February 6, 2024 by Steve Tomisek, CFP® By: Gaby S. Dominguez As the cold winter months approach, many individuals find solace in planning escapes to warmer destinations. However, it is important to remember that the allure of escaping the cold comes with its own set of financial considerations. Therefore, here are some key points to keep in mind when budgeting for winter travel and how to safeguard your financial assets during your getaway. Budgeting for Winter Travel Planning a winter escape requires careful financial planning to ensure you enjoy your vacation without breaking the bank. Start by setting a realistic budget that includes expenses such as flights, accommodation, meals, and activities. Consider additional costs for travel essentials like winter clothing, especially if you’re heading to a colder climate. Remember to account for any pre-trip expenses, such as travel vaccinations or necessary travel gear. Creating a comprehensive budget will help you manage your finances efficiently and avoid any unexpected financial stress during your vacation. Travel Insurance: To Buy or Not to Buy? One crucial decision when planning any trip is whether to invest in travel insurance. While it may seem like an additional expense, travel insurance can be a financial lifesaver in case of unforeseen circumstances. Evaluate the coverage options carefully, considering factors such as trip cancellations, medical emergencies, and lost belongings. Assess the risks associated with your specific travel plans and destination. If your trip involves non-refundable expenses or you’re traveling to a location with higher health risks, purchasing travel insurance becomes a wise financial move. Protecting Banking and Investment Accounts The convenience of using mobile devices for banking while on vacation is undeniable. However, it also exposes your financial accounts to potential risks. Be vigilant when accessing your accounts in public spaces like airports and ensure the security of your devices. Consider using Virtual Private Networks (VPNs) for secure connections and enable two-factor authentication for an extra layer of security. Regularly monitor your accounts for any suspicious activities, and notify your financial institution immediately if you notice anything unusual. Insurance Riders and Asset Protection Mother Nature’s unpredictability can pose a threat to your assets, especially if your winter getaway involves destinations prone to natural disasters. Explore insurance riders that offer additional coverage for specific risks, such as flood insurance for areas susceptible to flooding. In conclusion, escaping the cold for a winter vacation can be a delightful experience when approached with careful financial planning and risk management. By budgeting wisely, making informed decisions about travel insurance, and safeguarding your financial accounts, you can ensure a worry-free getaway while protecting your financial well-being.
February 1, 2024 by Steve Tomisek, CFP® By: W. Kirk Taylor, CFP® Executive Summary Our outlook for 2024 is bullish for both stocks and bonds. While we expect modest equity returns in 2024 compared to last year, we see the S&P 500 rising 8%-12% this year, as falling inflation, modest economic growth, above-average profit growth, lower interest rates, and the now famous “Powell Pivot” breathe life into the prospects of a soft-landing. We see the market making a new high early in the year but expect that the bulk of equity returns this year will be backloaded and occur post-election. Clients should be prepared for heightened volatility during the first part of the year as the soft-landing scenario will be swiftly questioned on any sign of economic weakness. This will be particularly true if the Federal Reserve hints at deferring rate cuts to mid-year or beyond. Heightened volatility is a nice way of saying that the market could see as much as a 10%-15% correction this year, given stocks appear to be priced for perfection presently. Nonetheless, corrections are healthy and common, even in a bull market. Moreover, as we move into mid-year, investors will turn their attention to the Presidential Election in November, suggesting choppy or sideways trading action over the summer and into the fall. With the election outcome known, investors should anticipate the typical election year rally in the 4th quarter. As always, our advice is to view your investment portfolio through an economic lens and not a political lens and to look past the near-term noise and news headlines that are prominent during an election year. In the end, we expect the market to climb a Wall of Worry on its way to back-to-back gains in 2024. Please read on as we take a quick look back on last year and detail why we are optimistic on the year ahead. 