Everyone looking for a mortgage, carrying credit card debt, or looking for a loan, has noticed that interest rates have been climbing.  What might be less noticeable, particularly if you are banking with a large bank, is that interest yields on deposits have also been going up.  Unfortunately, large banks are being selective about passing these higher interest yields through to their depositors.  Many large banks will only provide those higher yields through to their customers if they tie the invested funds up using CDs or other withdrawal restrictions.  Such restrictions make it difficult to take advantage of the current higher interest rates for funds such as emergency funds, near term tax payments, or cash for that new car you are shopping for, because you can’t predict exactly when the funds will be needed.  Fortunately, there are solutions available for those willing to do a bit of homework.  At the current higher deposit yield levels, it is expensive to not take the time to get that idle cash into one of the many available higher yielding money market accounts.   

Taxes are pervasive in all aspects of our lives, including our investment decisions. This being the case, it is reasonable to expect a financial advisor to provide tax guidance on the various investment decisions we make. All too often, however, and for various reasons, financial advisors don’t give taxes the attention they deserve, resulting in missed opportunities that can have significant long-term consequences for the investor.

Did you know the Secure Act 2.0 includes a provision that, starting in 2024, would allow for 529 plan funds to be directly rolled over to a Roth IRA? This provides an excellent opportunity to convert unused 529 plan funds to start a retirement account for the beneficiary.

What Happened to Silicon Valley Bank?

Silicon Valley Bank (SVB), the 16th largest bank in the U.S., worth more than $200 billion, collapsed on March 10th, initially leaving many depositors unable to access their accounts. Although bank failures happen with some regularity in the U.S., this one in particular has roiled the financial markets and brought a great deal of scrutiny from regulators and investors, including many of our own clients. Here are some thoughts on the event and the unique circumstances behind it, as well as potential implications for the financial sector and the overall economy.

Why is tax planning important? 

That question is easy to answer - TO SAVE ON TAXES AND PRESERVE MY ASSETS.  Unfortunately, most advisors don’t focus seriously on this.  The reason?  It’s hard and requires specialized skill and training.