Currency for return   |   Latest MCM viewpoints   |   Contact us   |   Explore currency solutions, US dollar underperforms all G10 currencies, US dollar underperformed all constituents of the G10 in the fourth quarter on a dovish Fed along with relatively soft inflation prints While interest rates were left unchanged at the FOMC meeting in December the dot projection update indicated 75bps of rate cuts next year as Powell noted discussions around the timing and magnitude of the cuts While subsequent Fed speakers attempted to push back…, EUR |, Euro depreciated against most developed currencies in Q4 trailing G10 currencies save the weaker US and Canadian dollars The ECB left rates on hold at 45% and moved the timing of the end of the PEPP reinvestments forward to the end of 2024 while emphasizing that the council did not discuss rate cuts at all and that market expectations of rate cuts were premature The most recent Eurozone flash…, GBP |, Sterling landed in the middle of the G10 this quarter outpacing the US and Canadian dollars while slightly outperforming Euro Recent data was primarily dovish with employment falling 13K pay growth decelerating at a faster pace than expected core inflation dropping to 51% YoY and GDP contracting by -03% MoM in October The BoE kept rates at 525% while promoting a hawkish bias through its minutes…, JPY |, Yen landed in the upper half of the G10 trailing only Swiss franc and Swedish krona Despite the BOJ standing pat on rates and delivering dovish commentary market assumptions tilted towards a policy change signaled by Governor Ueda’s comments that policy management would get more challenging in 2024 The BoJ redefined 10% as a loose upper bound rather than a rigid cap on their yield control Short…, AUD |, Australian dollar was a middling performer in the G10 in the fourth quarter The RBA hiked rates by 25bps to 435% in November although their guidance reflected a more data driven approach going forward Inflation printed at 54% YoY for Q3 a bit higher than consensus Australian dollar found support late in the year through improved risk sentiment as risk assets gained in December to end the year, CAD |, Canadian dollar weakened only outperforming the weaker US dollar in the G10 The BoC held rates steady at its policy meetings noting that the economy was no longer in excess demand and thus reducing inflationary pressures Annual inflation came in unchanged at 31% YoY for November although consensus was lower at 29% BoC Governor Macklem reiterated that it was still too early to consider cutting…, CHF |, Swiss franc outperformed the rest of the G10 ending the year as the highest performer in 2023 The SNB kept rates unchanged at 175% throughout the quarter noting that inflation will continue to be monitored to ensure price stability Inflation slowed to 14% YoY in November although higher electricity prices and rents are risks for increasing prints in the future, EM |, Emerging market currencies gained overall as the MSCI Emerging Markets Currency Index appreciated over 4% this quarter With US dollar performing poorly over the quarter emerging market currencies were able to gain ground as the outlook for lower interest rates increased risk appetite TABLE 1 USD-BASED AS OF DECEMBER 31 2023    , FX Rate, Change 3M %, Change YTD %, EUR-USD 110465 434% 350% GBP-USD 12748 444% 598% USD-JPY 14098 585% -641% AUD-USD 068235 573% 062% USD-CAD 13186 253% 276% USD-CHF 084165 869% 993% Source WM/Reuters Source WM/Reuters Currency for return Currency Alpha Mesirow Currency Management’s (MCM Currency Alpha strategies all suffered losses this quarter The Emerging Markets Currency Alpha and the Systematic Macro strategy end the year…, Explore currency solutions, Passive and Dynamic Risk Management,       Customized solutions to manage unrewarded currency risk in international portfolios Learn more, Currency for Return,       Strategies that aim to profit from short and medium-term moves in the currency market  Learn more, Fiduciary FX,       Trading solution for asset managers and owners with focus on reducing transaction costs improving transparency and enhancing efficiency Learn more 1 The GVI is an internal proprietary model utilizing one month at-the-money (ATM volatility for G10 currencies including crosses plus BIS liquidity report weightings

Section 529 College Savings Plans — commonly referred to as simply “529 plans” — were introduced in their current form in 2001 Traditionally these plans have been used by families to save and invest for their children’s and grandchildren’s college educations  However legislative reform over the last decade has impacted how 529 plans can be used as an educational funding vehicle, 529 plan basics, 529 plans are investment accounts administered by a mutual fund provider insurance company or bank Each plan is sponsored by a state and some states sponsor more than one plan Families can select a 529 plan from any state regardless of their residence or the location of the school their student attends The primary advantage of a 529 plan is their significant tax benefits, Tax reduction,  , —, In some cases a single contribution to a 529 plan can reduce a family’s state income taxes federal income taxes and federal estate taxes, Tax-free withdrawals,  , —, 529 plans provide for tax-free withdrawals of principal and earnings when they are used for “qualified” education expenses such as college tuition room and board computers fees or for “qualified” tuition for kindergarten through 