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Stay abreast of the stories and headlines that may impact you.

Nest Egg

By Soutas Financial | May 29, 2020 | Comments Off on Nest Egg
Fresno Financial Advisor-Nest Egg

You made it. Years of hard work, investing, planning, and now you’re here. The long-awaited reward you spent a lifetime looking forward to. But what now? After years of growing a nest egg, now you may want to manage it, use it to fund your dreams. Make it last as long as you need it, and leave some for those you love. What do you do?

Wall Street continues to be uncertain, and some conservative options have dropped though the floor. How do you maintain opportunities for growth and reduce risk of loss or market changes? That’s where we come in. We are financial professionals. From investments and insurance products, to tax reduction strategies and guaranteed retirement income you cannot outlive, provided by the claim paying ability of insurance companies. You’ve worked a lifetime to get here.

Let us help you enjoy it to the fullest.

For a complimentary consultation, simply contact us today. 559.230.1648

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Remember When Life was Simpler?

By Soutas Financial | May 28, 2020 | Comments Off on Remember When Life was Simpler?

CLICK HERE FOR A FREE 20 MINUTE VISIT

Remember when life was simpler? When things didn’t move quite so fast, and the world didn’t seem so complex? Remember that? We do. And as the world around us has continued to speed up, becoming more complicated, and still a bit uncertain, we have managed to keep things simple, providing sound, easy to understand financial advice and customized road-maps for the road ahead.

From tax reduction strategies, investment advice, and guaranteed retirement outcome you cannot outlive, backed by the claims paying ability of insurance companies.

We can be your single point of contact. A single call, a voice you recognize well, and a partner who can be by your side for the entire journey.

We can’t stop the world around us, but we can help ensure you’re prepared for what’s to come.

We’re Soutas Financial & Insurance Solutions Inc.

Call to reserve your seat at our next investor’s workshop. 559.230.1648

Fresno Financial Advisor News:Your Money

By Soutas Financial | May 25, 2020 | Comments Off on Fresno Financial Advisor News:Your Money

The federal minimum wage is set at $7.25 an hour, a rate that has not increased in more than 10 years, not even to keep pace with the cost of living. Even so, the national average minimum wage is $11.80, but only because some states have increased their minimum floor.1 In 2020, another 24 states are set to increase their minimum wage for workers, ranging from $8.56 to $15.00 an hour.2

While you may work the same job at the same company as another individual, but in another state with a similar cost of living, you could earn substantially less money. That means a couple with a stay-home parent in which the income earner works full time for the federal minimum wage, the household income would be far below the federal poverty level for a family of three ($21,720 in 2020).3

Regardless of how much income we earn, we each must learn to manage our own money — living within our means and controlling our spending habits and whatever indulgences cause us to go off course. It also means insuring against the potential of large losses from which we may have difficulty recovering financially. If we can help you figure out your insurance needs or help you address them, please let us know.

Without a more universal set of minimum wage standards, the country may continue down the path of greater disparity between poor and wealthy states. It is perhaps for this reason that the concept of a universal basic income is making a resurgence after being historically considered several times. Back in the late 1700s, Thomas Paine was a proponent to help ensure founding families each had an equal shot at success. In the 1960s, President Nixon proposed a guaranteed annual income of $1,600 for families to ensure children would not not grow up in poverty and risk suffering from the subsequent long-term impacts.4

More recently, presidential candidate Andrew Yang proposed a universal basic income of $1,000 a month. The strategy is to bolster today’s low-income, poor and homeless populations; to help young people with student debt burdens; and to try to reduce the wealth gap between middle- and upper-income classes.5

Without better solutions, the U.S. could fall further into a widening income gap where the rich continue to get richer while the poor get poorer — or at least fall further and further behind the curve. This could include retirees who no longer earn a paycheck.

Remember that Social Security income is your income. It’s called a retirement program because you’re entitled to it; you and/or your spouse contributed money to the program throughout your careers (even if your career was as a homemaker, you may still be eligible to collect spousal benefits). However, even though you’re entitled to it, you won’t necessarily receive all of it, because a portion may be deducted to pay for Medicare premiums. If you have other sources of income, such as a pension, IRA withdrawals, part-time work, interest and dividends, you may have to pay income tax on your Social Security payments. You can elect to have income taxes deducted from your Social Security benefits before they’re paid out.6

Fresno Financial Consultant Takeaways

As your Fresno financial advisor we thought this was a good takeaway. The federal minimum wage is set at $7.25 an hour, a rate that has not increased in more than 10 years. While you may work the same job at the same company as another individual, but in another state with a similar cost of living, you could earn substantially less money. Regardless of how much income we earn, we each must learn to manage our own money — living within our means and controlling our spending habits and whatever indulgences cause us to go off course.

Soutas Financial & Insurance Solutions Inc. your Fresno financial planner is committed to helping take the complexity out of retirement planning. By using a variety of insurance and investment products such as trusts, probates, charitable giving, estate planning, or tax-efficient strategies, we can help you develop an overall retirement income strategy specific to you and your family. We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to get your retirement plans on track for success!

Other Fresno Financial Advisor Articles

Soutas Financial & Insurance Solutions Inc.
333 W. Shaw Avenue Suite 106 Fresno, CA 93704
(559) 230-1648
Soutas.com

Content prepared by Kara Stefan Communications.

