Inflation vs. Interest Rates Stand-Off

If the “land the inflation airplane” graphic (originally pictured in October 2022) indicated a US Federal Reserve trying to “land” inflation, then the current graphic would look like a slowly unfolding aborted airplane landing.

To summarize, prices of a number of key consumer items are NOT coming down fast enough to lower inflation in a meaningful way – even if the media has convinced Americans that $5 or $7 for a dozen eggs is “a relief”.

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Mind Blowing & Challenging

Picking a topic for this week’s edition of TGIF 2 Minutes was both mind-blowing and challenging. Choices ranged from:

  • the sentencing of Sam Bankman-Fried to 25 years in prison for fraud tied to his crypto exchange,
  • the tragedy and enormity of the awful Francis Scott Key Bridge destruction in Baltimore,
  • the exposing of betting scandals in college and professional sports, namely the recent scandal around LA Dodgers superstar, Shohei Ohtani and his interpreter (an overall financial greed concept gone beyond awry),
  • a March 20th update from the US Congressional Budget Office on the long-term effects of the Federal Deficits (all young, yes young, people under the age of 35-40, please pay attention to this issue).

Wow, lots of JOY going into Easter weekend.

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MSFS Ltd Edition – “D” for Dawn

Thomas Pablo said it best.

And Mike Minter described beautifully the relationship between “D for Dawn” and Brett and the family that Brett and Dawn’s relationship and businesses have created. For those reading today, that means the MSFS Family.

Maybe there are advisers or leaders within the MSFS & BDLLC corporate umbrellas who were not aware of how strong a family they had joined, or how wise it might be to “dive in” to the MSFS Family (families can be stressful sometimes). But by now I am thinking it is apparent to All, not to look a gift horse in the mouth. Continue reading “MSFS Ltd Edition – “D” for Dawn”

Teaching Inflation to Kids (& Adults)

From the archives of TGIF 2 Minutes – with updates, including perhaps why the US Federal Reserve is taking longer to start lowering interest rates…

“Mommy, Why are you buying our food at Walmart?”

…”Daddy, Why are we not eating my favorite fancy meals and brands of food?”

It is not quite Chef Boyardee and Ramen Noodles yet, but there is data reporting higher-end households shopping at lower-priced food stores (i.e. Walmart).* There is a lesson for kids and adults here. First a few more details.

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Tax Season Time Crunch

It is tax season, which means time is at a premium. TGIF 2 Minutes is designed for this concept. Therefore, a 1-minute read today!

Preparing tax documents, expense spreadsheets, records of charitable deductions, W-2 forms, 1099’s, K-1’s and all the rest can really be a hassle. Here are a few bright spots:

  • Learn something right now this year from every time you find yourself saying, “I am going to do this differently next year!“
  • Whether it is your filing system for tax documents and charitable deductions or set-up of online folders for rental property files, go overboard with keeping better track along the way, starting now for tax year 2024.
  • Make sure to ask your financial adviser about tax loss harvesting this calendar year. Last year there were UP months in markets and DOWN months. Make sure your adviser is possibly using the market’s down months to a tax advantage in non-IRA accounts.
  • If it is not already obvious, have a CPA.
  • Ask your financial adviser for assistance in compiling or finding tax documents. This task is always something with which I am happy to assist – with advance notice – for my clients.
  • Look at ways to make changes and tweaks to the way you are contributing to 401k and IRA accounts while it is still early in 2024. Changes can involve:
  • increasing/decreasing contribution rate
  • creating a mix of before- and after-tax (Roth) contributions
  • spreading contributions over the course of the entire year
  • Consider Roth IRA conversions in 2024.

Tax time is not always the most pleasant time of the year but all we can do is make the best of it. Thank you for all the positive feedback in recent weeks!

This material has been prepared for informational purposes only and is not intended to provide, and should not be relied upon for, tax, legal or accounting advice.

Timely 401k Contribution Info

Today’s edition will take 2 minutes and 38 seconds to watch and could save you a bundle of taxes in the long run. Simply understanding better – at lower and higher income levels – the taxes around 401k, 403b (and TSP) contributions is an advantage. Early in the year timing is key. Why? Please ask me and watch the video.

This material has been prepared for informational purposes only and is not intended to provide, and should not be relied upon for, tax, legal or accounting advice.

 

The Champagne Spray

On the lighter side of matters…. and please CLICK THE TINY ARROW BELOW.

Champagne & William Shatner from Kerrie Debbs on Vimeo.

Back in 2021, William Shatner – at 90, who knew?! – became the oldest person to achieve space flight. Completion of a 10-minute journey on the reusable New Shephard rocket, including four minutes of weightlessness, was cause for a major celebration immediately afterwards. But notable was that upon disembarking from the space capsule Shatner politely turned down taking part in the champagne spray shower amongst the crew, Blue Origin promotional people and members of the press.

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Border Security (not what you think)

Nearly every American is aware of the lack of security at the US-Mexico border. The toxic politics around that issue make it front page news nearly every day and evening. But the other border – that of the border protection around your sensitive personal information – can be just as vulnerable.

Yes, yesterday’s TGIF 2 Minutes covered this issue. But the issue is so serious, it requires a follow-up, with practical examples and then a handful of steps readers can research or choose to take.

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Safety Check of Sensitive Information, Part 1

If the safety of your personal information is not currently at the top of your radar screen, please move it up to the top TODAY. Why? Because there are really bad actors lurking for over one or two decades – in the background of email, credit agencies, and whatever cyber universes exist – and these bad actors are both patient and aggressive about seeking to compromise your identity and financial transactions.

This is not new. In 2017, Equifax, one of the world’s largest credit reporting and monitoring agencies with sensitive data for over 800 million individual consumers, was hacked. Private information of over 147 million American citizens along with British and Canadian citizens were compromised in a security breach. This from a leading company whose entire purpose is monitoring the most sensitive of personal information.

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Interest Rates, The Fed & Gray Hair

Time again for the “soft landing” airplane drawing. As in, will there be a soft landing for the US economy or a hard landing? How soon might the US Fed lower rates and how fast might the markets keep going up or falter down?

A certain amount of gray hair (read: wisdom and experience) helps in understanding the current interest rate and US Federal Reserve environment. Why? Because economies do not move as fast as Amazon delivering a package same-day, or even same-month. And “gray hairs” know this.

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