Hongbing (Bing Hsu is a Managing Director in Mesirow Institutional Sales and Trading He focuses on quant municipal research Bing has more than 30 years of experience in the industry Prior to joining Mesirow in 2017 he worked at as a portfolio manager at UBS Asset Management for 8 years Previously Bing held various research and portfolio management roles at Merril Lynch Bank of America BankBoston…

April 8 2024 | By, Mesirow Currency Management,  , Bretton Woods An attempt to avoid post-WWI economic mistakes 1, Following World War II gold played a pivotal role in the post-war international monetary system Representatives from 44 Allied countries met at the United Nations Monetary and Financial Conference held at Bretton Woods New Hampshire in July 1944 The Allies created the Bretton Woods agreement in which the United States agreed to convert US dollars to gold at $35 per ounce Nations maintained fixed…, Speculators and de Gaulle see an opportunity, The fiscal position of the US didnt go unnoticed by speculators and they bought gold in anticipation of a devaluation of the US dollar The United States and its European allies worried that speculators could cause the gold price to rise above the official rate of $35 per ounce formed a gold pool in 1961 to sell gold whenever the price rose above $35 At first because of increased mining of the…, High unemployment or wage and price controls, De Gaulle’s resignation was just one incident in a period filled with momentous events and challenges Top of the economic challenges list was inflation The new US President Richard Nixon was faced with the economic choices the British confronted in 1931 Nixon could either dramatically increase interest rates and taxes to stabilize the price of gold and the position of the US dollar or he could…, A decade of frustration, The 1970s was a decade of economic frustration The world grappled with high inflation stagnating business oil embargoes and skyrocketing energy prices Central banks sold gold believing that no commodity made sense as the basis for monetary policy And so after a few years of adequately or even admirably supporting economic wealth and welfare gold appeared done in by the impossible task of a single…, What would the Lydians creators of the first gold coins think, The Lydians might look at these gold events with disbelief What went so wrong  We might respond In theory a gold standard is appealing but maintaining gold levels to support currencies could result – has resulted - in painful economic consequences for millions of people And who will be the gold keeper The twentieth century every-nation-for-itself-gold-standard strategy failed miserably And the…, Explore more currency insights, Gold gets a good start, Gold has been money or the basis for monetary systems for centuries How did gold become the ultimate backing for nations’ currencies in the nineteenth and twentieth centuries Read article, The gold standard, The Great War (1914 – 1918 shattered the world In the conflict’s aftermath people desperately wanted to recreate pre-war tranquility How did gold affect the world’s desire for peace and harmony Read article

Introduction An altered landscape, Unidentified by science before January 2020 the SARS-CoV-2 virus has since transformed nearly every aspect of life the ways we interact work travel communicate and above all consume The implications of the latter for producers of consumer packaged goods are only now becoming fully clear Like every other sector of the US economy the packaging industry suffered its share of setbacks during the…

Stock splits can often be a confusing concept for investors Common questions can include What does it mean when a company announces a stock split Does the split change the company’s underlying value Can the split make the stock more affordable for everyday investors, What is a stock split, You are at an arcade with games that only accept $1 bills Unfortunately you only have a $10 bill so you ask the cashier to give you ten $1 bills in exchange for your $10 bill There is no downside since the value exchanged is equal you just effectively have more bills that add up to the same amount Similarly when a company splits its stock it divides one share into multiple shares which lowers the…, ABC Current,  , Current Shares Outstanding, Approximate Price, Market Cap, 428 Billion $45000 193 Trillion  , After 4-for-1 Stock Split,  , New Shares Outstanding, New Approximate Price, Market Cap, 1712 Billion $11250 193 Trillion A collection of all a company’s shares outstanding multiplied by its price equals its market cap In this scenario ABC company currently has 428 billion shares outstanding and it is trading at around $450 Therefore its current market cap is 193 trillion¹ When ABC splits its stock the number of shares will increase but the price goes down by an equivalent amount so…, Published March 2025, ¹   http//financeyahoocom/quote/aapl/historyp=aapl  

