Asset allocation is one of the most critical decisions in building and preserving wealth particularly as it relates to retirement and estate planning The way investments are allocated across different asset classes not only determines the growth and security of retirement savings but also impacts how your wealth can be transferred to future generations Importantly asset allocation is not a static…, The role of asset allocation in retirement planning, Retirement planning requires a careful balance between growth and preservation In the early stages of wealth accumulation investors generally favor growth-oriented equities that may be volatile over the short term but have a stronger return potential over the long run However as retirement approaches the focus shifts toward preserving capital and generating income A well-structured asset…, Early career (20s–40s Growth phase, In your 20s and 30s retirement can seem like a distant concern But the decisions you make now — how much risk to take how aggressively to invest — will shape your future financial security During this phase individuals have the advantage of a long investment horizon allowing for a higher tolerance for volatility A growth-focused portfolio may include a high equity allocation (80–90% diversified…, Mid-career to pre-retirement (50s–60s Transition phase, As individuals approach retirement asset allocation often shifts toward a more balanced structure to mitigate volatility A gradual increase in fixed income holdings such as investment-grade bonds or municipal bonds can help stabilize returns Additionally exposure to income-generating assets like dividend-paying stocks and real estate investment trusts (REITs can provide diversification and steady…, Retirement (65+ Preservation and income phase, At this stage capital preservation and predictable income become paramount as you enter retirement A well-diversified portfolio might include treasuries laddered bond portfolios and structured income vehicles Income-generating assets such as blue chip dividend-paying stocks and real estate can add further income with the potential to provide some appreciation Maintaining a cash reserve covering…, Tax and estate planning considerations, While an appropriate asset allocation plan is imperative for achieving financial success in retirement using tax-efficient accounts can lower your tax bill by meaningfully impacting the ending value of your investments For example a Roth IRA allows your investments to grow tax free as any income or capital gains received from investments in a Roth IRA account will not be taxed by the Federal…, Summary, Managing the allocation of your assets is a dynamic and sophisticated strategy essential for retirement security and estate planning By thoughtfully adjusting investments over time individuals can optimize returns manage risks and ensure a steady income throughout retirement A well-crafted allocation strategy is not just about accumulating assets — it is about sustaining financial independence…

When it comes to meeting goals and staying on budget and on track to attain your financial objectives financial planning is critical Everyone has unique circumstances that must be considered when creating a comprehensive plan and members of the LGBTQ community may have additional factors to consider when it comes to planning , Although the 2015 Supreme Court ruling that legalized marriage for same-sex couples eased planning in some ways challenges remain An Experian survey found that 62 percent of LGBTQ respondents said their gender identity or sexual orientation caused them to experience financial challenges 1 Some of those financial challenges may include income disparity high cost of living family planning and…, Cash flow planning, Cash flow planning is a crucial component of a financial plan and there are numerous challenges faced for our LGBTQ clientele   , Income disparity, —Members of the LGBTQ community are more likely to be earning less than their heterosexual peers Two-female-headed households for instance are on average less likely to generate as much income as different-sex households or two-male-headed households according to Statista 2, Cost of living, —LGBTQ individuals and their families want to live in areas where they are supported and surrounded by other members of their community and allies As a result they tend to live in urban high-cost areas  Potentially less income and a higher cost of living dictates a well-thought-out budget and savings plan, Family planning and health care, —Same-sex couples and LGBTQ individuals who want to have children need to prepare for the various costs associated with their family planning options The costs of surrogacy fertility treatments adoption and other family planning alternatives can cost upwards of $100000 3  An advisor can help coordinate with a tax advisor to strategize on tax benefits that may be available  In addition to family…, Retirement, —While planning for the short-term (housing family planning health care etc it is also necessary to keep longer-term goals and objectives in mind while continuing to save and prepare for retirement  Regardless of orientation couples should continually coordinate with their advisors to understand how to best allocate funds to continue to save for retirement while ensuring they can create the…, Investments that align with your values, Aside from cash flow and budgeting considerations LGBTQ members may want to create an investment plan that focuses on investing in companies that closely align with their values Alternatively they may want to stay away from investments in companies that are not supportive of their community This is a key consideration for advisors and their clients to incorporate into the financial plan and…, Estate planning, The 2015 Supreme Court ruling provided immense progress on the financial and legal rights to same-sex couples Legal documents drafted prior to 2015 may need to be revisited and new legal documents such as trusts need to reflect the wishes of the individuals Protecting partners and children requires couples update their estate plans to ensure that there is a plan in place in the event of death or…, Finding the right advisor, Most people who partner with a wealth advisor have come to the realization that wealth planning is rarely a DIY endeavor and that the partnership with a professional can make all the difference in the quality of their lives Planning and preparation are key to creating a well-thought financial plan that can address your concerns and help set you and your family on a trajectory to meet both short-…, Published January 2025, 1 https//wwwinvestopediacom/how-to-find-an-lgbtq-friendly-financial-planner-5186139 2 https//financeyahoocom/news/choose-lgbtq-inclusive-financial-professional-211957060html 3  https//wwwforbescom/sites/brianthompson1/2019/06/16/5-ways-lgbtq-financial-planning-is-different/sh=5e719f437a39 https//wwwbarronscom/advisor/articles/gay-families-financial-planning-challenges-51626990118tesla=y  

by Keith Gustafson CFA and Christopher M ONeill PhD CFA CFP, ®, FRM, ®, ChFC, ®, Executive summary, Financial assets in general perform very poorly in high inflation environments with negative inflation-adjusted (real returns being the norm  Among fixed income assets Treasury Inflation Protected Securities (TIPS do a decent job of mitigating the negative effects of inflation which may or may not translate into positive real returns In terms of fixed income the optimal inflation-hedging strategy…

