Pay off debt with a plan in mind

Strategies for minimizing interest payments and eliminating debt.

If you’ve accumulated more credit card debt than you can pay off in a few months, how can you quickly eliminate that debt while minimizing your interest payments?

The particular strategy you should follow will depend on many factors, including the total amount of debt, the nature of the debt, your credit score, your income and your financial plans. Because there are so many factors to consider, it’s best to talk to your advisor about the specifics of your situation, but below we share some general guidance.

A small amount of debt

If you’ve accrued a few thousand dollars in credit card debt, but you will be able to pay it off in 12 to 21 months, consider applying for a credit card with an introductory 0% APR period as well as a 0% balance transfer fee. The length of the 0% APR period can range from 15 to 21 months. If approved for the card, you could transfer your debt to it and pay it off during the 0% APR period, thereby avoiding any interest charges. The money you save can grow significantly, given the power of compounding.

However, before applying for the card, consider whether you plan on purchasing a home in the near future or applying for another type of loan. Applying for a new credit card might lower your credit score enough to negatively impact your loan application or the loan interest rate.

A significant amount of debt

If your debt is so substantial that you won’t be able to pay it off during the introductory period on a new credit card, you may want to seek a personal loan with a fixed interest rate. This interest rate is likely to be lower than the variable interest rate on your credit cards, and you can use the loan to pay off all the credit cards.

To choose the most favorable loan terms, you would want to use a debt consolidation calculator to compare different loan term options and the amount of savings each provides. Your advisor can also help you with the back-of-the-envelope calculations and parse your options (e.g., a securities-based line of credit).

Before seeking a loan, speak to your financial advisor about the specifics of your situation. They have likely helped others in the past who are battling debt issues and can help you find an objective way forward. If part of the debt is for medical bills, for example, your advisor may counsel you to first pursue having the medical debt forgiven. Your advisor may also recommend a nonprofit debt relief program, with counselors who will help you devise a debt reduction strategy for a small monthly service fee.

These counselors, along with other trusted financial professionals, can also recommend strategies that may help you avoid future debt problems.

Next steps

• Speak to your advisor about the details of your debt situation.
• Use online calculators to explore various debt reduction strategies.
• Compare nonprofit debt management program offerings and fees.
• Sources: incharge.org; debt.org; nerdwallet.com; bankrate.com

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.

Protecting your Social Security payout

To handle payments for a disabled senior, it's not enough to put powers of attorney, medical directives or guardianship arrangements in place.

One in three seniors will die with dementia.1 It’s a sobering statistic, and when you consider it alongside increasing longevity, it’s easy to see why planning for the potential impact of diminished capacity on your or a loved one’s future finances is critical.

An estimated 6.5 million Americans ages 65 and older are living with Alzheimer’s, and more than 11 million Americans are providing unpaid care for someone struggling with dementia.1 Numbers like these prove that planning for the possibility of long-term care and considering who will make decisions if you can’t is not simply smart, it is necessary. And that planning now – before you have the need or are unable to share your wishes – is essential.

Protecting yourself

When it comes to handling Social Security payments for a disabled senior, establishing powers of attorney, medical directives or guardianship arrangements may not be enough. The Social Security Administration (SSA) requires a special designation known as representative payee.

A representative payee is someone who acts on behalf of another person who is incapable of representing themselves and is responsible for directing payouts exclusively to meet a beneficiary’s needs. The SSA may determine that an individual is incapable of managing or directing someone else to manage his or her benefits and would then appoint a representative payee. Family members may also consult the SSA if they believe their family member necessitates a representative payee. Generally, a family member or friend serves as representative payee. If friends or family are not able to serve as payees, the SSA will look for qualified organizations to be representative payees.

The SSA requires that all legally incompetent adults and most minor children (a disabled child or young adult entitled to Supplemental Security Income, for example) have a representative payee. In most cases, the person in this role cannot be paid for the work they do on behalf of the incapacitated person. And the SSA requires them to keep careful records.

A critical thing to keep in mind about the responsibilities of acting as a representative payee is that the permissions that accompany the role do not extend to other facets of your affairs. Making medical decisions or signing legal documents on your behalf will still require that someone be granted powers of attorney or guardianship.

Protecting a loved one

If you assume the role of representative payee, the SSA offers a range of resources via ssa.gov, including a series of training videos, a downloadable guide and a frequently asked questions page. The process will likely require a trip to a Social Security office and a completed SSA-11 form explaining why the beneficiary needs assistance and why they have selected you for the job. Recall, too, that this designation will be in addition to any other legal or medical role you might be playing for your loved one. It’s one piece of the larger whole that, with forethought and planning, can help ensure your loved one’s – or your own – future is secure.

