What are they and how do they fit within my financial plan  , Inflation continues at the highest rate since the early 80’s and as a result different savings vehicles such as Series I Savings Bonds or I Bonds  are emerging in popularity This article explains what I Bonds are the pros and cons of investing in them tax considerations and how they may factor into your financial planning I Bonds are savings bonds from the United States Treasury that encourage…, How to calculate I Bond interest rates, Calculating the interest rates for I Bonds consists of knowing the fixed rate which is set at purchase and the variable rate (which we know changes every six months You can calculate it using the below formula Composite rate = [fixed rate + (2 x semiannual variable rate + (fixed rate x semiannual variable rate], The pros and cons of I Bonds, I Bonds present themselves as a lower-risk savings vehicle However there are both pros and cons to I Bonds so it is important to consider how I Bonds would fit within your current financial plan depending on your unique situation Pros I Bonds are generally a liquid investment and can be held for as little as one year and as long as 30 years They are viewed as a lower risk investment and have been…, I Bonds offer tax reporting flexibility, Depending on your situation you have a few options for reporting the interest incurred during the life of the bond You can report the interest earned every year when you file your taxes OR you can defer reporting the interest until you file a federal income tax return for the year in which the first of these events occurs You cash the bond and receive what the bond is worth including the interest…, How to incorporate I Bonds within your financial planning, Many of our clients are asking if I Bonds is an appropriate savings vehicle Your Mesirow Wealth Advisor can work with you to explore the pros and cons relative to your unique financial plan   1 https//wwwtreasurydirectgov/indiv/research/indepth/ibonds/res_ibondshtm, Published March 2025

Servia Rindfleish is a Managing Director and Client Portfolio Manager for Mesirow Alternative Credit In this role she drives business development efforts focusing on building and strengthening partnerships with existing and prospective clients LPs consultants and other investor classes Before joining Mesirow Alternative Credit she focused on research and analytics and client service while…

With so much happening in the world today and the usual end-of-year craziness of the holiday season its not always easy to remember critical financial deadliness , A well-maintained financial plan is always important but with so many changes happening its more important today than ever  Depending on your unique situation some tips listed below make sense for you and your family We hope these helpful tips are an essential reminder that some planning strategies cannot wait until next year , 1 Maximize your tax-deferred annual contributions, Are you maximizing the contributions allowed for your particular plan (401k 403b etc One way to reduce taxable income is by maximizing contributions to your tax-deferred retirement plan(s The 2025 contribution limits are $23500 for a defined contribution plan with a $7500 catch-up contribution available if you are over 50¹ Remember that your 401k and 403b contributions must be deferred from…, 2 Maximize your annual gifting, Have you made your annual exclusion gifts yet During 2025 you may gift up to $19000 to any individual free of gift or estate tax A married couple may gift up to $38000 per beneficiary during the calendar year²  In addition you may pay directly for qualified educational and medical expenses in any amount without gift tax consequences This is a great way to gift additional money to support the…, 3 Make charity contributions from your IRA, Did you know that you can make Qualified Charitable Distributions from your IRA Anyone age 70 ½ or older can still distribute up to $108000 (per taxpayer ³ from their IRA account directly to a qualified charity This allows you to satisfy your charitable obligations entirely with pre-tax dollars as these QCDs are excluded from your adjusted gross income This also allows standard deduction…, 4 Bunch your charitable contributions, To maximize the tax benefit of itemized deductions for charitable giving you may consider “bunching” your charitable deductions this year using a Donor Advised Fund (DAF  When you contribute to a DAF you receive an income tax deduction for the entire contribution the year it was made (regardless of whether the funds are used for charitable purposes in the same year  Be careful there are…, 5 Convert your Traditional IRA to a Roth IRA, With the combination of low marginal tax rates and recent volatile market conditions now may be an advantageous time to convert some pre-tax Traditional IRA money into a Roth IRA While this would require paying income taxes on that pre-tax amount it results in a tax-free account going forward  In addition those who cannot make deductible IRA contributions should consider making a nondeductible…, 6 Minimize the tax impact on investment gains , Although periods of market volatility can often create anxiety the gains and losses incurred during up and down markets can be leveraged to work together to minimize the taxes you pay on capital gains Through a practice called “tax loss harvesting” it’s possible to strategically reduce federal tax liabilities without impacting long-term investment plans   When utilizing this strategy it is…, 7 Make 529 contributions by year end, The cost of college education continues to rise every year Using 529 plans is a great way to help save for future college expenses and potentially receive a state tax benefit on your current-year contributions Growth in 529 plans is tax-deferred and can be withdrawn tax-free if used for qualified education purposes Most states offer a current-year deduction on state income tax based on how much…, Discuss any changes in your life, Life is constantly changing We adapt to job changes upsize and downsize our homes have children or grandchildren become involved with new charitable organizations adopt healthier lifestyles or struggle with illness refocus from childcare to parent care and so many more events that contribute to — and sometimes challenge — our lives Discussing these changes with your Mesirow Wealth Advisor allows…

