January 2023 Power Hour – DREAM Story – Jim Kackley, Instigator and Chief of BaseCamp USA

DREAM Story – Jim Kackley, Instigator and Chief of BaseCamp USA

BaseCamp USA is a unique life skills program designed for young men who choose to live courageously.

For Jim, BaseCamp USA is a longtime passion and dream. Having spent his career as a managing partner of an international public accounting firm, on the boards of numerous publicly traded companies, and in the management of charitable enterprises, Jim understands that the most critical element of business success is a person’s ability to grow.

Jim shares his personal experience leading up to his “retirement” work and the three components to a happy life he has discovered over the years – someone to love, something to do and something to look forward too.

Market Update – The 60/40 Portfolio is Broken

Main point from 2022 is that it was very abnormal that there such extreme volatility in both stocks in bonds. The S&P 500 was down about 20% and the 20 year treasury bond was down 27%….there are only a handful of times in history that type of move in stocks and bonds has happened in the same year and this year was one of the most extreme we’ve ever seen.

The only thing that did well as a group this year was defensive and inflation protected stocks such as Energy, Materials and Healthcare.  These hold a higher weighting in the Dow Jones Industrial which is why that index did the best of all the other major indexes.

2022 Returns

S&P 500                                                          -19.44%

Dow Jones                                                     -8.78%

Nasdaq                                                          -33.11%

Bloomberg UA Agg Bond                            -13.01%

Last year was one of the worst year on record for a 60/40 portfolio which by many is deemed a “safe” retirement portfolio.

Morningstar State of Retirement 2022 – A “safe” withdrawal rate in retirement is not 3.8% *

High interest rates have lead to opportunities we haven’t saw in years in the bond world

  • Short term treasuries – paying over 4% (great CD alternative)
  • Corp Bond opportunities
  • Fixed Index Annuities(FIA) – Caps as high as 12%!

In FIA as an Asset class, Roger Ibbotson states that FIAs are a great bond replacement for the 60/40 retirement portfolio.

*FIAs also allow for guaranteed retirement income of higher than 3.8%

Banks, FDIC and Silver & Gold

Wall Street Silver on Twitter posted a video from an FDIC meeting of bankers talking about the banking system and their lack of faith in it. FDIC as about 125B in assets to insure 9T in deposits.

Buy Gold and Silver to insure your wealth!

The Key to New Years Planning that Works ~ The ABC Choice Model

The key to making a decision or setting any goals is as simple as ABC.

To begin, draw a large V on a piece of paper and put an A on the left side, a B on the right side and a C at the bottom point.

We start with A which stands for were your at or your current reality.

What’s working, what’s not working?

What’s the impact on your health, wealth, relationships…

How do you feel?

What would give you a greater sense of control and/or more balance?

Major concerns?

Then, B is where you want to B or your bright sunny future.

What’s important to you?

How would you feel to Be, to Have, to Do …?

What would be the impact on your health, wealth, relationships?

Then, C is the cost or consequences of not doing anything or not getting to B.

How would you feel?

What would the impact be?

The reality is, we will never stay where we are at. We will either move toward B or slide down to C.

So, what is in the way of your B? Time, money, resources, feelings, fear…?

What steps do you need to take to make B a reality? Who will help you? Who will be your coach to help you along the way.

 

3 Financial Planning Musts  

  • Must be coordinated with all aspects of your financial life
  • Must be about YOU and your why
  • Must be agile

Estate Planning Spotlight – The Power of the Power of Attorney

Estate planning isn’t just about what happens if you die, but if you are incapacitated for any reason.

If you can’t make the decisions, the power of attorney appoint someone else to be able to do that for you. If you’re unavailable or you become incapacitated, a Power of Attorney allows you to appoint someone to handle your financial and other legal matters on your behalf. In other words, the power of attorney allows someone to access your accounts for you when you need it most.

Whether you’re married or single if you don’t appoint a power attorney and something happens where you can’t make a decision, then someone is going to have to make it for you. Instead of you choosing who it’s going to be, the courts will choose who it’s going to be.

Tax Talk -New Tax Updates

 

You will now receive a 1099k for transactions over $600 (think Paypal, Venmo…)

All of the tax credits from 2020 will be gone and revert back to 2019. Think stimulus money, child tax credits, earned income credits…

The above the line charitable donation deduction, or what you could claim in addition to the standard deduction is now done.

Live Your Dream,

Michelle Bertram

 

We serve clients in Mineral Point WI, Dodgeville WI, Platteville WI, Lancaster WI, Fennimore WI, Boscobel WI, Richland Center WI, Muscoda WI, Spring Green WI, Mazomanie WI, Sauk City WI, Middleton WI, Madison WI, Fitchburg WI, Verona WI, Mount Horeb WI, Barneveld WI, New Glarus WI, Monroe WI, Belleville WI, Oregon WI, Stoughton WI, Darlington WI, Cuba City WI, Hazel Green WI, Belmont WI, Dubuque IA, Freeport IL

Want to share this blog post? Click the links below!

Don't miss a post!

Sign up to receive an email notification when a new blog post is published.

Select the categories you'd like to be notified: