Well Balanced

FYR015: Navigating Divorce: Key Steps for Protecting Your Financial Future with Sharon Calhoun

In our latest podcast episode, Scott Rose and Sharon Calhoun dive into financial considerations during and after a divorce. Sharon is managing director at Vector and holds a Certified Divorce Financial Analyst (CDFA®) designation. She emphasizes the importance of addressing both the emotional and financial aspects of divorce. 

Note that this episode is the second conversation on the topic of divorce and financial planning. For those wanting additional context, including a recording of the first conversation, please visit vectorwealth.com/divorce.

For those going through a divorce, a critical first step is gathering all relevant financial documents, from bank statements to tax returns, to ensure full transparency. Sharon discusses the complexity of electronic records and stresses the importance of both parties knowing how to access these documents. Protecting your credit is another key focus, with advice on freezing accounts and monitoring credit reports.

In the episode, Sharon also explains the difference between marital and separate property and how co-mingling assets can affect ownership. She emphasizes the importance of updating estate plans, beneficiary designations, and account titles post-divorce to avoid unintended consequences. Finally, Sharon advises listeners to create new financial plans based on their goals, whether short-term budgeting or long-term retirement planning.
Whether you’re navigating a divorce or simply seeking solid financial best practices, this episode provides valuable insights on how to protect and plan for your financial future.

** Get video and audio recordings, a text transcript, and chapter start times–Available on our blog.

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FYR014: Strong Market Performance & Rebalancing Opportunities with Jason Ranallo

In our latest podcast episode with Jason Ranallo, we dive into strong market performance over the last couple of years and rebalancing opportunities. Listen in to learn how prior year tax carryforwards work and how investors use them to offset taxes on future capital gains.

Jason explains how investors can use tactics like rebalancing and tax-loss harvesting in their portfolios. Plus, we discuss importance of staying proactive during both up and down markets.

Key discussion topics:

• Understand how tactics like rebalancing during strong market years and tax-loss harvesting in down market years can affect your portfolio.
• Throughout different market cycles—ups and downs—there are levers to pull
• When you’ve used up your tax-loss carryforward buffer. What next?

Watch, listen, or read the transcript of this episode on our blog.

https://www.vectorwealth.com/posts/strong-market-performance-rebalancing-opportunities

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vectorwealth.com/regulatory

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MP010: Fed Rate Cut. What it Means for You with Jason

In our latest podcast, we explore the Federal Reserve’s recent half-point interest rate cut—from 5.5% to 5%. This is the Fed’s first major reduction since 2019 and coincidentally occurred on the same day as a half-point cut in 2007.

Here’s a brief look at how this rate cut may impact you:

Savers and Borrowers

• Borrowers: Lower rates mean cheaper borrowing costs, benefiting those with variable-rate debts and those taking on new loans.
• Savers: Expect yields on savings accounts and Treasury bills to drop.

Housing Market

Mortgage rates are easing, with the 30-year fixed rate dipping to 6%. For context, last year's rates peaked around 7.8%.

Market Reactions

Stocks rallied after the rate cut, as lower borrowing costs tend to boost spending and investment.

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FYR013: Divorce: Financial Planning Considerations with Sharon Calhoun

This week's podcast discusses divorce's emotional and financial complexities. It features personal insights from Vector's Scott Rose and expert advice from managing director Sharon Calhoun, a Certified Divorce Financial Analyst (CDFA).

Listen in to gain a deeper understanding of asset division, spousal support, and the importance of building a professional team early in the process. Sharon explains why financial assets like IRAs and brokerage accounts should be treated differently in settlements. Scott and Sharon tackle financial planning topics that should be considered before signing a divorce agreement.

Whether you're considering divorce, in the midst of one, or know someone who is, this podcast is for you. This episode will help you think about financial planning through the frame of this not-uncommon life transition.

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Visit our divorce resource page (vectorwealth.com/divorce) for more information about financial planning before, during, and after a divorce.

