https://www.fosterandmotley.com RSS feeds for Foster & Motley 60 https://www.fosterandmotley.com/insights/2026/04/20/destressing-the-investment-experience-how-to-avoid-common-behavioral-traps#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42272 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42272&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2026/04/20/destressing-the-investment-experience-how-to-avoid-common-behavioral-traps If market fluctuations stress you out and cause you to make irrational financial choices, you are not alone. Research continues to prove that investors can often be their own worst enemies. During times of market volatility, the temptation to abandon a long-term strategy in favor of a knee-jerk reaction is strong. However, patience and a structured plan can help create a calmer and more manageable money experience, allowing individuals to live their most meaningful lives. In a recent episode of the Wealth and Life podcast, advisors Rachel Rasmussen, MBA, CFA, CDFA®, and Zach Binzer, CFP®, discussed the behavioral traps that commonly derail investment success and how an objective approach can help investors stay on course. Listen to the episode here, or read on for a summary of their insights. The Challenge of Human Emotion A financial plan tends to be objective and quantitative, while human beings are naturally emotional and illogical, especially under stress. Our goal with comprehensive wealth management is to create a plan that fits your current situation and helps you achieve long-term goals, while also providing the framework needed to stick to that plan through highly emotional times. Whether you’re facing market highs, sudden declines, or changes in personal circumstances, taking steps to eliminate stress leads to better adherence to your plan. Rachel notes that a plan is only as good as the paper it is printed on if it is not actually followed. Recognizing the common behavioral traps that investors fall into is the first step toward making more rational decisions. Common Behavioral Finance Traps The field of behavioral finance has identified several specific biases that influence investor behavior. Understanding these can help you recognize when your emotions are driving your financial choices. Fear of Missing Out (FOMO): Also known as herd behavior, this occurs when investors jump on the bandwagon of a popular stock or trend simply because they fear missing out on potential gains. Buying into an asset after it has already experienced a significant run-up often leads to disappointing results. Confirmation Bias: This is the tendency to seek out, interpret, and conveniently remember information that confirms pre-existing beliefs while ignoring contrary evidence. In the investing world, this might mean holding onto a declining stock because you only pay attention to positive news about the company, rather than objectively evaluating if the fundamental data has changed. Recency Bias: Investors often assume that whatever has happened recently will continue to happen. If markets have been strong, there is an expectation of continued growth; if they have been poor, investors fear endless decline. In reality, markets are cyclical, and forward projections must be based on broader historical data rather than just recent events. Anchoring Bias: This occurs when an individual fixates on a specific, often arbitrary number as a reference point for all future decisions. For example, demanding a specific percentage of income from a portfolio regardless of the current interest rate environment can lead to taking unnecessary risks. Financial planning must evolve with changing economic conditions rather than remaining anchored to past expectations. Loss Aversion: Perhaps the most significant bias influencing behavior is loss aversion. Scientific evidence suggests that investors feel the pain of a loss much more acutely than they appreciate an equal gain. This outsized reaction to market downturns often leads to a desire to move to cash at the worst possible time, locking in losses and missing out on subsequent recoveries. Mental Accounting: Investors often assign different values to different pots of money based on emotional attachment rather than objective financial reality. Treating inherited assets with extreme conservatism out of a sense of sentimentality or viewing different checking accounts as having entirely different purposes, can blur your ability to execute a unified, logical financial strategy. The Cost of Market Timing When faced with these emotional pressures, many investors attempt to time the market, trying to predict the perfect moment to invest cash or sell off assets. However, studies consistently show that time in the market is more effective than timing the market. Research from Charles Schwab, utilizing historical market data, illustrates the danger of trying to guess market movements. Missing just a handful of the market's best days over a multi-decade period can drastically reduce annualized returns. Putting money to work and staying invested through the ups and downs generally yields better outcomes than attempting to only buy in the valleys and sell at the peaks. If investing a lump sum immediately feels too stressful, dollar-cost averaging – investing a set amount at regular intervals – is a disciplined alternative that removes the emotion from the timing decision. Finding Objectivity Through Financial Planning The most effective solution for navigating these behavioral traps is to establish a solid financial plan and enlist the help of an objective third party. An advisor provides a crucial sounding board, offering perspective that is grounded in logic rather than emotion. A key component of this process at Foster & Motley is Monte Carlo analysis. This sophisticated stress test runs thousands of scenarios based on your assets, liabilities, cash flow, and expected market volatility. By simulating a financial life thousands of times, advisors can determine the probability of a plan's success across a wide range of potential future market conditions. This provides a high degree of confidence that a strategy is sound, helping to Foster Life's Wealth even when the market is turbulent. Financial planning is an ongoing process. It requires regular performance reviews, adjustments for changing life circumstances, and, most importantly, behavioral coaching to ensure commitment to the strategy. By understanding your personal biases and relying on objective counsel, you can de-stress your experience and focus on your long-term objectives. Foster & Motley is here to help. At Foster & Motley, we provide you with independent and objective advice that puts your interests first. To learn more about how comprehensive wealth management can help you navigate market volatility, contact us today to speak with a financial advisor. Betsy Wolking, MSM Mon, 20 Apr 2026 14:59:00 GMT f1397696-738c-4295-afcd-943feb885714:42272 https://www.fosterandmotley.com/insights/2026/04/15/beyond-the-headlines#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42204 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42204&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2026/04/15/beyond-the-headlines Connecting What’s Happening to What Really Matters April is Financial Literacy Month and a timely reminder that confident investors aren’t just advised, they’re informed. In this month’s update, we highlight why ongoing education matters at every stage of wealth, and how staying engaged can make a difference when markets turn volatile. Zach also unpacks key developments to be aware of, including proposed changes to 401(k) investing and often-overlooked opportunities in year-round tax planning. It’s a thoughtful look at how proactive, informed decision-making can help investors stay ahead and on track. Sources: https://news.bloomberglaw.com/daily-labor-report/401k-alternative-investment-rule-completes-white-house-review https://www.cnbc.com/2026/03/24/turn-the-market-sell-off-into-a-tax-smart-advantage-for-your-portfolio-.html https://www.ishares.com/us/insights/inside-the-market/international-investing-stocks-2026 Don't want to watch the video? Here’s the transcript you can read instead:  Welcome to this edition of Beyond the Headlines. I’m Zach Horn. One of the things I love most in client meetings is seeing that lightbulb moment — when a strategy, or really any piece of information, suddenly clicks in a way it hadn't before. That’s why we strive to meet you where you are in every conversation, whether it’s in the big picture or the fine details. And speaking of understanding, April is Financial Literacy Month! While you might think financial education is only for people just getting started, we find our most engaged clients are the ones who are constantly learning more. Even if you have an advisor, understanding how your wealth is managed builds confidence, and that confidence makes it easier to stay the course when markets get noisy. With that in mind, let's talk about a few things worth paying attention to this month. A proposed federal rule would bring investments like private equity and real estate into the roughly $12 trillion 401(k) market for the first time. That's a meaningful change for anyone with material wealth inside a retirement account. A lot of people will hear this news and wonder what to do with it. Our clients won't have to. Our team is already thinking about where these new investment options can add value inside the 401(k)s we already manage for clients. That's the advantage of working with a firm that prides itself on staying ahead of the curve. That same principle — knowing what's happening before it matters — also applies to your tax picture. Too many people think about taxes once a year, when they file in April. We think about taxes year-round. Decisions like where your assets are held, how they’re invested, and when gains are realized compound over time, matter. We do tax planning year-round, with a team that includes nine CFAs, eight CPAs, and thirteen CFPs. This combination means the people managing your investments are talking directly to the people planning for your tax events, a feat of coordination that’s rare in our industry, and one way we strive to help our clients keep more of what they earn. Taxes are one lever. Geography is another. And right now, the case for owning stocks outside the U.S. is stronger than most investors realize. Money has been flowing into international markets at a significant pace this year, including $32 billion into emerging market ETFs. According to data from BlackRock, most U.S. investors have roughly three-quarters of their stock portfolio in American companies. A balanced approach, one that includes meaningful international exposure, is a pillar of our client portfolios because we see diversification across geographies as part of a sound long-term plan. When you’re paying attention to the right things consistently — whether it be tax planning, the global market exposure, or long-term discipline — clients notice, and there’s an impact. Foster & Motley recently crossed $3 billion in assets under management, serving over 800 families across 39 states. These are milestones that belong as much to our clients as they do to us. We're grateful to every person and family who has been part of this journey. Your confidence is what drives everything we do. As we look ahead, we're more focused than ever on making sure your trust is rewarded through careful, forward-thinking work on your behalf. And if you're someone who's been looking for that kind of partnership, we’re always here to talk. Betsy Wolking, MSM Wed, 15 Apr 2026 12:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42204 https://www.fosterandmotley.com/insights/2026/04/02/market-update#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42249 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42249&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2026/04/02/market-update "The implications of developments in the Middle East for the U.S. economy are uncertain." - Fed Chairman, Jay Powell, 3/18/26 Economic and market conditions were already uncertain before hostilities in Iran: Policy volatility was high, especially around tariffs and Fed independence. Inflation remained “sticky”, putting additional Fed accommodation in doubt. Markets weighed the prospect that AI may radically enhance productivity against AI’s potential cost in terms of lost jobs and capital consumed. The labor market has been softening. Federal debt just reached $39 Trillion as interest on that debt surpasses defense outlays. Now add to this mix a conflict which exceeds the intensity and regional scope of most other US military involvement since the operations in Iraq that began in 2003. Markets focus on the war and particularly on the status of the Strait of Hormuz. As market pullbacks are an occasional part of equity investing, it would be unusual if these events didn’t result in a correction. Most US stock indexes briefly touched or approached a 10% correction, but by the end of the quarter, both the S&P 500 and the Russell 3000 Index recovered a bit and were each down about 5% from their close on Friday, 2/28, the day before hostilities started. March was the worst month for stocks in four years. For the full first quarter, the Russell 3000 stock index returned -3.95%. Yet this market reaction may indicate nothing about the future. Consider some history: More than a decade ago, a CFA study found that US stock markets performed a little better in wartime than in peacetime (1926-2013). Moreover, and even more counterintuitive, volatility was also lower. A recent RBC Wealth Management study of 20 significant conflicts since WWII (not all with US involvement), found that on average, the S&P 500 fell 6% from initial market impact to market bottom. Moreover, in 90% of these episodes - 18 of the 20 events - the market recovered to its previous high within a month after the trough. One of those two events that fell outside the pattern was when Iraq invaded Kuwait and seized its oilfields in 1990. In that case, stocks fell about 16% and it took just over four months and a US-led intervention, Operation Desert Storm, to recover to prior highs. That was non-trivial, but in the broader scheme, was not much of a speedbump for even a moderately patient investor. The other event in the last 80 years in which the pattern failed, and failed significantly, requires more attention: it was the October 1973 Yom Kippur War and subsequent OPEC oil embargo, and that was a different experience altogether. As an outgrowth of that conflict, oil prices quadrupled, the economy experienced a 17-month-long recession, inflation soared to over 11% in 1974, wage and price controls were enacted, there were gas lines and rationing, and through it all, the Watergate scandal played out, ending in the Nixon resignation. Stocks fell about 48%, most having been quite expensive by most measures before the embargo. This event didn’t correspond to a war with direct US involvement, but it is notable as it started with an oil spike related to hostilities and was one of the three worst periods for US stocks for which we have good records. This year, crude oil prices have approximately doubled but so far that’s well short of the kind of price move that occurred in 1973-74. And markets don’t expect anything approaching that scale. In fact, while near-term oil futures are trading at about $100/bbl., oil for delivery next March trades under $70/bbl. now. Also, the US was a net oil importer in the 1970s and is a net exporter now. Moreover, oil consumed per unit of GDP is much lower today than 50 years ago. There are still many ways in which the economic outlook could materially deteriorate. But given where things now stand, we see little reason to expect anything very different than the typical post-WWII market reaction to a war. On the other hand, while war has historically not been a long-term drag on stocks, it has typically been bad for inflation, and hence bad for bonds. Inflation during wartime has run 1.4% per year higher than the overall average, and that is not good for bonds. The Organisation for Economic Co-operation and Development (OCED) recently raised its inflation outlook for the US in 2026 from 2.8% to 4.2%. S&P Global now expects 4% inflation this year. Underscoring these views, 10-year Treasury yields edged up from 3.96% on 2/27 to 4.31% at the end of the quarter. We’re more concerned about long-term economic pressures than the effects of war, which tend to be shorter-term in nature. In this case, the trends align. Federal debt has grown beyond any likely fixes other than money creation, which would drive inflation. AI’s growth, while promising, would continue to increase electricity consumption, pressuring prices. Demographics in the developed world don’t favor growth. And now war-related supply chain disruptions are impacting not just oil markets, but aluminum and fertilizer too. There is much uncertainty and considerable market angst now. But one thing modestly improved last month: market valuations. Aggregate stock market earnings are still expected to rise in low double digits this year (up from about a 10% increase last year). Couple that with the fact that so far this year, the Russell 3000 Growth index (the most expensive part of the US stock market) was down nearly 10% in the first quarter, and we are beginning to see some improvement to valuations where it was most needed. Markets are not yet cheap, and they may not get cheap this cycle, but they are less overvalued than before (especially in the market’s most expensive pockets) and that has slightly positive implications for long-term stock returns. We previously wrote about how broad diversification helped last year even though it was a strong year for stocks as small US stocks performed better than large stocks, international stocks did better than US markets, and market risk hedges and real assets each did well. In spite of a very different environment in the first quarter of this year, each of those themes continues in 2026: small stocks, international stocks, value stocks, and diversifying asset classes are each outperforming so far this year. The net result is managed portfolios are weathering this year’s storm relatively well. We should also mention private credit which is in the middle of a storm of sorts right now. Private credit has been a great performer for several years, but is currently experiencing some credit and liquidity issues. Importantly, those issues do not seem to be “systemic” (as was the case with sub-prime mortgages in 2008). We have very modest exposure to this type of private credit amounting to one-fourth of one percent of managed portfolios in the aggregate. That kind of conservative sizing makes periodic credit issues essentially a non-event for portfolios. Going forward, we will continue to rebalance, which allows market volatility to benefit portfolios, and we will maintain broad diversification not just within stock holdings but among different asset classes and currencies. More inflation for longer looks to be the most likely long-term economic outcome, so while we see more risk than upside in market timing shifts, even with bonds, we do see more advantage in shorter bonds than longer in this environment. We design portfolios to weather the inevitable storms, not to try to steer around them. That allows us to resist the urge to let headlines dictate long-term decisions. Long history has proven that to be a good course to follow. Mark Motley, MBA, CFA Thu, 02 Apr 2026 15:48:00 GMT f1397696-738c-4295-afcd-943feb885714:42249 https://www.fosterandmotley.com/insights/2026/03/18/beyond-the-headlines#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42203 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42203&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2026/03/18/beyond-the-headlines Connecting What’s Happening to What Really Matters   Markets are reacting to geopolitical tensions, prediction markets are booming, and conversations around legacy planning are becoming more important than ever. In this edition of Beyond the Headlines, Zach Horn connects what’s going on in the world—from energy volatility to March Madness—to a bigger idea: why thoughtful planning matters more than short-term predictions when it comes to building long-term wealth and legacy. Sources: https://finance.yahoo.com/news/prediction-markets-grew-4x-63-140103455.html https://www.wealthsolutionsreport.com/study-evolving-client-expectations-are-reshaping-the-role-of-legacy-and-estate-planning/ https://www.cerulli.com/press-releases/cerulli-anticipates-124-trillion-in-wealth-will-transfer-through-2048 Don't want to watch the video? Here’s the transcript you can read instead:  Hello, I’m Zach Horn, managing partner and president of Foster & Motley. Recent geopolitical developments involving Iran have added a new layer of uncertainty to global markets. Heightened tensions have driven volatility in energy markets, with oil prices moving higher on concerns around supply disruption, and equity markets responding with increased short‑term volatility as investors reassess inflation and growth risks. While these dynamics can create near‑term market noise, they do not change our long‑term investment discipline. We will share a more detailed perspective on these developments and their broader market implications in our upcoming quarterly market commentary. On a lighter note, it's now March, which means one thing for a lot of people: brackets. I love watching college basketball and the excitement of a buzzer beater win for a team you picked to advance.  What it comes down to is sixty-eight teams, one champion, and millions of people convinced they've figured it out. But March Madness brackets aren’t the only game in town this year. Prediction markets have exploded, growing to more than $63 billion according to blockchain security firm CertiK. Platforms like Polymarket and Robinhood now let you bet on sports, elections, economic data, you name it. We have gotten some questions about this. And we're not here to say it's not entertaining, but let’s be clear: betting isn’t investing. It’s short-term speculation with no fundamentals, no compounding, no long-term wealth being built. Planning beats short-term predictions every time. Because you can't compound a bracket win, but you can compound a legacy. And when it comes to legacy planning, there's a gap between what clients want and what some advisors are actually doing. A recent study by Wealth.com and Compound Insights found that nearly half of people who plan to transfer assets want to do it while they're still alive, not just through a will or trust after they’re gone. And yet, 37% of advisors wait for their clients to bring up this topic first. An important part of our work with clients is to have these conversations. Estate and legacy planning are topics we initiate, whether it means working with adult children or facilitating family meetings to make sure your plan reflects what you actually want, not just what fits neatly in a standard document. Those legacy conversations matter especially right now, because the landscape of who holds and manages wealth in this country is shifting fast. Female owned investable assets are on track to more than double, reaching $34 trillion by 2030, according to market research firm Cerulli Associates. A big part of that comes down to longevity: women outlive men by about six years on average, which means more years of making financial decisions independently We continually stress the importance of both spouses or partners being informed about personal finances. About 20% of our clients are single women navigating major life transitions like divorce, widowhood, retirement, and inheritance. We know generic advice doesn't cut it. What makes a difference is someone paying attention to your whole life, not just your accounts. The difference between a bet and a plan is what happens after you make it. A plan stays with you — shaped around your life, supported by someone you trust, and oriented toward the long term. That's what we build with every client. If you want to talk more about your legacy plan, what wealth transfer means for your family, or to schedule a family meeting, reach out. That’s what we’re here for. On behalf of everyone at Foster & Motley, thank you for your trust and partnership. Betsy Wolking, MSM Wed, 18 Mar 2026 14:18:00 GMT f1397696-738c-4295-afcd-943feb885714:42203 https://www.fosterandmotley.com/insights/2026/03/04/megan-lyons-talks-about-unclaimed-funds-on-cincinnati-edition#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42199 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42199&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2026/03/04/megan-lyons-talks-about-unclaimed-funds-on-cincinnati-edition Megan Lyons recently joined Cincinnati Edition to discuss the surge in Ohioans searching for unclaimed funds. Along with host Lucy May and fellow guest Karen Kasler, Bureau Chief of the Ohio Public Media Statehouse News Bureau, Megan explores how to determine whether you may be owed money and walks listeners through practical steps for checking state databases. The group also offered insight into why staying aware of your financial footprint matters and the broader debate around how unclaimed funds could be allocated across the state. Tune in to hear Megan’s perspective. Betsy Wolking, MSM Wed, 04 Mar 2026 17:09:00 GMT f1397696-738c-4295-afcd-943feb885714:42199 https://www.fosterandmotley.com/insights/2026/02/18/beyond-the-headlines#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42181 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42181&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2026/02/18/beyond-the-headlines Connecting What’s Happening to What Really Matters As we get further into 2026, markets are navigating change—but opportunity remains. In this update, Zach Horn shares perspective on a shifting dollar, thoughtful global diversification, the powerful momentum behind AI, and why steady guidance and long-term relationships continue to be a meaningful advantage for investors. Watch the full video to learn more about how AI is reshaping the economy, how to protect against the weakening dollar, and to learn what we believe can never be replaced by AI.  Sources: https://www.cnbc.com/2026/02/09/alphabet-highlights-new-ai-related-risks-in-tapping-debt-market.html https://finance.yahoo.com/news/amd-ceo-lisa-su-says-ai-data-center-market-will-be-worth-1-trillion-by-2030-192809510.html  https://www.nasdaq.com/articles/dollar-pressured-weakness-us-economic-news  https://www.wealthmanagement.com/ria-news/advizorpro-more-advisors-left-the-industry-than-joined-in-2025  https://www.mckinsey.com/industries/financial-services/our-insights/the-looming-advisor-shortage-in-us-wealth-management  Don't want to watch the video? Here’s the transcript you can read instead: Hello, I’m Zach Horn, managing partner and president of Foster & Motley. The start of 2026, while overall positive, has been a little unsettled with markets trying to find their footing. One theme that’s carried over from last year is a weakening US dollar, driven by expected interest rate cuts, potential new tariffs, and the country's growing budget deficit. So we want to take a step back and look at two things. First, the dollar remains the world's reserve currency—the currency other countries trust and use for global trade. We don't see this changing. And when markets feel uncertain, remembering the dollar’s long-term stability can help avoid reactive decisions. That said, short-term volatility in the US currency may not be going away anytime soon. And if it continues, you may start to feel it, whether it’s in the cost of imported goods or if you're traveling internationally. One way to help protect against short-term weakness is making sure you have some international exposure in your portfolio. If our currency keeps declining, diversification can be key to smoothing things out. Now, let's talk about AI, because it's impossible to ignore right now. The industry’s acceleration has been remarkable. Google announced it's pouring billions into AI development this year alongside other major tech giants, and AMD CEO Lisa Su noted that some forecasts put the AI data center market could exceed a trillion dollars by 2030. For investors who believe in this technology, like our team at Foster & Motley, the smart approach isn't to concentrate your investment into one or two companies. It's to spread investments across the broader technology sector to limit concentration risk. Internally, we’re also seeing the benefits of AI as a tool that makes us more efficient, and we think it'll do the same in the global economy. But here's what AI will never replace: the human relationships at the center of your financial life. Unfortunately, in today’s digitally-driven world, personal financial relationships are harder to come by. The wealth management industry is losing experienced professionals faster than it can replace them. According to recent data from AdvizorPro, last year alone, over 57,000 retiring advisors left the profession — 4,000 more than entered it. And by the mid-2030s, estimates suggest 40% of all advisors could be retiring. This leaves many people wondering who will manage their wealth in the coming decades. At Foster & Motley, we’ve been thinking about longevity and continuity for years. Our succession plan is strong, with broad ownership and a focus on continually bringing in new talent to work alongside our most experienced people. And as an employee-owned firm, the decisions we make are for our clients and lasting relationships, not for corporate shareholders. We're grateful to serve you, and we know that in times of uncertainty as well as times of opportunity, having trusted advisors who are here for the long haul matters. Markets change, but our commitment to you doesn't. On behalf of everyone at Foster & Motley, thank you for your trust and partnership. Betsy Wolking, MSM Wed, 18 Feb 2026 14:16:00 GMT f1397696-738c-4295-afcd-943feb885714:42181 https://www.fosterandmotley.com/insights/2026/01/21/ohio-business-magazines-ohio-500-includes-mark-motley#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42144 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42144&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2026/01/21/ohio-business-magazines-ohio-500-includes-mark-motley We’re proud to share that Mark Motley, MBA, CFA, has once again been named to Ohio Business Magazine’s Ohio 500 list, marking his fourth year in a row receiving this recognition. Mark is a co-founder of Foster & Motley and serves as co–chief investment officer, shareholder, and investment manager. According to Ohio Business Magazine editors, “this feature is more than a list of people—it’s a look at what leadership means in the state of Ohio.” Congratulations, Mark, on this well-deserved and continued recognition!   Ohio Business Magazine asked readers to fill out an online survey, spoke with their partners, reached out to community leaders, and did their own research to create the 2025 Ohio 500. Being recognized does not imply any correlation to the quality of service. Foster & Motley paid no fees to be included and had no influence on the criteria for this recognition. View the full list of honorees here. Betsy Wolking, MSM Wed, 21 Jan 2026 19:11:00 GMT f1397696-738c-4295-afcd-943feb885714:42144 https://www.fosterandmotley.com/insights/2026/01/21/beyond-the-headlines#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42143 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42143&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2026/01/21/beyond-the-headlines Connecting What’s Happening to What Really Matters As we close out 2025 and look ahead to 2026, Managing Partner Zach Horn reflects on a year marked by market volatility, resilience, and strong long-term results. He shares market insights, firm milestones, and what Foster & Motley is focused on next. Watch the full video for perspective on navigating uncertainty and building toward long-term goals with confidence. Disclosures for rankings mentioned:  The CNBC FA 100 list was released on October 1, 2025. Foster & Motley provided data as of June 30, 2025, to be considered. The Cincinnati Business Courier Book of Lists: Top 25 Largest Money Managers, locally based list, was published on September 5, 2025. The Cincinnati Business Courier uses publicly available data to generate this list. FA Magazine Annual RIA Ranking was published in the July/August 2025 edition of Financial Advisor Magazine. These organizations independently set the criteria, and Foster & Motley has no influence on the criteria or the ranking. We paid no fees to be included.  Don't want to watch the video? Here’s the transcript you can read instead:  Hello, I’m Zach Horn, Managing Partner and President of Foster & Motley. We have closed out 2025 and are looking ahead to a new year. I want to take a few minutes to reflect on the markets, share some highlights from our firm, and talk about what we’re focused on as we enter 2026. This past year reminded us that long‑term, disciplined investing matters — especially during periods of uncertainty. In the spring, markets experienced significant volatility, including a nearly nineteen percent pullback for US stocks as tariff uncertainty weighed on investors. It was a clear reminder that even sharp corrections are a normal part of investing, and that patience pays off. Later in the year, the Federal Reserve began easing interest rates. Those rate cuts helped support risk assets, restored some optimism, and contributed to a strong finish for both stocks and bonds. By year‑end, U.S. equities delivered solid double‑digit returns, global markets performed extremely well, and diversified portfolios benefited from those contributions outside the U.S. International equities, emerging markets, and fixed income all played important roles in helping portfolios weather volatility throughout the year. Beyond the markets, 2025 was an important year for our firm. We grew our Foster & Motley family as we welcomed six new team members and we were thrilled to have five members of our team grow their families with new additions. We completed a major office expansion and renovation, adding over three thousand square feet to allow for our continued growth, enhance collaboration, and support exceptional client service. We were grateful to continue welcoming new clients, many through referrals from clients and professional partners. Your trust is the foundation of our work, and we don’t take that for granted. We were honored to be included on the CNBC Financial Advisor 100 list for the seventh consecutive year, as the only Cincinnati‑based firm recognized. We were listed in the Cincinnati Business Courier Book of Lists as one of the top 25 largest money managers locally. And we were included in the Financial Advisors Magazine annual registered investment advisors ranking as a top firm nationally. As we look ahead to 2026, we begin the year with optimism, discipline, and a continued focus on helping clients navigate uncertainty while building toward long-term goals. We continue investing in tools and platforms that scale and support or services while maintaining a customized approach to both investment management and financial planning. And we maintain a continued emphasis on developing a dedicated, caring, and credentialed team that delivers exceptional client service. On behalf of everyone at Foster & Motley, thank you for your trust and partnership. We wish you a happy, healthy, and fulfilling 2026. Betsy Wolking, MSM Wed, 21 Jan 2026 15:40:00 GMT f1397696-738c-4295-afcd-943feb885714:42143 https://www.fosterandmotley.com/insights/2026/01/06/market-update#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42130 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42130&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2026/01/06/market-update “So foul and fair a day I have not seen” Macbeth Act I, Scene 3 Welcome to 2026! To get our bearings, we look back at the year that has passed, and 2025 was a great year for markets broadly. The Russell 3000 Index of US stocks returned 17.16%. That was a little short of a third 20%+ year in a row, but with a weak dollar and stronger international stocks, our global stock index returned over 21% in 2025 and our managed global stocks compared well with that. Inflation hedge holdings and market risk hedges each performed exceptionally well. Bond indexes returned both more than their blended coupon interest rates and about as much as we expect from stocks in an “average” year. The one weaker spot in portfolios, which was not terrible, was real estate coming in with low single-digit, yet positive, returns. Yet, the US economy is a mixed bag. Recently reported third quarter GDP growth of 4.3% above inflation was a strong surprise. On the other hand, employment growth has been weak, and the overall unemployment rate in November at 4.6% was its worst since 2021. Inflation and monetary conditions are similarly mixed. The Core Personal Consumption Expenditures Price index, which is the Federal Reserve’s favorite inflation measure, rose 2.9% in the third quarter, up from 2.6% in the second quarter. That’s both rising and above the Fed’s 2% target. Yet in December, the Fed cut interest rates and announced a new round of monetary easing.  Perhaps there is meaning in these apparent contradictions. Strong economic growth coupled with weak employment growth could imply anticipation of AI productivity gains is depressing demand for workers even amid growth (which is in fact occurring per some accounts). As to the Fed, while its stated inflation target is 2%, Fed actions imply that something higher than 2%, and perhaps as much as 3%, is the Fed’s new, though unexpressed, inflation target. Combined, those seeming paradoxes could portend an extended period of pesky inflation, elevated profit margins, continued economic growth, and yet persistently weaker employment growth. Copper prices were up 39% last year, so we also note that “Dr. Copper” seems to agree with an expectation for continued economic strength coupled with elevated inflation. We don’t know if that will occur, but those fundamental conditions would not be bad for stocks. The other side of the positive view for stocks remains valuations. The inimitable Warren Buffett just retired, so we’ll dust off his “Buffett Indicator” of general stock market valuations in homage: the ratio of total US stock market value to GDP. In 2001, Buffett said when that ratio “approaches 200% - as it did in 1999, and in part of 2000 – you are playing with fire.” Today, that measure at 230% looms even higher (and, reflecting his convictions, Buffett left Berkshire holding as much in T-bills as in stocks). That and a range of other valuation measures combine with unusually high stock market concentration in a few popular holdings to indicate a likelihood of generally below-average stock returns for some time ahead. We speak of this often, but something else that is high relative to GDP is the federal debt, currently sitting at 124% of estimated GDP. For context, that measure peaked near 120% at the end of WWII, averaged under 70% from the 1960s through 2012, and peaked again at 125% in 2020 with COVID disruptions. Very high levels of federal debt to GDP can be ignored for a time, possibly, for quite some time, but must eventually be addressed, most likely through currency debasement via higher inflation (since the other options of either default or federal fiscal prudence each appear far less likely). It may also seem we’re referencing inflation a lot. That would be because we are. The reference in this paragraph is the 11th so far. That’s partly because it’s currently the top-of-mind economic concern for the country, referred to now by the political classes as “affordability.” Not all, but much of that concern centers on housing affordability, which sits at the intersection of home prices, mortgage interest rates, and household income levels. You have likely heard much talk about affordability (and with the mid-term elections, you’ll likely hear much more this Fall), but you may not have seen the data. Here it is (from Bankrate.com through 2024, and estimated by Google’s AI for 2025): This makes it clear that the post-COVID period of 2021-2023 was an extremely bad period for home affordability, and that it improved a bit in 2024. But it turned up again last year and hit a new peak, so it remains a near-term concern. Moreover, if we add about $300/month for average property taxes, and another $200/month for homeowner’s insurance, this implies the average cost of a house exceeds $2,800 per month, or nearly $34K per year. Mortgage lending guidelines used to call for housing costs to not exceed 25% of gross household income, but that has lately been relaxed to 28% of pre-tax income or more. That implies household income approaching $121K per year is needed to afford an average house. With median household income in the mid-$80,000s, that’s a problem which manifests in many ways, including that the average age of the first-time homebuyer hit 40 last year, up from 31 just ten years ago. As home ownership has always been a key element in the American Dream, lack of attainability for many just increases the gap between the haves and the have-nots. With homes priced out of reach for so many, one would think demand for homes would be low and supply high. Not so: the US inventory of existing homes for sale is on the low side of the historical range over the past 25 years. While this may bode well for homebuilders, an even stronger bet may be on looser lending standards, lower down payment requirements, and the advent of 50-year mortgages which imply that while a mortgage crisis may not be at hand, its seeds are perhaps being planted today. Market strategists obsess about whether the AI boom will continue apace given numerous challenges and circular financing among the top incumbents, and when its valuation bubble may pop. But here’s a much nearer-term potential problem that, while well-known, seems to have all but disappeared from worry lists: The US Supreme Court is expected to hand down a ruling on the Constitutionality of last year’s tariffs in weeks or even days. Most legal opinion on the law by which the administrative exception was made as well as the comments of justices during oral arguments indicate they might be overturned. We are uncertain of the amount involved so far but estimates range in the hundreds of billions of dollars in taxes already collected. It may seem now like a distant memory, but markets didn’t take kindly to the tariff impositions last Spring, as the S&P 500 Index fell nearly 19% in 48 days from mid-February through early April. We don’t know how markets may respond to tariffs being overturned by the Court, but we should mentally prepare for a reaction that may be just as sharp, ugly, and hopefully as brief.  Geopolitical surprises have been more frequent and now comes Venezuela. The largest potential near-term market impact could come in a strong reaction from China which has greatly increased its footprint in the region recently (and restricting rare earth minerals exports to the US seems to be its go-to move). We’ll see.  2026 is a mid-term election year, and that year in the 4-year presidential cycle has historically included the largest corrections of the four, averaging -17.5%. Moreover, while historically, stocks have risen on average seven or eight individual years out of ten, after three up years in a row, the odds of that being followed by another up year have historically dropped to only one out of two. That’s not bad, it’s just far worse than usual. International stocks and small stocks continue to look relatively compelling while mega-cap US stocks and long-term bonds appear to embody the most potential risk now.  So, welcome to 2026! We very much hope it’s a dull ride, but we recognize it may be an “interesting” one as we diligently work within tax constraints to squeeze out unnecessary portfolio risk and improve portfolios’ resilience in multiple ways. Mark Motley, MBA, CFA Tue, 06 Jan 2026 20:36:00 GMT f1397696-738c-4295-afcd-943feb885714:42130 https://www.fosterandmotley.com/insights/2025/12/15/foster-motley-named-to-worths-top-ria-firms-2025-list#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42159 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42159&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2025/12/15/foster-motley-named-to-worths-top-ria-firms-2025-list We’re pleased to share that Foster & Motley has been named to Worth’s Top RIA Firms 2025 list, recognizing leading independent registered investment advisory firms nationwide. This recognition reflects our team’s continued focus on delivering thoughtful financial planning, objective advice, and a client-first approach to wealth management. We’re proud to be included alongside firms that demonstrate a strong commitment to serving high-net-worth individuals and families. Click here for the full list. This list was published in the Fall 2025 issue of Worth Magazine. Publicly available data was used. Foster & Motley paid no fees to be included. Worth magazine independently sets its criteria, and Foster & Motley has no influence on the criteria or the ranking. Below is the methodology for this list, per Worth magazine’s website: The core value of the Leading Advisor program to our readers lies in its rigorous selection process and the credibility it bestows upon each listed advisor. Featured Registered Investment Advisor firms has successfully cleared stringent benchmarks: AUM of Over $500 Million: Demonstrates substantial experience and trust in handling significant wealth. Predominantly High-Net-Worth Clients: Shows specialized expertise in managing the complex financial situations typical of wealthier clients. Substantial Planning Clientele: Indicates a focus on comprehensive financial planning rather than simple asset management. Independence from Broker-Dealers: Ensures advice is unbiased and purely client-centric. The rankings were developed in collaboration with Institutional Shareholder Services (ISS), a proxy advisory firm that helps investors comply with SEC rules for ADV Forms disclosure of proxy voting records. Betsy Wolking, MSM Mon, 15 Dec 2025 15:28:00 GMT f1397696-738c-4295-afcd-943feb885714:42159 https://www.fosterandmotley.com/insights/2025/10/01/cnbc-recognizes-foster-motley-in-fa100-list-for-7th-consecutive-year#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41790 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41790&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2025/10/01/cnbc-recognizes-foster-motley-in-fa100-list-for-7th-consecutive-year We are proud to share that CNBC has recognized Foster & Motley as one of the nation’s 100 top-rated financial advisory firms of 2025! It is the seventh consecutive year the firm has earned a spot in the annual ranking, and Foster & Motley is the only local company to make the list for seven years straight. At 31 in the ranking, Foster & Motley is in the top 1% of the 40,563 RIA firms from the Securities and Exchange Commission regulatory database. Read the article on CNBC.com and view the full list HERE. The 2025 CNBC FA 100 list, released on October 1, 2025, was compiled using a proprietary methodology developed by CNBC in collaboration with data provider AccuPoint Solutions. Foster & Motley provided firm data as of June 30, 2025. Foster & Motley paid no fees to be included in this ranking. CNBC and AccuPoint Solutions applied the weighting for each category to further refine and rank the firms. The rankings consider many factors such as assets under management (AUM), years in business, number of certified financial planners, and the number of employees, among others. The full list and methodology can be found at CNBC.com/FA100.   See Foster & Motley's disclosure for additional details on CNBC and AccuPoint Solutions’ selection criteria.  Betsy Wolking, MSM Wed, 01 Oct 2025 12:38:00 GMT f1397696-738c-4295-afcd-943feb885714:41790 https://www.fosterandmotley.com/insights/2025/09/30/market-update#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41788 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41788&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2025/09/30/market-update “There are no risk-free paths now.” - Jay Powell, 9/17/25  “Was that the rattling of Sabers or the Cool September Wind?” - “1968” by The Turnpike Troubadours Markets got a long-anticipated interest rate cut from the Federal Reserve last month, taking the Fed out of “pause” mode and firmly into an “easing regime,” invoking a “don’t fight the Fed” stance in most market participants.  The Fed is that institution whose primary job seems to be to periodically rescue us from crises of its own creation. (Its staff of 25,000 includes over 400 PhD economists: answering the riddle: “How many economists does it take to change an interest rate?”) In spite of unwelcome political pressure on the Fed, markets themselves tell us the Fed Funds rate was too high and remains so – the interest rate on the 2-year Treasury note (set by markets) remains about 0.5% lower than the Fed Funds rate (set by the Fed) after the cut. Interest rate changes generally come in bunches, not in “ones,” so we may reasonably expect more. Barring a surprise economic decline or outbreak of a new war, periods of Fed easing represent low risk periods for markets in the near-term. Moreover, the calendar is soon to enter the best six-month period of seasonality for stocks.  The Other Side of the Coin What’s not to like for now? For one, stocks have already priced in lots of good news – is it possible the full series of rate cuts is already priced in? The price-to-earnings ratio of the S&P 500 based on actual reported trailing earnings moved above 30x recently. That compares to a 30-year average of 23x. Levels above 30 have been rare, occurring on only three occasions, each either a period of distress (i.e., of collapsing earnings in the Global Financial Crisis of 2008-9, or the COVID Pandemic in 2020), or of euphoria (the Dot-Com Bubble). If rate cuts portend clear skies in the near-term, euphoric valuations may herald storm clouds in the distance. Beyond monetary policy and market valuations, as Chairman Powell noted, this is an unusually tricky period for the economy with international disruptions and unusual uncertainty about inflation. Moreover, regarding multiple threats of war, we may have become inured to the frequent sound of saber rattling, but that doesn’t mean threats should be ignored. Additionally, as you’ve heard, a federal budget was not resolved in time, shutting down the government, and who knows what that will mean or how long it may persist. A new wrinkle pertains to the costs of datacenter buildouts for AI. AI may bring the productivity boost needed to avoid an entitlements spending government debt implosion, but it comes with its own significant risks. Newly announced megadeals raise eyebrows not solely because of the massive amounts of money involved, but because the financing seems circular, in which A buys chips from B, and B invests in A, providing the very funds with which to buy the chips. It’s much more convoluted than that, and not limited to chip purchases, but includes payments for access to AI, leases for data centers, etc. But the dollar amounts are massive, and it raises the question: where will these funds really come from? Market volatility, when it comes, arrives swiftly and unexpectedly, as we witnessed during this April’s trade war scare that sent market volatility soaring. While that episode passed relatively quickly, it serves as a reminder that today's calm can become tomorrow's storm with little notice. Portfolio Positioning Paced by international equities, this has been a good year for managed investment portfolios.  