MONTH-2-MONTH is intended to provide you with updates on AFP and timely financial planning and investment information on a variety of topics. 

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• Music on the Lawn – AFP is a sponsor of the Grandview Heights Public Library's 38th annual Music on the Lawn concert series. We are sponsoring the August 27th concert where the Whirlybirds will be performing. The Whirlybirds are a Columbus-based Swing Jazz band and they can be seen performing at Natalie's in Grandview every Saturday at 5 pm. Teri also knows Joe, one of the band members. He has been her flute teacher for the last year.

• One Goal, End Cancer – We want to highlight the stories of a few people riding in this year's Pelotonia. Please consider supporting them by making a donation to this worthy cause.
• Our colleague, Natalie Murch, is riding 50 miles, along with her daughter Alex. They are riding in honor of Natalie's husband and parents (Alex's father and grandparents) who were taken too soon to cancer, and also Natalie's sister-in-law who continues her treatment. Their donation links are listed below.

Natalie: https://www.pelotonia.org/profile/NM0069

Alex: https://www.pelotonia.org/profile/AM553223

• One of our clients, John Hamlett, is riding 50 miles with Team Cleary Cyclers. He began riding in Pelotonia 5 years ago in honor of friends who had lost their battles with cancer. He now rides in honor of everyone in his life that is still fighting or has overcome their battle with cancer. His donation link is listed below.

John: https://www.pelotonia.org/profile/JH0569

• AFP July Webinar – “2024 Mid-Year Economic & Investment Outlook” with Teri Alexander CFP®, MSFP, CeFT®, AIF on Friday, July 26th at noon. This webinar will be a discussion about what happened in the first half of 2024, where we are now, & how are things shaping up for the second half.

• How do you attend? A webinar link will be sent via email the morning of the webinar to all of our clients. If you know anyone who would like to attend, please pass along the webinar email to them.

• Upcoming Webinar Topics 

• August: Life/Disability Insurance

Click below to read our July 2024 Blog edition.

Mid-Year Tax Checkup

We would enjoy receiving your feedback on our Blog. Please share any comments or suggestions for future topics with us via email.

Tahquamenon Falls

DEFLATION – The US Consumer price index (CPI) fell month over month in June for the first time in over 4 years. In reaction, market pricing for at least one Fed rate cut by September ticked up to 87%. (source: BLS, CME)

AI TAKING JOBS – Over the past 12 months, the Richmond Fed found that over 37% of companies have used AI to automate tasks previously done by employees and over half (53%) plan to automate some jobs in the next 12 months. Large companies expect the largest shift, with over 76% planning to automate certain jobs. (source: Richmond Fed)

HOUSING STARTS SLOW – In May, Housing starts in the US hit their lowest level since June 2020, coming in at 1.277 million on a seasonally adjusted annualized basis. Since hitting a post-pandemic high of 1.83 million new homes started in April 2022, housing starts have fallen 30%. (source: US Census Bureau)

SCORES MATTER – The average interest rate on a used car in Q4 of 2023 was 11.9%, but varied wildly based on credit score. While the average rate for a super prime borrower (780+ credit score) was 7.7%, the average rate for near prime borrowers (600-660 score) was 14.1% and for subprime borrowers (500-600) was 18.9%. (source: Associated Press)

Do You Have a Plan in Place?

It has been said that we are in the midst of the greatest transfer of wealth from one generation to another. Current reporting shows that Baby Boomers, born between 1946 and 1964, collectively hold the most wealth in the U.S., with $76.2 trillion in assets. This is despite equaling only 20% of the total population. 

Many Baby Boomers are already in retirement or moving in that direction over the next few years. If you are one, do you have a plan in place that steps you into the future? Shifting from accumulating assets to using your assets to meet your retirement needs can be scary and exhilarating at the same time. It’s important to have a plan that rewards you for your hard work and balances your spending needs while providing for the next generation if this is your desire. 

It may come as a surprise to know that Millennials, many 28-43 years old, have been saving at a rate far surpassing other generations. So, if you plan on naming younger people as your heirs, it may be important to have some conversations around this topic. Alexander Financial Planning is here to help you through this process when you are ready. 

Click here to view the source.

The Midyear Financial Check-in: Why it Matters and What to Review

The year is halfway over. Have you checked your finances?

By Becca Stanek

Source: The Week

Believe it or not, the year is already halfway over. While you may currently be swept up in summer barbecues and beach vacations, the year's midway point is also a great time to check in on those financial goals you set for yourself at the start of the new year. 

Maybe checking in will give you a reason to pat yourself on the back for all the hard work you have done so far on your finances. But don't worry if that is not quite the case — you still have half the year to go to make up for lost time.

Click here to read this article.

Beyond the 4% Rule

How much can you spend in retirement?

By Rob Williams & Chris Kawashima

Source: Charles Schwab

You've worked hard to save for retirement, and now you're ready to turn your savings into a paycheck. But how much can you afford to withdraw from savings and spend? If you spend too much, you risk being left with a shortfall later in retirement. But if you spend too little, you may not enjoy the retirement you envisioned.

One frequently used rule of thumb for retirement spending is known as the 4% rule. It's relatively simple: You add up all of your investments, and withdraw 4% of that total during your first year of retirement. In subsequent years, you adjust the dollar amount you withdraw to account for inflation. By following this formula, you should have a very high probability of not outliving your money during a 30-year retirement, according to the rule.

For example, let's say your portfolio at retirement totals $1 million. You would withdraw $40,000 in your first year of retirement. If the cost of living rises 2% that year, you would give yourself a 2% raise the following year, withdrawing $40,800, and so on for the next 30 years.

Click here to continue reading this article.

“Without reflection, we go blindly on our way, creating more unintended consequences, and failing to achieve anything useful.”

- Margaret J. Wheatley