Kitchen Table Finance

Join Nick and Dave as they discuss concerns around geopolitical tensions in the Middle East, inflation, corporate earnings, and other issues that have led to a market decline, pushing the VIX index of stock market volatility to its highest level in six months. Watch on YouTube HERE After a historically strong start to the year, markets have now pulled back 2.5% to begin the second quarter. In times of market stress, investors need to maintain perspective on critical issues and not overreact to headlines. How can investors understand and weather this period of market volatility? Rising geopolitical tensions add to market uncertainty First, tensions escalated in the Middle East due to an attack by Iran on Israel, the first time a direct strike has occurred between the two nations. The attack involved hundreds of drones and missiles launched from Iran and appears to have been designed to allow ample time for Israel and its allies to deploy countermeasures, resulting in minimal damage. While it’s uncertain how Israel might respond to this shot across its bow, many hope that both nations will show restraint and avoid an overt conflict. These latest developments only add to geopolitical concerns around the world. Russia’s invasion of Ukraine and the October 7 attack on Israel by Hamas only a year and a half later have already destabilized Eastern Europe and the Middle East. Without diminishing the tragic loss of life and destruction from these conflicts, investors must weigh how such events might impact the global economy, markets, and their portfolios. Geopolitical headlines can be alarming to investors since they are unlike the typical flow of business and market news. These events are difficult to analyze and their outcomes are challenging to predict since they depend on the actions of individuals and groups with complex histories and motivations. However, history shows that while geopolitics can impact markets, the effects are typically short-lived. The accompanying chart highlights market returns following major geopolitical events this century. Some events, such as 9/11, changed the world order and had long-lasting effects, even though it was primarily the dot-com bust that led to poor market performance. Other events, such as the war in Ukraine, resulted in higher oil prices which affected inflation and monetary policy. Most of these events did not have long-lasting effects on markets once the situation stabilized. While today’s conflicts will be closely watched, investors ought to avoid passing judgment with their portfolios. In the long run, markets tend to recover and perform well primarily because business cycles are what matter over years and decades, despite the events that take place over weeks and months. Stubborn inflation has markets rethinking the number of rate cuts Second, many measures of inflation have proven to be more stubborn than economists had hoped. The latest Consumer Price Index (CPI) report for March showed that headline inflation remained hotter than anticipated at 3.5% year-over-year, while core inflation, which excludes food and energy prices, rose 3.8%. Rising shelter costs, i.e., the cost of renting and owning a home, are a large reason inflation has not cooled as quickly. Combined with stronger-than-expected recent job market data, many investors now anticipate that the Fed may cut rates more slowly this year – or not at all. The Fed’s economic projections have suggested all along that it might cut rates three times this year. Market expectations, however, have swung 180 degrees since the start of the year when some believed the Fed could begin cutting rates in March or earlier. Today, markets only expect 2 or 3 rate cuts in 2024. As always, it’s important for investors to keep these expectations in perspective. What matters for long-term investing is the direction of policy and not the exact timing or magnitude of rate cuts.

In this episode, we kick off with a warm welcome and jump straight into our Q1 quarterly review followed by the Q2 outlook. Despite entering the year on a shaky start, Q1 turned out exceptionally well, building on the achievements of a strong 2023. Watch on YouTube HERE Q1 Highlights: The beginning of January began forgettable, raising concerns given the adage "as January goes in the market, so goes the year." However, the market quickly rebounded, defying early gloom. Major indices including the S&P 500, NASDAQ, Europe's stocks 600, and the Japanese Nikkei hit new record highs, some repeatedly, showcasing strong market performance despite the lack of significant positive economic news. The all-cap world index reported an 8.2% increase, signaling solid market health. Key Observations and Concerns: Fed's interest rates and inflation remain primary focuses. With interest rates peaking in July 2023 and the Fed pausing rate hikes without initiating cuts, market watchers are on high alert. Recent CPI reports show a slight uptick in the six-month mark, hinting at persistent inflationary pressures, especially in the service sectors, which continue to experience wage pressure and other inflationary concerns. Insights and Expectations: The challenges of managing inflation resemble the struggles of weight loss, where initial successes are followed by harder-to-achieve continued progress, indicative of a potential economic plateau. The manufacturing versus services sector dichotomy, with inflation seemingly under control in the former but unabated in the latter, suggests two diverging economic narratives. The Inflection Point: The current economic stance is seen as an inflection point, with uncertainty about whether the market will continue to rise or begin to correct, reflecting both opportunities and challenges ahead. In summary, Q1 showcased unexpected market resilience with exceptional highs across various indices, despite looming concerns over Fed rates and inflation. Looking ahead, navigating the nuanced dynamics between manufacturing and services sectors, alongside managing inflationary pressures, will be crucial for sustaining growth and stability in Q2 and beyond. Clickhereto learn about the Strategic Reliable Blueprint, our financial plan process for your future. Call us at 517-321-4832 for financial and retirement investing advice.