2023: The Year That Wasn’t 2023 will go down as “The year that wasn’t”. By that, we mean that 2023 was anything but what was expected. There was no recession as predicted by 61% of economists in January 2023¹. There was no banking sector meltdown as feared early in the year as the Federal Reserve stepped into rescue Silicon Valley Bank. Goods inflation fell dramatically faster than expected, while service inflation surprisingly nudged lower, not higher. Unemployment didn’t climb to 4.8% as thought and instead held steady near an all-time low. Finally, the economy grew just over 3% for the year, nowhere near the anemic growth forecast. To boot, the S&P 500 gained 26%, far exceeding the consensus forecast of only 5%. To be sure, broadly diversified investors with exposure to midcap, small-cap, international, and emerging markets were somewhat left behind as the Magnificent 7 (Amazon, Alphabet, Apple, Meta, Microsoft, NVIDIA & Tesla), surged 111% and accounted for the lion share of the gains, as the remaining 493 stocks in the S&P 500 gained only 12%². At the Fed’s November 1st press conference, Federal Reserve Chair Jerome Powell lit a fire under stock and bond markets when the heretofore “hawkish” Powell surprised investors by signaling that the Fed was likely done raising short-term rates. Moreover, they indicated that they were turning their attention to the possibility of three rate cuts in 2024. This abrupt change in the Fed’s view is now famously known as the “Powell Pivot”. What followed was a multiweek win streak for stocks, the longest stretch in years, as the S&P 500 rallied nearly 13%. Effectively, 50% of the gain in the S&P 500 came in November and December alone. After peaking at nearly 5% in late October, the yield on the 10-year Treasury bond dropped from 4.88% on October 31st to 3.86% by year-end, to end the year unchanged. Suffice it to say, that both stock and bond investors were taken for a wild ride last year. What’s in Store for 2024? Below, we share our outlook on the themes influencing the economy and thus the financial markets in 2024: INFLATION: Inflation continues to approach, if not reach, the Fed’s 2% target. The direction of inflation is what matters, and it’s clear that the inputs (COVID related supply-chain challenges and massive fiscal and monetary stimulus) that led to a 40-year high in inflation are in our rearview mirror. The CPI peaked in June 2022, with a year-over-year (YOY) increase of 9.1%. The Bureau of Labor Statistics (BLS) reported recently that the December 2023 YOY increase in CPI had fallen to 3.4%; down substantially from 9.1%, just 18 months earlier. On Friday, the Commerce Department reported that the personal consumption expenditures (PCE) price index, the Fed’s preferred inflation gauge, increased 1.7% in Q4 of last year. This compares favorably to the 2.6% increase in core prices seen in the preceding quarter and is decidedly below the 5.4% YOY increase seen at the end of 2022. Equally important, the three six-month annualized rates of core inflation were 1.5% and 1.9% in December⁴. INTEREST RATES: The Federal Reserve will indeed lower short-term interest rates this year (we forecast 3-4) but perhaps not as soon as, or as much as, investors might prefer. Given that inflation has peaked and is decidedly approaching the Fed’s target, it’s not surprising that investors reacted so positively when the Fed signaled it was eyeing rate cuts in 2024. Famed investor, Marty Zweig was best known for saying “Don’t Fight the Fed”. This axiom proved correct in 2022 as the Fed raised interest rates aggressively and the S&P 500 fell 18%. It proved correct again in 2023 when the Fed signaled rate cuts were coming, and the S&P 500 gained 13% in just two (2) months. Barring a hard landing for the economy, which is currently not a high-probability outcome, investors will be wise not to fight the Fed in 2024. Falling inflation begets falling interest rates, particularly mortgage rates, which is a key factor given the housing’s share of economic output. The average 30-year fixed rate mortgage recently fell to 6.6%, the lowest level since May of last year, and is down significantly from the 2023 peak of 7.79%⁵. CORPORATE PROFITS & VALUATIONS: According to J.P. Morgan, consensus analyst expectations for corporate earnings in 2024, are for earnings to grow 12% and to reach $243⁶. Using the January 26th closing price for the S&P 500 of 4,907 and $243 in earnings, the S&P 500 trades at a P/E ratio of 20x this year’s earnings, well above the 30-year median P/E of 16.6 and one (1) standard deviation above the median. Accordingly, stocks are somewhat overvalued at present, suggesting limited upside over the near term. In 2022, when earnings fell -1%, the P/E for the S&P 500 hit a low of 17x in October of that year, near the 30-year median. If the S&P 500 were to trade at 17 times 2024’s earnings estimate of $243, that would imply a price level of 4,131. This is coincidentally (or not) roughly 15% from the current level of 4,907 for the S&P 500. CONSUMER SENTIMENT & CONSUMER SPENDING: Consumer sentiment surged 9.1% in January according to the University of Michigan survey, the biggest one-month advance since 2005 and the highest overall level since July 2021. Sentiment has risen 29% over the course of the last two months, the largest such increase since 1991. Meanwhile, year-ahead inflation expectations fell 2.9% on the heels of a dramatic decline in December and personal income was up 3.15% in December compared to a year ago, up significantly from the -1.28% annual rate registered in June of 2022⁷. Improving sentiment, rising personal incomes and consumer spending bode well for economic growth this year. GROSS DOMESTIC PRODUCTION (GDP): According to the Bureau of Economic Analysis (BEA), the initial estimate for year-over-year (YOY) real GDP growth in Q4 of 2023 was 3.3%. This followed YOY growth of 4.9%in Q3. Across all