Category: Letter From The President
Letter from the President Q3
One of the many challenges posed by COVID-19 is the end of the year celebrations for new grads. In the Lineweaver household, this has been especially difficult for my eldest daughter Tori, who graduated this year from Miami of Ohio! Kathy, myself, as well as Tyler and Delaney, could not be more proud of Tori and her success. I was lucky enough to have her join me for two of our weekly Financial QuarterbackSM segments, to talk about financial concerns and strategies that all new grads should consider. The first thing Tori and I talked about is that choosing the right benefits is an important first step. Some new graduates might be able to stay on their parents’ health insurance until the age of 26, which can help save on some of the initial costs. If not, make sure to look over all the options to find the right insurance that fits your needs and budget. Many jobs will also give you options when it comes to life insurance and disability. When you’re young something such as disability or life insurance doesn’t strike you as important, but you have to be prepared for unexpected circumstances. It’s critical to protect your most valuable asset, your ability to earn an income. We also talked about how important it is to set up your 401(k) or IRA, maximizing, and matching contributions. Compounding can help your money grow faster! Also, establishing and using credit responsibly, paying bills on time every time, is critical for future purchases like a ca
Letter from the President
First, let me say the obvious: these are truly unprecedented times we are living through. Second, we appreciate how calm our clients have been. While everyone is feeling the anxiety and challenges of these times, I am truly impressed by everyone that I have spoken with. Please know that we will continue to closely monitor the markets, the economy, and your portfolio, and take action when we need to in order to best protect your hard-earned money. One of the conversations I am having with many of my clients is simply a reminder that the equities part of your portfolio is really meant for a 3-5 year timeline. For immediate money needs, we’ve layered in other strategies that are much less volatile, and which should offer you protection in the short term. We often hear from clients that other advisors that they’ve had are more reactive, while we strive to be more proactive. We think that was the case this time as well. To take advantage of the strong market in 2019, we rebalanced in early January and again in March as noted by Jerry’s article on the front page. We’ve also been making an effort to send regular communications about the markets, your portfolio, and most recently the CARES Act during the last several weeks. We’ve also been called on by channels 5 (WEWS) and 8 (FOX) to help clarify confusion around the markets and the financial ramifications of the coronavirus pandemic. Be sure to follow our website and blog for regular updates, a
Spring Cleaning Your Finances
As the weather in Cleveland (Hopefully!) starts to improve, many people are thinking about spring cleaning their homes and yards. This is also a great time of year to do a little spring cleaning on your finances as well. 1. Check in on Your Budget: Having a good budget is a huge part of a successful financial plan, so it’s wise to revisit it periodically. Look at areas where you may be spending, as well as areas where you have more budgeted than you’re spending. The goal here is to track your finances without having to spend huge amounts of time every month. After all, you want to be as wise with your time as your money. 2. Check Your Tax Withholdings: It’s tax season, and that big refund feels good! But essentially it means that you’ve given the government an interest free loan for the year, and so it may be wise to revisit how much you’re having withheld. 3. Take a Home Inventory: If you have homeowners’ insurance, you need an inventory of all your possessions. An inventory will make it much easier to replace your items in case of a disaster. If you don’t yet have an inventory, take photos of most of the items in your home, especially expensive items like electronics and furniture. Make sure you’re also keeping track of approximately how much you paid for them. 4. Cut Your Bills: If it’s been awhile since you shopped around for better rates on your car insurance, cable, cellphone plan, even things like utilities, thi
Letter From the President Q1 2019
5 Financial Resolutions to Make in the New Year Most major new years resolutions are pretty common, and often many of them are financial. 1. First things frst--the base of any good financial plan is insurance. You want to make sure all your insurance policies are in proper order. This includes life insurance, disability insurance, long-term care insurance (if you are retired), making sure your property and casualty limits are appropriate, and even an umbrella policy – especially if you have kids or young drivers in the house. 2. The second is to pay yourself first. We generally recommend saving 15-20% of your gross income. First make sure some of this goes into an emergency reserve for you, which is usually 3-6 months of your after-tax income. Then try and maximize your pre-tax or ROTH contributions to get money tax deferred or tax free for retirement. 3. Number three is to ask yourself - are your financial goals on track? This can range from funding your kids’ education to buying that vacation home, or planning for retirement. Tracking and regularly revisiting your financial goals is important, as well as understanding and using the best strategies available to realize them. 4. The fourth resolution is about tax planning. Many people fnd they’re being penny-wise and pound-foolish; saving small amounts during the year, and then getting hit with huge capital gains distributions or other unnecessary taxes. Now is the time to look at your year-end statemen
Q4 2018: Letter From the President
2018 marks a major milestone in Lineweaver Financial Group history. When I started the company 25 years ago in 1993, my vision of improving the lives and retirements of families was just getting started. When I think back to those early days and compare it to where Lineweaver Financial Group stands today, I can’t help but be proud of the hard work we’ve done, and the things we have accomplished. In the last few years we have opened new office locations, which has expanded our reach to areas such as Mentor, Westlake, and most recently, Akron. Meanwhile, at our headquarters in Valley View, we continue to grow as a company. We have made major changes to our website, providing easier online account access to our clients, and making our informative materials such as our blogs, articles and whitepapers more readily available. Many of you were familiar with our segment on the Golden Opportunities show which ended earlier this year. We are now featured every Sunday on Fox 8 just before the 10 AM news with Chris Wallace, as part of our own segment, “The Financial Quarterback.” We will continue to provide helpful financial planning strategies and tips through this new program, and we hope to serve as a valuable retirement resource. Of course, none of these things would be possible without our clients. On behalf of everyone at Lineweaver Financial Group, I want to thank you for placing your trust in us, and for providing us with the opportunity to carry out yo
Letter From the President: Should You Take a Summer Vacation from Your Investments?
