CrossleyShear Wealth Management's Media

From the Desk of Dale Crossley and Evan Shear

From the Desk of Dale Crossley and Evan Shear

We hope that you and your loved ones are staying well. For this edition of The Journey, you’ll find some timely articles on Medicare open enrollment and 529 Plans. We’ve also given our “From the Desk of Dale and Evan” a new title – “Déjà vu All Over Again.” In our last quarterly edition, we were essentially dealing with many of the same issues as we are now. Although the markets continue to do very well – and for that, we’re grateful – on the horizon, we have ongoing concerns about inflation and the potential for rising interest rates. The surge of cases due to the delta variant, not a concern last quarter, is the one new caveat. The surge may be starting to have a slowing effect on the economic recovery.

We’re continuing to see the greatest surge in U.S. inflation in 13 years, with most thought leaders affirming that it’s transitory and as supply chains are improving, inflation will settle down. While some sectors are meeting the demand for goods, others are experiencing shortages of labor and materials. At this point, we’re not sure how much of this might be caused by the delta variant surge and whether it has the potential to further affect the supply chain and, ultimately, the economy overall. 

With headlines continuing about the rise in inflation, concerns about the possibility of rising interest rates go hand-in-hand. There’s a delicate balance between keeping interest rates low, the Fed’s most powerful tool in helping the economy recover from the pandemic, and the need to keep inflation in check. However, the weak job reports from August, with lower than expected job creation, creates more complexity. The slowing may be due to several factors, including the summer season, but may also indicate that the delta variant is beginning to affect the economy. Nevertheless, in light of the slowing in the job market, experts believe the Feds will keep interest rates low and tolerate some inflation. For more detail, you can watch Raymond James’ Scott Brown, Chief Economist, brief but informative video here

We’re certainly hoping that the next quarterly issue will be “Déjà vu All Over Again” where market performance is concerned. As always, if you have questions or concerns, please reach out – that’s why we’re here.

We hope that you and your family continue to remain well. 

Take care,

Evan Shear                                                                                    Dale Crossley, JD
CERTIFIED FINANCIAL PLANNERTM                                  Financial Planner

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.

There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. All opinions are as of this date and are subject to change without notice. Past performance is not a guarantee of future results.

The Outlook for Vaccines, Variants and Elusive Herd Immunity

The Outlook for Vaccines, Variants and Elusive Herd Immunity

How do COVID-19 vaccines perform against the delta variant? When is FDA approval expected? And is herd immunity really achievable?

Raymond James Biotechnology Analyst Steve Seedhouse, Ph.D., addresses these questions and more in the latest episode of For What It’s Worth. Hear him discuss the latest data around vaccine effectiveness, the transition from pandemic to possible endemic and how COVID-prompted innovation may open the door for the prevention of other illnesses.



Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.

Grilled Halibut with Tomatoes and Hearts of Palm

Grilled Halibut with Tomatoes and Hearts of Palm

BY SEAMUS MULLEN

Cooking fish doesn't need to be intimidating. In fact, few things could be simpler—or more rewarding. For meaty steaks of swordfish, albacore, and halibut, all you need is a kiss of high heat from a grill or cast-iron pan and a simple vinaigrette. Zesting citrus directly onto your food means no wasted precious aromatic oils and zero chance of the zest drying out before you use it.

Ingredients
¼ cup olive oil, plus more for grill and drizzling
1 lemon
4 (5–6-ounce) skinless, boneless halibut fillets
Kosher salt, freshly ground pepper
2 pounds mixed heirloom tomatoes, sliced
½ cup sliced drained hearts of palm
Torn basil leaves (for serving)

Step 1
Prepare a grill for medium heat; oil grates. Finely grate 1 tsp. lemon zest directly onto halibut and lightly drizzle with oil; season with salt and pepper. Grill halibut, turning once, until browned on both sides and just opaque in the center, about 5 minutes.

