financial assets like IRAs and brokerage accounts should be treated differently in settlements. Scott and Sharon tackle financial planning topics that should be considered before signing a divorce agreement.

Whether you're considering divorce, in the midst of...

In this episode of our Well Balanced podcast, Jason Ranallo sits down with George, who is four years into retirement and a client at Vector. In this conversation, they unpack a life enriched by travel, birdwatching, and the pursuit of experiences. George shares how he has prioritized travel and adventure, starting with canoe trips in the Ozarks and SCUBA diving in Mexico.

Later in life, when his kids were around 10-12 years old, he and his family took a Y2K trip around the world. Another pivotal moment in George's life came in 2010 when a health scare...

News Recap: Inflation, Mortgage Rates, and the Stock Market.

Learn why owning assets that outpace inflation is a key tenet to navigating today's economic landscape. We explore recent trends in inflation, mortgage rates, and the stock market, offering insights on how to preserve your purchasing power.

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Transcript:

In this episode of Market Perspective, we will explore recent developments in the financial world and what they could mean for you. Specifically, we’ll discuss how re...

Did you know that individuals can gift up to $18,000 without incurring any tax? For married couples, this amount can be doubled to $36,000 through gift splitting, making it a powerful tool for transferring wealth. In our latest podcast episode, senior wealth advisor Mike Nesheim discusses the annual gift tax exclusion, among other financial planning strategies for intra-generational wealth transfer.

When gifting highly appreciated assets such as stocks or real estate, Mike says donors should understand that the gift recipients will take on the capital gains tax liability–advantageous if the recipient is in a lower tax bracket. However, as...

We are excited to share the latest conversation in our intra-generational wealth transfer series. In this episode, Chris Wagner, one of Vector's knowledgeable wealth advisors, shares financial planning insights to help ensure your financial legacy.

Learn how to use different financial planning tools to avoid probate, set wealth transfer conditions, and honor your wishes. We discuss beneficiary designations, the roles of wills and trusts, and trust administration. Chris says, for some families, establishing beneficiary designations can solve a majority of the estate planning and it doesn't cost anything.

One of our roles at Vector is...

Ever wondered how to effectively pass on your legacy while ensuring your own financial security? Learn about intra-generational wealth transfer with Joe Grochowski, a long-serving advisor at Vector Wealth. Joe shares his practical experience to help you navigate the complexities of gifting, inheritance, and financial planning. 

This episode isn't just about numbers; it's about making thoughtful decisions that honor your family's values. If you're exploring the idea of a lump sum inheritance or distribution throughout your heirs’ lives, this guidance will help you frame your decision-making. We consider the implications of intra-generational wealth transfer. Join us by wat...

In our latest podcast episode, Jason Ranallo, Director of Portfolio Management, provides an in-depth review of recent market performance and key economic trends. Starting with last quarter’s market and discussing the impact of index concentration, this episode is packed with valuable insights. We also cover global investment, currency exchange effects, housing market trends, inflation, wage growth, and consumer sentiment.

Whether you're interested in understanding the current state of the market or looking for a strategic understanding, this podcast episode offers a comprehensive overview. Tune in to gain a better understanding of the economic landscape. The central th...

We are excited to share insights from Vector’s latest Well Balanced podcast episode, which features Tory Schaefer, Senior Director of Yoga Operations at Lifetime.

Tory joins Sharon Calhoun, Vector’s Managing Director, to discuss the importance of integrating a wellness practice, like yoga, into your life. Discover how to stay present, reduce stress, and support better decision-making. Whether you're a seasoned yoga practitioner or just curious about ways to stay grounded, this episode offers valuable tips for a well-balanced life.

Some of you may be wondering what yoga has to do with retirement and fina...

As of this month, there are only three companies in the world that have achieved a market capitalization (market value) of over $3 trillion: Nvidia, Microsoft, and Apple. One thing these companies have in common is artificial intelligence.  

In this Market Perspective episode, Vector’s Jason Ranallo discusses past and present concentrations of market leadership.