1 Stacey Vanek Smith and Cardiff Garcia. NPR. May 16, 2019. “The Real Minimum Wage.” https://www.npr.org/2019/05/16/723947780/the-real-minimum-wage. Accessed Feb. 7, 2020.

2 Paycor. Dec. 6, 2019. “Minimum Wage By State And 2020 Increases.” https://www.paycor.com/resource-center/minimum-wage-by-state. Accessed Feb. 7, 2020.

3 Kimberly Amadeo. The Balance. Feb. 5, 2020. “Federal Poverty Level Guidelines and Chart.” https://www.thebalance.com/federal-poverty-level-definition-guidelines-chart-3305843. Accessed Feb. 7, 2020.

4 Knowledge@Wharton. Jan. 17, 2020. “Can Universal Basic Income Work?” https://knowledge.wharton.upenn.edu/article/universal-basic-income/. Accessed Feb. 7, 2020.

5 Ibid.

6 Emily Brandon. U.S. News & World Report. Jan. 21, 2020. “How Much You Will Get From Social Security.” https://money.usnews.com/money/retirement/social-security/articles/how-much-you-will-get-from-social-security. Accessed Feb. 7, 2020.

Our firm is not affiliated with the U.S. government or any governmental agency.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice. Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Soutas Financial & Insurance Solutions, Inc are not affiliated companies. California Insurance License # OK48173

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference. 628462

Fresno Financial Advisor News: Inheriting a 401(k) Plan

By Soutas Financial | May 25, 2020 | Comments Off on Fresno Financial Advisor News: Inheriting a 401(k) Plan

Within the scope of an investment portfolio, the commonplace 401(k) may seem to be a simplistic account. But it’s not, especially when it comes to estate and legacy planning. The named beneficiary on the plan will inherit your 401(k) regardless of your will’s instructions. And from there, a spectrum of various choices emerge based on a plethora of different variables.

First off, you can’t name anyone other than your spouse as the beneficiary unless you get your spouse to sign off on a form that says it’s OK. This rule is designed to protect a spouse from a partner who is considering a divorce and tries to put all of his or her financial accounts under his or her own name before announcing this intention.1

If you inherit a 401(k) from your spouse, what you decide to do with it and the subsequent tax impacts may depend largely on your age and whether or not your spouse had started taking required minimum distributions (RMDs) before he or she died. In general, you may (1) choose to leave the money in the plan and take distributions; (2) transfer the funds to an inherited IRA; or (3) transfer the money to your own IRA.2

If you are a non-spouse beneficiary of a 401(k) plan, the rules have changed recently. In late 2019, Congress passed legislation that limited a strategy called the “stretch IRA.” This strategy was particularly popular among people who had saved a substantial amount of money in their retirement accounts. It used to be that this type of beneficiary could potentially take distributions from the account throughout decades, based on the beneficiary’s age and life expectancy.3 This meant that those assets could continue growing tax-deferred indefinitely.

Now, as a result of the SECURE Act, most new non-spouse beneficiaries must fully distribute all the account’s inherited assets in 10 years or fewer after the death of the original account holder. If an account owner had previously set up a trust to be beneficiary of a qualified account prior to the SECURE Act, the new rules could lead to undesirable results. If you have such a trust as the account beneficiary, it’s important to have it reassessed to make sure the language doesn’t negatively impact the trust’s beneficiaries or create a tax disadvantage.4

There are more factors related to inheriting a 401(k) plan than just the recent SECURE Act provisions, including whether or not the account owner had reached the required date to start taking RMDs before death. The exact date depends on whether the account owner was still working at the company, had retired before age 70 ½ or was working at a different company.5

Suffice it to say that many things related to an inherited 401(k) are complex. And, while there are effective strategies, they can be complex, too. For example, you could decide to take advantage of spousal beneficiary strategies instead of naming a non-spouse. This might include the surviving spouse gifting the residual RMDs to other heirs or contributing that income to a taxable account and naming those heirs as beneficiaries upon her death, which may offer a strategic tax advantage.6

In short, estate and legacy planning is complicated business — even for something that seems straightforward, like a 401(k) plan. We can work with your estate planning and tax professionals to help you address these issues.

Fresno Financial Advisor Takeaways

Soutas Financial your Fresno financial planner would like to remind you about these points of interest. What do you do when you inherit a 401(k) from your spouse? If you inherit a 401(k) from your spouse, what you decide to do with it and the subsequent tax impacts may depend largely on your age and whether or not your spouse had started taking required minimum distributions (RMDs) before he or she died. In general, you may (1) choose to leave the money in the plan and take distributions; (2) transfer the funds to an inherited IRA; or (3) transfer the money to your own IRA.2 A great many things related to an inherited 401(k) are complex. And, while there are effective strategies, they can be complex, too. Make sure to seek financial advice before pursing a course of action.

Soutas Financial & Insurance Solutions Inc. your Fresno financial planning consultant is committed to helping take the complexity out of retirement planning. By using a variety of insurance and investment products such as trusts, probates, charitable giving, estate planning, or tax-efficient strategies, we can help you develop an overall retirement income strategy specific to you and your family. We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to get your retirement plans on track for success!

Other Fresno Financial Advisor Articles

Soutas Financial & Insurance Solutions Inc.
333 W. Shaw Avenue Suite106 Fresno, CA 93704
(559) 230-1648
Soutas.com

Content prepared by Kara Stefan Communications.