But bargains are scarce, and we are tightly focused on tilting portfolios toward resilience rather than chasing the last gains of what may be a maturing cycle.  As we've learned repeatedly, uncertainty and occasional market downdrafts – even sudden and large ones – cannot be avoided or anticipated. Foster & Motley doesn't attempt to predict the unpredictable. Instead, we build portfolios designed to survive such uncertainty without permanent damage. Let’s enjoy this phase while it lasts but know that this is not a new or permanent “normal,” and it will eventually change, likely suddenly and without warning. As change is the dominant market feature, all-weather portfolios are what we seek, not just portfolios optimized to thrive in good times. Mark Motley, MBA, CFA Tue, 30 Sep 2025 17:41:00 GMT f1397696-738c-4295-afcd-943feb885714:41788 https://www.fosterandmotley.com/insights/2025/09/29/foster-motley-ranked-among-top-rias-by-fa-magazine#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41786 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41786&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2025/09/29/foster-motley-ranked-among-top-rias-by-fa-magazine We are excited to announce that Foster & Motley was ranked among the top 170 firms in the nation in Financial Advisor Magazine’s 2025 Annual RIA Ranking. This list was published in the July/August 2025 edition of Financial Advisor Magazine. Read FA Magazine’s 2025 RIA Survey & Ranking article and download a copy of the list HERE. Each year, Financial Advisor (FA) magazine invites Registered Investment Advisors to complete a survey for inclusion in this national ranking. The specific criteria for the ranking are not included in their summary article. Foster & Motley completed a survey to be considered and pays no fees to be included. According to FA Magazine, 366 firms were ranked in 2025, listed by assets under management. FA magazine independently sets its criteria, and Foster & Motley has no influence on the criteria or the ranking. Betsy Wolking, MSM Mon, 29 Sep 2025 14:28:00 GMT f1397696-738c-4295-afcd-943feb885714:41786 https://www.fosterandmotley.com/insights/2025/09/08/foster-motley-featured-in-cincinnati-business-couriers-2025-book-of-lists#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41781 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41781&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2025/09/08/foster-motley-featured-in-cincinnati-business-couriers-2025-book-of-lists Every year, the Cincinnati Business Courier surveys companies across the region and compiles data necessary to rank companies for the Book of Lists. Foster & Motley was included in the Cincinnati's Largest Money Mangers, locally based list for 2025, which was published on September 5, 2025. Summary of ranking methodology: The rankings are based on each firm’s Assets Under Management. Foster & Motley pays no fees to be included in the ranking. It is not the intent of the Cincinnati Business Courier to endorse or list participants or imply that rank has any correlation to the quality of service. For a detailed list of firms ranked, please Click here. Betsy Wolking, MSM Mon, 08 Sep 2025 18:24:00 GMT f1397696-738c-4295-afcd-943feb885714:41781 https://www.fosterandmotley.com/insights/2025/08/27/what-do-strategic-career-changes-educational-investments-and-major-life-decisions-have-in-common-with-the-foster-motley-team#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41983 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41983&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2025/08/27/what-do-strategic-career-changes-educational-investments-and-major-life-decisions-have-in-common-with-the-foster-motley-team In this episode, Foster & Motley team members reflect on the best financial decisions they've ever made and how, in many cases, that led them to Foster & Motley. From early lessons in discipline and risk-taking to career pivots and personal milestones, each story highlights the deep connection between financial decisions and life outcomes.Our guests are Elizabeth M. Green, CFA, Investment Manager and Shareholder; David J. Nienaber, MBA, CPA, CFP®, Financial Planner and Shareholder; Thomas J. Guidi, CFA, Investment Manager, Co-Chief Investment Officer and Shareholder; Zachary T. Horn, MBA, CFP®, CMFC®, Managing Partner/President, Investment Manager and Shareholder; Rachel A. Rasmussen, MBA, CFA, CDFA®, Investment Manager and Shareholder; and Zach T. Binzer, CFP®, Financial Planner and Shareholder. Each shares personal insights that have shaped their journeys.Key Takeaways:(00:44) The impact of learning smart money habits early.(02:26) How career paths are often shaped by personal relationships.(03:40) The long-term benefits of taking calculated financial risks.(07:40) The value of aligning financial decisions with family priorities.(09:11) The financial advantages of building a life with a partner.(10:17) How investing in education can create career momentum.(14:31) The role of mentorship and support in professional growth.(17:31) The importance of seeking fulfillment alongside financial goals.(19:35) How past experience can support a successful career transition.Resources Mentioned:Foster & Motley, Inc. | Websitehttps://www.fosterandmotley.com/Chartered Financial Analyst (CFA) Programhttps://www.cfainstitute.org/programs/cfa-programXavier University MBA Programhttps://www.xavier.edu/master-of-business-administration/Certified Financial Planner (CFP) Designationhttps://www.cfp.net/get-certified/certification-processUniversity of Dayton MBA Programhttps://udayton.edu/business/Connect with Elizabeth Green, David Nienaber, Thomas Guidi, Zachary Horn, Rachel Rasmussen and Zach Binzer:info@fosterandmotley.com+1 513-561-6640Foster & Motleyhttps://www.fosterandmotley.com/LinkedIn: Elizabeth Greenhttps://www.linkedin.com/in/elizabeth-m-green-cfa/LinkedIn: David Nienaberhttps://www.linkedin.com/in/dnienaber/LinkedIn: Thomas Guidihttps://www.linkedin.com/in/thomas-guidi-cfa-21830952/LinkedIn: Zachary Hornhttps://www.linkedin.com/in/zachhorn/LinkedIn: Rachel Rasmussenhttps://www.linkedin.com/in/rachel-rasmussen-cfa-cdfa/LinkedIn: Zach Binzerhttps://www.linkedin.com/in/zach-t-binzer-cfp/LinkedIn: Foster & Motley, Inc.https://www.linkedin.com/company/fosterandmotley/#WealthManagement #FinancialPlanning #InvestmentAdvisory #WealthManagementPodcast Website Administrator Wed, 27 Aug 2025 04:00:00 GMT f1397696-738c-4295-afcd-943feb885714:41983 https://www.fosterandmotley.com/insights/2025/07/22/what-the-one-big-beautiful-bill-means-for-your-taxes#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41728 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41728&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2025/07/22/what-the-one-big-beautiful-bill-means-for-your-taxes Written by Nate Green, CFP®, Emily K. Diaz, MAcc, CPA, CFP®, Joseph A. Patterson, CFP®, and Ryan P. Pollock, CPA On July 4, 2025, the One Big Beautiful Bill (OBBB) was signed into law, bringing with it a host of tax changes that will affect nearly every American household. While the name may be lighthearted, the implications are significant, especially for those focused on long-term financial planning. Our team has reviewed the legislation and is already incorporating its provisions into our financial planning process and conversations. Here’s a breakdown of what you need to know.  Key Provisions Made Permanent from the 2017 Tax Cuts and Jobs Act (TCJA) Lower Tax Brackets: The lower rates will remain in place, with the top bracket holding at 37%. Higher Estate Tax Exemption: The TCJA doubled the estate tax exemption from roughly $5.5M to over $11M, indexed for inflation. This was scheduled to sunset at the end of 2025, with the exemption set to drop by half. With the OBBB, the higher exemption will now be permanent, starting at $15M in 2026, and will be indexed for inflation. Increased Standard Deduction: The higher standard deductions under TCJA will continue, with personal exemptions permanently eliminated.  The deductions are now $15,750 for individuals and $31,500 for joint filers. Other provisions from the TCJA were made permanent, including the Qualified Business Income (QBI) deduction, increased exemption and income phaseouts for Alternative Minimum Tax (AMT), an expanded child tax credit, and a cap on the mortgage interest deduction of $750k of principal. New Senior Deduction and Taxation of Social Security Benefits Senior Deduction: A new deduction of $6,000 per person over age 65 was established and is phased out above income (MAGI) of $75,000 (single)/$150,000 (joint). This will take effect in 2025 and will remain in place through 2028. Note: the Social Security Administration blog posted an article on July 3 noting the OBBB “ensures that nearly 90% of Social Security beneficiaries will no longer pay federal income tax on their benefits.” This post caused some confusion, as the OBBB has not changed the taxation of Social Security benefits. However, when the new $6,000 senior deduction is added to the existing standard deduction ($17,750 for a single filer age 65+), the total $23,750 of deductions would offset the average Social Security benefit of $24,000/year, according to the analysis cited. Notably, this computation does not include any other sources of taxable income. Most Foster & Motley retired clients have taxable income in addition to Social Security benefits to be considered. Because the new senior deduction phases out at income levels exceeding $75,000 (single)/$150,000 (joint), high-income retirees will not be impacted by this new provision. It’s also worth noting that the new senior deduction is available to those age 65 and over (with the above-mentioned income phaseouts), regardless of whether they are yet collecting Social Security benefits. New Provisions SALT (State and Local Tax) Deduction: The OBBB temporarily increases the SALT deduction from $10,000 to $40,000 ($20,000 for Married Filing Separate) and will increase 1% each year. There’s a 30% phaseout for incomes over $500,000, and the deduction reverts to $10,000 in 2030. Trump Accounts: New tax-advantaged savings accounts will be available starting in 2026 for children under 18. These accounts will have an annual contribution limit of $5,000. Employers can also contribute. A $1,000 government-funded contribution will be available for children born between 2025 and 2028. No distributions can be taken until the year the beneficiary turns 18. Funds will grow tax-deferred. Earnings (but not principal) will be taxable upon distribution. -  Note: For clients interested in saving for their children’s or grandchildren’s college, a 529 account offers tax-free growth (if used for education) and has higher contribution limits than the Trump Accounts.  Charitable Deductions: Beginning in 2026, new provisions include: -  Non-itemizers: Those who don’t itemize deductions can claim up to a $1,000 (single)/$2,000 (joint) as a deduction on top of the standard deduction. -  Itemizers: For those who itemize deductions, there is a 0.5% of adjusted gross income floor for charitable gifts. Gifts in excess of the floor are deductible. Other Changes Limitation on Itemized Deductions: Beginning in 2026, itemized deductions are limited to 35% for those in the 37% bracket. Given this change, individuals in the 37% bracket in 2025 may have the opportunity to accelerate deductions from 2026 into 2025 to maximize the 37% deduction. 529 Plans: Tax-free distributions from 529s can now be taken for a broader variety of expenses, including K-12 books & materials, as well as post-secondary credentialing expenses. In 2026, the maximum withdrawal for K-12 expenses will be raised from $10,000 to $20,000 per year. Tip & Overtime Income: New deductions are available for up to $25,000 for tips and $12,500 ($25,000 Joint) for overtime pay. Both are phased out above $150,000 (single)/$300,000 (joint) MAGI. These provisions are effective from 2025 through 2028. Car Loan Interest: Interest up to $10,000 will be deductible for new vehicles assembled in the U.S., regardless of whether the taxpayer itemizes deductions. This benefit phases out above $100,000 (single)/$200,000 (joint) MAGI. This deduction is in effect from 2025 through 2028. Scholarship Granting Organization Credits: Taxpayers can claim a $1,700 non-refundable credit beginning in 2027 for gifts made to Scholarship Granting Organizations. This amount is lowered by any credit claimed at the state level. Premium Tax Credit: For those using the Healthcare Insurance Marketplace, the bill made several changes to eligibility with various effective dates. Green Tax Credits: The sunset of several green credits has been accelerated, with the clean vehicle credit ending 9/30/25 and the energy efficient home improvement credit ending 12/31/25. What This Means for You The OBBB offers both clarity and complexity. For many, it removes the uncertainty of a looming tax cliff in 2026, both for income and estate taxes. For others, it introduces new planning opportunities—and a few new wrinkles. Whether it’s optimizing deductions, planning charitable gifts, or revisiting estate strategies, we’re here to help you make the most of the new landscape. The OBBB contains many provisions, including a number of business tax law changes. This summary focuses on the individual provisions that would most impact Foster & Motley clients. For more information, see this summary and the full text of the bill here. If you have questions about how the OBBB affects your situation, reach out to your financial advisor to schedule some time to review. We’re ready to walk through the details with you. Tue, 22 Jul 2025 12:01:00 GMT f1397696-738c-4295-afcd-943feb885714:41728 https://www.fosterandmotley.com/insights/2025/07/16/how-can-strategic-cash-holdings-strengthen-your-financial-stability-with-thomas-guidi-cfa#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41984 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41984&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2025/07/16/how-can-strategic-cash-holdings-strengthen-your-financial-stability-with-thomas-guidi-cfa Thomas J. Guidi, CFA, Investment Manager, Co-Chief Investment Officer and Shareholder at Foster & Motley, Inc., explains the misunderstood role of cash in financial planning. He outlines how to approach liquidity needs, make the most of different cash vehicles and avoid common pitfalls when managing excess cash. Thomas also explores how advisors can help individuals match their cash strategy with both immediate and future needs, ensuring that every dollar has a purpose.Key Takeaways:(01:31) Maintaining a buffer for expected and unexpected expenses is important.(03:22) Excess cash holdings may limit potential long-term growth.(04:37) Understanding liquidity needs helps determine appropriate financial tools.(06:26) Some cash vehicles may offer higher returns than others.(06:55) Matching the timing of future expenses with investment maturity can be beneficial.(07:41) Risk levels and protections vary across different cash management options.(08:48) Financial professionals can provide guidance in choosing between available options.Resources Mentioned:Foster & Motley, Inc.| Websitehttps://www.fosterandmotley.com/Connect with Thomas Guidi:info@fosterandmotley.com+1 513-561-6640Foster & Motley, Inc.LinkedIn: Thomas J. Guidi, CFAhttps://www.linkedin.com/in/thomas-guidi-cfa-21830952/LinkedIn: Foster & Motley, Inc.https://www.linkedin.com/company/fosterandmotley/#WealthManagement #FinancialPlanning #InvestmentAdvisory #WealthManagementPodcast Website Administrator Wed, 16 Jul 2025 04:00:00 GMT f1397696-738c-4295-afcd-943feb885714:41984 https://www.fosterandmotley.com/insights/2025/07/02/market-update#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41716 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41716&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2025/07/02/market-update “Imagine where the market would be in a world without crisis!” — a comment in Barron’s, June 23, 2025 Markets remained remarkably resilient this quarter despite high and rising uncertainty. Trade concerns we noted last time persist. Eclipsed more recently by war in the Middle East and other matters, they are expected to gather more attention this month. Headline inflation continued to moderate, but tensions in the Persian Gulf could still drive oil prices higher, potentially delaying the Federal Reserve’s anticipated rate cuts. On the other hand, the labor market is showing signs of softening, and more weakness could induce the Fed to accelerate rate cuts. Further complicating the Fed’s decision is a persistently weak dollar, which can result in “importing inflation.” Fiscal concerns are also resurfacing: if Congress fails to enact the bill extending current tax laws, individual income tax rates will rise substantially. If it enacts the bill, deficit spending will increase. At its June meeting, the Fed modestly raised inflation expectations and slightly trimmed its growth outlook for the rest of the year. Yet it still expects a soft landing, even as three primary recession indicators recently suggested a downturn: an inverted yield curve1, the Leading Economic Index2, and the “Sahm Rule” on unemployment3. Markets shrugged off these headwinds and more as the S&P 500 set a new high late in the quarter, fully erasing the April crash. Yet performance diverged sharply across asset classes as much cheaper non-U.S. stocks outpaced their U.S. counterparts (Russell 3000) by more than 12% in the first half of the year. While these near-term developments dominate headlines, long-term investors are better served by focusing on longer-term dynamics. Vanguard’s chief global economist recently noted the global economy is caught in a “tug of war between growing fiscal deficits, on the one side, and the potential for artificial intelligence to boost growth, on the other. All other forces are secondary.” [our italics] As modern warfare becomes dominated by drones and missiles, AI has become as much a geopolitical imperative as an economic opportunity. As a result, AI development may increasingly resemble an arms race between the US and China, which could further hasten its development pace. If AI does not evolve into something sentient and hostile—a possibility its creators do not dismiss—it may become the most powerful driver of productivity since electricity. The open question is whether AI-driven growth can be sufficient to offset the drag of persistent federal deficits. If government borrowing exceeds global capacity to save and lend (to our government and others), central banks will be forced to resort to money creation, risking structurally higher inflation. Which future is most likely: productivity-led growth or high inflation? No one knows, and that may be the greatest uncertainty of all.  Adding to this uncertainty are today’s elevated asset valuations, which historically imply muted long-term forward returns and elevated short-term risk. Taken together, we don’t see the makings of a particularly appetizing investment stew, hence this bid to temper expectations. That said, there are notable bright spots. Relative returns this year were especially encouraging during the market’s April swoon. Diversification - especially the inclusion of international equities - has meaningfully benefited portfolios this year. Our rebalancing trades during the April dip added value, and some of our “alternative” investments are having a particularly good year. We expect the advantages of our broadly diversified portfolio management approach to persist in the anticipated highly unpredictable environment.   1 The yield curve: The difference between short and long-term Treasury obligations; portends economic slowdown (after lags) when negative.                            2 The Leading Economic Index: Published by The Conference Board, the LEI typically falls in advance of a recession. 3 The "Sahm Rule" on unemployment: When the smoothed unemployment rate rises by 0.5%, that tends to precede an economic downturn.   Mark Motley, MBA, CFA Wed, 02 Jul 2025 13:05:00 GMT f1397696-738c-4295-afcd-943feb885714:41716 https://www.fosterandmotley.com/insights/2025/07/02/what-strategies-can-you-use-to-ease-financial-stress-after-a-spouse-passes-with-rachel-rasmussen-mba-cfa-cdfa-and-joe-patterson-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41985 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41985&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2025/07/02/what-strategies-can-you-use-to-ease-financial-stress-after-a-spouse-passes-with-rachel-rasmussen-mba-cfa-cdfa-and-joe-patterson-cfp In this episode, we're joined by Rachel Rasmussen, MBA, CFA, CDFA®, Investment Manager and Shareholder, and Joe Patterson, CFP®, Financial Planner and Shareholder, both at Foster & Motley, Inc. Together, they navigate the financial and emotional complexities that follow the death of a spouse, offering a compassionate and pragmatic look at planning for one of life's most difficult transitions.Rachel and Joe outline the importance of preparing in advance. They walk through the steps survivors must take in the immediate aftermath of a loss. From accessing cash and organizing documents to managing ongoing bills and updating estate plans, they explain how thoughtful planning and the right support system can make a significant difference during a deeply emotional time.Key Takeaways:(01:08) Take time before making major financial decisions.(02:37) Rely on a support network of professionals and loved ones.(05:35) Prepare necessary documents to facilitate transitions.(08:28) Ensure continuity of income through proper coordination.(11:54) Keep an organized overview of financial assets.(15:06) Set up account access in advance to avoid complications.(19:49) Safeguard and share digital access information appropriately.(20:54) Communicate the location of key legal documents.(26:48) Reevaluate financial plans and goals as circumstances change.Resources Mentioned:Foster & Motley, Inc. | Websitehttps://www.fosterandmotley.com/Connect with Joe Patterson and Rachel Rasmussen:info@fosterandmotley.com+1 513-561-6640Foster & Motleyhttps://www.fosterandmotley.com/LinkedIn: Joe Pattersonhttps://www.linkedin.com/in/josephapatterson/LinkedIn: Rachel Rasmussenhttps://www.linkedin.com/in/rachel-rasmussen-cfa-cdfa/LinkedIn: Foster & Motley, Inc.https://www.linkedin.com/company/fosterandmotley/#WealthManagement #FinancialPlanning #InvestmentAdvisory #WealthManagementPodcast Website Administrator Wed, 02 Jul 2025 04:00:00 GMT f1397696-738c-4295-afcd-943feb885714:41985 https://www.fosterandmotley.com/insights/2025/06/18/how-can-understanding-your-money-mindset-help-shape-your-financial-future-with-luke-hail-mba-cfp-and-zach-horn-mba-cfp-cmfc#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41986 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41986&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2025/06/18/how-can-understanding-your-money-mindset-help-shape-your-financial-future-with-luke-hail-mba-cfp-and-zach-horn-mba-cfp-cmfc In this episode, we hear from Foster & Motley, Inc.'s Luke Hail, MBA, CFP®, Financial Planner and Shareholder, and Zach Horn, MBA, CFP®, CMFC®, Managing Partner, Investment Manager and Shareholder. They discuss how money mindsets, shaped by upbringing, experience, and environment, affect financial decisions. Drawing on years of advising high-net-worth clients, they highlight how understanding these mindsets can help individuals and couples make aligned choices, avoid unnecessary friction, and gain peace of mind through thoughtful planning.Key Takeaways:(01:16) A money mindset forms early and drives financial behavior.(04:34) Differing mindsets can create tension in relationships.(09:07) Emotions can impact financial decisions.(10:47) Advisors help clients navigate financial pressure.(13:30) Clear planning builds confidence to spend or give.(16:58) Giving during life can be more meaningful than waiting.(21:01) Diversification supports long-term stability.(22:42) Reducing stress improves financial resilience.Resources Mentioned:Foster & Motley, Inc. | Websitehttps://www.fosterandmotley.com/Connect with Luke Hail and Zach Horn:info@fosterandmotley.com+1 513-561-6640Foster & MotleyLinkedIn: Luke Hailhttps://www.linkedin.com/in/luke-hail-cfp%C2%AE-b606679/LinkedIn: Zach Hornhttps://www.linkedin.com/in/zachhorn/LinkedIn: Foster & Motley, Inc.https://www.linkedin.com/company/fosterandmotley/#WealthManagement #FinancialPlanning #InvestmentAdvisory #WealthManagementPodcast Website Administrator Wed, 18 Jun 2025 04:00:00 GMT f1397696-738c-4295-afcd-943feb885714:41986 https://www.fosterandmotley.com/insights/2025/06/04/how-can-you-help-your-parents-organize-their-finances-and-estate-plan-with-joe-patterson-cfp-and-david-nienaber-mba-cpa-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41987 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41987&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2025/06/04/how-can-you-help-your-parents-organize-their-finances-and-estate-plan-with-joe-patterson-cfp-and-david-nienaber-mba-cpa-cfp In this episode, we're joined by David Nienaber, MBA, CPA, CFP® and Joe Patterson, CFP®, both Financial Planners and Shareholders at Foster & Motley, Inc.. Together, they discuss the importance of estate planning, especially when helping aging parents navigate their financial affairs.They share their experiences working with clients and families and shed light on the generational challenges and misinformation that can create unnecessary stress during already difficult times. David and Joe outline practical steps to simplify financial matters, foster open communication, and avoid costly mistakes during estate settlement.Key Takeaways:(02:20) Creating a clear picture of assets is essential.(03:42) Proper documentation helps reduce stress for loved ones.(06:04) Misinformation often delays important financial conversations.(07:04) Legal and financial rules vary significantly by location.(10:17) Many people are unaware of their roles in estate plans.(13:50) Generational experiences shape views on money and planning.(17:24) Maintenance tasks are vital after setting up an estate plan.(21:00) Having open discussions can help prevent future confusion.(25:59) Easy access to digital and financial information is crucial.Resources Mentioned:Foster & Motley, Inc. | Websitehttps://www.fosterandmotley.com/Foster & Motley Family Letter Templatehttps://www.fosterandmotley.com/insights/2019/10/25/a-practical-addition-to-your-estate-planConnect with Joe Patterson and David Nienaber:info@fosterandmotley.com+1 513-561-6640Foster & Motleyhttps://www.fosterandmotley.com/LinkedIn: Joe Pattersonhttps://www.linkedin.com/in/josephapatterson/LinkedIn: David Nienaberhttps://www.linkedin.com/in/dnienaber/LinkedIn: Foster & Motley, Inc.https://www.linkedin.com/company/fosterandmotley/#WealthManagement #FinancialPlanning #InvestmentAdvisory #WealthManagementPodcast Website Administrator Wed, 04 Jun 2025 04:00:00 GMT f1397696-738c-4295-afcd-943feb885714:41987 https://www.fosterandmotley.com/insights/2025/05/21/should-you-act-on-financial-advice-from-friends-and-family-with-rachel-rasmussen-mba-cfa-cdfa-and-zach-binzer-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41988 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41988&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2025/05/21/should-you-act-on-financial-advice-from-friends-and-family-with-rachel-rasmussen-mba-cfa-cdfa-and-zach-binzer-cfp Rachel Rasmussen, MBA, CFA, CDFA®, Investment Manager and Shareholder, and Zach Binzer, CFP®, Financial Planner and Shareholder, both of Foster & Motley, Inc., discuss the importance of evaluating financial advice. They explore how to differentiate between well-intended recommendations and misleading information, the role of emotions in investing and the importance of staying disciplined with financial decisions.Key Takeaways:(00:52) People share wins, not losses.(01:58) Always question the intent behind advice.(03:52) FOMO can lead to bad investments.(04:25) Expertise in one field doesn't mean expertise in investing.(06:29) Trends don't always fit your situation.(07:35) Ask for details before acting.(09:32) A financial advisor gives perspective.(11:32) Discipline beats emotional decisions.Resources Mentioned:Foster & Motley, Inc. | Websitehttps://www.fosterandmotley.com/Connect with Rachel Rasmussen and Zach Binzer:info@fosterandmotley.com+1 513-561-6640Foster & Motleyhttps://www.fosterandmotley.com/LinkedIn: Rachel Rasmussenhttps://www.linkedin.com/in/rachel-rasmussen-cfa-cdfa/LinkedIn: Zach Binzerhttps://www.linkedin.com/in/zach-t-binzer-cfp/LinkedIn: Foster & Motley, Inc.https://www.linkedin.com/company/fosterandmotley/#WealthManagement #FinancialPlanning #InvestmentAdvisory #WealthManagementPodcast Website Administrator Wed, 21 May 2025 09:15:00 GMT f1397696-738c-4295-afcd-943feb885714:41988 https://www.fosterandmotley.com/insights/2025/05/07/why-is-downsizing-not-always-the-right-choice-for-retirees-with-joe-patterson-cfp-and-david-j-nienaber-mba-cpa-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41989 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41989&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2025/05/07/why-is-downsizing-not-always-the-right-choice-for-retirees-with-joe-patterson-cfp-and-david-j-nienaber-mba-cpa-cfp Choosing where to live in retirement is about more than just finances — it's about creating a home that aligns with evolving needs, goals and lifestyles.In this episode, Joe Patterson, CFP®, and David J. Nienaber, MBA, CPA, CFP®, both Financial Planners and Shareholders at Foster & Motley, Inc., discuss the financial and emotional considerations of downsizing, upsizing and rightsizing in retirement. They explore how housing decisions impact long-term financial security and lifestyle, highlighting real client experiences and key factors to consider when planning for the future.Key Takeaways:(00:52) Downsizing isn't always the answer.(02:23) Social norms push downsizing, but it's not for everyone.(06:56) Retirement communities offer long-term security.(08:28) Continuous care communities provide peace of mind.(11:05) Renting first helps retirees find the right fit.(13:15) Downsizing often costs more than expected.(16:09) Insurability is a growing issue in high-risk areas.(19:07) Family talks are crucial for vacation home plans.(21:31) Emotional ties make relocation tough.(25:02) Tracking routines before moving prevents surprises.Resources Mentioned:Foster & Motley, Inc. | Websitehttps://www.fosterandmotley.com/Connect with Joe Patterson and David Nienaber:info@fosterandmotley.com+1 513-561-6640LinkedIn: Joe Pattersonhttps://www.linkedin.com/in/josephapatterson/LinkedIn: David Nienaberhttps://www.linkedin.com/in/dnienaber/LinkedIn: Foster & Motley, Inc.https://www.linkedin.com/company/fosterandmotley/#WealthManagement #FinancialPlanning #InvestmentAdvisory #WealthManagementPodcast Website Administrator Wed, 07 May 2025 04:55:00 GMT f1397696-738c-4295-afcd-943feb885714:41989 https://www.fosterandmotley.com/insights/2025/04/24/mark-motley-mba-cfa-quoted-in-cincinnati-business-courier-on-p-gs-price-increases-tariff-impact-and-earnings-outlook#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41660 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41660&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2025/04/24/mark-motley-mba-cfa-quoted-in-cincinnati-business-courier-on-p-gs-price-increases-tariff-impact-and-earnings-outlook Mark Motley, MBA, CFA, president and co-chief investment officer at Foster & Motley, was recently featured in an article by Steve Watkins of the Cincinnati Business Courier discussing Procter & Gamble’s recent earnings report and its decision to raise product prices in response to increased tariff costs. Below is an excerpt from the article: "P&G is contending with more than $1 billion in annual tariff expenses, prompting the company to consider price hikes on household staples like Tide and Crest," the article states. Motley described P&G’s quarterly results as “mixed” and noted that the company’s dividend increase didn’t quite measure up to previous years. “Having raised the dividend by 7% last year and by 6.3% on average for the past four years, the latest increase is OK but not great,” he told the Business Courier. Click here to read the full article on the Cincinnati Business Courier’s website (a subscription may be required). Betsy Wolking, MSM Thu, 24 Apr 2025 17:15:00 GMT f1397696-738c-4295-afcd-943feb885714:41660 https://www.fosterandmotley.com/insights/2025/04/23/what-role-can-real-estate-play-in-your-investment-strategy-with-ryan-english-mba-cfa-cpa-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41990 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41990&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2025/04/23/what-role-can-real-estate-play-in-your-investment-strategy-with-ryan-english-mba-cfa-cpa-cfp Ryan English, MBA, CFA, CPA, CFP®, Investment Manager and Shareholder at Foster & Motley, Inc., shares insights on real estate investing beyond the traditional do-it-yourself house flipping seen on TV. He explains different investment options, including publicly traded real estate investment trusts (REITs) and private real estate, and how they fit into a diversified portfolio.Key Takeaways:(00:56) Real estate boosts returns and diversification.(02:01) House flipping isn't Foster & Motley's focus.(02:18) Real estate's role depends on risk tolerance and assets.(02:56)  REITs offer liquidity and easy market access.(04:49) Private real estate delivers higher returns for less liquidity.(05:17) Investments range from low-risk properties to high-risk developments.(07:26) Real estate hedges against inflation.(09:42) Local market knowledge is key.(10:19) Risk tolerance varies by investment type.Resources Mentioned:Foster & Motley, Inc. | Websitehttps://www.fosterandmotley.com/Connect with Ryan English:info@fosterandmotley.com+1 513-561-6640Foster & Motleyhttps://www.fosterandmotley.com/LinkedIn: Ryan Englishhttps://www.linkedin.com/in/j-ryan-english-mba-cfa-cpa-cfp/LinkedIn: Foster & Motley, Inc.https://www.linkedin.com/company/fosterandmotley/#WealthManagement #FinancialPlanning #InvestmentAdvisory #WealthManagementPodcast Website Administrator Wed, 23 Apr 2025 04:00:00 GMT f1397696-738c-4295-afcd-943feb885714:41990 https://www.fosterandmotley.com/insights/2025/04/09/what-benefits-could-public-workers-receive-from-the-latest-social-security-legislation-with-nicholas-roth-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41991 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41991&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2025/04/09/what-benefits-could-public-workers-receive-from-the-latest-social-security-legislation-with-nicholas-roth-cfp Nicholas Roth, CFP®,  Financial Planner at Foster & Motley, Inc., joins us to discuss the recent changes to Social Security, specifically the removal of the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which could significantly boost retirement income for millions of public sector workers.Key Takeaways:(01:04) The Social Security Fairness Act removes WEP and GPO provisions.(02:39) Public sector workers were penalized by these offsets.(03:01) Spousal benefits were cut for spouses of public pension recipients.(05:37) The law is retroactive, requiring the SSA to correct past benefits.(06:03) Affected individuals get adjusted benefits and a lump sum.(07:21) Those over 70 should apply to avoid losing retroactive payments.(08:58) Benefits do not increase after age 70.(10:29) The SSA provides regular updates on its website.Resources Mentioned:Nicholas Roth, CFP®https://www.fosterandmotley.com/our-team/bios/nicholas-e-rothFoster & Motley, Inc.https://www.fosterandmotley.com/Social Security Administration (SSA)https://www.ssa.gov/Connect with Nicholas Roth:info@fosterandmotley.com+1 513-561-6640LinkedIn: Nicholas Rothhttps://www.linkedin.com/in/nickroth14/LinkedIn: Foster & Motley, Inc.https://www.linkedin.com/company/fosterandmotley/#WealthManagement #FinancialPlanning #InvestmentAdvisory #WealthManagementPodcast Website Administrator Wed, 09 Apr 2025 04:00:00 GMT f1397696-738c-4295-afcd-943feb885714:41991 https://www.fosterandmotley.com/insights/2025/04/07/interim-market-update#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41627 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41627&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2025/04/07/interim-market-update Our standard interval for market comments is quarterly.  Yet, when volatility jumps, as it did in 2020 during the early weeks of the COVID crisis, we may supplement that frequency.  Although we just published a comment last Tuesday, the subsequent spike in market volatility since then cries for another. Last Thursday and Friday, the S&P 500 Index fell 10.5%, its fifth-worst 2-day run since WWII.  We suggested the correction that occurred late in mid-March may have been largely driven by the intersection of high market valuation and new evidence of weaker economic growth.  However, the subsequent volatility spike is all about tariffs.  The Chicago Board of Options Exchange Volatility Index, commonly called the VIX, measures market volatility implied by option prices on the S&P 500.  It was created in 1990, and this is its entire history through Friday: Source: Macrotrends: https://www.macrotrends.net/2603/vix-volatility-index-historical-chart This morning, the VIX index opened at 60.13. At a glance, it can be seen that 1) market volatility experiences massive “spikes” from time to time, and 2) at 60, this one is in the top three in the last 35 years (though, 1987 and perhaps 1974 would have also been up there had this index existed then). This kind of unhinged market behavior occurs sometimes as a normal part of stock investing.  Yes, but: this time is different, isn’t it? This time is an unprecedented upheaval in global trade, a sudden, all-out trade war, a colossal unforced policy mistake.  Doesn’t that make this one different, unique? Of course it does. And so were each of the others – each one was unlike any others.  In 2020, we had the global pandemic.  In 2012, it was a European banking crisis.  2008-2009 was the mortgage crisis and Great Recession.  2001-2 were the financial accounting scandals of Enron, Worldcom, Global Crossing, etc.  1998 and 1999 each saw unique currency crises.  Each one of those was unprecedented.  Each was high drama, filling the news in its day, and each looked to have no end if you listened to that. But what happened? Each one passed. Each one eventually represented a great buying opportunity for stocks. And for each one, the point of maximum pain and angst represented the best opportunity. Volatility spikes are, by definition, sudden affairs, and after Volatility peaks at 30, 45, 60, or whatever, it comes down pretty quickly.  Peak volatility doesn’t always occur right at the market bottom – sometimes the market bottom occurs a little after. Yet peak market volatility always occurs nearer to the eventual bottom than to the prior peak.  History is clear: unusually high levels of market volatility (and a VIX at 60 certainly counts!) should be viewed as buying rather than selling opportunities. Uncertainty and occasional market downdrafts – even sudden and large – cannot be avoided or anticipated.  So, Foster & Motley doesn’t attempt to predict the unpredictable.  Instead, we build portfolios designed to survive such uncertainty without permanent damage.  The only permanent portfolio damage is that which follows from bailing out after a historic market decline (which, fortunately, very few clients have historically done.) We’ll likely see more drama before this one passes, but this one, too, will pass eventually.  Until it does, the best course is to remain a long-term investor and avoid the temptation to fiddle with “market timing”.  Stocks have been the great long-term wealth generator, and nothing in this new volatility eruption has changed that. Mark Motley, MBA, CFA Mon, 07 Apr 2025 15:31:00 GMT f1397696-738c-4295-afcd-943feb885714:41627 https://www.fosterandmotley.com/insights/2025/04/02/market-update#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41613 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41613&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2025/04/02/market-update “Uncertainty! fell demon of our fears! The human soul that can support despair, supports not thee.” -David Mallet Uncertainty is an ever-present element of investing that no one enjoys. While it waxes and wanes over time, it’s certain that uncertainty is thick about us now. Large US stocks started the new year advancing, peaked in February, quickly sank 10% into a “correction” by mid-March, and the S&P 500 Index ended the first quarter down nearly 9% from the February all-time high. This is not an uncommon occurrence: nearly one in two years includes a 10% market correction (or two). Importantly, most don’t go on to become bear markets - declines of 20% or more. Political division, seemingly our national pastime now, fills the airwaves, blogosphere, and chats. Yet as tempting as it is to color investment decisions with our respective political poisons, it’s almost always best to filter that stuff out. “Stocks Fall on New Auto Tariffs” (WSJ, 3/28) was a typical recent headline. Nearly everything you read or hear points to concerns about tariffs as the reason for recent market weakness. Economists, for all the usual quips about their equivocation, are remarkably united in their view that free trade is good and tariffs are bad. We concur. Yet despite conventional wisdom that tariff talk is the cause of current market jitters, we are not convinced it is the principal driver of this correction. Neither is simmering inflation nor even geopolitics. Odds of recession have meaningfully risen, and that is almost certainly a factor, perhaps more potent than the others. Exceptionally high market valuations are a much less-cited cause of near-term market declines, but we think they are likely the primary culprit for this correction. Market valuations have been stretched for some time, as we’ve noted. The overall stock market remains both expensive and concentrated, and the correction has done little to improve either of these conditions. Fortunately, not everything is as expensive as the largest US tech companies, and among the less expensive opportunities are non-US stocks. In the first quarter, while the S&P 500 Index total return was -4.6% (and that of the tech-heavy NASDAQ index was -10.4%%), the MSCI All Country ex-US Index return was positive 5.5%, delivering substantial benefit from international stock diversification. Moreover, except for small stocks, essentially all forms of diversification were beneficial to investors in the first quarter, including bonds. As to the economy, several recent reports indicate the economy heading into this year was weaker than most had previously imagined, and little has been done lately either by the Fed or by Congress to change that. One underappreciated development found in a Wall Street Journal opinion piece in February is that in 2024, the Federal Housing Administration (FHA), which insures mortgages for low and middle-income borrowers, had more loans become seriously delinquent than it insured new loans. Furthermore, the missed payments were simply added to those delinquent mortgage balances, while the FHA paid servicers not to foreclose. More newly issued FHA loans last year went delinquent within 12 months of issue than occurred at the peak of the 2008 subprime mortgage debacle. If these 8.5 million FHA delinquencies become foreclosures, the odds of both a recession and a bear market could increase. Fortunately, for now, at least, this appears to be an FHA problem rather than an issue for the mortgage market generally. Longer term, unsustainable levels of government spending and debt remain the elephant in the room, and, if unaddressed, will continue to raise the odds of serious eventual market adjustments, as we have noted before. Every administration seems to target “waste, fraud, and abuse.”  Few have made any progress. We hear and appreciate concerns voiced by many these days about what the current government is doing to cut spending. “Move fast and break things” plays better in Silicon Valley than in DC. But if current hasty efforts to curb federal spending are unsuccessful – and there are many reasons to expect they may fall short of stated goals – the result may be no more than a slowing in the rate of government growth. The two principal reasons for that are Social Security and Medicaid, and anything short of addressing their financial problems would leave the best of other efforts short of bringing us to fiscal responsibility. In other words, all these endeavors may only delay the day of reckoning. Given these substantial near- and long-term risks, it seems foolish not to focus on diversification and risk control in portfolio management. Recent years (especially 2021, 2023, and 2024) have served to “teach” too many the wrong investment lessons: chase after momentum and ignore valuation. This year so far, with risk rearing its head, our adherence to prudence is paying off well. We will continue to allocate portfolios with care and caution. You know that storms in investing arise from time to time, but you may take comfort in knowing your portfolio is built to weather this one. Mark Motley, MBA, CFA Wed, 02 Apr 2025 11:17:00 GMT f1397696-738c-4295-afcd-943feb885714:41613 https://www.fosterandmotley.com/insights/2025/03/26/what-conversations-can-those-in-the-sandwich-generation-have-now-to-prepare-for-the-future-with-rachel-rasmussen-mba-cfa-cdfa-and-megan-lyons-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41992 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41992&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2025/03/26/what-conversations-can-those-in-the-sandwich-generation-have-now-to-prepare-for-the-future-with-rachel-rasmussen-mba-cfa-cdfa-and-megan-lyons-cfp In this episode, we're joined by Rachel Rasmussen, MBA, CFA, CDFA®, Investment Manager and Shareholder, and Megan Lyons, CFP®, Financial Planner. They discuss the financial and emotional challenges of the sandwich generation — those balancing the care of aging parents while supporting their children. They explore how cultural expectations, financial planning, and clear communication shape caregiving responsibilities.Key Takeaways:(00:26) The sandwich generation faces financial and emotional pressures.(00:59) Cultural and generational factors shape caregiving expectations.(04:49) Transparency in financial discussions fosters better planning.(07:42) Setting clear parameters helps determine aging-in-place options.(12:55) Sibling coordination prevents future conflicts in caregiving.(16:57) Major life changes signal the need to review estate documents.(18:14) Aging parents should ensure their helpers span generations.(20:32) Downsizing possessions can ease transitions for loved ones.(23:56) Open conversations about care plans reduce family stress.Resources Mentioned:A Place for Mom | Website -https://www.aplaceformom.com/Marie Kondo's "The Life-Changing Magic of Tidying Up" -https://www.amazon.com/Life-Changing-Magic-Tidying-Decluttering-Organizing/dp/1607747308Connect with Rachel Rasmussen & Megan Lyons:info@fosterandmotley.com+1 513-561-6640Foster & Motley -https://www.fosterandmotley.com/LinkedIn: Rachel Rasmussen, MBA, CFA, CDFA®https://www.linkedin.com/in/rachel-rasmussen-cfa-cdfa/LinkedIn: Megan Lyons, CFP®https://www.linkedin.com/in/meganlyonscfp/LinkedIn: Foster & Motley, Inc.https://www.linkedin.com/company/fosterandmotley/#WealthManagement #FinancialPlanning #InvestmentAdvisory #WealthManagementPodcast Website Administrator Wed, 26 Mar 2025 04:35:00 GMT f1397696-738c-4295-afcd-943feb885714:41992 https://www.fosterandmotley.com/insights/2025/03/18/thom-guidi-cfa-quoted-in-cincinnati-business-courier-on-scripps-debt-refinancing#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41599 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41599&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2025/03/18/thom-guidi-cfa-quoted-in-cincinnati-business-courier-on-scripps-debt-refinancing Thom Guidi, CFA, was recently featured in an article by Steve Watkins of the Cincinnati Business Courier discussing the market’s reaction to E.W. Scripps Co.’s recent debt refinancing and the subsequent surge in its stock price. Below is an excerpt from the article: "E.W. Scripps Co. has wrapped up a massive refinancing of more than $1 billion in debt, sending its stock soaring by addressing the key issue that’s been hanging over the company." Guidi noted that addressing the company’s near-term debt concerns was a key factor for investors. “The high amount of debt that was to come due in 2026 was the main issue,” he told the Business Courier. “The new refinancing arrangement eases that issue in investors’ minds.” Click here to read the full article on the Cincinnati Business Courier’s website (a subscription may be required). Betsy Wolking, MSM Tue, 18 Mar 2025 18:17:00 GMT f1397696-738c-4295-afcd-943feb885714:41599 https://www.fosterandmotley.com/insights/2025/03/12/what-should-investors-know-about-non-traditional-fixed-income-with-sarah-browne-mfe-cfa#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41993 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41993&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2025/03/12/what-should-investors-know-about-non-traditional-fixed-income-with-sarah-browne-mfe-cfa In this episode, we welcome Sarah Browne, MFE, CFA, Fixed Income Portfolio Manager of Foster & Motley, Inc., to discuss the evolving role of non-traditional fixed-income investments. Sarah explores how this asset class has grown since the 2008 financial crisis, how it differs from traditional fixed income, and what investors should consider when integrating these investments into their portfolios.Key Takeaways:(01:27) The 2008 crisis led to tighter banking rules and new lending gaps.(02:12) Non-traditional fixed income includes private credit and asset-backed securities.(03:55) Private credit can be high quality with strong underwriting.(05:23) High minimums make access tough for individual investors.(06:04) Non-traditional investments boost diversification and income.(07:42) Private credit yields range from 9% to 11% annually.(08:30) Yields aren't guaranteed and depend on market conditions.