Posts by plfarnworth

Are We On A Sugar High?

Posted by on Jan 23, 2018 in Financial Planner Boise ID | Comments Off on Are We On A Sugar High?

The stock market has been on a terror. The Dow blowing through a 1000 point increase in just a few days from the end of 2017 into the new year. The S&P rose 19.4% excluding dividends, in 2017 and is up again in 2018. Are we on a sugar high? Can this growth be sustained? Aren’t we do for a market correction? Following several economists and market strategists, there is a consensus that growth will continue in the US and international economies for 2018. Fidelity ‘simplified’ a complicated topic. Fidelity states there are 3 basic concepts for a bright economic outlook. We have resolved many of our structural issues. Economy is doing better than people think. Labor market remains strong. Unemployment rates are the lowest they have been in decades. No immediate inflation concerns CPI total and CPI core total hovering at 2% (per Factset) Company earnings have been growing again after S&P Dow Jones indices being flat for 2014, 2015 & 2016. (Stock prices follow earnings.) There is more stimulus coming out of Washington. Taxes- Tax Bill is estimated to cut 2018 tax obligations by about $200 Billion. Fidelity estimates that will increase GDP by 0.3%. Cut in corporate taxes will add about $10 in earnings to companies that are a part of the S&P 500 Index. Significant repatriation of cash sitting on foreign balance sheets is likely. ($2.3 Trillion available for S&P 500 Companies alone.) Deregulation (e.g. Energy, Financial, Healthcare) Fiscal Stimulus           -Infrastructure (next?)           -Increase in Defense spending           -Rebuilding of Houston, Florida & Puerto Rico The future is not without risks Geopolitical (North Korea, Iran/Saudi Arabia) US Trade Policy- (NAFTA, China i.e. protectionism) Slowdown in China? Monetary policy mistake? What is an investor to do? Be diversified among asset classes i.e. stock, international, bonds. (Multiple funds invested in Large Cap is not diversified.) Brian Westbury, Chief Economist for First Trust, states “The better strategy for most investors is don’t sell. Some sort of correction is inevitable but know one knows for sure when it will happen and few have discipline to take advantage of the situation.”  ...

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Financial Resolutions

Posted by on Jan 8, 2018 in Financial Planner Boise ID | Comments Off on Financial Resolutions

Financial resolutions are one of the top 3 new year resolutions (NYR) people make. What financial resolution should you make? It depends – – on what your money personality style is. Olivia Mellan describes 5 basic money personalities in her book Money Harmony. Most people are predominantly one style with some traits of a secondary style. Which style are you? Take this quiz to find out > Financial Personality Quiz . There isn’t one style that is better than another. Each has good qualities and short comings. The key is to keep your style in balance.   Hoarders love managing their money. They will have financial goals and prioritize these goals. They can complain about the cost of items – especially those seen as frivolous. Their gifts are ALWAYS practical – like the husband who gave his wife a vacuum for an anniversary present. (They are no longer married.) So, what would a new year resolution be for a Hoarder? Their house is usually in good financial order. A resolution would be along the line of ENJOYing their money and the benefits it can provide. NYR: Buy a frivolous gift for a loved one or for yourself. Take a friend to lunch. Practice giving to others weekly and giving frivolous, decadent gifts.   Spenders tend to be impulsive buyers. They are looking for immediate pleasure in their purchases. They tend to be emotional spenders – when the going gets tough the tough go shopping. They don’t like budgets. It is hard for them to hang on to any savings. NYR: Write down what you spend for 1-week listing amounts and items. Evaluate your behavior. Choose 1 thing to change like fewer lattes. Make a Spending Plan & monitor monthly (Perception change on purpose of budget.) Set up automatic saving contributions especially retirement.   Avoiders do just that – avoid all thing financial. They don’t open their mail regularly. Bills are frequently late. They don’t do bank reconciliations. They are the last to do their tax return, filing extensions. Avoiders don’t know what they have, what they owe or what they spend. NYR: Set up auto deposit for paychecks Set up auto pay of bills Do monthly review of your financial picture. You might invite a financially savvy friend to join you. Set a savings goal – for an emergency fund and retirement.   Ammassers are happiest when they have large amounts of money to spend, save or invest. They feel empty without having money to manage. They often equate their amount of money to self-worth & power. The flip is also true. If there is lack, they feel like a failure. NYR: Take a regular break from monitoring your money. Begin with 1 day and add additional days over time. Strive for only weekly monitoring. Find a desire, dream or goal that doesn’t take money and isn’t about money. Experiment with finding pleasure from something else like a hobby or volunteering.   Money Monks are uncomfortable with money. They tend to have a modest lifestyle. They feel money is evil or dirty. Too much money will corrupt you. They are the last to collect their inheritance. NYR: Study wealthy people you like & respect. How do they handle their money? Imagine having great wealth. What good things could you do with great wealth? Remember, every style has good qualities and short comings. Your resolution is to keep your money personality in balance.    ...