1 Rebecca Lake. SmartAsset. Oct. 22, 2019. “A Guide to Inheriting a 401(k).” https://smartasset.com/retirement/inherited-401k. Accessed Feb. 24, 2020.

2 Ibid.

3 Greg Iacurci. CNBC. Dec. 17, 2019. “Lawmakers are killing this popular retirement tax break for the wealthy.” https://www.cnbc.com/2019/12/17/lawmakers-may-kill-this-popular-retirement-tax-break-for-the-wealthy.html. Accessed Feb. 24, 2020.

4 Alessandra Malito. MarketWatch. Jan. 9, 2020. “Inheriting a parent’s IRA or 401(k)? Here’s how the Secure Act could create a disaster.” https://www.marketwatch.com/story/inheriting-a-parents-ira-or-401k-heres-how-the-secure-act-could-create-a-disaster-2019-12-26. Accessed Feb. 24, 2020.

5 Rachel L. Sheedy. Kiplinger. May 30, 2019. “Inherited 401(k)s: 6 Questions Heirs Need to Ask.” https://www.kiplinger.com/slideshow/retirement/T001-S004-inherited-401k-6-questions-heirs-need-to-ask/index.html. Accessed Feb. 24, 2020.

6 Rhian Horgan. Nasdaq. Jan. 30, 2020. “2 IRA Changes to Consider Right Now, Thanks to the SECURE Act.” https://www.nasdaq.com/articles/2-ira-changes-to-consider-right-now-thanks-to-the-secure-act-2020-01-30. Accessed Feb. 24, 2020.

Our firm is not affiliated with the U.S. government or any governmental agency.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice. Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Soutas Financial & Insurance Solutions, Inc are not affiliated companies. California Insurance License # OK48173

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference. 628462

Fresno Financial Advisor News: Affordable Housing Crisis Challenges

By Soutas Financial | May 22, 2020 | Comments Off on Fresno Financial Advisor News: Affordable Housing Crisis Challenges
Fresno Financial Advisor News:  Affordable Housing Crisis Challenges
Fresno Financial Advisor News: Affordable Housing Crisis Challenges

There are several factors contributing to the current housing shortage in the U.S. For starters, low inventory of existing homes for sale has driven up the prices of available housing, leaving many first- and second-time homebuyers unable to afford to buy or trade up. Housing permits for new construction have risen throughout the past couple of years, but they haven’t kept pace with the formation of new households. And while the number of residential construction workers has increased to more than 800,000, the country is nearing full employment levels so contractors are finding it tough to add to their teams.1

Part of the employment problem is the slowdown in immigration due to the documentation and guest worker visa process, designed to permit only highly skilled legal immigrants into the country. As a result, both the construction and agricultural industries find themselves short-handed, further contributing to the housing crisis.2

Supply of available homes has been falling steadily in recent years. Some of the greatest hardships are found at the lower end of the market. The growing number of millennials who are looking for, and can afford, housing could lessen supply even more.3 The potential impact on renters is that a high percentage of their income is devoted to housing costs.4

Fortunately for retirees, more than 78 percent of households age 65 and older own their homes. Interestingly, after age 80 the home ownership rate drops and many become renters.5

The issue is so severe it has a line item among Democratic candidates vying for the presidential nomination this year. Bernie Sanders has proposed a $2.5 trillion initiative for the construction of affordable and mixed-income housing, as well as the preservation of existing housing. Joe Biden proposes investing $640 billion for housing throughout 10 years that would focus on strengthening existing programs.6

For budget hawks, Trump’s proposed 2021 budget, while unlikely to pass in its current form, calls for a 15 percent reduction in public housing. That would result in a total reduction of $8.6 billion from housing programs compared to current levels. The president’s plan includes stricter mandates for work requirements and a higher percentage of contributions toward rent for low-income program participants.7

Fresno Financial Consultant Takeaways

Fresno portfolio advisor– Soutas Financial appreciated these points:  There are several factors contributing to the current housing shortage in the U.S. , One of the reasons is because low inventory of existing homes for sale has driven up the prices of available housing, leaving many first- and second-time homebuyers unable to afford to buy or trade up. What does this mean for us? For budget hawks, Trump’s proposed 2021 budget, while unlikely to pass in its current form, calls for a 15 percent reduction in public housing. That would result in a total reduction of $8.6 billion from housing programs compared to current levels. The president’s plan includes stricter mandates for work requirements and a higher percentage of contributions toward rent for low-income program participants.

Soutas Financial & Insurance Solutions Inc. your Fresno retirement planning advisor is committed to helping take the complexity out of retirement planning. By using a variety of insurance and investment products such as trusts, probates, charitable giving, estate planning, or tax-efficient strategies, we can help you develop an overall retirement income strategy specific to you and your family. We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to get your retirement plans on track for success!

Other Fresno Financial Advisor Articles

Soutas Financial & Insurance Solutions Inc.
333 W. Shaw Avenue Suite106 Fresno, CA 93704
(559) 230-1648
Soutas.com

Content prepared by Kara Stefan Communications.

1 Roger Zellerites. Urban Land. Feb. 26, 2020. “Closing the Efficiency Gap in the U.S. Housing Affordability Crisis https://urbanland.uli.org/development-business/the-efficiency-gap-and-the-u-s-housing-affordability-crisis/. Accessed March 2, 2020.

