At the onset of the pandemic a few years ago the US Government and the Federal Reserve took aggressive action to support the US economy as it went into a self-imposed shutdown Congress passed the Cares Act which provided the public with stimulus checks and the federal funds rate was lowered to nearly zero The goal of these policies was to flood the economy with dollars to fight off instability…, Over three years later we are experiencing the inflationary effects of those stimulus programs The Russian invasion of Ukraine further jolted inflation as the commodity and oil markets spiked and supply chain disruptions worsened  Today inflation continues at the highest rate since the early 80’s and the Federal Reserve is taking action to combat it This article discusses how such an environment…, The impact of rising inflation, Inflation is a measure of the rate of increase of prices for goods and services in an economy which has popularly been measured by the Consumer Price Index “CPI” In any growing economy there is a natural and healthy level of inflation The primary effect of increased levels of inflation to consumers is an erosion of purchasing power with the value of a dollar being worth less than before Savings…, Inflation Since 2010, Inflation from 2010 to May 2022 Between 2010 and 2022 the average rate of inflation hovered at 21% while there was variance between 0 and 4% however between 2021 and 2022 it rose dramatically to approximately 83% Source blsgov While investing during uncertain times can be unsettling for investors it is important to keep a long-term view and understand that market volatility can create attractive…, The impact of rising interest rates,  The Federal Reserve increased interest rates for their first time since 2018 in March 2022 and kept raising it throughout the year in 2023 the year-end rate was 525-55%” When the Federal Reserve increases rates the most notable effect takes place in lending markets Adjustable-rate loans such as credit cards Adjustable Rate Mortgages and Home Equity Lines of Credit will be subject to increasing…, Be prepared for what’s next, These are just a few of the aftershocks that would be produced by persistent inflation and by the Federal Reserve’s subsequent actions to counter it It’s important to note that all economies have myriad elements and unknowns that can alter its trajectory Attempting to time or predict moves in interest rates cannot be done with any level of certainty We believe the best way to prepare for…, Published  January 2024, 1 wwwinflationdatacom | 2 Department of Labor – 5/11/2022 | 3 Bloomberg | 4 treasurydirectgov

Investing in the stock market is a terrific way to grow your wealth over time but volatile markets may often dissuade investors from fully benefiting from long-term compounding Markets can fluctuate wildly day-to-day and make investors nervous about getting started, One way to mitigate short-term volatility is to dollar cost average into the market This strategy involves gradually investing a percent of your cash over time rather than investing a considerable lump sum all at once Simply put instead of investing $10000 at once you would instead invest $1000 every month for the next 10 months, Potential benefits of dollar cost averaging , Averaging into the market can be an effective way to approach investing for a couple reasons Dollar cost averaging helps reduce the risk of buying at the markets peak If you invest all your money at once and the market drops soon after you could suffer significant losses By averaging into the market you spread your investments out over time and take advantage of market fluctuations especially if…, Potential drawbacks of dollar cost averaging, Averaging into the market can also have drawbacks The strategy can be time-consuming and requires discipline to stick to a regular investment schedule It also requires a long-term outlook and patience as it may take several months or even years to fully invest your desired amount Investors could lose some upside if the markets rise quickly while they are averaging in Without the benefit of a…, Published March 2025