12th grade (Taxes and tax penalties may apply to non-qualified withdrawals, Assets not included in the owner’s estate,  , —, While these accounts are typically owned by a parent or grandparent (owners retain control of investment decisions and have the sole ability to make withdrawals assets are removed from the account owner’s estate when calculating federal estate taxes, Flexibility to exceed annual gift exclusion,  , —, Parents and grandparents are also able to exceed the annual gift tax exclusion amount (currently $18000 by “super funding” up to five years of contributions in a single year, State tax benefits,  , —, Many states (including Illinois provide state tax benefits for contributions to 529 plans For example Illinois provides a state tax deduction for contributions to an Illinois-sponsored 529 plan (up to $10000 for single taxpayers and $20000 for those married filing joint returns, Using a 529 plan for K-12 tuition, There are notable differences in what is included as a “qualified” expense for primary and secondary school costs versus college costs Qualified K-12 withdrawals can only be used for school tuition (not books computers or other fees Withdrawals for educational camps or other enrichment programs are not qualified and may also be subject to taxes and tax penalties, Caution Many states have not updated their tax codes, While withdrawals for K-12 tuition may be exempt from federal taxation many states have not updated their tax codes to provide for the same tax treatment Additionally states may not have updated the guidelines for their own state-sponsored 529 Plans For example as of this writing Illinois’s tax code has not been modified to treat K-12 withdrawals as a “qualified” expense A withdrawal from…, Caution Don’t overlook the power of tax-deferred growth, One of the most powerful benefits of 529 plans is their ability to defer taxation on investment growth over longer-term timeframes In most cases this tax deferral will provide the greatest benefit when used for college costs For families who have yet to accumulate sufficient assets for their college goals it may be most efficient to use their 529 plans to target college costs and to use other…, 529 ABLE accounts, TCJA changed the way that families can contribute to a 529 ABLE account As of January 1 2018 529 plan assets can be rolled over into a 529 ABLE account on a tax-free basis Like 529 College Savings Plans 529 ABLE accounts provide for tax-free withdrawals of principal and earnings when used for qualified expenses These accounts are available for disabled individuals and qualified expenses include…, Next steps, We understand that many of our clients’ investment objectives include providing for their children’s educations and being certain that disabled family members have access to appropriate financial resources As we monitor the evolution of the 529 College Savings Plan and the 529 ABLE programs we will respond to the changing regulatory landscape to assure our solutions are relevant to each household…, Published March 2025, Mesirow does not provide legal or tax advice Past performance is not indicative of future results The views expressed above are as of the date given may change as market or other conditions change and may differ from views express by other Mesirow associates This is not a solicitation to buy or sell the securities mentioned Do not use this information as the sole basis for investment decisions it…

529 plans have emerged as a powerful tool for families planning future education expenses These specialized savings accounts were introduced by Congress in 2001 and offer a unique combination of tax advantages investment growth and flexibility making them an ideal choice for families and individuals looking to invest in the future of education, Investments in a 529 plan grow tax-free meaning that any investment income or capital gains will not be taxed as long as withdrawals are used for qualified education expenses While there isnt a federal tax deduction for contributions many states offer tax deductions or credits on state income tax for contributions to their states 529 plan Its important to understand the specifics of funding…, Ways to fund 529 plans, Funding a 529 plan can start with as little as a few dollars and grow substantially over time thanks to the power of compounding interest and strategic contributions, Consistent contributions,  Like any long-term investment 529 plans thrive on consistency Regular scheduled contributions can turn modest sums into significant savings thanks to the compound interest effect Setting up automatic transfers from a checking or savings account ensures you stay on track without thinking about it each month, Gift contributions,  Transform birthdays holidays and graduations into opportunities for educational investment 529 plans often allow for gift contributions which means relatives and friends can contribute directly to your or your childs future education, Lump-sum contributions,  Windfalls tax refunds or bonuses present a golden opportunity to boost your 529 plan balance In 2025 you can gift up to $19000 per recipient without those contributions counting toward your lifetime gift tax exemption So if you have three kids and three 529 plans and are a single parent you can contribute $19000 each or $57000 total in a year without having to report those contributions to the…, What can 529 plans be used for, The timing of distributions from a 529 plan is crucial to ensure they align with