2 Rebecca Rainey. Politico. Feb. 21, 2020. “Mulvaney: U.S. ‘desperate’ for immigrants.” https://www.politico.com/newsletters/morning-shift/2020/02/21/mulvaney-us-desperate-for-immigrants-785576. Accessed March 2, 2020.

3 Diana Olick. CNBC.com. Dec. 4, 2019. “Next year will be hard on the housing market, especially in these big cities.’’ https://www.cnbc.com/2019/12/04/harsh-housing-forecast-for-2020-especially-in-these-big-cities.html. Accessed March 17, 2020.

4 Jacob Passy. MarketWatch. Feb. 4, 2020. “Even the middle class is having trouble paying rent now.’’ https://www.msn.com/en-us/money/realestate/even-the-middle-class-is-having-trouble-paying-rent-now/ar-BBZDVi9. Accessed March 17, 2020.

5 Linda Yang. Joint Center for Housing Studies at Harvard University. 2018. “Housing America’s Older Adults.” https://www.jchs.harvard.edu/sites/default/files/Harvard_JCHS_Housing_Americas_Older_Adults_2018_1.pdf. Accessed March 2, 2020.

6 Georgia Krameria. The Real Deal. March 2, 2020. “Here’s how Bernie, Biden and the remaining presidential candidates would tackle housing crisis.” https://therealdeal.com/2020/03/02/heres-how-bernie-biden-and-the-remaining-presidential-candidates-would-tackle-housing-crisis/. Accessed March 2, 2020.

7 Niv Elis. The Hill. Feb. 14, 2020. “Housing advocates decry Trump budget cuts.” https://thehill.com/policy/finance/housing/484132-housing-advocates-decry-trump-budget-cuts. Accessed March 2, 2020.

Our firm is not affiliated with the U.S. government or any governmental agency.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice. Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Soutas Financial & Insurance Solutions, Inc are not affiliated companies. California Insurance License # OK48173

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference. 628462

Fresno Financial Advisor News: The Future of Transportation

By Soutas Financial | May 22, 2020 | Comments Off on Fresno Financial Advisor News: The Future of Transportation
Fresno Financial Advisor News:  The Future of Transportation
Fresno Financial Advisor News: The Future of Transportation

The United States is a very large, land-mass country. Yet, it offers few options in terms of coast-to-coast mass public transit, particularly compared to other developed countries. Europe’s countries tend to be smaller and their cities more dense, making them more transit-friendly. Asian countries made enormous government investments in urban rail networks just as their urban populations began to rapidly expand.1

In the U.S., however, many metropolitan transit systems are dated and overcrowded. The New York Metropolitan Transportation Council reports more than 6 million rapid rail trips and nearly 1 million suburban rail trips on any given weekday. One way to free up crowded subway platforms is to run more trains so there are fewer passengers on each train.2 This would require substantial investments to update the nation’s passenger railway system.

To add to the problem, auto traffic congestion, air pollution and fossil fuels are widely believed to contribute to our growing climate crisis. If there is a silver lining, it’s that the challenge of developing affordable and environmentally responsible transportation options has led to innovations that may help the U.S. develop high-speed rail options comparable to other developed countries.3

Recent market volatility presents a long-overdue reminder that investing is unpredictable and performance can be upended for any number of unexpected reasons. That’s why it’s important to diversify investments and consider companies with solid, long-term growth plans in viable industries. Growth is frequently tied to demand, and transportation offers the potential for long-term investments that respond to mass population needs in a sustainable and environmentally responsible manner. If this is a sector you’d like learn more about, we can help.

To date, the U.S. government has had little success in updating the country’s railway systems due to fiscal debt concerns. Now, the push for improved rail systems is coming from the private sector, including projects with the potential to connect Washington and New York City in one hour, a high-speed train network running from Orlando to Miami, and a high-speed line between Las Vegas and the greater Los Angeles area.4

The city of Lincoln, Nebraska, purchased 10 battery-electric, zero-emission public transit buses. This is part of its commitment to reduce greenhouse gas emissions by 100 to 160 tons per bus per year, as compared to traditional clean-diesel buses.5

Another mass transit project anticipating a mammoth facelift is the traditional American airport. In terms of updating infrastructure and accommodating future demand, the investment can’t come soon enough. According to the International Air Transport Association, the number of travelers passing through airports worldwide is expected to double, rising to 8.2 billion by 2037.6

Because people spend so much of their travel time arriving early for security purposes and waiting during layovers, the future airport is being reimagined as an “aerotropolis.” In other words, they will combine small, technology-enabled hubs with public spaces featuring waterfalls, gardens and walking paths, as well as a plethora of retail and restaurant options.7

Fresno Financial Planner Takeaways

Fresno financial planning is our utmost concern here at Soutas Financial and we thought these takeaways were worth mentioning again. The United States is a very large, land-mass country. Yet, it offers few options in terms of coast-to-coast mass public transit, particularly compared to other developed countries. If there is a silver lining, it’s that the challenge of developing affordable and environmentally responsible transportation options has led to innovations that may help the U.S. develop high-speed rail options comparable to other developed countries.

Soutas Financial & Insurance Solutions Inc. your Fresno portfolio advisor is committed to helping take the complexity out of retirement planning. By using a variety of insurance and investment products such as trusts, probates, charitable giving, estate planning, or tax-efficient strategies, we can help you develop an overall retirement income strategy specific to you and your family. We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to get your retirement plans on track for success!