four (4) quarters, real GDP grew 3.1%⁸. Our view for 2024 is that economic growth will land in the 2.0% – 2.5% range, as corporations and consumers continue to feel the lagging but temporary impact of high interest rates. For reference, 2% is effectively the long-run growth rate for the US economy. We are watching carefully several key economic inputs such as the Leading Economic Indicators (LEI), which has gradually fallen lower for the past twenty months. Another input is the yield curve, which remains inverted. An inverted yield curve occurs with short-term rates are higher the long-term rates and historically precedes a recession. Will this time be different? SOFT LANDING: For much of 2023, the soft-landing thesis was challenged as the Fed steadfastly held to its commitment to put the inflation genie back in the bottle, keeping the threat of a recession front and center for investors, who on the heels of an 18% decline for the S&P 500 in 2022, were rightfully skittish. As has been the case for the past two (2) years, the market will continue to debate the hard landing versus the soft landing outcome. Given that the Fed has signaled its intention to lower rates this year and its propensity to cut rates when the economy softens, we’re firmly in the soft-landing camp. Having said that, investors should brace themselves for hard-landing rhetoric in the first part of the year as the economic data ebbs and flows and recession fears resurface. THE PRESIDENTIAL ELECTION: The 2024 Election will provide plenty of theater for investors and every opportunity to fear the worst if your party and/or your candidate loses, regardless of your political affiliation. The outcome will not likely alter the fundamental course of the economy or the stock market in 2024 and perhaps not in 2025 but that bears watching. The simple truth is that the President is one person, and that person is subject to Congressional and Judicial checks and balances, against the backdrop of a slow-moving $26 trillion US economy. Sadly, the political landscape in our country is so divisive at present that Americans will continue to be (for better or worse) subjected to Congressional gridlock. This “balance of power” means the status quo will likely remain in place until it doesn’t. As we alluded to at the start of our Fearless Forecast, investors should not let a political headache turn into a portfolio heartbreak. 2024 Election Preview We’ll have more to say about the Presidential Election on October 1st. Mark the date on your calendar and stay tuned for more details regarding the time and location! In closing, clients should expect 2024 to be a good year with stocks returning 8%-12% and bonds returning 5%-6% as inflation falls, and the Fed lowers interest rates. At the same time, clients should be equally prepared for a bumpy ride on the way to earning those returns. 2023 was a reminder that patience and discipline are the key to reaping long-term returns in the market. As always, do not hesitate to reach out with questions. W. Kirk Taylor, CFP® President and Chief Investment Officer Commentary Disclosure This commentary is a publication of Kirk Capital Advisors, LLC. The information contained herein does not constitute investment advice or a recommendation for you to purchase or sell any specific security. This information is intended to be educational in nature, and not as a recommendation or endorsement of any strategy, approach, product, concept, or asset class. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be suitable or profitable for your investment portfolio. All investment strategies have the potential for profit or loss. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change without notice to the reader and should not be regarded as a complete analysis of the subjects discussed. You are solely responsible for reviewing the content and for any actions, you take or choose not to take based on your review of such content. A professional advisor should be consulted before any investment decisions are made. Certain information contained herein was derived from third-party sources as indicated. While the information presented herein is believed to be reliable, no representation or warranty is made concerning the accuracy of any information presented. Where such sources include opinions and projections, such opinions and projections should be ascribed only to the applicable third-party source and not to KCA. We have not and will not independently verify third-party information. Historical performance results for investment indexes and/or categories, generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. Kirk Capital Advisors, LLC offers investment advisory services and is registered with the U.S. Securities and Exchange Commission (“SEC”). SEC registration does not constitute an endorsement of the firm by the SEC, nor does it indicate that the firm has attained a particular level of skill or ability. You should carefully read and review all information provided by Kirk Capital Advisors, LLC including Form ADV Part 1A, Part 2A brochure, all supplements, and Form CRS. Kirk Capital Advisors, LLC only transacts business in states where it is properly registered or excluded or exempted from registration requirements. ©2024 Kirk Capital Advisors, LLC. Commentary Footnotes 1 – https://www.wsj.com/finance/stocks/what-did-wall-street-get-right-about-markets-this-year-not-much-7d4368fe 2 – https://www.kiplinger.com/investing/stocks/what-are-the-magnificent-7-stocks 3 – https://www.bls.gov/news.release/pdf/cpi.pdf 4 – https://www.bea.gov/data/personal-consumption-expenditures-price-index 5 – https://www.cnn.com/2024/01/18/business/mortgage-rates-january-18/index.html 6 – https://www.bea.gov/news/2024/gross-domestic-product-fourth-quarter-and-year-2023-advance-estimate 7 – https://am.jpmorgan.com/us/en/asset-management/protected/adv/insights/market-insights/guide-to-the-markets 8 – http://www.sca.isr.umich.edu/ 9 – https://www.bea.gov/news/2024/gross-domestic-product-fourth-quarter-and-year-2023-advance-estimate
