If you have substantial assets in your IRA (or other qualified plan account leaving this asset to your children or other family members can create many headaches First it can create a significant tax burden under the current distribution rules Also giving your heir the unfettered right to withdraw all the funds and spend it as they wish may not be a good solution if they are not financially…, A testamentary CRUT is created and funded after you pass away You can include the instructions to establish the trust and the trust terms in your Last Will and Testament or Revocable Trust You then name one or more of your heirs as the initial Beneficiary for the CRUT The CRUT will pay the Beneficiary a fixed percentage of the trust income either for a set number of years (up to 20 years maximum…, Conclusion, While there are several benefits to leaving your IRA to a CRUT it may not always be the best solution Suppose your primary goal is maximizing the net after-tax benefit to your heirs and have no interest in leaving anything to charity In that case the tax benefits (stretching out income tax liability estate tax charitable deduction may not outweigh the minimum required 10% that must be left to…

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

Aging populations are a global phenomenon It is estimated that the global population of individuals over age 60 will grow from 12% to 22% by 2050 primarily as a result of increasing lifespans, 1, Every day 10000 American baby boomers reach their full retirement age of 65 and it is estimated that by 2030 all boomers will be age 65 or older, 2, The aging of the population is creating serious conversation around the topic of retirement as individuals try to figure out if and how they would like to transition from their primary careers into a retirement period that may be much longer and different than those experienced by prior generations The decision to retire has become more complex as a result of the elimination of guaranteed pension…, Step 1 Develop your financial self-efficacy, Financial self-efficacy is the belief that you can achieve and succeed financially Although you may have the financial resources to retire a lack of confidence regarding your ability to financially succeed in retirement can lead to anxiety that may limit your fun and enjoyment during this exciting stage of life Research studies show that financial planning plays a key role in developing financial…, Step 2 Develop your retirement identity, We spend our early and middle age years developing skillsets and building our work identities Working Americans spend more time engaged in their careers than any other activity Over time our personal and professional identities become tightly woven together Your community frequently knows you as a physician accountant teacher or employee at a certain company The immediate disconnection of work…, Step 3 Further expand your social network, Work has several non-financial benefits such as socialization At the end of a 25+ year career it is common to have a meaningful part of your social interactions come through work affiliations When you retire your friends and colleagues may not be as accessible due to their own career demands Prior to retirement it may be helpful to develop social relationships that will provide you with…, Conclusion, In conclusion the decision to retire involves a myriad of life style changes challenges and opportunities Comprehensive financial planning the ability to define your “new self” outside of a work environment and the ability to develop new social relationships will all impact your successful transition from your career to your new adventure in retirement Your Mesirow Wealth Advisor can help you…, Published January 2025, 1 https//wwwwhoint/news-room/fact-sheets/detail/ageing-and-health#~text=In%202020%2C%20the%20number%20offrom%2012%25%20to%2022%25 2 https//wwwcensusgov/library/stories/2019/12/by-2030-all-baby-boomers-will-be-age-65-or-olderhtml

It’s often hard to tell the difference between relevant market information and noise That’s why every quarter our Market Observations newsletter lets you know what articles our advisors are using to form ideas and shape opinions Take a look at what caught our eye this quarter, MESIROW, Tariffs and market impact, Following President Trump’s tariff announcement on April 2 Mesirow shared some perspectives on the announcement and market reaction along with ideas for how to navigate periods of uncertainty The announcement policy turned out to be much more drastic than markets expected resulting in sharp selloffs across most equity markets Though the full impact of the change in trade policy is still…, Four questions you should ask to combat the market chaos, Human nature leads us to weigh recent information heavily in our decision-making process So when volatile markets like those in early April suddenly interrupt periods of relative calm the drastic changes in market prices can make you feel you need to respond with drastic changes in your own portfolio However investing is a much different activity than responding to the natural stimuli for which…, A world of tariffs, Following Novembers election markets had begun to price in an expectation of tariffs — a major campaign promise of President Trump Even still the Rose Garden announcement managed to spook global stock and bond markets as the magnitude of the trade policies announced were far more extreme than what most had anticipated In this commentary the team at First Eagle Investments looks at both the short-…, Why veteran fund manager Steve Romick isnt leaning in hard, The market sell-off that began in mid-February led markets to markets that while down significantly from their peaks still traded at historically elevated levels In this interview with Morningstar FPAs Steve Romick mused that while valuations are down from where they were at the beginning of the year and a little bit further from their peak it’s not like they’re giving stuff away As a result hes…

It’s often hard to tell the difference between relevant market information and noise That’s why every quarter our Market Observations newsletter lets you know what articles our advisors are using to form ideas and shape opinions Take a look at what caught our eye this quarter, MORNINGSTAR, 13 Charts on Q4s Big Postelection Rally - and Late Stumble, In 2024 economic growth growing corporate earnings falling interest rates and a soaring Technology and Artificial Intelligence trade boosted markets to all-time highs The gains were not evenly distributed however as during the fourth quarter growth stocks continued to build on their 2024 gains while other sectors of the market — such as value dividend small cap and international stocks — turned…, On Bubble Watch, Recent years in the market have been unique with the S&P 500 returning over 20% in back-to-back years for only the fifth time in history driven largely by the magnificent seven [Apple Microsoft Alphabet (Google’s parent Amazoncom Nvidia Meta (owner of Facebook WhatsApp and Instagram and Tesla] which accounted for more than half of the indexs 2024 return Further these seven companies now…, Podcast Capital Allocators Interview with Marco Maven Scott Bessent, President-elect Trump recently tapped Scott Bessent as his choice for Treasury secretary Bessent has had a long and successful career as an investor having worked for several legendary hedge fund managers including Jim Rogers George Soros and Jim Chanos before launching his own fund In this wide-ranging conversation with host Ted Seides which was recorded before the election Bessent talks about…