(09:02) Selecting high-quality funds is key to managing risk.Resources Mentioned:Foster & Motley, Inc. LinkedIn -https://www.linkedin.com/company/fosterandmotley/Foster & Motley, Inc. Website -https://www.fosterandmotley.com/Connect with Sarah Browne -https://www.linkedin.com/in/sarah-k-browne/info@fosterandmotley.com+1 513-561-6640#WealthManagement #FinancialPlanning #InvestmentAdvisory #WealthManagementPodcast Website Administrator Wed, 12 Mar 2025 04:00:00 GMT f1397696-738c-4295-afcd-943feb885714:41993 https://www.fosterandmotley.com/insights/2025/03/06/mark-motley-mba-cfa-quoted-in-cincinnati-business-courier-on-kroger-ceo-resignation#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41585 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41585&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2025/03/06/mark-motley-mba-cfa-quoted-in-cincinnati-business-courier-on-kroger-ceo-resignation Mark Motley, MBA, CFA, shareholder and investment manager at Foster & Motley, was recently featured in an article by Steve Watkins of the Cincinnati Business Courier discussing the market’s reaction to the announced resignation of Kroger CEO Rodney McMullen. Below is an excerpt from the article: "McMullen’s departure comes at a pivotal time for Kroger, as the company adjusts its strategy following the failed Albertsons merger and navigates an evolving grocery landscape," the article states. Motley noted that the structured nature of this leadership change should provide stability for investors. “Markets tend to respond better to orderly CEO transitions than to surprises,” he told the Business Courier. Click here to read the full article on the Cincinnati Business Courier’s website (a subscription may be required). Betsy Wolking, MSM Thu, 06 Mar 2025 18:31:00 GMT f1397696-738c-4295-afcd-943feb885714:41585 https://www.fosterandmotley.com/insights/2025/02/26/could-better-cybersecurity-habits-save-you-from-digital-threats-with-james-l-combs-and-lucas-p-hail-mba-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41994 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41994&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2025/02/26/could-better-cybersecurity-habits-save-you-from-digital-threats-with-james-l-combs-and-lucas-p-hail-mba-cfp Luke P. Hail, MBA, CFP®, Financial Planner & Shareholder, and James L. Combs, Director of IT, join this episode to dive into the critical topic of cybersecurity. Together they provide practical insights to help individuals and organizations protect their digital assets from cyber threats such as hacks, ransomware, phishing, and social engineering.Key Takeaways:(01:29) Focus your efforts to stay secure online.(01:57) Updates are essential for safety.(03:54) Prioritize system updates over apps.(06:17) Always log out of websites.(13:55) MFA adds biometric protection.(15:30) Passkeys outperform passwords.(23:01) Beware of phishing and social engineering.(28:19) Use encrypted password managers.Resources Mentioned:Luke P. Hail, MBA, CFP® -https://www.linkedin.com/in/luke-hail-cfp%C2%AE-b606679/James L. Combs -https://www.linkedin.com/in/jcombsjr/Foster & Motley, Inc. | Website -https://www.fosterandmotley.com/Passkeys overview from Microsoft -https://support.microsoft.com/en-us/windows/passkeys-overview-301c8944-5ea2-452b-9886-97e4d2ef4422Password manager options from Apple and Android -https://support.apple.com/en-us/109016#WealthManagement #FinancialPlanning #InvestmentAdvisory #WealthManagementPodcast Website Administrator Wed, 26 Feb 2025 05:00:00 GMT f1397696-738c-4295-afcd-943feb885714:41994 https://www.fosterandmotley.com/insights/2025/02/11/thom-guidi-cfa-quoted-in-cincinnati-business-courier-on-kroger-job-cuts#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41564 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41564&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2025/02/11/thom-guidi-cfa-quoted-in-cincinnati-business-courier-on-kroger-job-cuts Thom Guidi, CFA, shareholder and investment manager at Foster & Motley, was recently featured in an article by Steve Watkins of the Cincinnati Business Courier discussing Kroger’s decision to cut jobs at its Cincinnati-area facilities. Below is an excerpt from the article: The number of job cuts wasn’t disclosed, but a Kroger spokesperson said the company is making changes to improve how it serves customers, the article states. Guidi doesn’t see the move as indicating a significant change in direction for Kroger. “It is not surprising that Kroger would reevaluate their operations after the Albertsons merger was disallowed,” he told Watkins. “This seems to be pruning of those things that did not work instead of a massive cost-cutting decision.” Click here to read the full article on the Cincinnati Business Courier’s website (a subscription may be required). Betsy Wolking, MSM Tue, 11 Feb 2025 15:58:00 GMT f1397696-738c-4295-afcd-943feb885714:41564 https://www.fosterandmotley.com/insights/2025/02/06/do-you-know-the-new-rules-for-your-inherited-ira-with-nicholas-roth-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41995 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41995&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2025/02/06/do-you-know-the-new-rules-for-your-inherited-ira-with-nicholas-roth-cfp In this episode, we welcome Nicholas Roth, CFP®, Financial Planner to discuss the complexities of Inherited IRAs. Nicholas sheds light on updated rules, the emotional and financial challenges involved, and strategies to navigate these intricate situations effectively.Key Takeaways:(01:39) Introducing money into any situation adds emotional complexity.(02:30) The IRS finalizes updated rules for inherited IRAs post-2020.(03:51) IRS confirms no penalties for decisions made in good faith between 2020 and 2024.(04:52) The 10-year rule requires full distribution of inherited IRAs within 10 years.(07:14) Eligible beneficiaries include surviving spouses, minors and disabled or chronically ill individuals.(10:42) Most people inheriting IRAs are subject to both 10-year and stretch distribution rules.(12:51) Inherited IRAs can pass through multiple generations, adding complexity.(13:52) IRS reduces penalties for missed required minimum distributions to 10–25%.(14:47) Inherited IRA rules are complex; trusted financial professionals provide essential guidance.Resources Mentioned:Foster & Motley, Inc. | Website -https://www.fosterandmotley.com/Connect:info@fosterandmotley.com+1 513-561-6640LinkedIn: Nicholas Roth -https://www.linkedin.com/in/nickroth14/LinkedIn: Foster & Motley, Inc. -https://www.linkedin.com/company/fosterandmotley/#WealthManagement #FinancialPlanning #InvestmentAdvisory #WealthManagementPodcast Website Administrator Thu, 06 Feb 2025 11:04:00 GMT f1397696-738c-4295-afcd-943feb885714:41995 https://www.fosterandmotley.com/insights/2025/01/28/emily-hogya-places-seventh-in-cbcs-annual-stock-picking-contest#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41545 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41545&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2025/01/28/emily-hogya-places-seventh-in-cbcs-annual-stock-picking-contest Each year, the Cincinnati Business Courier hosts a stock-picking contest, bringing together some of the most talented local investment professionals to showcase their expertise. Participants are tasked with building a portfolio of five stocks they believe will deliver the best total return, including dividends. The article, written by Steve Watkins of the Business Courier, states that at least one of the selected stocks must be from a locally based company, making local stocks a frequent favorite among contestants. This year, Foster & Motley is thrilled to celebrate Emily Hogya’s impressive performance in the 2024 stock-picking contest. The portfolio she constructed earned 28.5% in total returns. Emily distinguished herself as the only female advisor among the top 10, securing her a seventh-place finish! Her achievement underscores her investment acumen and her dedication to excellence in a competitive field. We are proud to see our team members recognized by the Cincinnati Business Courier. You can read the full article here. A subscription may be required to access Cincinnati Business Courier articles.  Note: Stocks selected for the contest reflect individual participation and do not represent a fully managed Foster & Motley portfolio. Selections were made specifically for the purposes of the contest and may not align with the firm’s investment philosophy or strategies.   Betsy Wolking, MSM Tue, 28 Jan 2025 15:46:00 GMT f1397696-738c-4295-afcd-943feb885714:41545 https://www.fosterandmotley.com/insights/2025/01/22/how-can-wealth-managers-balance-ai-innovation-and-security-with-thomas-j-guidi-cfa-and-david-j-nienaber-mba-cpa-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41996 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41996&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2025/01/22/how-can-wealth-managers-balance-ai-innovation-and-security-with-thomas-j-guidi-cfa-and-david-j-nienaber-mba-cpa-cfp In this episode, we're joined by Thomas J. Guidi, CFA, Investment Manager, Co-Chief Investment Officer, and Shareholder, and Dave J. Nienaber, MBA, CPA, CFP®, Financial Planner and Shareholder. Together, they examine the evolving role of artificial intelligence in wealth management, exploring its potential applications and limitations and the importance of balancing innovation with security to better serve clients.Key Takeaways:(03:47) AI disrupts industries through automation and innovation.(06:31) AI improves inventory, customer service, and scheduling.(09:31) Experimentation with AI for meeting notes and its current limitations.(13:00) Challenges in using AI for nuanced portfolio rebalancing decisions.(16:59) The evolving role of AI in tax analysis and multi-year strategies.(20:29) AI's potential for creating flowcharts for estate planning.(23:22)  Emotional coaching is a human advantage.(26:37) Security concerns, including deepfakes and ethical standards for AI.(30:56) Balancing innovation with opportunities and risks.Resources Mentioned:Thomas J. Guidi -https://www.linkedin.com/in/thomas-guidi-cfa-21830952/Dave J. Nienaber -https://www.linkedin.com/in/dnienaber/Foster & Motley, Inc. LinkedIn -https://www.linkedin.com/company/fosterandmotley/Foster & Motley, Inc.| Website -https://www.fosterandmotley.com/Connect:info@fosterandmotley.com+1 513-561-6640LinkedIn: Thomas GuidiLinkedIn: David NienaberLinkedIn: Foster & Motley, Inc.#WealthManagement #FinancialPlanning #InvestmentAdvisory #WealthManagementPodcast Website Administrator Wed, 22 Jan 2025 05:05:00 GMT f1397696-738c-4295-afcd-943feb885714:41996 https://www.fosterandmotley.com/insights/2025/01/08/how-can-you-take-control-of-your-finances-with-joe-patterson-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41997 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41997&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2025/01/08/how-can-you-take-control-of-your-finances-with-joe-patterson-cfp Joe Patterson, CFP®, Financial Planner and Shareholder at Foster & Motley, Inc., shares practical strategies to reduce financial stress and gain confidence in personal finance management. This conversation highlights actionable steps to organize your finances, set priorities, and mitigate risks.Key Takeaways:(02:03) A financial inventory starts with listing income and fixed and variable expenses.(05:02) Budgeting apps simplify tracking and updates.(06:23) Regular updates to your financial inventory provide clarity over time.(08:13) Simplifying financial accounts can reduce stress and improve tracking.(12:19) Preparing for risks, such as job loss or economic downturns, is essential.(14:07) Insurance safeguards against unexpected life events.(15:11) Focus on paying down high-interest debt for long-term financial health.(18:21) Annual financial reviews create a habit and ensure progress toward goals.Resources Mentioned:Foster & Motley, Inc. | Website - https://www.fosterandmotley.comBudgeting Apps: Mint - https://mint.intuit.com/Personal Capital - https://www.personalcapital.com/Goodbudget - https://goodbudget.com/Connect With Joe Patterson:info@fosterandmotley.com+1 513-561-6640LinkedIn: Joe Patterson https://www.linkedin.com/in/josephapatterson/LinkedIn: Foster & Motley, Inc. https://www.linkedin.com/company/fosterandmotley/#WealthManagement #FinancialPlanning #InvestmentAdvisory #WealthManagementPodcast Website Administrator Wed, 08 Jan 2025 23:55:00 GMT f1397696-738c-4295-afcd-943feb885714:41997 https://www.fosterandmotley.com/insights/2025/01/06/market-update#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41522 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41522&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2025/01/06/market-update “No, that is the great fallacy: the wisdom of old men. They do not grow wise. They grow careful.” ― Ernest Hemingway, A Farewell to Arms  “How did you go bankrupt? Two ways. Gradually, then suddenly.” ― Ernest Hemingway, The Sun Also Rises 1   2024 was an unusual year in many ways, including in politics and markets. It included the withdrawal of one presidential candidate after the primary elections, and two unsuccessful assassination attempts of another candidate. Tight polls fostered widespread expectations of a close election and a drawn-out vote-counting process. Then, in yet another surprise, the November elections were essentially decided in a day. Whether delighted or dismayed by the several outcomes, nearly all celebrated the vote count order and brevity, and markets reacted with at least relief for the quick resolution. Significant reduction of political uncertainty, avoidance of a feared undecided election, and an expectation of a more business-friendly administration combined to boost US stocks by 5.7% in November before correcting some in December. Small fourth-quarter gains for stocks added to significant market advances in the first three quarters. Consumer Confidence, investor confidence, investment advisor confidence, and CEO Confidence all initially rose post-election. Moreover, the S&P 500’s total return in 2024 of 25% followed 26% gains in 2023.  25% or better market returns in back-to-back years is uncommon, having occurred only 3 other times in the past 100 years, the last one 26 years ago (1997-1998). How many of those were followed by a third 25%+ year? None.  One was very good (+21%), one was middling (+6.6%), and one was quite bad (-35%). It’s a mixed bag and a tiny sample, but a third year of 25%+ returns in 2025 would be unprecedented in at least the last 100 years. Still, market optimism abounds. The economy continues to expand at a good pace, and many expect the new Administration and Congress to ease substantial regulatory overhead and preserve investor-friendly and income-producer-friendly current tax rates (widely referred to as the anticipated tax “cuts”.)  And in case you haven’t heard: a momentous AI-driven productivity boom is nigh at hand. What’s not to love?! Recession omens, for one. Unemployment by one important measure (the “Sahm Rule”) is flashing a clear recession signal. After the US unemployment rate fell fairly consistently for several years to 3.5% shortly before COVID and rocketed to 14.8% in April 2020, unemployment fell to 3.4% in April last year. Then it climbed 0.6% to 4.2% with the December report. An increase of 0.5% or more in the unemployment rate from a cyclical low has historically preceded a recession and triggers the “rule” forecast. Another troubling precursor of recession is the reversal of an “inverted” yield curve which just occurred in December.2 Two indicators with excellent track records for predicting recessions are currently raising concerns. Beyond that, market celebrations dial up our disquiet and reinforce natural defensive tendencies. In fact (with a nod to Dorothy Parker), we could even say that beyond Recession fears, four are the issues about which we fret: tariffs, market ebullience, inflation, and debt. The telegraphed tariff regime could pressure economic growth, and corporate earnings while feeding inflation. That said, we feared the same in 2016-2017 while the economy and markets absorbed those tariffs and lots of trade war saber-rattling with ease, scarcely missing a beat. We hope tariff concerns are equally misplaced this time. As to market valuations, there are many ways to assess valuation, but most put the S&P 500 Index in the top 5-10% of its historical valuation range over the past 35 years. For example, the S&P 500 “forward” price to earnings ratio (i.e., the index divided by 2025 earnings estimates), is in the top 5% of its historical range since 1990. Very high valuations say a lot about likely long-term stock returns from here (expect lower than average), but little about the prospect for returns over the next year. However, valuations this extended leave little room for near-term disappointment, raising risks of larger adverse market swings in the event of economic shortfalls or negative geopolitical surprises. The December Consumer Price Index (CPI) report showed consumer inflation of 2.7% over the prior year, while ex-energy and food “core inflation” was higher at 3.3%. Producer prices rose 3.0% in the latest year, and 3.4% ex-energy and food. Inflation at such levels isn’t rampant, yet it remains sufficiently above the Fed’s 2% target to call into question continued interest rate cuts by the Fed. As noted, the election season included nearly every twist and turn imaginable (and some beyond). Yet one thing conspicuously absent was meaningful discussion by either party of the ballooning Federal Debt, which now exceeds 120% of Gross Domestic Product (GDP). Debt binges typically lead to undesirable consequences … eventually. But the likelihood of repercussion is exceeded by the uncertainty of its timing. That makes impractical protection against market swoons other than generally leaning into care and caution in portfolios. But paying down the Federal debt is all but impossible, and default is unthinkable, which leaves shrinking it through slow devaluation as the most likely outcome – i.e., inflation. Independent of what happens to inflation in the near term, rapid growth in the federal debt increases the risk of long-term higher inflation, which, among other things, would be a drag on long-term after-inflation returns. So increased portfolio protection against higher potential long-term inflation seems to be in order. Moreover, Federal debt comes from Federal deficit spending, and Federal spending above Federal revenues is running at the highest percent of GDP ever outside of war (WWII) or crisis (COVID). If it persists, it will likely continue to be monetized, fueling inflation and upsetting markets. If, on the other hand, Musk et al succeed at meaningful fiscal restraint, that could be a large near-term drag on the economy, with adverse effects on markets. There was little choice during COVID but for the Federal government to significantly increase deficits. However, the deficits never came down after the crisis waned and now it appears we are on a knife-edge with very little room for error in either direction. Deficits are fiscal stimulus and boost the economy and markets in the short run, but they also increase risks. Concerns about debt, inflation, economic growth, and market valuations are amplified by the market’s narrowness, which we’ve referenced multiple times recently. The top five stocks in the S&P 500 Index currently account for an astounding 28.7% of that index – if we managed a portfolio with such high concentration, we would not consider it adequately diversified, and you likely wouldn't either. In 2024, expensive stocks greatly outperformed cheap stocks, and by even larger margins large stocks outperformed small stocks, and US stocks outperformed international stocks. This means diversification, the very thing that should help most the next time the market takes a tumble, was penalized in 2024. In addition to narrow markets, we are seeing rising long-term interest rates: From just mid-September through early January as we write this, the 10-year Treasury yield has jumped up a full percentage point from 3.62% to 4.62% - a development stocks seem to have ignored. The turn of a New Year is a time for well wishes and optimism. Markets have certainly been ebullient, and we would prefer to be more positive and mirror market tone. But debt piles up, sticky inflation persists in the short term, economic growth may be showing some signs of faltering, and the stock market hit multiple new highs in 2024. When markets go up, they always do so “climbing a wall of worry”, and not all worries pan out. We hope that proves to be the case this time. But exceptionally high stock market valuations compel us to embrace as much caution as reasonable limits admit. As you know, caution for us doesn’t typically mean market timing. But it does mean very broad diversification, a higher focus on quality, and generally holding full target allocations of cash.   1 Two quotes from “Papa” in one epigraph?! I binged on Hemmingway last year. 2 Most of the time, longer bonds yield more than shorter bonds. Occasionally that flips and becomes “inverted”. We measure that by the difference between the 10-year Treasury note and the 3-month Treasury Bill. There have been eight recessions since 1970, and each was preceded by a yield curve inversion. Most recessions were also preceded by a yield curve reversion, i.e., by longer interest rates exceeding short-term rates again. Here’s the history graphed: You can see that the ending of yield curve inversions is nearer to the onset of recessions than the beginning of inversions. Inverted yield curves ended between 6 months in advance of the onset of recession to 8 months after, with the average being about 1 month after. Note also that the official recession start and end dates come from NBER and those points are typically declared one or two quarters after the fact.   Mark Motley, MBA, CFA Mon, 06 Jan 2025 19:20:00 GMT f1397696-738c-4295-afcd-943feb885714:41522 https://www.fosterandmotley.com/insights/2024/12/20/thom-guidi-cfa-quoted-in-cincinnati-business-courier-on-kroger-albertsons-merger#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41541 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41541&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2024/12/20/thom-guidi-cfa-quoted-in-cincinnati-business-courier-on-kroger-albertsons-merger Thom Guidi, CFA, shareholder and investment manager at Foster & Motley, was recently featured in an article by Steve Watkins of the Cincinnati Business Courier discussing the aftermath of the failed Kroger-Albertsons merger. Below is an excerpt from the article: "The collapse of the Kroger-Albertsons merger due to the Federal Trade Commission’s intervention highlights the increasing scrutiny on large-scale corporate consolidations.” Guidi noted that while the merger would have created significant efficiencies for the companies involved, the FTC’s antitrust concerns were a substantial hurdle. “Investors will now focus on how Kroger plans to allocate capital and pursue growth in the absence of this deal," he added. Click here to read the full article on the Cincinnati Business Courier’s website (a subscription may be required). Betsy Wolking, MSM Fri, 20 Dec 2024 15:10:00 GMT f1397696-738c-4295-afcd-943feb885714:41541 https://www.fosterandmotley.com/insights/2024/12/18/how-can-you-avoid-retirement-rollover-pitfalls-with-zach-binzer-cfp-and-heidi-lenhart#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41998 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41998&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2024/12/18/how-can-you-avoid-retirement-rollover-pitfalls-with-zach-binzer-cfp-and-heidi-lenhart In this episode, Financial Planner and Shareholder, Zach Binzer, CFP®, and Client Service Specialist, Heidi Lenhart provide a deep dive into the complexities of retirement plan rollovers, shedding light on when and why to consider this significant financial step. Whether you're consolidating accounts, navigating tax implications, or planning for retirement, they share actionable insights to help you make informed decisions.Key Takeaways:(01:10) A rollover transfers retirement funds between accounts during life transitions.(02:15) Over half of Americans face retirement rollovers at some point.(03:12) Common triggers: career changes, retirement, or in-service distributions.(06:13) Administrative fees and investment costs vary by plan type.(07:59) Consolidating accounts simplifies management and boosts options.(10:34) Advisors must provide a "Best Interest Analysis" for guidance.(14:13) Direct rollovers and trustee transfers prevent tax issues.(18:38) Roth accounts grow tax-free; traditional accounts defer taxes.(22:03) Advisors ensure smooth, compliant rollover processes.Resources Mentioned:Foster & Motley, Inc. | Website -http://www.fosterandmotley.comConnect with Zach Binzer and Heidi Lenhart:info@fosterandmotley.com+1 513-561-6640LinkedIn: Zach Binzer, CFP® -https://www.linkedin.com/in/zach-t-binzer-cfp/LinkedIn: Heidi Lenhart -https://www.linkedin.com/in/heidi-lenhart/LinkedIn: Foster & Motley, Inc. -https://www.linkedin.com/company/fosterandmotley/#WealthManagement #FinancialPlanning #InvestmentAdvisory #WealthManagementPodcast Website Administrator Wed, 18 Dec 2024 15:09:00 GMT f1397696-738c-4295-afcd-943feb885714:41998 https://www.fosterandmotley.com/insights/2024/12/04/how-will-you-be-impacted-by-potential-upcoming-tax-changes-with-luke-hail-mba-cfp-and-megan-lyons-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41999 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41999&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2024/12/04/how-will-you-be-impacted-by-potential-upcoming-tax-changes-with-luke-hail-mba-cfp-and-megan-lyons-cfp In this episode, Luke Hail, MBA, CFP®, Financial Planner and Shareholder, and Megan Lyons, CFP®, Financial Planner, both of Foster & Motley, Inc., discuss the potential changes to the federal tax code as the Tax Cuts and Jobs Act approaches its expiration. They provide insights into what this means for individual taxpayers and small business owners, discussing actionable strategies to navigate the uncertainties of potential tax increases.Key Takeaways:(01:01) The origins and temporary nature of the Tax Cuts and Jobs Act.(02:26) How the standard deduction changes may impact tax bills.(04:04) Sunset of 529 Plan benefits for private school tuition.(06:39) Qualified business income deductions may revert.(10:29) Estate tax exemption limit set to be halved.(14:11) Estate planning strategies for tax preservation.(16:28) The role of upcoming elections in tax policy.(23:03) Managing increasingly complex tax situations.Resources Mentioned:Luke Hail -https://www.linkedin.com/in/luke-hail-cfp%C2%AE-b606679/Megan Lyons, CFP® -https://www.linkedin.com/in/meganlyonscfp/Foster & Motley, Inc. | Website -http://www.fosterandmotley.comFoster & Motley 529 Plans: Creating a Winning Strategy for College Savings -https://www.fosterandmotley.com/insights/2018/08/21/529-plans-creating-a-winning-strategy-for-college-savingsConnect:info@fosterandmotley.com+1 513-561-6640LinkedIn: Luke HailLinkedIn: Megan LyonsLinkedIn: Foster & Motley, Inc.#WealthManagement #FinancialPlanning #InvestmentAdvisory #WealthManagementPodcast Website Administrator Wed, 04 Dec 2024 06:05:00 GMT f1397696-738c-4295-afcd-943feb885714:41999 https://www.fosterandmotley.com/insights/2024/11/20/how-do-fed-decisions-impact-your-portfolio-with-thom-guidi-cfa-and-sarah-browne-mfe-cfa#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42000 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42000&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2024/11/20/how-do-fed-decisions-impact-your-portfolio-with-thom-guidi-cfa-and-sarah-browne-mfe-cfa We're joined by Thomas Guidi, CFA, Investment Manager, and Sarah Browne, MFE, CFA, Fixed Income Portfolio Manager, both of Foster & Motley, Inc. Together, they discuss the Federal Reserve's role and its significant influence on interest rates, inflation and investment portfolios. They dive into the Fed's monetary policy, its dual mandate and how its decisions affect both short-term and long-term financial planning.Key Takeaways:(00:53) The Federal Reserve's dual mandate focuses on managing employment and inflation.(03:14) The Federal Open Market Committee (FOMC) meets every six weeks to adjust interest rates based on economic conditions.(04:46) The FOMC operates independently from political influence, serving under different administrations.(05:11) Interest rate adjustments can be swift and significant, especially in response to economic crises like Covid or the 2008 financial crisis.(06:45) The Fed funds rate is the primary tool used to control short-term lending and monetary policy.(09:06) Short-term interest rates are currently higher than long-term rates, signaling expectations of future rate reductions.(11:01) The Fed's strategy of holding interest rates high for an extended period has controlled inflation without triggering an economic collapse.(12:19) Investors should assess their cash reserves in high-yield savings accounts, preparing for potential interest rate declines.Resources Mentioned:Thomas Guidi -https://www.linkedin.com/in/thomas-guidi-cfa-21830952/Sarah Browne -https://www.linkedin.com/in/sarah-k-browne/Foster & Motley, Inc. | Website -http://www.fosterandmotley.comFoster & Motley, Inc. | LinkedIn -https://www.linkedin.com/company/fosterandmotley/Connect:info@fosterandmotley.com+1 513-561-6640#WealthManagement #FinancialPlanning #InvestmentAdvisory #WealthManagementPodcast Website Administrator Wed, 20 Nov 2024 06:15:00 GMT f1397696-738c-4295-afcd-943feb885714:42000 https://www.fosterandmotley.com/insights/2024/11/05/mark-motley-mba-cfa-quoted-in-cnbc-on-presidential-election-market-impact#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41540 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41540&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2024/11/05/mark-motley-mba-cfa-quoted-in-cnbc-on-presidential-election-market-impact Mark Motley, MBA, CFA, co-founder of Foster & Motley, was recently featured in an article by Sarah O’Brien of CNBC discussing the potential market implications of the upcoming presidential election. Below is an excerpt from the article: "Historically, market performance during an election year tends to reflect broader economic conditions rather than the election outcome itself.” Motley emphasized that while short-term market volatility is possible leading up to and following the election, long-term investors should remain focused on their financial goals rather than reacting to political headlines. “Markets have shown resilience over time regardless of who occupies the White House," he noted. Click here to read the full article on CNBC’s website. Betsy Wolking, MSM Tue, 05 Nov 2024 18:29:00 GMT f1397696-738c-4295-afcd-943feb885714:41540 https://www.fosterandmotley.com/insights/2024/11/01/ohio-business-magazines-ohio-500-includes-mark-motley#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42149 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42149&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2024/11/01/ohio-business-magazines-ohio-500-includes-mark-motley We’re proud to share that Mark Motley, MBA, CFA, has once again been named to Ohio Business Magazine’s Ohio 500 list, marking his third year in a row receiving this recognition. Mark is a co-founder of the firm and serves as co–chief investment officer, shareholder, and investment manager. According to Ohio Business Magazine editors, “the Ohio 500 goes beyond recognition—it highlights the leaders whose influence and vision are shaping Ohio’s future.” Ohio Business Magazine asked readers to fill out an online survey, spoke with their partners, reached out to community leaders, and did their own research to create the 2024 Ohio 500. Being recognized does not imply any correlation to the quality of service. Foster & Motley paid no fees to be included and had no influence on the criteria for this recognition. View the full list of honorees here. Betsy Wolking, MSM Fri, 01 Nov 2024 18:58:00 GMT f1397696-738c-4295-afcd-943feb885714:42149 https://www.fosterandmotley.com/insights/2024/10/23/what-do-you-need-to-know-about-executive-compensation-with-joe-patterson-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42001 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42001&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2024/10/23/what-do-you-need-to-know-about-executive-compensation-with-joe-patterson-cfp Joe Patterson, Financial Planner and Shareholder at Foster & Motley, Inc., dives into the complexities of executive compensation. Joe discusses how increased earnings bring unique challenges and opportunities, emphasizing the importance of proactive planning. From base salaries to stock options, Joe provides insights on maximizing compensation and mitigating tax impacts.Key Takeaways:(02:02) Base compensation is often fixed and reviewed periodically.(03:48) Bonuses can be significant, but it's vital to understand tax implications.(05:22) Deferred compensation, or “golden handcuffs,” incentivizes retention.(08:23) Restricted shares vest over time, requiring tax planning for future income.(13:23) Stock options offer the right to purchase shares and create leverage and volatility.(18:36) Performance shares are linked to time and performance metrics.(20:40) Managing concentrated stock positions is crucial for long-term portfolio health.(23:53) Gifting appreciated stock to charity offers tax advantages and emotional satisfaction.Resources Mentioned:Joe Patterson -https://www.linkedin.com/in/josephapatterson/Foster & Motley, Inc. | LinkedIn - https://www.linkedin.com/company/fosterandmotley/Foster & Motley, Inc. | Website -https://www.fosterandmotley.com/Connect with Joe Patterson:info@fosterandmotley.com+1 513-561-6640LinkedIn: Joe PattersonLinkedIn: Foster & Motley, Inc.#WealthManagement #FinancialPlanning #InvestmentAdvisory #WealthManagementPodcast Website Administrator Wed, 23 Oct 2024 11:16:00 GMT f1397696-738c-4295-afcd-943feb885714:42001 https://www.fosterandmotley.com/insights/2024/10/11/how-will-the-2024-election-impact-my-portfolio-with-ryan-english-mba-cfa-cpa-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42002 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42002&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2024/10/11/how-will-the-2024-election-impact-my-portfolio-with-ryan-english-mba-cfa-cpa-cfp We're joined by Ryan English, MBA, CFA, CPA, CFP®, Investment Manager and Shareholder at Foster & Motley, Inc., who shares insights on how upcoming elections may impact your portfolio. Ryan covers key factors that investors should consider as we approach Election Day 2024, and how to navigate potential market reactions to political outcomes.Key Takeaways:(01:03) Common client concerns about election impacts on investments. (01:34) Why selling stocks before the election is not advisable. (02:22) A strong labor market and inflation will shape the next president's term.(03:19) Presidents have minimal long-term influence on the stock market. (04:11) How energy sectors could fare under different administrations. (05:42) Defense spending tends to increase under Republican leadership. (06:38) Renewable energy would likely thrive under Democratic leadership. (07:50) Geopolitical risks and tariffs shape global investments.(09:29) Don't make portfolio changes based solely on election outcomes.Connect With Ryan English:info@fosterandmotley.com+1 513-561-6640 LinkedIn: Ryan English -https://www.linkedin.com/in/j-ryan-english-mba-cfa-cpa-cfp/LinkedIn: Foster & Motley, Inc. -https://www.linkedin.com/company/fosterandmotley/Foster & Motley, Inc. | Website - http://www.fosterandmotley.com#WealthManagement #FinancialPlanning #InvestmentAdvisory #WealthManagementPodcast Website Administrator Fri, 11 Oct 2024 15:42:00 GMT f1397696-738c-4295-afcd-943feb885714:42002 https://www.fosterandmotley.com/insights/2024/10/03/market-update#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41426 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41426&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2024/10/03/market-update 'Tis strange -- but true; for truth is always strange; Stranger than fiction… - Lord Byron’s Don Juan (1823)   These are strange and unsettled times in many ways. Yet no one appears to have told the stock market: the blended global stock index1 is up 18.71% this year through 9/30 and 6.78% in the third quarter. It’s the best performance for US stocks in the first three quarters in 47 years. The Federal Reserve chairman assures us the economy is in great shape while the three most recognized recession indicators are each flashing red. The Leading Economic Index (LEI) is negative and fell again last month. Unemployment has risen enough to set off the “Sahm Rule” recession indicator2. And as we’ve noted before, the “yield curve” – the difference between the yields of 10-year Treasury and 3-month Treasury obligations – remains negative.  Not to worry, rejoins the market: the Fed’s monetary policy has been just restrictive enough to bring down inflation but not so stringent as to cause a recession. The elusive “soft landing” has been achieved in the market’s judgment, and the prospect of recession is now off the table since the Fed is cutting interest rates again. History suggests such a soft landing is a rare accomplishment. In the last 60 years, only one Fed tightening cycle failed to bring a recession. Moreover, that one exception was in 1994, which some of us remember was not a fun year to own either stocks or bonds.  The Fed’s well-telegraphed interest rate cut last month was unsurprising. Less expected was its size: a cut of 0.50% rather than the much more typical 0.25%. The question looms: did that move reflect confidence about inflation or concern about employment? “Don’t Fight the Fed” may be the most widely held perception of market wisdom, so markets cheered. But this fact might mute the celebration:  In the past 50 years, only five interest-cutting cycles began with a cut of more than 0.25%. In four of those, a recession was soon identified – one had already begun but was not yet declared, and in the other three, a recession soon followed. Yes, that’s a tiny sample. But one out of five is not good odds for avoiding a recession. Per a recent survey, more Americans are looking for work now than in the past decade and employment worries are also at their highest level in ten years. Foreclosures and bankruptcies in commercial real estate loans are up. Delinquencies for both credit card loans and auto loans increased in September. And Brian Westbury of First Trust recently noted that in the past year, 82% of net new jobs have been either in government, education, or healthcare – not indicative of a robust economy. Sharing this does not mean we’re forecasting a recession. We aren’t. Jobless claims just fell to their lowest level in four months. Retail sales grew 2.1% year-over-year in August, and the July estimate was just revised significantly upward.  The consensus calls for continued, but slower, economic growth. That seems reasonable to us as the most likely outcome, and second-quarter GDP was a solid 3.0%. But we do recognize risks to the downside here and we fear those may be inadequately discounted into stock prices. The outlook for the international economy brightened in late September as China initiated a massive, multi-prong stimulus and the European Central Bank cut interest rates as well. Headline CPI inflation continues to improve, coming in at 2.5% annual growth in the latest release and giving the Fed cover for the rate cut. But “core” CPI (ex-food and energy) grew at a concerning 3.3% rate, so we’re not out of the inflation woods yet. If protracted, a dockworker’s strike in The Gulf and the East Coast could add to pricing pressures. And as if you haven’t noticed: Geopolitical tensions remain elevated. With all these crosscurrents, what do people want to discuss? Politics! Specifically: What will the election mean to markets?  Here, history tells a more soothing tale as Presidential elections have not been as important to markets as most think. With the sole exception of the 2001-2009 term of George W. Bush (which included both a recession in 2001 and the “Great Recession” of 2007-2009 and experienced an 8-year return for stocks of -4.5% per year3), all other presidential terms since Carter’s saw healthy stock market returns for the full four or eight-year presidential terms. Moreover, other than the George W. Bush exception just mentioned, there was remarkably little difference in the stock returns between any of the full terms, regardless of political party. Shorter-term, markets can be volatile in October of election years as uncertainties loom. But after the election is resolved (which may not be November 3 if it’s close and some states count slowly), markets tend to be strong through the end of the year regardless of the winning party. Also unlikely to be affected by who wins in November is the Federal Debt, which just surpassed $35 Trillion, as neither candidate prioritizes even slowing its growth. With the US GDP estimated at just under $29 Trillion, that means federal debt exceeds 120% of GDP now. More on this in future comments, but that’s not a good long-term development and it increases the longer-term likelihood of lower economic growth, lower prospective stock returns, and higher inflation. After lagging Growth stocks in the first half, Value stocks significantly outperformed in the third quarter, closing about half of their year-to-date gap. An overdue market turn toward long-term norms is welcome and encouraging. A disciplined and highly diversified investment approach is unlikely to avoid losses in the next market correction, whenever it may arrive, but we would expect it to generally fare better than broad stock indexes in such a circumstance. On the other hand, should the economy continue to avoid a decline, and markets remain elevated, such a conservatively yet fully invested approach should prosper as well. That’s about as much as we can ask for in a world that’s increasingly stranger than fiction.    1 The blended global stock index is 70% Russell 3000 (total) of the US stock index and 30% of the MSCI ACWI ex-US Index. 2 Per the Sahm Rule, a recession is signaled when the three-month average in unemployment rises 0.5% or more above its lowest point in the prior twelve months. 3 It should also be noted that the George W. Bush presidency began as the Tech Bubble of the late 1990s was unwinding. At the market peak, big-cap Tech market leaders were extremely expensive. In fact, the only other time to rival that for extended valuations and concentrated markets has been … now. Mark Motley, MBA, CFA Thu, 03 Oct 2024 12:05:00 GMT f1397696-738c-4295-afcd-943feb885714:41426 https://www.fosterandmotley.com/insights/2024/10/02/cnbc-includes-foster-motley-in-fa-100-list-for-sixth-year-in-a-row#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41424 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41424&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2024/10/02/cnbc-includes-foster-motley-in-fa-100-list-for-sixth-year-in-a-row CNBC has recognized Foster & Motley as one of the nation’s 100 top-rated financial advisory firms of 2024! It is the sixth consecutive year the firm has earned a spot in the annual ranking. Foster & Motley is the only local company to make the list for six years straight. At 34 in the ranking, Foster & Motley is in the top 1% of the 40,896 RIA firms from the Securities and Exchange Commission regulatory database. "We’re deeply grateful for the continued trust of our clients and the dedication of our talented team," said Zach Horn, Managing Partner. "Being recognized on this list for six years running is a testament to our client-first approach and our employees' unwavering commitment. It’s truly an honor to serve our clients and receive this acknowledgment again." The 2024 CNBC FA 100 list, released on October 2, 2024, was compiled using a proprietary methodology developed by CNBC in collaboration with data provider AccuPoint Solutions. Foster & Motley provided firm data as of May 31, 2024. CNBC and AccuPoint Solutions applied the weighting for each category to further refine and rank the firms. The rankings consider many factors such as assets under management (AUM), years in business, number of certified financial planners, and the number of employees, among others. The full list and methodology can be found at CNBC.com/FA100. See Foster & Motley's disclosure for additional details on CNBC and AccuPoint Solutions’ selection criteria.  Betsy Wolking, MSM Wed, 02 Oct 2024 12:13:00 GMT f1397696-738c-4295-afcd-943feb885714:41424 https://www.fosterandmotley.com/insights/2024/09/26/rachel-a-rasmussen-mba-cfa-cdfa-included-in-2024-forty-under-40-class#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41543 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41543&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2024/09/26/rachel-a-rasmussen-mba-cfa-cdfa-included-in-2024-forty-under-40-class We are thrilled to share that Rachel A. Rasmussen, MBA, CFA, CDFA®, Investment Manager and Shareholder at Foster & Motley, has been named to the Cincinnati Business Courier’s prestigious Forty Under 40 class of 2024. This annual recognition celebrates young professionals who are shaping the future of Greater Cincinnati's business community.  Rachel has been a part of Foster & Motley since 2010 and has grown into an integral member of our investment management team. As a Chartered Financial Analyst (CFA) and Chartered Divorce Financial Analyst (CDFA), she provides guidance in managing portfolios and identifying investment strategies tailored to her clients’ financial goals. Her deep knowledge of investments, combined with her thoughtful and personalized approach to client service, has earned her a positive reputation in the financial services industry. Rachel’s inclusion in this year's Forty Under 40 class is a testament to her commitment to excellence in both her career and community involvement. Outside of work, she volunteers with various non-profits and other organizations, including Impact 100, Talbert House, CFA Society, and Cincinnati Estate Planning Council.  Please join us in congratulating Rachel on this well-deserved recognition! We are proud of her continued impact and look forward to her future achievements. You can view Rachel’s profile and brief interview here, or the full class of honorees here (subscription may be required.)   No direct or indirect fees were paid to be included in the Cincinnati Business Courier’s Forty Under 40 recognition. This award is not intended as a testimonial, endorsement, or guarantee of future results.  Per the Cincinnati Business Courier website, honorees are chosen through an independent editorial review, with selections based entirely on their merits, achievements and contributions to their organizations and local community. Commercial interests with the Business Journal are not considered. Review panels may be comprised entirely of Business Journal leadership, or in combination with outside judges determined by the news department. The Business Journal’s editorial leadership has final say and approval for all awards and honorees. Betsy Wolking, MSM Thu, 26 Sep 2024 16:11:00 GMT f1397696-738c-4295-afcd-943feb885714:41543 https://www.fosterandmotley.com/insights/2024/09/25/how-can-aggressive-savings-today-lead-to-early-retirement-with-nicholas-roth-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42003 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42003&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2024/09/25/how-can-aggressive-savings-today-lead-to-early-retirement-with-nicholas-roth-cfp In this episode, we're joined by Nicholas Roth, CFP®, Financial Planner at Foster & Motley, Inc., who shares valuable insights on effective savings strategies and the importance of financial planning to meet various life goals.Key Takeaways:(00:59) Saving at least 15% of your gross income is a good rule of thumb. (01:34) Power savers aim to save 25%-50% of their gross income. (02:12) The FIRE movement advocates for saving 50%-70% or more of your income. (05:02) Raising a child can cost nearly $250,000. (07:19) Compounding interest is crucial for financial growth. (07:59) Passive income streams can supplement your savings. (09:26) The decline of pension plans has shifted retirement savings responsibility. (11:33) The unknowns in life make it hard to know if you're saving enough, but 15% is a solid target.(12:35) Financial planning should adapt to life changes and priorities.(13:41) Clear goals are a necessary part of financial planning. Resources Mentioned:Einstein's 8th Wonder of the World -https://www.nasdaq.com/articles/this-is-the-8th-wonder-of-the-world-according-to-albert-einstein.-and-utilizing-itFoster & Motley, Inc. | Website -http://www.fosterandmotley.com/Connect:info@fosterandmotley.com+1 513-561-6640LinkedIn: Nicholas Roth - https://www.linkedin.com/in/nickroth14/LinkedIn: Foster & Motley, Inc. - https://www.linkedin.com/company/fosterandmotley/LinkedIn: Patrice Sikora - https://www.linkedin.com/in/patrice-sikora-a1918212/#WealthManagement #FinancialPlanning #InvestmentAdvisory #WealthManagementPodcast Website Administrator Wed, 25 Sep 2024 17:06:00 GMT f1397696-738c-4295-afcd-943feb885714:42003 https://www.fosterandmotley.com/insights/2024/09/11/how-can-wealth-management-milestones-guide-your-financial-journey-with-rachel-rasmussen-mba-cfa-cdfa-and-megan-lyons-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42004 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42004&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2024/09/11/how-can-wealth-management-milestones-guide-your-financial-journey-with-rachel-rasmussen-mba-cfa-cdfa-and-megan-lyons-cfp In this episode, we're joined by Rachel Rasmussen, MBA, CFA, CDFA®, Investment Manager and Shareholder, and Megan Lyons, CFP®, Financial Planner, both from Foster & Motley, Inc. Together, they explore the concept of wealth management milestones, discussing how to set, track and celebrate financial goals at every stage of life.Key Takeaways:(02:32) Identify significant financial markers to boost confidence.(04:47) Personalized milestones help clients stay motivated.(07:47) In your 20s, focus on setting good financial habits.(12:20) Balancing major life events while continuing to save and invest wisely.(14:42) Maintaining financial responsibility while enjoying life.(18:55) Watching spending habits to ensure long-term financial stability.(21:39) Financial planning and emotional readiness for retirement.(27:23) Estate planning and organizing your financial legacy.Resources Mentioned:Rachel Rasmussen - https://www.linkedin.com/in/rachel-rasmussen-cfa-cdfa/Megan Lyons - https://www.linkedin.com/in/meganlyonscfp/Foster & Motley, Inc. | Website - http://www.fosterandmotley.comGretchen Rubin's podcast and books: Inspiration for the "ta-da" concept. - https://gretchenrubin.com/James Clear's “Atomic Habits”: A guide to building good habits that pay off in the long run. - https://jamesclear.com/atomic-habitsConnect With Rachel and Megan:info@fosterandmotley.com+1 513-561-6640Foster & MotleyLinkedIn: Rachel RasmussenLinkedIn: Megan LyonLinkedIn: Foster & Motley, Inc.