Category: Finance
Understanding the U.S. Dollar and Recent Fitch Ratings
We have received questions recently regarding the U.S. Dollar and countries like Brazil, Russia, India, China and South Africa (BRICS) potentially developing alternative currencies and financial institutions. While we agree that the U.S. fiscal and monetary situation has deteriorated over recent years, and it is likely that China and Russia in particular are pushing to find alternatives to the U.S. Dollar and financial institutions, we do not view this as an imminent threat to the global economy or your investment portfolio. The U.S. Dollar dominates global trade flows and we do not expect this to change in the near term. It’s estimated that the total value of global trade in 2022 was $32 trillion. The U.S. Dollar was 88% of those trades1. That is only down from 90% in 19881. Further, a reserve currency like the U.S. Dollar must be deep enough to support such large demand, be overseen by a country that can support large current account deficits, has a clear rule of law, does not impose capital controls, and supports property rights. To us, none of the BRICs demonstrate this resiliency. As such, we believe the U.S. Dollar remains the world’s reserve currency for the foreseeable future. We think maintaining a diversified portfolio of U.S. and International stocks and bonds is the best defense against any potential actions by these countries, which is how we have invested your
Introducing Lineweaver WealthTrac Analysis
We’re excited to share the arrival of our new product, the Lineweaver WealthTrac Analysis. This is a unique tool that helps us not only evaluate your current and future financial goals but to also consider emotions and behavior in a way that helps set you up for success. This is a powerful tool that evaluates your current and future financial plan in 5 different areas: Personal Information, Financial Information, Investment Goals, Risk Tolerance, and Risk Score. It considers variables like your employment, career and income, your Social Security, what you want out of your retirement, what your current financial situation looks like, and much more. By doing this, it can give you a great analysis whether you’re still working or retired. Wealth planning is always about establishing a goal and working toward it. To help client’s do this, we look at their top three financial goals. We measure where they are now, and what it would take to meet their timeline. Part of those goals is looking at three time horizons and the strategies that are best matched with each. You must think about the short-term, middle-term, and long-term goals. A truly unique aspect of this program is how it lets us visualize how your risk tolerance and your emotional tolerance match up to the risk you’re actually taking, and the progress you’re making toward your goals. Our unique analyzer also goes even further and offers you a score based on all of thi
Don’t make the mistake of leaving your grandchildren with a tax bill instead of an inheritance
For older Americans, leaving retirement savings to their grandchildren without also leaving them a big tax bill is becoming harder under new rules that took effect in 2020. Previously, heirs other than spouses had decades to draw down inherited retirement accounts. After the rules change, now they must do it within 10 years. To maximize their family’s after-tax wealth, grandparents are changing their estate plans and creating new trusts. The timing change also has grandparents making a series of Roth conversions or big generation-skipping lifetime gifts. These choices make sense with the amount of money and taxes that are at play. According to the Investment Company Institute, Americans held $12.5 trillion in IRAs as of March 31, 2023 and 52% of households headed by someone 65 or older have one. By choosing to leave a Roth IRA, you avoid some of the problems of the accelerated tax hit from an inherited traditional IRA since those can cause a big tax bill, especially if distributions fall during the heir’s highest earning years. Minor grandchildren may also need to file a tax return to report the IRA payouts, and the income could be taxed at the parents’ rate. However, because of the 10-year payout period, there is a risk that your heirs will spend the money quickly. Other options to consider when planning your legacy is to start making lifetime gifts to grandchildren as soon as they are born. That can look like pay
Lineweaver Wealth Advisors proud to be named on Crain’s Top Advisors list for fifth consecutive year
Lineweaver Wealth Advisors is proud to announce that we have been named as one of the Top 15 Advisors in Cleveland by Crain’s Cleveland Business, moving up three spaces from 18 last year. We are humbled to have received this recognition and credit the hard-working team at LWA and the many clients that we have who put their trust in us. According to the list, LWA is one of only 5 of the 25 on the list of Advisory services that grew over the last year. We do that in two ways. First, our goal is to make smart decisions with our client's money, which helps benefit them. And the second is that our clients, friends, and neighbors are constantly referring new clients to us. We want to help them be successful, so that it’s easy for our clients to say good things about us. Our staff work hard and go the extra mile for our clients while adding a personal touch. People are sick of the phone tree and digital assistants where you’re the one that must answer questions when you have important questions you want to ask your advisor. Technology is important – we use it to help build and monitor our client’s customized portfolios. But, just as important is being able to talk directly to your advisor or a member of our service team if you need help. We also believe everyone needs a Financial Quarterback –an experienced and knowledgeable advisor to coordinate the members of your team, and to help make sure your customized financial plan is consi
