Big Bank or Independent Advisor?
There are a lot of places you can go to get financial advice.
So why choose a local, independent advisor vs. a “Big Bank” or National Chain?
In this video we discuss some important characteristics of our Independent Advisor business model.
Many Reasons to Be Thankful
The past year and a half have tested all of us, but overall, the economy continues to strengthen, COVID-19 trends are greatly improving, and this still relatively young bull market is alive and well. As the leaves turn colors and begin to fall to the ground, there are many reasons to be thankful.
The economy slowed considerably in the third quarter (as the growth rate of gross domestic product [GDP] slowed to 2.0% from 6.7% in the second quarter), well below the 10% that was expected back in early June. The good news is—this likely isn’t the start of a new trend. The COVID-19 Delta variant slowed the economy considerably in the third quarter, but growth is expected to pick up in the next few quarters. Big purchases were likely pushed back a few months, which helps the growth outlook for the fourth quarter. Additionally, consumer balance sheets remain very healthy, with trillions of dollars in savings and money market accounts. The consumer, which makes up about two-thirds of the economy, is in very good shape heading into 2022.
Supply chain disruptions are being felt all across our country. Goods are taking longer to get to us and costing more than they did in the past. But over the past few weeks, we have seen some signs that the worst of the supply issues may be ending. Although these issues lasted longer than most expected, the bottlenecks will continue to work their way out of the system over the coming months and provide relief—something consumers are sure to appreciate.
Earnings drive long-term stock gains and continue to justify stocks at current levels. Third quarter S&P 500 Index earnings have been extremely strong once again, with more than 80% of companies beating estimates (FactSet) and earnings up nearly 40% from 2020 levels. Yes, many companies have been impacted by the recent COVID-19 Delta variant-induced economic slowdown and supply chain problems, but corporate America remains quite optimistic about the future.
The strong stock market performance this year is yet another thing to be thankful for. In fact, November has been historically the best month of the year for stocks, with the usually strong December right after that. Although some of the late seasonal gains could have been pulled forward by the 6% gain in October, the bull market is alive and well.
The loss of so many lives to COVID-19 is a tragedy beyond comprehension, but some recent trends show light at the end of the tunnel. Approved booster shots and vaccines for children will continue to help the economy reopen. Additionally, hospitalizations are down by more than half from their September peak, suggesting we are over the worst from the Delta worries. Another reason to be thankful indeed.
These last two months will go by quickly, as this time of year is always busy—and that’s a good thing because it means we are getting closer to normal. We’ve come a long way since early 2020 when COVID-19 first arrived on U.S. shores, so let’s not forget to take some time to remember how lucky we all are.
Please contact us if you have any questions.
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Important Information
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.
References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.
All data is provided as of November 1, 2021.
Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.
All index data from FactSet.
This Research material was prepared by LPL Financial, LLC. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
Preparing For Retirement
What is your dream for retirement?
Retirement use to mean moving to Arizona and playing golf everyday. If that is your dream, great!! Or maybe you envision a different lifestyle for your “second act.”
In this video we discuss 3 basic steps that will help prepare you for retirement.
Your Kimball Creek Partner Team is Growing!
We are pleased to announce Erica Bearer has joined the Kimball Creek Partners team as our office manager.
Erica is a veteran in financial services, having previously worked for another wealth management firm. In addition, Erica has held administrative positions in the health care and recycling industries. A native of Washington, Erica lives in Spanaway with her husband and two boys. She is an active member of the PTA, serves as a Sunday School Teacher, and enjoys home improvement projects.
We feel fortunate to bring on an experienced professional like Erica. Her expertise in handling office duties will allow Dean and Brock more time to focus on the most important part of Kimball Creek Partners: You
As we begin to wind down 2021 and look forward to 2022, we are focused on achieving excellence for you in both service and performance. To help meet these goals, Brock has moved over to an advisor role and directly assists Dean in building financial strategies.
The current and future growth of Kimball Creek Partners is designed to strengthen your team so we can provide excellent services for decades to come. If you are wondering, Dean has NO plans to retire (he enjoys his job too much).
In 2022 we look forward to having more conversations about what matters most to you, and how your financial strategy can support those priorities. Thank you for you support and business.
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Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice and financial planning offered through Financial Advocates Investment Management, DBA Kimball Creek Partners, a registered investment advisor. Financial Advocates Investment Management, Kimball Creek Partners and LPL Financial are separate entities.
Are SPACs a good investment?