Your IRA most likely represents a significant portion of your long-term retirement savings and can also play an important role in annual tax planning Depending on your situation and goals you might want to consider whether a Traditional IRA or a Roth IRA makes the most sense whether your required minimum distributions can be given to charity or whether you should accelerate your IRA distributions , Pick the right IRA vehicle for you, The point of all IRAs is to encourage people to save for retirement Therefore you are discouraged (via penalties to take any money out of these accounts until you turn 59 ½ , Traditional IRAs, Contributions are made with pre-tax money ¹  meaning you save money by not paying tax initially Distributions are fully taxable as ordinary income Penalty for withdrawals prior to age 59 ½ You must take your first required minimum distribution for the year in which you reach age 73 However you can delay taking the first RMD until April 1 of the following year If you reached age 73 in 2024 you…, Roth IRAs, Contributions are made with after-tax money Distributions are tax-free Penalty for withdrawals prior to age 59 ½ No required minimum distributions (RMDs Prior to tax time make sure to fund your IRA and work with your professional advisors to help you manage your RMDs if required, Take advantage of Qualified Charitable Distributions (QCDs, For many years the rules allowing a tax-free Qualified Charitable Distribution or QCD directly from an IRA to charity have been on-again off-again often getting extended at the very end of the year However the QCD rules have finally become permanent This is good news as it makes it easier for you to make proactive charitable contributions and minimize the tax associated with required minimum…, Convert your Traditional IRAs to Roth IRAs, If you do not need or expect to need the annual cash flow from your RMD it might make sense for you to consider converting your Traditional IRAs into Roth IRAs Among the advantages are Tax-free distributions Contributions can be made to the Roth IRA after age 70 ½ No annual RMDs Roth IRAs are a tax-efficient way to transfer wealth to beneficiaries upon the account owner’s death Please talk to…, Accelerate your distributions from your IRAs, One final tax idea to consider is to accelerate your distributions from your Traditional IRAs beyond the RMD amount  Depending on your expected taxable income in a given year it may make sense to accelerate distributions into years when your expected taxable income is lower This also may be appropriate in years when you have higher-than-average deductions By accelerating distributions you also…, Published March 2025, ¹Under certain circumstances your contribution may need to be funded with after-tax money - Source Mesirow Wealth Management 2 Retirement plan and IRA required minimum distributions FAQs | Internal Revenue Service    

At one time or another you may be offered the opportunity to “retire early” — well before your 65th birthday It is important to plan for this contingency in advance, Although retirement is often thought of as a stage that inevitably occurs at the end of a career many individuals do not give it serious consideration until well into their 50’s Based on policy related to programs such as Social Security Medicare and pension funds most Americans target their mid-60’s as the time period when they will enter into retirement Approximately 81% of individuals exit the…, Social Security benefits, and, retirement lifestyle readiness,  , Social Security, Your full retirement age as defined by Social Security depends on your birth year Its crucial to realize that the Social Security payments you qualify for will be reduced if you claim them before your full retirement age Monthly Social Security benefits increase approximately 65% to 80% per year between the ages of 62 and 70 so incorporating this expected income into your retirement financing can…, Retirement lifestyle readiness, Retirement adjustment is reached when individuals are no longer preoccupied with retirement transition but are comfortable with the changed circumstances of life in retirement Individuals transitioning from work to retirement experience meaningful changes in areas of their everyday lives such as having daily structure to account for their time socialization through work friendships a sense of…, The benefits of financial planning, Individuals often do not have a full understanding of their benefits and options in retirement Financial planning allows for the early interpretation of situations so that the negative outcomes resulting from abrupt unwanted or ill-timed transition can be minimized An accurate assessment of potential losses can eliminate anxiety and lead to greater satisfaction in retirement Researchers have…, Early retirement considerations, If early retirement may be an option for you here are a few things you should consider and discuss with your Wealth Advisor, What is your employer’s financial strength,  If early retirement is being offered due to financial strain that may eventually lead to layoffs an early retirement package may be a more attractive option than remaining at a particular company Consideration should be given to the dynamics in your organization industry and community, What are the financial benefits of working longer or exiting,  Staying in the workforce allows your existing assets to compound instead of being exhausted in retirement Early retirement packages often offer financial incentives for employees to exit the workforce Careful evaluation of an early retirement package versus full retirement benefits will provide a clearer understanding of the trade-off value of staying or leaving work and let you know if you are…, How is your pension calculation impacted,  Although defined benefit plans have become less common in recent years some organizations continue to offer them The amount of the annuity payment in these plans is often based on factors such as age income and years of service You should make sure you understand if the early retirement incentives being offered appropriately compensate you for lower monthly annuity payments in retirement, How will you fund healthcare,  Healthcare is one of the largest expenses faced in retirement Some organizations allow retirees to continue to receive benefits in their plan However if this is not an option and you are not yet eligible for Medicare benefits COBRA benefits may be your best solution COBRA allows you to maintain health insurance however the cost is not subsidized by your employer COBRA benefits can cost up to 102…, How will you replace the non-financial benefits of work,  Evaluate how you will structure time build relationships and have psychological successes that will contribute to your positive well-being Often converting hobbies to part-time work volunteering and spending additional time with family and friends can create a blend of activities that provide enjoyment and retirement success, Summary, Understanding the full value of your resources can lead to a more positive experience in all stages of retirement Mesirow Wealth Management has an 87-year history of advising clients through life events including career transition to retirement We can provide guidance as you figure out what the value of career transition will be for you, Published January 2025, 1 https//wwwpewresearchorg/social-trends/2023/12/14/the-growth-of-the-older-workforce/ 2 https//moneyusnewscom/money/retirement/social-security/articles/the-most-popular-ages-to-collect-social-security Feldman D (2013 Feeling like its time to retire A fit perspective on early retirement decision making In M Wang The Oxford Handbook of Retirement (pp 280-292 New York New York Oxford University…