Maximizing the hidden tax strategy behind Net Unrealized Appreciation
The idea of saving as much as possible during your career while making wise investments to have a comfortable retirement is nothing new for workers. But if you don’t consider a tax strategy with that plan, it can derail any retirement. Many workers are able to get company stock either as part of their compensation or through the company’s 401(k) program and these are the stocks you want to pay attention to so you don’t lose money in taxes. Typically, when people retire, they roll all of their 401(k) to an IRA and everything you paid for that company stock inside the 401(k) and all the appreciation through your working years will be taxed at your personal income rate when you take money out to supplement your retirement. Instead, if you use the Net Unrealized Appreciation – or NUA – rules, you can roll the stock out of the 401(k) and pay ordinary income taxes only on the cost basis, or what you paid for the stock through the years. Then, if done correctly, you can have the appreciation of the stock taxed at the much lower capital gains rates. For most people, this could cut your tax bill almost in half. For example, let’s say that you have $300,000 of company stock in your 401(k), that you paid $100,000 for. You roll the stock out of your 401(k) to a non-IRA account. You will pay taxes on the first $100,000 at your ordinary income rate, but the additional $200,000 would be taxed at your capital gain rate, which ca
Postnuptial agreements come to Ohio
Most people have heard of a prenup – or prenuptial – agreement, but a new law in Ohio will now allow for a postnuptial agreement. A prenuptial agreement is an agreement a couple enters into before marriage describing how their assets will be divided on divorce or death. However, once you were married, you could not amend or terminate the prenuptial agreement or enter into any agreement regarding the division of assets. Until now, all other states besides Ohio and Iowa allowed for an agreement after marriage to either amend the prenuptial agreement or have a whole new agreement describing how assets will be divided on divorce or death. But now that Senate Bill 210 has been signed into law, married couples in Ohio can go forward with a postnuptial agreement. There are a couple of scenarios that a postnuptial agreement could lend itself to. For example, at the beginning of a marriage, the husband and wife were about equal in finances and agreed in a prenuptial agreement that each would keep their own assets. Then they have three children and for twenty years the wife stays at home raising the family and the husband grows his business to be a very valuable asset. The wife might want some part of those assets since she lost the opportunity to grow her assets. In that case, a postnuptial agreement could provide that she shares in some of the growth of the husband’s assets. In another scenario, let’s say parents want to give a
Look back 2022 — Look ahead 2023
COMMENTARY BY JERRY HERMAN, CFA® As we sit in the darkest days of the solar year, we are encouraged to know that the days ahead will have more light – the days will be brighter. And for the financial markets we are optimistic that this will be true in the figurative sense as well. 2022 was a year of recognition and reality - recognition that the stimulus endeavors of prior periods needed to be unwound and the reality that the process could be painful. 2023 offers opportunities and optimism - opportunities being presented in sectors and asset classes that we haven’t seen for some time and the optimism that the Fed will get it right and avoid a deep recession, and global and domestic political and social tension will ease. In 2022, the forces of pandemic-induced supply chain disruptions, exceptionally high consumer demand for goods such as housing, autos, and appliances, and services like travel and entertainment, combined with an energy shock brought on by the Russia-Ukraine conflict, drove inflation to its highest level in four decades! In June, the inflation rate hit 9.1% and averaged just over 7% for the year, more than double the historical average of about 3%. To combat inflation, the Fed increased interest rates seven times during the year to 4.25-4.5%, levels not seen since 2008. The year was difficult for investors. Facing the headwinds of rising interest rates, a very tight labor market, and capacity and supply constraints in ma
Financial resolutions to maintain throughout the new year