Other Fresno Financial Advisor Articles

Soutas Financial & Insurance Solutions Inc.
333 W. Shaw Avenue Suite 106 Fresno, CA 93704
(559) 230-1648
Soutas.com

Content prepared by Kara Stefan Communications.

1 Jonathan English. City Lab. Oct. 10, 2018. “Why Public Transportation Works Better Outside the U.S.” https://www.citylab.com/transportation/2018/10/while-america-suffocated-transit-other-countries-embraced-it/572167/. Accessed Feb. 28, 2020.

2 Hitachi. 2020. “Key Strategies for Reducing Traffic Jams.” https://social-innovation.hitachi/en-us/think-ahead/transportation/key-strategies-for-reducing-traffic/. Accessed Feb. 28, 2020.

3 Trevor Bach. US News & World Report. Sep. 10, 2019. “U.S. Cities Play Catch-Up on High-Speed Rail.” https://www.usnews.com/news/cities/articles/2019-09-10/us-cities-play-catch-up-on-high-speed-rail. Accessed Feb. 28, 2020.

4 Ibid. 

5 Oil & Gas 360. Feb. 27, 2020. “Nebraska’s StarTran drives sustainability forward with 10 electric buses from New Flyer; celebrates arrival of first zero-emission bus to Lincoln.” https://www.oilandgas360.com/nebraskas-startran-drives-sustainability-forward-with-10-electric-buses-from-new-flyer-celebrates-arrival-of-first-zero-emission-bus-to-lincoln/. Accessed Feb. 28, 2020.

6 Honeywell. Bloomberg. 2020. “What’s the Next Hot Destination? The Airport.” https://sponsored.bloomberg.com/news/sponsors/features/honeywell/tbt/?adv=24625&prx_t=r3QFAtMA-AWCkPA. Accessed Feb. 28, 2020.

7 Ibid.

Our firm is not affiliated with the U.S. government or any governmental agency.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice. Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Soutas Financial & Insurance Solutions, Inc are not affiliated companies. California Insurance License # OK48173

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference. 628462

Fresno Financial Advisor News: The Coronavirus and Other Oddball Risks

By Soutas Financial | April 27, 2020 | Comments Off on Fresno Financial Advisor News: The Coronavirus and Other Oddball Risks

One of the reasons investing never gets boring is because it is an ever-changing, never-sleeping industry that presents new opportunities — and new risks — every day.

One of the most recent threats to the global business economy, and therefore investors, is the coronavirus and its far-reaching impact. China, home to much of the world’s manufacturing, has been hard hit by the epidemic. In its wake, travel has been one of the first casualties. This is bad news not just for tourists, but for the thousands of business representatives who fly in and out of the country each day. The virus outbreak among Chinese workers threatens business trade and supply chain production for markets throughout the world.1

The outbreak of coronavirus is but one example of the types of unexpected risks that can disrupt a wide variety of industries — and one example of why financial advisors recommend diversification. While all investments involve risks, there are additional risks associated with foreign investing, such as currency fluctuations, economic instability and political developments. Building an investment portfolio that includes uncorrelated asset classes can help defend against the wide range of both anticipated and unanticipated risks that investors face. We’re happy to review your portfolio to assess how much market risk you might be exposed to; just give us a call.

If you don’t think the coronavirus has impacted U.S. companies, think again. McDonald’s, Starbucks and H&M have all had to shutter stores in China. Disney closed its Shanghai and Hong Kong theme parks. The Marriott, Hyatt and Hilton hotel companies have suspended some operations in areas most affected by the virus. Carnival and Royal Caribbean Cruises have been forced to cancel scheduled voyages to help curb the spread from one country to another.2

The problem isn’t isolated to retail stores, either. Technology companies like Apple and Google have restricted employee travel either completely or only for “business-critical situations.” Additionally, General Motors, Honda and Nissan have suspended auto production.3

According to Wilbur Ross, the U.S. Secretary of Commerce, there is perhaps a silver lining to the crisis. In a recent interview, he intimated that if U.S. manufacturers returned many of their offshore operations to America, they could better control such risks.4

However, risk is risk — and it takes on many different guises, even domestically. Some investment analysts warn that political campaigns heading toward the November elections may be a primary source of market volatility throughout the year. The two major political parties appear as divided as ever with policies that offer both positive and negative components. Regardless of party affiliation, both offer platforms that seem likely to increase spending and expand our nation’s debt.

This dynamic is likely to stretch U.S. Treasury valuations even further, while the relationship between the Federal Reserve and the investment markets may continue to be strained. While the Fed altered monetary policy in 2019 to accommodate markets, there could be less wiggle room now to combat any further risks to the economy such as rising asset price inflation.5

And then there’s the problem of trade wars promulgated by aggressive 140-character tweets — an approach that tends to pain Republicans and Democrats alike, not to mention Wall Street.6

Fresno Financial Consultant Takeaways

As your Fresno financial advisor we thought this was a good takeaway. Investing never gets boring. One of the most recent threats to the global business economy, and therefore investors, is the coronavirus and its far-reaching impact. The virus outbreak among Chinese workers threatens business trade and supply chain production for markets throughout the world.1 If you don’t think the coronavirus has impacted U.S. companies, think again. McDonald’s, Starbucks and H&M have all had to shutter stores in China. Keep in mind that while the Fed altered monetary policy in 2019 to accommodate markets, there could be less wiggle room now to combat any further risks to the economy such as rising asset price inflation.5

Soutas Financial & Insurance Solutions Inc. your Fresno financial advisor is committed to helping take the complexity out of retirement planning. By using a variety of insurance and investment products such as trusts, probates, charitable giving, estate planning, or tax-efficient strategies, we can help you develop an overall retirement income strategy specific to you and your family. We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to get your retirement plans on track for success!