You often see the terms Agent Trustee and Executor in various legal documents Each of these appointments allows for someone to care for your financial household in the event you are unable to act and upon your passing But what is the difference between these three roles and why does it matter who you appoint to each role, The role of your agent, Under both your Power of Attorney for Health Care and Power of Attorney for Property you (the creator of the Power of Attorney are the “principal” while the person you appoint to act on your behalf is the “agent” Typically this power to act on your behalf becomes effective upon your incapacity and will terminate upon your death When considering who to appoint to this position it may be advisable…, The role of your trustee, Similarly choosing a trustee is not always a simple task Within the governing instrument of your trust you (the creator of the trust are considered the “grantor” The “trustee” is the person or third party designated to control and carry out the terms of the trust The time at which the trustee will act is dependent on the governing instrument Typically for an individual’s living/revocable trust…, The role of your executor, Under your “Last Will and Testament” you (the creator of the Will are considered the “testator” Under this legal document an “executor” is also named Like a trustee an executor has a legal obligation to carry out the terms of the document in the best interests of the parties involved The task at hand can be overwhelming The named executor acts upon your passing To put it simply the executor…, Published February 2025, Mesirow does not provide legal or tax advice

In June 2024 United States Supreme Court issued a decision which may have a significant impact on closely held businesses with certain buy-sell agreements , What is a buy-sell agreement, When two or more persons own a business a buy-sell agreement serves a critical role in defining what happens to the business if an owner dies becomes permanently disabled retires or otherwise exits the business In most cases the agreement provides that the exiting owner’s interest will be bought out providing them (or their family with cash for the value of the exiting owner’s interest and the…, How does the US supreme court decision affect buy-sell agreements, The case is question is Connelly v United States (US No 23-146 Opinion 6/6/24 This case involved the valuation of a business originally owned by two brothers The owners entered into a “redemption” buy-sell agreement with the business that required the business to purchase the ownership interest of either brother if one of them died The business purchased and owned life insurance on each brother…, What steps should business owners take, If you have a redemption buy-sell agreement in place for your business you should consider reviewing this agreement with your legal advisor to determine whether the Connelly decision impacts you and your business You may also want to consider a more comprehensive review of the structure and funding of your agreement Is it optimally structured for your current business entity If you have funded…,  , Published February 2025