Welcome to our latest episode where we explore the complexities and considerations behind diversification of investment portfolios, particularly during retirement. In this in-depth discussion, we lay out compelling market analyses, historical comparisons, and thought-provoking strategies for investors looking to optimize their financial planning. Watch on YouTube HERE Whether you're just starting to think about retirement or are actively re-balancing your portfolio, this episode is packed with insights that tackle a crucial question: Should you diversify your portfolio in retirement? Highlights Examining the past decade's stock market trends and their implications for portfolio diversification. Understanding how international and emerging market stocks compare to US large company stocks. Insights from behavioral finance and market valuations that could shape your investment strategy. Discussing the 'lost decade' and what it can teach us about asset allocation. Key Points US large company stocks have seen enormous growth compared to developed and emerging markets since 2009. Experts suggest a diminishing effect of diversification due to globalization but highlight its continued relevance. The early 2000s saw much lower returns on US stocks, emphasizing the benefit of a diversified portfolio during downturns. Valuations play a critical role in expected market returns, with current trends hinting at better prospects for international markets going forward. Market Analysis A detailed analysis of the performance of different market sectors over a decade. Discussion on stock market valuations and investment strategies. The role of valuations in long-term market predictions and the balance between US and global market performance. Wrapping Up Remember, the path to smart investing in retirement lies in understanding diversification, historical performance, and staying true to a disciplined strategy. While recent performances may favor certain markets, long-term success often results from a balanced and diversified approach that can weather a variety of economic climates. We want to thank you for tuning in, and if you're seeking more insights or need assistance in your investment strategy, consider reaching out to Shotwell Rutter Baer. Clickhereto learn about the Strategic Reliable Blueprint, our financial plan process for your future. Call us at 517-321-4832 for financial and retirement investing advice.

Welcome to this episode of Kitchen Table Finance where we're joined by our energetic and insightful spring 2024 intern, Cole Williams. With a few weeks under his belt, Cole shares his experience and lessons learned while working with our very own David. And surprise, Cole – today's chat is doubling as your extended interview for the rest of the spring season! Watch on YouTube HERE In This Episode Cole's Journey: Discover how a political science background led Cole to a passion for financial planning. A Day in the Life: What does an intern do at Shotwell Rutter Baer? Cole gives us the day-to-day rundown. The Career Pivot: Cole talks about his transition from working for the state government to pursuing a future where he can truly make an impact on people's financial wellness. Local Roots, Global Mindset: From St. John’s to MSU, Cole discusses how his local upbringing fuels his drive to contribute to the community through financial advice. Behind the Scenes: Learn what life at Michigan State University's financial planning and wealth management program is really like, and hear about how Cole is preparing for his next steps post-graduation. Straight Talk: Cole provides his candid take on the financial services industry and what it means to have the best interests of clients at heart. Family Ties & Financial Goals: An HVAC family and how Cole aims to be the financial pillar in his community. Featured Guest Cole Williams, Spring Intern at Shotwell Rutter Baer Master’s student specializing in Financial Planning and Wealth Management at MSU Experienced legislative aid at the state capitol Believer in impactful financial advice for everyday people We also tackle some critical questions: How does government experience influence financial planning beliefs? What can new insiders share about the reality of financial advising? Why might financial planning be the blue-collar contribution to tomorrow's world? Tune in as we explore Cole's unique story, draw on actionable insights from his experiences, and discuss how past roles shape future ambitions in the financial industry. Don't forget to `subscribe` to our podcast and `join us at the kitchen table` for a fresh brew of finance, advice, and friendly banter. Connect with Us Visit our website for more financial resources Follow us on Facebook & Instagram for updates and tips Connect with us on LinkedIn Subscribe to our YouTube Channel We appreciate your ears and your desire to grow financially savvy. If you enjoyed this episode or want to hear more about specific financial topics, please leave us a review! Listen, learn, and laugh along – because when finance meets kitchen table talk, there's nothing we can't tackle.