January 16, 2024 by Steve Tomisek, CFP® By: W. Kirk Taylor, CFP® As the nation paused yesterday to reflect on the legacy of Martin Luther King Jr., our team at Kirk Capital Advisors also took the opportunity to reflect on the values that guide us in our mission to empower clients and foster financial well-being. Dr. King’s vision of equality, justice, and opportunity resonates deeply with our firm’s core values of integrity, excellence, connection, and vision. Today, we explore how these principles intersect with the world of financial advising. Integrity: The Cornerstone of Our Practice At Kirk Capital Advisors, integrity is not just a word – it’s a commitment woven into the fabric of our practice. Upholding the highest ethical standards, we ensure transparency, honesty, and trust in every interaction. Martin Luther King Jr.’s unwavering commitment to justice inspires us to maintain integrity as the cornerstone of our financial advisory services. We believe that success for us, as a firm, is built on a foundation of honesty, integrity, and fostering lasting relationships with our clients. Excellence: Striving for Financial Mastery Dr. King’s call for excellence echoes through our commitment to providing quality financial advice based on the highest industry standards and practices. By staying aware of industry trends, emerging investment strategies, and planning opportunities, and by delivering personalized solutions, we empower our clients to consequentially achieve financial excellence. Just as Dr. King sought excellence in the fight for civil rights, we strive for excellence in the pursuit of financial well-being. Connection: Building Strong Client Relationships Connection is at the heart of our financial advisory philosophy. Dr. King understood the power of unity and connection in driving social change, a principle we apply to our client relationships. Through open communication, active listening, and understanding individual needs, we build strong connections with our clients. By fostering a sense of community and collaboration, our team at Kirk Capital Advisors ensures that each client’s financial journey is uniquely supported. Vision: Guiding Toward a Bright Financial Future As we celebrate Martin Luther King Jr. Day, we reflect on his visionary leadership and apply the same spirit to our firm. Vision is not just about conceiving secular trends and opportunities; it’s about understanding the aspirations and dreams of our clients. With a forward-thinking approach, we guide our clients toward a financial future aligned with their goals and values. Dr. King’s dream of a better world serves as a reminder that vision is essential for creating positive change. On Martin Luther King Jr. Day, Kirk Capital Advisors reaffirms its commitment to our values: integrity, excellence, connection, and vision. As we navigate the complexities of the investment and financial planning landscape, we draw inspiration from the enduring principles that shaped Dr. King’s legacy. Through these values, we aim to empower our clients, build lasting connections, and contribute to a future where financial opportunities are accessible to all, reflecting the timeless ideals of justice and equality.
January 9, 2024 by Steve Tomisek, CFP® By: W. Kirk Taylor, CFP® We’re pleased to provide you with the Kirk Capital Advisors 2024 Tax Guide. The tax filing deadline (Monday, April 15, 2024) is less than three months away and taxpayers are busy gathering their tax documents, e.g., W-2s, 1099’s, K-1, bank statements, and expense receipts, and making the mad dash to their tax advisors office for their annual checkup. Since taxes, and most importantly minimizing taxes, are on everyone’s minds currently, we thought this would be a good time to share with you our 2024 Tax Guide. This reference tool is invaluable in our daily investment and tax planning discussions with clients. In this guide, you will find information on tax rates for ordinary income, capital gains, and gifts, as well as marginal tax rates and contribution limits for retirement plans. As you make the push to wrap up 2023 taxes, don’t forget to use this Tax Guide as a planning tool for minimizing your 2024 taxes. Please view the Tax Guide by clicking the button below! Kirk Capital Advisors – 2024 Tax Guide Disclosure The information provided in the 2024 Tax Guide is general in nature and is not intended as specific tax or legal advice. The information provided is believed to be accurate, but no assurance is made to that effect. Tax laws are subject to change. Please consult with your tax advisor before acting on any of the information contained herein.