In the past 2 years Special Purpose Acquisition Companies, or SPACs, have become a popular route for private companies to become listed on publicly traded markets. If you don’t know what a SPAC is, we suggest going back and watching our previous video.
In this video, we want to focus on whether a SPAC is good investment. Of course, each SPAC will be different, and returns will vary. However, recently our partners at Ycharts pulled data on 72 different SPACs. Their research gives us some insights we wanted to discuss.
What is a SPAC? (Special Purpose Acquisition Company)
In the last 2 years, a new type of company has gained immense popularity. These companies are called Special Purpose Acquisition Companies, or SPACs. While just 1 SPAC had an Initial Public Offering (or IPO) in 2009, already in 2021 we are approaching 300.
To understand what a SPAC is, it is best to focus on what a SPAC does. In this video, Dean explains the basic concept of a SPAC.
The WA State LTC Act with Tim Ripp
In July of 2019, the Long-Term Services and Supports Trust Program legislation became law, now referred to as the WA Care Fund. We are writing to you because this law will take effect this coming January 2022 and will impact your paychecks if you are a W-2 employee.
In essence, the law provides a small Long-Term Care (LTC) benefit for Washington residents. It will be funded by an uncapped and mandatory 0.58% payroll tax on all income for every W-2 employee with a few exceptions such as Federal employees and certain negotiated employer bargaining units. The program offers an initial $36,500 benefit which will be inflated annually by a rate determined by a Washington State board, based on the Consumer Price Index (CPI) in Washington. The program will adhere to strict vesting rules along with residency requirements at claim time to qualify for benefits.
We are passing this information along, as there is a window of opportunity to file for an exemption to the payroll tax and involvement in the program. The law allows for Washington employees to file for an exemption through the Employee Security Department (ESD) October 1st, 2021 through December 13st, 2022. The law also stipulates that to file for the exemption the employee must have credible LTC insurance in place prior to November 1st, 2021.
We recently conducted an interview with Timothy Ripp who is an Executive Vice President at Clifton Park, and a subject matter expert on the WA Care Fund. In our interview, Tim discusses what the new law entails and why individuals may want to opt out.
If this upcoming payroll tax has caught you by surprise and you would like to learn more about the State program and your options, now would be a great time to schedule a meeting to review your options to acquire the exemption and incorporate LTC planning into your financial plan.
Content in this material is for general information only and not intended to provide specific advice or recommendation for any individual. This information is not intended to be a substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax advisor.
4 questions to ask your CPA now that your taxes are done
In the world of sports, games are won and lost on the practice field. We do not think it is a stretch to say that the same is true for taxes. It is about preparation.
Now that tax season is over, and before you shelve your tax return for the next 9 months, we suggest you do a little work to prepare yourself financially for this year.
Here are 4 questions you should ask your CPA now that tax season is over.
- What is my adjusted gross income and marginal tax rate?
- Do I have any remaining loss carry forwards?
- Am I eligible for a ROTH IRA conversion?
- Am I effectively utilizing charitable giving to reduce my taxes?
Tax season is a time of reflection. A rear-facing view (or accounting) of where you have been and what you have done financially.
To take control of your finances, you need to look forward. That is where financial planning comes in.
We are not tax professional, and we can’t do your taxes for you. But when you get the answers to these questions, we are happy to have a conversation about financial planning strategies.
To be kind, think In Kind
Today we are talking about charitable giving strategies. Donations in Kind are a powerful way to efficiently give to charitable causes. These direct gifts are a great way to help charitable organizations, while reducing your tax bill. These types of donations are not right for everyone, and we encourage you to speak with a tax professional about your specific situation. However, most charitable organizations, non-profits, and churches can accept these types of donations. So regardless of the cause that you support, it is possible that In-Kind giving can increase your donation’s impact.
One of the most important questions to answer before setting financial goals
What is the most important question to ask before setting financial goals?
In Lewis Carol’s famous novel Alice in Wonderland, Alice asks the Cheshire Cat what fork in the road to take. The Cheshire Cat replies, “That depends a good deal on where you want to get to.” Alice explains she doesn’t really care where she goes, as long as she goes somewhere. The Cheshire Cat responds “Then it doesn’t matter which way you go.”
That is true for lost protagonists, and it is true for investors, knowing where you want to be is the first step in getting there.
We want to be your partners in reaching financial goals. We love helping to develop the plans and teaching you about the options available. However, only YOU can decide what you want out of life.
So, what do you value most?
Because that is the most important question to ask before you set any financial goal.
