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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With Memorial Day approaching, it is a good time to reflect and honor those who have fallen fighting for our freedoms. For many of us, Memorial Day also signifies the start of summer. We’re looking forward to spending some summer evenings outdoors and we hope you'll do the same! | | |
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New Paraplanner – We are very excited to announce that we have started working with a new paraplanner this month. We will be adding information about Stephanie and her team to our website soon.
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AFP Summer Hours – We will begin our summer hours on May 27th, which means we will close at 3 pm on Fridays instead of 5 pm. Our summer hours will last through Labor Day (September 2nd). Any calls or emails received after 3 pm on Fridays during this period will be answered the following Monday.
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Amanda Strausbaugh, J.D.,
Assistant Vice President & Trust Officer at Park National Bank. | |
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AFP May Webinar – “Demystifying Trusts” with Teri Alexander CFP®, MSFP, CeFT®, AIF®, and guest speaker Amanda Strausbaugh, J.D., Assistant Vice President & Trust Officer at Park National Bank on Friday, May 24th at noon. This webinar will be a discussion about Trusts, including information on what a trust is, how they work, and whether or not you should consider creating one.
Amanda has been with Park National since 2022. She spent four years as an estate planning and probate attorney at multiple firms in Columbus before joining Park. She is on the board of two local nonprofits, Central Community House and Mental Health America of Ohio. She is also a member of several Columbus Bar Association committees including; Young Lawyers, Minorities in the Law, Estate Planning Committee, and Probate Committee.
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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.
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July: Mid-Year Investment Update
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August: Life/Disability Insurance
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Click below to read our May 2024 Blog edition.
Aging In Place Statistics And Facts In 2024
We would enjoy receiving your feedback on our Blog. Please share any comments or suggestions for future topics with us via email.
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Like so many, Spring is a busy time to get things planted outside and attend celebrations. My community garden is pretty much done. Now comes the fun of weeding and critter control! Keeping up with mowing the grass seems to be an every-other-day event as well. My son and I went hiking at Clifton Gorge on Mother’s Day. It was absolutely beautiful. I had never been there and we will definitely be going back. Getting ready for a trip out West along the Pacific coast in June to attend a small financial planning program and then to see several clients who have moved to CA, OR, and WA state. | | |
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This month I’ve started reading “Citizen Soldiers” by Stephen Ambrose and am about 200 pages into the book. The book shows the European theatre of WWII, from Normandy to Germany, through the eyes of individual soldiers. He does this through numerous interviews, letters, and diaries of soldiers from both the Allied and German side. The bravery, persistence, and heroism of these soldiers, who just months before were mechanics, farmers, and taxi drivers, is truly inspiring, and is worthy of remembrance on Memorial Day.
This month also brings the end of the school year for our girls and some graduations in my extended family – a great way to begin the summer.
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The last few weeks have been pivotal. The college decision process was stalled due to FAFSA updates delaying financial aid offers from universities. Cayleigh weighed her options for several days before deciding to attend OSU. She is excited for her future to unfold but first needs to complete final exams. Andy and I have been working at home to prepare for her Grad Party in between attending final school events. Cayleigh and her boyfriend enjoyed a fun evening at the Senior Prom! They will be busy with Commencement and celebrating with friends. | | |
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I closed out April by helping two of my friends move. They’ve been a couple for a while and were finally ready to take that next step and move in together. Several other friends also came out to help, so it ended up being a nice little get-together when all was said and done.
So far this month I’ve been spending most of my time housesitting. Some family members are on a cross-country trip, and I agreed to keep an eye on their house and their dog for them. It’s been pretty quiet and I’ve mostly been keeping up with the Stanley Cup Playoffs while I’ve been over there.