Episode Chapters and Discussion Start Times:

1. Introduction to Divorce and Financial Planning
• Scott introduces Sharon and explains the focus of the discussion: divorce, its emotional toll, and financial considerations.
• 00:02

2. Understanding the Role of a Certified Divorce Financial Analyst (CDFA)
• Sharon explains the importance of the CDFA designation and the role of professionals in divorce financial planning.
• 01:30

3. The Emotional Impact of Divorce
• Sharon highlights the emotional challenges of divorce and the importance of self-care during this transition.
• 02:08

4. Scott's Personal Divorce Journey
• Scott shares his experience going through a collaborative divorce after 26 years of marriage, offering personal insights into the process.
• 03:43

5. Managing Emotional Ups and Downs
• Sharon emphasizes the importance of allowing yourself to feel a range of emotions during a divorce and stresses the need for self-care during the process.
• 06:07

6. Asset Division and Financial Complexity
• Sharon explains how assets are divided during divorce, with attention to tax implications and long-term planning.
• 07:16

7. The Critical Differences in Asset Types
• Sharon explains how different types of assets—such as IRAs and brokerage accounts—can impact financial outcomes in divorce settlements due to tax implications.
• 09:22

8. Gathering Financial Documents and Building a Team
• Sharon and Scott emphasize the need for organizing financial records and assembling a team of professionals early in the divorce process.
• 12:04

9. Addressing Spousal and Child Support
• The discussion turns to the complexities of spousal and child support, including earning potential and state laws.
• 21:29

10. Mediation and Collaborative Approaches to Divorce
• Sharon and Scott explore alternatives to litigation, such as mediation, and how collaboration may make the process simpler.
• 25:00

11. Wrapping Up: Support and Next Steps with Vector
• Scott and Sharon discuss how Vector Wealth's team can provide emotional and financial planning support during the divorce process and explain how clients and prospective clients can get started with a consultation.
• 27:21

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Regulatory information

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WB003: Travel and Adventure in Retirement with George

In this episode of our Well Balanced podcast, Jason Ranallo sits down with George, who is four years into retirement and a client at Vector. In this conversation, they unpack a life enriched by travel, birdwatching, and the pursuit of experiences. George shares how he has prioritized travel and adventure, starting with canoe trips in the Ozarks and SCUBA diving in Mexico.

Later in life, when his kids were around 10-12 years old, he and his family took a Y2K trip around the world. Another pivotal moment in George's life came in 2010 when a health scare prompted him to reassess his corporate job and led to one of his most remarkable adventures: spending three months in Botswana, working alongside elephants in the African bush.

This conversation explores the practical aspects of travel, including budgeting, planning, and smart travel hacks that ensure each adventure is memorable and financially savvy. But the episode isn't just about logistics—it's about the transformative power of travel, especially when it comes to broadening perspectives and deepening connections.

We are so happy to have George and his wife as clients at Vector. Huge thanks to George for recording this conversation and letting us publish it. We have not compensated George for this podcast appearance, and this does not constitute an endorsement.

Listen to this audio podcast to hear more about George's journey and insights on blending travel with life’s other priorities. 

Points of Interest --

Childhood Adventures and Early Influences
Starts at 00:15
Exploring George's upbringing in Missouri, where his love for nature and adventure took root through canoeing trips along with early scuba diving experiences in Mexico.

 

Discovering a Passion for Birdwatching
Starts at 01:02
A look into how George's interest in birdwatching was sparked by his parents and later deepened during his college years, influenced by like-minded friends.

 

Around the World: The 2000 Family Adventure
Starts at 02:58
Recounting the ambitious around-the-world trip that George and his family undertook, visiting multiple continents and instilling a love of travel in his children.

 

Budgeting: Planning the Perfect Trip
Starts at 05:08
Insights into George's disciplined approach to budgeting for travel, including smart strategies for planning trips, finding deals, and making the most of credit card points.