#WealthManagement #FinancialPlanning #InvestmentAdvisory #WealthManagementPodcast Website Administrator Wed, 11 Sep 2024 08:41:00 GMT f1397696-738c-4295-afcd-943feb885714:42004 https://www.fosterandmotley.com/insights/2024/07/19/cincinnati-business-courier-book-of-lists-includes-foster-motley#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41359 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41359&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2024/07/19/cincinnati-business-courier-book-of-lists-includes-foster-motley Every year the Cincinnati Business Courier surveys companies across the region and compiles data necessary to rank companies for the Book of Lists.  Foster & Motley was included in the Top 25 Money Management Firms list for 2024, which was published on July 19, 2024. Summary of ranking methodology: The rankings are based on each firm’s Assets Under Management. Foster & Motley pays no fees to be included in the ranking. It is not the intent of the Cincinnati Business Courier to endorse or list participants or imply that rank has any correlation to the quality of service. For a detailed list of firms ranked, please click here. Betsy Wolking, MSM Fri, 19 Jul 2024 20:51:00 GMT f1397696-738c-4295-afcd-943feb885714:41359 https://www.fosterandmotley.com/insights/2024/07/19/foster-motley-included-in-fa-magazines-top-200-rias#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41358 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41358&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2024/07/19/foster-motley-included-in-fa-magazines-top-200-rias We are excited to announce Foster & Motley was ranked in the top 200 firms in the nation in Financial Advisor Magazine’s 2024 Annual RIA Ranking! This list was published in the July/August 2024 edition of Financial Advisor Magazine. To read the July 15, 2024 article where this list was shared, click here. The list begins on page 38. Financial Advisor (FA) magazine invites Registered Investment Advisors annually, to complete a survey for this ranking. The specific criteria for the ranking are not included in their summary article. Foster & Motley completed a survey to be considered for this ranking and pays no fees to be included. According to FA Magazine, 431 firms were ranked and are listed by assets under management. FA magazine independently sets its criteria, and Foster & Motley has no influence on the criteria or the ranking. Betsy Wolking, MSM Fri, 19 Jul 2024 20:47:00 GMT f1397696-738c-4295-afcd-943feb885714:41358 https://www.fosterandmotley.com/insights/2024/07/03/market-update#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41344 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41344&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2024/07/03/market-update “This is the strangest life I’ve ever known.” - Jim Morrison’s “Waiting for the Sun” Markets have been strong yet US economic growth in the first quarter slowed to 1.4% annually in the latest revision of Gross Domestic Product (GDP). That is down 59% from fourth quarter growth and about 40% slower than average growth in the prior four quarters. The unemployment rate recently edged up to 4%. The Institute for Supply Management’s ISM Manufacturing Index just dipped into contraction territory. The latest annual inflation measured by the Consumer Price Index (CPI) was 3.3%, stubbornly remaining above The Federal Reserve’s 2% target. Geopolitical tensions remain the highest in many years. Interest rates have risen so far this year. Federal debt keeps rising alarmingly (more on this later). Mid-way through this election year, much of the current political buzz is about the possibility of replacing one of the candidates after having won delegates to clinch his party’s nomination.   It is a strange moment and discomforting. Yet stocks have continued to rise with little apparent concern. This year through 6/30, our blended global stock benchmark is up 11.18%. Its components are the Russell 3000 Index, up 13.56%, and the MSCI ACWI ex-US international index, up 5.69%. Valuations remain high with US stocks trading at 22.7x forward earnings estimates. Most of those US stock index gains were propelled by a handful of large, popular US Tech stocks.   This may sound like a broken record, but large US growth stocks outperformed cheap stocks, smaller stocks, and non-US stocks. REITs modestly fell and most bonds produced slightly negative total returns so far this year. Experience reminds us that what goes around comes around, and history’s lesson is clear: investing is a long-term endurance contest, not a sprint. Some portion of the market is always the current hot segment – the latest fad – but steady value and broad diversification is the path that achieves long-term goals. As we survey this landscape, our biggest concerns are money supply contraction in the short-term, and the federal debt and its implications in the long-term. M2, the most common measure of the money supply, just recovered to positive annual growth in April and May. But from December 2022 through this March, it declined year-over-year. Few are discussing this. Many now think changes in M2 have little impact on the economy (even though a surge in M2 growth in late 2020-2021 was followed by the surge in inflation in 2021-2022, and the peak in the annual inflation rate came 16 months after the peak in M2 growth). We hope dismissing the money supply contraction is correct, but we note that actual declines in M2 are rare, and it last happened in the early 1930s. Given typical lags between changes in monetary conditions and economic effects (inflation after excess growth, economic weakness after excess contraction), the economy appears to be at a critical juncture now. The Federal debt is our growing long-term concern, the more so because neither leading party’s standard-bearer is concerned about it. It greatly increased during each of the past two administrations, as neither of the main political parties appears to have any will to address it. Debt measured in trillions of dollars is an abstraction difficult to comprehend. To help cut through that, the Congressional Budget Office last year reframed Federal debt and deficits in terms of the average household. In 2022, if the average household earning $74,580 per year spent like the federal government, it would have spent $102,961, running up $28,381 in new debt. It would, however, be difficult for that family to borrow that much since it would already owe $564,749, its share of the federal debt. Many say that for our government, that much debt is not a problem because the dollar is the world’s “reserve currency:” where else can China and other saving nations invest all those savings if not in US Treasury bonds? Our view is that’s fine until it stops being fine. In other words, anything requiring confidence is subject to a loss of confidence at some point along the way, and confidence can be a fickle thing.  Long-term investors need a cool-eyed awareness of near- and long-term risks. But they can’t allow concerns about those risks to paralyze them into simply cowering in cash. In the short term, if it turns out that the Federal Reserve (which controls the money supply) has made a policy error and has been too “tight,” then a regular cyclical recession could be in the offing. But it would not be the first, nor the last, and while not much fun at the time, recessions are always temporary and don’t have to disrupt financial plans (for those that keep their heads and don’t panic sell while markets are down).  And while long-term debt concerns could ultimately precipitate an eventual crisis, the much more likely event is a sustained period of higher inflation than otherwise coupled with lower long-term economic growth. While not anyone’s preferred economic scenario, it doesn’t imply that long-term stock return expectations should be negative, or even lower than bond returns. But it does imply lower stock returns than we’ve generally enjoyed over the last 15 years or so, with likely more volatility along the way. This does not look like a time to emphasize chasing returns in hot sectors. Rather, this looks like a time to be more concerned with managing risk with very broad diversification and with portfolio holdings representing good valuations and claims on reliable cash flows. We are not predicting storms, but we are working diligently to ensure that portfolios are ready when inevitable squalls arise. Mark Motley, MBA, CFA Wed, 03 Jul 2024 19:09:00 GMT f1397696-738c-4295-afcd-943feb885714:41344 https://www.fosterandmotley.com/insights/2024/05/09/are-you-getting-the-most-out-of-your-health-savings-account#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=30948 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=30948&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2024/05/09/are-you-getting-the-most-out-of-your-health-savings-account Learn why HSAs are the new retirement account Updated May 9, 2024 Health Savings Accounts (HSAs) have become prominent as more and more employers are offering High Deductible Health Plans (HDHPs) in an effort to control their health insurance costs. Most employers offer an HSA in conjunction with the HDHP.  The original intent of the HSA was to allow employees to save for a “rainy day” when they need to utilize the healthcare system and have to pay 100% of the costs up to their deductible. But a new trend has been emerging – save in your HSA, but do not use the funds to pay for current medical costs. Strategies to most efficiently utilize HSA benefits are emerging as the accounts become more prevalent. These unique planning opportunities are available due to the “triple tax benefits” that HSAs provide: Tax deductible contributions: Contributions to HSAs are tax deductible. Much like contributions to your traditional 401(k) or 403(b) plan, you will pay less in taxes if you contribute to an HSA. The current contribution limits for 2024 are $4,150 for individual and $8,350 for family coverage, with a $1,000 catch up if you are over 55 years old.   Tax-free growth: Similar to a qualified plan (IRA, Roth IRA, 401(k), etc.), the IRS allows the investments in these accounts to grow tax deferred, meaning there is no tax on any growth and income earned inside the account. Tax-free distributions: Withdrawals from HSAs are tax-free (much like Roth IRA’s), provided the funds are used for qualified medical expenses. Because of this triple tax benefit for HSAs, it may be in your best interest to utilize your HSA for long-term savings rather than short-term annual medical expenses. If your cash flow permits, the strategy involves making the maximum allowable annual HSA contribution and avoiding distributions for current medical expenses by paying those “out of pocket” instead. This allows you to maximize the value of your HSA. Most HSA banks and custodians offer investment choices for HSAs. Utilizing these over the long-term can lead to substantial tax-free compound growth. As an HSA grows to large values (potentially in excess of $100,000 over time), it begs the question: how do I get the money out and when? A publication from Fidelity, “2019 Retiree Health Care Cost Estimates,” estimated that a 65-year-old couple retiring in 2019 can expect to spend $285,000 in healthcare and medical expenses throughout retirement. This would imply that retiring with an HSA account valued at $285,000 is not a crazy notion. As a quick note, Medicare premiums do qualify for reimbursement from your HSA. If you have concerns about growing a large HSA balance and needing funds prior to retirement, consider utilizing a strategy called the “Shoebox Method.” The premise of this strategy hinges on the fact that the IRS does not currently impose time restrictions on when HSA reimbursements need to be taken. As it stands, a shoebox reimbursement could be made years or even decades in the future. Regulations may change, but as of early 2024, there is no limitation.  The idea is to keep all qualified medical receipts in a figurative “shoebox.” In practice, this could likely be a physical filing cabinet or online document storage for scanned and saved receipts (remember to back it up!). If an unexpected need arises in the future, you have a repository of receipts available to reimburse from your HSA and provide funds, tax-free! For example, John has been diligently saving and growing his HSA for 5 years. His HSA balance is now over $20,000 and growing. John has been saving all of his qualified medical receipts in a “shoebox,” and those receipts now total $10,000. John suddenly has a non-medical emergency and needs $5,000 quickly, but only has $1,000 in his bank account, and everything else is in his 401k and HSA. Instead of getting a loan or using his credit card, John decides to pull out his “shoebox” and reimburse himself for old medical expenses totaling $5,000. This strategy not only allowed John to maximize the triple tax benefits of his HSA, but it also provided him access to $5,000 of tax-free cash in a time of emergency. Is it possible to grow your HSA too much? The answer could be “yes”. HSAs are not the best accounts when it comes to efficient estate planning. Leaving an account to a spouse is relatively straightforward. However, if a non-spouse inherits the account, it could become taxable income in the year of your death. The rules vary by state, so consult with your estate planning attorney for more specific guidance. If you do feel your HSA has grown too large, and you’ll have more than you need for medical expenses in retirement, you can take distributions for non-medical purposes after age 65 with no penalty. You will owe tax on these distributions at your marginal tax rate, but the 20% penalty will no longer apply. In this case, the tax treatment would be the same as taking a distribution from your Traditional IRA. HSAs have evolved beyond their original purpose of saving to offset annual out of pocket healthcare costs related to High Deductible Health Plans (HDHPs) and transformed into useful financial planning tools with the potential for significant long-term benefits. Please consult your financial planner if you’d like to evaluate whether these strategies can work for you. Zach Binzer, CFP® Thu, 09 May 2024 11:53:00 GMT f1397696-738c-4295-afcd-943feb885714:30948 https://www.fosterandmotley.com/insights/2024/04/02/market-update#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41260 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41260&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2024/04/02/market-update “… full oft we see Cold wisdom waiting on superfluous folly.” -Shakespeare, All’s Well That Ends Well Stocks started this year strong, extending the run of positive months to five. Small US stocks and non-US stocks posted more than respectable returns of 4.5% and 5.2% for the quarter (that’s up over 19% on an annualized basis!) But the star of the first quarter was US Large stocks as the S&P 500 returned 10.6%. Blended global stocks (our benchmark, incorporating large and small, US and non-US stocks) returned 8.2% in the first quarter and our managed equities generally matched that – something we seldom see in such strong markets. Bond yields rose a bit as prices fell, and the taxable bond index declined 0.8% in the quarter. Listed real estate securities (REITs) declined 1.3% in the last three months but other diversifiers were generally strong, including solid results from insurance-linked securities, and most “market risk hedges” sleeves produced returns above 5% so far this year. Given a rare year-over-year decline in the US money supply, and recession signals from both the usually reliable Index of Leading Economic Indicators and the Treasury “Yield Curve,” most economists expected a recession by now. But that hasn’t occurred. Instead, it increasingly looks like we may achieve the always sought but seldom-seen “soft landing” for the economy – that is, a substantial reduction in what was raging inflation a year or so ago without tipping the economy into a recession. Most economists now expect an economic slow-down over the rest of this year, while a few who we follow and respect still anticipate a recession later in the year. We’ll see. But so far, so good.  Recent stock gains have been largely fueled by anticipation that the Fed will soon begin a series of interest rate cuts. Often, it seems like that has been the market’s sole recent focus. But for all the attention on prospective rate cuts, we seldom see anyone ask: Why?  We, on the other hand, think that is a useful question. The economy is growing. Inflation remains stubbornly higher than the Fed’s 2% target. Labor markets are tight. The stock market has been strong. Coming rate cuts against this backdrop may risk reigniting inflation. So, why take that risk? We conceive of only two possible reasons, and neither is a sign of underlying economic strength: 1) US federal debt is now so large that unfunded payments on that debt at current interest rates could add enough to federal borrowings to depress bond prices and push up interest rates more in a vicious cycle. Or 2), the Fed perceives the economy is too weak to persist in expansion mode given anything like “normal” interest rates for very long, and that it needs a boost from accommodative monetary policy just to keep expanding. An effort to mitigate either or both of those possible risks would be the only reason we can imagine that would compel the Fed to risk fueling more inflation by cutting rates soon. We think the Federal Reserve has generally done a good job of late, but it’s in a tight spot with little room for error. Recent stock strength has raised US stock market valuations to about 21 times forward earnings estimates, so there is little room for error there either. S&P 500 earnings estimates for the quarter that just closed are expected to have grown only 3% from the prior year. For the full year, earnings growth is expected to grow about 11%. The market has anticipated this earnings growth acceleration in its recent advance. A significant risk for markets is if earnings growth comes in softer than expected.   In other risks, geopolitical hazards have risen in the first quarter. Election years add a different uncertainty to the mix (though election years tend to be positive ones for stocks.) Widespread market speculation is evident in many ways: digital currency prices, extreme market concentration in a few very large companies, the resurgence of interest in new “meme” stocks, and more. As concerning as the overall market valuation is, the valuations of a few very large, very well-known, strong-performing US Tech and Tech-adjacent stocks are much worse. The equal-weighted price-to-earnings ratio of the so-called Magnificent 7 stocks (MSFT, AAPL, NVDA, GOOG, AMZN, META, and TSLA) is now just under 38x.  But there is always a wide distribution of market valuations, and most stocks are not as expensive as those darlings, and many valuations today are not extreme. Moreover, small stocks and international stocks generally represent much better valuation opportunities than large US stocks. The same looks to be true for many diversifiers now, including private credit, insurance-linked securities, (increasingly) real estate, and some inflation hedges.  That’s another way of saying that while we always believe diversification is a critically important tool in investing, outside of late 1999, we’ve never seen a time where we believe it has been more important to be diversified and to be underweight those largest, most popular Tech stocks now. We thank GMO for the chart below, and we thank them for permission to share it.  We just added the dotted trend lines: red for the long downtrend, and green for the three shorter uptrends. This shows the last 65 years of relative performance comparing the largest 10 stocks in the S&P 500 Index to the other 490 (each group equal-weighted, and regularly reconstituted). When the solid line fell (as it has done most of the time), the largest 10 stocks underperformed the rest of the S&P 500. When it rose (as it has most of the time in recent years), the largest stocks did better than the rest of the market: Past performance is no guarantee of future results. A glance at the chart above reveals several things: 1) the largest stocks underperform the other stocks (and the market overall) in the long run, 2) that underperformance doesn’t occur in a straight line, and in fact, strong counter-trend moves occur from time to time that result in the largest companies outperforming for years at a time (as in the late 1960s to early 1970s, most of the 1990s, and recently), and 3) the current countertrend run of largest company outperformance looks a bit long-in-the-tooth relative to the other similar runs. What can’t be seen on the chart, but which we’ll add, is that the counter-trend upswings in the largest stocks result in the market getting increasingly concentrated in the largest companies, and that both the late-1960s to early 1970s outperformance of the largest companies and the one that occurred through most of the 1990s were each followed by significant bear markets. We don’t know when the very largest companies will revert to their long-term mode of generally underperforming, or when this bull market will end, but when it does, it may likely coincide with the end of this episode of outperformance of the largest stocks. For now, there is an abundance of much cheaper and much more attractively priced investment opportunities in smaller US stocks, international stocks, and some alternatives.  Investment even in those relatively very cheaper corners of the stock market won’t likely be able to do well enough to overcome the pull of a bear market and leave portfolios with positive returns during a broad market decline. However significant relative strength in such an environment should be enough to materially mitigate declines. This means the present looks like a good time to emphasize playing defense by embracing the reasonable valuations available outside of the high-flyers and by increased attention to meaningful diversification. This is another reason it looks like an unusually bad time to be overweight the largest stocks that have performed so strongly in recent years and have been so tempting. One common market pitfall is to think that five or even ten years of recent history constitutes a “long time” from which to draw historical conclusions.  But that often proves a trap, as “long term” in markets generally means 20 to 30 years and more. The “cold wisdom” of a truly long-term perspective on markets often requires considerable patience while shorter-term “superfluous folly” plays itself out. History shows markets ultimately reward patience and discipline. Mark Motley, MBA, CFA Tue, 02 Apr 2024 16:54:00 GMT f1397696-738c-4295-afcd-943feb885714:41260 https://www.fosterandmotley.com/insights/2024/01/03/market-update#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41198 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41198&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2024/01/03/market-update Three months ago, given unusually unsettled conditions, we expressed caution.  Inflation had just turned up again (from 3.1% year-over-year in July to 3.7% in September), the credit rating of the US Government had just been downgraded, autoworkers were on strike, oil’s price had topped $100/bbl., student loan repayments were restarting, interest rates were at 16-year highs, bank credit was tightening, and war in Ukraine continued.  And that was all before Middle East tensions exploded to multi-decade highs following the brutalities of October 7. However, in these last three months, inflation cooled, the price of oil declined, economic growth strengthened, geopolitical tensions simmered rather than boiled over, and markets recovered.  Perhaps the most important change for markets was that whereas three months ago, the Fed had recently reiterated that we should expect interest rates to remain “higher for longer”, today the Fed has telegraphed it has “paused” rate increases with interest rate cuts now expected as early as March.  It is hard to overstate the importance such a shift in Fed posture has on markets. One thing that hasn’t changed is that US stock market performance continued to remain unusually concentrated in the largest companies – specifically, in the so-called “Magnificent 7”: APPL, MSFT, GOOG, AMZN, NVDA, META, and TSLA, which now account for over 28% of the S&P 500 Index. Over the full year, economic growth greatly exceeded consensus expectations and interest rate volatility remained higher than at any time since the financial crisis of 2008-9.  For several years prior, interest rates had been so abnormally low that we took the unusual position of shifting bond portfolio average maturities shorter than those of the market indices. But in 2023, our decision to extend maturities back toward neutral (i.e., matching bond index average maturities) proved well-timed and was beneficial to bond portfolio performance (but not as beneficial as was our short maturity stance in the bond market’s horrible year of 2022.)  At this point, interest rates that are high relative to recent years are just approaching normal from a longer perspective.  This normalization improves prospective fixed-income returns. 2023 was a better-than-average year for our absolute performance overall as well as for stocks, bonds, REITs, and market risk hedges, but private real estate struggled.  Our relative performance in US stocks lagged last year as should be no surprise in an environment in which just a few of the largest, most expensive stocks outperformed. The overall stock market (including, by definition, those largest seven stocks) remains unattractive.  But excluding those largest stocks, the market is somewhat more appealing.  The outperformance of the largest stocks has been fueled more by speculation (that is, by market psychology) than by fundamentals and the extremity of that outperformance increasingly looks like an unusual opportunity to invest outside of that narrow group.  This set of conditions calls for maximum diversification across stock market size, geography, sector, and across asset classes. One of our most important roles is to get and keep investor portfolios diversified.  That always sounds good in theory to investors.  In practice, it’s one of the hardest things to do, because it always requires leaning away from what has recently done well and leaning into what has recently lagged.  That is seldom comfortable, does not come naturally to most investors, and can often feel painful. We certainly don’t know when the largest growth stocks will stop outperforming everything else.  But uncertainty such as that is exactly why diversification is critically important.  None of that implies performance implications over the short term (for example, for the coming year), but history is abundantly clear that the most popular and expensive stock groups are not the subsequent leaders over longer-term horizons of ten years and more. Unfortunately, one thing that has not changed in the past three months is the outlook for the US deficit and debt.  Total Federal bond debt topped $34 Trillion, having expanded 45% in just the last four years (a period in which control of Congress was not limited to either political party.)  In fiscal 2023, with a growing economy, Federal tax receipts were $4.44 trillion while Congress spent about $6.1 trillion, borrowing to fill the yawning gap of $1.7 trillion.  Interest on the debt was $659 billion despite an average interest coupon of about 2%.  As the interest rate for newly issued Treasury bonds is closer to 4% and the average maturity of Treasury debt is 6.25 years, that means that US government interest expense is set to nearly double in about the next 12-13 years even if the government were to suddenly balance its budget (which, of course, is not about to happen.)  With rising geopolitical pressures from China, Iran, and Russia, defense spending at least is only likely to increase. This has been building for a very long time and none of it creates problems for markets in the near term.  But long term, there are only four options: 1) US bond default, 2) more government income (i.e., higher taxes), 3) less spending, or 4) inflation (i.e., devaluing the currency, and, therefore, the debt.)  Default will not occur while lenders are to be found, and the dollar is the world's reserve currency, so lenders will be likely to continue to lend.  In Congress, Republicans generally don’t want to burden the economy by raising taxes, while most Democrats and many Republicans don’t want to cut federal spending (even though it’s over 23% of GDP now.)  So, neither is likely.  That leaves inflation, which will probably be higher over the next 10-20 years than it was in the prior period.  That means lower real long-term economic growth, lower real (after-inflation) long-term stock and bond returns, and more reason to invest in inflation hedges like TIPs and real assets (such as pipelines and other infrastructure, natural resources, farmland, and eventually, real estate - though real estate is facing a severe credit crunch now).  In bond portfolios, we’ve reduced traditional bonds in favor of a variety of forms of alternate credit that are less subject to interest rate risk.  Broadly speaking, the prospect of higher long-term inflation is yet another reason to embrace significant diversification. As we have entered a new tax year, we’ll use the new year’s additional tax flexibility to further reduce appreciated concentrations in stocks - especially in those high-flying seven that have become too popular - and we’ll redeploy the proceeds in ways that produce the most improvement in diversification in each unique portfolio. Mark Motley, MBA, CFA Wed, 03 Jan 2024 20:17:00 GMT f1397696-738c-4295-afcd-943feb885714:41198 https://www.fosterandmotley.com/insights/2023/12/13/how-can-i-destress-my-investment-experience-with-rachel-rasmussen-mba-cfa-cdfa-and-zach-binzer-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42005 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42005&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/12/13/how-can-i-destress-my-investment-experience-with-rachel-rasmussen-mba-cfa-cdfa-and-zach-binzer-cfp If market fluctuations stress you out and cause you to make irrational financial choices, you're not alone. It is only human to let emotions get in the way and give in to biases.In this episode, Rachel Rasmussen, MBA, CFA, CDFA®, and Zach Binzer, CFP®, help you understand how you can destress your investment experience and become a more disciplined investor. Tune in to understand common behavioral finance traps, how they translate to investor results, and solutions for reducing investing anxiety.Rachel and Zach share more about:How mental biases impact our financial decision-making (with examples)Eye-opening statistics that show the risks associated with “timing” the marketThe value of seeking objective input and behavioral coaching from a financial advisorHow risk tolerance evaluation and stress testing can reduce investor anxietyAnd moreResources:Dalbar QAIB 2023: Investors are Still Their Own Worst EnemiesDoes Market Timing Work? by the Schwab Center for Financial ResearchAdvisor Alpha: The View from VanguardForbes: How To Manage Anxiety When Investing In The Stock MarketConnect With Rachel and Zach:info@fosterandmotley.com 513-561-6640Foster & MotleyRachel RasmussenZach BinzerLinkedIn: Rachel RasmussenLinkedIn: Zach BinzerLinkedIn: Foster & Motley Website Administrator Wed, 13 Dec 2023 16:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42005 https://www.fosterandmotley.com/insights/2023/12/04/beneficial-ownership-information-reporting-requirements-what-you-need-to-know#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41178 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41178&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2023/12/04/beneficial-ownership-information-reporting-requirements-what-you-need-to-know This article is meant for informational purposes only.  Foster & Motley does not file BOI reports on behalf of our clients or others. Do you have ownership in a business with an entity structure such as an LLC, partnership, S-Corp, or C-Corp? If so, this article is for you.  In 2021, Congress passed the Corporate Transparency Act which created a new beneficial ownership information (BOI) reporting requirement for companies with certain entity structures.  The BOI requirement was implemented to help law enforcement and regulators counter money laundering and the financing of terrorism.  The intent of this article is to help you understand the reporting requirements, the timeline for filing a BOI report, and the exceptions to having to file. First a few key points: Most businesses with an entity structure will be required to file a BOI report.   BOI reports will be filed with the Financial Crimes Enforcement Network (FinCEN). There is no fee to file this form.  The FinCEN website to file reports is https://www.fincen.gov/boi.   BOI Reports cannot be submitted to FinCEN until January 1, 2024.  Now, let’s talk about the new rules.  Does your company qualify as a reporting company? Entities are required to report BOI to FinCEN if they meet the definition of a “reporting company” and do not qualify for an exemption (more on exemptions later).  There are two categories of reporting companies: a “domestic reporting company” and a “foreign reporting company.”  For purposes of this article, we are only going to discuss domestic reporting companies.  The BOI Small Entity Compliance Guide includes this flow chart in section 1.1 that is very helpful, but we’ll break it down for you here as well. What is a domestic reporting company? A domestic reporting company is a corporation or LLC or any other entity created by the filing of a document with a Secretary of State or similar office in the United States under the law of a state or Indian tribe. For this purpose, the United States includes any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, American Samoa, Guam, The US Virgin Islands, and any other commonwealth, territory, or possession of the United States. Who qualifies for an exemption to the reporting? The reporting rule exempts 23 specific types of entities from the reporting requirements. Most of these exempt entities operate in industries already heavily regulated by Federal or State authorities. Here is a sample of just a few:  banks, credit unions, accounting firms, public utilities, large operating companies, insurance companies, investment companies or investment advisers, and inactive entities.  You can see the full list on page four of the BOI Small Entity Compliance Guide.  Who is a beneficial owner of my company? Assuming your company qualifies as a reporting company then you must identify the company’s beneficial owners.  A beneficial owner is any individual who, directly or indirectly: Exercises substantial control over a reporting company; OR Owns or controls at least 25 percent of the ownership interests of a reporting company Substantial Control – an individual exercises substantial control over a reporting company if the individual meets any of four general criteria:  The individual is a senior officer (President, CFO, General Counsel, CEO, COO, or any other officer, regardless of official title, who performs a similar function as these officers.) The individual has the authority to appoint or remove certain officers or a majority of directors of the reporting company. The individual is an important decision-maker. The individual has any other form of substantial control over the reporting company. (This is a catch-all in which any other form of substantial control is not outlined above.) Ownership Interests – Any of the following may be an ownership interest:  equity, stock, or voting rights; a capital or profit interest; convertible instruments; options or other non-binding privileges to buy or sell any of the foregoing: and any other instrument, contract, or other mechanism used to establish ownership. Does my company have to report its company applicants? For companies that are formed after January 1, 2024, there is an additional reporting responsibility related to company applicants.  Company applicants can be a direct filer or the individual who directs or controls the filing action.  A direct filer is the individual who directly filed the document that created a domestic reporting company or the individual who directly filed the document that first registered a foreign reporting company.  This individual would have physically or electronically filed the document with the secretary of state or similar office.  The other possible company applicant is the individual who was primarily responsible for directing or controlling the filing of the creation or first registration document.  This individual is a company applicant even though the individual did not actually file the document with the secretary of state. What information is being collected by this report? Beneficial ownership information refers to identifying information about the individuals who directly or indirectly own or control a company.  Identifying information can be broken down into two pieces.  The first is information about the company itself and the second piece is information about the owners of the company.  Reporting companies must provide the following information: Company Information                                    Full legal name Any trade names used by the company (doing business as or trading as)  The current street address of the company’s principal place of business (PO box or third-party addresses will not be accepted) The jurisdiction in which the company was formed or registered Taxpayer Identification Number   Owner Information Full legal name Date of birth                Current residential street address An identifying number from a non-expired, government-issued photo ID, such as a US passport or driver’s license along with the name of the issuing state or jurisdiction of identification documentation An image of the government-issued photo ID from which the above number was provided When and how often does this report need to be filed? Reporting companies that are in existence as of December 31, 2023, will be required to file a BOI report between January 1, 2024, and December 31, 2024 (FinCEN has not yet released the form or mechanism for submission and will not accept filings before January 1, 2024).  This will be a one-time filing unless there are future changes to any information or the discovery of erroneous information in the filed report.  If there are any changes to the required information about your company or its beneficial owners, then an updated report must be filed no later than 30 days after the change.  For reporting companies that are created or registered to do business in the US  between January 1, 2024, and January 1, 2025, the report will be due within 90 days after receiving the actual or public notice that the entity creation or registration is effective. For reporting companies created or registered after January 1, 2025, the report will be due within 30 days. What happens if I don’t report BOI within the required timeframe? The willful failure to report complete or updated beneficial ownership information to FinCEN may result in civil or criminal penalties, including civil penalties of up to $500 for each day that the violation continues, or criminal penalties including imprisonment for up to two years and/or a fine of up to $10,000.  Senior officers of an entity that fails to file a required BOI report may be held accountable for that failure. What is a FinCEN Identifier and do I need one? A FinCEN identifier is a unique identifying number that FinCEN will issue to an individual or reporting company upon request after the individual or reporting company provides certain information to FinCEN.  In order to obtain a FinCEN Identifier an individual must provide the same information as outlined above.  Once a beneficial owner or company applicant has obtained a FinCEN identifier, reporting companies may report it in place of the otherwise required personal information about the individual in BOI Reports.  You are not required to obtain one, but if you are an owner or company applicant in many businesses it may be useful to obtain one in lieu of providing the required information to each Reporting Company you may be a beneficial owner in or a company applicant of.   Every company should evaluate these requirements and determine how they will move forward with filing the relevant reports. For many small businesses, the reporting should be fairly straightforward, but with the hefty potential penalties, it is important that this requirement is handled timely and according to the rules provided. Contact our team if you’d like help understanding the requirements.   Ryan Pollock, CPA Mon, 04 Dec 2023 14:30:00 GMT f1397696-738c-4295-afcd-943feb885714:41178 https://www.fosterandmotley.com/insights/2023/11/29/why-do-my-advisors-credentials-matter-with-nick-roth-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42006 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42006&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/11/29/why-do-my-advisors-credentials-matter-with-nick-roth-cfp Have you ever looked at the letters after an advisor's name and wondered what they stand for? These credentials actually offer significant insight into the expertise and commitment of an advisor.In this episode, Nick Roth, CFP®, of Foster & Motley breaks down why these credentials are important and demystifies the common professional designations in financial services. Tune in to understand how paying attention to these credentials can help you choose the right advisor – as they're often one of the first things you see on an advisor's profile.Nick shares more about:The distinction between investment management and financial planning designationsThe training and ongoing education involved in CFP®, CFA®, and CPAExamples of other specialized designations with niche expertise areasFoster & Motley's commitment to advisor learning and fiduciary standardsAnd more Resources:Why Do My Advisor's Credentials Matter?Connect With Nick:info@fosterandmotley.com 513-561-6640Foster & MotleyNick RothLinkedIn: Nick RothLinkedIn: Foster & Motley Website Administrator Wed, 29 Nov 2023 16:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42006 https://www.fosterandmotley.com/insights/2023/11/22/how-can-i-safeguard-my-sensitive-information-online-with-joe-patterson-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42007 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42007&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/11/22/how-can-i-safeguard-my-sensitive-information-online-with-joe-patterson-cfp Are you worried about the safety of your sensitive information online? By cultivating good security habits, it is possible to significantly reduce the risk of fraud so you can sleep better at night.In this episode, Joe Patterson, CFP®, of Foster & Motley empowers you with the knowledge and awareness to protect your financial well-being in an increasingly digital world. You will learn preventative measures and best practices to minimize the risk of cyber fraud. Joe's recommendations take little time to put into practice, while getting scammed can be costly, time-consuming, and mentally draining.Joe shares more about:The importance of freezing your credit to prevent unauthorized accessThe ease of using password managers for unique and complex passwords across various sitesBest practices while making online purchasesHow to recognize scam emails, suspicious links, and fraudulent phone calls And more Resources:FREEZE! Credit freezes are free!  Connect With Joe:info@fosterandmotley.com 513-561-6640Foster & MotleyJoe PattersonLinkedIn: Joe PattersonLinkedIn: Foster & Motley Website Administrator Wed, 22 Nov 2023 16:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42007 https://www.fosterandmotley.com/insights/2023/11/08/are-you-making-the-most-of-your-year-end-charitable-giving-with-emily-k-diaz-macc-cpa-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42008 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42008&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/11/08/are-you-making-the-most-of-your-year-end-charitable-giving-with-emily-k-diaz-macc-cpa-cfp While tax savings may not be a primary driver for your charitable contributions, being aware of opportunities can help you amplify your impact. In this episode, Emily K. Diaz, MAcc, CPA, CFP®, of Foster &  Motley shares valuable insights on year-end charitable giving, the benefits of planning ahead, and its connection to tax planning. Whether you wish to give to your family, directly to an organization, or through a charitable foundation, you will learn actionable ideas to improve tax efficiency and leave a lasting impact.Emily also sheds light on an Ohio-specific gifting strategy, where you can capitalize on available tax credits through Scholarship Granting Organizations (SGOs).Emily shares more about:The tax implications of different types of gifts (e.g., cash vs. appreciated stocks)Simplified explanation of commonly used strategies, such as donor-advised fundsThe benefits of planning out  larger gifts over multiple yearsNavigating the annual exclusion for family giftsAnd more Resources:What You Need to Know About the SGO Tax Credit in Ohio (Article by Foster & Motley)Connect With Emily:info@fosterandmotley.com 513-561-6640Foster & MotleyEmily DiazLinkedIn: Emily DiazLinkedIn: Foster & Motley Website Administrator Wed, 08 Nov 2023 16:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42008 https://www.fosterandmotley.com/insights/2023/11/01/ohio-business-magazines-ohio-500-includes-mark-motley#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42148 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42148&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2023/11/01/ohio-business-magazines-ohio-500-includes-mark-motley We’re proud to share that Mark Motley, MBA, CFA, has once again been named to Ohio Business Magazine’s Ohio 500 list, marking his second year in a row receiving this recognition. Mark is a co-founder of the firm and serves as co–chief investment officer, shareholder, and investment manager. Ohio Business Magazine notes that the Ohio 500 celebrates individuals whose leadership, innovation, and impact continue to define the future of Ohio’s business community. Ohio Business Magazine asked readers to fill out an online survey, spoke with their partners, reached out to community leaders, and did their own research to create the 2023 Ohio 500. Being recognized does not imply any correlation to the quality of service. Foster & Motley paid no fees to be included and had no influence on the criteria for this recognition. View the full list of honorees here. Betsy Wolking, MSM Wed, 01 Nov 2023 18:46:00 GMT f1397696-738c-4295-afcd-943feb885714:42148 https://www.fosterandmotley.com/insights/2023/11/01/why-should-i-invest-in-international-stocks-with-zach-horn-mba-cfp-cmfc#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42009 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42009&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/11/01/why-should-i-invest-in-international-stocks-with-zach-horn-mba-cfp-cmfc We've all heard that diversification in our investment portfolio is important, but it's bigger than diversifying among US stocks only.In this episode, Zach Horn, MBA, CFP®, CMFC®, discusses the importance of diversifying portfolios with international investments. He explores the differences between established and emerging markets, the historical performance of US stocks versus international stocks, and the recommended ratio of US to international stocks.Zach shares more about:Use of mutual funds for international exposureCurrency risk in international investing and ways to hedge itImportance of gaining international exposure and diversifying investmentsHistorical data supporting international stocks outperforming US stocks in certain scenariosAnd more Connect With Zach Horn, MBA, CFP®, CMFC®:info@fosterandmotley.com 513-561-6640Foster & MotleyZach Horn, , MBA, CFP®, CMFC®LinkedIn: Zach HornLinkedIn: Foster & MotleyAbout Our Guest:Zach Horn knows that a plan communicated in a language people can understand, no matter how complex it might actually be, is possible in every situation and serves everyone involved in the best way possible. Zach has built many client relationships that are more like friendships and go beyond the normal aspects of planning and management. And that's just the way he wants it.Zach has a Bachelor of Business Administration degree in Finance from Ohio University and an MBA degree in Finance from Xavier University. Before joining Foster & Motley, Zach worked for Ameriprise Financial, Inc. as a financial advisor in Columbus, Ohio. He joined the firm in 2007 as the Securities Trader and a member of the investment team. Zach obtained the CERTIFIED FINANCIAL PLANNERTM (CFP®) and Chartered Mutual Fund Counselor (CMFC®) designations in 2012. He is now an Investment Manager and shareholder.In addition to his duties as an Investment Manager, Zach is also the Managing Partner and President of the Board. In this role, Zach focuses on the long-term vision of Foster & Motley and how the day-to-day operations support that vision. His communication skills and initiative help keep our team focused, open-minded to change, and collaborative.  Zach lives with his family in Mason, Ohio. He enjoys sports of all kinds, but especially coaching his sons in baseball and basketball. In 2020, Zach was included in Cincinnati Business Courier's Forty Under 40 class which recognizes the next generation of leaders and innovators in Greater Cincinnati. He recently joined the board of directors for the Ohio Valley Goodwill. Zach was impressed with the scale of the organization and their mission of helping those with disabilities and other challenges gain employment in the community and wanted to be part of their success. Website Administrator Wed, 01 Nov 2023 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42009 https://www.fosterandmotley.com/insights/2023/10/26/what-you-need-to-know-about-the-sgo-tax-credit-in-ohio#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41123 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41123&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2023/10/26/what-you-need-to-know-about-the-sgo-tax-credit-in-ohio Over the last two years, Scholarship Granting Organizations (SGOs) have gained popularity in Ohio. SGOs provide need-based scholarships to students at affiliated private schools. Many Ohio taxpayers who give to these organizations can receive an SGO tax credit of up to $750, or $1,500 if married, potentially making the gift at zero cost to themselves. The first SGOs were set up in December 2021, and the list of schools supported by an SGO has since grown substantially.  How to Find an SGO in Ohio You can find a list of SGOs on the Ohio Attorney General’s website. The SGO certification is an annual application, so the list of eligible SGOs can change over time. We recommend verifying that the SGO has an active certification before making a gift. If you have a school in mind and aren’t sure whether it’s supported by an SGO, we suggest contacting the school or searching their website to find out whether they are affiliated with an SGO. Because many SGOs support several schools, the name of a specific school may not show up on Ohio’s list of SGOs.  For example, the Archdiocese of Cincinnati has an SGO that supports K-12 Catholic schools in Cincinnati. When you make a gift to this SGO, you can specify which school’s scholarship fund you want to support.  