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Economic Commentary: Q4 2019

Posted By Lineweaver Financial Group
September 24, 2019 Category: General

Autumn breezes: Change in seasons — and markets The return of fall offers cooler temperatures—but a shifting market environment. Dovish central bank policies may extend the long economic expansion, but against a backdrop of rising geopolitical tensions and trade disputes contributing to slower growth. Investors are responding by seeking to boost portfolio resilience to withstand volatility. Our take on the major investor themes for the weeks ahead: U.S. equities: Technology: The cyclical versus the secular With the economy in the late stages of the business cycle, we continue to favor a moderately pro-risk posture in U.S. equities. Technology remains one of our preferred sectors, but it is important to recognize that some sectors are more tied to the business cycle (like semiconductors), while others may benefit from long-term tailwinds (like software). Developed markets: Upgrading Europe We are upgrading the region from underweight to neutral. The European Central Bank’s fresh monetary stimulus could provide a tailwind for equities. We believe the negative sentiment toward the region may be overdone (while recognizing obvious risks) when comparing Europe’s risk to emerging markets and its valuations to U.S. equities. Emerging markets: Latin America in focus We have downgraded emerging markets to neutral, but we see opportunities in Latin America. Valuations are attractive for many of the region’s economies compared to other emerging markets,

HealthWatch: Avoiding Healthcare Scams

Posted By Lineweaver Financial Group
September 24, 2019 Category: General

Shopping for health insurance is a daunting process that has gotten more confusing, as plans that do not meet the Affordable Care Act’s benefit requirements for comprehensive insurance become more available. If you’re shopping for full health insurance, your best bet is to be a smart and cautious shopper. Here are some tips: 1. Check the URL The best way to know you’re in the right place is to double (triple!) check the URL, which is the website address. The federal marketplace website is healthcare.gov. Search engine ads often use healthcare.gov in the hyperlinked text that people click on to get to the website, but look closely at the URL just below to see the actual website address. 2. Check for a Disclosure Insurance quote websites are required to note that they are not affiliated with the government, though this detail is often in small print at the bottom of the page. The privacy statement at the bottom will give more information about who owns the website. 3. Don’t Give Out Your Phone Number Healthcare.gov doesn’t ask for your phone number on its homepage so that an agent can call you. If an agent calls to help you sign up for insurance, it is a private broker. 4. Research the Agent Search by the agent’s name on the Ohio Department of Justice’s website (https://gateway.insurance.ohio.gov) to see if their license is up to date. Once you see the agent’s name, click “View Profile” and navigate to the bottom o

Letter From the President Q42019

Posted By Lineweaver Financial Group
September 24, 2019 Category: General

Many of you may have seen our special Financial Quarterback Episode (with special guest, my daughter Delaney) about helping your kids and grandkids get started investing. We look at investing as a great way to reinforce the ideas of goal setting, saving, and budgeting. And it can help your kids or grandkids on the long-term path to financial independence.  We always start our investing with a family meeting. The first thing we do is look at companies we like who make things we’re familiar with and use. For example, we use Apple phones, watch Netflix at home, and my kids wear clothing from Lululemon and Nike.  I have three kids, so each of them was able to pick four stocks. Instead of fighting over the stocks, we decided to take a pooled approach to the money. I didn’t want one child to substantially gain or lose more than the others, so we decided to have them all share in the total gains.   We get together several times a year, which keeps us focused on what we chose and how well it’s doing. It also gives us the ability to talk about the stocks and see if there are any we want to sell to lock in any gains. I would also recommend opening an UGMA or UTMA account in the kids’ name(s) to possibly get some more favorable tax treatment when you buy or sell securities. Remind them not to panic if a stock goes down.Over time, they usually come back if they are good companies. It’s also important that these portfolios are well diversifi

Tax Planning Before the Holidays

Posted By Lineweaver Financial Group
September 24, 2019 Category: General

As the days get cooler and shorter, October is also a time when many people consider tax planning before the holidays and the end of the year. With 2018 being the first year under the sweeping changes made under the of the Tax Cut and Jobs Act of 2017, there were some lessons learned and some positive steps that you may be able to take for this tax year. One thing that caught many people off-guard last year was the withholding tables under the new Trump Tax Law, and we found that people were generally under-withholding. So, while people may have been used to getting a certain amount back as a refund, they received less last year. However, this wasn’t because taxes increased – overall, they decreased for most people, but because the IRS over-compensated for the new tax law it therefore may have felt as though you had a higher tax liability. This year, make sure you double check. To help with this, the IRS has developed an online tool called the “Tax Withholding Estimator” to help you withhold the right amount, and you can find it on the IRS website, IRS.gov. It’s also a good time to check and make sure you’re fully funding retirement plans, Health Savings Accounts, and Flexible Spending Accounts, and to make sure you’re maximizing your tax deferred accounts. For example, you may have started the year at a relatively low deferral amount for your HSA, but had additional medical expenses come up, or you may have some coming before the e

The Pros and Cons of Charitable Gift Annuities

Posted By Lineweaver Financial Group
September 19, 2019 Category: Charitable, Annuities, Annuity, Charity, Donations

In past articles, we’ve discussed the pros and cons of private foundations and donor advised funds, but there are other options that can help people support their favorite charity while also providing income for themselves as well. One option is a charitable gift annuity, which is essentially a contract between a donor and a charity. As the donor, you’d make a sizable gift to charity using cash, securities or possibly other assets, and in return, you become eligible to take a partial tax deduction for your donation, plus you receive a fixed stream of income from the charity for the rest of your life. When you make a donation to a single charity, the gift is set aside in a reserve account and invested. Based on your age when you make the gift, or ages if it’s both you and your spouse, you’d receive a fixed monthly or quarterly payout for the rest of your life. Then, at the end of your life (again, as well as your spouse’s, if you’re giving as a couple), the charity receives the remainder of the gift. There are also many advantages to a Charitable annuity. For example, you receive an income stream for the rest of your life, you receive an immediate partial tax deduction, and there’s also the potential for part of the income stream to be tax free. Another great advantage is you can start the annuity with almost any kind of asset – including securities, property, or cash. You’ll also be able to reduce or even eliminate ca