 

Slow Travel: Embracing Retirement with Longer Stays
Starts at 08:05
The concept of "slow travel" in George's retirement, where he and his wife spend extended periods in new locations, fully immersing themselves in the local culture and environment.

 

From Corporate Life to African Safaris
Starts at 09:24
How a health scare in 2010 led George to reevaluate his career and take a three-month sabbatical in Botswana, working with elephants and reconnecting with nature.

 

Memories Over Material: The True Value of Travel
Starts at 13:04
A discussion on the lasting impact of travel experiences over material possessions and how these adventures have shaped George’s family life and personal growth.

 

Building Memories: The Power of Shared Experiences
Starts at 14:05
George and Jason discuss the importance of building memories with loved ones through travel, emphasizing the difference between communicating through technology and creating lasting memories by sharing experiences together.

 

Travel Hacks and The Next Trip
Starts at 16:08
George makes finding deals a hobby with Google Flights and credit card rewards. When you’re finished with one vacation, you start thinking about the next one.

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* We are so happy to have George and his wife as clients at Vector. Huge thanks to George for recording this conversation and letting us publish it. We have not compensated George for this effort. As you’ll hear, George’s experiences are unique and are in line with his financial plan. If you feel inspired, let your financial advisor know and start planning your next adventure.

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vectorwealth.com/regulatory

ID: V24235155

MP009: Own Assets that Outpace Inflation with Jason Ranallo

News Recap: Inflation, Mortgage Rates, and the Stock Market.

Learn why owning assets that outpace inflation is a key tenet to navigating today's economic landscape. We explore recent trends in inflation, mortgage rates, and the stock market, offering insights on how to preserve your purchasing power.

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Transcript:

In this episode of Market Perspective, we will explore recent developments in the financial world and what they could mean for you. Specifically, we’ll discuss how recent trends in inflation, mortgage rates, and the stock market are shaping the economic landscape—and why owning assets that outpace inflation is crucial for preserving your purchasing power over time.

First up, let’s talk about inflation. The latest report shows that inflation has cooled to 2.89% year-over-year. This rate is significantly lower than the peak of 9% we saw in 2022. While inflation has certainly come down, it’s important to remember that prices are still rising—just at a slower pace.

Here’s the thing: when we talk about inflation, it’s not just about the rate of change. The overall cost of goods and services is still increasing, which means your dollar doesn’t stretch as far as it used to. This is where the concept of owning assets that outpace inflation comes into play.

Now, let’s pivot to the housing market. Mortgage interest rates have fallen to a 15-month low of around 6.5%, which is encouraging news for those looking to buy a home. Lower rates can mean lower monthly payments, potentially making homeownership more accessible. However, there’s a catch—home affordability remains a challenge. Despite the drop in interest rates, home prices are still relatively high, making it difficult for many to enter the market.

Finally, let’s discuss the stock market. In July and August, the U.S. stock market experienced a decline of about 8.5%, only to recover to near all-time highs. This volatility can be unsettling, but it’s a natural part of the market cycle. 

A key tenet here is to plan for uncertainty to avoid becoming a forced seller in a down market. It’s about having the discipline to hold onto your long-term investments during periods of short-term volatility.

The takeaway: Inflation may be cooling, but it’s not gone. Mortgage rates may be dropping, but affordability is still a challenge. And while the stock market can be volatile, we believe it will grow and outpace inflation over the long term. 
Please let us know if you have questions about markets, the economy or financial planning. Check out our insights blog for a variety of topics and formats perfect for sharing with friends and family.

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V24236156

FYR012: Estate Planning Essentials: Gift and Estate Taxes with Mike Nesheim

Did you know that individuals can gift up to $18,000 without incurring any tax? For married couples, this amount can be doubled to $36,000 through gift splitting, making it a powerful tool for transferring wealth. In our latest podcast episode, senior wealth advisor Mike Nesheim discusses the annual gift tax exclusion, among other financial planning strategies for intra-generational wealth transfer.