We look back 30 years to companies like General Motors, Cisco Systems, and General Electric. At the time, these blue chips were some of the largest in the market. They came out of a century that saw the mass adoption of cars, rad...

Our message today is for the students in your life. Learning is a lifelong pursuit, and transitions like graduation can mark milestones in your student’s education journey. We know that many in our audience value the importance of establishing a solid financial foundation, and starting early can be a big part of that.

Here are five financial planning topics perfect for sharing with those just starting out in their careers or taking the next step.

Focusing on th...

Did you know that May 29th is 529 Day? This quirky, not-quite-a-holiday day is a great opportunity to learn about planning for your family's future education needs while enjoying some light-hearted fun. Listen or watch our latest podcast episode to find out how 529s, and other savings accounts, can help you save smartly for education expenses.

In this podcast, dated 5/29, Chris Wagner, a wealth advisor at Vector, discusses financial planning to help you maximize your college savings potential. He emphasizes the importance of starting early to benefit from compound growth and discusses contribution limits and the tax implications...

If you’re considering buying a new car within the next few years, this podcast is for you. For many clients, a new car purchase is a significant financial decision. Senior wealth advisor Mike Nesheim, CFP®, talks through several aspects of car buying, from leases and loans to selling taxable investments to fund the purchase. As a financial planner, Mike emphasizes the importance of thinking ahead and strategically approaching car purchases.

Mike says that knowing a vehicle’s cash price upfront is crucial. It allows for a more explicit comparison of financing and leasing options without falling into...

In this week's Market Perspective, we get into some noteworthy stats coming out of markets and the economy. Here are the highlights:

Stock Market: The S&P 500 recently experienced a 5% swing during the March-April-May period. The U.S. stock market is now back to an all-time high. Part of the reason for the move up, we believe, is due to corporate earnings results which have been stronger than expected. About 77% of companies have reported results above expectations.

Jobs Market: The job market continues to present a "Goldilocks" scenario with historically low unemployment rates and robust...

Finding meaning and purpose beyond financial security becomes principal, especially as one transitions into retirement. In this podcast, Vector's Scott and Ezra talk with senior wealth advisor Joe Grochowski to explore how retirees have harnessed their newfound freedom and resources to lead fulfilling lives.

The acronym PUSH stands for Purpose, Use Time, Socialize, and Health.

Purpose is fundamental, acting as the driving force behind daily activities. For instance, one of our clients found renewed vigor by taking a part-time job, not for the income but for the structure and social interaction it provided. This pivot...

In our latest podcast episode, Sharon Calhoun, managing director at Vector Wealth Management, and Suzy Klapperich, chief compliance officer, discuss the pressing issue of social engineering and cybercrime. Their discussion sheds light on the manipulative tactics that scammers use and provides valuable insights on how to safeguard your personal information.

Key Highlights from the Discussion:

Did you know that over half of the global voting populace will have the chance to vote in what’s been dubbed the biggest election year in history.

In this Market Perspective podcast, Vector’s Jason and Ezra discuss the S&P 500’s recent highs, economic trends, and the implications of geo-political events on the markets. We get into persistent inflation rates, noting a shift from anticipated declines to a slight acceleration, potentially altering the timeline for expected Federal Reserve interest rate cuts.

The labor market's resilience continues to be a pivotal force in economic moment...

In this latest podcast episode, David Moser, wealth advisor at Vector Wealth, discusses the implications of missing just the ten best days in the market over 20 years. We look at a recent 20-year period of the S&P 500 stock index and find that its performance was halved from 9.8% annualized to just 5.6% when missing those precious 10 days.

Put another way, an initial investment of $10,000 in the S&P 500, left untouched for 20 years, would have grown to around $65,000. Being out of the market on those ten big-upward-move days would result in the investment being worth just $30,000. *

This...

In our latest podcast, Vector wealth advisor, Charlie Gruys delves into the role of scenario planning to align one’s investment policy with their life needs and goals. The conversation explores how engaging with different financial scenarios may help clarify the path towards a more confident financial future. By carefully modeling various financial decisions, such as the purchase of new vehicles, paying off a mortgage, or planning a significant vacation, individuals can assess the impact of today’s decisions on their long-term financial well-being. 