1 Alzheimer’s Association, “2022 Alzheimer’s Disease Facts and Figures”

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.

From the Desk of Dale Crossley and Evan Shear

Is a Recession in 2023 Likely?: 7 Indicators to Watch

"You get recessions, you have stock market declines. If you don't understand that's going to happen, then you're not ready, you won't do well in the markets." — Peter Lynch

As the ups and downs of the markets continue, we receive questions daily on whether we think that a recession in 2023 is likely. As you know, a healthy economy experiences recessions from time to time. Since 1945, the U.S. economy has experienced 13 different recessions. Most downward turns have lasted only about ten months, while periods of economic growth typically last about 57 months. Even the Great Recession of 2008 lasted only about 18 months.

Chatter about the possibility of a recession has been going on for months since the U.S. Gross Domestic Product (GDP) for the first and second quarters of 2022 turned negative. However, there's no official announcement, even after two consecutive quarters of negative GDP, because other economic indicators were strong in the same time frame. So, although we can’t predict a recession, here are the indicators to watch.

First, What Is a Recession?

A recession is a significant drop in economic activity generally identified by negative GDP in two consecutive quarters. Other leading economic indicators include:

• A drop in employment levels
• A decrease in consumer spending
• A reduction in industrial output

These indicators have to be significant, widespread, and prolonged for an official announcement to be made.

Review of Current Economic Indicators

The National Bureau of Economic Research (NBER) announces a recession when economic indicators show signs of a continued slowdown. Here's a review of the current economic indicators.

1. Gross Domestic Product (GDP)

The U.S. GDP had a positive growth of 2.9 percent in the final quarter of 2022. This was after a 3.2 percent growth in GDP in the third quarter. If two consecutive quarters with a negative GDP define a recession, the U.S. is not currently experiencing one.

2. Unemployment Rate

The U.S. labor market remains strong despite concerns for further slowdown and economic unsteadiness. The unemployment rate in December was 3.5 percent, lower than in December 2021. The job market was tight toward the end of the year, with the employment rate hitting a half-century low.

3. Consumer Price Index (CPI)

The inflation rate remains above the Federal Reserve's two to three percent target. This has a significant effect on purchasing power. In December 2022, CPI was at a positive 6.5 percent, down from 7.1 percent in November.

4. The Stock Market

The Dow Jones Industrial Average (DJIA) fell into a bear market in September 2022. This means it fell by more than 20 percent since its previous highest.

5. ISM Manufacturing Index

December 2022 was the second consecutive month that the manufacturing index fell in more than 29 months. The manufacturing PMI dropped from 49 percent in November to 48.4 percent in December 2022. This shows lower economic activity in the sector.

6. Industrial Production

Although industrial production in December 2022 was down 0.7 percent from the previous month, it was up 1.6 percent from 2021. This means that industrial output might appear stronger than a year ago.

7. Retail Sales

December 2022 retail sales were down 1.1 percent since the previous month but up six percent from 2021. This shows that the average consumer is careful about spending.

What Experts Are Saying

The Chief Economists of the World Economic Forum's Community expect a recession in 2023. Seventy-five percent of those surveyed for the Chief Economist Outlook believe this. According to the survey, 18 percent consider a recession extremely likely, compared to nine percent in the previous September 2022 survey.

They further anticipate monetary tightening in Europe and the U.S. as geopolitical tensions continue to affect the global economy. All the respondents expect weak economic growth in Europe, while 91 percent expect weak growth in the U.S. This is a significant increase compared to the previous survey, where 86 percent expected weak growth in Europe and 64 percent expected it in America.

How Long and Severe Will a Recession in 2023 Potentially Be?

Since recessions have many indicators, NBER, the agency that officially calls them, has difficulty predicting their length and severity. Although the GDP is a significant indicator and was negative for two consecutive quarters, the agency couldn't announce a recession because other indicators didn't confirm a recession.

Final Thoughts on the Likelihood of a Recession in 2023

Recessions are an inherent part of an economy and, unfortunately, affect the markets and investments. However, history tells us that markets recover over time. Staying invested and using a sound investment strategy, such as Voyage, is the best defense against times of economic downturn. We can’t predict whether a recession will be a reality in the coming year, but we can help prepare your portfolio to best weather 2023, with or without a recession.

Please do not hesitate to reach out with questions or concerns about your financial plan.