When gifting highly appreciated assets such as stocks or real estate, Mike says donors should understand that the gift recipients will take on the capital gains tax liability–advantageous if the recipient is in a lower tax bracket. However, assets inherited after the donor passes can benefit from a step-up or reset in cost basis, meaning potentially zero capital gains tax owed by the recipient if sold without further gain.

Additionally, we explore the benefits of making direct payments for education and medical expenses. Such payments can be made without affecting the annual gift tax exclusion, offering a strategic way to support loved ones financially without additional tax burdens.

This episode is the third in our series on intra-generational wealth transfer. The other discussions are here: Trusts, Beneficiaries, and Financial Planning and here: Intra-Generational Wealth Transfer.

 

Key Points and start times from the conversation with Mike Nesheim:
– Jump to a topic or listen from the beginning.

 

Understanding Gift Tax Limits

Start Time: 00:03

The gift tax annual exclusion allows individuals to gift up to $18,000 per person without tax implications, and the concept of gift splitting for married couples.

 

Estate Tax Basics

Start Time: 02:13

Explanation of federal estate tax exemptions, current limits, and future potential changes. Emphasis on the high exemption amounts and their implications for estate planning.

 

Minnesota State Estate Tax

Start Time: 04:00

Detailed look at Minnesota's estate tax rules, including the $3 million exemption limit and non-portability between spouses. Discussion on strategies to maximize exemptions.

 

Managing Capital Gains Through Gifting

Start Time: 05:16

Considerations for gifting highly appreciated assets to take advantage of lower tax brackets of recipients and the concept of stepped-up cost basis for inherited assets.

 

Gifting Non-Cash Assets

Start Time: 07:01

Addressing the complexities of gifting non-cash assets such as jewelry, real estate, and the impact on gift tax exemptions.

 

Gifting from IRAs and 401(k)s

Start Time: 09:19

Rules and limitations around gifting retirement account assets, the need for taxable withdrawals, and strategic considerations.

 

Educational and Medical Expense Gifting

Start Time: 10:49

Explanation of unlimited gifts for tuition and medical expenses if paid directly to institutions, and how these do not count towards the $18,000 annual gift tax exclusion.

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v24206145

FYR011: Trusts, Beneficiaries, and Financial Planning with Chris Wagner

We are excited to share the latest conversation in our intra-generational wealth transfer series. In this episode, Chris Wagner, one of Vector's knowledgeable wealth advisors, shares financial planning insights to help ensure your financial legacy.

Learn how to use different financial planning tools to avoid probate, set wealth transfer conditions, and honor your wishes. We discuss beneficiary designations, the roles of wills and trusts, and trust administration. Chris says, for some families, establishing beneficiary designations can solve a majority of the estate planning and it doesn't cost anything.

One of our roles at Vector is to keep you and your heirs informed and on track with your financial planning goals. Each family situation is unique so we believe a case-by-case review is appropriate.

Listen to this entire episode or replay specific sections.

Section Titles and Times

Wealth Transfer and Financial Planning

• Learn about how wills and trusts complement each other to streamline asset transfer and avoid probate.
• Start: 00:03

Beneficiary Designations vs. Wills

• Beneficiary designations on accounts supersede instructions in a will. For many families, setting and periodically reviewing designations is an excellent foundation.
• Start: 00:49

Trust Types and Uses

• Exploring different types of trusts (revocable, irrevocable, dynasty, charitable, special needs) and their purposes in estate planning.
• Start: 06:31

Trust Administration

• Choosing a trustworthy trust administrator, including the option of corporate trustees like Schwab.
• Start: 09:02

Financial Advisor's Role

• Talk with your advisor to understand the nuances of trusts, wills, and beneficiaries to ensure alignment with your overall financial goals.
• Start: 10:49

Case-by-Case Planning

• Financial planning requirements vary based on individual needs and goals, requiring personalized strategies. Start by asking why.
• Start: 11:09