the payment of qualified education expenses To avoid penalties and taxes 529 distributions must be used for qualified expenses in the same tax year the expenses are incurred Qualified Expenses include Tuition and fees for the total amount of college or vocational school tuition Some states also allow K-12 tuition for…, How can you make withdrawals, When its time to pay for education expenses you have two primary options for making payments from your 529 plan Direct payment Many 529 plans allow direct payment to the educational institution Direct payments simplify the process and ensure the funds are used for qualified expenses Reimbursement If youve already paid out-of-pocket for qualified expenses you can reimburse yourself from the 529…, Managing leftover funds, There are several strategies for managing leftover funds in a 529 plan each with its implications, Change the beneficiary,  The flexibility of 529 plans allows for the beneficiary to be changed to another family member such as a sibling cousin or even the account holder themselves for further education pursuits, Transfer to a Roth IRA,  Effective January 1 2024 529 account funds may be transferred to a Roth IRA if the account has been maintained for at least 15 years and the amount being transferred was contributed at least 5 years prior The Roth IRA also must be that of the 529 accounts designated beneficiary since 529 plans are considered part of the beneficiarys estate While the aggregate transfer amount is capped at $35000…, Non-qualified withdrawals,  You can make non-qualified withdrawals but these will be subject to income tax and a 10% penalty on the earnings portion of the withdrawal This option should be the last resort A 529 plan is a versatile and beneficial tool for financing education but maximizing its benefits requires understanding and strategic planning By carefully managing contributions timing distributions correctly and wisely…

On behalf of the firm we are pleased to share that we have deepened our partnership with Women Employed (WE through support for WE’s Summer Leadership Program alongside two family foundations WE is a Chicago nonprofit that has worked to improve the economic status of and remove barriers for women since 1973 At Mesirow we prize the dynamic evolution of a workplace that values diverse thought and…

Raising or caring for a loved one with special needs comes with unique challenges including financial planning This guide explores the essential aspects of financial planning for individuals with disabilities We delve into navigating public benefits legal tools like Special Needs Trusts investment strategies and insurance planning By understanding these areas you can ensure your loved one…, Special needs planning defined,  , Special needs planning refers to the process of preparing for the financial and care needs of individuals with disabilities or special needs This planning ensures that these individuals receive the necessary support throughout their lives without jeopardizing their eligibility for government benefits  A comprehensive plan for an individual with special needs will include consideration for things…, Eligibility for public benefits , Public benefits are a resource that may be available to the individual with special needs These benefits are either “means-tested” or “non-means-tested” , Means-tested benefits, include benefits such as Supplemental Social Security (SSI Medicaid VA Aid and Attendance and Subsidized Housing As means-tested benefits these are subject to asset limits income limits or both , Non-means-tested benefits, include benefits such as Social Security Disability Insurance (SSDI Medicare and VA Compensation With these benefits there are no asset or income limits  Here’s the catch with the means-tested benefits — if you have over $2000 in assets as a single individual with disabilities or $3000 in assets as a couple you are ineligible to receive SSI Assets can include income of a spouse in the household…, Legal needs Setting up a Special Needs Trust, A Special Needs Trust (SNT allows money and other assets to be held in trust for the benefit of a person who is receiving (or may in the future receive assistance from a means-tested public assistance program without having those assets counted toward the program’s asset limits (and thus disqualifying the beneficiary The hallmark of a SNT is that distributions can only be made if they supplement…, ABLE accounts and investment planning , In addition to Special Needs Trusts Achieving a Better Life Experience (ABLE accounts are another useful planning tool that can help provide assets for a special needs individual ABLE accounts are tax-advantaged accounts that can be used to save for qualifying disability-related expenses  The first $100000 of contributions into an ABLE account will not count against the means-based benefits such…, Example 1, John is an ABLE account owner and works for a company that does not provide a retirement plan His income in 2025 is $50000 Since he does not participate in an employer-plan his account can exceed the Annual Contribution limit of $19000 by $14580 , Example 2, Angela is an ABLE account owner and works for a company that does not provide a retirement plan Her income in 2025 is $10000 Since she does not participate in an employer-plan her account can exceed the Annual Contribution limit of $19000 to $10000, Investment planning, Investment goals as part of the overall financial plan may be different for individuals with