Well Balanced

WB002: Finding Balance and Reducing Stress with Tory Schaefer

We are excited to share insights from Vector’s latest Well Balanced podcast episode, which features Tory Schaefer, Senior Director of Yoga Operations at Lifetime.

Tory joins Sharon Calhoun, Vector’s Managing Director, to discuss the importance of integrating a wellness practice, like yoga, into your life. Discover how to stay present, reduce stress, and support better decision-making. Whether you're a seasoned yoga practitioner or just curious about ways to stay grounded, this episode offers valuable tips for a well-balanced life.

Some of you may be wondering what yoga has to do with retirement and financial planning. Well, let’s face it—we’re bombarded with stories of suffering, inflation concerns, and heated political coverage. Additionally, there may be personal challenges at home like caring for an aging parent or ill spouse. Even just getting out the door to make an appointment can be a challenge at times. The world throws a lot at us, which can cause significant stress and anxiety.

Tory says, “Yoga has been around for thousands of years, primarily as a form of meditation. It addresses “dukkha,” which means suffering, and focuses on understanding and alleviating it. Yoga helps manage attachments to worries about the future or past.”

Listen or watch this podcast for a wide-ranging and perhaps surprising conversation on an age-old topic. Sharon and Tory go beyond being flexible to being present.

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Chapters:

00:00 ... Introduction

• Sharon Calhoun introduces our guest, Tory Schaefer and the theme of the podcast: Healthy Living and Wellness in Retirement.

00:24 ... Yoga's Role in Financial and Retirement Planning

• Learn how yoga can help with managing stress and anxiety, especially in the context of financial planning and retirement.

02:16 ... Tory Schaefer's Yoga Journey

• Tory shares his journey from acting in New York City to becoming Senior Director of Yoga Operations at Lifetime.

05:04 ... Understanding and Practicing Yoga

• Tory explains various types of yoga and encourages listeners to start with simple breathing exercises.

10:34 ... Benefits of Yoga

• Managing stress, improving mental clarity, and overall wellness through a practice of grounding in the present moment.

14:37 ... The First Step in Yoga is Breathing

• Tory talks about how yoga can help individuals let go of unproductive stories they may tell themselves.

22:00 ... Wellness and Daily Rituals

• Start small with daily rituals and incorporate mindfulness practices into your life for less reactive stress responses and better decision-making.

27:03 ... Final Thoughts and Conclusion

• Words of wisdom on facing stress and being present.

We encourage you to share this podcast and contact Vector with questions about your financial life. Tory Schaefer can be reached through his Facebook page: ToryLand Yoga or at Lifetime.

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MP006: The Three Trillion Dollar Club

As of this month, there are only three companies in the world that have achieved a market capitalization (market value) of over $3 trillion: Nvidia, Microsoft, and Apple. One thing these companies have in common is artificial intelligence.  

In this Market Perspective episode, Vector’s Jason Ranallo discusses past and present concentrations of market leadership.

We look back 30 years to companies like General Motors, Cisco Systems, and General Electric. At the time, these blue chips were some of the largest in the market. They came out of a century that saw the mass adoption of cars, radio, and the electrification of cities. What we know today is that these companies are no longer leading the index. 

Changes in market leadership typically occur over time, either from companies rising in market value or others falling. Today’s AI darlings, and more broadly, the so-called Magnificent 7 (Apple, Nvidia, Microsoft, Amazon, Alphabet, Meta, and Tesla), are leveraging AI, computing, and scaling networks. Will they always? If history is a guide, no. But this doesn’t mean the three trillion-dollar club is going anywhere, either.  

If you or someone you know has questions about concentrated positions in markets or in their portfolios, listen to this podcast, share, and let us know. At Vector, we help clients answer these questions and plan for the future. 

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Regulatory

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FYR009: 5 Financial Planning Topics for Recent Grads with Vector's Jason Ranallo

Our message today is for the students in your life. Learning is a lifelong pursuit, and transitions like graduation can mark milestones in your student’s education journey. We know that many in our audience value the importance of establishing a solid financial foundation, and starting early can be a big part of that.

Here are five financial planning topics perfect for sharing with those just starting out in their careers or taking the next step.

1. Create a Budget
2. Manage Student Loans
3. Build an Emergency Fund
4. Start Saving, Consider Investing
5. Maintain Good Credit

Focusing on these simple financial habits can help establish a solid financial foundation. Jason Ranallo, director of portfolio management at Vector, discusses these topics and why they are important. We invite you to share this content and start a conversation.

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FYR008: Savings Strategies for College and Beyond with Chris Wagner

Did you know that May 29th is 529 Day? This quirky, not-quite-a-holiday day is a great opportunity to learn about planning for your family's future education needs while enjoying some light-hearted fun. Listen or watch our latest podcast episode to find out how 529s, and other savings accounts, can help you save smartly for education expenses.