When planning how to donate to charitable causes it is important to be aware of all of the tax implications  Two strategies often used by individuals and families are donor-advised funds (DAFs and private foundations each has unique costs and tax advantages, Donor-advised funds (“DAF”s DAFs allow you to gift cash appreciated securities or other assets directly into a fund then help choose which charitable organizations the fund makes grants to  DAFs are relatively easy to set up and inexpensive to maintain  You have the ability to make donations from the fund and are not subject to minimum annual donations  DAFs are also characterized with low…, Donor Advised Fund (DAF, Private foundation, Setup Costs, Minimal Complex requires Legal and Accounting, Management Fees, Typically less than 1% Typically less than 1%, Administrative Responsibilities, None other than making periodic grants Depending on size regular board meetings accounting potentially hiring staff to maintain books, Typical Minimum Amount Recommended to Open, Typically $5000 Typically $250000, Value Used to Calculate Deduction for Noncash Donation, FMV for assets held for over one year FMV for publicly traded securities Cost basis for other appreciated assets, Tax Deduction for Cash as a Percent of Adjusted Gross Income, 60% 30%, Tax Deduction for Securities as a Percent of Adjusted Gross Income, 30% 20%, Annual Minimum Distributions, None 5% of assets, Excise Tax, None Typically 139% on Investment Income, Privacy, Donors and grantees can be kept confidential Requires detailed tax returns which are public records, Fund Lifespan, Varies many revert to the sponsor organization after the original donors or succeeding generations die Can live in perpetuity with the board named successors, Grant Recipients, 501(c(3 organizations only 501(c(3 organizations individuals (in need or for scholarships for example other charitable intentions, Investment Options, Limited depending on sponsor organization High degree of flexibility, Tax Filing, No annual tax filings Form 990-PF filed annually Sources Mesirow IRS NCFP Moss Adams Giving USA When considering if setting up a private foundation or a donor-advised fund is consistent with your charitable goals it is important to consider the pros and cons to both strategies and alternative options such as giving directly to a charity that is aligned with your values  Please discuss each of…, Published February 2024, Sources 1  https//wwwirsgov/charities-non-profits/private-foundations/tax-on-net-investment-income 2  https//wwwirsgov/charities-non-profits/private-foundations/private-foundation-excise-taxes 3  https//wwwncfporg/knowledge/how-do-donor-advised-funds-compare-with-private-foundations-and-other-vehicles/#~text=A%20private%20foundation%20is%20athe%20sponsor%20organization%20must%20approve 4  https…