The conversation also touches on different financial levers that individuals may use, such as: <...

Are annuities a boon or a bane for your portfolio? When is it wise to hold onto an annuity, and when might it be time to let go?

In this podcast episode, we talk through annuities with Vector senior wealth advisor Mike Nesheim. An annuity is a financial product issued by an insurance company, generally designed to create an income stream. Periodically, clients come to Vector with one or more annuities as part of their overall portfolio.

While everyone’s portfolio and financial situation is unique, there are some broad takeaways when it comes to an...

In this week’s episode of our Market Perspective podcast, we dive into recent financial news and its implications on the economy.

We kick off the discussion with Federal Reserve Chairman Jerome Powell's recent comments on potential interest rates adjustments. Powell said, “When we do get that confidence, and we’re not far from it, it’ll be appropriate to begin to dial back the level of restriction.” Jason and Ezra discuss what this means for inflation and the overall market.

The spotlight then turns to Warren Buffett and his enterprise, Berkshire Hathaway, particularly focusing on the sub...

Sharon Calhoun, managing director at Vector, is joined by senior housing counselors Liz Rue and Lisa Woltrang from Folkestone, a senior living community in Wayzata. In this conversation, they emphasize the necessity of discussing transitions during times of calm rather than crisis, allowing for thoughtful decision-making.

According to the Administration for Community Living, 70% of adults over 65 will require long-term care at some point, with an average stay of 3.2 years in a senior living community. Liz and Lisa highlight that senior living isn't just about nursing home stays but encompasses a range of options for active, maintenance-free lifestyles...

In our latest podcast episode, we talk about the Federal Reserve's recent stance on interest rates, sparked by Federal Reserve Chair, Jerome Powell's remarks this week. Contrary to the anticipated rate cut in March, Powell suggested such measures might not be immediately necessary, stating, “We don’t have a growth mandate.” 

The Fed’s comments have led to a recalibration of market expectations, underscoring the ongoing and significant influence that the Federal Reserve's outlook has on financial markets.

Our in-depth discussion touches on the broader economic context, particularly the U.S. debt situation. With the national...

Our Market Perspective this week covers several topics focused on markets and the economy. The timestamps and chapters listed below mark specific sections for easy access to topics. Otherwise, start from the beginning and enjoy a rich discussion of context and perspective.

(minutes : seconds ... chapters)

00:10 ... Put me in Coach

01:23 … Market Update

02:00 … Q4 Performance

04:06 … Magnificent 7 & Breadth

07:47 … Interest Rates

13:45 … After High Rates

16:35 … Inflation & CPI

21:54 … Consumer Balance Sheet

30:09 … Election Years & Returns

33:47 … Time in the Market vs Timing Markets

35...

The Securities and Exchange Commission, SEC, approved 11 Bitcoin ETFs this week. Now, I expect that many in our audience have heard of the digital asset Bitcoin, even if they are not sure what it is or why it’s valuable. Over the last three years, bitcoin’s price has ranged from a high of around $67,000 before plunging to $16,000 and is now up to over $43,000—volatility in spades.

The approval marks the first time a major regulatory body in the United States has approved this type of bitcoin investment vehicle. Starting January 11th, investors can use their brokerage accoun...

Key Take Aways

A concentrated position is when a single investment, often a stock, makes up more than 10 percent of a portfolio.

Concentration introduces a risk factor to the portfolio where the loss-of-value in a single position could materially impact the overall performance.

Selling a concentrated position may have tax consequences depending on the type of account where the investment is held.

Charitable contributions, multi-year disposition planning, and option strategies may be considered to lower potential tax burdens.

*Individual circumstances may vary.

Vector's Joe Grochowski, CFP® and J...

Investors, broadly, make rational decisions sometimes. For all the other times, emotion plays a part. This is not new; this is part of the reason markets go through cycles. The image of a sine wave with its peak and trough can be a useful way to visualize the glory and agony of participating in financial markets. It's normal to feel a range of emotions as we internalize the performance of our portfolios.