Step 2
Meanwhile, combine tomatoes, hearts of palm, and ¼ cup oil in a medium bowl; squeeze in 2 Tbsp. juice from lemon and toss to combine. Season with salt and pepper.

Step 3
Toss basil into tomato salad. Serve halibut with tomatoes and dressing spooned over.

 

URL to article:  https://www.epicurious.com/recipes/food/views/grilled-fish-halibut-with-tomatoes-and-hearts-of-palm

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.

Don’t Underestimate One of Your Most Precious Resources… Time

Don't Underestimate One of Your Most Precious Resources... Time

Doug Drabik discusses fixed income market conditions and offers insight for bond investors.

"Ongoing perfect timing of the markets is impossible, yet time is efficiently critical and absolutely irreplaceable. Don’t let irreplaceable moments vanish in pursuit of an expected impossible execution."

No matter where interest rates are, at 10% or 1%, it is highly probable that your portfolio requires some level of principal protection. Principal protection knows no interest rate level. You cannot control interest rates but you can control how you choose to protect the assets that you don’t want to lose. Individual bonds are a critical component of long term investment and long term investment strategies. Substitute investment products come with some risk trade-off which is completely counter-intuitive to the protection being sought.

When interest rates are low, protecting your principal comes at the expense of lower levels of income. This is one of those instances where discipline to long term thinking and benefits are fundamental to most investor’s ultimate goal of protecting what they have. It is easier to protect your principal than to replace it. Stay Disciplined. Stay invested. Stay appropriately allocated to wealth preservation assets.

This market has made income generation challenging but individual bonds balance growth assets as well as protect principal. Our ongoing mission is to discuss ways to hold on to what you’ve earned with analytical and sound long term thinking regarding how to invest and retain this wealth. Portfolio optimization commands lifetime discipline with the use of both growth assets and individual bonds. Time is a most valuable resource that if lost, cannot be recovered so don’t waste or lose it… stay invested and appropriately allocated.

To learn more about the risks and rewards of investing in fixed income, please access the Securities Industry and Financial Markets Association’s “Learn More” section of investinginbonds.com, FINRA’s “Smart Bond Investing” section of finra.org, and the Municipal Securities Rulemaking Board’s (MSRB) Electronic Municipal Market Access System (EMMA) “Education Center” section of emma.msrb.org.

The author of this material is a Trader in the Fixed Income Department of Raymond James & Associates (RJA), and is not an Analyst. Any opinions expressed may differ from opinions expressed by other departments of RJA, including our Equity Research Department, and are subject to change without notice. The data and information contained herein was obtained from sources considered to be reliable, but RJA does not guarantee its accuracy and/or completeness. Neither the information nor any opinions expressed constitute a solicitation for the purchase or sale of any security referred to herein. This material may include analysis of sectors, securities and/or derivatives that RJA may have positions, long or short, held proprietarily. RJA or its affiliates may execute transactions which may not be consistent with the report’s conclusions. RJA may also have performed investment banking services for the issuers of such securities. Investors should discuss the risks inherent in bonds with their Raymond James Financial Advisor. Risks include, but are not limited to, changes in interest rates, liquidity, credit quality, volatility, and duration. Past performance is no assurance of future results.

Stocks are appropriate for investors who have a more aggressive investment objective, since they fluctuate in value and involve risks including the possible loss of capital. Dividends will fluctuate and are not guaranteed. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.

Did You Know 529s Are Powerful Estate Planning Tools?

Did You Know 529s Are Powerful Estate Planning Tools?

Most of us associate 529 accounts as college savings vehicles. They’re flexible, allowing you to transfer assets to anyone, including yourself, for the express purpose of furthering the education of your beneficiary. But did you know that a 529 can be a powerful estate planning tool, too?

Modern estate planning
Not everyone is in a position to set aside money for the next generation without jeopardizing their own goals, but if you’re fortunate enough to do so, it’s worth looking into your options.

