Our Wealth Services Advisors and Personal Insurance Experts provide insights about topics and trends that could impact your financial and personal goals.
PERSONAL FINANCE QUARTERLY FALL 2022 Our Wealth Services Advisors and Personal Insurance Experts provide insights about topics and trends that could impact your financial and personal goals.
Year-End Charitable Gifting and You
professional can write a letter of instruction to a bank or brokerage, which can facilitate authorizing a transfer of shares to a charity. This transfer can accomplish three things: • You can manage paying the tax you would normally pay upon selling the shares. • You may be able to take a current-year tax deduction for the full fair market value of the shares. • The charity gets the full value of the shares, not their after-tax net value. This can be a winning strategy all around. 2 Remember, the 2022 charitable contribution rules have reverted to no more than 50% of your AGI for cash contributions. The limit is 30% of AGI for non-cash contributions (for example, donating shares of stock). A Policy of Giving Back. Do you have a life insurance policy? If you make an irrevocable gift of that policy to a qualified charity, you can get a current-year income tax deduction. If you keep paying the policy premiums, each payment may become a deductible charitable donation. (Deduction limits can apply.) If you pay premiums for at least three years after the gift, that could reduce the size of your taxable estate. The death benefit may be transferred out of your taxable estate, in any case. 3 You should consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments. Several factors will affect the cost and availability of life insurance, including age, health and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder also may pay surrender charges and have income tax implications. Whatever your situation, getting advice from a tax or financial professional can help you give wisely as the year comes to a close. We’re here to help find a strategy that works for your situation. Click here to contact us with any questions you may have.
Are you making charitable donations at year’s end? If so, you should know about some of the financial “fine print” involved, as the right moves could potentially bring more of a benefit to both you and your chosen charity. Keep in mind, this article is for informational purposes only and is not a replacement for real-life advice. Make sure to consult your tax, legal, or accounting professionals before modifying your charitable gifting strategy. Evaluate the Impact. How can you
maximize the impact of your gifts? First, consider giving to a qualified charity with 501(c)(3) nonprofit status. Also, visit CharityNavigator.org, CharityWatch.org, or GiveWell.org to evaluate a charity and learn about how effectively it utilizes donations. If you are considering a large donation, it is often wise to ask the charity involved how it will use your gift. If you’re still working, you may want to check with your employer. Some companies match charitable contributions made by their employees, an often-overlooked opportunity to give back. Itemize to Optimize. To deduct charitable donations, you must itemize them on I.R.S. Schedule A. So, you’ll need to log each donation you make. Ideally, the charity will provide you with a form to document proof of your contribution. If the charity does not have such a form handy (and some do not), a receipt, a credit or debit card statement, a bank statement, or a canceled check can work. The I.R.S. may want to know three things: the name of the charity, the gifted amount, and the date of your gift. 1 Remember, itemized deductions may only have tax benefits when they exceed the standard income tax deduction, so be sure to check on the standard deduction amount for your tax filing year. Show Your Appreciation. Many charities welcome noncash donations. In fact, donating an appreciated asset can be a tax-savvy move. You may wish to explore a gift of highly appreciated securities. Selling securities can lead to taxable event. As an alternative, you or a financial
1. IRS.gov, 2022 2. IRS.gov, 2022 3. Forbes.com, April 25, 2021
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. “Alera Group Wealth Services” and “Alera Group Retirement Plan Services” are a brand name utilized by Alera Group, Inc and certain subsidiaries and affiliates (collectively “Alera”). Investment Advisory Services offered through Alera Investment Advisors, LLC. Securities offered through Triad Advisors, LLC., Member FINRA/SIPC. Triad Advisors LLC is separately owned and other entities and/or marketing names, products or services referenced here are independent of Triad Advisors.”
Personal Finance Quarterly | Fall 2022
Travel Insurance Benefits,Travel Conveniences and Upgrades
Accidental Death and Dismemberment (AD&D)
Golf Package When a scheduled golf game is canceled due to the unexpected, such as sickness or severe weather, fees may still apply. This option covers golf green fees, hole-in-one coverage, recreational equipment delay and recreational vehicle damage. Travel insurance provides you and your loved ones the protection to travel with confidence. Please click here to contact us if you have questions about travel insurance for your next trip.