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Impact of New Tax Law

Posted by on Dec 26, 2017 in Financial Planner Boise ID | Comments Off on Impact of New Tax Law

Impact of New Tax Law Tax reform and tax cuts have been hotly debated these last few months. Multiple versions of a tax bill have floated between the House & the Senate. The independent Tax Policy Center estimates that 80% of taxpayers would see a tax cut. On average a household would see a break of $2,100 depending on income. The Tax Policy Center also estimates 5% of the highest earners pay more under the new plan. So how will your taxes be affected? is a tax calculator based on the new tax laws. You can enter simplified information and see the difference for you between the old law and the new law.  The calculator works best for taxpayers that don’t have pass through income (ie non-business owners) Hint: Have your 2016 tax return handy. So what tax laws stayed and what tax laws changed?  The following is an abbreviated comparison between the new tax laws and the old. With a 560-page tax bill there is much to be digested. IRS has been tasked with implementing rules and procedures for the new tax law. Hopefully it will bring greater charity, especially on pass through income. You may want to skip ahead and look at tax planning tips for 2017. Major Provisions in the Tax Cuts and Jobs Act Tax Tables                                        Single                                        Married, Joint Filer Tax Planning Tips for 2017 If your itemized deductions are under $24,000 annually for married or $12,000 for singles, push more itemized deductions into 2017. Make an estimated State Tax payment by 12/31/17. Pay your full property tax bill for 2018 by 12/31/17 If cash flow allows, make your charitable contributions for 2018 by 12/13/17....

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Be Happy!! Give!!

Posted by on Dec 13, 2017 in Certified Financial Planner Boise ID, Certified Senior Advisor Boise ID, Financial Advisor Boise ID, Financial Planner Boise ID, Financial Planners Boise ID, Financial Planning Consultant Boise ID, Financial Services Advisors Boise ID | Comments Off on Be Happy!! Give!!

“It is better to give then receive.” That is more than a quote. Generosity is one of the measurements that the World Happiness Report uses to evaluate the happiness of a nation. The more generous a nation is; the more likely the people are content. The US rated #2 on the World Happiness Report. The World Giving Index is used to score a nation’s generosity. It uses a few criteria like: Helping a stranger Donating money Volunteering time Being generous doesn’t always require money. Giving of your time, simple acts of kindness can impact others. If your giving isn’t generating a “happy” response maybe it is time to create a giving plan. A giving plan allows you to be intentional about your giving. And it is relatively easy to create. Creating a Giving Plan The first step is to identify 2 or 3 causes that are important to you. Those causes may be varied from environmental issues to animal protection. My top two causes are children and veterans. The second step look for charities that support your causes. This is the step that may take some time. The charity needs to meet the needs, have results and be good stewards. Fortunately, tools like and can help you evaluate your options. Established, effective charities will provide reports sharing how many they have served, the increase in activity from prior years. They will also keep administrative expenses under 25% of total expenses. With my cause for children, I support One Child Matters, and Idaho Youth Ranch. I will be adding a children’s charity in 2018 that is serving the Idaho City population. For my veteran’s cause, I support Helping the Home Front and Mighty Oak Warriors. And our office organizes a Christmas for a veteran family in need. I had been “advertising” in a resource newspaper for Idaho veterans. However, after several requests, they did not provide information on how many they were serving, what needs were being met. I was told 100% of the money remained in Idaho. My response was, “How much of that paid salaries? Are you volunteering your time?” Administrative costs are a part of operations, but they need to be reasonable. We are currently looking at a new resource for veterans for the 2018 year. The third step is to establish on annual donation target. How much do you want to give to each organization? What is your total donation goal? I read a book on giving that inspired me to donate one million dollars over my lifetime. That won’t happen without intentional giving. Creating a Giving Plan has many benefits: Intentional giving increases the impact on issues that matter to you. Giving to local charities can develop rewarding relationships. Eventual decline in charity solicitations and junk mail. Easy to say “no” to solicitations that don’t match your giving plan. I believe the US is a generous nation. The World Giving Index says we are. Make a difference in your community, state, nation or world. Be an intentional giver- Create a Giving...

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Control Your Medicare Premium

Posted by on Nov 28, 2017 in Financial Planner Boise ID | Comments Off on Control Your Medicare Premium

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