In this podcast, dated 5/29, Chris Wagner, a wealth advisor at Vector, discusses financial planning to help you maximize your college savings potential. He emphasizes the importance of starting early to benefit from compound growth and discusses contribution limits and the tax implications of various approaches.

Key Features of a 529 Plan:

• Tax Benefits: Contributions are made with after-tax dollars, but investments grow tax-free, and withdrawals for qualified education expenses are also tax-free.
• Qualified Expenses: Funds can be used for a range of education expenses, including tuition, fees, books, and room and board at eligible colleges, universities, and vocational schools. Recent changes also allow for up to $10,000 per year to be used for K-12 tuition.
• Flexibility: You can open a 529 plan from any state, not just your own, and use the funds at any eligible institution nationwide.
• Contribution Limits: While there are no annual contribution limits, contributions are subject to federal gift tax rules. In 2024, you can contribute up to $18,000 per beneficiary without triggering gift taxes.
• Under recent tax law changes, unused dollars in a college 529 account can be rolled over to a Roth IRA for the same beneficiary. There are a few stipulations; be sure to consult with a qualified financial advisor before making changes.

 

Time & Chapters

00:00 … Wealth Advisor Chris Wagner

00:52 … What is a 529 Plan?

02:35 … How to contribute to a 529

05:45 … Setting College Savings Goals

09:55 … Taxes & Converting 529 to Roth IRA

17:15 … Potential state tax deductions

19:44 … Alternatives to 529 Plans: UTMA Accounts

23:22 … Savings & Gifting Strategies

26:33 … Closing Remarks and Regulatory

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To learn more about optimizing your college savings strategy, connect with the Vector team for personalized advice.

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vectorwealth.com/regulatory

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FYR007: Master Your Next Car Purchase with Vector’s Mike Nesheim

If you’re considering buying a new car within the next few years, this podcast is for you. For many clients, a new car purchase is a significant financial decision. Senior wealth advisor Mike Nesheim, CFP®, talks through several aspects of car buying, from leases and loans to selling taxable investments to fund the purchase. As a financial planner, Mike emphasizes the importance of thinking ahead and strategically approaching car purchases.

Mike says that knowing a vehicle’s cash price upfront is crucial. It allows for a more explicit comparison of financing and leasing options without falling into the trap of attractive monthly payment schemes that might carry high interest rates.

The podcast discussion gets into the implications of different payment methods. With interest rates currently higher than in previous years, Mike says a cash offer might be the way to go, depending on your financial situation. He also points out that the tax implications of withdrawing large sums from retirement accounts could push you into a higher tax bracket.

Additional costs such as insurance, registration fees, and potential add-ons like gap insurance and extended warranties should be part of the financial considerations. While dealership terms and pricing appear more up-front, Mike still recommends being prepared to walk away if the deal is not working for you.

In our view, integrating car purchases into long-term financial planning is a best practice. Mike advocates for earmarking assets ahead of time to avoid liquidating investments during market downturns or suffering potentially avoidable tax consequences. By maintaining a proactive approach, you can make informed, economically sound decisions that align with your overall financial goals.

Contact Mike and the Vector Wealth team for personalized advice tailored to your financial situation.

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Podcast Chapters

00:03 … Introducing Mike Nesheim CFP®

00:36 … Planning Your Car Purchase

01:57 … Buying and Leasing Differences

03:57 … Financial Considerations

07:17 … Additional Costs and Negotiations

11:52 … Comprehensive Financial Planning

15:00 … Regulatory

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MP005: Market Perspective with Vector’s Jason Ranallo

In this week's Market Perspective, we get into some noteworthy stats coming out of markets and the economy. Here are the highlights:

Stock Market: The S&P 500 recently experienced a 5% swing during the March-April-May period. The U.S. stock market is now back to an all-time high. Part of the reason for the move up, we believe, is due to corporate earnings results which have been stronger than expected. About 77% of companies have reported results above expectations.

Jobs Market: The job market continues to present a "Goldilocks" scenario with historically low unemployment rates and robust job growth. However, the Employment Trends Index hints at a slight slowdown in job growth later this year.

Small Business Sentiment: Optimism among small business owners dipped in March due to inflation concerns but rebounded slightly in April, exceeding expectations.

Inflation and PPI: The Producer Price Index (PPI), which is a measure of inflation from the perspective of producers and manufacturers, rose more than anticipated. This suggests potential future increases in the pipeline for consumer prices, potentially foreshadowing persistent inflationary pressures.