December 21, 2023 by Steve Tomisek, CFP® By: W. Kirk Taylor, CFP® The Holiday Season is upon us, and the end of the year is quickly approaching but there’s still time to take action to lower your tax bill and to check off a few key planning tips to ensure that you are doing everything you can to protect your family’s future. Minimizing Taxes… Below we highlight a few steps you can take to lower your tax bill while getting one step closer to retirement. Maximize contributions to your employer’s retirement plan. Maximizing pre-tax contributions to your retirement accounts is the smartest way to take money out of Uncle Sam’s “tax pocket” and put it in your retirement pocket, all while lowering your tax bill. If your employer offers a 401(k), 403(b), or 457(b) plan, you can contribute up to $20,500 on a pre-tax basis and if you are 50 years of age and older at any point in 2023, you can make an additional “catch-up” contribution of $6,500 for a total $27,000. If you are self-employed and have an Individual 401(k) or Simplified Employee Plan (SEP), the contribution limits are higher – up to $61,000 for 2023. In the case of the Individual 401(k), you can make both the employee contributions outlined above and your business can contribute to the plan. Contribute to an IRA. Not eligible to participate in your employer’s plan or worse your employer doesn’t offer a plan? No problem, simply make a tax-deductible (pre-tax) IRA contribution before the end of the tax filing deadline of April 15, 2024. Contribution limits are $6,000 per person plus an additional $1,000 catch-up contribution if you are 50 years of age or older at any point in 2023. Harvest unrealized losses to offset realized gains. If you have taken profits and have realized gains in your investment portfolio this year, congratulations! Be sure to evaluate opportunities to harvest unrealized losses, thereby offsetting previously recognized gains. If your realized losses exceed your realized gains, your excess losses can be used to offset ordinary taxable income up to $3,000. Losses beyond $3,000 are carried forward in any future tax year until exhausted. This excess loss is known as a tax-loss carryforward. Be sure to check the capital gain estimates for your actively managed mutual funds. Most fund companies have announced their estimated capital gain distributions for 2023 and will distribute those gains in November and December. Be careful not to run afoul of the IRS’s Wash Sale Rules, which basically states that you must wait at least 31 days before buying back a security you sold at a loss. Give to charity. Gifting cash or appreciated stock to your favorite causes should be done no later than December 31, 2023. Be sure to allow ample processing time if you are gifting shares of appreciated stock as processing times can be slow at year end and during the holidays. If you’re subject to Required Minimum Distributions (RMD) and you also plan to give to a qualified charity, you can use some or all of your RMD to make a Qualified Charitable Donation. Required Minimum Distributions (RMDs) from IRAs were waived in 2020, but they were once again required in 2023. If you are charitably inclined, over age 72, and subject to taking an RMD, consider giving directly to your charity of choice from your IRA. Distributions that are made directly from an IRA to a charity are known as Qualified Charitable Distributions or QCDs. These make sense as the distribution is not counted as taxable income [1]. Each IRA owner may contribute up to $100,000 directly to charity from their IRA each year. Contribute to a 529 College Savings Account. In most states, contributions to a 529 plan are deductible on your state income tax return. You may also consider front-loading a 529 plan by utilizing a special 5-year gift tax election whereby you make a lump-sum contribution in one year of up to 5 times the annual gift tax exclusion ($75,000 in 2023). Your contribution will be treated as if you’d made a $15,000 gift for each year over a five-year period. Manage Your Estimated Tax Payments. If you are retired and not earning a paycheck, your CPA will likely recommend that you make quarterly estimated tax payments, so that you don’t underpay your taxes during the year. Be sure to make those payments on time. They are due on the 15th of each of the following months: April, June, September, and January (of the following tax year). Accelerate or Defer Income. Accelerating or deferring income can be a smart tax planning strategy. While it is not certain, there is a possibility that ordinary income rates and capital gain taxes may increase in 2024 if the Biden administration is successful in passing their proposed spending bill. If you have a taxable event or projected income for the remainder of 2023 and for 2024, it may make sense to realize income or capital gains in 2023. However, it is important to consider your individual circumstances and consult with a tax professional before making any decisions. General Financial Readiness… Below we highlight items that should be on your checklist each year. Review Your Estate Planning Documents. While most planners and attorneys recommend reviewing your documents every 3 to 5 years, you should be mindful of how proposed changes in tax and estate laws may impact your plan. Major life events such as death, divorce, or the addition of a new family member, often mean updates to your documents are needed. Review Your Beneficiary Designation. Double-check your beneficiary information to make sure they’re still consistent with your objectives. Major life events such as death, divorce, or the addition of a new family member, often mean updates to your documents are needed. Beneficiary designations are revocable and can be updated or amended as often as needed. Annual Gifting. The annual gift tax exclusion for 2023 is $17,000 per year, per person, up from $16,000 in 2022. You can gift up to $17,000 to as many people as you like without filing a gift tax return or incurring a gift tax. If you’re married, you and your spouse can each gift $17,000 to any one recipient. Note that the cost basis for assets gifted to individuals during your lifetime is retained by the individual receiving the gift. Assets that are inherited, receive a “step-up” in basis at the death of the grantor. Health Care Benefits. Be mindful of open enrollment dates. For Medicare Part D (2023), enrollment opens October 15th and closes December 7th. Your employer will typically have open enrollment in the fall. This is a great opportunity to review your healthcare expenses during the year to modify benefits to match your actual needs. Be sure to spend down your Flexible Spending Account (FSA) balance before the end of the year as these funds are “use them or lose them”. Definitions [1] Taxable Income (line 15 on your 2023 Form 1040) is AGI less Deductions (Standard or Itemized). Please note that this information is believed to be accurate but should not be used as specific investment or tax advice. You should always consult your tax professional or other advisors before acting on the ideas presented here.