529 accounts are great vehicles to use to save for college  The money grows tax-free and there is no tax on distributions from the account — as long as it is used for qualifying education expenses like tuition books or room and board Additionally many states including Illinois allow for some state tax deductions  , Leftover 529 assets, Money left over in 529s can always be transferred to another family member’s 529 or it could be withdrawn from the account — which would incur a 10% penalty on investment earnings plus you would have to pay taxes on the earnings as well  Beginning in 2024 there is a new alternative — as part of the Secure 20 Act leftover funds in a 529 account can be converted to a Roth IRA with no penalties or…, About Roth IRAs, Roth IRAs are very desirable accounts They too grow tax-free and there is no tax on distributions from the accounts Generally it has been hard to accumulate large balances in Roth IRAs because contributions are limited to certain income thresholds and rollovers from Traditional IRAs to Roth IRAs can be costly from a tax perspective  The provision to enable rollovers of leftover funds from a…, Published March 2025,  

Taking time to review and reassess your estate plan on a regular basis is an important habit to adapt once you’ve put planning into place Stop check-in take inventory , Think about the answers to these questions, Who will handle your affairs in the event of incapacity Do you have a health care directive Are proper beneficiaries named on insurance policies retirement accounts and other accounts Do you have children who are minors or have special needs If something were to happen to you do you have a clear objective as to how you want your assets to be distributed and to whom How are other assets titled Do…, What are Powers of Attorney and why do I need them, A durable power of attorney for property (POA allows an individual to appoint an agent to handle their financial affairs in the event of disability This would include things like payment of bills (any assets held within a trust would be managed by the successor trustee Similarly healthcare decisions would be made by an appointed agent under a Power of Attorney for Health Care Take action If you…, What is a Will, A will is a public document that transfers separately owned property under a court appointed probate proceeding A will does not supersede transfers that occur automatically such as joint bank accounts jointly held real estate and assets with beneficiary designations The will also names guardians for minor children An executor is the named individual or third party appointed to carry out the terms…, Do I need a Revocable Trust, Many individuals feel that because the current 2025 Federal Estate Tax exemption is $1399 million that an estate plan is not needed unless their wealth exceeds this amount ¹ This is not always the case For example residents of Illinois could have an estate subject to state estate taxes while not having an estate subject to federal estate tax Currently the Illinois estate tax exemption is…, 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 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 February 2025, 1  https//wwwirsgov/businesses/small-businesses-self-employed/estate-tax 2 https//wwwfaegredrinkercom/en/insights/publications/2025/1/2025-estate-tax-exemptions-and-planning-considerations#~text=or%20inheritance%20tax-Illinoistax%20exemption%20is%20not%20portable    