Social Security retirement benefits are an essential part of our clients’ comprehensive financial plans Not only do these benefits provide for 40% of the average retiree’s income¹ but their unique characteristics cannot easily be replicated by another investment strategy or product, Social Security offers protection against risks that are otherwise difficult to hedge such as Longevity risk ‒ the risk outliving your nest egg Inflation risk ‒ due to the erosion of purchasing power of a dollar Credit risk ‒ the risk of bankruptcy or insolvency In order to determine how best to maximize your Social Security benefit it is important to first understand which types of benefits are…, Three types of Social Security benefits, There are three types of Social Security benefits that you should become familiar with Worker’s Benefit Spousal Benefit Survivor Benefit Most workers (excluding some government employees earn Social Security retirement income benefits by working at least 10 years The , Worker’s Benefit,  is affected by the worker’s annual income and the length of time in the workforce This benefit is typically stated as the “Primary Insurance Amount” – the monthly benefit payable at Full Retirement Age² Married individuals³ may also be eligible for a , Spousal Benefit, This is typically equal to 50% of the benefit paid to the primary worker at their Full Retirement Age In most cases if an individual is eligible for both a Worker’s Benefit (due to their own working years and a Spousal Benefit (due to their spouse’s lifetime earnings they must receive the larger of the two benefits However a Spousal Benefit can only be paid once the primary Worker’s Benefit has…, Survivor’s Benefit,  provides a surviving spouse with the larger of either of the two Worker’s/Spousal Benefits being received at the time of the first spouse’s death⁴, When to begin receiving benefits, Retirees face a complex decision about when to begin receiving their Social Security retirement income It is essential to consider all of the factors that affect this choice — these include having a full understanding of The benefits and drawbacks of “early” “full” and “delayed” start dates Household cash flow needs Longevity expectations The relationship between spouses’ lifetime earnings…, Benefit start date options Early Full Delayed, It’s assumed that retirees begin their Social Security retirement benefits at their Full Retirement Age (ages 66-67 However benefits can begin as early as age 62⁵ or be delayed until age 70 In these cases those receiving Social Security early have their monthly payments permanently reduced (as it’s expected that more payments will be received and those delaying benefits will have their monthly…, If cash flow allows longevity risk points towards waiting as long as you can, Most married couples may maximize their combined lifetime wealth by delaying at least one (if not both of their benefits until age 70 if their cash flow permits This is due to the longevity expectations of the Social Security program and the characteristics of Social Security’s Survivor’s Benefit By using software to project the lifetime value of the Worker’s Benefit or the Spousal Benefit we can…, The role of the Survivor Benefit, The Social Security Survivor’s Benefit is another compelling reason for (at least one spouse to delay filing for their Social Security benefit The Survivor’s Benefit provides a surviving spouse with the larger of either of the two Worker’s/Spousal Benefits being received at the time of the first spouse’s death In effect the Survivor’s Benefit is an extension of the higher earning spouse’s Social…, Age differences between spouses can influence when to take benefits, In some cases there is another benefit to postponing claiming one spouse’s Worker’s Benefit For example consider a married couple where the older spouse has a larger Worker’s Benefit than the younger spouse As this Worker’s Benefit will be paid beyond the older spouse’s death (as a Survivor’s Benefit it’s advantageous to delay the start of this income until the Worker’s age 70 (earning the…, When to take benefits for an unmarried individual, For an unmarried individual the primary determinant of whether they receive the most Social Security that they’re entitled to is their life expectancy Consider the nonmarried retiree choosing between beginning their benefits at age 62 their Full Retirement Age or their age 70 In this case the person with a life expectancy of age 77 or less would be better off beginning their benefit at age 62…, Published January 2025, Sources and Footnotes 1 1  https//wwwaarporg/retirement/social-security/questions-answers/income-replacement-ratehtml 2 Full Retirement Ages range from age 66 (for those born between 1943 and 1954 to age 67 (for those born in 1960 or after  Those born between 1955 and 1959 have a Full Retirement Age of between 66 and 67 3 Divorced individuals may also qualify for a Spousal Benefit based upon…, Worker’s Benefits , may be reduced by as much as 25%-30% (based upon the year of birth and increased by as much as 24%-32% (based upon the year of birth , Spousal Benefits,  may be reduced by 30%-35% (based upon the year of birth  There is no advantage to delaying , Spousal Benefits, 7  https//wwwssagov/planners/lifeexpectancyhtml  8 Assumes an average cost of living adjustment of 3% and a rate of return assumption of 3%

