An intrafamily loan is a wealth planning strategy that has become increasingly more utilized in the current interest rate environment These loans can be used for a variety of reasons including helping a child purchase a home investing in a business or just providing additional liquidity, The rate of these loans is lower than a traditional loan The interest rate used is based on the Applicable Federal Rate (AFR published monthly by the IRS  These rates change monthly To view the current rate click  here When implementing a loan of this nature the AFR is the minimum rate that can be charged without incurring adverse income or gift transactions To illustrate how this may work let’s…, Published January 2025, Mesirow does not offer intra family loans  1 https//wwwmesirowcom/sites/default/files/PDFs/Wealth/2022-Contribution-Limits-webpdf Source  appsirsgov/app/piclist/list/federalRateshtml 

Potential to increase return while reducing risk by simply hedging currencies, For US investors the management of currency risk in their portfolios has historically been an afterthought for a variety of reasons and assumptions chief among them zero expected return portfolio diversification and low materiality in the portfolio We will touch upon each of these views discussing their validity evolution and relevancy within the current market environment Zero expected return, Assumption – Currencies have zero expected return so currency management is unnecessary as it will wash out in the end, Historically developed market currencies have not added or detracted meaningful return in multi-decade time horizons Since the introduction of the Euro in 1999 EAFE currencies have gone full cycle crossing the 0% return line again in early 2022 (Figure 1 However the impact over shorter time horizons is relevant as both plans and managers are often judged over periods as short as one to five years…

October 14 2024 |, By, Mesirow Currency Management, The debt level is approaching its 1946 historic high Will it take a collapse in the bond or FX market before we take action, Current US debt level, “How did your economy collapse” the world asked “Two ways” the US said “Gradually and then suddenly” , This version of memorable lines from Ernest Hemingway’s The Sun Also Rises could describe what happens if the US fails to halt its swelling federal debt Some think that a crisis is unlikely and that worries about the national debt are excessive and unnecessary But everyone has the same question what level of debt is too much   No one will argue that the current debt is historically high The…, 2023 actual, 2024, 2025, 2026, 2027-28 Annual average, 2029-34 Annual average, Real GDP 31 20 20 18 17 18 Consumer Price Index 32 30 23 22 22 2 Unemployment rate 36 39 40 42 44 45 Interest rates (10-yr Treasuries 40 45 41 37 36 40 Source https//wwwcbogov/publication/60039 Real GDP and CPI figures are the change from fourth quarter to fourth quarter Unemployment and interest rates are annual averages  The US debt and the 2024 election, We’re not worried, Count the presidential candidates among those that aren’t overly concerned about budget deficits and resulting debt Neither candidate has prioritized deficit-cutting measures in their campaign proposals or promises Instead Donald Trump and Kamala Harris look to expand the debt burden between $12 trillion to $58 trillion over the next decade  Of course what a candidate says while campaigning and…, Sure we can finance that for you, The US doesn’t lack for willing lenders including foreign and international nations and investors who have the largest share of publicly held debt TABLE 2 PUBLICLY HELD US TREASURIES OWNERSHIP DECEMBER 2023, Holder, Debt amount ($ billions, Publicly held debt (%, Federal Reserve (repurchase agreements $5239 191% Depository institutions $1653 60% US savings bonds $171 06% Pension fund – private $614 22% Pension fund – state and local governments $421 15% Insurance companies $477 17% Mutual funds $3659 134% State and local governments $1680 61% Foreign and international  $7941 290% Other $5537 202%, Total publicly held debt, $27329, 1000%, Sources https//fiscaltreasurygov/reports-statements/treasury-bulletin/currenthtml pgpforg/blog/2024/08/the-federal-government-has-borrowed-trillions-but-who-owns-all-that-debt Asian nations most of them focused on exporting competitively priced goods to the rest of the world the US in particular have about a 377% share of foreign-held US debt In a pattern called Bretton Woods II (the original…, It won’t go on forever although we wish it would, Eventually however China and other foreign holders of US treasuries will nervously view their portfolios of government bonds and bills issued by a nation that seems unwilling to address its budget deficit and ever-expanding accumulation of debt It is unreasonable to expect that foreigners will continue to finance the US deficit at interest rates that don’t adequately compensate them should the…, Question So how much debt is too much debt Answer 175% to 200% of GDP, That’s according to the Penn Wharton Budget Model a non-partisan research group that provides public policy fiscal analyses A debt level of 200% of GDP is far in the future past the CBO’s 30-year publicly held debt projection of   166% of GDP in 2054 But 200% of GDP is a best-case scenario a more likely debt limit is 175% of GDP which is close to the estimated 2054 public debt level  It’s…, Yes, The US could default on its debt explicitly unwilling to pay interest or principal Or default might be implicit the US government would coordinate with the Federal Reserve to buy treasuries on the open market creating capacity for the Treasury to issue more debt The Federal Reserve actions would increase the money supply and likely result in higher inflation so that the US government would pay…, Explore more currency insights, Rapid payments speed money through the financial system economic growth follows, Will developed countries follow the instant payment lead of developing countries  Read article, US debt is headed to unimaginable levels, Since 1990 debt crises have erupted periodically but the next one may not be so easy to dismiss Is a financial reckoning coming Read article