How the Ohio Scholarship Donation Credit in Ohio Works  To claim a 2023 Ohio Scholarship Donation Credit, you would make a donation to an SGO before April 15, 2024. (Note that the donation must be made to the SGO, not the school itself.) The SGO would then provide a letter to attach to your tax return as documentation. When filing your 2023 tax return in 2024, you would claim the corresponding dollar-for-dollar SGO tax credit (with limitations, as described below). The maximum contribution eligible for the SGO Ohio tax credit in Ohio is $750 for single or $1,500 for married filers. However, if your Ohio tax liability is less than those respective amounts, your tax credit would be limited to the amount of your Ohio tax liability, as the credit is nonrefundable. For example, if you give $750 to an SGO but your Ohio tax liability is only $500, you would receive a credit of $500 and would not get the other $250 back.  For married taxpayers, each taxpayer should make a separate gift of $750, rather than one joint $1,500 gift, to claim the maximum credit.  The Foster & Motley team works hard to stay on top of tax planning opportunities, like SGOs and the Ohio Scholarship Donation Credit. If you’re unsure how much your Ohio taxes will be, we assist with tax planning and can work with your CPA to help you understand your current tax situation and help you plan for the future in a tax-conscious manner. Contact us to learn more.  Sources: https://codes.ohio.gov/ohio-revised-code/section-5747.73  https://tax.ohio.gov/individual/resources/scholarship-donation-credit Emily K. Diaz, MAcc, CPA, CFP®  Thu, 26 Oct 2023 12:36:00 GMT f1397696-738c-4295-afcd-943feb885714:41123 https://www.fosterandmotley.com/insights/2023/10/25/how-do-brokerage-and-bank-accounts-work-together-with-david-j-nienaber-mba-cpa-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42010 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42010&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/10/25/how-do-brokerage-and-bank-accounts-work-together-with-david-j-nienaber-mba-cpa-cfp Ever wondered about the difference between checking, savings, and brokerage accounts?In this episode, David J. Nienaber, MBA, CPA, CFP®, discusses the distinctions between checking accounts, savings accounts, and brokerage accounts. He highlights benefits of each and how they function together. Additionally, he explains how brokerage accounts can be platforms for purchasing stocks, bonds, and mutual funds.  Lastly, he touches on how money market funds are becoming a popular choice instead of traditional savings accounts.David shares more about:Money market funds as an alternative to traditional savings accountsMoney market funds can be bought and sold in a brokerage account and earn higher interest ratesBrokerage accounts not FDIC insured but have SIPC insuranceAnd more Connect With David:info@fosterandmotley.com 513-561-6640Foster & MotleyDavid Nienaber, MBA, CPA, CFP®LinkedIn: David NienaberLinkedIn: Foster & Motley Website Administrator Wed, 25 Oct 2023 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42010 https://www.fosterandmotley.com/insights/2023/10/18/when-should-i-start-thinking-about-planning-for-college-with-tony-luckhardt-mba-cfp-crpc-and-dan-bisig#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42011 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42011&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/10/18/when-should-i-start-thinking-about-planning-for-college-with-tony-luckhardt-mba-cfp-crpc-and-dan-bisig In this episode, Tony R. Luckhardt, MBA, CFP®, CRPC®, sits down with Dan Bisig, the  President and Founder of College and Beyond, to dive into the world of college planning. Get ready for valuable insights and a positive perspective on the college journey! Dan discusses the importance of early planning, not only from a financial perspective but also in terms of finding the perfect academic and social fit. Discover why reading and test-taking skills remain vital in the college admissions landscape, even amidst the test-optional trend. Dan unveils his three-part approach, covering essential topics like the college money talk, career exploration, and college selection, as well as demystifying the admissions process. He also shares seven common pitfalls that families make as they begin the college planning process.Dan shares more about:The importance of starting the college planning process earlyChoosing the right college The ideal timeline for working with a college plannerAnd moreConnect With Dan Bisig:LinkedIn: Dan BisigCollege And BeyondConnect With Tony Luckhardt:info@fosterandmotley.com 513-561-6640Foster & MotleyTony Luckhardt, MBA, CFP®, CRPC®LinkedIn: Tony LuckhardtLinkedIn: Foster & Motley Website Administrator Wed, 18 Oct 2023 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42011 https://www.fosterandmotley.com/insights/2023/10/04/what-do-stock-breadth-and-market-concentration-mean-for-you-with-thom-guidi-cfa#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42012 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42012&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/10/04/what-do-stock-breadth-and-market-concentration-mean-for-you-with-thom-guidi-cfa Have you recently wondered why the performance of companies like Apple, Microsoft, Amazon, Nvidia, and Google significantly impacts the overall market? Diversification is not just a buzzword, it's an important strategy for managing portfolio risk. If you're unsure about your investments' concentration, check out this episode as Thom Guidi, CFA, discusses stock concentration and market breadth as indicators of market movements. Thom shares more about:How the largest tech companies in the S&P 500, such as Apple, Microsoft, Amazon, Nvidia, and Google, have a significant impact on the overall market at presentThe importance of diversification in portfolios to manage risk and the benefits of assessing portfolio concentration. Assessing portfolio concentration and considering investment relationshipsAnd more Connect With Thom Guidi:info@fosterandmotley.com 513-561-6640Foster & MotleyThom Guidi, CFALinkedIn: Thom GuidiLinkedIn: Foster & Motley Website Administrator Wed, 04 Oct 2023 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42012 https://www.fosterandmotley.com/insights/2023/10/04/market-update#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41101 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41101&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2023/10/04/market-update “We are navigating by the stars under cloudy skies.”   - Fed Chair Jerome Powell at Jackson Hole, 8/25/2023 “How did you go bankrupt?  Two ways. Gradually, then suddenly.”   - Ernest Hemingway, The Sun Also Rises One epigraph alone seems insufficient preface for a comment amid market and economic conditions so shaken and unsettled as are these.  Adding geopolitics, CIA director William J. Burns recently described this time as “one of those rare plastic moments of genuine transformation that come along once or twice in a century…” Consider that the credit rating of the US Government was recently downgraded, autoworkers are on strike, oil prices have risen to top $100/bbl, China’s real estate market has been collapsing as its economy struggles, and student loan repayments resume this month after a long hiatus, potentially slowing the spending of a significant portion of the population.  Bank lending has tightened and credit to commercial real estate is essentially cut off.  Interest rates are at 16-year highs and Federal Reserve Chairman Powell recently said we should expect rates to be higher for longer.  The bond market’s “yield curve” structure continues to be inverted (with short interest rates higher than long rates), a condition that presaged each recession for several decades – and ditto for the Leading Indicator Index.  War still rages in Ukraine as Putin still threatens with his nukes.  Per the polls, next year’s presidential election looks likely to be a rematch unwelcomed by most.  While some believe a general excess of pandemic-related cash has held off recession so far, aside from the wealthiest 20%, Americans now have less cash on hand than they did before the Pandemic started.  And overhanging all is the fact that the conditions that caused the regional bank crisis in the Spring – losses in bond portfolios because of high interest rates - essentially remain.  Diane Swonk, chief economist at KPMG, recently said, “It’s becoming a series of unfortunate events…The soft landing is being jeopardized.”  However, economic growth for the quarter is widely expected to have been quite robust.  Moreover, after hitting a multi-year low of 3.4% in April, unemployment at last measure (August) remains a relatively low 3.8%, and new unemployment claims continue to be very low. Touching all of the above in various ways is inflation, which reached a four-decade high of 9.1% in June last year, declined to 3.1% this July, and has since moved back up to 3.7% annually.  And driving inflation - with “long and variable” lags - is money supply growth.  The most widely used measure of the money supply is M2, and M2 growth exploded in 2020, peaking at +26.9% annually in February 2021.  Inflation followed.  Since then, money supply growth declined and slipped into contraction in December of 2022, remaining negative since, with its latest 12-month growth rate being -3.67% as of August.  This is the only contraction in M2 since the Great Depression - we are in exceptionally rare territory here. Government shutdowns and strikes get lots of press but don’t really matter much to markets and the economy, and politics habitually impacts markets in the long term less than most believe.  But that still leaves several important and contradictory indicators:  On the one hand, we have the recent surprising strength in the economy and labor markets, and material declines in inflation rates.  On the other, there is the relationship of short to long-term interest rates (the “yield curve”) the negative reading from the “Leading Economic Indicators,” and the rare decline in the money supply.  It may be tempting to conclude that here we have a set of powerful indicators that are simply at odds with one another, and that uncertainty is therefore even greater than usual.  But closer inspection reveals an important pattern:  all the positive measures pertain to recent and past conditions, while all the negative signals are forward-looking.  That is a sobering observation. We also note that the federal deficit approximately doubled this year compared to last.  For the fiscal year that just ended on September 30, the federal deficit is expected to be about $2 trillion, up from about $1 trillion last year.  As a share of the economy, there is zero precedent for deficits this large outside of war, recession, or pandemic.  First Trust’s chief economist Brian Westbury calls it “fiscal madness.”  He concludes, “The party continues for now, but a hangover looms in our future.”  Consider the contrast between the behavior of the government and the public: When rates were so low for many years, consumers and businesses refinanced mortgages and other debt, locking in very low long-term rates.  Only the government largely failed to refinance its debt with low rates then.  Moreover, the average maturity of US Treasury debt is now only 6.25 years, meaning that about half of all the US Treasury debt must roll over and reprice to likely higher, then-prevailing interest rates over the next six years or so.  Legislators on both sides of the aisle have demonstrated remarkable capacity for deficit spending, so large deficits may well continue beyond reasonable expectation, but higher interest rates and exploding debt-service costs will eventually set limits.  Regardless of when a reckoning may occur, this current explosion in federal spending may go a long way toward explaining the strength of the recent positive economic indicators, and the delays in the impact of the forward-looking negative economic signals just recounted.  We’re pleased the economy has been strong of late and that most models have recently reduced their probability of recession.  But broader evidence demands that caution remains in order.  This year so far, the most common bond benchmark index is down a little more than 1% and the blended stock index is up 9.5%.  After declining over 6% from 7/31 through 9/30, the S&P 500 Index remains up just over 13% for the year (with both small stocks and international stocks lagging), REITs are down 5.6%, and the Swiss Re Cap Bond Index of certain insurance-linked securities leads all with a return of over 15% so far this year to date.  S&P 500 Index returns are misleading, however, as at many points through the year, just 7 large stocks accounted for over 99% of the index return while the other 493 stocks in the index were essentially flat.  Such an extreme condition of return concentration is neither normal nor sustainable, and in fact, that extremity has normalized somewhat in the past two months.  (As this is written – 10/3/2023 – both the S&P 500 Equal Weight Index and the Dow Jones Industrial Average have slipped into negative year to date returns.) Given all these circumstances, we are generally holding full target positions of cash – something that rarely, if ever, occurred in recent decades prior to last year because of then low interest rates.  Additionally, we are working to hold portfolio bond durations (think: average maturities) close to market index durations – neither longer nor shorter after being generally shorter for years (which was a help as rates began to rise).  Higher interest rates now make bonds more attractive and help boost portfolio income which in turn helps stabilize portfolio returns. A diversified portfolio balanced among stocks, bonds, cash, real estate, and alternatives increases the dependability of returns over time.  Moreover, with conditions as unsettled and uncertain as they are now and with stock and bond markets at odds as noted in prior comments, the benefit of a little increased dependability could become even more valuable. Mark Motley, MBA, CFA Wed, 04 Oct 2023 14:13:00 GMT f1397696-738c-4295-afcd-943feb885714:41101 https://www.fosterandmotley.com/insights/2023/09/28/zach-binzer-cfp-included-in-2023-forty-under-40-class#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41544 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41544&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2023/09/28/zach-binzer-cfp-included-in-2023-forty-under-40-class We are excited to share that Zach T. Binzer, CFP®, Financial Planner and Shareholder at Foster & Motley, was named to the Cincinnati Business Courier’s esteemed Forty Under 40 class of 2023.  This recognition highlights young professionals in the Greater Cincinnati area who have made significant impacts in their industries and local communities. Zach has been with Foster & Motley since 2016, where he has developed a strong foundation in financial planning and investment management. As a CERTIFIED FINANCIAL PLANNER™ (CFP®), Zach is dedicated to helping clients achieve their financial goals through a holistic approach. His expertise in retirement planning, tax strategies, and investment analysis has made him a trusted advisor for those seeking tailored financial guidance. In addition to his professional success, Zach is committed to giving back to the community. He is an active board member with Melanoma Know More and Evans Scholar Foundation, where he channels his passion for service and mentorship. His dedication to improving the lives of others extends far beyond the financial world, reflecting the values that make him a standout member of the Forty Under 40 class. We are proud to see Zach recognized for his hard work and contributions and look forward to his continued success here at Foster & Motley and beyond. Please join us in congratulating him on this exceptional honor! You can view Zach’s profile here, and the full class of honorees here (subscription may be required.) No direct or indirect fees were paid to be included in the Cincinnati Business Courier’s Forty Under 40 recognition. This award is not intended as a testimonial, endorsement, or guarantee of future results.  Per the Cincinnati Business Courier website, honorees are chosen through an independent editorial review, with selections based entirely on their merits, achievements and contributions to their organizations and local community. Commercial interests with the Business Journal are not considered. Review panels may be comprised entirely of Business Journal leadership, or in combination with outside judges determined by the news department. The Business Journal’s editorial leadership has final say and approval for all awards and honorees.   Betsy Wolking, MSM Thu, 28 Sep 2023 19:08:00 GMT f1397696-738c-4295-afcd-943feb885714:41544 https://www.fosterandmotley.com/insights/2023/09/27/do-you-need-a-cfo-for-your-personal-life-with-rachel-rasmussen-mba-cfa-cdfa-and-nick-roth-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42013 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42013&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/09/27/do-you-need-a-cfo-for-your-personal-life-with-rachel-rasmussen-mba-cfa-cdfa-and-nick-roth-cfp When it comes to our day-to-day lives, delegating certain responsibilities can actually free up our mental space, giving us time to focus on what we do best.In this episode, Rachel Rasmussen, MBA, CFA, CDFA®, and Nick Roth, CFP®, discuss the concept of having a Chief Financial Officer (CFO) for your personal life. They explain the benefits of having a CFO-like advisor who can provide information and insights to help you make informed decisions about your finances. There is great value in having a team of professionals, including financial planners, investment managers, insurance agents, and estate planning attorneys, to provide specialized expertise and support. Nick and Rachel share more about:The importance of staying updated on financial regulations, investment opportunities, and retirement plansSaving time, relieving stress, and making the right decisions with a CFO-like advisorMaking good financial decisions and maximizing opportunities while minimizing mistakesBenefits of delegating certain aspects of life to expertsAnd more Connect With Nick and Rachel:info@fosterandmotley.com 513-561-6640Foster & MotleyNick RothRachel RasmussenLinkedIn: Nick RothLinkedIn: Rachel RasmussenLinkedIn: Foster & Motley Website Administrator Wed, 27 Sep 2023 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42013 https://www.fosterandmotley.com/insights/2023/09/13/how-could-i-benefit-from-working-with-an-advisor-that-does-tax-planning-with-zach-binzer-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42014 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42014&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/09/13/how-could-i-benefit-from-working-with-an-advisor-that-does-tax-planning-with-zach-binzer-cfp You're likely familiar with the idea that for every action, there's a corresponding reaction. This concept rings true in financial planning as well. With nearly every financial decision you make, there aretax consequences waiting in the wings.In this episode, Zach Binzer, CFP®, discusses the nuances associated with different investment account types and how tax considerations vary from one to the next. He also explains how the long term planning a financial advisor can provide can help you understand how today's decisions may impact your tax situation 10, 20, or 30 years from now! Zach shares more about:The importance of account diversity Insights into  tax-efficient estate planning approachesThe impact of taxes on Medicare premiums and Social Security benefitsThe essential part CPAs can play in proficient tax planningAnd more Connect With Zach:info@fosterandmotley.com 513-561-6640Foster & MotleyZach Binzer, CFP®LinkedIn: Zach Binzer, CFP®LinkedIn: Foster & Motley Website Administrator Wed, 13 Sep 2023 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42014 https://www.fosterandmotley.com/insights/2023/09/12/cnbc-fa-100-list-includes-foster-motley-for-fifth-year-in-a-row#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41064 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41064&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2023/09/12/cnbc-fa-100-list-includes-foster-motley-for-fifth-year-in-a-row CNBC has recognized Foster & Motley as one of the nation’s 100 top-rated financial advisory firms of 2023. It is the fifth consecutive year the firm has earned a spot in the annual ranking. Foster & Motley is the only local company to make the list for five years straight. At 46 in the ranking, Foster & Motley is in the top 1% of the 40,600 RIA firms from the Securities and Exchange Commission regulatory database that CNBC analyzed. “We acknowledge that we would not be included in such a prestigious list without the trust of our clients or the dedication of our employees," said Zach Horn, Managing Partner at Foster & Motley. "Receiving the honor five years in a row demonstrates how consistently and diligently we live out our client-first mission. We are humbled and grateful for the opportunity to serve our clients and to be included in the CNBC FA 100 once again." The 2023 CNBC FA 100 list was published on September 12, 2023, and was selected using a proprietary methodology developed by CNBC in partnership with data provider AccuPoint Solutions. Foster & Motley provided firm data as of May 31, 2023. CNBC and AccuPoint Solutions applied the weighting for each category to further refine and rank the firms. The rankings consider many factors such as assets under management (AUM), years in business, number of certified financial planners, and the number of employees, among others. The full list and methodology can be found at CNBC.com/FA100. See Foster & Motley's disclosure for additional details on CNBC and AccuPoint Solutions’ selection criteria.  Betsy Wolking, MSM Tue, 12 Sep 2023 12:20:00 GMT f1397696-738c-4295-afcd-943feb885714:41064 https://www.fosterandmotley.com/insights/2023/09/06/how-can-i-select-a-medicare-plan-that-is-right-for-me-with-dave-nienaber-mba-cpa-cfp-r-and-special-guest-marisa-oneill-of-retiremed#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42015 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42015&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/09/06/how-can-i-select-a-medicare-plan-that-is-right-for-me-with-dave-nienaber-mba-cpa-cfp-r-and-special-guest-marisa-oneill-of-retiremed You've seen the ads on TV and in your mailbox, but what really are the important things to know before you choose a Medicare plan? And what are the differences between Part A, B, and D? In this episode of the Foster & Motley podcast about Wealth & Life, Dave Nienaber is joined by Marisa O'Neill, CEO of Retire Med to explain. Marisa shares the differences and details about the different parts of Medicare, emphasizing the importance of planning and working with an agent to make sure you understand your options and get the right plan for you. Dave and Marisa cover the timing for Medicare coverage whether you are approaching 65, over 65, or under 65 but in need of coverage. Marisa shares more about:Annual enrollment period for Medicare The role of agents when it comes to Medicare plansBenefits of working with an agent for ongoing personalized assistanceWhy couples may select different plansAnd moreConnect With David and Marissa:info@fosterandmotley.com 513-561-6640Foster & MotleyDavid NienaberRetire MedLinkedIn: David NienaberLinkedIn: Marisa O'NeillLinkedIn: Foster & MotleyAbout Our Guest:Marisa O'Neill is the CEO of RetireMed, one of the Midwest's largest advisors in Medicare plan selection, having provided support to more than 50,000 individuals. RetireMed was named One of The Best Places to Work by the Dayton Business Journal. RetireMed's Clients include: Akron General Medical CenterCincinnati BellCincinnati FinancialCintasDayton Children's HospitalFormicaIndianapolis International AirportKettering HealthSouthern Ohio Medical CenterReynolds & ReynoldsTriHealthUC HealthUFCWUniversity of DaytonIn her previous role as Chief Growth Officer for RetireMed, Marisa oversaw the transition of thousands of retirees from Employer Group Retiree Insurance to Individual Medicare plans for organizations such as Formica, Cincinnati Bell, Archdiocese of Cincinnati, University Hospital – Cleveland, and AK Steel. In addition, Ms. O'Neill is the Board Chair of the Alzheimer's Association of Cincinnati. With more than two decades of experience in the Medicare industry, Ms. O'Neill has spoken for and been interviewed by: Dayton Business Journal Cincinnati EnquirerWKRC CincinnatiAlzheimer's Association of Cincinnati Alzheimer's Association National Summit Greater Cincinnati HR AssociationBluegrass Estate Planning councilEmployer's Resource AssociationMarisa is a graduate of Saint Louis University where she was a member of the swim team. Continuing her love of sports, she spends weekends in the summer water skiing in Tennessee. She lives with her husband, Andrew (an inspiring barbeque pit-master) and three boys in Cincinnati, Ohio. Website Administrator Wed, 06 Sep 2023 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42015 https://www.fosterandmotley.com/insights/2023/08/30/how-can-i-benefit-from-a-529-roth-conversion-with-tony-luckhardt-mba-cfp-crpc#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42016 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42016&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/08/30/how-can-i-benefit-from-a-529-roth-conversion-with-tony-luckhardt-mba-cfp-crpc Saving for college may seem like it starts as soon as you learn about a new addition to the family. With all the discussions about 529 plans to invest in future educational expenses, recent changes have actually made things better, for the most part.In this episode, Tony Luckhardt, ​​MBA, CFP®, CRPC®, discusses changes to rules around  529  accounts and how they relate to saving for college, and maybe even retirement expenses. He explains the basics of 529 plans, including their tax advantages and options for unused funds. Tony shares more about:How the Secure Act 2.0 plays into this saving strategy A new provision that allows for a rollover of funds from a 529 account into a beneficiary's Roth IRAThe rules around 529 to Roth conversionsAnd moreResources:Podcast about 529s with Nick RothConnect With Tony:info@fosterandmotley.com 513-561-6640Foster & MotleyTony Luckhardt, ​​MBA, CFP®, CRPC®LinkedIn: Tony LuckhardtLinkedIn: Foster & Motley Website Administrator Wed, 30 Aug 2023 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42016 https://www.fosterandmotley.com/insights/2023/08/16/is-economic-forecasting-useful-with-luke-hail-mba-cfp-and-ryan-english-mba-cfa-cpa-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42017 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42017&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/08/16/is-economic-forecasting-useful-with-luke-hail-mba-cfp-and-ryan-english-mba-cfa-cpa-cfp In a world where uncertainty lurks around every corner, humans have an innate desire to predict the future, particularly when it comes to things that may impact them negatively. Economic forecasting is one such endeavor, attempting to navigate the complex currents of financial markets and emerging economies. In this episode, Luke Hail, MBA, CFP®, and Ryan English, MBA, CFA, CPA, CFP®, discuss the value of forecasting when it comes to the economy and the stock market. Drawing parallels to our primitive instincts, they delve into the desire to foresee economic developments that could either benefit or harm us.Luke and Ryan share more about:The difference between economic forecasting and stock market forecastingWarren Buffet's thoughts on forecastingThe investment approach of John Maynard KeynesThe Foster & Motley approach to investingAnd moreConnect With Luke and Ryan:info@fosterandmotley.com 513-561-6640Foster & MotleyLuke HailRyan EnglishLinkedIn: Luke HailLinkedIn: Ryan EnglishLinkedIn: Foster & Motley Website Administrator Wed, 16 Aug 2023 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42017 https://www.fosterandmotley.com/insights/2023/08/09/how-do-tax-extensions-work-with-emily-diaz-macc-cpa-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42018 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42018&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/08/09/how-do-tax-extensions-work-with-emily-diaz-macc-cpa-cfp When the tax deadline looms near and you find yourself in need of more time to complete your return, what steps should you take? It's a common situation; about 12% of tax returns filed each year are extended! Maybe life got busy or perhaps you have a complicated financial situation and find yourself waiting on forms needed to file your return. Either way, there's no need to stress! Tax extensions are available for a reason, and navigating them isn't complicated.In this episode, Emily Diaz, MAcc, CPA, CFP®, explains that a filing extension provides an extra six months to file taxes, but it does not extend the deadline for paying taxes. She emphasizes the importance of paying taxes on time to avoid interest and penalties, and how simple the extension form is. Emily shares more about:The simplicity of filing for an extensionHow obtaining an extension can improve the accuracy of your returnThe benefit of rounding up your extension paymentAnd more Connect With Emily:info@fosterandmotley.com 513-561-6640Foster & MotleyEmily K. Diaz, MAcc, CPA, CFP®LinkedIn: Emily DiazLinkedIn: Foster & MotleyAbout Our Guest:Emily joined Foster & Motley with a CPA background, but her interest in client service can be traced back to her high school days when her mother, also a CPA, asked Emily to help a client straighten out their bookkeeping. Emily loved using her analytical and financial skills and developing a relationship with the client to solve problems together.Soon after, Emily declared a major in accounting and graduated summa cum laude from Grove City College (PA) in 2013. She went on to earn her Master of Accounting degree from The Ohio State University in 2014. Upon graduating, she entered public accounting, joining Plante Moran's tax team and obtained her CPA license. After exploring corporate and non-profit tax, Emily found her passion in serving individual clients, especially high net worth families.As a Financial Planner at Foster & Motley, Emily draws on her tax expertise and experience with individual clients and families. While Emily has always enjoyed diving into details, she also thrives on looking at the big picture and figuring out how all the pieces come together to meet the client's financial goals.When not in the office, Emily can be found running, cooking, or swimming. She is also actively involved at her church and enjoys traveling internationally. At present, Emily lives with her husband, Dan, in Mason. Website Administrator Wed, 09 Aug 2023 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42018 https://www.fosterandmotley.com/insights/2023/08/02/what-is-property-casualty-insurance-and-how-do-i-make-sure-i-have-the-right-coverage-with-rachel-rasmussen-mba-cfa-cdfa-and-guest-erin-blevins#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42019 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42019&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/08/02/what-is-property-casualty-insurance-and-how-do-i-make-sure-i-have-the-right-coverage-with-rachel-rasmussen-mba-cfa-cdfa-and-guest-erin-blevins Not all insurance plans are created equal, which is why having the right partner matters.In this episode, Rachel Rasmussen, MBA, CFA, CDFA®, is joined by Erin Blevins from Oswald Insurance to dive into property and casualty insurance specifically.  They discuss how to make sure you have the right coverage for your situation and  the importance of planning for unknown risks. Erin also shares about:The difference between market value and replacement value in home insuranceThe importance of umbrella coverageConsiderations you need to make when looking to purchase a home in a weather rampant areaWhy insurance is necessary outside of legal requirementsAnd moreConnect With Erin:Erin BlevinsConnect With Rachel Rasmussen:info@fosterandmotley.com 513-561-6640Foster & MotleyRachel RasmussenLinkedIn: Rachel RasmussenLinkedIn: Foster & MotleyDisclosure:The information discussed and posted represents the views and opinions of the guest and does not necessarily represent the views or opinions of Foster and Motley. The content has been made available for informational and educational purposes only and is not intended to be a substitute for professional financial advice. Keep in mind that rules and regulations are subject to change. Always seek the advice of your financial advisor or other qualified financial service provider with any questions regarding your financial planning and investments. Foster and Motley is not affiliated with any third-party providers. Any mention of a third-party provider does not imply an endorsement of that provider. If you decide to utilize a third-party provider, you do so at your own risk.About Our Guest:Erin Blevins joined The Oswald Companies in early 2016 with more than 20 years of experience in Personal Risk Management in the affluent space. She has an extensive focus in Business Development and Relationship Management. In addition, has developed a specialized niche dedicated to high-profile clientele and multi-generational families.EDUCATION AND PROFESSIONAL AFFILIATIONSErin attended Ball State University and The University of Cincinnati with a focus in Business Marketing. Erin has earned her Certified Insurance Services Representative (CISR) designation and is currently pursuing an additional designation as a Chartered Private Risk and Insurance Advisor (CPRIA). She has studied with various insurance carriers to complete sales and service training to provide exceptional service to her clients. Erin also serves on the board for her community's youth football organization. Website Administrator Wed, 02 Aug 2023 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42019 https://www.fosterandmotley.com/insights/2023/07/27/why-do-my-advisors-credentials-matter#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41013 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41013&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2023/07/27/why-do-my-advisors-credentials-matter When choosing the right financial advisor for your unique situation, many characteristics may be considered. Experience, background, and education are bound to be near the top of the list. We’d suggest that credentials and designations should also be included in your evaluation process. You’ve likely seen a myriad of designations if you’ve started to do the research or work with an advisor already, but what do those letters behind advisors’ names mean, anyway? Let’s review some of the most common credentials in the wealth management industry, what it takes to earn them, and how Foster & Motley promotes a culture that encourages employees to acquire them. The CFP® certification (Certified Financial Planner™) is a credential professionals would pursue who are interested in focusing on financial planning. The courses and exam focus on subjects such as retirement planning, estate planning, taxes, and risk management. To earn the certification, a candidate must complete a robust education requirement, pass a 6-hour examination, and show proof of 6,000 hours of financial planning-related professional experience. With Foster & Motley being a registered RIA, all of our advisors are held to a fiduciary standard. Additionally, all CFP® professionals agree to operate within a fiduciary framework as part of their commitment to providing clients with the best advice possible.1 Ongoing ethics training is also a mandatory part of the continuing education requirement that CFP® professionals are subject to, furthering the organization’s commitment to high ethical standards. As of the writing of this article, there are fewer than 100,000 CFP® professionals in the United States who have achieved the designation, solidifying its prestige in the industry.2 A CFA® (Chartered Financial Analyst®) charterholder is someone who has completed the requirements of the CFA Program and is interested in deepening their knowledge of investment management and analysis. An individual pursuing this designation is likely a portfolio manager or analyst, or even a Chief Investment Officer. The CFA Program consists of 3 tests, each requiring an estimated 300 hours of studying. The three exams test the same subjects (for the most part) but explore the topics in greater detail as candidates proceed through each level. Some topic areas include equity, fixed income, economics, derivatives, portfolio management, and financial reporting and analysis. What sets the CFA exam apart from many other designations is the level of difficulty of the tests. The most recent data posits that the Level One pass rate was only 38%, the Level Two pass rate was still paltry at 44%, and the Level Three pass rate was only slightly higher at 48%.3 There is also an experience requirement to become a charterholder. Aside from the CFP® certification and the CFA® Program, one can earn other designations that target a specific area of expertise. For instance, a Chartered Mutual Fund CounselorSM (CMFC) specializes in identifying, analyzing, and recommending mutual funds for clients4, while a Certified Divorce Financial Analyst® (CDFA) is equipped to assist in the financial planning of clients going through a divorce.5 Further still, a Chartered Retirement Planning Counselor (CRPC) has worked to hone their skills specific to helping clients plan for retirement. Although many of these designations pursue different aspects of the financial planning and investment management professions, some commonalities exist in what they offer and how individuals can become credentialed. As one might expect, the main similarity of these credentials is the dedication required to attain them. Candidates prepare for the exams and attend courses outside of regular work hours; the time commitment is arduous both in terms of size and scope. The rigorous workload implies a baseline level of dedication that those who test and receive the certifications may have. Furthermore, the professionals who not only pursue but achieves a credential is committed to upholding the highest standards in their respective sector. At Foster & Motley, our team members are encouraged to further their education and pursue relevant credentials for the benefit of our clients. The client-first culture embedded in our organization has provided a welcoming atmosphere for individuals to want to pursue these designations rather than making them a requirement; however, some credentials are required for specific roles. Visit the Our Team page on our website to learn more about the individuals who have worked hard to earn the above credentials!   1 https://www.cfp.net/get-certified/certification-process 2 https://www.cfp.net/knowledge/reports-and-statistics/professional-demographics 3 https://www.cfainstitute.org/en/programs/cfa/exam/results-info 4 https://www.kaplanfinancial.com/docs/default-source/wealth-management-library/publicity/cmfc_publicitybrochure.pdf?sfvrsn=94efe18c_2  5 https://institutedfa.com/what-cdfa-1/ Sarah Browne, MFE, CFA Thu, 27 Jul 2023 17:30:00 GMT f1397696-738c-4295-afcd-943feb885714:41013 https://www.fosterandmotley.com/insights/2023/07/26/are-bonds-back-with-thom-guidi-cfa-and-sarah-conwell-cfa#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42020 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42020&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/07/26/are-bonds-back-with-thom-guidi-cfa-and-sarah-conwell-cfa Are you curious about the role of bonds in an investment portfolio and how they react to economic shifts?  In this episode, Thom Guidi, CFA, and Sarah Conwell, CFA, delve into the crucial lesson of incorporating bonds into your investment strategy and what the benefits are. While bonds serve as a protective measure during bear markets and deliver a consistent income stream that is less influenced by economic and stock market risks, there are no gaurentees. In 2022 both stocks and bonds faced challenging times. Join us as we explore what happened and why bonds reacted the way they did. Thom and Sarah share more about:The importance of investing in bondsThe current bond market How the inverted yield curve impacts portfoliosFoster and Motley's approach to bond investingAnd more Connect With Thomas Guidi and Sarah Conwell:info@fosterandmotley.com 513-561-6640Foster & MotleySarah K. Conwell Thomas GuidiLinkedIn: Sarah ConwellLinkedIn: Thomas GuidiLinkedIn: Foster & Motley Website Administrator Wed, 26 Jul 2023 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42020 https://www.fosterandmotley.com/insights/2023/07/15/foster-motley-included-in-top-rias-list-by-fa-magazine#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41014 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41014&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2023/07/15/foster-motley-included-in-top-rias-list-by-fa-magazine We are excited to announce Foster & Motley was ranked in the top 215 firms in the nation in Financial Advisor Magazine’s 2023 Annual RIA Ranking! This list was published in the July/August 2023 edition of Financial Advisor Magazine. Click here for a downloadable version of the full RIA Ranking by FA Magazine. To read the July 14, 2023 article where this list was shared, click here. Financial Advisor (FA) magazine invites Registered Investment Advisors annually, to complete a survey for this ranking. The specific criteria for the ranking are not included in their summary article. Foster & Motley completed a survey to be considered for this ranking and pays no fees to be included. According to FA Magazine, 521 firms were ranked and are listed by assets under management. FA magazine independently sets its criteria, and Foster & Motley has no influence on the criteria or the ranking. Betsy Wolking, MSM Sat, 15 Jul 2023 16:13:00 GMT f1397696-738c-4295-afcd-943feb885714:41014 https://www.fosterandmotley.com/insights/2023/07/12/should-i-consider-loaning-money-to-my-kids-with-joe-patterson-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42021 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42021&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/07/12/should-i-consider-loaning-money-to-my-kids-with-joe-patterson-cfp Have you thought about supporting your children in purchasing their first home? With the increasing  interest rates, there is a growing trend of parents stepping in to provide assistance with down payments or initial purchases.In this episode, Joe Patterson, CFP, delves into the burgeoning trend of family loans and examines the various strategies parents can employ when considering this option to offer support. Joe shares more about:The rising cost of housed and the challenges of affordability for younger buyersStrategies to provide assistance to your children while fostering their independenceEffective approaches for structuring loans when supporting your childrenKey considerations when contemplating monetary gifts for your childrenAnd more Connect With Joe:info@fosterandmotley.com 513-561-6640Foster & MotleyJoe PattersonLinkedIn: Joe PattersonLinkedIn: Foster & MotleyAbout Our Guest:Joe Patterson remembers as a child going with his father, an estate planning attorney, to visit clients, many of whom were in chaotic or isolated situations. His father drilled into him that being there for people with integrity and consistency wasn't just part of the job, but was what you built a career on.Joe values face-to-face interaction and relationship building more than anything else, and he often does it with a laugh. After a ten-year career with other institutions, he knew that the unique approach of Foster & Motley, pairing an investment manager with a financial planner, would allow him to have more of the real conversations that lead to organized and holistic outcomes.Joe became a shareholder in 2017 at Foster & Motley and finds a lot of purpose and inspiration in the long-term vision of the firm. He is also in charge of human capital at Foster & Motley, and he oversees employee matters ranging from benefits and hiring to planning fun, team-building events for our staff. At Foster & Motley, relationships with clients are the most important aspect of anyone's work, and Joe knows that the wellbeing and happiness of his colleagues contributes to successful client relationships. Helping to provide a positive and engaging environment is right up his alley.Joe and his wife Sarah have prioritized exposing their sons, Peter and Tate, to different cultures and experiences. One such experience was a trip to Spain, and they plan on undertaking many more small and large adventures with their family.It is not lost on Joe that in any situation, whether with his family or in his work, getting face-to-face and having real interactions is always the first step to helping others. Website Administrator Wed, 12 Jul 2023 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42021 https://www.fosterandmotley.com/insights/2023/07/05/whats-the-best-trip-youve-ever-taken-with-the-foster-motley-team#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42022 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42022&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/07/05/whats-the-best-trip-youve-ever-taken-with-the-foster-motley-team We are traveling around the world with the individuals of Foster and Motley! Join us as we traverse the globe, guided by the insights of Zach Binzer, CFP®, Niki Williams, Joe Patterson, CFP®, Rachel Rasmussen, MBA, CFA, CDFA®, Nick Roth, CFP®, Sara Young, CFP®, Zach Horn, MBA, CFP®, CMFC®, Tony Luckhardt, MBA, CFP®, CRPC®, and Betsy Wolking, MSM.In this episode, a few of the employees at Foster & Motley transport us to their most cherished vacation destinations. From the enchanting landscapes of Spain to the cultural wonders of Cambodia and Thailand, team members share their personal anecdotes and unveil the essence of what made these voyages truly extraordinary. The team shares about:Unforgettable moments that will forever hold a place in their heartsThe remarkable impact of good company, elevating the entire travel experience to new heightsKey destinations they explored, inspiring you to add them to your own bucket listAnd more Connect With Foster & Motley:info@fosterandmotley.com 513-561-6640Foster & MotleyOur TeamLinkedIn: Foster & Motley Website Administrator Wed, 05 Jul 2023 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42022 https://www.fosterandmotley.com/insights/2023/07/05/market-update#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=40981 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=40981&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2023/07/05/market-update “Confusion now hath made his masterpiece!” ― McDuff in Shakespeare’s The Tragedy of Macbeth  “Give me a one-handed Economist. All my economists say 'on the one hand, this, but on the other hand, that...”   ― Harry Truman With the S&P 500 Index up over 16% this year to date, the stock market is focused on how much inflation has moderated without a recession.  On the other hand, the bond market signals a recession comes.  This counterpose is not new, and we’ve commented on it here before, but it’s more extreme now. And that’s not the only extreme condition in markets.  In the first half, markets worked through the worst banking crisis since 2008, and the largest US debt ceiling crisis since 2013, yet the Tech-concentrated NASDAQ Index, up more than 30% so far this year, registered its largest gain for the first half of a year in 40 years.   Stock price growth has exceeded growth in earnings and other fundamentals, so already high market valuations are now higher.   Treasury bond yields rose a little this year, and short-term Treasury rates rose a lot.  The condition in which short-term treasury rates are higher than long-term rates is known as an “inverted yield curve” and is more extreme now than it has been in decades.  This is the condition in bonds that portends a coming recession.  It’s not certain if this merely predicts recession or reflects monetary conditions sufficient to cause one, but its accuracy in leading recessions has been historically good: this occurred 11 times in the past 55 years, and each time was followed by a recession starting between 6 and 18 months later.  Stock returns in the 15 months following a yield curve inversion have been mixed but biased to the downside, ranging between -47% and +12%.  The S&P 500 is now up 13% since the current inversion of the yield curve, and if it just stayed flat through year-end, it would be the best stock performance after a yield curve inversion since at least the 1960s. There is also the Composite Index of Leading Indicators, sometimes referred to as the LEI (Leading Economic Index, published monthly by the Conference Board), which while not as accurate as the yield curve, is now also pointing toward likely recession. In geopolitics, the anticipated Ukraine offensive has yet to achieve a breakthrough, but the recent flash coup leaves Putin politically wounded.  Unfortunately, it’s hard to imagine that will be a stabilizing influence on one who has threatened repeatedly to use his nuclear arsenal. On the positive side, employment remains strong: there are about two job openings for each job seeker, the consumer is still spending, and corporate profit margins have been strong.  GDP estimates for the first quarter were just revised upward from 1.4% to 2% per year above inflation.  However, the Gross Domestic Income measure slumped in the first quarter (in theory, the two should be equal, but because of measurement challenges, they seldom are).  That said, Europe has officially slipped into recession.  With lots of unrealized losses remaining in government securities holdings, US regional banks are not necessarily out of the woods yet.  And corporate bankruptcies have picked up.  Commercial real estate faces strong headwinds from falling office demand and higher borrowing costs.  Lenders to commercial real estate are increasingly reluctant to extend new loans when existing loans mature, and more than $1 Trillion in commercial real estate loans are scheduled to mature in the next 18 months. Quantified in terms of the annual change in the money supply (as measured by M2), monetary conditions are tighter now than at any time since the Great Depression.  The Federal Reserve, after raising rates at its fastest pace in many years, paused last month, but Chairman Powell has communicated intent to raise rates again soon.  If that weren’t more than enough, we now also have an extremely “narrow” stock market – that is, a market in which only a few stocks are rising, with the vast majority not so much.  For example, as of a month ago, when the S&P 500 was up 9.7% year to date, more than 100% of the market’s gain was then accounted for by just seven large stocks - AAPL, MSFT, NVDA, GOOGL, AMZN, META, and TSLA - with the other 493 being collectively down 0.25% for the year.  