Vector Insights: In our analysis we find market declines of 5% occur relatively frequently, every 51 market days on average. A 10% decline occurs about every year and a half. Market swings will occur which can test the emotions of long-term investors. Rather than losing sleep over natural short-term market volatility we stress the importance of having a plan in place for when markets go up, and down.  

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WB001: Meaning & purpose beyond financial security - PUSH with Joe Grochowski.

Finding meaning and purpose beyond financial security becomes principal, especially as one transitions into retirement. In this podcast, Vector's Scott and Ezra talk with senior wealth advisor Joe Grochowski to explore how retirees have harnessed their newfound freedom and resources to lead fulfilling lives.

The acronym PUSH stands for Purpose, Use Time, Socialize, and Health.

Purpose is fundamental, acting as the driving force behind daily activities. For instance, one of our clients found renewed vigor by taking a part-time job, not for the income but for the structure and social interaction it provided. This pivot highlights the necessity of having clear goals and activities that infuse life with meaning and joy.

Using Time is about balancing relaxation with active involvement. Our clients often enrich their lives by engaging in events and activities that also allow them to help others, fostering a sense of achievement and fulfillment. This approach enhances personal well-being and strengthens bonds with friends and family.

Socialization plays a critical role in a healthy retirement lifestyle. Our discussions reveal that social connections are crucial, whether with family, friends, or community groups. These relationships often hold the retirement experience together, providing emotional support and preventing isolation.

Health is the cornerstone that supports all other aspects of a fulfilling retirement. Active lifestyles, whether through walking, yoga, or more intense activities like pickleball, are common among our clients. Maintaining physical Health ensures that retirees enjoy their activities and social engagements without undue constraints.

At Vector, we believe a successful retirement strategy should encompass more than financial stability; it must also consider how one will use their time, who they will spend it with, and how they will maintain their health. Retirement, transitioning from structured routines to what is often referred to as 'free time,' presents a complex yet rewarding journey. We strive to guide our clients towards a retirement that is as rich in purpose as it is in sound financial decisions.

 

Time and Topics

00:02 … Exploring Retirement Visions

02:03 … Importance of Purpose in Retirement

04:07 … Transitioning to Free Time

06:03 … Financial Planning and Lifestyle Goals

08:05 … The Role of Socialization in Retirement

10:19 … Volunteering and Community Engagement

12:29 … Health and Activity in Retirement

14:22 … Regulatory

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vectorwealth.com/regulatory

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FYR006: Social Engineering with Sharon Calhoun and Suzy Klapperich

In our latest podcast episode, Sharon Calhoun, managing director at Vector Wealth Management, and Suzy Klapperich, chief compliance officer, discuss the pressing issue of social engineering and cybercrime. Their discussion sheds light on the manipulative tactics that scammers use and provides valuable insights on how to safeguard your personal information.

Key Highlights from the Discussion:

• Rising Threat: We’re seeing an alarming rise in fraud cases, with statistics showing hundreds of millions affected by data breaches and nearly a million complaints reported to the FBI's Internet Crime Complaint Center in 2023 alone.
• Understanding Social Engineering: Social engineering involves manipulative tactics by scammers to steal sensitive data. These criminals exploit human psychology, targeting stressed or distracted individuals to trick them into compromising their security.
• Common Emotional Triggers: Scammers often create a sense of urgency, trust, fear, desperation, curiosity, or sympathy to manipulate their targets. Each emotion is leveraged to push the victim into making hasty decisions.
• Real-Life Examples: Sharon shares personal anecdotes about suspicious emails that mimicked legitimate communications from known brands like Delta and Xfinity, emphasizing how realistic and convincing these fraudulent attempts can appear.
• Preventive Measures: Suzy stresses the importance of skepticism and caution, especially when dealing with unexpected phone calls or emails. She advises against relying on caller ID or email reply addresses, as scammers can falsify these to appear legitimate.

Three Practical Takeaways

1. Stay Informed: Always verify any unusual or unexpected requests by contacting the company using known and trusted contact information.
2. Guard Your Data: Limit the personal information you share online. More information available to the public means more ammunition for fraudsters.
3. Use Direct Access: Bookmark, use the company's mobile app, or directly type in the URLs of important sites like banking or investment portals to avoid deceptive ads or spoofed websites.

Connect with Us:

Don't hesitate to reach out if you encounter any suspicious activity or need advice on protecting your financial information. Our team at Vector Wealth Management is here to assist you in securing your assets and peace of mind.

 

Time and Chapters

00:25 ... Introduction to Social Engineering

03:00 ... Emotional Manipulation Tactics Unveiled

11:09 ... Real-life Examples of Fraud Attempts

15:44 ... Preventive Measures Against Fraud

18:32 ... How to Identify and Avoid Scams

22:00 ... Closing Thoughts and Regulatory

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