special needs than those without special needs Things to consider include  The individuals age Level of need and how that may change over time Time horizon for when the individual may need to begin accessing the funds Those with longer time horizons and with greater opportunities to make income will not…, Insurance needs , A comprehensive special needs plan looks beyond when the parent or guardian will no longer be around Life insurance can provide that peace of mind knowing that the individual will have access to assets even after the parent passes away and funds from the parent’s employment are no longer available Policies will often be used to fund a Special Needs Trust upon the policyholder’s passing This can…, Putting it all together , Holistic comprehensive planning is essential for individuals with special needs Building a trusted team of advisors can provide a peace of mind that the individual will be taken care of even after the parents are no longer around to help If you have a family member with special needs your Mesirow Wealth Advisor will be happy to help you create a plan that meets your needs   Published January 2025, https//wwwforbescom/sites/sergeiklebnikov/2023/04/30/special-needs-financial-planning-smart-advice-for-families-coping-with-disabilities/, https//wwwamericanbarorg/content/dam/aba/publications/probate_property_magazine/v23/2009-aba-rpte-pp-v23-4-july-august-issuepdf, https//wwwablenrcorg/what-is-able/what-are-able-acounts/, https//wwwillinoisablecom/, https//wwwspecialneedsallianceorg/the-voice/your-special-needs-trust-snt-defined-2/

There have been many times in our nation’s history when unforeseen circumstances or economic shifts have created significant change Although the history books have not yet been written on what we are all going through now it is probable that for many of us changing circumstances are impacting both short- and long-term priorities, With that in mind now may be a good time to take a moment to stop think and review where you are where you are going and what it will take to get there In other words now is the perfect to time to go back to basics and review your financial plan against potential changing life goals Needs change over time and often life events trigger the need to take action Listed below are some examples of some…, Life Event, Potential actions to take, Plan a wedding, Update account beneficiaries and successor trustees Determine life insurance needs and recommend appropriate solutions Confirm account registrations are properly titled, Purchase a home , Review mortgage and home equity line financing alternatives Understand the need for comprehensive property and casualty insurance Review personal umbrella liability policy terms and coverage, Expecting a child or grandchild, Develop and implement a college savings or gifting strategy Understand the benefits and drawbacks of 529 College Savings Plan accounts Review life insurance coverage to account for growing families Work with outside advisors to ensure estate planning reflects changing objectives, Off to college, Understand the filing requirements for FAFSA/CSS financial aid profiles Prepare an asset spending plan to minimize taxes and maximize financial aid eligibility Discuss medical power of attorney college-provided health insurance and the other alternatives available to full-time students, Change jobs, Understand workplace retirement and health benefit packages (including employer retirement matching or profit sharing contributions health coverage disability and long term care insurance Establish 401(k deferrals and select new investment instructions Consider options for previous employer’s retirement plans and portable insurance benefits Understand how High Deductible Health Plans affect…, Plan for retirement, Develop and implement a retirement plan savings strategy Ensure “catch-up” contributions are used for those age 50 or older Discuss the features of long term care insurance and the benefits that it offers, Retirement, Identify a personalized Social Security claiming strategy to maximize expected lifetime income Discuss Medicare health care coverages available for those age 65 or older Analyze workplace pension payment options such as receiving a lump sum benefit versus lifetime income Plan for retirement account Required Minimum Distributions Understand the benefits of Qualified Charitable Distributions for…, Aging parents or grandparents, Develop a gifting plan to remove assets from the taxable estate Be sure the end-of-life planning wishes (such as powers of attorney medical care living wills etc are clearly communicated to loved ones and family, Annual financial checkup, Review updated personal financial statements Update asset values liabilities and current net worth Reconcile cash flows income living expenses and savings Develop a written savings and cash flow plan to prepare for leaving a legacy retirement income education expenses and/or unexpected financial needs Ensure savings are directed to the most efficient account types Maintain safety and liquidity to…, Year end planning, Harvest tax losses and use carryforwards to reduce capital gains taxes Accelerate ordinary income if lower-rate tax brackets are unused Understand how deductions income phase outs and the Alternative Minimum Tax interact We provide our clients with comprehensive wealth management and investment advice Together with the families we work with we have in-depth conversations to understand each…, Published January 2025