Shane McDaniel is a Managing Director in Mesirow Investment Banking He is responsible for developing key relationships leading deal teams throughout the transaction process and providing advisory services on middle-market M&A assignments within the Technology & Services sector Shane has devoted his career to serving institutional investors including prominent venture capital and private…

Shannon Walker is a Vice President in Mesirow Currency Management Her primary responsibilities include the analysis reporting design and marketing material production of Mesirow Currency Alpha & Macro strategies Shannon has thirteen   years of industry experience in marketing and investor relations Before joining Mesirow she was a Senior Marketing Associate at The Cambridge Strategy  In…

Shauna Kelly-Moran is a Vice President and Client Relationship Specialist in Mesirow Wealth Management She is responsible for day-to-day client service and communications including client portfolio analysis trade requests account processing and documentation Shauna joined the firm in 2005 and has 19 years of experience in the financial services industry Shauna earned her Bachelor of Arts from the…

Shelley Letner is a Vice President and Client Relationship Specialist in Mesirow Wealth Management Shelley’s responsibilities range from establishing client relationships handling general account maintenance and tasks to creating solutions to meet complex client needs Shelley delivers exceptional value to clients with high touch personal service Shelley joined the firm in 2003 and has 30 years of…

Free float vs managed float currency exchange rates which one is better, There are approximately 180 currencies in the world and eight major ways for countries to manage the value of their currency Management often takes the form of influencing currency exchange rates the value of one currency relative to another That influence can range from no or minimal intervention (free floating currency exchange rates to tight government management (capital controls with fixed…, Bank for International Settlements Survey, The Bank for International Settlements a bank for the world’s central banks surveys the foreign exchange market in April every three years and reports currency trade volumes Table 1 and Figure 1 present currencies with over 5 percent of the global volume traded in the 2022 survey TABLE 1 CURRENCY TRADING BY PERCENT OF TOTAL TRADING APRIL  , 2019, 2022, Currency management strategy, US dollar, 883% 885% Free float, Euro, 323% 305% Free float, Japanese yen, 168% 167% Free float, British pound, 128% 129% Free float, Chinese renminbi, 43% 70% Managed float with currency basket, Australian dollar, 68% 64% Free float, Canadian dollar, 50% 62% Free float, Swiss franc, 49% 52% Free float   FIGURE 1 CURRENCY TRADING BY PERCENT OF TOTAL TRADING APRIL, USD, | US dollar   , EUR, | Euro   , JPY, | Japanese yen   , GBP, | British pound   , CNY, | Chinese renminbi   , AUD, | Australian dollar   , CAD, | Canadian dollar   , CHF, | Swiss franc   Source Bank for International Settlements Triennial Central Bank Survey April 2022 | bisorg/statistics/rpfx22_fxhtm Seven of the top eight currencies in the BIS survey are free floating Free-floating currencies are those whose exchange rates fluctuate in response to supply and demand In 2019 and 2022 the US dollar was on one side of about 88% of all currency trades far outpacing…, Free floating currencies, Free-floating currencies were borne out of the collapse of the post-World War II financial order in which gold was converted to US dollars at $35 per ounce Other nations maintained their currencies at a fixed exchange rate with the dollar These gold-to-dollars-to-other-currencies exchange rates lasted until the early 1970s when economic conditions made it increasingly difficult for the United…, Self-correcting adjustments, | The currencies adjust to economic situations such as unbalanced trade or capital flows If a nation has a trade deficit then its currency could depreciate to make imports more expensive and exports cheaper reducing the gap between imports and exports , Monetary policy, | A flexible exchange rate allows a central bank to set interest rates without the concern that a central bank would have if its currency exchange rate was fixed