November 7, 2023 by Steve Tomisek, CFP® By: W. Kirk Taylor, CFP® In today\’s digital age, protecting your financial identity is more important than ever. With the growing prevalence of online transactions and the increasing sophistication of cybercriminals who are armed with ever growing AI capabilities, the risk of identity theft looms large every day. In November, we observe National Identity Theft Protection and Awareness Month to educate our readers on the importance of safeguarding your financial identity and non-public information. The Rising Threat of Theft Having your identity stolen from you can have devastating consequences for individuals and their finances. Cybercriminals employ countless tactics such as phishing emails, data breaches, social engineering, and more to steal your private financial information, such as your date of birth and social security number, or your passwords to your bank accounts and credit cards [1]. Once they obtain this data, they can use it to commit fraud, open fraudulent accounts, and steal your money! The repercussions of identity theft can be long-lasting and financially devastating if precautions aren’t taken. Awareness and active prevention are essential. Protecting Your Financial Identity In recognition of National Identity Theft Protection and Awareness Month, we\’ve compiled some essential tips to help you safeguard your financial identity: Strong Passwords: A robust, unique password for each of your online accounts is the first line of defense against identity theft. Use a combination of upper and lower-case letters, numbers, and special characters. Consider using a reputable password manager to keep track of your passwords securely. Two-Factor Authentication (2FA): Enable 2FA whenever possible. This adds an extra layer of security by requiring a second form of verification, such as a text message or app-based authentication code [2]. Use a Dedicated Password Manager Application: Utilizing a password manager will maintain security and protection over your passwords, along with keeping them organized and easily accessible. There are web browser resources available to store passwords, yet they come with limited functionality and security. As a result, it is recommended to use a third-party app that allows users to enter passwords in one place that is protected by a central password. There are additional benefits to password manager applications, such as storing important information like pins, credit card numbers, driver’s license details, and more [3]. Researchers have found that users without password managers are three times more vulnerable to identity theft. Regularly Monitor Your Financial Statements: Review your bank and credit card statements regularly for any unusual or unauthorized transactions. The sooner you detect fraudulent activity, the easier it is to mitigate the damage. Shred Sensitive Documents: If you are a “paper person” be sure to dispose of financial statements, old credit cards, and any documents containing personal information by shredding them. Thieves can resort to \”dumpster diving\” to obtain your sensitive data. Beware of Phishing Scams: Be cautious of unsolicited emails, especially those asking for personal or financial information. Verify the legitimacy of the sender before sharing any information [1]. Legitimate institutions will never ask for sensitive information via email. Protect Your Social Security Number: Your Social Security Number (SSN) is a key target for identity thieves. Only share your social security number when absolutely necessary and never carry your SSN card with you. Free Annual Credit Reports: Obtain free annual credit reports from the three major credit bureaus (Equifax, Experian, and TransUnion) [4]. Review these reports for any discrepancies or accounts you don\’t recognize. Secure Your Wi-Fi: Ensure your home Wi-Fi network is password-protected and use a strong, unique password. Regularly update your router\’s firmware to patch security vulnerabilities. Secure Your Devices: Keep your computer, smartphone, and other devices up to date with the latest security patches and antivirus software. Lock your devices with strong, unique passwords. Educate Yourself: Stay informed about the latest identity theft trends and scams. Awareness is a powerful tool in protecting your financial identity. Our Role in Identity Theft Prevention As a financial services company, we understand the impact that identity theft can have on your financial well-being. We are committed to assisting you in your quest to safeguard your financial identity. Here\’s how we can help: Planning: We can work with you to create a comprehensive plan that includes provisions for identity theft protection. We can help you allocate resources for identity theft insurance, credit monitoring services, and other safeguards. Education and Awareness: We can inform about the latest identity theft threats and provide guidance, education and awareness on how to protect your financial identity. Emergency Response: In the unfortunate event that you become a victim of identity theft, we can offer guidance on the steps to take to minimize the damage and help you get back on track financially. National Identity Theft Protection and Awareness Month serves as a reminder of the very real and present danger of identity theft in today\’s digital world. We’re here to empower you with knowledge and tools that may help to protect you and your family’s financial identity. By following best practices, staying informed, and seeking guidance, you can secure your personal financial data and enjoy peace of mind in an increasingly interconnected world. Remember, protecting your financial identity is an investment in your financial well-being. ■ Footnotes: [1] Identity Theft, USA Gov, August 7, 2023 https://www.usa.gov/identity-theft [2] What is two-factor authentication?, Cloudflare https://www.cloudflare.com/learning/access-management/what-is-two-factor-authentication/ [3] The benefits and risks of using a password manager to protect your online identity, CNBC, December 7, 2022 https://www.cnbc.com/2022/12/27/benefits-risks-of-using-a-password-manager-to-protect-online-identity.html [4] Learn about your credit report and how to get a copy, USA Gov, November 1, 2023 https://www.usa.gov/credit-reports