In today's episode, we dissect the often-debated topic of whether you need an annuity for retirement. With a straightforward approach, we explore annuities with both a small "a" and a capital "A", debunking common misconceptions and laying bare the good, the bad, and the frequently misunderstood facets of these financial products. Watch on YouTube HERE Main Topics Discussed Annuities and Retirement: Discussing the need and implications of annuities as part of a retirement plan. The Good and Bad of Annuities: The conversation brings to light our biases against the abusive sales and usage of annuities rather than the product class itself. Understanding Annuity Functions: A detailed explanation of what an annuity is intended to provide – guaranteed lifetime income. Cost vs Benefit Analysis: Every decision, especially in finance, comes with its own set of pros and cons; annuities are no different and we discuss what people give up in exchange for guaranteed income. The Concept of Annuity: We discuss the foundational ideas behind annuities and their original purpose of mitigating longevity risks within a group. The Reverse Life Insurance Policy: An interesting analogy that compares annuities to life insurance, but in reverse. Lump Sum Investments for Guaranteed Payouts: How paying a lump sum to an insurance company can translate into lifelong monthly checks. Deferred Annuities and Guarantees: Delving into where annuities can get complicated—understanding the lead-up to the payout phase and how companies offer certain guarantees. Episode Highlights Lifetime Income Guarantees: The importance of understanding what you're trading in exchange for the certainty of income. Insurance Chassis: How annuities operate on the insurance principle of diffusing risk across a large group of people. Payout and Deferred Phases: An explanation of the two critical phases of annuities and the issues that often arise. Market Guarantees and Real Returns: A critical look at what insurance companies promise versus what they deliver, particularly when it comes to market investments and returns. Remember to subscribe to our podcast for more insightful discussions on finance and retirement planning. If you have any questions or personal experiences with annuities, reach out to us. We'd love to hear your thoughts on this complex but vital topic. About Shotwell Rutter Baer Shotwell Rutter Baer is proud to be an independent, fee-only registered investment advisory firm. This means that we are only compensated by our clients for our knowledge and guidance — not from commissions by selling financial products. Our only motivation is to help you achieve financial freedom and peace of mind. By structuring our business this way we believe that many of the conflicts of interest that plague the financial services industry are eliminated. We work for our clients, period. Clickhereto learn about the Strategic Reliable Blueprint, our financial plan process for your future. Call us at 517-321-4832 for financial and retirement investing advice.