Changing interest rates could alter the demand for the currency pressuring the fixed rate , Safe haven, | A floating currency can act as a buffer against external shocks In tumultuous times investors turn to safe haven currencies like the US dollar and Swiss franc then buy government bonds driving prices up and yields down A stronger dollar or franc can make imports cheaper , Lower foreign exchange reserves, | A floating exchange rate means a central bank can keep smaller amounts of foreign currencies compared to those banks which must defend a fixed exchange rate Lower amounts of foreign reserves reduce costs and increase efficiency And because nothing is perfect disadvantages of a floating exchange rate, Unanticipated volatility, | A free floating currency can be volatile causing investors and businesses to delay investment or business activity while the currency is unsettled, Inflation, | If a country is dependent upon imports a depreciating currency can increase inflation making those imports more expensive, Safe haven, | A safe haven currency offers advantages but a strengthening currency can make exports more expensive , Debt, | If a nation issues debt in a foreign currency principal and debt repayments can be expensive if the domestic currency depreciates, Managed float, Before 2005 China pegged the renminbi rate to the US dollar In July 2005 the People’s Bank of China the country’s central bank announced China would use a managed floating exchange rate in which the renminbi would be allowed to float in a narrow margin (+/- 2% around a fixed base rate The Chinese central bank determines that fix rate each day based on market supply and demand with reference to an…, Current affairs, That trade competitiveness puts the renminbi high on President Trump’s list of nations with large trade imbalances with the United States Table 2 and Figure 2 show an increasing gap between exports and imports (discounting the two years following the pandemic in the new century TABLE 2 EXPORTS TO AND IMPORTS FROM CHINA ($M, Year, Exports to China, Imports from China, 1999, 17707 84637, 2004, 42236 203085, 2009, 86766 307347, 2014, 166374 484566, 2019, 167475 469514, 2023, 195524 447668   FIGURE 2 EXPORTS TO AND IMPORTS FROM CHINA ($m Source Bureau of Economic Analysis and Mesirow | https//wwwbeagov/news/2025/us-international-trade-goods-and-services-november-2024, More recent currency affairs, A weaker currency also helps with tariffs A strengthening dollar/depreciating renminbi since early 2022 (Figure 3 results in a low import price before the US applies tariffs That means Chinese goods are less expensive in the US than they would be if the renminbi had been strengthening The United States has become increasingly frustrated with Chinese trade actions claiming the Asian nation engages…, Free floating vs managed float – which one wins, So which currency management strategy is best As western asset managers long accustomed to free floating currency systems we’d be inclined to give the nod to currencies whose exchange rates change at the whim of supply and demand But there are plenty of examples of free-floating currency exchange rates that have been manipulated managed so it’s hard to fault China and its managed float In the end…, Explore more currency insights, The powerful and wide ranging effects of currency exchange rates, Keeping an eye on currency trends and information can explain the ‘why’ of economic events that have life-altering consequences for people and nations  Read article, Understanding currency quotes, Learning how exchange rates are presented and what they signify can offer a clearer view of the economic trends and market forces shaping currency values  Read article, Four strategies to reduce liquidity management stress, Different approaches can help investors manage the liquidity challenges associated with their currency program  Read article

Simon Mui is a Managing Director at Mesirow in the Institutional Sales and Trading group  He is the head of mortgage research and a desk strategist focusing on securitized products with emphasis on the CMBS and RMBS markets Simon has over 20 years in the industry focusing on securitized products  Prior to Mesirow Simon spent 16 years at Deutsche Bank where he served in Valuation Risk Management…