In part 1 of our Estate Planning Podcast Episodes, I welcome Jon Linford, a seasoned estate planning attorney from Morris Hall. We delve into the complexities and critical considerations of estate planning, a topic of utmost importance for anyone concerned about their financial future. Jon, who has been practicing law since 2011, transitioned from civil litigation to estate planning, driven by a passion for protecting clients' assets and ensuring smooth transitions for their estates.

The conversation centers on the benefits and nuances of setting up a living trust, particularly in Arizona. Jon emphasizes that while not everyone may need a living trust, it offers significant advantages, especially in avoiding probate—a costly, time-consuming, and public process. We discuss how a living trust simplifies real estate management, particularly when multiple beneficiaries are involved, as opposed to relying on an Arizona beneficiary deed, which can complicate matters when a property is left to multiple heirs.

Another critical topic is the proper titling of taxable investment accounts. Jon explains that by placing these accounts in a living trust, couples in Arizona can take advantage of the state's community property laws. These laws allow for a full step-up in basis upon the death of one spouse, potentially eliminating capital gains taxes on appreciated assets. Additionally, Jon highlights the importance of preparing for potential incapacity, noting that trusts can simplify financial management during such times, often more effectively than powers of attorney.

The discussion also covers the vital and critical role of healthcare documents in estate planning. Jon stresses the necessity of having a Durable Healthcare Power of Attorney and a Mental Healthcare Power of Attorney, which is particularly important in Arizona. These documents prevent the need for costly and public guardianship proceedings, ensuring that the appointed agent can make timely healthcare decisions. Jon also shares insights on the challenges posed by outdated powers of attorney and the importance of keeping these documents current!

We also discuss the growing importance of addressing digital assets in estate planning as the digital age advances. Jon advises clients to ensure their legal documents grant access to digital accounts and assets and to consider using password managers or other secure methods to share access with trustees. We touch on the complexities of managing cryptocurrency in estate plans, highlighting the need for careful planning to ensure heirs can access these assets.

This episode provides valuable insights into the essential elements of estate planning, offering practical advice on how to protect assets and ensure a smooth transfer of wealth. Jon Linford's expertise combined with my 27+ years as a wealth manager offer listeners a clear understanding of why careful estate planning is crucial, especially in today's complex financial landscape.

Contact info for Jon Linford and Morris Trust: https://morristrust.com/

Phoenix: 602-249-1328 Northern Arizona: 928-774-0333

For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/

Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.

For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/

Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia

Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

In this episode of "Protecting and Preserving Wealth," we continue our discussion from our previous episode, starting with interest rates and the Federal Reserve's actions. Bruce notes that the 10-year treasury rate has risen to 4.44%, highlighting the market's control over this rate rather than the Federal Reserve. Despite predictions of a recession, we don't foresee it occurring this year. The Federal Reserve faces pressure to lower interest rates, which impacts the real estate market significantly. Housing prices have remained stable despite fewer sales, contributing to inflation concerns.

Jason points out the delicate balance the Fed must maintain between controlling inflation and supporting economic growth. Interest rates are expected to remain high for an extended period, gradually decreasing over the next few years. We discuss the historical context of interest rates, noting that current rates, though high in the short term, are still relatively low compared to past decades.

The conversation shifts to public versus private equity. Bruce explains that there are fewer than 6,000 publicly listed companies, while private companies number around 6 million. Investing in private equity offers opportunities for growth and diversification, often independent of public market fluctuations. Jason adds that private equity investments can provide significant returns due to their unique growth cycles and management strategies.

We also address the impact of the Federal Reserve's interest rate hikes on the stock market. Despite higher rates, the market has performed well historically during such cycles. As the Fed lowers rates in response to economic conditions, businesses will need to adapt to maintain profitability.

The discussion touches on the current employment landscape, with tech companies laying off employees and shifting work-from-home policies. This belt-tightening reflects broader economic concerns and impacts consumer confidence, which remains lower than pre-COVID levels overall. Political affiliation also influences consumer sentiment, with conservatives generally more pessimistic about the economy at present. This does track with historical data: the party NOT in the White House tends to have a more pessimistic view of the economy.

We conclude by emphasizing the importance of diversifying investments and the potential of private equity. Bruce remains optimistic about market prospects, especially with the ongoing advancements in AI technology. He encourages listeners to consider these factors in their financial planning.

Disclosure: Investing in alternative investments or private equity may not be suitable for all investors and involves special risks, such as risk associated with leveraging the investment, utilizing complex financial derivatives, adverse market forces, regulatory and tax code changes, and illiquidity. Investors in this asset class are usually required to commit significant capital for years, which is why access to such investments is generally limited to institutions and individuals with high net worth. There is no assurance that the investment objective will be attained.

For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/

Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.

For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/

Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia

Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler

Today, we are taking a midyear look at the financial markets for 2024, focusing on key metrics and trends influencing our investments and financial decisions.

As of our recording date of July 2nd, the S&P 500 has impressively risen over 15%, currently standing at 5,495. Bruce explains that the price-to-earnings (PE) ratio is at 20.99, indicating a slightly higher but not alarming level compared to historical averages. Jason adds that a pullback is possible despite the market’s strong performance, though they remain optimistic about the market’s upward trend through the year’s end.

We delve into the resilience of major companies within the S&P 500, such as Nvidia, Apple, and Microsoft, collectively representing a significant portion of the index. Jason discusses how these companies’ consistent earnings and product demands are likely to sustain their growth, despite potential short-term pullbacks, providing a sense of stability to our investments.

Regarding annual returns and intra-year declines, Jason notes that typical market behavior includes pullbacks, even in strong years. This year’s largest drawdown is 5%, but overall, the market is up 15%. I emphasize the potential benefits of long-term investment strategies, suggesting that market volatility can be advantageous if investments are not sold prematurely, instilling a sense of optimism in our investment approach.

On consumer finances, Jason highlights signs of financial stress due to inflation, particularly for lower-income households. Despite this, household debt service ratios remain historically low at about 9.9%, indicating relative financial health compared to the past four decades.

However, savings rates are under 4%, a concerning drop from previous years. We stress the need for prioritizing savings as part of financial planning, noting that inflation and higher living costs are squeezing household budgets. By prioritizing savings, we can empower ourselves to navigate these financial challenges more effectively.

Inflation remains a significant issue, with ongoing impacts on various sectors, especially those sensitive to interest rates like real estate and finance. I point out that inflation is proving challenging to control despite the Federal Reserve’s high interest rates. Oil prices, for instance, are still rising, complicating efforts to stabilize the economy.

Interest rates influence investment strategies, shifting preferences within portfolios. Jason notes that higher interest rates can benefit fixed-income investments while still posing challenges for businesses and consumers. Companies are grappling with higher costs and interest payments, which affect profit margins and necessitate selective investment strategies.

As we wrap up part one of our midyear review, it’s clear that inflation and interest rates remain pivotal topics. We’ll continue this discussion in part two, examining additional financial trends and providing more insights for navigating the rest of 2024.

For more information about anything related to your finances, contact Bruce Hosler and the team at Hosler Wealth Management: Visit them online at https://www.hoslerwm.com/

Or call them in their Prescott office at (928) 778-7666 or their Scottsdale office at (480) 994-7342.

For more podcast episodes, visit our podcast website at https://hoslerwm.com/protectingwealthpodcast/

Limitation of Liability Disclosures: https://www.hoslerwm.com/disclosures/#socialmedia

Copyright © 2022-2024 Hosler Wealth Management LLC, All Rights Reserved. #ProtectingWealthPodcast #ProtectingandPreservingWealthPodcast #HoslerWealthManagement #BruceHosler