Ideal Wealth Advisors's LTM E-Newsletter

Craig Lundquist and Kristin Becker photo

Craig Lundquist, MBA, ChFC^®, CRPC^®

VP of Wealth Management

craig.lundquist@lpl.com

651-773-2757

Kristin Becker

Senior Administrative Assistant

kristin.becker@lpl.com

651-773-2821

Ideal Wealth Advisors

Located at Ideal Credit Union

8499 Tamarack Road

Woodbury, MN 55125

CRPC conferred by College for Financial Planning

May/June 2023

What You Need to Know About Bond Funds

During an unsettled economy, investors often turn to bonds as a hedge against fluctuating stock values. While bonds can offer a buffer, they may not provide returns that outpace inflation and move investors closer to their savings goals. However, bond funds still can play an important role in your portfolio.

All About Inflation

You don’t have to see government statistics to know that the cost of just about everything is going up. All it takes is a weekly trip to the supermarket or your favorite department store to know that, after several years of low inflation, the purchasing power of your money is declining.

Estate Planning for the Younger Crowd

In your 20s or 30s, you’re probably focused on building your career and enjoying your current lifestyle. So, you may not have given a lot of thought to estate planning. However, creating a basic estate plan may help protect you if the unforeseen happens.

Investing in the Midst of Volatility

The past couple of years have certainly emphasized the fact that investing has never been a sure thing. Stock prices fluctuated wildly and riskier investments like crypto reminded most of us of the definition of “extreme” risk. Global inflation, rising interest rates and geopolitical unrest further combined to roil markets and make investors nervous.

When Investing Strategies Differ

There are certain things all investors may consider doing when equity markets are volatile. For example, if you own a stock that has underperformed its peers, find out why. Management changing direction may make the holding less appealing than in the past, or perhaps peers have passed this company by. Maybe the company is negatively affected by the economy, but is poised to recover when the economy does.

Exploring Fixed Income

Investors typically flee to bonds when equity markets decline, but this asset class encompasses a few different types of investments. Here’s a look at some of them:

Traditional But Not Deductible

When investors examine their retirement investment options, they typically pay a great deal of attention to whether their contributions are deductible or not. There are a wide variety of investment accounts, from 401(k) and 403(b) plans, that offer this benefit regardless of income. For high net worth individuals, limits to how much they can contribute to these plans may leave them looking for another place to put additional monies.

Do You Need a Trust?

While trusts are often complex, they offer high net worth families and individuals tax advantages and more control over how their assets are distributed to future generations. One of the more common and effective trusts used to accomplish these twin goals is an AB trust, which is also known as a credit shelter or bypass trust. This type of trust begins as a revocable trust, when you can make changes, and ends as an irrevocable trust.

Times Like These

Volatile times can weigh on investors, but your financial professional can help you diversify your holdings to better meet your needs.

Should You Buy a Disability Policy?

Disability insurance may not be high on your list of priorities. But consider this: According to Social Security Administration statistics, one in four 20-year-olds will become disabled before reaching retirement age. A disability insurance policy is designed to replace a portion of your income if you become ill or injured and can't work.

Keep Your Business in Shape

Staying on top of your business’s daily operations takes effort and planning. Little is accomplished without a clear vision of where your business is headed and how you plan to get there. Following these critical steps can help you plan, considering not only business goals but personal goals as well.

Retirement Planning: The Right Approach

As a business owner, you might be counting on the sale of your business to fund your retirement. That expectation may lead you to believe that increasing your business’s profitability is the key to a lucrative sale. But, according to the Exit Planning Institute,* up to 80 percent of businesses don’t sell — or sell for less than expected — leaving most owners unable to cash in on their business’s profits and potentially depriving them of retirement income.

Will Your RMDs Trigger Medicare Surcharges?

Since you started working, you were probably told about the benefits for saving as much as possible in your employer's tax-deferred retirement plan. Your taxable income is reduced by the amount you contribute. And your savings has the potential to accumulate tax-free until you're ready to withdraw it in retirement.

But why didn't anyone tell you about IRMAA?

Living with Inflation: Tips for Retirees

Nearly everyone is affected when inflation rears its ugly head, but seniors living on fixed incomes may be in the group that’s hit the hardest. Because the purchasing power of the dollar has declined, people in or near retirement who’ve invested conservatively now have less money to spend. While no one can control inflation, there are steps seniors can take to help ensure they have enough money in the future.

FAFSA 101

Do you have a child who is headed to college in 2024? If so, you’ll want to fill out and submit a FAFSA when the form becomes available on October 1, 2023. FAFSA stands for <i>Free Application for Federal Student Aid</i>. It’s used to determine the amount of the loans, grants, and other federal financial aid a prospective student qualifies for. In addition, colleges use the FAFSA when deciding on a financial aid package to offer an applicant.

Paying with Cash

These days, credit and debit cards are the payment of choice for many people, and paying with cash may seem kind of old school. But, there’s a good reason why you might want to start carrying money in your wallet. Fees that credit card companies charge merchants are on the increase, and businesses are responding by tacking on surcharges to cover the cost of making credit card purchases.

Say "I Do" to a Post-wedding Checklist

If you thought you were done with to-do lists once your wedding was over, think again. Reviewing personal information and financial accounts and making any changes should be a priority. The checklist below can help.

Infographic: The Name Game

Here's a snapshot of the important documents and accounts you'll need to update if you changed your name and/or address when you married.

CONTACT US

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Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Ideal Credit Union and Ideal Wealth Advisors are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using Ideal Wealth Advisors, and may also be employees of Ideal Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of Ideal Credit Union or Ideal Wealth Advisors. Securities and insurance offered through LPL or its affiliates are:

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