Second Quarter – 2023
Welcome!
This is the next edition of timely updates from Scholar Financial Advising.
We’re glad you’re here!
Advisor Desk
We started the second quarter with the impacts of quickly rising interest rates on banks headlined by the collapse of Silicon Valley Bank. This led to many questions regarding bank safety, FDIC insurance, and overall asset protection (related links below). This month the Federal Reserve held back on raising rates, but provided guidance that rate hikes later this year were likely.
The US stock market rocketed through the second quarter reaching the highest point of the year before pulling back over the past two weeks. This growth has largely been driven by technology stocks and the excitement around artificial intelligence. Don’t worry, this newsletter was not written by ChatGPT.
Summer is historically a slow time for markets and personal finance. This makes it a great time to get organized and prepare for the inevitable chaos that surrounds bank accounts toward the end of the year led by tax loss harvesting, retirement contributions, benefit changes, bonuses, and lumpy spending due to the holiday season.
There are a variety of links and SFA updates below for you to dig into.
As always, feel free to reach out if you have any questions about your finances.
SFA Updates
We now offer the option to designate a Trusted Contact.
A Trusted Contact is someone you would like us to contact in the event that we notice activity that makes us concerned about your mental capacity or financial exploitation. Listing a Trusted Contact DOES NOT give this person authority to access your account, make transactions, initiate a transfer or withdraw cash or securities from your account. It simply allows us to reach out to someone to discuss odd activity related to your finances and ask that they check in with you.
Click the link below if you are interested in filling out this optional form.
Thank you to everyone who attended our annual Client Appreciation Night in Winston-Salem in May. It was great to see so many clients in person and we look forward to scheduling future events!
The most popular book (by far) in our book giveaway was The Psychology of Moneyby Morgan Housel. A Random Walk Down Wall Street by Burton Malkiel was second. All the books that night were picked by and personal favorites of your advising team.
Things We Are Watching
- Inflation continues to slow and the Fed has pulled back on raising rates for now
- Self employed retirement plans that traditionally wouldn’t allow Roth contributions are now able to take Roth contributions (affecting SEP IRAs and Solo 401(k) accounts), but brokers are slow to catch up in making these changes possible
- Commercial real estate, especially office properties, are under pressure and will be refinancing debt at significantly higher rates potentially leading to further pressure in this area
What We Are Reading
Reminders
Need more help?
Contact us to inquire about professional recommendations, including CPAs.
When should you contact us outside of your annual meeting?
Anytime you have a build up of cash, change your job, make or consider a major purchase, relocate, or are concerned about the allocation of your portfolio.
Reach out anytime with questions or to schedule a meeting.
We look forward to hearing from you!
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