Content prepared by Kara Stefan Communications.

1 Franklin Templeton. Jan. 24, 2020. “Monitoring China’s Outbreak and Other Potential Market Shocks.” https://www.franklintempleton.ca/en-ca/investor/article?contentPath=html/ftthinks/common/blogs/monitoring-chinas-outbreak-and-other-potential-market-shocks.html. Accessed Feb. 5, 2020.

2 Sergei Klebnikov. Forbes. Jan. 28, 2020. “Coronavirus Hits Big Business: These Companies Are Cutting Operations And Restricting Travel To China As Disease Spreads. https://www.forbes.com/sites/sergeiklebnikov/2020/01/28/coronavirus-hits-big-business-these-companies-are-cutting-operations-and-restricting-travel-to-china-as-disease-spreads/#509d69381264. Accessed Feb. 5, 2020.

3 Megan Cerullo. CBS News. Jan. 30, 2020. “China coronavirus causing chaos for U.S. companies.” https://www.cbsnews.com/news/coronavirus-brings-business-operations-in-china-to-standstill/. Accessed Feb. 5, 2020.

4 BBC News. Jan. 31, 2020. “Wilbur Ross says Coronavirus could boost US jobs.” https://www.bbc.com/news/business-51276323. Accessed Feb. 5, 2020.

5 Sonal Desai. Franklin Templeton. Jan. 14, 2020. “On My Mind: Will the US Survive the Politics in 2020?” https://www.franklintempletonnordic.com/investor/article?contentPath=html/ftthinks/common/cio-views/on-my-mind-will-the-us-economy-survive-the-politics-in-2020.html. Accessed Feb. 5, 2020.

6 Ibid.

We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial or investment advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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Fresno Financial Advisor News: Baby Boomers Staying Home for Retirement

By Soutas Financial | April 20, 2020 | Comments Off on Fresno Financial Advisor News: Baby Boomers Staying Home for Retirement

In 1989, Harvard economists published a study concluding that as baby boomers aged out of the residential real estate market, there would be a glut of empty homes and prices would plummet.1 That clearly hasn’t happened yet, for a variety of reasons.

Economists didn’t account for boomers’ life expectancy extending so much longer. People are living more years in retirement and choosing to age in place instead of moving to retirement homes. About 63% of homeowners over age 55 say they plan to live out their life in their current home, and 37% plan at least one more move.2

Thanks in part to the lean lessons of the recession, people are also less inclined to “trade up” and place so much of their net worth into higher-priced real estate. The average duration someone lives in one house has increased from six years (before the 2008 crisis) to around 10 years.3

Economists also didn’t imagine another generation (millennials) would one day be larger than the baby boomers’. As millennials age, they are placing greater demands on the housing market. This crossroads of increased demand and low supply has caused home prices to increase substantially in quite a number of places in the country, particularly metropolitan areas where there are good-paying jobs.

Economists at a recent Real Estate Forecast Summit, sponsored by the National Association of Realtors, predicted real estate prices will continue to rise and asserted that a recession in 2020 was unlikely.4 In a separate forecast, Realtor.com calls for a continued shortage of existing homes, but a boon from new homebuilders. They say a contingent of millennials have skipped the traditional starter home and moved straight to midpriced, trade-up homes.5

Today’s new residential market has generated a new trend: January is the new April. Spring has traditionally been the most active buying season, but in 2019, January was the busiest month in many of the largest metropolitan markets, including Chicago, Dallas, Houston, Seattle, Atlanta, Denver and San Jose. Given this current trend, industry experts anticipate fewer homes for sale this spring.6

Fresno Financial Planner Takeaways

When it comes to Fresno retirement plan consultant Soutas Financial puts your future first. Don’t forget these great reminders: Economists didn’t account for boomers’ life expectancy extending so much longer. Thanks in part to the lean lessons of the recession, people are also less inclined to “trade up” and place so much of their net worth into higher-priced real estate. The average duration someone lives in one house has increased from six years (before the 2008 crisis) to around 10 years.3 Economists also didn’t imagine another generation (millennials) would one day be larger than the baby boomers’. As millennials age, they are placing greater demands on the housing market. Given this current trend, industry experts anticipate fewer homes for sale this spring.6

Soutas Financial & Insurance Solutions Inc. your Fresno retirement planning advisor is committed to helping take the complexity out of retirement planning. By using a variety of insurance and investment products such as trusts, probates, charitable giving, estate planning, or tax-efficient strategies, we can help you develop an overall retirement income strategy specific to you and your family. We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to get your retirement plans on track for success!

Content prepared by Kara Stefan Communications.

1 Paul Kupiec and Ed Pinto. Los Angeles Times. Jan. 5, 2020. “Are baby boomers ruining the housing market for everybody else?” https://www.latimes.com/opinion/story/2020-01-05/are-baby-boomers-ruining-housing-market. Accessed Jan. 9, 2020.