October 31, 2023 by Steve Tomisek, CFP® By: W. Kirk Taylor, CFP® According to the World Health Organization (WHO), cancer is the leading cause of death worldwide, accounting for 1 out of 6 deaths [1]. Unfortunately, and like many of us, I have personally lost friends, family, and clients to various types of cancer over the years. My first memory of death as a child, was that of my mother’s mother, who died of breast cancer when I was 12 years old. Just last week, a friend finally succumbed to his long battle with brain cancer. Fortunately, though, I also know more than a few cancer survivors. So, not all is lost and the fight to end our battle with cancer gains momentum every day! While the last day of October is best known as Halloween… the evening when the little one’s go door-to-door saying “trick or treat”, at Kirk Capital Advisors we’re closing out the month not just with tricks but also with treats, as we take this opportunity to reflect on one of our firms core values – Connection. Our team members greatly value the interpersonal relationships, connections, and close bonds we have formed with the families we serve. These relationships often span multiple decades, encompassing fond memories of milestone birthdays, high school and college graduations, weddings, and the births of children and grandchildren. Regrettably, they also entail the somber experience of losing family members. The interactions and connections we’ve established with clients over the years inform many of our firm\’s and personal core values, and philanthropic principles are integral to them. We firmly believe that we can \’do well by doing good\’, and thus, we proudly support charitable giving among our staff by matching their contributions to the causes they are most passionate about [2]. In this commentary, we’d like to shine a light on breast cancer, while simultaneously highlighting the financial benefits of supporting qualified 501c3 charities. In our book, it’s perfectly fine if doing well is a financial byproduct of doing good. October, known for its captivating autumn colors, also heralds Breast Cancer Awareness Month. This global movement, originating in the 1980s through a partnership between the American Cancer Society and AstraZeneca, highlights the significance of early detection, patient support, and the pursuit of a cure for breast cancer. Breast cancer remains a formidable challenge, with an estimated 43,700 deaths expected in the United States in 2023 [3]. Incidence rates continue to rise due to factors like weight and reproductive trends, underscoring the need for support. To contribute to the fight against cancer, many people support charities like the American Cancer Society. Donations not only help the cause but can also provide tax benefits. By donating to IRS-recognized nonprofits, you may be able to reduce your taxable income leading to significant savings. To claim a charitable deduction, you typically need to itemize your deductions and keep records of your donations. Different types of donations, including cash, property, and appreciated assets, can provide tax benefits but the benefit varies based on the type of contribution. A Qualified Charitable Distribution (QCD) is a tax-efficient strategy for retirees to support their causes, while allowing them to exclude their RMDs from their taxable income. Cryptocurrency and stock donations offer tax advantages as well, and most well-established nonprofits accept these securities in lieu of cash donations. Employers may offer gift-matching programs, thereby increasing the impact of your donation. Of course, charitable giving towards breast cancer extends beyond monetary donations and can include participation in events, volunteering, and raising awareness by wearing pink during Breast Cancer Awareness Month. In this month of reflection and awareness, we invite you to join us in making a difference. Whether it\’s supporting cancer research, lending a helping hand to those in need, or simply spreading the word about the importance of early detection and patient support, your actions can have a profound impact. Together, we can transform Breast Cancer Awareness Month into a catalyst for positive change. Let\’s not only think about how we can do good but take concrete steps to make a real difference in the lives of those affected by cancer and other causes close to your heart. It\’s time to turn our hopes into actions, our support into solutions, and our awareness into meaningful change. ■ Footnotes: [1] Cancer, World Health Organization, 2022 https://www.who.int/news-room/fact-sheets/detail/cancer [2] Contributions must be made to a qualified 501c3 charity. We match a maximum of $1,000 per employee. [3] Our work improves lives, American Cancer Society, 2023 https://raiseyourway.donordrive.com/index.cfm?fuseaction=cms.page&id=1007