You just entered the “real world” now what Deciding where to live on your own for the first time involves more than just finding a place to sleep it’s a choice that can impact your finances career opportunities personal growth and relationships Whether you are thinking about staying at home or renting here are some crucial factors to weigh, 1 Long-term financial goals and career opportunities will influence your choice , It’s essential to make sure your living situation matches your long-term goals whether that’s advanced education career progression or saving for homeownership, Advantages to living at home,  You can save on rent pay down debt and potentially avoid student loans if pursuing further education like grad school It may also give you the opportunity to take on lower-paying jobs to gain experience without financial strain, Advantages to renting,  Offers more flexibility in your job search with opportunities in different cities potentially leading to higher-paying roles and faster career advancement Evaluate your priorities carefully to make the decision that best supports your aspirations and sets you on the path to achieving your professional ambitions  , 2 Rental rates impact financial readiness , One of the most critical aspects to evaluate when deciding between living at home or renting is the financial implications Finding a roommate may also reduce pressure on individual expenses as sharing costs could be a savvy way to save more money Rental rates across the United States vary widely depending heavily on things like the size of the apartment and location The average rent in the US is…,  , 3 Location City or Suburbs, Moving into a city or suburbs requires careful financial planning which has a big influence on lifestyle decisions, Living in a city potentially means paying more for groceries rent and other living expenditures Greater income potential and a variety of work options in sectors like media technology and finance can offset it though Convenient facilities and cultural experiences are appealing but they come at a cost that can call for financial restraint and budgeting  Relocating to the suburbs usually comes with…, 4 Family dynamics matter, Whether you’re contemplating staying with your family or renting your own place understanding how family dynamics can influence your decision is important , Strengthening bonds,  Living at home can create stronger familial connections and provide emotional support during transitional periods like leaving college , Navigating independence,  It is very important to keep in mind negotiating boundaries responsibilities and differing expectations when living at home so you can still navigate independence Before deciding consider how living with your family may affect your personal development and relationships Also consider how important it is for you to be able to see them regularly Communicate openly with family members and establish…, 5 Let personal values influence your decision, Personal values are a major factor in creating post-college living plans since they influence choices about your employment lifestyle and long-term objectives People who place a high value on environmental sustainability or do not want to commute in the first place for example might pursue jobs in conservation or renewable energy which could have an impact on their housing and employment…, 6 Timing is important, Young professionals who can choose whether to live at home or move out of their families home are at a unique point in their lives Generally this is one of the only moments in the time after graduation where you can pour almost every penny into savings graduate school debt payments or other goals by living at home and saving It is far more challenging to pivot from an independent lifestyle to…, 7 Weigh your financial decisions, Similarly to savings financial burdens should be a large consideration when deciding which path to take Money that would be spent on rent can be used to pay off debt Additionally living at home can provide a financially stress-free environment to accumulate a good credit score  To help you make an informed decision weve developed a budgeting tool This tool is designed to calculate your estimated…, Conclusion, Your post-college years offer you a wide variety of lifestyle choices including the decision where to live and work and how you will being your career path Your familys Mesirow Wealth Advisor is happy to help talk through your choices with you and to help you get started with your first budget and financial plan  Published January 2025

Seventy percent of seniors will need some type of long-term care services and support in their lifetime 1 The goal is to be prepared so if you turn out to be one of them it doesn’t derail your overall financial plan Many of us expect to stay healthy and self-sufficient well into our senior years but planning for the possibility is not only prudent it can help protect your assets investments and…, Although the annual median cost of long-term care in Illinois in the table below may not be seem daunting for affluent families four and five star facilities in your locale can easily double or triple in price, Average cost of long-term care in Illinois (2025, Type of service, Monthly median cost, Home health aide $6675 Assisted living facility $5676 Nursing care facility private room $10326 Source Genworth cost of care calculator https//wwwgenworthcom/aging-and-you/finances/cost-of-carehtml Fortunately figuring out how to finance a potential long-term care situation is relatively straightforward The key to doing so successfully as it is for most potentially hefty future expenditures is…, Fitting long-term care into your financial plan, Fully incorporating potential long-term care costs into your overall financial plan involves a number a variables that we don’t have room to cover here but your Mesirow Wealth Advisor can talk through these variables with you The most important decision in your planning will be how you want to handle the responsibility of long-term care expenses Assume the risk of financing long-term care costs…, Self-financing options, Depending on your financial situation you may be able to afford to pay for long-term care from the sale of your home or from your accumulated assets Your Wealth Advisor can help assess the feasibility of this approach and discuss how it may impact your estate plan , Insurance options, Long-term care insurance (“LTC” provides financial support for an insured who is unable to perform at least two of six “activities of daily living” (such as bathing dressing eating transferring toileting or continence or has a cognitive impairment that requires supervision Today more than 100 carriers sell some type of LTC insurance product or rider so there is no shortage of choices 2 You’ll…, Sticking the landing is the hardest part, The question after you’ve talked through several major financial options is always “will I follow through on the arrived at decisions” But given the likelihood that you may need long-term care and its potentially devastating effect on your overall finances – and potentially your family’s finances - it’s important to have a plan in place Your Mesirow Wealth Advisor can help you plan for a healthy…, Published February 2025, 1     https//wwwsinglecarecom/blog/news/long-term-care-statistics/ 2     https//contentnaicorg/insurance-topics/long-term-care-insurance#~text=According%20to%20the%20US%20Department20%20insurers%20sell%20most%20policies