Pays a benefit to you or a covered member if an accident results in loss of life, limb, sight, speech or hearing. Trip Delay Coverage We will reimburse you or a covered member for the cost of food and temporary lodging if a scheduled trip is delayed more than eight hours due to a covered loss, such as sickness, hijacking, inclement weather or natural disaster. Baggage Delay Coverage We will reimburse you or a covered member for essential items needed to hold you over if your baggage is delayed six hours or more after your flight arrives. Travel Assistance Services Help is at hand for travel needs such as replacement of lost travel documents, rebooking related to loss, translation services, medical referrals, legal referrals, identity protection, and more.
Political Evacuation Provides coverage for necessary evacuations from a location for which the U.S. Department of State has issued a travel warning. Felonious Assault Pays an additional death benefit to you or a covered member’s beneficiary if an accidental bodily injury resulting from a felonious assault causes a covered person’s loss of life. Common Carrier Pays a benefit if accidental loss of life, limb, sight, speech or hearing occurs while you or a covered member are in, entering or exiting any motorized land, water or air conveyance operated by an organization that is licensed for the transportation of passengers for hire.
Making travel plans has always carried a level of risk from lost bags, canceled flights and bad weather to name a few itinerary snags. But in today’s post-Covid travel boom, it can be especially surprising when a trip goes off without a hitch. With that in mind, travel insurance could be the safety net you need as you make plans to see family for the holidays or escape the winter cold. We consulted one of our carrier partners Chubb for a list of what travel insurance may cover on a policy. Medical Evacuation and Repatriations Pays the covered expenses for evacuation or repatriation if an accidental bodily injury, sickness or loss of life occurs during a covered trip requiring such evacuation or repatriation. Evacuation will be monitored by professional case managers to help determine the level of care and the appropriate next steps. Excess Medical Expense Reimburses excess medical expenses incurred as a result of an accidental bodily injury in the U.S. or abroad and sickness medical when traveling outside the United States. Excess Medical Expense is not intended to take the place of primary medical coverage and is not available to residents in all states.
This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guar-antee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.“Alera Group Wealth Services” is a brand name utilized by Alera Group, Inc. and certain subsidiaries and affiliates (collectively “Alera”).Advisory Services offered through Alera Investment Advisors, LLC. Securities offered through Triad Advisors, LLC, Member FINRA/SIPC. Triad Advisors LLC is separately owned and other entities and/or marketing names, products or services referenced here are independent of Triad Advisors. Information provided by Alera should not be considered tax or legal advice. Should you require tax or legal information, please con-sult your tax advisor or attorney.
Personal Finance Quarterly | Fall 2022
Investing in UncertainTimes
as a fall of at least 20% from the most recent high price. During those periods, the best part of the next bull market happens early in the cycle. The first year of the new bull market has averaged 40% and the second year has averaged 13%. Bear markets drop 36% on average, but average bull market rises 114%. Bear markets are where bull markets are born. when consumer sentiment is low, as it has been recently. As measured by the survey conducted by the University of Michigan since 1971, the consumer sentiment hit a recent low in July. While past performance is no guarantee of future results, the average return in the 12 months after the low point in the cycle is 25%. In addition to bear markets, long-term investors have also seen strong gains Whether it’s stocks trading at a discount to recent values or the fact that they are in bear market territory or that consumer sentiment is at cycle lows, these are all signals that long- term investors look at as opportunities to hold their positions, rebalance to make sure they are properly allocated for the next bull market or perhaps, even increase their risk profile to take advantage of stocks at lower prices. It may seem daunting or perilous to take a bullish stance in the middle of a bear market. However, that is when successful investors create their best returns - buying low and looking long-term.
This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment. “Alera Group Wealth Services” is a brand name utilized by Alera Group, Inc and certain subsidiaries and affiliates (collectively “Alera”). Advisory Services offered through Alera Investment Advisors, LLC. Information provided by Alera should not be considered tax or legal advice. Should you require tax or legal information, please consult your tax advisor or attorney.