There’s an old saying you’ve probably heard that gets repeated every year in the spring and early summer that goes “sell in May and go away.” But is that good advice? What’s the best thing for you and your investments over the historically slower summer months? The phrase “sell in May and go away” is thought to originate from an old English saying, “sell in May and go away, and come on back on St. Leger’s Day.” This phrase refers to a custom of upper class aristocrats, traders and financiers who would leave London to spend the summer months in the country. Specifically, it refers to the St. Leger’s Stakes, a thoroughbred horse race held in mid-September. It turns out that the saying is based in solid analysis - From 1950 to around 2013, the Dow Jones Industrial Average has had an average return of only 0.3% during the May to October period, compared with an average gain of 7.5 percent during the November to April period, according to Forbes. But, since 2013 there’s good reason to believe that’s no longer the case. For example, the S&P 500 rose nearly 7% from the beginning of last May through the end of October, according to YCharts. The blue-chip index was up 5% during May through October of 2016 as well. The market did fall in the May-October period of 2015 because of concerns about China. But the S&P 500 enjoyed a 7% pop from May-October of 2014, a 10% gain in May-October of 2013 and eve
Letter from The President Q2
Keep an Eye Out for our New (and easy to use!) Website Many of our clients have been using our website for several years, and I know that many of you have come to count on it as a regular source of news, new and interesting resources, and a simple and secure way to access all of your accounts through our consolidated WealthTRAC Consolidated Reporting Platform. In an effort to consistently offer our clients and friends an updated and refined experience to better serve your needs, we’ve been spending some time updating our website over the last several months, and the new website will go live in the coming months. The new website will be better aligned with our clientele base, feature easy access to our newsletters, blog, Golden Opportunities Shows and other media appearances, and all of the client accounts that you have now. We have also taken this opportunity to narrow our focus, so that we can better serve you. You’ll notice that the new site focuses on four segments, which all of our clients fit into: Retirees, Pre-retirees, Business Owners, and Executives. No matter which group you fit into, we’ve taken some time to put together some valuable resources, information, and whitepapers that we hope you’ll take the time to look
Q3 Letter from the President
One of my favorite things about summers past, especially when the kids were young, was a tradition that my father-in-law started. At the beginning of each summer, he’d take pictures of the kids – on vacation, having fun, or just lounging around at home. At the end of the summer, he’d make a little book out of it and give it to Kathy and me. I still have all those books! These are a few of my favorites of us as a family. I hope that you and your family have something fun planned this summer, and that you’ll take the time to make (and capture) a few memories of your
Letter From the President: Winter 2017
For a lot of people, 2016 was a challenging year. Following a year of contentious rhetoric on the primary campaign trail, the presidential election was perhaps even more divisive. We lost music icons Prince, David Bowie, and Leonard Cohen. Even Brad and Angelina - the epitome of the Hollywood love story gone right - announced that they would part ways. For a lot of people, 2016 was a challenging year. Following a year of contentious rhetoric on the primary campaign trail, the presidential election was perhaps even more divisive. We lost music icons Prince, David Bowie, and Leonard Cohen. Even Brad and Angelina - the epitome of the Hollywood love story gone right - announced that they would part ways. On a personal note, time is flying for the Lineweaver family. We sent our oldest daughter off to college at the Farmer’s School of Business at Miami of Ohio. She is actively pursuing a finance degree (I can’t imagine where she came up with that idea) with a minor in entrepreneurship. She made the rowing team, and is involved with the Wilks Institute for Leadership. Tyler turned 16 and is now driving (so keep in mind that the roads may be safer during school hours). He also made the JV basketball team and started his own landscaping business this summer. Delaney is in 8th grade now and playing soccer, basketball, and is singing in show choir. So, while we’re sad to see 2016 go, we’re also excited for a new year, and new beginning. As we kick off 2
Letter From the President - Fall 2016
The Department of Labor has new rules which go into effect in April, 2017. The Fiduciary Rule requires retirement advisors to adhere to a fiduciary standard, putting the best interests of their clients first rather than their own. The new rule expands the types of retirement investment advice covered by fiduciary rules to include IRAs for the first time Previously brokers and advisors were held to a less rigid standard, and could recommend products that put their own profits ahead of the best interests of their clients. The revised Fiduciary Rule will require retirement brokers to be more accountable for the advice they provide to their clients, making sustainable retirement income more likely for many retirees. The important point is that as a fiduciary, we are required to act in the best interest of our clients. This means that any advice and recommendations must be driven by what is best for you and cannot be influenced by any other considerations. The fiduciary standard also requires advisers to maintain the expertise to both thoroughly understand clients’ financial situations as well as the variety of options available to help them meet their financial goals. One of the more beneficial impacts of the new rules will be consolidation in the industry and less qualified advisors will fall by the wayside. All the better. The investing public will only benefit from an increased standard of care and the protections afforded under the Department of Labor rules. I
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