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.

Great wealth, great responsibility for elite young athletes

High-profile competitors – including those in college – can profit tremendously from name, image and likeness (NIL) deals. But making sudden wealth permanent requires a long-term focus.

In 2021, the U.S. Supreme Court ruled that the NCAA’s ban on players receiving compensation other than scholarships failed to meet statutory muster. Soon after, the first name, image and likeness (NIL) deals started to emerge. And now, massively popular student-athlete influencers with social media followings in the hundreds of thousands – or millions, in some cases – are able to benefit from their personal brands.

As more deals emerge, it appears endorsement deal negotiations may become part of these athletes’ unofficial education. For college athletes (and anyone navigating a windfall), this new world brings both opportunity and risk.

Let’s talk numbers

Realistically, except for spotlight players in major sports, the value of NIL deals for college athletes may be limited, according to a survey of sports marketing insiders performed by ESPN. A men’s basketball or football player might expect to earn between $5,000 and $20,000 in NIL contracts during their tenure – mostly from niche or hometown brands. An athlete in a non-revenue sport like track and field might expect to earn between $1,000 and $3,000 in NIL deals.

However, All-American athletes could land up to $1 million in endorsement deals, according to ESPN’s panel. And for a generational headliner, the sky’s the limit.

A player’s established social media audience is expected to be a major com­ponent of their brand’s worth, according to a study by AthleticDirectorU and the research firm Navigate performed in 2019, before the Supreme Court’s deci­sion. That is, a championship-winning college quarterback doesn’t neces­sarily have a higher endorsement value than a standout gymnast with gobs of Instagram followers.

The risks of sudden wealth

Lottery winners, surprised inheri­tors, and sports and entertainment stars have a lot in common, financially speaking. And the stories of lavish lifestyles followed by sudden collapses are ripped from bankruptcy filings and spread like modern morality tales.

Those who experience sudden gain and loss say it’s not always because of super­cars and mansions. Strategic, holistic wealth manage­ment isn’t typically learned on the fast road to fame, and since sports stars aren’t typical employees with their sponsors, it’s easy for them to get caught underprepared for taxes, among many other things.

Some have also told stories of family and friends coming to them with dire financial needs and a feeling of enti­tlement, strangers with sob stories claiming their lives are in their hands, and grifters of every sort. Paranoia, isolation and behavioral shifts have followed, leading to what psychologists have called sudden wealth syndrome.

Strategies for saving and spending can make it easier to compartmentalize and handle these concerns, especially with the help of a trusted third party.

The goal: Make the temporary permanent

Earnings from fame are often short-lived – a college sports career is at most four years, and the public’s memory fades quickly. The top financial goal after any endorsement should be converting its temporary earnings into a lifelong wealth strategy.

For more modest NIL earners, using endorsement checks to invest in tax-advantaged or tax-deferred finan­cial instruments like traditional IRAs, Roth IRAs or health savings accounts (HSAs) can help reduce the amount of top-bracket taxes they are paying and provide a strong foundation for effective wealth building.

For superstars, it gets a lot more complicated.

Managing wealth can be over­whelming even when it’s built over a long career, let alone when needing to spin up a financial plan, investment portfolio, tax strategy and maybe a limited liability corpora­tion, essentially overnight.

Taxes, in particular, will be high com­pared to many other high earners who gain wealth through capital investment. Maxing out tax-advantaged investment plans every year can be part of the strategy, but there are many options depending on goals.

If the athlete is charitably minded, it may also be a good idea to create a philanthropic account like a donor advised fund, allowing them to compartmentalize personal requests while reducing their tax liabilities during high-earning years.

High-earning young athletes – as well as most young adults – should seek a professional team for guidance in understanding the complexities of strategies that can help grow and pre­serve wealth. A financial advisor, tax attorney and accountant with a track record of working with high-net-worth individuals can help.

Young athletes are a prime target for financial con artists. When selecting your financial team, it’s important to check their track records and sniff out bad actors. Here are some red flags:

• Guarantees about invest­ment returns or “beating the market”
• No established community presence
• Rushes clients into decisions
• It’s unclear how they are paid
• Pushes exclusive investmentsMakes clients feel overwhelmed

A job for every dollar

Even the best investment strategies will come short against excessive spending.

A zero-based budget is a good framework for setting boundaries while enjoying newfound wealth. With it, budgeters earmark every dollar, setting aside portions for things like taxes and housing, investments and retirement plans, cash savings, and luxuries and entertainment. There can be as many buckets as needed to suit one’s particular circumstances. It also makes it easier to avoid trying to keep up with the Joneses, because in the world of sports entertainment, there is always a bigger Jones.