Episode Overview In this pivotal episode of the "Kitchen Table Finance" podcast, Dave and Nick explore the concept of a "Strategic Reliable Blueprint" and how to effectively identify and tackle obstacles in planning. The episode uncovers the importance of recognizing unseen solutions, re-envisioning goals to surmount challenges, and the crucial steps taken behind the scenes to prepare for strategic meetings. Watch on YouTube HERE Key Takeaways The Power of Possibility: At [21:04], the conversation illuminates how casting problems and challenges out to the universe can bring forward solutions that were previously hidden in the subconscious. Recreating Vision: Around [21:16], it's stressed that by identifying obstacles and searching for pathways around them, new and viable solutions emerge, reshaping the strategic vision. Behind-the-Scenes Organization: Starting at [21:44], the significance of organization between meetings is emphasized. The team's work, guided by the paraplanner, is to gather the necessary information and resources to pave the way for productive strategy sessions. Upcoming Focus: The next episode promises a deeper insight into the organization process at [22:39], revealing why it’s essential and how it takes shape with Amy's expertise. Continuing the Journey: At [22:51], listeners are encouraged to revisit previous episodes to fully grasp each step of the process, building towards a comprehensive plan complete with actionable implementation steps. New Perspectives: Dave and Nick wrap at [23:13] by teasing the excitement of upcoming discussions which will continue to blend practical financial advice with real-world experiences. Resources & Links Visit SRB Advisors' website for more practical advice: srbadvisors.com For those new to the series, consider going back to listen to the initial steps covered in earlier episodes to get a full understanding of the blueprint process. Fit Meeting Process Step Two – The Foundation Meeting Step Three – Vision Step Four – Obstacles Step Five – Organization Step Six – Strategy Step Seven – Build Reach out for personal planning via email: [email protected] Conclusion Join Dave and Nick as they guide you through the methodology of building a strong and reliable financial plan. Whether you're facing obstacles or looking for strategic direction, the "Kitchen Table Finance" podcast can offer the guidance and insights needed for financial empowerment. Stay tuned for the next episode on organization and plan with confidence.

Welcome back to our much-anticipated March 2024 edition of "Retirement Planning Headlines," where we save you the hassle of combing through endless financial articles. This month, we've even had listeners chime in with topics for our deep-dive discussions. Watch on YouTube HERE Key Takeaways from this episode: The financial terrain is constantly shifting, and this episode explores the provocative outlook of Robert Kiyosaki, author of "Rich Dad Poor Dad." He warns listeners about potential downturns in the S&P 500 and suggests alternative investment strategies beyond the traditional 401(k), such as gold, silver, and cryptocurrencies. Mr. Kiyosaki's predictions are met with a grain of salt as we acknowledge that market corrections are inevitable. However, the true question remains whether these dips lead to permanent damage or just temporary setbacks. Our hosts debate the validity of such doomsday financial forecasts. We also examine the philosophy of financial experts like Dave Ramsey and the importance of not being hyperbolic or experiential with financial advice. The emphasis is on providing balanced, sound financial perspectives without sensationalism. The conversation takes a turn into the world of cars and their role as status symbols. We dissect advice suggesting that always opting for the cheapest vehicle could lead to perpetual poverty. Instead, the hosts offer a more nuanced view of financial decisions around car ownership and the true implications for one's wealth. To wrap things up, we scrutinize the sensationalist tone often found in financial advice media. The hosts ponder the necessity of extreme angles to captivate an audience. Can valuable advice stand out without the extreme clickbait headlines? Join us for an enlightening discussion on these headlines and more, and discover how to read between the lines of financial advice. We aim to educate and empower our listeners to make informed decisions about their retirement planning. Don't miss out on our insightful analysis and subscribe for more updates. Remember to subscribe and follow our podcast for monthly updates packed with practical advice to guide you through your financial future with clarity and confidence. Stay tuned and stay informed!

Today we're braving the waters of politics and markets—a conversation that's becoming more pressing as we advance into March. Watch on YouTube HERE Main Points of Discussion: The Premature Arrival of Election Talks: It feels like we just talked about elections, but here we are, already in the thick of it, even in client meetings since last fall. A Non-Political Look at a Political Event: Steering clear of political biases, this episode focuses on the impact the presidential elections may have on the markets. The Divisiveness in Politics and its Market Impact: Discussing how the current political climate could influence market behaviors and investor sentiments. Historical Contentious Debates: A historical look back at past presidential elections to provide context to today's political climate. Remembering that our country's history has weathered severe divisiveness, even to the point of a nation split. The Human Brain and Recency Bias: Understanding how our minds emphasize forthcoming challenges more critically than those we've already experienced. What to Pay Attention to and What Not to: Advice on differentiating between election noise and genuinely impactful information concerning the stock market. Investment Strategies During Election Cycles: Encouraging listeners not to invest based on political fears but on historical market trends. Key Takeaways: Elections matter but remember to make investment decisions based on data and trends, not political fervor. Stock market performance has shown strong returns under various political administrations. Historically, the market tends to continue its upward trajectory despite the ruling party. "Vote with your ballot, not your savings." Analysis shows that major policy shifts between administrations, like the Obama and Trump eras, demonstrate market resilience. Optimism for Economic Growth: No matter the federal regulations or policies, the economy finds a way to advance. Companion Article: To complement our discussion, we have an article with detailed charts showing stock market performance from the Great Depression era to the present day under different administrations. Notice the upward progression despite political shifts—mirroring our resilient and growing economy. Conclusion Remember, as investors, it's essential to look beyond the immediacy of political campaigns and focus on the long-term trends that historically have favored growth despite who's in office. Join us again for more insights that demystify the intersection of politics and markets. Don't forget to subscribe, and share your thoughts with us after the episode!