That’s not a sustainable situation for markets, and it’s particularly unusual to see in what many believe to be the early stages of a new bull market since such narrowness tends to occur very late in bull market cycles.  Sooner or later, something must give.   Altogether, this combination is a masterpiece of economic and investing confusion if there ever was one.  What do we make of it all, and what’s an investor to do? First, we don’t think the short-term direction of markets is really knowable.  That’s always the case, but it’s especially true when crosscurrents are so extreme.  Second, we think the worst course is to pay attention only to these indicators that fit one’s mood (and there are only two moods in investing: fearful or greedy!) while ignoring the multitude of other signals.  One theory holds that tight monetary conditions would have already produced a recession but for lingering growth boost effects of $4.6 Trillion in extra Federal stimulus spending from 2020 - 2022.  The thought is that the temporary, “sugar-high” that super-deficit spending produced will eventually (soon?) wear off, delaying but not eliminating the contracting effect of the Fed’s anti-inflation monetary policy.  We’ll see. What we know is that while inflation remains higher than most bond yields, if inflation continues to subside as rapidly as it has been, bonds with yields now much higher than we have seen for several years could quickly become attractive.  If inflation keeps coming down AND if a recession and an earnings recession are each avoided, stocks outside of a short list of popular mega-sized companies are not too expensive.  However, core inflation has been much stickier than “headline” inflation, and the inflation measure the Fed watches remains more than double the Fed’s target of 2%.  Despite persistent employment strength, the risk of recession remains elevated and has continued to rise.  The expensive, large, Tech stocks that led the market this year are not now even remotely priced to discount an earnings recession or worse. When markets have shown recent strength, commentators nearly always attribute the rise to greater conviction that the Fed’s interest rate increases are nearly finished.  That’s a curious reaction that largely ignores history: when the Fed switches its mode and stops raising rates, that’s seldom an “all clear” signal and more often an indication that either a recession is arriving, something in the financial system is “breaking,” or both. From the perspective of seasonality, the second quarter tends to be the year’s weakest.  On the other hand, stocks tend to have a better-than-average second half following a first half as strong as this year’s. Risks to both stocks and bonds are such that caution continues to be in order.  We continue to focus on high quality in bond portfolios, and while last year we kept average bond portfolio maturities shorter where we could, now we’re seeking to match the average maturity of portfolios to that of the bond indexes where possible as rates are higher.  In stocks, we only rarely see such disparity of opportunity with the large Tech stocks that have led the market this year trading at much richer valuations than the rest of the stock market, making them relatively unattractive.  However, while stock market risks are quite elevated for the market darlings, valuations (and therefore opportunities) appear much better for most other stocks.  International stocks look more compelling than US stocks.  Small stocks offer better long-term return prospects than large stocks.  Non-Tech stocks look generally more compelling than Tech stocks.  Dividend-paying stocks are much more compelling now than non-dividend-paying stocks.  And the gap between Value stocks and Growth stocks is considerably wider than usual, with opportunities concentrated in the cheap stocks.  One of the investment thought leaders we follow, GMO in Boston, thinks value stocks now represent a “generational” opportunity. Strong economic crosscurrents are not a reason to embrace the risks of market timing.  But a masterpiece of confusion can create significant relative investment opportunities, and the present looks to be no exception in that regard.   Mark Motley, MBA, CFA Wed, 05 Jul 2023 14:39:00 GMT f1397696-738c-4295-afcd-943feb885714:40981 https://www.fosterandmotley.com/insights/2023/06/28/when-should-i-start-talking-to-my-kids-about-finances-with-rachel-rasmussen-cfa-cdfa-and-tony-luckhardt-cfp-crpc#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42023 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42023&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/06/28/when-should-i-start-talking-to-my-kids-about-finances-with-rachel-rasmussen-cfa-cdfa-and-tony-luckhardt-cfp-crpc In a world where tapping your phone on a credit card machine is the norm, it can be hard for kids to grasp and truly understand the value of money  but, it's important to teach them about money, and how to prioritize saving, spending, and giving so they have a healthy relationship with money as they get older.  In this episode, Rachel Rasmussen, CFA, CDFA®, and Tony Luckhardt, CFP ®, CRPC®, discuss the importance of teaching children good money habits at any age. It's never too early or too late to start. Tony and Rachel share more about:Introducing financial topics to young children and how that message can evolve as they get older How sharing your own financial successes and failures can help inform their decisionsWhy talking about money now can prevent problems laterAnd more Resources:Article: It's Never too Early to Talk to Your Kids About MoneyArticle: Raising Money-Wise KidsAge Appropriate ideas for talking to your kids about moneyConnect With Rachel and Tony:info@fosterandmotley.com 513-561-6640Foster & MotleyRachel Rasmussen, CFA, CDFA®Tony Luckhardt, CFP ®, CRPC® LinkedIn: Rachel Rasmussen, CFA, CDFA®LinkedIn: Tony Luckhardt, CFP ®, CRPC® LinkedIn: Foster & Motley Website Administrator Wed, 28 Jun 2023 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42023 https://www.fosterandmotley.com/insights/2023/06/22/cbcs-book-of-lists-top-25-money-management-firms-includes-foster-motley#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=41015 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41015&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2023/06/22/cbcs-book-of-lists-top-25-money-management-firms-includes-foster-motley Every year the Cincinnati Business Courier surveys companies across the region and compiles data necessary to rank companies for the Book of Lists.  Foster & Motley was included in the Top 25 Money Management Firms list again for 2023, which was published on June 21, 2023. Summary of ranking methodology: The rankings are based on each firm’s Assets Under Management. Foster & Motley pays no fees to be included in the ranking. It is not the intent of the Cincinnati Business Courier to endorse or list participants or imply that rank has any correlation to the quality of service. For a detailed list of firms ranked, please click here. Betsy Wolking, MSM Thu, 22 Jun 2023 16:15:00 GMT f1397696-738c-4295-afcd-943feb885714:41015 https://www.fosterandmotley.com/insights/2023/06/14/why-should-young-people-have-estate-planning-documents-with-nick-roth-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42024 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42024&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/06/14/why-should-young-people-have-estate-planning-documents-with-nick-roth-cfp As you prepare to venture out into the world, it's time to embrace real responsibility. Regardless of your current situation, taking the initiative to get essential estate planning documents is a crucial step for any young adult.In this episode, Nick Roth, CFP®, emphasizes that turning 18 brings about a significant shift in legal recognition, with newfound responsibilities and limitations that may catch some individuals off guard. Nick shares more about:The four estate planning documents that every adult should have in place The reason for having estate planning documents in place at an early ageWho to work with for your estate planning needsAnd other relevant points Connect With Nick:info@fosterandmotley.com 513-561-6640Foster & MotleyNick Roth, CFP®LinkedIn: Nick Roth, CFP®LinkedIn: Foster & Motley About Our Guest:Born and raised in Cincinnati, Nick found a passion for the city and its people. He grew up on the west side where he developed a strong work ethic from his father, who owns and operates his own CPA business.  Nick was brought up seeing what true client service is and that translated into finding the perfect fit at Foster & Motley where the client comes first.   Since he was young, Nick knew he wanted to be involved in wealth management. He purchased 5 shares of P&G stock when he was 13 and has been eager to learn more about the markets ever since. His desire for learning doesn't stop there. During his time at the University of Cincinnati studying finance, he also engaged in other activities, including completing minors in Spanish and Information Systems, studying abroad 3 different times (on three different continents), and joining multiple honors programs/societies to further his education outside the classroom. Nick graduated from the Lindner College of Business magna cum laude in December 2017.In addition to his career ambitions, Nick is heavily involved with his alma mater, Elder High School. As a member of the Alumni Board, he helps with fundraising efforts, organizing alumni events, and helps graduates stay connected to the school. He is also an avid bowler and enjoys coaching the sport. After bowling himself for 4 years in high school, he joined Elder's coaching staff and began coaching the Junior Varsity team the year after he graduated. On a personal level, he regularly competes in tournaments and has placed as high as 4th in individual tournaments around Cincinnati.In his free time, Nick enjoys relaxing with his friends, playing a round of golf, or researching his next travel opportunity. His next bucket list destination is Brazil, and his goal is to get there in the next couple of years. Website Administrator Wed, 14 Jun 2023 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42024 https://www.fosterandmotley.com/insights/2023/06/07/what-is-a-family-letter-and-why-should-i-have-one-with-zach-horn-mba-cfp-cmfc#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42025 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42025&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/06/07/what-is-a-family-letter-and-why-should-i-have-one-with-zach-horn-mba-cfp-cmfc You've taken care of your will, power of attorney, and established a trust, but there is one more document you should consider as you think through your estate plans: a family letter.In this episode, Zach Horn, MBA, CFP®, CMFC®, emphasizes the significance of having a family letter as a supplement to your estate planning documents. A family letter can provide a personal touch to your last wishes and simplify the process for your loved ones. Zach delves into several key topics, including:How this letter can serve as a “catch-all” by containing personal contacts, passwords, healthcare information, and general financial account information The benefits of having your personal information organized and accessible for your familyHow Foster & Motley can provide a template for the family letter, organized for ease of use and to ensure all necessary elements are included – Download your template here.And more Connect With Zach:info@fosterandmotley.com 513-561-6640Foster & MotleyZach Horn, MBA, CFP®, CMFC®LinkedIn: Zach Horn, MBA, CFP®, CMFC®LinkedIn: Foster & MotleyAbout Our Guest:Zach Horn, MBA, CFP®, CMFC®, knows that a plan communicated in a language people can understand, no matter how complex it might actually be, is possible in every situation and serves everyone involved in the best way possible. Zach has built many client relationships that are more like friendships and go beyond the normal aspects of planning and management. And that's just the way he wants it.Zach has a Bachelor of Business Administration degree in Finance from Ohio University and an MBA degree in Finance from Xavier University. Before joining Foster & Motley, Zach worked for Ameriprise Financial, Inc. as a financial advisor in Columbus, Ohio. He joined the firm in 2007 as the Securities Trader and a member of the investment team. Zach obtained the CERTIFIED FINANCIAL PLANNER (CFP®) and Chartered Mutual Fund Counselor (CMFC®) designations in 2012. He is now an Investment Manager and shareholder.In addition to his duties as an Investment Manager, Zach is also the Managing Partner and President of the Board. In this role, Zach focuses on the long-term vision of Foster & Motley and how the day-to-day operations support that vision. His communication skills and initiative help keep our team focused, open-minded to change, and collaborative.  Zach lives with his family in Mason, Ohio. He enjoys sports of all kinds, but especially coaching his sons in baseball and basketball. In 2020, Zach was included in Cincinnati Business Courier's Forty Under 40 class which recognizes the next generation of leaders and innovators in Greater Cincinnati. He recently joined the board of directors for the Ohio Valley Goodwill. Zach was impressed with the scale of the organization and their mission of helping those with disabilities and other challenges gain employment in the community and wanted to be part of its success. Website Administrator Wed, 07 Jun 2023 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42025 https://www.fosterandmotley.com/insights/2023/05/24/how-do-i-handle-stock-awards-and-executive-compensation-with-joe-patterson-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42026 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42026&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/05/24/how-do-i-handle-stock-awards-and-executive-compensation-with-joe-patterson-cfp It is a wonderful thing when you reach a point in your career where you receive additional compensation such as stock awards. However, not all stock grants are created equal, and understanding the nuances and tax consequences is essential to maximizing their benefits.Join us in this episode as we explore the complex world of stock grants with Joe Patterson, CFP®.  Joe shares his expertise and insights on the different types of stock grants, their vesting schedules, and the tax implications they may have on your portfolio.Topics Joe shares more about:The motivations behind companies offering stock awardsSome of the different types of stock awards availableThe advantages and disadvantages of different  types of stock awardsA detailed look at the tax implications of receiving stock awardsAnd more Connect With Joe Patterson:info@fosterandmotley.com 513-561-6640Foster & MotleyJoe Patterson, CFP®LinkedIn: Joe Patterson, CFP®LinkedIn: Foster & MotleyAbout Our Guest:Joe Patterson remembers as a child going with his father, an estate planning attorney, to visit clients, many of whom were in chaotic or isolated situations. His father drilled into him that being there for people with integrity and consistency wasn't just part of the job, but was what you built a career on.Joe values face-to-face interaction and relationship-building more than anything else, and he often does it with a laugh. After a ten-year career with other institutions, he knew that the unique approach of Foster & Motley, pairing an investment manager with a financial planner, would allow him to have more of the real conversations that lead to organized and holistic outcomes.Joe became a shareholder in 2017 at Foster & Motley and finds a lot of purpose and inspiration in the long-term vision of the firm. He is also in charge of human capital at Foster & Motley, and he oversees employee matters ranging from benefits and hiring to planning fun, team-building events for our staff. At Foster & Motley, relationships with clients are the most important aspect of anyone's work, and Joe knows that the well-being and happiness of his colleagues contribute to successful client relationships. Helping to provide a positive and engaging environment is right up his alley.Joe and his wife Sarah have prioritized exposing their sons, Peter and Tate, to different cultures and experiences. One such experience was a trip to Spain, and they plan on undertaking many more small and large adventures with their family.It is not lost on Joe that in any situation, whether with his family or in his work, getting face-to-face and having real interactions is always the first step to helping others. Website Administrator Wed, 24 May 2023 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42026 https://www.fosterandmotley.com/insights/2023/05/10/how-much-longer-will-we-talk-about-inflation-with-david-j-nienaber-mba-cpa-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42027 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42027&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/05/10/how-much-longer-will-we-talk-about-inflation-with-david-j-nienaber-mba-cpa-cfp While many of us associate inflation with the increased costs of basic necessities such as gas, groceries, or haircuts, its impact is much broader than that. Inflation is a complex topic that affects every aspect of our financial lives – from day-to-day expenses to long-term goals such as homeownership and retirement planning.Join us in this episode as David J. Neinaber, MBA, CPA, CFP®, provides an overview to help tackle the puzzle that is inflation. Despite remaining relatively low in the past forty years, recent trends show that inflation is on the rise – and this can have a significant impact on your monthly expenses and the performance of your investments. Topics David shares more about:Understanding the impact of inflation Strategies to safeguard your investments against inflationSimple explanations and examples for understanding inflationAnd more!Connect With David Nienaber:info@fosterandmotley.com 513-561-6640Foster & MotleyDavid Nienaber, MBA, CPA, CFP®LinkedIn: David Nienaber, MBA, CPA, CFP® LinkedIn: Foster & MotleyAbout Dave:As a 17-year-old junior at Covington Catholic High School, Dave Nienaber unabashedly told a class speaker that he would eventually become a CERTIFIED FINANCIAL PLANNER™, surprising a number of his classmates, but not those who knew him best. David has never refrained from engaging fully and with purpose. Whether it was as the portfolio manager for the University of Dayton's student-run portfolio during his time as an undergraduate, teaching his children to play golf or even sticking by his beloved Green Bay Packers, he has always been energized by commitments to meaningful pursuits.Upon graduating from the University of Dayton in 2004 with an MBA and a Bachelor of Science degree magna cum laude in Accounting and Finance, Dave started his career with Deloitte and soon earned his CPA. It was during his time working with Deloitte's Investment Advisors team, while spending a significant amount of time working with Procter & Gamble employees and retirees, that he discovered his real passion. He enjoyed providing the many services that come with handling complex asset and retirement situations, and he had the opportunity to gain experience with an array of financial situations.When his previous company was sold, Dave had the opportunity to step back and look at the entire financial landscape in Cincinnati and determine where he might fit best. Foster & Motley immediately jumped to the front of the line. He was drawn to their client-centric approach and low ego ethos. He also saw that with the employee-owned model of the firm, there was the chance to be invested in the company in even greater ways than just his day-to-day work. It was a natural fit.Dave has been with Foster & Motley since 2010 serving as a Financial Planner and has been a shareholder since 2015. Dave's client-focused mentality and team-oriented attitude led him to his role as Head of the Financial Planning team. Dave helps keep the team on top of the latest financial planning issues, so we can best serve clients.  He always thought that he would enjoy giving people advice in his role as a planner and adviser, but over the years, he has honed his listening and question-asking skills. Now, he counts helping clients find the path that is right for them as the best part of his job.It is no surprise that Dave's family life is also full of deep purpose. Dave and his wife Moreen most enjoy taking their five children, Ella, Luke, Nicholas, Anna, and Caroline up to northern Michigan to sail, fish, and spend quality time together. They reside in Northern Kentucky, near where David grew up, and as he looks to the future, he knows his roots and commitments will continue to deepen. Website Administrator Wed, 10 May 2023 18:22:00 GMT f1397696-738c-4295-afcd-943feb885714:42027 https://www.fosterandmotley.com/insights/2023/05/03/how-do-i-plan-for-my-financial-future-while-going-through-a-divorce-with-rachel-rasmussen-mba-cfa-cdfa-and-joe-patterson-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42028 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42028&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/05/03/how-do-i-plan-for-my-financial-future-while-going-through-a-divorce-with-rachel-rasmussen-mba-cfa-cdfa-and-joe-patterson-cfp Did you know that the United States ranks 4th in the world for the highest number of divorces? If you're going through a divorce, it's essential to understand the financial implications that could impact your future. In this episode, Rachel Rasmussen, MBA, CFA, CDFA®, and Joe Patterson, CFP®, help us understand the divorce process so you can plan for your financial future. You'll also learn how working with a financial advisor can help you understand the financial impact of your divorce proceedings.    Rachel and Joe share more about:The importance of planning  for your new financial futureFinancial factors in a divorce that you may not be aware ofFinancial considerations pre and post-divorceWhy having a team of advisors can help to reduce stressAnd moreResources:A Chat About Balance SheetsWhy Should Both Partners Be Involved in Household Finances?Connect With Rachel and Joe:info@fosterandmotley.com 513-561-6640Foster & MotleyRachel Rasmussen, MBA, CFA, CDFA® Joe Patterson, CFP®LinkedIn: Rachel Rasmussen, MBA, CFA, CDFA® LinkedIn: Joe Patterson, CFP® LinkedIn: Foster & Motley Website Administrator Wed, 03 May 2023 18:58:00 GMT f1397696-738c-4295-afcd-943feb885714:42028 https://www.fosterandmotley.com/insights/2023/04/26/what-is-a-class-action-litigation-with-thom-guidi-cfa#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42029 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42029&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/04/26/what-is-a-class-action-litigation-with-thom-guidi-cfa Have you ever received a letter in the mail telling you that you are eligible for a class action lawsuit, potentially due to a purchase you made? You might be wondering why you are receiving these cryptic mass messages and what they mean… In this episode, Thom Guidi, CFA, explores the world of Class Action Litigation, shedding light on its vital components. Thom explains how class action suits are initiated and who usually starts the process. By drawing from real-world examples like the Enron scandal, where shareholders were defrauded, Thom offers invaluable insights into the intricate workings of class action litigation and its far-reaching implications for investors.Thom shares more about: What class action litigation suits areHow Foster & Motley manages this process for clientsThe method of identifying potential plaintiffs for the caseAnd moreConnect With Thom:info@fosterandmotley.com 513-561-6640Foster & MotleyThom Guidi, CFALinkedIn: Thom Guidi, CFALinkedIn: Foster & MotleyAbout Our Guest:Thom Guidi often gets pulled into conversations and situations that involve technology and innovation. With a deep appreciation for and understanding of those topics, Thom is the ideal practical and nuanced thinker in a variety of scenarios. It might be his love for delving into complex topics, the fact that he grew up surrounded by engineers, or a mix of the two, that made him this way, but throughout his almost 20-year career in the finance industry, he has continually been looking for new problems to solve and innovative ways to apply his knowledge.Thom graduated from the University of Kentucky with a Bachelor of Business Administration degree in Finance and was also a member of the varsity swim team. He then moved back to his native Northern Kentucky to begin his career working with Fidelity Investments. He was in a variety of sales and advisory positions before he joined Foster & Motley in 2005 as a Securities Trader. In 2006, he earned his Chartered Financial Analyst (CFA®) designation and became an Investment Manager at the firm. He is also a shareholder and remains integral to much of the innovation and new technology that the firm implements.Having worked in both a large and now a smaller, client-focused firm, Thom knows that in day-to-day interactions with clients, innovation and forward-thinking can still be applied as he works to help them build and execute on their aspirations. His innovative spirit has been recognized in many ways, including as a guest on WVXU's “On the Money” and in profiles in the Greater Cincinnati Business Courier, and the Wall Street Journal.Thom also stays busy with his family, which includes his wife Beth, and their two young sons, Evan and Nathan. He continued his swimming career following his collegiate days in UK and has done triathlons in the past. Thom has always approached his career and partnership with clients with the same kind of dedication and deliberation that being a swimmer or runner requires and is looking forward to what the next innovation or breakthrough brings. Website Administrator Wed, 26 Apr 2023 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42029 https://www.fosterandmotley.com/insights/2023/04/12/i-recently-inherited-money-what-do-i-do-next-with-zach-binzer-cfp-and-ryan-english-mba-cfa-cpa-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42030 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42030&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/04/12/i-recently-inherited-money-what-do-i-do-next-with-zach-binzer-cfp-and-ryan-english-mba-cfa-cpa-cfp Inheriting money can be a significant event in your life, and it's essential to know what to do next. Navigating the emotions associated with the loss can be hard enough, let alone dealing with financial decisions that will impact your future.  In this episode, Zach Binzer, CFP®, and Ryan English, MBA, CFA, CPA, CFP®, discuss the steps needed to navigate the inheritance process. From understanding the estate planning documents to how to divide up assets, this episode is here to help you when life takes over. Zach and Ryan share more about:The importance of understanding the assets making up your loved one's estateBreaking down the complexities of an estate before decisions are madeDistribution considerations like taxes and timingWhy keeping your beneficiary designations up to date is importantAnd moreArticle: What Do I Do With Inheritance Money?Connect With Ryan English and Zach Binzer:info@fosterandmotley.com 513-561-6640Foster & MotleyZach T. Binzer, CFP®Ryan English, MBA, CFA, CPA, CFP®LinkedIn: Zach BinzerLinkedIn: Ryan EnglishLinkedIn: Foster & Motley Website Administrator Wed, 12 Apr 2023 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42030 https://www.fosterandmotley.com/insights/2023/04/05/what-do-i-need-to-consider-when-selling-my-business-with-david-j-nienaber-mba-cpa-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42031 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42031&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/04/05/what-do-i-need-to-consider-when-selling-my-business-with-david-j-nienaber-mba-cpa-cfp The decision to sell a business can be a difficult one, especially when you have invested significant time, effort, and personal attachment. It may be one of the most significant financial decisions you will ever make.In this must-listen episode, David Nienaber, MBA, CPA, CFP®, shares his expert advice on the best time to sell your business. As a seasoned business professional and successful entrepreneur himself, David brings a wealth of knowledge and expertise to the conversation. Dave shares more about:The two most common hurdles when it comes to selling a businessImportant factors to consider when selling a business in relation to employees and key stakeholdersOne of the least discussed aspects of selling a business – the emotional component And moreConnect With David Nienaber:info@fosterandmotley.com 513-561-6640Foster & MotleyDavid NienaberLinkedIn: David Nienaber LinkedIn: Foster & MotleyAbout Dave:As a 17-year-old junior at Covington Catholic High School, Dave Nienaber unabashedly told a class speaker that he would eventually become a CERTIFIED FINANCIAL PLANNER™, surprising a number of his classmates, but not those who knew him best. David has never refrained from engaging fully and with purpose. Whether it was as the portfolio manager for the University of Dayton's student-run portfolio during his time as an undergraduate, teaching his children to play golf, or even sticking by his beloved Green Bay Packers, he has always been energized by commitments to meaningful pursuits.Upon graduating from the University of Dayton in 2004 with an MBA and a Bachelor of Science degree magna cum laude in Accounting and Finance, Dave started his career with Deloitte and soon earned his CPA. It was during his time working with Deloitte's Investment Advisors team, while spending a significant amount of time working with Procter & Gamble employees and retirees, that he discovered his real passion. He enjoyed providing the many services that come with handling complex asset and retirement situations, and he had the opportunity to gain experience with an array of financial situations.When his previous company was sold, Dave had the opportunity to step back and look at the entire financial landscape in Cincinnati and determine where he might fit best. Foster & Motley immediately jumped to the front of the line. He was drawn to their client-centric approach and low ego ethos. He also saw that with the employee-owned model of the firm, there was the chance to be invested in the company in even greater ways than just his day-to-day work. It was a natural fit.Dave has been with Foster & Motley since 2010 serving as a Financial Planner and has been a shareholder since 2015. Dave's client-focused mentality and team-oriented attitude led him to his role as Head of the Financial Planning team. Dave helps keep the team on top of the latest financial planning issues, so we can best serve clients.  He always thought that he would enjoy giving people advice in his role as a planner and adviser, but over the years, he has honed his listening and question-asking skills. Now, he counts helping clients find the path that is right for them as the best part of his job.It is no surprise that Dave's family life is also full of deep purpose. Dave and his wife Moreen most enjoy taking their five children, Ella, Luke, Nicholas, Anna, and Caroline up to northern Michigan to sail, fish, and spend quality time together. They reside in Northern Kentucky, near where David grew up, and as he looks to the future, he knows his roots and commitments will continue to deepen. Website Administrator Wed, 05 Apr 2023 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42031 https://www.fosterandmotley.com/insights/2023/04/04/market-update#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=40850 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=40850&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2023/04/04/market-update “Confidence is contagious.  So is lack of confidence.” – Vince Lombardi The bear market continues, though with no new market low since the fall.  The labor market continues to mostly surprise to the upside.  Unemployment has stayed low.  Nearly two unfilled positions remain for each person seeking employment.  Stock markets in the first quarter mirrored 2021 with a rush to the largest Tech stocks and the NASDAQ Index jumping.  But the recent sudden collapse in confidence in several regional banks casts a new pall over the economy and over the actions of the Federal Reserve and the other regulators. The FDIC’s recent extension of insurance protection to all depositors of two failed banks renewed focus on bailouts.  What received less press is that the potential Mother-of-All-Bailouts may have gotten a recent boost:  Medicare and Social Security are projected to run out of money in four and fourteen years, respectively.  In January, the Administration declared reform of either program “non-negotiable.”  That may change, but fixes to each are limited to raising eligibility ages, reducing benefits, or increasing taxes – each of which is now “off the table.”  Since letting those programs default is not really an option, the only implication could be an intended federal bailout of these programs when the cash runs out by issuing Treasury bonds.  That much bond issuance could not be well absorbed by the market, so the Fed would likely have to buy most of those new bonds, resulting in more money creation and more inflation.  That may be a few years in the making and the next Administration and Congress may choose to address these problems.  But for now, refusal to do anything to address the fiscal problems of those two behemoth programs means the prospect for higher long-run inflation has clearly increased.  Portfolio planning must account for that. But that’s down the road (that is: past the next “election cycle.”)  Much closer is the looming debt-ceiling battle which is all but certain to get increased attention over the next couple of months.  Most expect this to ultimately get resolved, but not without some short-term market pain along the way. Geopolitical tensions are high and rising: China and the US have seldom been on worse terms, Russia and Ukraine are each expected to launch spring offensives soon, and Putin just announced he is sending tactical nuclear weapons to Belarus.  Iran is said to be days or weeks away from having enough material for a nuclear warhead.  Geopolitically, the world is unsettled.  On the other hand, Finland is now part of NATO, strengthening defense in Europe, which may allow the US to shift a bit more attention to the East. In spite of the perhaps not fully resolved bank crisis, the Fed recently raised interest rates again, as did the European Central Bank.  Each hike now increases the risk of pushing banks into tighter lending which could depress both economic activity and corporate earnings.  Yet stock valuations in this still ongoing stock bear market have only somewhat improved and don’t yet discount possible recession levels of earnings.  With the S&P 500 Index 14% below its previous bull market high set on 1/3/22, and 15% above its bear market low of 10/12/22, stocks are in the middle: well up from recent lows yet short of breaking out into a new bull market. We wish we could offer a brighter prospect for long-term returns this far into a bear market, but this continues to be a time that warrants diligent caution.  If a recession does not develop within the next few months and inflation allows the Fed to signal a pause in interest rate hikes, markets would likely cheer, and valuations may get stretched more.  But in that event, such a pause may more likely signal concern for the economy than “all clear” and would not resolve underlying economic issues of lingering inflation and tighter monetary conditions.  With even short-term interest rates now well above the lows of recent years, we are closer to a point that offers materially better long-term return prospects for most asset classes, but that still appears to be in the future. Mark Motley, MBA, CFA Tue, 04 Apr 2023 15:20:00 GMT f1397696-738c-4295-afcd-943feb885714:40850 https://www.fosterandmotley.com/insights/2023/03/22/why-should-both-partners-be-involved-in-household-finances-with-tony-r-luckhardt-mba-cfp-crpc-and-rachel-rasmussen-mba-cfa-cdfa#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42032 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42032&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/03/22/why-should-both-partners-be-involved-in-household-finances-with-tony-r-luckhardt-mba-cfp-crpc-and-rachel-rasmussen-mba-cfa-cdfa Many studies have shown that money can be a significant source of conflict in relationships. What if one partner is a saver and the other a spender? How do you align on your goals for the next 5, 10, or 15 years? In this episode, Tony Luckhardt, MBA, CFP®, CRPC®, and Rachel Rasmussen, MBA, CFA, CDFA®, go into detail about the importance of communication and getting on the same page when dealing with finances among spouses. Tony and Rachel share more about:When you should start having these important conversationsWhat to consider when planning for a future together How working with a financial advisor can ease some of the stressors that come with these important discussions And moreConnect With Tony and Rachel:info@fosterandmotley.com 513-561-6640Foster & MotleyTony LuckhardtRachel RasmussenLinkedIn: Tony LuckhardtLinkedIn: Rachel RasmussenLinkedIn: Foster & Motley Website Administrator Wed, 22 Mar 2023 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42032 https://www.fosterandmotley.com/insights/2023/03/13/interim-market-comment#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=40813 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=40813&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2023/03/13/interim-market-comment As you have no doubt read, the country is in the midst of a sudden banking crisis, the largest since 2008 - though it in no way rivals that episode.  In recent days, three financial institutions have failed and been taken over by regulators: Silvergate Capital, Silicon Valley Bank (SVB), and Signature Bank of New York (SBNY).  Silvergate and Signature each had significant crypto exposure, but Silicon Valley Bank got into trouble by taking too much interest rate exposure with its investment portfolio while having a concentrated deposit base. In response, the FDIC announced that all deposits of SVB and SBNY will be guaranteed, even those over FDIC deposit insurance limits, and the Federal Reserve created a new lending facility, the Bank Term Funding Program (BTFP) to provide one-year loans to banks and accept Treasuries and federal agency securities at par as collateral.  As a result, we expect this banking crisis will be contained, as discussed below. That move will no doubt be criticized politically (“bailouts of depositors!”), may raise long-term risks, and could add to inflation pressures.  But as a near-term step, it may go a long way toward resolving the current financial crisis.  Here’s why accepting Treasury securities as collateral at par is important:  Banks essentially take in deposits and they use most of those funds to make loans and buy bonds.  When interest rates rise, as they have substantially over the past year or so, the value of those bonds falls.  They only fall temporarily as they are still worth par at maturity, but that doesn’t matter when there is a “run” on withdrawing bank deposits as banks have to meet those by selling their bonds at losses.  Since banks are leveraged, sales of enough bonds at large enough losses can make a bank insolvent, as it did SVB.  This new bank lending program from the Fed allows banks to meet any liquidity needs by pledging these bonds trading below cost rather than being forced to sell them and take losses.  The 2008 financial crisis was a credit crisis and investment losses due to bad credit can be permanent.  On the other hand, losses due to the rapid rise in interest rates can be temporary if the bonds can be held to maturity, so this is an easier problem to bridge.  But it has many implications. When the Federal Reserve is in interest rate tightening mode, it tends to continue until inflation declines to its goals or until it “breaks something” (i.e., causes a financial crisis), or causes a recession and unemployment rises (slowing demand and inflationary pressures).  It’s possible this crisis may cause the Fed to pause or change direction, but that’s not a sure thing since, so far, this financial crisis has been limited to certain banks that are not in the largest tier of financial institutions.  Moreover, the Feds actions and those of the FDIC have likely gone a long way to diffuse the issue.  And a rapid decline in interest rates in recent days has increased the value of bonds and reduced pressure on stressed bank balance sheets. However, when one thing “breaks,” it often has farther-reaching implications.  For example, while larger banks have oversight that precludes similar interest rate risk that SVB took, there may be other regional banks in a similar boat, other banks may have exposure to these institutions through credit default swaps, foreign banks may have similar issues, many money market funds hold foreign bank paper which could impact their values, an unusual amount of moving cash around in the system could cause unanticipated liquidity stress, or something else entirely unanticipated.  These next few days may be interesting – we’re certainly monitoring developments closely. In the meantime, out of an abundance of caution, we’re executing the following steps today: We’re reducing balances in Schwab bank deposits to under the FDIC insurance limit for all accounts for which we have trading authority (Note that this is done by buying “purchased” money market funds which have 1-day liquidity rather than same-day liquidity – let us know if you need same-day liquidity for an amount in excess of the FDIC’s $250K insurance cap.) We’re swapping regular “purchased” money market fund holdings for purchased money market funds that only hold Treasury securities for all accounts for which we have trading authority (both the standard and the Treasury money market funds come in a more-than-$1-million-balance and a less-than-$1-million-balance variety). Note also that securities held by Schwab as custodian are not subject to risks to Schwab’s balance sheet or to Schwab Bank.  Neither Schwab nor its money funds have any direct exposure to the three failed institutions referenced above.  And regarding Schwab Bank, it has a strong liquidity position and its deposits are considered “stickier” than those of most banks as they are overwhelmingly composed of smaller balances (for example 80% of Schwab Bank’s deposits are under $250K vs 2% for SVB and 20% for SBNY.) We don’t think these Schwab bank deposit and money market fund moves will prove to have been necessary, but the give-up of only 0.15% per year in interest is in our view a very modest cost for this prudent action given the fact that historically, a financial crisis can take surprising turns and twists.  We continue to believe this one will soon blow over and be relatively contained - so much so that it may not even dissuade the Fed from raising interest rates at its next meeting.  But we’re still taking the most cautious posture possible with cash deposits as there is so little “cost” to do so. Mark Motley, MBA, CFA Mon, 13 Mar 2023 20:31:00 GMT f1397696-738c-4295-afcd-943feb885714:40813 https://www.fosterandmotley.com/insights/2023/03/08/are-you-keeping-your-financial-data-secure-with-luke-hail-mba-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42033 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42033&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/03/08/are-you-keeping-your-financial-data-secure-with-luke-hail-mba-cfp In today's increasingly digital world, the threat of cyber attacks is more prevalent than ever. The rise of technology has given hackers more opportunities to steal personal information and gain unauthorized access to sensitive data, making it crucial to prioritize cybersecurity.Fortunately, there are several measures you can take to protect yourself. Two-factor authentication, freezing your credit, and vigilance for suspicious activity are all key practices for safeguarding your personal and financial information. Get ready to level up your financial security knowledge! In this episode, we'll explore a range of ways you can protect your personal and financial information and how to identify and prevent cyber attacks. In this compelling discussion, Luke Hail, MBA, CFP, shares a real-life example of how cybercriminals infiltrated one client's email and stole their hard-earned wealth. But don't worry, it has a happy ending.Join us to discover:The pros and cons of credit vs. debit cardsThe importance of cybersecurity and practical tips to stay safe onlineSecrets to creating uncrackable passwordsHow to spot and avoid common scamsWhat a credit freeze is and how to implement it And that's just the beginning – there's so much more to learn in this jam-packed episode. Tune in to take control of your financial security and protect yourself from the threats of the digital world.Connect With Luke Hail:info@fosterandmotley.com Foster & MotleyLuke HailLinkedIn: Luke HailLinkedIn: Foster & Motley513-561-6640 Website Administrator Wed, 08 Mar 2023 16:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42033 https://www.fosterandmotley.com/insights/2023/03/03/krogers-4th-quarter-earnings-ryan-english-quoted-in-the-cincinnati-business-courier#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=40819 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=40819&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2023/03/03/krogers-4th-quarter-earnings-ryan-english-quoted-in-the-cincinnati-business-courier Ryan English, MBA, CFA, CPA, CFP®, recently spoke with Steve Watkins of the Cincinnati Business Courier about Kroger Co.’s adjusted fourth-quarter earnings. Below is an excerpt from the article: Downtown-based Kroger (NYSE: KR), the nation’s largest operator of traditional supermarkets, earned 99 cents per share in the quarter, the company said Thursday before the market opened. That’s up from 91 cents in the year-ago quarter. It beat analysts’ estimates by at least 10%. Analysts had been predicting Kroger would earn 90 cents per share, based on estimates compiled by Zacks Investment Research, and 89 cents per share, according to Thomson Reuters consensus estimates… Ryan English, investment manager and shareholder at Kenwood-based investment advisory firm Foster & Motley, called it a "great earnings report." He was impressed by the same-store sales growth. "The results show that consumers are still maintaining their habit of eating more at home and dealing with inflation," English said. Click here to read the full article (a subscription may be required). Betsy Wolking, MSM Fri, 03 Mar 2023 15:59:00 GMT f1397696-738c-4295-afcd-943feb885714:40819 https://www.fosterandmotley.com/insights/2023/03/01/what-does-the-secure-act-20-mean-for-me-with-emily-diaz-macc-cpa-cfp-and-zach-binzer-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42034 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42034&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/03/01/what-does-the-secure-act-20-mean-for-me-with-emily-diaz-macc-cpa-cfp-and-zach-binzer-cfp While we were all celebrating the holidays, Congress was busy making new tax laws and gifting us with approximately 100 new provisions to the Secure Act. Can't you feel the legislative love? In this episode, Emily Diaz, MAcc, CPA, CFP®, and Zach Binzer, CFP®, discuss the myriad of changes to the Secure Act and how they could be significant to you. Emily and Zach share more about:Secure 1.0 vs. Secure 2.0Changes to RMD agesChanges to contribution limits on retirement accountsChanges to Roth accountsAnd moreConnect With Emily Diaz and Zach Binzer:info@fosterandmotley.com 513-561-6640Foster & MotleyZach BinzerEmily DiazLinkedIn: Zach BinzerLinkedIn: Emily DiazLinkedIn: Foster & Motley Website Administrator Wed, 01 Mar 2023 16:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42034 https://www.fosterandmotley.com/insights/2023/02/22/are-stock-market-corrections-normal-with-mark-motley-mba-cfa-and-joe-patterson-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42035 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42035&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/02/22/are-stock-market-corrections-normal-with-mark-motley-mba-cfa-and-joe-patterson-cfp What goes up often comes down. It's just a matter of how far and how fast the decline. Stocks are no exception. In this episode, Mark Motley, MBA, CFA, and Joe Patterson, CFP®, talk about stock market corrections and bear markets.Mark and Joe share more about:A definition of stock market corrections and bear marketsThe history of markets in terms of frequency, depth, and recoveriesThe history of bear markets for balanced portfoliosReasons why bear markets and market corrections matterAnd moreConnect Wih Mark Motley and Joe Patterson:info@fosterandmotley.com 513-561-6640Foster & MotleyMark MotleyJoe PattersonLinkedIn: Mark MotleyLinkedIn: Joe PattersonLinkedIn: Foster & Motley Website Administrator Wed, 22 Feb 2023 19:03:00 GMT f1397696-738c-4295-afcd-943feb885714:42035 https://www.fosterandmotley.com/insights/2023/02/15/foster-motley-advisors-participate-in-annual-stock-picking-contest#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=40781 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=40781&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2023/02/15/foster-motley-advisors-participate-in-annual-stock-picking-contest Each year the Cincinnati Business Courier invites local advisors to compete in a stock-picking contest. According to Steve Watkins of the Business Courier, “Contestants, which consist of 21 Greater Cincinnati investment pros plus the Courier’s own portfolio of stock picks, are asked to select a portfolio of five stocks that they expect to produce the best total return, including dividends, for 2023. At least one selection has to be a locally based company, meaning local stocks are almost always the most popular selections. Predictions [for 2023] were made by Jan. 10.” For the 2023 contest, two Foster & Motley advisors made picks; Beth Green and Thom Guidi. You can read the 2023 kick-off article here. In early 2024, we will see how they fared! In 2022, Rachel Rasmussen and Brad Soper both competed. Brad chose Medpace, Alphabet, Broadcom, Goldman Sachs, and Lennar, while Rachel selected Fifth Third, EOG Resources, Merck, Omnicom, and United Rentals. Rachel came in third place out of 26 participants. You can read the 2022 kick-off article here and view the full results here. A subscription may be required for Cincinnati Business Courier links. Betsy Wolking, MSM Wed, 15 Feb 2023 16:02:00 GMT f1397696-738c-4295-afcd-943feb885714:40781 https://www.fosterandmotley.com/insights/2023/02/14/kroger-merger-details-ryan-english-quoted-in-the-cincinnati-business-courier#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=40775 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=40775&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2023/02/14/kroger-merger-details-ryan-english-quoted-in-the-cincinnati-business-courier Ryan English, MBA, CFA, CPA, CFP®, recently spoke with Steve Watkins of the Cincinnati Business Courier about the ongoing details of the Kroger Co. and Albertsons Cos. merger. Below is an excerpt from the article: Kroger Co. and Albertsons Cos. have narrowed down their planned number of stores they’ll divest as part of planned merger. Downtown Cincinnati-based Kroger (NYSE: KR), the nation’s largest operator of traditional supermarkets, and Boise, Idaho-based Albertsons, the second-largest to Kroger, plan to sell between 250 and 300 stores as part of the planned $24.6 billion deal for Kroger to acquire Albertsons, according to a recent Reuters report. That's narrower than the range of 100 to 375 stores the companies initially planned to divest... Ryan English, investment manager and shareholder at Kenwood-based investment advisory firm Foster & Motley, told me the number of stores the companies are targeting to sell makes sense. “It is inevitable that Kroger and Albertsons will have to divest stores to gain FTC approval of the merger transaction,” English said. “The question has always been how many stores will it take?" English said divesting 250 to 300 stores makes sense, but if Kroger signed an agreement to complete the merger even if it had to divest 650 stores, the economics of the deal must still work at that level. Click here to read the full article (a subscription may be required). J. Ryan English, CFA, CPA, CFP® Tue, 14 Feb 2023 15:53:00 GMT f1397696-738c-4295-afcd-943feb885714:40775 https://www.fosterandmotley.com/insights/2023/02/08/is-your-cash-working-for-you-with-thom-guidi-cfa#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42036 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42036&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/02/08/is-your-cash-working-for-you-with-thom-guidi-cfa What has your money done for you lately? The times are changing and interest rates are rising. In this episode, Thom Guidi, CFA, talks about ways to put your cash to work, whether that's money you have set aside for an emergency or  cash saved for spending you anticipate in the next year or so. Thom shares more about:Why cash yields are a topic of conversation right nowYour unique uses for cashWhere to look for the best interest rates on cashAnd moreConnect With Thom Guidi:info@fosterandmotley.com 513-561-6640Foster & MotleyThom GuidiLinkedIn: Thom GuidiLinkedIn: Foster & Motley Website Administrator Wed, 08 Feb 2023 16:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42036 https://www.fosterandmotley.com/insights/2023/02/01/why-are-two-advisors-better-than-one-with-david-nienaber-mba-cpa-cfp-and-ryan-english-mba-cfa-cpa-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42037 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42037&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/02/01/why-are-two-advisors-better-than-one-with-david-nienaber-mba-cpa-cfp-and-ryan-english-mba-cfa-cpa-cfp Sometimes two is better than one, and that's the philosophy at Foster and Motley, where financial planners and investment managers work side by side with you.In this episode, David Nienaber, MBA, CPA, CFP®, and Ryan English, MBA, CFA, CPA, CFP®, discuss how their dual-advisor approach helps ensure their advice truly is personalized to each client's unique circumstances and goals.David and Ryan share more about:How financial planning and investment management are different but complementary professionsThe Power of &Ways the dual-advisor approach benefits the clientAnd moreConnect With David Nienaber and Ryan English:info@fosterandmotley.com 513-561-6640Foster & MotleyDavid NienaberRyan EnglishLinkedIn: David NienaberLinkedIn: Ryan EnglishLinkedIn: Foster & Motley Website Administrator Wed, 01 Feb 2023 16:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42037 https://www.fosterandmotley.com/insights/2023/01/26/2022-year-in-review#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=40750 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=40750&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2023/01/26/2022-year-in-review Dear Clients, Friends, and Valued Partners, As the calendar turned over, “Happy New Year!” was undoubtedly echoed by all investors as we were able to put 2022 behind us and the difficult year for both stock and bond markets. As mentioned in our most recent Market Update, stocks had their worst year since the 2008 financial crisis, and bonds had their largest decline in almost half of a century as inflation spiked to levels not seen since the early 1980s. What’s in store for investors in 2023 is a curious question with no sure answer as inflation has cooled some but remains elevated, corporate earnings growth is beginning to decelerate, and the risk of a recession remains heightened. It may be helpful to remember that the volatility and short-term unpredictability of the markets is the “fee” that is required for the long-term returns that reward those with the patience and persistence to remain invested and focused on a successful financial plan. Better days for the markets will eventually come, and we continue to work with our clients to reap the rewards of patience and persistence as we have for the past 25 years. 