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Current Economic and Investment Information
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STEM STILL ON TOP – Graduates from the Class of 2024 with the highest average starting salaries ($70K+) are those with degrees in engineering, computer sciences, and math and sciences. Degrees in the most demand for the 2024 class are finance, accounting, and computer science. (source: National Association of Colleges and Employers)
THE RETIREMENT "HAVES" – According to the US Federal Reserve, US households with combined income in the top 10% had a median retirement savings of over $500,000. Workers with income in the bottom 40% had a median retirement savings of $20,000. (source: New York Times)
THE 5% FRONTIER – Combining property, income, sales, and excise taxes, the average combined tax burden for US states is 8.35%. New York, Hawaii, Vermont, Maine, California, and Connecticut all have combined tax burdens of 10% or more, while Alaska is the only state with a combined tax burden of under 5%. (source: WalletHub)
BACK TO NORMAL – The Fed considers the Job Openings and Labor Turnover Survey (JOLTS) report as a labor market tightness indicator. In 2022, the JOLTS report listed the ratio of open jobs to unemployed workers as over 2 to 1. The most recent report showed that the ratio dropped down to 1.3 to 1, much closer to pre-pandemic levels. (source: BLS)
FACTORIES ARE BACK – Construction spending for manufacturing (factories) in the US logged another record in March, coming in at $223.4 billion on a seasonally adjusted annualized basis. Since February 2020, right before COVID hit, construction spending on factories has risen 185%. (source: Census.gov)
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The annual inflation rate in the US eased to 3.4% in April 2024 from 3.5% in March which was the highest reading since September, in line with market forecasts. Inflation steadied for food (2.2%) and slowed for shelter (5.5% vs 5.7%) while prices continued to decline for new vehicles (-0.4% vs -0.1%) and used cars and trucks (-6.9% vs -2.2%). On the other hand, energy costs rose slightly more (2.6% vs 2.1% in March), with gasoline increasing 1.1% (vs 1.3%) while a decline was seen for utility gas service (-1.9% vs -3.2%) and fuel oil (-0.8% vs -3.7%). Also, cost rose faster for transportation (11.2% vs 10.7%) and apparel (1.3% vs 0.4%). Compared to the previous month, the CPI increased by 0.3%, below 0.4% in each of the previous two months and forecasts of 0.4%. Meanwhile, core inflation slowed to 3.6% annually, the lowest reading since April 2021, down from 3.8% in both March and February. The monthly rate also eased to 0.3% from 0.4%, both in line with forecasts. | |
Click here to view the source. | |
Retirement Living:
Renting vs. Homeownership
Owning gives you stability, but renting gives you flexibility.
By Jim Probasco
Source: Investopedia
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There are good reasons to own a home after retiring, but there are also plenty of arguments for renting. Renting can be less expensive as you skip the burdens of property taxes and maintenance costs. However, owning can be less stressful since you don’t have to worry about a landlord raising your rent.
Whichever route you go, housing costs will be one of your major monthly expenses in retirement. Here are some factors to consider when making a rent-versus-buy decision.
Click here to read this article.
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Retiring at Different Times | |
Marriage Takes Work – Especially When Only One Spouse Retires
They can add a lot of value if your clients are planning multicity trips, traveling with a group or looking for a very specific adventure.
By Clare Ansberry
Source: The Wall Street Journal
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When one spouse retires but the other doesn’t, roles change and feelings get complicated.
David Buck, 60, stepped back from a long career in sales management just as his wife, Susan Rose, 58, an ordained minister, leaned in, working 40-plus hours a week.
They’ve had to rethink who does what at home. David now folds more of the laundry and takes on grocery duties. He also has freedom, which Susan sometimes longs for. He talks about going to visit their adult children, who live out of state. Their first grandchild is on the way.
“I do get jealous. I have a couple more years,” Susan says.
Most couples now retire at different times, research suggests.
Only 18% of retired households claimed Social Security at the same time, according to a review of Federal Reserve data conducted by the Center for Retirement Research at Boston College.
Click here to continue reading this article.
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“May has decked the world, that we
May bring the brave on land, or sea
Earth's glory on Memorial Day,
The lovely meadow gifts of May.”
- Annette Wynne
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Alexander Financial Planning
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3600 Olentangy River Rd, Ste. C2
Columbus, OH 43214
614-538-1600
Office Hours: Monday - Thursday
9:00 AM - 5:00 PM
Friday: 9:00 AM - 3:00 PM
Registered Investment Advisor
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This material is distributed by Alexander Financial Planning, Inc., (AFPI) and is for information purposes only. Although information has been obtained from sources we believe to be reliable, we do not guarantee its accuracy. It is provided with the understanding that no fiduciary relationship exists because of this report. Opinions expressed in this report are not necessarily the opinions of AFPI and are subject to change without notice. AFPI assumes no liability for the interpretation or use of this report. Financial planning, investment conclusions, and strategies suggested in this report may not be suitable for all investors and consultation with a qualified advisor is recommended prior to executing any investment strategy. No portion of this writing should be construed as legal or accounting advice. All rights reserved.
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© Alexander Financial Planning, Inc.
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