The power of “compound interest” is a concept that has been around for a long time and its benefits can be applied to a number of strategies designed to help accumulate wealth over time The secret is to start early and let time work its magic In this article we share some ideas that leverage the power of uninterrupted compounding to help our clients accumulate wealth at an early age Readiness…, Example of compound interest, Let’s review the basics of compound interest by looking at two 25-year-old investors who make different decisions about contributing to their 401(k Investor A contributes $19000 to his 401k for the next 15 years and then stops contributing Investor B decides she can’t afford to contribute to her 401k right now and waits until she is 35 before contributing She then contributes $19000 for 30 years…, Ideas to leverage uninterrupted compounding, Listed below are three ideas designed to leverage the power of uninterrupted compounding to help build wealth at an early age 1 | Fund a Roth IRA for your children and/or grandchildren Many of our clients – regardless of their income level – use Roth IRAs or Roth 401(ks as part of their wealth accumulation plan In these accounts after-tax money is contributed growth is tax-free there is no…, Age, Year, Childs Income, Contribute, Return, Dollar Amount, 12 2 $500 $500 500% $1051 14 4 $1500 $1500 500% $3709 16 6 $3000 $3000 500% $9189 18 8 $5000 $5000 500% $19331 20 10 $15000 $6000 500% $33088 22 12 $70000 $6000 500% $48779 24 14 $80000 $6000 500% $66079 26 16 $90000 $6000 500% $85152 28 18 $100000 $6000 500% $106180 30 20 $110000 $6000 500% $129363, Assumptions, 5% straight-line annual returns $7000 maximum contribution to Roth IRA if you’re under age 50 $8000 if 50 or older (Tax Year 2024 IRS Law Child begins full-time work at age 22 earning a salary grown by $6000 annually Assumes Modified AGI falls within income limitation for Roth Contribution   2 | Be strategic about college funding With the average cost of a private university being upwards of $…, In summary, The power of uninterrupted compounding is not a new concept but it is a proven one Applying this concept as part of a strategic wealth management plan allows our clients to help achieve the goals they wish to accomplish We gave just three examples above We recommend you speak with your Mesirow wealth advisor about how you can leverage these ideas as port of your financial plan, Published March 2025, Sources https//wwwirsgov/retirement-plans/roth-iras https//wwwsavingforcollegecom/article/how-much-can-you-contribute-to-a-529-plan https//wwwsavingforcollegecom/calculators/college-savings-calculator https//mydimensionalcom/insight/special_postings/234992/

For most people  currency exchange rates are numbers in small print buried in the business section of a newspaper or an app they check before an international trip But given the potential effects those tiny numbers can have on the lives of people or the fortunes of nations it would be fitting to list them on the front page next to the day’s forecast Currency exchange rates can be like the weather…, Currency exchange for traveling and Big Macs, It’s different for international travelers who need to exchange USD for the local currency The occasional traveler buying small amounts of currency might not realize that the price of the local currency is different today than it was last month or last year Frequent travelers on the other hand are likely much more aware of how currency exchange rates can change  In late September 2024 a British…, Currency exchange and foreign assets, Not only can currency exchange rates be misaligned but their fluctuation can result in gains and losses for holders of foreign assets Owners of international equities buy their shares in local currency and hope to profit from rises in the local currency price of the stock But changes in the exchange rate can also boost – or reduce – the profit  The table below presents the situation where the…, Local (Euro equity price, Euro – dollar rate exchange, Equity dollar value, Start of year €2000 $110/€ $2200 End of year €2000 $121/€ $2420 Change 00% 10% $220 (10%   If the asset value is large enough currency rate changes can have stunning effects If you bought a French vacation home for €1500000 an equivalent $1650000 the exchange rate suddenly becomes an important benchmark For not only is the value of your house based on location location location but a penny change…, Currency exchange in history, While dramatic and damaging to individuals and firms manipulating a country’s exchange rate for achieving domestic economic aims is not unusual In the Great Depression international trade and finance collapsed after the stock market crash in the autumn of 1929 and countries took unilateral steps to help domestic manufacturers Nations devalued their currencies to make their exports cheaper and…, The Asian currency crisis, Like the Great Depression the Asian currency crisis of 1997 involved unsupportable fixed exchange rates But instead of being fixed or pegged to gold these Asian nations’ currencies were pegged to the US dollar The central banks of these nations managed the value of their currencies so that they fluctuated up and down with the US currency The crisis began in July 1997 when speculators sold large…, How currency exchange might affect the US, Currency crises can seem long ago or far away but it’s not unimaginable that the United States could suffer one Burgeoning costs for social services like Medicare and Social Security and crushing interest payments from historic levels of debt could be the catalyst for a  dollar crisis In fiscal year 2025 to 31 January the social programs have consumed  34 percent of government spending net…, Electrical circuits and currency exchange, Potential pitfalls for the US dollar show how currency exchange rates are like electrical circuits running in the background rarely thought about essential for modern life Its not until there’s a disruption that we notice them and worry  Significant changes in currency exchange rates could reflect concern about economic and political conditions or disasters like armed conflict Keeping an eye on…, Explore more currency insights, Understanding currency quotes, Learning how exchange rates are presented and what they signify can offer a clearer view of the economic trends and market forces shaping currency values Read article, Four strategies to reduce liquidity management stress, Different approaches can help investors manage the liquidity challenges associated with their currency program Read article, Safe haven currency hedging, Why do US and Swiss pension funds use different currency risk strategies Read article

Leo Harmon discusses the economy since the start of Mesirow Monday two years ago investing rate cuts and what we can expect in the next couple of months Listen to broadcast  , Explore, Each week our speakers share insights on topics including the basics of personal finance investing and wealth management financial security financial literacy and retirement planning | Mesirow Mondays