2022 was a milestone year for Foster & Motley as we celebrated 25 years of working alongside you, our clients, and continuing our efforts to help you achieve your goals. As I shared at our 25th-anniversary celebration, our mission is to understand the life our clients envision and objectively act to achieve it. Put simply, our mission is your success, however you may define it. We do not take that responsibility lightly. And we want to thank all of you who were able to join us for a wonderful celebration at the Cincinnati Museum Center. It was a great evening spent enjoying everyone’s company, chatting with old friends, and meeting some new faces. And the setting of the historical Union Terminal was appropriate for a trip down memory lane with many clients that have worked with Foster & Motley for decades. Last year continued to be one of growth for our firm as we added talented new members to our team. We are now at 46 employees and counting, all dedicated to providing our growing number of clients with the high level of service that is expected and deserved. We continue to thank you for the introductions to family and friends that may benefit from our services. The trust you place in us for your needs and theirs is our fuel for continued hard work and innovation to provide exceptional value to clients. Thanks to your continued support of our firm, I am pleased to share several recognitions that we received in 2022, both locally and nationally, for our work and a wonderful work environment. We were recognized by the Cincinnati Business Courier as a Best Places to Work finalist for the fifth year in a row. We also had the honor of being included in several rankings by organizations within the financial services industry. Each has its own criteria and requirements, which can be seen by clicking on the following links: FA Magazine’s Annual ranking of RIAs, where Foster & Motley was included in the top 230, and the CNBC FA 100, which ranked Foster & Motley in the top 100 financial advisory firms in the nation. We are proud to be the only Cincinnati-based firm on the CNBC FA 100 list again in 2022 and to be included for the fourth year in a row. We are also very proud to share that last year, Mark Motley was honored with inclusion in the Ohio Business Magazine list of the 500 most influential business leaders in Ohio!  As we journey into 2023 together, please continue to keep us in mind as a resource for all your financial needs as challenges, opportunities, and any changes come about. You can also reference the “Insights” page on our website for our quarterly Market Update, articles on investments and planning topics, quotes and interviews from our advisors, and the latest episodes of our podcast, Wealth & Life, with 36 episodes recorded in our 2nd season. As always, we thank you for the opportunity to serve you and wish you the best in 2023 and beyond! Sincerely,   Zach Horn Managing Partner/President Zach Horn, MBA, CFP®, CMFC® Thu, 26 Jan 2023 16:18:00 GMT f1397696-738c-4295-afcd-943feb885714:40750 https://www.fosterandmotley.com/insights/2023/01/10/a-market-update-for-the-fourth-quarter-of-2022-with-mark-motley-mba-cfa#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42038 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42038&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2023/01/10/a-market-update-for-the-fourth-quarter-of-2022-with-mark-motley-mba-cfa 2022 was a challenging year for investments and for investors. In this episode, Mark Motley, MBA, CFA, shares a 2022 market update and looks ahead at what may unfold in 2023.Mark shares:A 2022 recap including data on returns over the yearLong-term considerations for investorsInsight on the possibility of a recession in the upcoming yearWhat 2023 may hold based on data and historyAnd moreResources:To read the full market update: Click hereConnect With Mark Motley:info@fosterandmotley.com 513-561-6640Foster & MotleyMark MotleyLinkedIn: Mark MotleyLinkedIn: Foster & MotleyAbout Our Guest:Mark Motley knows that a solid organization, and mission, is never built out of a place of scarcity. He also knows that no matter how deep your experience, or broad your connections, nothing replaces relationships and a model built upon serving people. When Mark Motley and Dave Foster founded Foster & Motley in 1996, they brought together their expertise in the areas of financial planning and investments, but mostly, they were united in the idea that clients could be served in a way that is both practical and compassionate. They haven't looked back since. As a young man, Mark got in the trenches serving people when he spent two years on a church mission to Northeastern Brazil. After his experience there, he went on to the University of Kentucky and then to the largest bank in central Kentucky, First Security Bank, where he served as a vice president and trust investment officer for more than six years. During his time there, he obtained the CFA® designation and rose to be the number two investment person in the $1.2 billion trust department. Following that, it was on to Bartlett & Co. in Cincinnati, before the founding of Foster & Motley. Website Administrator Wed, 11 Jan 2023 00:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42038 https://www.fosterandmotley.com/insights/2023/01/04/market-update#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=40732 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=40732&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2023/01/04/market-update “New Year’s Day is the morning of the year. Like the mornings of mere days, it inspires fresh hope, but on an immensely grander scale.” -my friend Chris Flannery, from his fine talk at Hillsdale College, reprinted in “Imprimis,” Dec. 2022 “Having lived 81 years, I’ve learned to trust only dogs and the bond market.” -my friend Bob Faaborg, who claims this isn’t original (but can’t identify the source) Recap and Outlook: 2022 brought the worst year for stocks since the 2008 Financial Crisis. The total returns for the S&P 500 Index and for the “Blended Stock” (global) Index were each -18% for the year, while non-US stocks1 were down 16%. REITs were down 25%. It was the worst year for bonds since 1976 as taxable bonds returned -13%. For a 60/40 blend of US stocks and bonds, it was the worst year since 1936. Inflation soared to a peak of just over 9%, its highest reading in 41 years, and bond yields jumped as the Federal Reserve pushed up short-term interest rates at its fastest pace ever to their highest level since 2007. It was a year most investors were pleased to bid goodbye.  That combination might typically compel some investors to give up on patience with “long-term” investing and give in to the urge to “get out” of the market (wreaking havoc, of course, with long-term financial plans). Fortunately, we’re not seeing that panic among clients now. We’d like to think that’s because we’ve done such a good job communicating, but we know better – it’s mostly that in 2022, client portfolios generally experienced much smaller declines than those of the overall market as a prudent, disciplined investment approach happened to have had an exceptionally good (relative) year. That’s great now. But next year could be entirely different.   Therefore, we’d prefer to take an encouraging tone here, assuring clients better days for markets must surely be at hand. We noted stock valuations were too high a year ago, and we know a correction in high valuations is a long-term positive going forward. We all understand occasional bad years for markets go with the territory of investing, and that bad market years tend to be followed by better years. And possessing that natural optimism that surrounds the opening of every new year, we want to be more positive now. But, while the short-term is always anyone’s guess, we don’t believe we’re “there” yet because of the strong potential for a recession-related earnings dip and, unfortunately, we think it more likely than not that at least the beginning of 2023 may not provide much relief.  Last year, markets were driven by high inflation, soaring interest rates, and surging geopolitical risks. Some expected a recession in 2022 and indeed economic growth stalled in the first half, but the labor market stayed strong, and the economy grew for the year. As we turn into 2023, inflation remains too high (though it may have at least temporarily peaked), while the likelihood of a recession in 2023 has grown. Whether the year brings a recession or not, many expected it to bring at least a decline in corporate earnings. The current consensus, which has been declining, now calls for low single-digit earnings growth for the S&P 500 in 2023. In 2022, stock prices fell as earnings rose, bringing market valuations rapidly down from overvalued heights at the beginning of the year to levels now more in line with long-term norms (by some measures). But stocks don’t seem to have adjusted to discount likely lower earnings ahead yet, so it appears to be too soon to sound the “all clear” for stocks. While stocks may be trading as if a recession may be avoided, the bond market is waiving a big recession flag. Those that expect a recession this year do so in part because the “yield curve” is now meaningfully “inverted.”  This means short-term interest rates (set by the Fed) are significantly higher than long-term interest rates (controlled by the market). This condition of an “inverted yield curve,” is considered a reliable forecast of recession. In fact, it may be more than a forecast: it may simply signal that the Fed has already been tight enough to cause a recession. Here’s the history of the yield curve since 1982 (data from the Federal Reserve, light gray vertical lines indicate recessions, which you can see followed yield curve inversions without fail for the past 40 years): With stock and bond markets now at odds, something has to give. Unfortunately, in such cases, the bond market is generally the more reliable. On the other hand, if a recession is nearly upon us, it will be like none other as the previously mentioned labor markets have remained quite strong. We’ll see. The most unambiguous positive for portfolios we see here is that bonds now offer their best yields since the Fed first imposed zero percent interest rates. Taxable money funds at Schwab now pay 4.27%, and the 10-year Treasury note that paid 1.52% a year ago now yields 3.77%. It took an ugly year in the bond market to get here, but the silver lining is that meaningful income is again being generated from cash and fixed-income securities. Perhaps the best measure of yields in excess of inflation expectations is the yield on US Treasury Inflation Indexed Bonds (TIPs), and here is that yield history since 2009 (again, data from the Federal Reserve): However, significant risks now include: Will the Fed overtighten into a weaker economy? Will we have a more severe recession or something milder or rolling – perhaps not affecting all sectors of the economy at once? Additionally, and importantly, will the Fed read it all perfectly and pull back monetary restraint in the nick of time to avoid recession while still succeeding in bringing down inflation? That may be possible but count us skeptics. The series of Leading Economic Indicators just turned negative. And with the latest data (for November), year-over-year growth in the most common measure of the Money Supply (M2) declined to 0%. This matters because money supply growth in excess of nominal GDP growth tends to boost the economy while slower money supply growth is an economic drag. For context, M2 annual growth was over 20% from July 2020 through May 2021 (peaking at +27.1%!), and since 1982 (the earliest data we have), M2 growth has only been (slightly) lower than 0% for two months (both in 1993). The “bill” for massive over-stimulus in 2020-2021 partly came due as inflation in 2022, and its second payment may well be recession in 2023. Long-term Considerations: We usually don’t dwell here on the very long-term, but conditions have been settling in for a couple of years which appear to be of unusual importance: With Russia’s February invasion of Ukraine, western economies virtually stopped trade with Russia, a significant exporter of oil, natural gas, wheat, and fertilizers. This inflamed disruptions to global trade at a time global supply chains were already reeling from Pandemic-related shifts in demand and from labor shortages related to both aging populations and to increased government transfer payments in several nations. Additionally, China escalated threats against Taiwan all last year. In November, Xi Jinping declared China was preparing for war. On 12/27, China sent 41 warplanes into Taiwanese airspace – its largest provocation in months. The West has been rapidly decoupling China from supply chains all year, with no apparent end in sight.  From the end of WWII until recently, growth in globalization was an economic constant. And from early 2009 through early 2022 (with a mild reprieve in 2017-2018), the other consistent theme was coordinated central bank easing and zero percent short-term interest rates. The connection: globalization reduced inflation which in part allowed central banks to hold interest rates so low for so long.  Now, all that has rapidly changed. The Pandemic, supply chain bottlenecks, Brexit, new tariffs installed by the former administration and kept in place by the current administration, heightened security concerns in response to aggressive actions from Russia and threats from China, aging populations, and subsidies for domestic production have combined to reverse globalization trends and open a race toward onshoring in areas from semiconductor manufacturing to call centers. “Just in time” inventory management now gives way to the more expensive but more secure “just in case.”  Concurrently, global efforts to promote green energy have increased with expected long-term environmental benefits but with certain increases in near-term economic costs.  Collectively, these form a significant shift in global direction with profound implications: increased headwinds to long-term economic growth, and likely pressure on corporate profit margins for years to come, with increased costs and inflation. We don’t know how much lower inflation was historically than it otherwise may have been because of globalization in recent decades, but likely de-globalization into the future may be expected to add to inflation ahead. Moreover, if the foreseeable future includes lower economic growth, higher inflation, and higher interest rates, greater market volatility cannot help but be part of that package. Storied investor Howard Marks of Oaktree Capital Management notes all this too and recently called this combination a “sea change” for markets with likely impacts for years to come2. Wrapping Up: If near-term prospects merit continued caution, and if several tailwinds we’ve enjoyed for some time may now be shifting into persistent longer-term headwinds, where in this “morning of the year” may we find “fresh hope”? We don’t pay much attention to the Nasdaq Composite index because it’s quite Tech-heavy and not very representative. We seldom quote it here. But in 2022, with the Blend Stock index (and the S&P 500) each down 18%, and with our managed stock portfolios down substantially less than that, it may be worth noting that the recent darling Nasdaq Composite Index fell 32.5% in 2022.  It may be cold comfort to assert 2022 could have been much worse for client portfolios. But it’s real. A disciplined, prudent, cash-flow-oriented approach to investing has always been rewarded in the very long run, but it can and has gone out of favor for uncomfortably long stretches at a time. The ten years or so ending in late 2020 was a painful and recent example. But that pendulum turned over two years ago, and client portfolios fared unusually well on a relative basis in 2022. With the prospect of near-term risks and long-term headwinds for markets, this looks like an ideal environment for continued generally positive relative performance for our investment approach. So, through gathering clouds, we’ll gratefully cling to that significant little ray of hope as we turn the page on a new year and wish you a happy, healthy, and prosperous 2023!    1 The MSCI All Country World ex-US Net 2 https://www.oaktreecapital.com/insights/memo/sea-change Mark Motley, MBA, CFA Wed, 04 Jan 2023 21:05:00 GMT f1397696-738c-4295-afcd-943feb885714:40732 https://www.fosterandmotley.com/insights/2022/12/28/a-conversation-about-behavioral-finance-with-nick-roth-cfp-and-ryan-english-mba-cfa-cpa-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42039 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42039&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/12/28/a-conversation-about-behavioral-finance-with-nick-roth-cfp-and-ryan-english-mba-cfa-cpa-cfp Behavioral finance is an intangible topic that has to do with more of an investor's underlying tendencies or biases, not necessarily the evaluation of an investment based on quantitative or qualitative aspects of a company. In this episode, Nick Roth, CFP®, and Ryan English, MBA, CFA, CPA, CFP®, talk about the seven common biases that can influence your investment decisions. Understanding these can help investors understand why utilizing an advisor is beneficial. Nick and Ryan share more about:The meaning of behavioral financeCommon biases to be aware ofHow your biases can result in decisions that negatively affect your futureAnd moreConnect With Nick Roth and Ryan English:info@fosterandmotley.com 513-561-6640Foster & MotleyNick RothRyan EnglishLinkedIn: Nick Roth LinkedIn: Ryan English LinkedIn: Foster & Motley Website Administrator Wed, 28 Dec 2022 16:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42039 https://www.fosterandmotley.com/insights/2022/12/14/a-conversation-about-tax-planning-in-down-markets-with-joe-patterson-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42040 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42040&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/12/14/a-conversation-about-tax-planning-in-down-markets-with-joe-patterson-cfp When the markets are down, there may still be opportunities.In this episode, Joe Patterson, CFP®, discusses a few ways that you can make the most of the current market environment. He touches on tax planning, distribution scheduling and more.  Joe also discusses:Opportunities for implementation of tax loss harvestingWhy this might be a good time to evaluate Roth conversionsMaximizing the value of your family giftingAnd moreConnect With Joe Patterson:info@fosterandmotley.com 513-561-6640Foster & MotleyJoe PattersonLinkedIn: Joe PattersonLinkedIn: Foster & Motley Website Administrator Wed, 14 Dec 2022 16:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42040 https://www.fosterandmotley.com/insights/2022/12/07/ohio-tax-credit-available-to-qualifying-scholarship-granting-organizations#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=40424 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=40424&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2022/12/07/ohio-tax-credit-available-to-qualifying-scholarship-granting-organizations As we approach year-end, many people are reviewing their charitable giving for the year in conjunction with other regular year-end tax planning. Sometimes unique opportunities arise that meet a special need in the community; this is one of those opportunities. Thanks to a bill passed in 2021, you can contribute to an education-related charity and take advantage of a tax credit the State of Ohio is offering. This is essentially an opportunity for you to direct a portion of your Ohio tax liability to a qualifying education-focused charity instead of Ohio’s general fund. As this is fairly new, many charities are just starting to apply for Scholarship Granting Organization (SGO) status, so the charities that qualify are limited (see list of qualifying SGOs below). As background, in 2021, the State of Ohio approved a bill that allows individuals (pass-through entities, as well, but we won’t get into that) to receive an Ohio state income tax credit for contributions to a qualifying SGO.  The credit is available to individual taxpayers up to $750, although any amount can be donated to the SGO. Married couples filing joint income tax returns could, therefore, each give up to $750 for a maximum credit of $1,500. Based on the wording of the statute, we suggest that each spouse contributes separately. This credit is a dollar-for-dollar offset of your Ohio tax liability up to the donation amount, so it is more valuable than a deduction of the same dollar amount. The credit is nonrefundable, so if your Ohio tax liability is $400 and you donate $750, you will not receive the remainder of the $350 as a refund.   FAQ’s What is an SGO?  An SGO is an organization specifically designed to collect donations from donors and then issue scholarships to students with financial needs. They must meet certain criteria established by the State certifying the entity (in this case Ohio, but other states may offer similar programs). How do you receive the tax credit?  You write a check or use a credit card to donate up to $750 to one of the SGOs on the list below. On your Ohio income tax return, you’ll then receive a credit in the amount of your donation unless the donation exceeds your Ohio tax liability. If the donation exceeds your Ohio tax liability, you will not receive any Ohio income tax benefit for that portion of the donation (if you are married, then you’ll receive a credit equal to the amount you and your spouse separately contribute with the same caveat that the credit cannot exceed your tax liability). Is the contribution deductible for Federal tax purposes?  A tax deduction for Federal tax purposes is a possibility under certain conditions.  Please contact your F&M advisor or tax preparer to discuss your specific circumstances. Who has been certified as an SGO?  A list of certified SGOs can be found here: https://charitable.ohioago.gov/Scholarship-Granting-Organization-Certification/List Ryan Pollock, CPA Wed, 07 Dec 2022 20:25:00 GMT f1397696-738c-4295-afcd-943feb885714:40424 https://www.fosterandmotley.com/insights/2022/11/30/a-chat-about-portfolio-income-with-thom-guidi-cfa#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42041 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42041&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/11/30/a-chat-about-portfolio-income-with-thom-guidi-cfa The investments in your portfolio usually grow. At least that's the goal. But those investments may also generate income. So what is portfolio income and what role can it play, especially in retirement?In this episode, Thom Guidi, CFA, discusses the importance of portfolio income and the impact of portfolio income in a down market.Thom shares more about:Where portfolio income comes fromThe impact of portfolio income in a down marketBonds versus stocks incomeThe tax impact on portfolio incomeAnd moreConnect With Thom Guidi:info@fosterandmotley.com 513-561-6640Foster & MotleyThomas GuidiLinkedIn: Thomas GuidiLinkedIn: Foster & Motley Website Administrator Wed, 30 Nov 2022 16:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42041 https://www.fosterandmotley.com/insights/2022/11/22/a-conversation-about-giving-back#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42042 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42042&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/11/22/a-conversation-about-giving-back There never seems to be enough time, until you share it. The same can be true for treasure and talent. The people at Foster and Motley value all of these, and some of those people are here to share how they give back a bit of their time, treasures, and talent.In this episode, you will hear from people across the organization about the non-profits they are involved with, and what that investment means for their life.Members of the Foster & Motley team share about:The non-profits they invest in and the impact it has on their personal and professional lifeThe community outreach programs that these organizations provideThe team's personal connections to these organizationsAnd moreConnect With Foster & Motley:info@fosterandmotley.com 513-561-6640Foster & MotleyLinkedIn: Foster & Motley Website Administrator Tue, 22 Nov 2022 16:00:39 GMT f1397696-738c-4295-afcd-943feb885714:42042 https://www.fosterandmotley.com/insights/2022/11/09/a-conversation-about-charitable-giving-and-taxes-with-emily-diaz-macc-cpa-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42043 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42043&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/11/09/a-conversation-about-charitable-giving-and-taxes-with-emily-diaz-macc-cpa-cfp Charitable giving is good for the soul. But it may also be good for your taxes.In this episode, Emily Diaz, MAcc, CPA, CFP®, will run through the basics and the benefits of charitable giving. Emily shares more about:The most common way to give charitable giftsWhy you only get a deduction if you're itemizing on your tax returnExamples of tax-efficient givingAnd moreResources:GuideStarA Podcast About Wealth and Life: A Conversation About Charitable GivingConnect With Emily Diaz:info@fosterandmotley.com 513-561-6640Foster & MotleyEmily DiazLinkedIn: Emily DiazLinkedIn: Foster & Motley Website Administrator Wed, 09 Nov 2022 16:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42043 https://www.fosterandmotley.com/insights/2022/11/02/a-conversation-about-interest-rates-with-david-nienaber-mba-cpa-cfp-and-rachel-rasmussen-mba-cfa-cdfa#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42044 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42044&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/11/02/a-conversation-about-interest-rates-with-david-nienaber-mba-cpa-cfp-and-rachel-rasmussen-mba-cfa-cdfa We are in a period of significant change with interest rates and it's happened in a period of about six months. In this episode, David Nienaber, MBA, CPA, CFP®, and Rachel Rasmussen, MBA, CFA, CDFA®, talk about how inflation is impacting many areas of people's finances.  David and Rachel share more about:How inflation impacts the decision to stay in your home or to moveHow people have been dealing with higher borrowing costsWhy it's time to re-evaluate your cashHow interest rates can put pressure on stock prices And moreResources:A Chat About The Yield Curve with Ryan English, CFA, CPA, CFP® and Sarah Conwell, MFE – Foster & Motley Connect With David Nienaber and Rachel Rasmussen:info@fosterandmotley.com 513-561-6640Foster & MotleyRachel RasmussenDavid NienaberLinkedIn: Rachel RasmussenLinkedIn: David NienaberLinkedIn: Foster & Motley Website Administrator Wed, 02 Nov 2022 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42044 https://www.fosterandmotley.com/insights/2022/10/26/a-conversation-about-the-history-of-foster-motley-with-dave-foster-and-mark-motley#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42045 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42045&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/10/26/a-conversation-about-the-history-of-foster-motley-with-dave-foster-and-mark-motley Peanut butter and jelly, Laverne and Shirley, Foster and Motley. All of these iconic pairs have changed the game in their own right.For more than a year, the financial planners and investment managers at Foster and Motley have shared their knowledge and insights on this podcast. But how did the firm come to be?In this episode, Dave Foster and Mark Motley share how they started their careers in finance and built a successful business relationship with each other. Dave and Mark walk down memory lane to share insight into how they have run their business, maintaining its success through the years. Dave and Mark share more about:The history of their relationship, including how Foster & Motley was formedWhy company growth has never been a driving goal for Dave and MarkHow they've built their team to meet the needs of clientsHistoric shifts and challenges in the market that Foster & Motley have faced head-onAnd moreResources:A Podcast about Wealth and LifeConnect With Mark Motley & David Foster:info@fosterandmotley.com 513-561-6640Foster & MotleyLinkedIn: Mark MotleyLinkedIn: Foster & Motley Website Administrator Wed, 26 Oct 2022 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42045 https://www.fosterandmotley.com/insights/2022/10/21/krogers-major-milestone-thom-guidi-quoted-in-the-cincinnati-business-courier#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=40339 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=40339&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2022/10/21/krogers-major-milestone-thom-guidi-quoted-in-the-cincinnati-business-courier Thom Guidi, CFA, recently spoke with Steve Watkins of the Cincinnati Business Courier about how the potential merger between Kroger Co. and Albertsons Cos. Below are excerpts from the article: Kroger’s ever-subdued Rodney McMullen calls the Cincinnati grocer’s $25 billion plan to buy rival Albertsons a “major milestone,” but that still might be one of the biggest understatements the CEO has made in his nine years at the helm… “A national footprint may be exactly what they need to compete with Walmart in the future,” said Thom Guidi, investment manager at Kenwood-based investment advisory firm Foster & Motley. “They’re not thinking just a couple years ahead. They’re thinking far ahead about how you compete with the behemoths.” … It’s also an opportunity to greatly expand Kroger’s store brands, which it calls Our Brands. Kroger has emphasized that high-margin business for years and generates $28 billion in annual sales in that sector. Albertsons’ in-house brands are also robust. The combination would put stores brands at $43 billion in sales a year, making Kroger 2.0 one of the largest consumer product companies. “I think they’re better at that than just about anybody,” Guidi said. Kroger has been a leader in gathering and utilizing data on its customers to personalize offers and market digital information to others. “I’m pretty sure Kroger knows more about me than my wife,” Guidi said. “They know what we buy and how often we buy it.” Click here to read the full article (a subscription may be required). Betsy Wolking, MSM Fri, 21 Oct 2022 12:50:00 GMT f1397696-738c-4295-afcd-943feb885714:40339 https://www.fosterandmotley.com/insights/2022/10/19/a-conversation-about-financial-independence-analysis-with-thom-guidi-cfa-and-luke-hail-mba-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42046 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42046&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/10/19/a-conversation-about-financial-independence-analysis-with-thom-guidi-cfa-and-luke-hail-mba-cfp True financial independence is when you're working because you want to and not because you have to. Understanding what you have and what your goals are is the first step to becoming financially independent. In this episode, Thom Guidi, CFA, and Luke Hail, MBA, CFP®, discuss what it means to be financially independent and provide you with four actionable steps to help you move closer to your goal of financial independence.Thom and Luke share more about:What makes you financially independentHow to know when you are financially independentHow to maintain your financial independenceAnd moreConnect With Thom Guidi and Luke Hailinfo@fosterandmotley.com 513-561-6640Foster & MotleyThom GuidiLuke HailLinkedIn: Thom GuidiLinkedIn: Luke Hail LinkedIn: Foster & Motley Website Administrator Wed, 19 Oct 2022 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42046 https://www.fosterandmotley.com/insights/2022/10/14/potential-kroger-merger-ryan-english-quoted-in-the-cincinnati-business-courier#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=40335 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=40335&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2022/10/14/potential-kroger-merger-ryan-english-quoted-in-the-cincinnati-business-courier Ryan English, MBA, CFA, CPA, CFP®, recently spoke with Steve Watkins of the Cincinnati Business Courier about how the potential merger between Kroger Co. and Albertsons Cos. Below is an excerpt from the article: The deal could work well from an operations standpoint, Ryan English, investment manager and shareholder at Kenwood-based investment advisory firm Foster & Motley, told me. “Achieving more scale in a time when prices and costs are going up would certainly be beneficial for Kroger,” English said. “As grocery moves more towards delivery, the physical presence of conveniently located stores might become less important over time. The efficiency and scale of grocery delivery and end prices to the consumer will be bigger factors.” A merger would provide Kroger-Albertsons with more pricing power. But English cautions even a merged company would still be competing with Amazon and Walmart nationally when it comes to scale and pricing power. Click here to read the full article (a subscription may be required). J. Ryan English, CFA, CPA, CFP® Fri, 14 Oct 2022 18:18:00 GMT f1397696-738c-4295-afcd-943feb885714:40335 https://www.fosterandmotley.com/insights/2022/10/07/a-market-update-for-the-third-quarter-with-mark-motley-cfa#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42047 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42047&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/10/07/a-market-update-for-the-third-quarter-with-mark-motley-cfa In the third quarter of 2022 the bear market resumed, making this the longest lasting decline since 2009. Since our last update, we saw the stock index go down by 5% affecting everything from investing to buying and selling property. In this episode, Mark Motley discusses the progression of the stock market since the second quarter update. He dives into how mortgage rates have been affected by this change along with many other impacts in the market. Mark Motley shares:How entering a bear market has affected the stock marketThe current inflation level and how you can adapt to this riseHow the war between Russia and Ukraine has affected our markets along with the change in imports and exportsAnd moreConnect With Mark Motley:info@fosterandmotley.com 513-561-6640Foster & MotleyLinkedIn: Mark MotleyLinkedIn: Foster & Motley Website Administrator Sat, 08 Oct 2022 02:14:00 GMT f1397696-738c-4295-afcd-943feb885714:42047 https://www.fosterandmotley.com/insights/2022/10/04/cnbc-fa-100-includes-foster-motley-for-fourth-year-in-a-row#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=40314 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=40314&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2022/10/04/cnbc-fa-100-includes-foster-motley-for-fourth-year-in-a-row We are proud to share that Foster & Motley has been named to the 2022 CNBC Financial Advisor 100 list of top financial advisory firms in the U.S. It is the fourth consecutive year the firm has earned a spot in the annual ranking. Foster & Motley is the only Cincinnati firm on the list and the highest-ranked firm in Ohio. At 42nd in the ranking, Foster & Motley is in the top 5% of RIA firms that met CNBC’s proprietary criteria. According to CNBC’s article on how the ranking was determined, “This analysis started with an initial list of 39,818 RIA firms from the Securities and Exchange Commission regulatory database. Through a process, the list was eventually cut to 904 RIAs, with those firms meeting CNBC’s proprietary criteria.”  The 2022 CNBC FA 100 was selected using a proprietary methodology developed by CNBC in partnership with data provider AccuPoint Solutions. CNBC and AccuPoint Solutions applied the weighting for each category to further refine and rank the firms. The rankings consider many factors such as assets under management (AUM), years in business, number of certified financial planners, and the number of employees, among others. The full list and methodology can be found at CNBC.com/FA100. “Our focus is on delivering excellent service and proving sound counsel to our clients,” said Zach Horn, Managing Partner at Foster & Motley. “This honor validates our client-first approach and speaks to the incredible team we’ve built.” For 25 years, Foster & Motley has offered clients customized, fee-only financial planning and investment management.  As fiduciaries, their independent and objective advice always puts the client’s interests first. The advisors at Foster & Motley strive to integrate all components of their clients’ lives into one big, clear picture so they can live life with confidence. Foster & Motley paid no fees to be included in this ranking.  See Foster & Motley's disclosure for additional details on CNBC and AccuPoint Solutions’ selection criteria.  Betsy Wolking, MSM Tue, 04 Oct 2022 14:46:00 GMT f1397696-738c-4295-afcd-943feb885714:40314 https://www.fosterandmotley.com/insights/2022/10/03/market-update#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=40312 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=40312&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2022/10/03/market-update The bear market for stocks resumed in the third quarter and recently extended market lows.  By one measure - the time the stock market has remained below its 200-day average - this has been the longest-lasting stock decline since 2009.  In our last update, we did not paint a rosy picture.  Since the end of the second quarter, stock indexes declined about 5% more while bonds are down only slightly less.  Aside from slight improvements in stock valuations and significantly higher bond yields, the economic picture is little changed: inflation remains high, economic growth still appears to sputter near a stall, and the Federal Reserve continues to tighten.  In other words, in the last quarter, there has been a little more discounting but very little dissipation of risk. In the latest inflation report, CPI annual growth was 8.3% - slightly moderated from its recent peak of 9.1%.  More troubling was that “core inflation” which excludes the more volatile energy and food components, rose 6.3% in the past year.  Some commodity prices have softened recently, and with 30-year mortgage rates well over 6%, the Case-Shiller home price index fell 0.8% in the most recent month, its largest monthly decline in a decade.  Flat or declining home prices will eventually exert downward pressure on inflation, but home price impact on the CPI’s “imputed rent” component takes time to work through the index.  In the meantime, the Federal Reserve seeks to reduce aggregate demand with higher interest rates, and it recently signaled higher rates ahead than markets previously anticipated.  This rapid rise in US bond rates has attracted foreign investment, driving up the value of the dollar against foreign currencies.  Low interest rates weren’t the only cause of this highest bout of inflation in 40 years, so high interest rates alone seem unlikely to be the sole solution.  Still, the Fed is likely to continue to raise rates at least until they are higher than “core inflation” and then to hold them there until either inflation moderates or some financial crisis arises. The Fed is also in “quantitative tightening” mode, which means it is shrinking its holdings of bonds (its “balance sheet”) and ultimately, the money supply.  This started in a small way in March but began in earnest last month.  As an exploding money supply in 2020 associated with COVID stimulus spending preceded this inflation, a shrinking money supply should eventually reign it in, but with “long and irregular” lags.  The full effect of this may not be evident until late next year. Perhaps the largest change in the risk outlook in the past quarter is the heightened risk of a financial “accident” somewhere.  Each time interest rates have risen this rapidly or currencies have fallen this quickly against the dollar, some sort of financial stress appeared that caused market disruptions.  The Fed has now raised its benchmark interest rate faster than at any other time in modern financial history (faster than each of the last five Fed tightening cycles going back to the late 1980s).  This time may be different and a financial crisis of some sort may be averted, but even as we can’t predict this, we don’t see why that would be expected. Beyond the Fed and purely economic developments, shifts in geopolitics have also raised risks.  Ukraine’s recent successes in pushing back Russian aggression are welcome in many ways, but they don’t make the world safer as a failing tyrant with nuclear weapons is painted into a tighter corner and appears to see no options other than escalation.  On 9/21, Putin said, “Russia will use all the instruments at its disposal to counter a threat against its territorial integrity – this is not a bluff”, and on 9/29, he declared portions of Ukraine to be a part of Russia through “annexation”.  In Asia, China recently escalated threatening words and actions against Taiwan as our administration publicly broke its policy of “strategic ambiguity” and pledged we would defend the island.  After Xi’s expected appointment for life this month, might he consider he has a freer hand? Farther ahead, bond guru Jeffrey Gundlach recently posited that since the Fed intended to increase inflation a little and overshot a lot, why should we not expect it to eventually overshoot on the downside as well and eventually reduce inflation not just to 2%, but perhaps to -2% or so – a condition that only occurs during severe economic stress.  As always, markets are keenly focused on what the Fed does, and the Fed is keenly focused on inflation.  Recent Fed comments imply it expects inflation to significantly moderate next year.  We hope that’s right, but we note that when inflation last exceeded 5% in the 1990s, it took several years to get it down to the Fed’s target. Moreover, globalization helped suppress inflation for years but going forward, a decline in globalization is increasingly likely, which may elevate inflation.  It’s also probable an accelerated move away from cheap fossil fuels to other energy sources may exacerbate inflation.  What may be good for the environment may be more costly for the economy. Prior to these recent declines, markets were quite expensive.  Much of that over-valuation has since been corrected but markets do not yet appear to account for lower earnings associated with a likely recession.  We may or may not be in a recession now, and if so, it’s an odd one with a very tight labor market.  But risks of a recession ahead have grown and if we get one, it seems likely markets may have more downside, though, of course, we can’t know.  And particularly uncertain is how severe the next recession may be. Pulling all this together, even though the return of the US stock market as measured by the Russell 3000 Index is nearly -25% this year so far, with foreign stocks a bit worse, and the return of the most widely followed bond index being -14.6% this year to date, it appears unlikely that markets represent unusually good opportunities yet.  Of course, we are now one quarter closer to the bottom, whenever it may be than we were three months ago (if that hasn’t already occurred).  This current state of market malaise and economic headwinds will not be the permanent state of affairs and will certainly, eventually pass.  Until then, we’re pleased that market risk hedges have been performing well, our short maturities and extraordinary diversification in bond portfolios have greatly helped, and the stock market has made a long overdue shift to favoring value stocks, and each of these have cushioned managed portfolios in this difficult environment.  Portfolio income has held up well this year and, in many cases, has grown.  And for the first time in years, as bonds mature, we are increasingly able to replace them with bonds that pay more income rather than less.  After so many years of zero money fund interest rates, very low bond yields, and expensive stocks, the prospect of higher future returns for all asset classes after current inflation and economic storms pass is something we will all welcome.  Mark Motley, MBA, CFA Mon, 03 Oct 2022 19:46:00 GMT f1397696-738c-4295-afcd-943feb885714:40312 https://www.fosterandmotley.com/insights/2022/09/28/a-conversation-about-senior-care-with-tony-luckhardt-mba-cfp-crpc-and-amy-thomas-cpa#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42048 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42048&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/09/28/a-conversation-about-senior-care-with-tony-luckhardt-mba-cfp-crpc-and-amy-thomas-cpa There comes a time in your life when you may not welcome being another year older. But if you plan ahead, it can make the difference between a senior lifestyle you choose and the one that someone else chooses for you.In this episode, Tony Luckhardt, MBA, CFP®, CRPC®, and Amy Thomas, CPA, discuss some of  the tough decisions that come with senior care. They also provide some advice on how to evaluate the options.Tony and Amy share more about:What senior care meansWhy thinking about it before you need it makes the most senseQuestions to ask as you consider different senior care facilitiesWays to help you prepare for a lifestyle changeAnd moreConnect With Tony Luckhardt and Amy Thomas:info@fosterandmotley.com 513-561-6640Foster & MotleyTony LuckhardtAmy ThomasLinkedIn: Tony LuckhardtLinkedIn: Amy ThomasLinkedIn: Foster & Motley Website Administrator Wed, 28 Sep 2022 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42048 https://www.fosterandmotley.com/insights/2022/09/27/ohio-business-magazines-ohio-500-includes-mark-motley#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=40299 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=40299&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2022/09/27/ohio-business-magazines-ohio-500-includes-mark-motley We are proud to share that Mark Motley, MBA, CFA, was included in Ohio Business Magazine’s Ohio 500 inaugural list. Mark is a co-founder of the firm and serves as a co-chief investment officer and investment manager. According to Ohio Business Magazine editors, “this feature is more than a list of people—it’s a look at what leadership means in the state of Ohio.”   