Specialized savings accounts, informally referred to as 529s, could be at the top of your list. They have quite a few advantages for the beneficiaries – but there are benefits for the donors, too, given the high maximum contribution limits and tax advantages.

The special tax rules that govern these accounts allows you to pare down your taxable estate, potentially minimizing future federal gift and estate taxes. Right now, the lifetime exclusion is $11.58 million per person, so most of us don’t have to worry about our estates exceeding that limit. But that new threshold is due to revert back to just over $5 million per person by 2025.

The framework
Under the rules that uniquely govern 529s, you can make a lump-sum contribution to a 529 plan up to five times the annual limit of $15,000. That means you can gift $75,000 per recipient ($150,000 for married couples), as long as you denote your five-year gift on your federal tax return and do not make any more gifts to the same recipient during that five-year period. However, you can elect to give another lump sum after those five years are up. In the meantime, your investments have the luxury of time to compound and potentially grow.

So if you’re following along, that $150,000 gift per beneficiary won’t incur gift tax as long as you and your spouse follow the rules. You’ll also whittle your taxable estate by that same amount, potentially reducing future estate tax liabilities. That’s because contributions to 529s are considered a completed gift from the donor to the beneficiary.

Other benefits
Many people worry that gifting large chunks of money to a 529 means they’ll irrevocably give up control of those assets. However, 529s allow you quite a bit of control, especially if you title the account in your name. At any point, you can get your money back. Of course, that means it becomes part of your taxable estate again subject to your nominal federal tax rate, and you’ll have to pay an additional 10% penalty on the earnings portion of the withdrawal if you don’t use the money for your designated beneficiary’s qualified education expenses.

If your chosen beneficiary receives a scholarship or financial aid, they may not need some or all of the money you’ve stashed away in a 529. So you’ve got options here, too.

  • You can earmark the money for other types of education, like graduate school.
  • You can change the beneficiary to another member of the family (ideally in the same generation), as many times as you like, since most 529s have no time limits. This option is particularly helpful if your original beneficiary chooses not to go to college at all.
  • You can take the money and pay the taxes on any gains. Normally, you’d expect to pay a penalty on the earnings, too. But that’s not the case for scholarships. The penalty is waived on amounts equal to the scholarship as long as they’re withdrawn the same year the scholarship is received, effectively turning your tax-free 529 into a tax-deferred investment. Of course, you can always use the funds to pay for other qualified education expenses, like room and board, books and supplies, too.
    Plus, many plans offer you several investment choices, including diversified portfolios allocated among stocks, bonds, mutual funds, CDs and money market instruments, as well as age-based portfolios that are more growth-oriented for younger beneficiaries and less aggressive for those nearing college age.

Bottom line
Saving for college takes discipline, as does estate planning. Talk to your professional advisor about the nuances of different investment strategies and vehicles before making a years-long commitment.

Sources: Mercer; Broadridge/Forefield

Earnings in 529 plans are not subject to federal tax and in most cases state tax, as long as you use withdrawals for eligible college expenses, such as tuition and room and board. However, if you withdraw money from a 529 plan and do not use it on an eligible higher education expense, you generally will be subject to income tax and an additional 10% federal tax penalty on earnings. As with other investments, there are generally fees and expenses associated with participation in a 529 plan. There is also a risk that these plans may lose money or not perform well enough to cover college costs as anticipated. Most states offer their own 529 programs, which may provide advantages and benefits exclusively for their residents. An investor should consider, before investing, whether the investor’s or designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state’s qualified tuition program. Such benefits include financial aid, scholarship funds, and protection from creditors. The tax implications can vary significantly from state to state.

Please note, changes in tax laws may occur at any time and could have a substantial impact upon each person's situation. You should contact your tax advisor concerning your particular situation. Every investor’s situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Investing involves risk and you may incur a profit or loss regardless of strategy selected.

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.

Find us on Facebook