It’s often hard to tell the difference between relevant market information and noise That’s why every quarter our Market Observations newsletter lets you know what articles our advisors are using to form ideas and shape opinions Take a look at what caught our eye this quarter, MESIROW, Reflections from Omaha Six core investment principles , Mesirow Wealth Management Research Team members were fortunate to attend the Berkshire Hathaway Annual Shareholder Meeting in Omaha where legendary investor Warren Buffett announced his retirement as CEO at age 94 While the meeting serves as an update on Berkshire it’s also a gathering place for like-minded investors to reinforce the core principles Buffett has championed over his 60+ year career…, Four questions you should ask to combat the market chaos, Over the past five years launches of new Exchange Traded Funds (or ETFs have eclipsed the launches of new mutual funds as investor interest and flexibility around the ETF structure have grown This New York Times article explores the evolving “ ETF vs Mutual Fund ” debate between two of the most popular investment vehicles It highlights some key differences ETFs offer intraday trading potentially…, Different kinds of smarts, The article opens with Jeff Bezos’s observation that “there are a lot of kinds of smart” followed by a recap of the dramatic 1998 collapse of Long-Term Capital Management — an investment group that billed itself as the smartest ever assembled — as a cautionary tale that brilliance alone doesn’t guarantee success Instead true intelligence encompasses traits like humility imagination cross-…

It’s often hard to tell the difference between relevant market information and noise That’s why every quarter our Market Observations newsletter lets you know what articles our advisors are using to form ideas and shape opinions Take a look at what caught our eye this quarter, MORNINGSTAR, How the 2024 election could affect your portfolio, An election with a binary outcome — where one of two candidates will be our next president — can lead investors to believe that they need to also plan for their finances in a binary manner based on their predicted outcome The truth is much more nuanced as market performance has varied wildly without a strong correlation to the party that holds the presidency or Congress Further the path of least…, Whats in a cycle, At its September meeting the Federal Reserve cut interest rates by half a percent The consensus view is that this marked a change from the cycle of interest rate increases to a new cycle of interest rate declines This column from Jason Zweig looks at past rate cycles and reminds us History shows that interest rates seldom move down or up in a smooth and predictable path Zweig reminds us that the…, WNBA commissioner Cathy Engelbert is leading the league to historic highs, Five years ago Cathy Engelbert stepped down as CEO of Deloitte where she oversaw more than $20 billion in revenue Engelbert left the consulting firm and its 100000-plus employees to join the WNBA as its commissioner where she inherited a much smaller staff of just 12 Her first year in the role saw her face the challenges of the COVID-19 pandemic and internal and external threats to the leagues…

It’s often hard to tell the difference between relevant market information and noise That’s why every quarter our Market Observations newsletter lets you know what articles our advisors are using to form ideas and shape opinions Take a look at what caught our eye this quarter,   Interest Rates, What rising interest rates mean for your fixed income portfolio, 2022 saw the Federal Reserve raise interest rates at a pace not seen in decades This rapid increase led to a painful year for both equity and bond investors as the rise in rates contributed to a decline in equity valuations while bond investors simultaneously saw losses as their fixed income holdings repriced to the new rate environment The silver lining to the move in rates is long-term…, Big changes in the S&P 500 highlight the power of index providers, Last month Standard and Poors announced some of the biggest changes in years to the benchmark S&P 500 Index For example changing the category of Visa Mastercard and PayPal to financial companies instead of technology companies makes for an interesting debate However with the rise of indexing and ETF investing these changes can have deceptively large impacts on markets Over time changes to…, What happened to Silicon Valley Bank , One of the biggest market changing events of the first quarter was the failure of Silicon Valley Bank Following a run on the bank by its depositors regulators needed to step in and close the bank The subsequent closing of Signature Bank a couple of days later led to widespread concerns about contagion risk and the health of the regional banking sector While swift actions from the Federal Reserve…

It’s often hard to tell the difference between relevant market information and noise That’s why every quarter our Market Observations newsletter lets you know what articles our advisors are using to form ideas and shape opinions Take a look at what caught our eye this quarter,   Wall street journal, Hey ChatGPT why isnt my AI Fund up like Nvidia, When a single investment trend — like AI — receives a disproportionate share of media coverage its easy to get caught up in the idea that you need to react quickly as an investor to ride the wave and trade the headlines However it often surprises investors to learn that even if you could accurately pick these trends in advance your investment results may differ from what you would have expected…, Japan had a vibrant economy Then it fell into a slump for 30 years , While the US Federal Reserve appears to be near the end of a series of interest rate hikes Japans central bank just raised interest rates for the first time in 17 years This fascinating Planet Money episode looks at the last three-plus decades and how Japan went from having an economy that was the growth story of the 1980s to having one of the slowest-growing major economies of the last 30 years…, Daniel Kahneman the unlikely economist , Last month Nobel prize-winning economist Daniel Kahneman passed away at age 90 Kahneman was a pioneer who helped create the field of behavioral economics He challenged the traditional economic belief that assumes humans will make rational decisions to optimize their financial outcomes Instead Kahneman demonstrated scenarios where people react based on biases and heuristics (or mental shortcuts to…