Ohio Business Magazine asked readers to fill out an online survey, spoke with their partners, reached out to community leaders, and did their own research to create the 2022 Ohio 500. Being recognized does not imply any correlation to the quality of service. Foster & Motley paid no fees to be included and had no influence on the criteria for this recognition. View the full list of honorees here. Congratulations, Mark! Mark Motley, MBA, CFA Tue, 27 Sep 2022 14:49:00 GMT f1397696-738c-4295-afcd-943feb885714:40299 https://www.fosterandmotley.com/insights/2022/09/21/a-conversation-about-executor-expectations-with-zach-binzer-cfp-and-zach-horn-mba-cfp-cmfc#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42049 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42049&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/09/21/a-conversation-about-executor-expectations-with-zach-binzer-cfp-and-zach-horn-mba-cfp-cmfc Losing a loved one is an emotional time. One way you can make dealing with it a little easier for your loved ones, is to have a strong estate plan and family letter in place. Your appointed executor is there to make your final wishes come to pass, but they need to know what you wanted.In this episode, Zach Binzer, CFP® and Zach Horn, MBA, CFP®, CMFC®, discuss this important role of being an executor.Zach and Zach share more about:What being an executor entailsHow both parties can prepare for this roleWhat a executor is expected to do at the time of deathAnd moreConnect With Zach Binzer and Zach Horn:info@fosterandmotley.com 513-561-6640Foster & MotleyZach BinzerZach HornLinkedIn: Zach BinzerLinkedIn: Zach HornLinkedIn: Foster & Motley Website Administrator Wed, 21 Sep 2022 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42049 https://www.fosterandmotley.com/insights/2022/09/14/a-conversation-about-buying-or-renting-a-second-home-with-joe-patterson-cfp-and-rachel-rasmussen-mba-cfa-cdfa#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42050 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42050&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/09/14/a-conversation-about-buying-or-renting-a-second-home-with-joe-patterson-cfp-and-rachel-rasmussen-mba-cfa-cdfa Maybe it's your goal to own a lake house or a second home. But have you thought about what buying versus renting might look like for your scenario?In this episode, Joe Patterson, CFP® and Rachel Rasmussen, MBA, CFA, CDFA® discuss the pros and cons of owning versus renting and what might make sense for your unique situation. Joe and Rachel share more about:What to consider when owning a second homeConsiderations for renting a second propertyHow research can help you determine if you should buy or rent a homeAnd moreConnect With Joe Patterson and Rachel Rasmussen:info@fosterandmotley.com 513-561-6640Foster & MotleyJoe PattersonRachel RasmussenLinkedIn: Joe PattersonLinkedIn: Rachel RasmussenLinkedIn: Foster & Motley Website Administrator Wed, 14 Sep 2022 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42050 https://www.fosterandmotley.com/insights/2022/09/01/walmarts-grocery-share-gains-impact-kroger-ryan-english-quoted-in-the-cincinnati-business-courier#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=40266 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=40266&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2022/09/01/walmarts-grocery-share-gains-impact-kroger-ryan-english-quoted-in-the-cincinnati-business-courier Ryan English, MBA, CFA, CPA, CFP®, recently spoke with Steve Watkins of the Cincinnati Business Courier about how Kroger is being impacted by Walmart’s grocery share gains. Below is an excerpt from the article: The inflationary environment is helping Walmart make inroads, Ryan English, investment manager and shareholder at Kenwood-based investment advisory firm Foster & Motley, told me. “Walmart has built its reputation on low prices and consumers could be looking to Walmart as inflation becomes more visible in their shopping carts,” English said. “They also continue to improve their Walmart+ membership offering, recently adding Paramount+ to it in order to more directly compete with Amazon Prime. However, the jury is still out whether this is at the expense of Kroger. Kroger has historically shown fairly stable market share and is heavily promoting their Boost membership offering too.” Click here to read the full article (a subscription may be required). J. Ryan English, CFA, CPA, CFP® Thu, 01 Sep 2022 16:21:00 GMT f1397696-738c-4295-afcd-943feb885714:40266 https://www.fosterandmotley.com/insights/2022/08/31/a-chat-about-benchmarks-with-thom-guidi-cfa#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42051 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42051&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/08/31/a-chat-about-benchmarks-with-thom-guidi-cfa So you think your investments are doing well, or perhaps you think they are performing poorly. But compared to what?In this episode, Thom Guidi, CFA, explains what a benchmark is and shares some examples.  He also talks about why it's important  to review your performance compared to benchmarks.Thom shares more about:Why benchmarks are importantWhat types of benchmarks Foster & Motley uses and whyFoster & Motley's approach to performance presentationsAnd moreResources:A Podcast about Wealth and LifeFidelity.caInvestor.vanguard.com Schwab.com Connect With Thom Guidi:info@fosterandmotley.com 513-561-6640Foster & MotleyLinkedIn: Thom Guidi LinkedIn: Foster & Motley Website Administrator Wed, 31 Aug 2022 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42051 https://www.fosterandmotley.com/insights/2022/08/17/how-to-change-financial-advisors#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=40254 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=40254&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2022/08/17/how-to-change-financial-advisors Updated on February 17, 2026 Is your financial advisor retiring? Are you unhappy with your current financial advisor? If you answered yes to either of these questions, it might be time for a change. Don’t let the burden of unknowns paralyze your decision-making! The relationship between clients and financial advisors is built on trust, so switching advisors can be a delicate process. We’ve rounded up some tips to help you navigate this change with a smooth, streamlined transition. If you’re ready to learn how to change financial advisors, keep the following things in mind: Take Financial Inventory: When you change financial advisors, think of it as an opportunity to gain a fresh start with how your finances are being handled. Working with a new advisor to review your assets, accounts, and overall financial plan can help you evaluate where your finances currently are and where you’d like to take them. Thinking through questions such as “Does my current financial plan align with my long-term goals?” and “What type of advisor is the best fit for my needs?” will help you as you take the next steps in changing financial advisors. Patience is Key:  Changing financial advisors is not an overnight process. Your new advisor must ensure that your assets are accounted for in the transition, which can take some time to process. Keep in mind that security and safeguarding measures are taken as a precaution to keep your assets protected during the transition. Different custodians and firms have different processes, but your new financial advisor should keep you informed about your unique transition. Good communication is essential for a seamless experience. Be Mindful of Tax Implications: If assets are transferred appropriately and with tax considerations in mind, there should be minimal to no tax implications of selling stocks during the transition. Be sure your new advisor is aware of the types of accounts you own and can make recommendations specific to your unique circumstances. Consider the Use of AI: Understanding how your new advisor is utilizing AI and its impact on their work is important. Ask how they are incorporating emerging digital tools — from using AI to assist with the investment process to automated financial planning workflows — to elevate your experience and their efficiency. How advisors strategically use AI and other new technologies to better serve clients can help you determine whether they are a good fit for your needs. Once you’ve made the decision to transfer your assets, it’s time to find a new financial advisor. Working with the right wealth management team allows you to live your best, most meaningful life now and in the future. When changing financial advisors, there are many things to consider to ensure they are the best fit for your unique circumstances. That’s why we’ve compiled a list of the factors to evaluate when choosing a wealth management partner. Here are some key traits to look for when finding the right match for you: Credentials. Having a dedicated credentialed advisor, or team of advisors, allows you to build a foundation of trust as you navigate the financial terrain of your life. Your team should hold the highest designations in the field. Look for advisors who have earned their CFA®, CPA, and/or CFP® credentials. Fee Structure. Look for a fee-only firm that upholds the fiduciary standard. Independent, objective, client-first advice is critical. Approach. A custom approach can make a big difference for your future. Hire a team that creates a road map unique to your individual circumstances. You should also choose an advisor who can meet with you on your terms — when and how you prefer to connect. Preparedness. A strong wealth management partner will anticipate your financial needs and adapt the plan as needed. We hope these tips on changing financial advisors help you feel prepared to make the transition. If you’re ready to begin the process, Foster & Motley provides a comprehensive, cohesive approach to wealth management and would love to discuss your financial needs and goals today. Contact us today to schedule a consultation!  Wed, 17 Aug 2022 20:04:00 GMT f1397696-738c-4295-afcd-943feb885714:40254 https://www.fosterandmotley.com/insights/2022/08/17/a-chat-about-529-accounts-and-college-planning-with-nick-roth-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42052 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42052&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/08/17/a-chat-about-529-accounts-and-college-planning-with-nick-roth-cfp Have you considered opening up a 529 account? There may be more to consider than you realize! In this episode, Nick Roth, CFP®, will help you understand some of the general rules and benefits behind 529 accounts. He also shares the impact that 529 accounts can have on an individual's eligibility for financial aid.Nick shares more about:Explains what a 529 account isHow you can benefit from a 529 account The rules and limitations of 529 accountsAnd moreResources:Saving For CollegeConnect With Nick Roth:info@fosterandmotley.com 513-561-6640Foster & MotleyLinkedIn: Nick RothLinkedIn: Foster & Motley Website Administrator Wed, 17 Aug 2022 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42052 https://www.fosterandmotley.com/insights/2022/08/08/foster-motley-ranked-among-top-rias-by-fa-magazine#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=40258 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=40258&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2022/08/08/foster-motley-ranked-among-top-rias-by-fa-magazine We are excited to announce Foster & Motley was ranked in the top 230 firms in the nation in Financial Advisor Magazine’s 2022 Annual RIA Ranking! Click here for a downloadable version of the full RIA Ranking by FA Magazine. To view a digital copy of the magazine, click here. Financial Advisor (FA) magazine invites Registered Investment Advisors annually, to complete a survey for this ranking. The specific criteria for the ranking are not included in their summary article. Foster & Motley completed a survey to be considered for this ranking and pays no fees to be included. According to FA Magazine, 617 firms were ranked and are listed by assets under management. FA magazine independently sets its criteria, and Foster & Motley has no influence on the criteria or the ranking.   Betsy Wolking, MSM Mon, 08 Aug 2022 13:05:00 GMT f1397696-738c-4295-afcd-943feb885714:40258 https://www.fosterandmotley.com/insights/2022/08/03/a-chat-about-cash-flow-with-luke-hail-mba-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42053 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42053&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/08/03/a-chat-about-cash-flow-with-luke-hail-mba-cfp Cash flow is what comes and goes out of your household, and defines what you are doing in the world in many ways. In this episode, Luke Hail, MBA, CFP®, will help give you a clear understanding of why understanding your cash flow matters. Luke shares more about:The concept of cash flowHow to evaluate your cash flowThree stages to financial freedomAnd moreConnect With Luke Hail, MBA, CFP®:info@fosterandmotley.com 513-561-6640Foster & MotleyLinkedIn: Luke HailLinkedIn: Foster & Motley Website Administrator Wed, 03 Aug 2022 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42053 https://www.fosterandmotley.com/insights/2022/07/28/foster-motley-finalist-for-2022-best-places-to-work#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=40267 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=40267&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2022/07/28/foster-motley-finalist-for-2022-best-places-to-work For the fifth year in a row, Foster & Motley was named as a finalist for the Business Courier’s Best Places to Work! We are proud to say that in 2020, we were a winner in the 25-49 employees category. We work hard to provide an excellent client experience, and firmly believe we achieve this by having a strong team of employees that enjoy their work and the culture of our firm. We value each one of our team members and realize that every employee contributes to the overall success of our firm. Below is an excerpt from the article by Nikki Kingery on the Cincinnati Business Courier’s page: “The Business Courier has named the finalists for its 2022 Best Places to Work awards, an annual program celebrating organizations in Greater Cincinnati that rate high in workforce satisfaction. To determine the list, employees at each of the businesses were surveyed and their responses were ranked by an independent third party, Quantum Workplace. Companies were then scored in areas such as senior leadership, team effectiveness, work recognition and benefits.” Read the full article here: Best Places to Work – Cincinnati Business Courier (subscription may be required) Betsy Wolking, MSM Thu, 28 Jul 2022 16:42:00 GMT f1397696-738c-4295-afcd-943feb885714:40267 https://www.fosterandmotley.com/insights/2022/07/27/a-chat-about-the-yield-curve-with-ryan-english-cfa-cpa-cfp-and-sarah-conwell-mfe#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42054 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42054&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/07/27/a-chat-about-the-yield-curve-with-ryan-english-cfa-cpa-cfp-and-sarah-conwell-mfe As an investor, it is helpful to understand the yield curve. Its movements are tied to economic growth, monetary policy, and inflation which impact investment portfolios.  In this episode, Ryan English, CFA, CPA, CFP®, talks with Sarah Conwell, MFE, to explain the significance of two separate points on the curve and the ways investors interpret its shape, slopes, and steepness during economic cycles.Sarah shares more about:The concept of a yield curveWhat the yield curve can tell youThe shape of the yield curve during economic cyclesAnd moreResources:A Podcast About Wealth and Life: A Conversation About Value Investing with Thom Guidi, CFA and Mark Motley, CFAConnect With Sarah Conwell:LinkedIn: Sarah ConwellConnect With Ryan English:info@fosterandmotley.com 513-561-6640Foster & MotleyLinkedIn: Ryan EnglishLinkedIn: Foster & MotleyAbout Our Guest:As a fixed income investment professional, Sarah possesses over nine years of experience, and her greatest skills lie in investment research, portfolio management, and macroeconomic analysis. Sarah is a dedicated investment professional with expertise in fixed income securities, financial reporting and analysis, risk mitigation, statistical analysis, financial systems implementation, and revenue generation for overall company growth. Also, she is known for thorough, accurate, and profitable securities recommendations based on analytical processes and data-driven decision-making, and she possesses strong market knowledge in multiple sectors. Additionally, she is consistently relied upon to spearhead projects requiring analysis and collaborative problem solving while working in a fast-paced environment. Website Administrator Wed, 27 Jul 2022 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42054 https://www.fosterandmotley.com/insights/2022/07/22/foster-motley-included-in-cbcs-book-of-lists-top-25-money-management-firms#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=40257 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=40257&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2022/07/22/foster-motley-included-in-cbcs-book-of-lists-top-25-money-management-firms Every year the Cincinnati Business Courier surveys companies across the region and compiles data necessary to rank companies for the Book of Lists.  Foster & Motley was included in the Top 25 Money Management Firms list again for 2022, moving up three spots from last year's ranking. Summary of ranking methodology: The rankings are based on each firm’s Assets Under Management. Foster & Motley pays no fees to be included in the ranking. It is not the intent of the Cincinnati Business Courier to endorse or list participants or imply that rank has any correlation to the quality of service. For a detailed list of firms ranked, please click here. Betsy Wolking, MSM Fri, 22 Jul 2022 12:51:00 GMT f1397696-738c-4295-afcd-943feb885714:40257 https://www.fosterandmotley.com/insights/2022/07/20/a-chat-about-planning-for-the-unexpected-with-tony-luckhardt-mba-cfp-crpc#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42055 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42055&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/07/20/a-chat-about-planning-for-the-unexpected-with-tony-luckhardt-mba-cfp-crpc Insurance is not just for when you pass away. It's to protect against catastrophic life events.In this episode, Tony Luckhardt, MBA, CFP, CRPC®, discusses the many types of insurance and how some of them work together.Tony shares more about:The types of insuranceWhen you need insuranceAnd moreConnect With Tony Luckhardt:info@fosterandmotley.com 513-561-6640Foster & MotleyLinkedIn: Tony LuckhardtLinkedIn: Foster & Motley Website Administrator Wed, 20 Jul 2022 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42055 https://www.fosterandmotley.com/insights/2022/07/08/a-market-update-for-the-second-quarter-of-2022-with-mark-motley-cfa#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42056 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42056&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/07/08/a-market-update-for-the-second-quarter-of-2022-with-mark-motley-cfa The first half of 2022 was the worst first half of a year for stocks in over 50 years, with the fear that inflation was right around the corner. In this episode, Mark Motley, CFA, shares a brief market update from the second quarter of the year, outlining the impact of inflation, the prospect of a recession, and what all these key changes mean for you.Mark shares more about:Why the federal reserve changed its posture from accommodating to restrictiveA glimpse into the effects of inflationWhat market changes you are expected to see this month To read this market update: Click HerePrior Updates as mentioned in the episode:1/4/2021 Market UpdateAnother near-term concern is the possibility of rising inflation. The money supply has risen nearly 25% over the past year … that's a significant concern as we move later into 2021. It's well known that the Federal Reserve has committed to an accommodative monetary policy for an extended period. We think that characterization is inaccurate. Instead, we think the Fed intends to remain in an accommodative mode essentially forever to the extent tame inflation allows, and that it will do so until inflation increases … the reason higher inflation is likely to have severe consequences for markets is that it would be the catalyst to change the Fed's posture. 2/1/2021 Market UpdateInflation:  We've written of this danger before … we note the most common measure of the money supply has expanded nearly 27% in the past twelve months … [we] are entirely confident a higher inflation scenario, should it occur, would greatly upset markets since it would force the Federal Reserve to reverse its easy money policy.4/2/2021 Market UpdateMany think the … $1.9T stimulus bill may be over-stimulus, eventually leading to inflation and a need for the Fed to tighten.  And close on the heels of the last give-away comes talk of much, much more and perhaps too soon, as some are beginning to fear this porridge may too soon become “too hot”.   If a rude discovery is made that free money isn't free, that may not sit well with either the economy or markets. 7/1/2021 Market UpdateThat inflation turned up significantly was no surprise.  The question is whether higher inflation will be transitory or persistent.  … We'll have to see.  What we do know is this is the most urgent unanswered investment question of the hour … The reason is any moderation in accommodative Federal Reserve policy will be dictated by future inflation, Fed policy in turn defines liquidity, and liquidity drives markets …10/4/2021 Market UpdateIf higher inflation is not transient, the Fed will be unable to remain accommodative and markets would likely retrench.  We don't know how this will play out, but we recognize danger to markets from inflation that may be stickier than markets currently expect, and this may not be sufficiently appreciated … … conditions remain positive for markets, but it's a fragile positive, and inflation appears to be the thing with the best chance of upsetting it.  The world is awash in created money that has bid up stock and home prices.  That's nice, of course, but underlying, intrinsic values have not risen as much and inflation may test that, particularly if it forces the Fed to a tight money mode. 1/3/2022 Market UpdateEconomic growth is booming.  However, inflation remains a looming question, and the Federal Reserve, which had formerly labeled the price surge “transitory,” recently removed that word from its communication, implying more concern about inflation as a longer-lasting problem.  “Owner's equivalent rent” represents nearly a fourth of the Consumer Price Index (CPI) and the … lags built into the convoluted calculation of this part of consumer inflation mean home price jumps which have already occurred are likely to boost inflation readings for several months to come. Connect With Mark Motley:info@fosterandmotley.com Foster & MotleyLinkedIn: Mark MotleyLinkedIn: Foster & Motley Website Administrator Fri, 08 Jul 2022 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42056 https://www.fosterandmotley.com/insights/2022/07/05/market-update#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=40177 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=40177&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2022/07/05/market-update “The way prices are rising, the good old days are last week.” -Les Dawson (comedian and author) The first half of 2022 was the worst first half of a year for stocks in over 50 years. The Russell 3000 Index returned -21%, the S&P 500 -20% (and the Tech-heavy Nasdaq Composite Index was off 30%). Taxable bonds were down more than 10%. International stocks fared just a little better than US stocks, and the performance of smaller-company stocks was worse than that of large stocks. These declines are mostly a function of assets having been too expensive at the end of last year coupled with the return of serious inflation after a long absence. Without this resurgence of inflation, the Fed would likely have continued to remain accommodative (i.e., to have continued to provide excess liquidity to the banking system) and asset valuations might have remained elevated. Now, as valuations have significantly corrected but inflation persists, we’ll focus this Update on inflation.  We’ll begin by looking back at several points we wrote about inflation in recent Market Updates for context. At the beginning of 2021, we were concerned about the possibility of rising inflation because the money supply had increased by 25% over the prior year coupled with lots of prior fiscal stimulus from the government. Then, the $1.9T stimulus bill passed, increasing concerns that abundant liquidity would lead to inflation, the one thing that would cause the Fed to restrict liquidity. Later in the year, when inflation began to turn up, we warned inflation may not be transitory and that the intrinsic values of stocks had not kept up with stock prices. (See quotes from several prior Updates below.) So, we are now in exactly the spot about which we expressed repeated concern in various Updates: a rise in inflation that forced (in March) the Federal Reserve to change its posture from accommodative to restrictive. Moreover, this is not just a meaningful whiff of inflation, it is the largest outbreak of inflation in 40 years. The important question about inflation now for markets (and the Fed) is: when will it stop getting worse and start to ease? We don’t know, but we note some relevant items that have not gotten much notice yet: as of 7/1, the price of crude oil futures had fallen by 20% from its recent high, the average price of corn, wheat, and soybean futures had fallen just over a third from their recent highs, cotton prices are down 38%, and Copper, the most economically sensitive, is off nearly 28% from its recent high. Commodity prices are notoriously volatile, but this is an encouraging sign for moderating inflation, even if a negative signal for the economy.  More significantly, the year-over-year growth in the money supply which had been runaway as we bemoaned a few times in the Updates cited above, has now declined to +8.0%, which is less than the most recent CPI inflation reading. Money supply growth (M2) less inflation is usually positive and last month was its first negative monthly reading in 12 years. As to swings, in the past 15 months, M2 growth less inflation went from its fastest pace of growth in 15 years to its slowest. The full impact of higher home prices has not yet worked its way through the CPI’s imputed rent component, and changes in money growth impact inflation with long and irregular lags. However, it is beginning to look like eventual lower inflation (after home price increases have worked into the numbers) may be getting baked in now just like higher inflation had looked like it would become a concern before it jumped. Note also that prices don’t have to fall for the rate of inflation to moderate, they just have to flatten out for a time. We’ll see. Until then, stocks may face headwinds and continued volatility. That doesn’t mean stocks must decline until inflation turns down - though they likely will if the economy clearly slips into recession - but it will likely be hard for stocks to rise on a sustained basis until inflation begins to improve. Inflation is quite enough to worry about, but markets must now additionally be concerned with the related prospect of recession. Inflation may get worse before it improves, but will turn down eventually, we just don’t know how soon. Yet how soon matters a great deal because the Fed is likely to continue to press rates higher until inflation eases. And the faster and higher the Fed pushes up interest rates, the greater the likelihood of a recession. The next two interest rate increases are likely to bring short-term rates above long-term rates into the condition known as an “inverted yield curve”, which generally implies short-term rates are high enough to cause a recession. The next Fed interest rate increase is expected this month and the one after in September. If inflation happens to moderate before then, the Fed may not push short rates that high.  We’ll see, but time to avoid a Federal Reserve-induced recession could be running out (if one hasn’t begun already). The prospect of higher inflation for a time, with higher interest rates, means longer-term bonds still don’t offer attractive risk prospects and that our emphasis on inflation protection in various asset classes will likely continue to be rewarded. Separately an increasing likelihood of recession means our emphasis on quality in stocks will also likely be beneficial. As mentioned in our last Update, bear markets bring opportunities to defer capital gains taxes, and volatility increases both the opportunity for rebalancing and the benefit therefrom.  Some may assume our general avoidance of market timing may mean we treat bear markets like any other episode, but that is not the case. In addition to the extra opportunities detailed above, the most common activity we engage in during bear markets is to reassure clients. For those still saving, pullbacks in prices clearly mean opportunities to buy at cheaper valuations.  For those already retired, we note the market value changes they see (and sometimes dwell on) are not the most useful things on which to focus. In retirement, spending is generally funded more by generated portfolio income than by sales of portfolio principal, and portfolio income historically has been quite stable with a bias to long-term growth.  In general, portfolio income has not declined this year for clients. The more we can focus attention on the income portfolios generate, the better investors we all will be. Here are the excerpts from prior Updates referenced above: 1/4/2021 Market Update Another near-term concern is the possibility of rising inflation. The money supply has risen nearly 25% over the past year … that’s a significant concern as we move later into 2021. It’s well known that the Federal Reserve has committed to an accommodative monetary policy for an extended period. We think that characterization is inaccurate. Instead, we think the Fed intends to remain in an accommodative mode essentially forever to the extent tame inflation allows, and that it will do so until inflation increases … the reason higher inflation is likely to have severe consequences for markets is that it would be the catalyst to change the Fed’s posture.  2/1/2021 Market Update Inflation:  We’ve written of this danger before … we note the most common measure of the money supply has expanded nearly 27% in the past twelve months … [we] are entirely confident a higher inflation scenario, should it occur, would greatly upset markets since it would force the Federal Reserve to reverse its easy money policy. 4/2/2021 Market Update Many think the … $1.9T stimulus bill may be over-stimulus, eventually leading to inflation and a need for the Fed to tighten.  And close on the heels of the last give-away comes talk of much, much more and perhaps too soon, as some are beginning to fear this porridge may too soon become “too hot”.   If a rude discovery is made that free money isn’t free, that may not sit well with either the economy or markets.  7/1/2021 Market Update That inflation turned up significantly was no surprise.  The question is whether higher inflation will be transitory or persistent.  … We’ll have to see.  What we do know is this is the most urgent unanswered investment question of the hour … The reason is any moderation in accommodative Federal Reserve policy will be dictated by future inflation, Fed policy in turn defines liquidity, and liquidity drives markets ... 10/4/2021 Market Update If higher inflation is not transient, the Fed will be unable to remain accommodative and markets would likely retrench.  We don’t know how this will play out, but we recognize danger to markets from inflation that may be stickier than markets currently expect, and this may not be sufficiently appreciated …  … conditions remain positive for markets, but it’s a fragile positive, and inflation appears to be the thing with the best chance of upsetting it.  The world is awash in created money that has bid up stock and home prices.  That’s nice, of course, but underlying, intrinsic values have not risen as much and inflation may test that, particularly if it forces the Fed to a tight money mode.  1/3/2022 Market Update Economic growth is booming.  However, inflation remains a looming question, and the Federal Reserve, which had formerly labeled the price surge “transitory,” recently removed that word from its communication, implying more concern about inflation as a longer-lasting problem.  “Owner’s equivalent rent” represents nearly a fourth of the Consumer Price Index (CPI) and the … lags built into the convoluted calculation of this part of consumer inflation mean home price jumps which have already occurred are likely to boost inflation readings for several months to come.  Mark Motley, MBA, CFA Tue, 05 Jul 2022 19:24:00 GMT f1397696-738c-4295-afcd-943feb885714:40177 https://www.fosterandmotley.com/insights/2022/06/29/a-chat-about-balance-sheets-with-joe-patterson-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42057 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42057&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/06/29/a-chat-about-balance-sheets-with-joe-patterson-cfp A balance sheet can be  a useful tool in personal finance to inventory your assets and track growth over time.In this episode, Joe Patterson, CFP®, explains the benefits of using a balance sheet and some actionable next steps for creating a personal balance sheet.Joe shares more about:A definition of a balance sheetWhy the balance sheet is one of our core client reportsHow your balance sheet connects to your estate plansAnd moreResources:A Podcast about Wealth and LifeConnect With Joe Patterson:info@fosterandmotley.com 513-561-6640Foster & MotleyLinkedIn: Joe PattersonLinkedIn: Foster & Motley Website Administrator Wed, 29 Jun 2022 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42057 https://www.fosterandmotley.com/insights/2022/06/17/a-bear-market-arrives-br-interim-market-update#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=40153 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=40153&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2022/06/17/a-bear-market-arrives-br-interim-market-update Higher interest rates have been expected for months – the Federal Reserve has consistently signaled that.  But inflation came in higher than expected late last week at +8.6% annually for the CPI.  A little moderation had been anticipated, yet this was the highest yearly change of this cycle and the largest jump in the inflation index since 1981.  That spooked markets and prompted adjustments to expectations for rate increases: perhaps those increases would now come higher and faster than had been expected before.  Moreover, there is always a significant risk that interest rate hikes could cause a recession and most consider that risk is lower if the Fed moves slowly and heightened if it moves quickly, so the ugly inflation report also raised the perceived risk of recession. Stocks reacted by giving up May gains and slipping into a bear market – down more than 20% from their early January high. This week, the Federal Reserve raised short-term interest rates by 0.75%, signaled higher, faster increases to come, and strengthened its language on inflation.  Stocks initially moved up in approval, but then fell to new lows for the cycle. How does a bear market impact long-term investors?  Future returns for stocks and bonds over any period are highly dependent upon starting valuations.  Other things being equal, lower valuations for stocks and higher yields for bonds imply higher expected and actual long-term returns from here than otherwise.  If a recession is also added to the mix, that will depress earnings, resulting in lower expected future returns for stocks in the near term, but that typically has little bearing on expected long-term returns either. Stock market declines of 20% and more are no fun, but it is a fact of investing that they do occur from time to time.  Some keep going and ultimately turn into larger market declines of 30% or 40% or more.  Others stop barely into bear market territory and then turn up.  We don’t know which path the current bear market is most likely to take.  There are certainly plenty of extreme crosscurrents pulling both ways now.  We are experiencing the first global pandemic in 100 years, the largest war in Europe in 75 years, the worst inflation in 40 years, and consumer sentiment just hit a record low.  On the other hand, corporate profits and stock earnings have been strong, consumer balance sheets remain quite strong, Pandemic reopening continues, May unemployment remained at a low 3.6%, and in the US, there are almost twice as many unfilled positions as there are unemployed adults.  So far, the economy has remained strong in the face of higher inflation and higher interest rates, but that could change quickly. We’ve often said most investors worry too much about things they can’t control, such as where the market is headed, and too little about those things they can, such as limiting taxes and other costs, assuring portfolios are well-diversified and represent better valuation than the overall market, and holding the right stock allocation for their circumstances.  That is particularly true in bear markets.  Heightened market volatility enhances rebalancing opportunities and market declines often allow us to capture tax losses, so we will clearly focus on those now.  But otherwise, bear markets are the test for long-term investors and the occasion where long-term discipline matters most.  Dropping discipline and succumbing to the temptation to sell stocks into fear just makes losses permanent, whereas history has always rewarded the disciplined and patient investor with new market highs in time.  “Steady” is the watchword, and “this will pass (eventually)” is the guidance to lean on. Mark Motley, MBA, CFA Fri, 17 Jun 2022 14:37:00 GMT f1397696-738c-4295-afcd-943feb885714:40153 https://www.fosterandmotley.com/insights/2022/06/15/a-chat-about-cybersecurity-in-the-financial-world-with-emily-diaz-macc-cpa-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42058 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42058&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/06/15/a-chat-about-cybersecurity-in-the-financial-world-with-emily-diaz-macc-cpa-cfp Protecting yourself in today's world is more important than ever. Being proactive in developing security habits can give you a sense of comfort when it comes to your financial data.In this episode,  Emily Diaz, MAcc, CPA, CFP®, provides some reminders about ways to protect your information and shares new resources that are available to help increase the security of your financial information.  Emily shares more about:Three important practices for protecting and securing your financial dataTips for protecting your sensitive data when using the internetTricks for protecting your hard copy financial dataAnd moreResources:A Podcast About Wealth and Life: A Conversation about Financial Data, Sensitive Information, and the Security of itCybersecurity Education SeriesSix Actions You Can Take to Protect Your Personal Information (Article)Connect With Emily Diaz:info@fosterandmotley.com 513-561-6640Foster & MotleyEmily DiazLinkedIn: Emily DiazLinkedIn: Foster & Motley Website Administrator Wed, 15 Jun 2022 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42058 https://www.fosterandmotley.com/insights/2022/06/08/a-conversation-about-value-investing-with-thom-guidi-cfa-and-mark-motley-cfa#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42059 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42059&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/06/08/a-conversation-about-value-investing-with-thom-guidi-cfa-and-mark-motley-cfa There is not a simple or succinct definition of value investing.  Generally put, it is a style of investing that is in contrast to growth investing and considers valuation measures when determining stock selection. In this episode of the Foster & Motley podcast, Thom Guidi, CFA, and Mark Motley, CFA, discuss the ins and outs of value investing and why it's an important piece of Foster & Motley investment approach. Thom and Mark share more about:The father and grandfather of value investingA definition of value investingThe history of value investingPitfalls to this strategy of value investing And moreConnect With Thom Guidi and Mark Motley:info@fosterandmotley.com 513-561-6640Foster & MotleyLinkedIn: Mark MotleyLinkedIn: Thom GuidiLinkedIn: Foster & Motley Website Administrator Wed, 08 Jun 2022 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42059 https://www.fosterandmotley.com/insights/2022/06/01/a-chat-about-private-investments-with-rachel-rasmussen-cfa-cdfa#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42060 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42060&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/06/01/a-chat-about-private-investments-with-rachel-rasmussen-cfa-cdfa Private investments are different from publicly traded investments like stocks  and bonds. They're limited to a certain type of investor and have a unique set of considerations. In this episode, Rachel Rasmussen, CFA, CDFA®, discusses the lesser known topic of private investments. She references specific examples of private investments and explains how some investors can target a wider range of opportunities than the public markets.Rachel shares more about:A definition of private investmentsTypes of private investmentsWhy private investments are a good fit for some portfoliosAnd moreResources:A Podcast about Wealth and LifeConnect With Rachel Rasmussen:info@fosterandmotley.com 513-561-6640Foster & MotleyLinkedIn: Rachel RasmussenLinkedIn: Foster & Motley Website Administrator Wed, 01 Jun 2022 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42060 https://www.fosterandmotley.com/insights/2022/05/18/a-chat-about-alternative-bonds-with-zach-horn-mba-cfp-cmfc#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42061 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42061&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/05/18/a-chat-about-alternative-bonds-with-zach-horn-mba-cfp-cmfc As you approach retirement, bonds are likely to become a more significant part of your asset allocation. Typically, bonds, traditional or alternative,  are a more stable way to generate cash flow to replace the paycheck that is lost moving into retirement. In this episode, Zach Horn, MBA, CFP, CMFC®, discusses why alternative bonds are a rising trend in the current environment of rapidly rising interest rates. He references specific examples of alternative bonds to help diversify your portfolio.Zach also shares:A definition of what bonds areWhat an alternative bond is The benefits of alternative bondsAnd moreConnect With Zach Horn:info@fosterandmotley.com513-561-6640Foster & MotleyLinkedIn: Zach HornLinkedIn: Foster & Motley Website Administrator Wed, 18 May 2022 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42061 https://www.fosterandmotley.com/insights/2022/05/11/a-conversation-about-rebalancing-your-portfolio-with-ryan-english-cfa-cpa-cfp-and-nicholas-roth-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42062 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42062&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/05/11/a-conversation-about-rebalancing-your-portfolio-with-ryan-english-cfa-cpa-cfp-and-nicholas-roth-cfp Balance is a tricky thing. Something that is balanced today may not maintain its balance; take investment portfolios, for example. When Foster & Motley begins working with a client, they balance their portfolio based on several targets, but over time rebalancing is necessary to maintain those targets.In this episode, Ryan English, CFA, CPA, CFP®, and Nicholas Roth, CFP® explain their hands-on approach to rebalancing, and the importance of rebalancing across a household of accounts rather than individual accounts.Ryan and Nick also talk about:Two types of rebalancesThe importance of rebalancing accountsWhy you don't want one asset class to grow too bigAnd moreResources:A Podcast about Wealth and LifeConnect With Ryan English and Nicholas Roth:info@fosterandmotley.com513-561-6640Foster & MotleyLinkedIn: Ryan EnglishLinkedIn: Nicholas RothLinkedIn: Foster & Motley Website Administrator Wed, 11 May 2022 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42062 https://www.fosterandmotley.com/insights/2022/05/04/a-chat-about-health-savings-accounts-with-zach-binzer-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42063 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42063&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/05/04/a-chat-about-health-savings-accounts-with-zach-binzer-cfp Your health savings account may be more important and more flexible than you realize. While it was created to help people set aside funds for health care costs, the value doesn't stop there. In this episode, Zach Binzer, CFP®, explains how you can maximize the value of your HSA and why it's reasonable for some to consider it a retirement asset.Zach also talks about:The origin of HSAsThe triple tax benefit of contributing to an HSAAnd moreConnect With Zach Binzer:info@fosterandmotley.com 513-561-6640Foster & MotleyZach BinzerLinkedIn: Zach Binzer Website Administrator Wed, 04 May 2022 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42063 https://www.fosterandmotley.com/insights/2022/05/03/interim-market-update#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=40088 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=40088&PortalID=38&TabID=2903 https://www.fosterandmotley.com/insights/2022/05/03/interim-market-update “April is the cruellest month, …”    – The Waste Land, T. S. Eliot Spooked markets in April call for a brief interim comment even though we had previously returned to our regular quarterly cycle for market comments. Both stocks and bonds were down in April.  They are down this year to date through 4/30.  In fact, April was the worst month for the S&P 500 Index since March 2020, down 8.8%.  This year to date, the S&P 500 Index is down 13.9%, its worst Jan-Apr span in many decades.  International stocks were down just a bit less, so the blended index of stocks we use (70% Russell 3000 US stocks and 30% MSCI ACWI ex-US) was down slightly less than the S&P 500 Index at -13.2%.  The tech-heavy NASDAQ Composite Index lost 13.3% in April alone, its worst month since 2008, and is down more than 20% from its highs late last year. In recent decades, bond holdings often mitigated occasional slumps in stocks.  But taxable bonds are down 9.5% and tax-free bonds are down 6.3% this year-to-date, doing little this time to soften stock declines. Fortunately, both April and this year-to-date have been periods of significantly positive relative returns for the Value style for stocks and for a low-duration (i.e., short-maturity) approach to bond portfolios. Several things combined to scare market participants.  In just the last week, Putin and his foreign minister repeatedly warned of escalating war, including the use of nuclear weapons.  The preliminary GDP report was a surprise 1.4% decline for the first quarter.  The CPI inflation report came out in mid-April and was up 8.5% year over year.  The yield on the 10-year Treasury bond essentially doubled this year to date: rising from 1.51% as of 12/31 to 3.0% on 5/2, and the Federal Reserve is expected to push up short-term interest rates by 0.5% this week.  Moreover, the Fed is also expected to announce plans to reduce the size of the Fed’s bond holdings, which might be more significant than the interest rate hike. None of that is “investor-friendly.”   But what should we make of it? Market corrections for stocks (that is, declines of -10% to -19%) have historically occurred about every other year, and some of them (but less than half) have extended into bear markets, which are declines of -20% or more (and averaging in the range of -32% for those more severe bear markets associated with economic recessions).  These market corrections and occasional bear markets simply come with the territory of stock investing.  These are certainly tumultuous times today, but such volatility from time to time is just a part of being a long-term investor.  It is to be expected.   We just have to wait them out and get through such periods occasionally as the associated discomfort is the very reason stocks and bonds provide better long-term returns than no-risk cash and bank deposits.   Mark Motley, MBA, CFA Tue, 03 May 2022 17:25:00 GMT f1397696-738c-4295-afcd-943feb885714:40088 https://www.fosterandmotley.com/insights/2022/04/20/a-chat-about-a-retirement-hobby-of-beekeeping-with-dave-foster-and-rachel-rasmussen-cfa-cdfa#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42064 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42064&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/04/20/a-chat-about-a-retirement-hobby-of-beekeeping-with-dave-foster-and-rachel-rasmussen-cfa-cdfa Finding a hobby you enjoy can make retirement that much sweeter. In this episode, Rachel Rasmussen, CFA, CDFA®, and Dave Foster discuss his retirement hobby of beekeeping. Dave shares about how we got into it, how he has managed to grow his operation and why he enjoys it so much. Rachel and David also chat about:When he started beekeeping and whyMaintenance of the hivesWhat benefits he gets out of the beesAnd moreConnect With David Foster and Rachel Rasmussen:info@fosterandmotley.com 513-561-6640Foster & MotleyDavid FosterRachel RasmussenLinkedIn: Rachel RasmussenLinkedIn: Foster & Motley Website Administrator Wed, 20 Apr 2022 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42064 https://www.fosterandmotley.com/insights/2022/04/13/a-chat-about-social-security-with-luke-hail-mba-cfp#Comments 0 https://www.fosterandmotley.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=2903&ModuleID=6853&ArticleID=42065 https://www.fosterandmotley.com:443/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42065&PortalID=38&TabID=2903 https://www.fosterandmotley.com/podcast/2022/04/13/a-chat-about-social-security-with-luke-hail-mba-cfp If you understand the way Social Security works and how it's funded, you will understand why the probability of it running out of money is extremely low. In this episode, Luke Hail, MBA, CFP®, discusses the Social Security system's benefits and some key points to remember before taking Social Security.Luke shares more about:When Social Security was established and whyRetirement, disability, and survivor benefits provided by the Social Security AdministrationWhat factors impact when you should begin taking retirement benefits through Social SecurityAnd moreConnect With Luke Hail:info@fosterandmotley.com 513-561-6640Foster & MotleyLuke HailLinkedIn: Luke HailLinkedIn: Foster & Motley Website Administrator Wed, 13 Apr 2022 15:00:00 GMT f1397696-738c-4295-afcd-943feb885714:42065