According to Sports Illustrated, 78% of NFL players face bankruptcy within two years of leaving the game. For NBA players, the rate is 60% by five years.

Many universities and sports con­ferences are creating or contracting resources to help college athletes navigate the complexities of this new world. One example is Michigan State’s EverGreen program, which aims to help its athletes understand their market value, the specifics of NIL contracts and the many financial considerations.

Great expectations

While fame fades, fortune doesn’t have to. Vanishingly few athletes make it to the pros, but being an NCAA athlete is a compelling line on a resume. It can be a major stepping stone for a young professional starting the next stage of their life. Earnings made from their sporting years amplify that advantage, but only if they are used in a way to secure a better future.

Sources: CBS News; CBS Sports; ESPN; Sports Illustrated; Forbes; Kiplinger; Statista; NILNetwork.com; AthleticDirectorU.com; The Washington Post; NPR; theonlycolors. com; KTRK-TV Houston

Donors are urged to consult their attorneys, accountants or tax advisors with respect to questions relating to the deductibility of various types of contributions to a donor advised fund for federal and state tax pur­poses. To learn more about the potential risks and benefits of donor advised funds, please contact your financial advisor.

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.

Skinny Salmon Tacos Recipe With Red Cabbage Cilantro Slaw & Chipotle Sauce

by 30Seconds Food

What happens when Mediterranean meets Mexican food? This easy skinny salmon taco recipe with cabbage and cilantro slaw and chipotle sauce! How delicious does that sound for a light, healthy dinner?

The salmon fillets are seasoned with chili powder, ground cumin and oregano before being baked until moist and flaky. The cabbage slaw is finely shredded red cabbages, cilantro, green onions, minced jalapeno, lime juice and mayonnaise. So simple and refreshing. The creamy chipotle sauce is mayonnaise, sour cream, chipotle in adobo sauce, lime juice and garlic. Combine all those flavors and you have one tasty taco!

You could easily substitute leftover salmon in this fish taco recipe and cut the cooking time out. If you don't like salmon, try cod, redfish or tilapia instead. This tasty, flavor-packed 30- minute recipe will change how you think about taco night.

Cuisine: Mexican/Mediterranean Prep Time: 15 minutes

Cook Time: 10 minutes Total Time: 25 minutes Servings: 4

Ingredients

• salmon fillet (1 to 11/2 pounds)
• 2 teaspoons chili powder
• 1 teaspoon ground cumin
• 1/2 teaspoon dried oregano
• olive oil

Red Cabbage Cilantro Slaw

• 2 cups finely shredded red cabbage
• 1/4 cup chopped fresh cilantro
• 2 green onions, chopped
• 1 tablespoon minced jalapeno (optional)
• 1 tablespoon lime juice
• 2 tablespoons mayonnaise Chipotle Sauce
• 1/8 cup mayonnaise
• 1/2 cup sour cream
• 1 chipotle in adobo sauce (here's how to save chipotles in adobo sauce for later)
• 1- 2 teaspoons lime juice
• 1 clove garlic For Serving
• taco shells or tortillas
• lime wedges

Here's how to make it:

1. To make the slaw, put the cabbage, cilantro, green onion and jalapeno into a bowl. Combine the lime juice and mayonnaise. Season with salt and pepper. Add it to the cabbage mixture and toss to coat.
2. To make the chipotle sauce, combine all the ingredients in a blender. Pulse until smooth. Season with salt and pepper.
3. To make the salmon, put it onto a greased baking sheet. Brush with a little olive oil. Combine the chili powder, cumin and oregano. Season the salmon with salt and pepper. Sprinkle with the seasoning. Bake in a preheated 450-degree F oven for about 5 to 10 minutes, depending on how thick the fish is. Remove and flake into large chunks.
4. To serve, fill taco shells or tortillas with some salmon, top with slaw and drizzle with the chipotle sauce. Garnish with lime wedges.

Note: 30Seconds is a participant in the Amazon affiliate advertising program and this post contains affiliate links, which means we may earn a commission or fees if you make a purchase via those links.

Recipe cooking times and servings are approximate. Need to convert cooking and baking measurements? Here are some kitchen conversion charts. Here's how to submit your recipes to 30Seconds.

Skinny Salmon Tacos Recipe With Red Cabbage Cilantro Slaw & Chipotle Sauce | Seafood | 30Seconds Food

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.