October is National Financial Planning Month!

If you have not updated your financial plan in a while or have yet to put a plan in place, please reach out to your Signature Wealth Management advisor. 

Our team wants to help make your life simpler and more productive using our consistent and disciplined approach to financial planning.

Market Outlook

First Trust Market Outlook
Brian S. Wesbury – Chief Economist
Robert Stein, CFA – Dep. Chief Economist
Strider Elass – Senior Economist
Andrew Opdyke, CFA – Senior Economist
Bryce Gill – Economist

We’ve been consistently bullish on stocks since 2009. This bullishness has paid off, although not every year; stocks fell in 2015 and 2018. But, since 2009, the market has rebounded from every correction. Why have we stayed bullish? Because our Capitalized Profits Model has consistently shown the S&P 500 as “undervalued” since 2009. It still shows this today.

To continue reading the article from First Trust, please click this link.

This post was prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward-looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.

Office News

The happy couple were wed in Minneapolis on Friday, August 27th.

Tax Corner

Tax law changes are coming. In the short term, we need to be aware of the provisions in the Build Back Better Act working its way through congress that will be the most significant tax reform we’ve seen since 1986. Keep in mind that nothing is yet law, and the eventual tax law we’re left with could look vastly different than what’s proposed today. One provision that affected clients should act on in 2021 is the Federal estate and gift tax exemption decreasing from $11.7 million per individual to $5.85 million per individual. For individuals that may have an estate that exceeds $5.85 million for a single person at death or $11.7 million for a couple at death, they should consider making wealth transfers today to use the higher exemption limit. Keep in mind that, to receive benefit, a client would have to use at least $6 million of their exemption.

The second provision clients should consider acting on now is backdoor Roth conversion, or nondeductible IRA contributions that are converted into Roth IRAs. The ability to do a backdoor conversion will likely go away in 2022. Regular conversions and contributions are still allowed, subject to certain high-income taxpayer limits.

Longer-term, we are likely seeing the lowest income tax rates today that we’ll see in our lifetime. The US Federal debt increased from a deficit of just over $5 trillion in 2000 to $28.4 trillion today, and is increasing steadily as we eye a $4.5 trillion dollar agenda in congress. At some point, that debt will need to be repaid, and will be done through higher taxes. Having a higher percentage of savings investing in after-tax vehicles will position taxpayers well in future years.

Your Signature Wealth Management advisors are ready to have conversations around these topics and plan with you for what is coming.

What is an ESG Fund?

Some of you may be asking “What is ESG?” ESG stands for Environmental, Social and Governance. ESG criteria is a set of standards for how a company operates. Here are some examples of those criteria standards:

Environmental criteria may be used to evaluate any environmental risks a company may face and how they manage those risks. It may include how the company’s energy use, air and water pollution, natural resource conservation or treatment of animals.

Social criteria may include the consideration of people and relationships. Does that company work with suppliers that have the same values as they claim to hold. Does the company’s working condition show high regard for their employee’s health and safety? This also checks on the company’s data protection and privacy.

Governance criteria looks for standards for running a company. It may look for transparent accounting methods and if they avoid conflicts of interest within their board members. It may also include political contributions or executive compensation.

It is important to know that no simple company may pass every test in the above categories. If you are interested in learning more about ESG funds or companies, please reach out to your Signature Wealth Financial Advisor.

Fun Facts and Life Hacks!

Winter is just around the corner. Below is a checklist to help you get your car ready for the upcoming cold winter months.

  1. Change your oil
  2. Check your battery
  3. Check your defroster and heater
  4. Check your tires
  5. Keep your gas tank filled (at least 1/4 to 1/2 way full at all times)
  6. If you don’t have an emergency kit already in your car, now is the time to put one together.

To see a full checklist from AAA, please click here.