The podcast episode focuses on practical strategies for retirees to protect their credit from fraud and identity theft. Watch on YouTube HERE Episode Highlights: Dave and Nic kick off the episode by emphasizing the significance of credit protection, especially during retirement. It is common for retirees to neglect their credit standing which can increase their vulnerability to credit fraud. There's a clear need for ongoing conversations about the necessity of credit in retirement and how it can be used responsibly. The hosts discuss the prevalence of scams targeting the elderly, highlighting the importance of staying vigilant with credit reports and scores. A critical topic addressed in this episode is the concept of a credit freeze. A credit freeze is described as a preventative measure to shield retirees' credit from unauthorized inquiries and potential fraud. The episode does not specifically review credit monitoring services but notes their varying degrees of usefulness. Key Takeaways: Maintaining a good credit score is just as important in retirement as it is during the working years. Retirees are less likely to monitor their credit actively, thus becoming easier targets for credit-related frauds. The conversation shifts to strategies to combat diminished attention to credit reports and potential susceptibility to scams. Credit freezes are recommended as an effective way to prevent unauthorized access to credit files. Listeners are encouraged to stay informed and take proactive steps in protecting their financial identities as they enjoy their retirement. Gather around and follow the Kitchen Table Finance podcast to learn about money, retirement planning, and simple ways you can invest right now. You can find more practical advice at srbadvisors.com and contact the team for personal planning by emailing [email protected].

Hey there! Curious about the latest buzz in retirement, planning, and news? Let's dive in and break it down for you. Watch it on YouTube HERE As we kick off the year, we're seeing a flood of self-help articles on fixing your life. It's a good time to check them out, especially when it comes to health and finances - two big topics for January, right? One interesting piece from The New York Times caught our eye. It delves into longevity and financial planning, shedding light on how to live well for longer. Spoiler alert: prioritizing relationships play a key role in living a longer, happier life post-retirement. Speaking of retirement, did you know that maintaining social connections after leaving the workforce is crucial? It's easy to overlook how much our work relationships impact our overall well-being. So, it's important to proactively cultivate new communities during retirement. And let's not forget about the financial side of things. Ever heard of the myth that skipping your daily coffee can make you a millionaire? Well, one expert crunched the numbers and found that while it may not turn you into an instant millionaire, investing those savings can set you on a path to financial freedom. So remember, making small lifestyle changes in retirement can have a big impact on your health, happiness, and bottom line. Stay tuned for more tips and insights to help you navigate this exciting chapter of life. The Articles We Discuss New York Times:The 7 Keys to Longevity Morningstar:Skipping Your Morning Coffee Won’t Make You a Millionaire David Booth (DFA) in Kiplingers: Life Lessons that Also Apply to Investing CNBC: How to Protect Yourself from Tax Identity Theft This Season Think Advisor: More Than Half of Americans Want to Retire Gradually Collab Fund: Frugal vs. Independent That is what we have for January and February headlines. If our listeners stumble across something here in March, send it to us. Maybe it'll show up on the next headline review. You can send those to us at [email protected]. Gather around and follow the Kitchen Table Finance podcast to learn about money and simple ways you can invest right now. You can find more practical advice at srbadvisors.com and contact the team by emailing info@srbadvisors .com.