Many people are well aware of two key advantages of a Roth IRA the ability to withdraw money tax-free — which appeals to anyone who wants to minimize their tax bite in retirement — and the ability for wealthier taxpayers to maximize assets and minimize taxes for their heirs Unfortunately high earners often assume they are ineligible for a Roth IRA This is not necessarily true Even though you…, One such strategy is accomplished by first making non-deductible contributions to a traditional IRA (up to $7000/year in 2025 or higher if you qualify for catch-up provisions Non-deductible contributions create “after-tax” basis in the pre-tax IRA Later one might consider converting this to a Roth IRA and this conversion is likely to be partially tax free due to the after-tax basis in the account…, Tax time is a great time to have the conversation with your Wealth Advisor, For many of our clients tax time is the perfect time to discuss whether converting their traditional IRA to a Roth makes sense based on their unique circumstances We can discuss eligibility requirements the pros and cons of a conversion and the potential benefits of a Roth IRA for intergenerational wealth transfer, Commonly asked questions about Roth IRAs, What is the difference between a Roth IRA and a traditional IRA, Roth IRAs are similar to traditional IRAs except that Roth contributions are “after-tax” which means you pay taxes on your contribution upfront Consequently withdrawals from Roth IRAs are tax-free meaning that your investment earnings and growth are never taxed Traditional IRA contributions are not taxed upfront but are instead taxed when you take a distribution from the account Depending on your…, Who can contribute to a Traditional IRA, Everyone can contribute to a traditional IRA as long as they have earned income or qualify for a spousal IRA However only taxpayers who meet certain requirements may take a deduction for their contribution Individuals that don’t meet the requirement are still eligible to make non-deductible contributions to a traditional IRA, Who can contribute to a Roth IRA, Only taxpayers with income below certain levels may contribute to a Roth IRA In 2025 individuals with income less than $150000 and married couples filing jointly with income of $236000 or less are eligible¹, How much can you contribute to a Roth IRA, The contribution limits are the same as a traditional IRA You can contribute $7000 per year plus $1000 if you are over the age of 50 (“Catch-Up Deferrals”, What is the deadline to contribute to a Roth IRA, You have until April 15 2025 to make a contribution for the 2024 tax year², What are the advantages of a Roth IRA, There are many advantages When money is distributed from a Roth it is entirely tax-free including the earnings There are no annual required distributions from a Roth (there are for a traditional IRA A Roth IRA is a tax-efficient way to transfer wealth to beneficiaries upon the account owner’s death A spouse inheriting their partner’s Roth is not required to take mandatory distributions while non-…, Can you have both a Roth and traditional IRA, Yes you can have both It is important to keep in mind though that the contribution limit of $7000 is applied aggregately not $7000 for each account, What are the rules for Roth IRA distributions, There are two primary requirements for distributions to avoid taxes and penalties Roth owners must be at least 59½ The distribution must occur five years after the establishment of a Roth account, What is a Roth 401(k, Roth 401(ks are relatively new and often provide additional retirement savings flexibility They function similarly to a traditional 401(k except the employee contributions are taxed up-front just like a Roth IRA However anyone can contribute to a Roth 401(k if available as there are no income limitations It is important to note that if you contribute to a Roth 401(k any contribution your employer…, Published February 2025, 1 https//wwwmesirowcom/sites/default/files/PDFs/Wealth/Contribution-Limit-Guide-2025pdf Additional source  https//wwwinvestopediacom/terms/r/rothiraasp

By Tiffany Irving Senior Vice President Wealth Advisor, As we round out the end of 2021 and head into 2022 it’s time to start thinking about those New Year’s Resolutions As busy multi-tasking women we often put ourselves at the bottom of the priority list especially when it comes to our finances Ladies – it is time to make yourself a priority Spas are nice but how about making this year’s resolution focused on your own financial empowerment  We have…

Thomas Chang is Managing Director of Mesirow Institutional Sales and Trading In this role Thomas focuses on Commercial Mortgage-Back Securities portfolio Thomas has more than 20 years of experience in Institutional Capital Markets Prior to joining Mesirow Thomas was Principal and Structured Product Portfolio Manager at PGIM Fixed Income Prior to joining PGIM he was in the actuarial development…

The true liquidity costs of small cap high yield bonds are often exaggerated In fact small cap bonds are just slightly less liquid over all but the shortest run and a small cap portfolio can be run with lower total liquidity costs than a large cap portfolio, Summary, Over time and especially today small cap bonds pay higher than average yields with the so-called but mis-named “liquidity premium” being in excess of their historical incremental default risk They also exhibit greater dispersion in realized returns and are thus attractive to active managers with the requisite skill seeking to exploit these sources of value Such a strategy must trade off these…

Owning and operating a small business is challenging Most small business owners’ planning strategies are centered around the success and growth of the business In many instances juggling the various roles within the company to maintain the momentum of the business result in other important planning concepts being overlooked  , The three most commonly overlooked planning concepts involve ownership retirement savings and succession planning  , Have the right ownership structure in place, How a small business is structured —specifically the ownership — can have a significant impact It is imperative to review the various ways in which a business can be owned to ensure ownership is structured appropriately Ownership structure will impact taxation creditor protection and how the valuation of the business will ultimately impact estate planning Recent tax legislation may make it more…, Remember to save enough for retirement, It is not unusual for a business owner to overlook their own retirement savings Revenue is typically reinvested in the company rather than set aside for retirement When this happens the owner often overlooks the tax advantage and savings strategy of different retirement plans that may be available Determining the appropriate retirement plan is dependent on several factors such as number of…, Create a business succession plan, The importance of creating and maintaining a business succession plan cannot be overstated An estate plan should address all the assets of one’s balance sheet For business owners typically the largest asset is their business Succession planning addresses how a business will be handled upon the owner’s incapacity and death These discussions are often avoided as they are emotional and challenging…, Published February 2024, 1  https//wwwirsgov/businesses/small-businesses-self-employed/estate-tax 2  https//www2illinoisgov/rev/questionsandanswers/Pages/26aspx 3 https//legiscancom/IL/bill/HB1576/2023#~text=Illinois%20House%20Bill%201576&text=Amends%20the%20Illinois%20Estate%20andEffective%20immediately