It isn't how much you make
. . .It's how much you keep!
Document courtesy of Mark Zinder
Mark Zinder - Necessary Forms
Do you know someone saving for a child’s college? Did you know they could invest in a TAX DEFERRED account, and you could even help by adding to their account or open an account for them!
Some also have a feature which enables you to contribute to the account for birthdays, holidays, or graduation through their high school years.
And there are various additional benefits like professionally managed age-based portfolios in conservative, medium or growth allocations and scholarship aid of up to $3,000 based on total contribution and time in the portfolio.
NEW benefits– you can take up to $10,000 to pay for private school (K-12); you can take up to $10,000 (one time) to re-pay student loans.
If you’re concerned the student might ‘take the money & run’- fear not as the account is owned by the adult opening it (and their successor owner) not the student who is simply the beneficiary.
And if the student doesn’t need or use the money- what then? Two options: Take it out on the student’s social security number for a wedding or home purchase and let them pay the tax on the deferrals, or let it continue to grow for another family member like THEIR child.
For information about a 529 Plan or how to contribute to a new or existing please contact me at: 973-515-5184 or FranklyFinancial@NationwidePlanning.com
Reprinted Courtesy of
Will Robbins
Equity Portfolio Manager
March 29, 2023
We have been here before.
The failure of Silicon Valley Bank on March 10 reminds me of what I experienced firsthand as a bank analyst during the global financial crisis in 2007 and 2008.
As a professional investor for 30 years, I rely on my own experiences to help guide my investment approach. When I was a bank analyst then, I captured the 10 lessons below to serve as a guide for myself and colleagues to help get us to the other side of the valley.
Every crisis is different, but they often have things in common. Today’s turmoil shares some striking similarities, though, in my view, this current episode is much smaller in scale and far less damaging.
Wisdom earned in crisis
Last summer, with rates rising, inflation high and the prospect of recession looming, I unearthed these lessons from 15 years ago and shared them again. And when Silicon Valley Bank failed a few weeks ago, I circulated them once more to offer perspective and help colleagues manage the uncertainty. Here are those lessons, which I believe bear repeating.Wisdom earned in crisis
1. When the weathermen pack umbrellas, the forecast is for rain. Bank treasurers started hoarding liquidity — assets that can easily be converted to cash — in mid-2007 when liquidity was not on anyone’s radar screen. It should have been a clear warning sign.
2. Liquidity is a coward. Regardless of balance sheet strength or franchise value, if liquidity evaporates, which it has tended to do at the first sign of trouble, perception of weakness becomes reality.
3. The long-term outlook only matters if you can make it to the long term. The 2007–2008 cycle progressed from one of concern about earnings to concern about capital to concern about liquidity. Not until we reverse the cycle and return to a focus on earnings do I expect this cycle to end, and by then many institutions may no longer be with us.
4. There is no silver bullet. Selling into every rally on government fixes would have been the right call during the early stages of the global financial crisis. Drastic events require drastic measures; anything less would be a disappointment.
5. Avoid the most aggressive companies. When you hear the words growth and innovation as they relate to lending businesses, proceed with caution. Making cross-industry comparisons can help provide guard rails for assessing where the dangers might be. Variations in outcomes between the least and most aggressive companies can be huge.
6. Bad news is bad news. If a company needs capital and/or has to cut its dividend, consider getting out of the way, even if it looks like it’s priced into the stock.
7. Don’t try to navigate uncharted waters. When circumstances change so drastically that even an experienced investment analyst has a hard time digesting events, I think it’s best to walk away. This was true in the technology boom-bust cycle in the late-1990s as well as the global financial crisis. The break with the past was so significant in both cases that history no longer served as a guide.
8. Good loans are made in bad times and bad loans are made in good times. The winners in a credit cycle will usually be those with the capital and liquidity to capitalize on the distress.
9. Trust your instincts and act. The discontinuity of a crisis can be paralyzing, but it’s important to remain flexible and continue to take action with a forward-thinking mindset.
10. Take care of yourself. Sleep, exercise and healthy diet are important to maintaining a constructive attitude. We owe it to ourselves, our families and our clients to stay healthy.