October 10, 2023 by Steve Tomisek, CFP® By: W. Kirk Taylor, CFP® Yesterday, Americans celebrated Columbus Day, a national holiday in the United States that commemorates Christopher Columbus\’s historic landing in the New World on October 12, 1492. As of 2021, and per proclamation by President Joe Biden, the holiday doubles as Indigenous Peoples’ Day to honor North America’s Indigenous peoples and the Tribal Nations living on the continent today. While Columbus reached the new world safely, he didn’t exactly find the destination he had hoped to reach, an island just off the coast of Japan. Perhaps this is where the notion, that the journey is what matters and not the destination, might have come from. Columbus, hailing from Genoa, Italy, meticulously planned his epic voyage, and this holiday serves as an occasion to celebrate Italian-American heritage while acknowledging the strategic thinking that underpinned his journey and the benefit of planning for the future. In Columbus\’s era, Europeans sought a new route to Asia for coveted silks and spices. As such, Columbus was compelled to develop a comprehensive plan to sail across vast waters, waters that we now know as the Atlantic Ocean. Sailing can be a risky venture, especially if you are not prepared for the unexpected, and the same can be said for investing, whether you are investing in stocks, bonds, real estate or in a business enterprise. In the end, thinking carefully about and planning for the goal you wish to achieve and the destination you wish to reach e.g., putting your children through college, retiring at an early age, traveling the world, or giving your time and resources generously to your cherished charitable cause(s), is critical to your success. At the same time, investors must analyze the risks inherent in investing, as investing involves a range of factors, including market volatility, unexpected developments, and the potential for financial losses. Investors who willingly embrace risk understand that the potential for profit arises from the calculated risks they take. This is analogous to Columbus\’s profound risk of sailing into uncharted territory. In the end, his risk was rewarded with the discovery of new lands, people, and vast riches. Columbus and his crew sailed for six long months before sighting land. That’s not a long time in today’s fast-paced world with the internet and smart phones but can you imagine being at sea for six months without seeing land!?!? It must have seemed like an eternity. This is a gentle reminder that time is a critical asset in investing, if not the most important asset. It is time in the market that matters, not timing i.e., market timing. Over long periods of time, a diversified portfolio of stocks and bonds tends to weather volatile storms brought about by an economy that expands and contracts and expands in the short run, but always seems to expand over the long run. Managing the risk and volatility of financial markets is a skill, much like the skill that Christopher Columbus exhibited as he traversed volatile seas on his journey in search of vast riches. Asset allocation and diversification are key risk management strategies that can help mitigate systemic risk. Asset allocation (your allocation to stocks versus bonds and other asset classes) depends on factors like your tolerance for risk, your age, and your need for current income. Diversification involves spreading risk across a variety of investments (conservative investments to ballast aggressive investments) to reduce the potential for major losses. Just as Columbus had to evaluate his own risks and assets before embarking on his sea voyage, successful investors must thoroughly assess the factors at play in their financial journeys. Although Columbus didn’t land where he intended, he did achieve success, even if it was accidental. Columbus Day serves as a reminder of the importance of strategic planning, assessing risk, evaluating your own skills, being prepared for the unexpected factors that may necessitate changes to your portfolio, and focusing on the long term. Along the way though, investors should always be prepared for unexpected factors that may necessitate changes to their portfolios and always make a habit of rebalancing their portfolios on a regular basis. In sailing terms, you might think of rebalancing as tacking. When the wind shifts, it’s time to “come about” plot a different course toward smoother seas, on your way to the final destination. ■
October 3, 2023 by Steve Tomisek, CFP® By: W. Kirk Taylor, CFP® Kirk Capital Advisors is honored to be named to the 2023 Top Financial Professionals list for the Northern Virginia magazine! This recognition is a testament to our firm’s core values: integrity, excellence, connection, and vision, while highlighting our passion for helping you and your family achieve your life goals. You can view my profile on the Northern Virginia magazine website at Top Financial Professionals. The 2023 Award: The nomination period for the 2023 award was March 6th – April 7th. The 2023 award list was published in September 2023. Kirk Capital Advisors, LLC did not pay to be included in this list. View Disclosure Information here… https://kirk.321staging.com/disclosures/ Kirk Capital Advisors, LLC is a fee-only registered investment advisor. We provide comprehensive wealth management services to affluent families, entrepreneurs, and business owners. At KIRK, we believe that “family comes first” and that generational planning holds the key to reaching your life goals. Our approach to wealth management takes into consideration the unique needs of all members of your family and includes financial literacy, education, and investment coaching for younger generations. At Kirk Capital Advisors, each and every interaction with our team is extremely personal and unique to you and your family.