A common misconception is that not everyone needs an estate plan but estate planning is for everyone Whether you are beginning to build wealth or have not taken the time to put a plan into place it has become more important than ever to ensure that your assets and investments are organized titled correctly and formalized with an estate attorney, So where to start Estate planning begins with understanding your overall balance sheet the importance of titling your assets and what implications those factors will have upon your incapacity and death, Assets that transfer by beneficiary designation, Let’s begin by looking at retirement accounts and other assets that pass by beneficiary designation upon death These include IRAs or other qualified retirement plans Life insurance Annuities “Transfer on Death” accounts The owner of the accounts or policies should ensure they have properly named beneficiaries What if a beneficiary is not named or a minor is named Both would likely result in…, The importance of titling assets appropriately, With regards to assets that are outside of those listed above proper titling should be reviewed Are assets titled jointly individually in trust or another entity Titling of assets will drive how those funds will be managed and administered upon incapacity and death Consider the following – if assets are held jointly with your spouse upon one’s passing the assets would be held for the surviving…, Everyone needs an estate plan, Currently only individuals with estates worth more than $1399 million are subject to federal estate taxes in 2025¹  This limit is at an all-time high leading many to believe that a trust is unnecessary However there are many reasons outside of tax savings to utilize trust planning Some states have a separate state estate tax and the exemptions are significantly lower than the federal exemption…, What does a trust do, During one’s lifetime The grantor retains full power of the assets in the trust The trust is not treated as a separate tax entity for income tax purposes and The trust is revocable In the event the individual becomes incapacitated the named successor trustee would take over the administration of the trust assets including distributing funds to the individual his/her spouse and their dependents…, Published March 2025, 1  https//wwwirsgov/businesses/small-businesses-self-employed/estate-tax 2 https//illinoisattorneygeneralgov/Page-Attachments/InstructionFactSheet2023pdf 3  https//smartassetcom/estate-planning/minnesota-estate-tax     

Within personal finance diversification is most often understood as the practice of spreading investments across various asset classes in order to mitigate overall portfolio risk However there is another important form of diversification that often gets overlooked Strategically allocating assets across accounts with varying tax treatments can help optimize tax efficiency reduce risk provide tax…, Tax treatment for investment accounts, Well first review the tax treatments for the most common investment accounts to highlight the beneficial impact of tax diversification strategies, Taxable investment accounts,  These accounts offer no tax deferral for contributions and you are subject to taxes on dividends interest income and capital gains realized from the sale of investments at differing tax rates directly related to the investors income level, Tax-deferred retirement accounts , Contributions to accounts like Traditional IRAs or 401(ks are often made with pre-tax dollars which helps reduce your taxable income However any withdrawals will be taxed as ordinary income Upon reaching a specific age these accounts are also subjected to Required Minimum Distributions (RMDs These withdrawals could lead to significant tax liabilities if the account is large enough, Roth IRAs and Rother 401(ks, Contributions to Roth accounts are made with after-tax dollars meaning withdrawals in retirement including earnings are typically tax-free under specific parameters, Health Savings Accounts (HSAs, Contributions to HSAs have triple tax benefits in that contributions are tax-deductible the account grows tax-free and subsequent withdrawals for qualified medical expenses are tax-free, Tax diversification strategies, With guidance from your tax professional Mesirow Wealth Advisors often look to utilize the following tax diversification strategies as part of your overall financial plan, Maximize contributions to the various account types, Take full advantage of the previously mentioned tax-advantaged accounts by maximizing contributions based on eligibility income limitations and financial ability This allows you to benefit from the unique tax advantages offered with each account type while providing flexibility and protection against potential changes to existing tax laws, Investment allocation, Strategically place investments depending on their specific characteristics between taxable and tax-deferred accounts to help reduce your  overall tax burden and potentially increase after-tax returns over the long run Tax-efficient investments such as stocks with qualified dividends and index funds could be held in taxable accounts while tax-inefficient investments such as actively- managed…, Roth conversions, Evaluate the potential benefits of converting assets from tax-deferred accounts to Roth accounts While Roth conversions are taxable events in the year they occur they can be used to reduce future RMD amounts and future tax liabilities when strategically executed in lower-income years, Tax-loss harvesting, Regularly review taxable accounts for opportunities to harvest tax losses by selling investments that have declined in value and reinvesting in a similar investment to maintain market exposure Tax-loss harvesting can help offset capital gains and reduce taxable income enhancing overall tax efficiency Our Mesirow Wealth Advisors regularly practice this technique when managing client portfolios, Deliberate withdrawal strategies, Maintain flexibility when making withdrawals from taxable tax-deferred and tax-free accounts to minimize taxes generated when supplementing income in retirement Factors such as RMDs the current market environment other existing sources of income and expense classification should all be considered when determining what accounts to withdraw from One example would be utilizing your HSA to cover…