By Jim Lineweaver, CFP®, AIF® President and Founder It might not be so shocking to learn that many of us don’t stick to our New Year’s resolutions. In fact, according to a study conducted by the University of Scranton in Pennsylvania, only 8% of people achieved their New Year’s resolutions in 2021. One problem that typically arises is that we set aspirational goals for ourselves instead of ones based on the reality of integrating them into our everyday activities. This can set us up for failure and create self-doubt in our abilities. Here’s a list of attainable resolutions I’ve put together to give you the confidence needed to stay true to your financial goals throughout the new year. The first resolution that will help set a solid foundation to your financial plan is to set aside time to look at your insurance plans. You’ll want to make sure all your insurance is in proper order including life insurance, disability insurance and even property and casualty. Because we specialize in working with retirees, long-term care is of top priority to our clients. And if you have rental or vacation homes, you may want to consider an umbrella policy. Another resolution is to establish your financial goals. Both long and short financial goals should be driven by your personal goals. That could look like sending your children or grandchildren to college, passing on the family business or having a retirement plan tha
Why Your Financial Plan Needs a Second Opinion
People often question if they’re doing all they can to protect their portfolios from losses while taking advantage of buying opportunities. To help you gain more confidence in your financial well-being, it can be beneficial to get a second opinion. Even if you’re happy with your current plan, a second opinion can help pinpoint issues or call attention to parts that might be overlooked otherwise. Here are five reasons why it might be time to consider a second opinion. All financial planners are different, and each offers different services and products. You need a planner who is truly independent and not forced to offer a limited selection of options to meet your goals and objectives. The advisor you want is one that can customize a solution for whatever your circumstances may be. You’ll want to make sure your advisor is a fiduciary, which means that an advisor puts your needs and goals before their own. If you’re currently seeing an advisor that is not a fiduciary like ours, that may mean they’re not keeping your best interests in mind. Make sure you’re working with someone with the proper credentials. Ideally, you’ll want to see a Certified Financial Planner (CFP) because they follow higher standards in terms of education and ethics. The best of both worlds would be an independent fiduciary who is a CFP. Then they’d have access to almost any strategy, product or security and have to put your inte
How should you prepare for retirement?
A question that comes around often is not only how much you should save for retirement, but how much you should spend in retirement. When it comes to talking about how much to save, many times the rule of thumb is 10-15%. However, that assumes that you have saved that same amount for your entire career, and many of us haven’t. Instead of just assuming a single savings rate, many financial advisors will suggest that you start by working backward. That means deciding when you want to retire and how much you’ll spend each year in retirement. Once you set those targets, you can work backward to get the number you’ll need and then divide that by your remaining years and figure in market return. This will help you figure out how much you need to save. While this is a valid strategy many advisors use, an issue that arises here is that situations change. If you do this in your 20s, 30s or 50s, your priorities can be completely different when you’re in your 60s. Working backward can work, but you may want to check that the plan you made 20 or 30 years ago will still appeal to you when it comes to the time of retirement. When it comes to figuring out how much to spend in retirement, many investors and advisors use the 4% rule, which says you can take about 4% of your portfolio in distributions every year. But as we’ve seen this year, inflation doesn’t always cooperate. If you don’t have strategies in your portfolio
Terms and Conditions | Privacy Policy | Disclosures
Nominees in the Top 100 Magazine selections are not required to pay a fee for consideration. Individuals appearing in half and full page editorials, have paid a fee for additional exposure. Candidates for consideration are selected utilizing proprietary software. Top 100 Magazine analyzes the results before making their final selections. Financial Professionals and/or wealth managers must also met the following criteria; 1. Be registered with the SEC as a registered investment advisor or a registered investment advisor representative; 2. Have no more than 1 filed complaint with a regulatory agency; 3.Never been convicted of a felony. Third-party rankings and recognitions are no guarantee of future investment success and do not ensure that a client or prospective client will experience a higher level of performance or results. These ratings should not be construed as an endorsement of the Financial Professional by any client nor are they representative of any one client's evaluation. Lineweaver Financial Group appeared in Money magazine in 2015, Fortune Magazine in 2016, WTAM 1100 in 2018, Forbes in 2020, Channel 5 in 2020, and Top 100 in Finance in 2023.
Lineweaver Financial Group ©
Powered by 
Virteom