Written and prepared by: Robert Janson, CIMA®, AIF® Senior Vice President, Senior Portfolio Manager, Wealth Services
Investing in uncertain times can be very daunting. What about inflation? What about the mid-terms? What about rising interest rates? What about the recession? Many investors are concerned and confused about how the headlines will affect their portfolios. Successful investors have learned over the years that when uncertainty is heightened and the sentiment is low, patience is needed, and opportunities are plentiful. This year, as the Federal Reserve continues to aggressively increase interest rates to gain control over inflation, both the stock and bond markets have had a tough year. Bonds fall in value as interest rates rise. It may be a little less obvious why rising interest rates also cause stock prices to fall. Many may think it is simply because rising rates cause the economy and corporate earnings to slow. But that is only part of the story. Consider that many of the stocks that have fallen the most this year are the same great innovative growth companies that have led the market for over a decade. Many of these companies have become indispensable to the modern economy with current and future earnings and cash flow that seem almost immune to the overall health of the economy. It is current value of the future cash flows that has caused the stock market to fall. When interest rates rise, the future cash flows are discounted at a higher rate and thus
are currently worth less than they were when the discount (interest) rates were lower. This is literally what they mean when they call it a market “correction.” Stock prices are being corrected for higher interest rates. Rather than being rattled, long-term investors look at this as an opportunity. Investing at lower prices now can mean higher returns later. The stock market is likely to begin to rise before interest rates peak during the current cycle. While it may seem like this time is different, there is nothing unusual about the current interest rate cycle. There have been eleven other times since 1946 that the Federal Reserve has increased interest rates. Of those times, the stock market has had an average annual rate of return of 5.6%. Many of those periods also included a bear market, defined
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Personal Finance Quarterly | Fall 2022
Seasonal Spotlight
of Long Island as the famous Hamptons, while further upstate, the Finger Lakes region is arguably the home of East Coast winemaking. A must-see destination on any trip to the Finger Lakes region is the winery of Dr. Konstantin Frank, who is credited with introducing grapes like Riesling and Gewürztraminer to the region.
Texas Total wineries: 319
Five Wine Regions to Explore This Fall Beyond Napa
Everything is bigger in Texas, and that includes the Texas Hill Country wine region, which spans across 9 million acres, making it the second-largest wine region in the nation. The dry, sunny Texas Hill Country climate is well suited for growing grapes like Tempranillo, Syrah, Albarino, Cabernet Sauvignon, and Zinfandel.
Michigan Total wineries: 184
Autumn is upon us, which for vineyards, means harvest season. For those who prefer their vineyard tours and wine tastings with fewer crowds, lower temperatures, and fall colors, the time to go to wine country is now. California’s Napa Valley is usually the first area of the country that comes to mind when choosing a destination, but there are a number of other wine regions scattered across the US that offer their own distinctive experiences. Below is a list of some of the country’s lesser known wine regions that you should consider visiting this fall.
The Lake Michigan Shore region is not only scenic – it is also home to a winegrowing region that has been called the “Napa of the Midwest.” The Lake Effect from Lake Michigan is what helps to moderate the climate of the region and produce such exceptionally complex wines. A local favorite tradition is to pair locally made cheese with wines from local vineyards. Given the state’s colder climate, grapes such as the Austrian Blaufrankisch are able to thrive in Michigan.
Virginia Total wineries: 276
The most famous wine region within Virginia is located around the historic town of Charlottesville. The state is known for its nearly 200- day growing season, as well as the presence of premier wineries such as Barboursville Vineyards and Linden Vineyards. Winegrowing has been part of Virginia’s tradition since the Colonial era. Harvest season usually lasts from September through November, so if you’re looking for a special autumnal experience, think about making a trip to one of our suggested wine regions outside of California! Sources: https://www.sunset.com/travel/wine-country/off-season-wine-country-late-fall | https://www.winemag.com/2021/09/22/ autumn-harvest-wine-season/ | https://usawineratings.com/en/blog/insights-1/an-introduction-to-the-top-10-wine-regions-of- the-usa-38.htm
Oregon Total wineries: 774
Oregon has a cooler climate than any of California’s wine regions, making it perfect for growing not just Pinot Noir, but also Riesling, Chardonnay, and Gamay. The premier wine region within Oregon is the Willamette Valley, which has gained a worldwide reputation for its stellar Pinot Noirs.
New York Total wineries: 395
There are two regions within New York State that have attracted the attention of wine aficionados – the Finger Lakes region and the North Fork area. The North Fork is located in nearly the same part
Personal Finance Quarterly | Fall 2022
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