2 Ibid.

3 Ibid.

4 National Association of Realtors. Dec. 11, 2019. “Expect Continued Economic Growth, Slower Real Estate Price Gains and Small Chance for Recession in 2020, According to Group of Top Economists.” https://www.nar.realtor/newsroom/expect-continued-economic-growth-slower-real-estate-price-gains-and-small-chance-for-recession-in. Accessed Jan. 9, 2020.

5 Diana Olick. CNBC. Dec. 4, 2019. “Next year will be hard on the housing market, especially in these big cities.” https://www.cnbc.com/2019/12/04/harsh-housing-forecast-for-2020-especially-in-these-big-cities.html. Accessed Jan. 9, 2020.

6 Diana Olick. CNBC. Jan. 2, 2020. “Competition for housing is so high, the spring market is starting now.” https://www.cnbc.com/2020/01/02/competition-for-housing-is-so-high-the-spring-market-is-starting-now.html. Accessed Jan. 9, 2020.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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Fresno Financial Advisor News: Student Loan Debt Affects More Than Millennials

By Soutas Financial | April 17, 2020 | Comments Off on Fresno Financial Advisor News: Student Loan Debt Affects More Than Millennials

Common sense would suggest older workers have a much easier time saving than young adults. They are more likely to have already purchased a home, put kids through college and, by that point, are putting more money away for retirement.

A recent study by the Transamerica Center for Retirement Studies confirms this is true, but the difference isn’t as big as you might expect. The report shows 78% of baby boomers are saving for retirement, compared to 77% of Generation X and 71% of millennials. The numbers may be skewed by the fact that some baby boomers have already retired, but a 70-plus percent savings rate is pretty impressive for younger generations.1

The message appears to be getting through: Americans need to save more for retirement. It’s heartening to see younger adults making this a priority, especially since many are also saddled with college student loan payments. Regardless of what life stage you’re in, saving regularly is an important habit. If you’re wondering which types of savings or investment vehicles are appropriate for your particular circumstances, we can help. Please give us a call to schedule a consultation.

Another reason the millennial generation may be saving more is that they’ve been squeezed out of the market for buying a house.2 Home values have increased significantly in certain areas of the country, giving some potential first-time homebuyers time to focus their resources on getting out of debt and saving and investing for retirement. This could be a silver lining when you consider the advantages of compounding interest over many decades.

However, millennials aren’t the only ones juggling debt. Americans over age 60 have amassed a total debt of more than $3 trillion, mostly on mortgages. But this generation also owes nearly $100 billion on student loans,3 suggesting people close to or in retirement are co-signing loans for children or grandchildren, or even paying off loans on their own education later in life.

Note that one of the provisions included in the SECURE Act, passed in late 2019, allows for withdrawals up to $10,000 from college savings 529 plans to help repay student loans.4

Fresno Financial Advisor Takeaways

Fresno portfolio advisor – Soutas Financial appreciated these points: Common sense would suggest older workers have a much easier time saving than young adults. The message appears to be getting through: Americans need to save more for retirement. Another reason the millennial generation may be saving more is that they’ve been squeezed out of the market for buying a house.2 However, millennials aren’t the only ones juggling debt. Americans over age 60 have amassed a total debt of more than $3 trillion, mostly on mortgages. But this generation also owes nearly $100 billion on student loans,3 suggesting people close to or in retirement are co-signing loans for children or grandchildren, or even paying off loans on their own education later in life. Regardless of what life stage you’re in, saving regularly is an important habit.

Soutas Financial & Insurance Solutions Inc. your Fresno retirement planning advisor is committed to helping take the complexity out of retirement planning. By using a variety of insurance and investment products such as trusts, probates, charitable giving, estate planning, or tax-efficient strategies, we can help you develop an overall retirement income strategy specific to you and your family. We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to get your retirement plans on track for success!

Content prepared by Kara Stefan Communications.

1 Transamerica Center for Retirement Studies. Dec. 19, 2019. “19th Annual Transamerica Retirement Survey.” https://transamericacenter.org/retirement-research/19th-annual-retirement-survey#compendium. Accessed Jan. 9, 2020.

2 Lindsay Walker. Cronkite News. Jan. 8, 2020. “Despite slight uptick, millennials still face homeownership challenges.” https://cronkitenews.azpbs.org/2020/01/08/despite-slight-uptick-millennials-still-face-homeownership-challenges/. Accessed Jan. 9, 2020.

3 Angela Antonelli. Dec. 26, 2019. “When it comes to financial angst, boomers and millennials have more in common than they think.” https://www.marketwatch.com/story/when-it-comes-to-financial-angst-boomers-and-millennials-have-more-in-common-than-they-think-2019-12-24. Accessed Jan. 9, 2020.

4 Fidelity. Jan. 2, 2020. “The SECURE Act and you.” https://www.fidelity.com/learning-center/personal-finance/retirement/understanding-the-secure-act-and-retirement. Accessed Jan. 9, 2020.

We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial or investment advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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Fresno Financial Advisor News: Late Career Management

By Soutas Financial | April 13, 2020 | Comments Off on Fresno Financial Advisor News: Late Career Management

The number of workers older than 64 has increased threefold since 1989.1 And while working longer may be a marker of good health for some, it’s a necessity for others who need the income. As a result, we may need to rethink our idea of what retirement looks like in the 21st century.

Consider that working longer could be a problem if you’re relying on it as a retirement savings strategy. That’s because a 2018 study found that more than half of older U.S. workers, many of them mid- and late-career managers, were forced out of their jobs before they chose to retire.2 Working longer has a lot of advantages, such as the ability to save more money and to grow your assets and your Social Security benefit. Unfortunately, sudden job loss — compounded by the difficulty older workers experience finding new jobs — can cause serious financial damage.

If there is one thing we can count on in life, it’s that life is always changing. We encounter great joys and great challenges, and often it’s how prepared we are that helps us recover and persevere. As insurance professionals, we believe it’s important to be prepared for any type of change that may come your way. If we can help you devise an insurance strategy to help you plan for the income you need in retirement, please give us a call.

It used to be more common for people to retire on their own terms, and there may be a way we can get back to that. But it doesn’t mean bucking the system; it requires embracing change. That change, for many people, could mean working in the “gig economy” with a sideline business. Think about it. By the time you are in the latter stages of your career, you likely have more experience than the vast number of colleagues around you. How can you leverage that for independent income?

Today, more than a third of America’s workforce participates in the gig economy, whether full time or part time.3 Even if you do not have knowledge that translates into a sideline business as, say, a consultant, perhaps you’ve developed another skill that could provide you income. Are you a baker or a carpenter? Perhaps you could drive for a rideshare service or walk dogs in your spare time. Working for yourself comes with plenty of perks, such as accepting only the jobs you want and scheduling hours that work for you. Like it or not, the gig economy could be the defining work/life balance solution of this century.

Many people may be uncomfortable with the idea of changing jobs or careers late in the game. That is certainly understandable. But it’s important to remember that many retirees didn’t get to make that decision on their own. So imagine for a moment what you would do if you lost your job late in your career. Would you look for another job in your field? Would you consider starting your own business? Would you go in a completely different direction — perhaps pursue something you’ve always wanted to do?

Let’s say you don’t even need the income; you have plenty of money saved to retire on — you just don’t want to retire … yet. So what would you want to do? Taking time to consider this question could be instrumental in shaping the new, 21st century perspective on retirement.

And why not? Consider that you have a lifetime of experience — both in career and in life lessons learned. If you are in the latter stages of your career, it’s time you take charge by putting together a plan B — just in case.

You could consider your potential career change a gift to the next generation. Many Gen Xers and millennials now say the biggest obstacle in their career path is that more baby boomers are putting off retirement, so there’s little room for promotions to middle- and higher-level jobs.4

That’s a lot to think about. But perhaps the 21st century vision of retirement isn’t to stop working, but rather to pursue income-producing dreams.

Fresno Financial Consultant Takeaways

Fresno financial planning is our utmost concern here at Soutas Financial and we thought these takeaways were worth mentioning again. In our day, while working longer may be a marker of good health for some, it’s a necessity for others who need the income. As a result, it might be good for us to rethink our idea of what retirement looks like in the 21st century. Sadly, sudden job loss — compounded by the difficulty older workers experience finding new jobs — can cause serious financial damage. Many people may be uncomfortable with the idea of changing jobs or careers late in the game. That is certainly understandable. So what would you want to do? Consider that you have a lifetime of experience — both in career and in life lessons learned. If you are in the latter stages of your career, it’s time you take charge by putting together a plan B — just in case.

Soutas Financial & Insurance Solutions Inc. your Fresno portfolio advisor consultant is committed to helping take the complexity out of retirement planning. By using a variety of insurance and investment products such as trusts, probates, charitable giving, estate planning, or tax-efficient strategies, we can help you develop an overall retirement income strategy specific to you and your family. We have a strong team of professionals helping ensure you receive all the assistance you need not only in developing your retirement income strategy, but in maintaining it throughout your retirement. Contact us today at 559-230-1648 or visit us today at Soutas Financial to get your retirement plans on track for success!

Content prepared by Kara Stefan Communications.

1 Stef W. Kight. Axios. Nov. 16, 2019. “Special report: Retirement becomes more myth than reality.” https://www.axios.com/retirement-myth-reality-d64d1e74-df04-49b7-9629-2cab2609a917.html. Accessed Dec. 18, 2019.

2 Knowledge@Wharton. Dec. 3, 2019. “Forced Out of Your Job Mid-career? Here’s How to Prepare.” https://knowledge.wharton.upenn.edu/article/forced-job-mid-career-heres-prepare/. Accessed Dec. 18, 2019.

3 US Bank. 2019. “Understanding the expanding gig economy.” https://financialiq.usbank.com/index/landing-page/gig-economy.html?c3ch=Paid%20Social&c3nid=TW-21808397. Accessed Dec. 18, 2019.

4 Paul Davidson. USA Today. Nov. 7, 2019. “Millennials, Gen Xers to baby boomers: Can you retire so I can get a job promotion?” https://www.usatoday.com/story/money/2019/11/07/jobs-baby-boomers-older-workers-may-block-millennials-careers/4170836002/. Accessed Dec. 18, 2019.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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Our firm provides links to third-party articles in an effort to assist users in locating information on topics that might be of interest to them. Information presented has not been verified and is not guaranteed, nor can we attest to the accuracy of information provided. Linking to an article or website does not constitute a representation of the services offered by our firm, nor does it constitute an endorsement by our firm of the sponsors of the site or the products presented on the site. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation.