Hackett Financial Group LLC

Look who recently won the Five Star award and is being featured as one of the outstanding wealth managers in Austin, San Antonio and Central Texas. Check out his Profile, and thank you for your support!

Meet Five Star Wealth Manager Scott G. Hackett, CFP®, an award-winning wealth manager in Wimberley, TX. Scott G. Hackett, CFP® is among the 7% of Austin, San Antonio and Central Texas wealth managers to receive this award.

Found this sweet dog wandering around our office. RR12 and E. Summit. Please call if he is yours or if you know the owner. 512-847-0630

Hackett Financial Group LLC Wealth Management: Investments - Financial Planning - Income Tax Preparation

Tax Season News and Survival Tips Taxpayers should be aware of these filing tips and last-minute opportunities for tax savings.

IRS Releases Standard Mileage Rates for 2024 The IRS has released the standard mileage rates for 2024.

Federal Tax Filing Season Starts Soon The IRS announced its starting date for accepting and processing 2023 tax-year returns is Monday, January 29, 2024.

The Hackett Financial Group LLC / Wimberley Valley Tax Service is looking for a part-time team member to join our wealth management / tax office. This position is very flexible. Depending on the individual, it can be a permanent part-time position or quickly transition to full time. . Great opportunity for the right candidate! If you are interested in learning more, please send your info to [email protected].

Hackett Financial Group LLC Wealth Management: Investments - Financial Planning - Income Tax Preparation

Hackett Financial Group LLC has an opening for a part-time flexible position in their Wimberley wealth management / tax office located at 840 E Summit Drive. If interested please email [email protected].

Hackett Financial Group LLC Wealth Management: Investments - Financial Planning - Income Tax Preparation

We are looking for a part-time team member to join our wealth management / tax office. Great opportunity for the right candidate! If you are interested in learning more, please send your info to [email protected].

Hackett Financial Group LLC Wealth Management: Investments - Financial Planning - Income Tax Preparation

Fiduciary Investment Advisors: Maximizing Your Financial Potential

When it comes to managing your finances and investments, making informed decisions is crucial. This is where the expertise of a fiduciary investment advisor can make all the difference. Fiduciary Investment Advisors are professionals who prioritize your best interests and work diligently to optimize your financial potential.

At its core, fiduciary duty means that the advisor must act in the client's best interest, putting their needs before their own. This sets fiduciary investment advisors apart from other financial professionals who may have conflicts of interest that could influence their recommendations. By working with a fiduciary, you can have peace of mind knowing that your advisor is committed to acting solely in your best interest.

One of the key advantages of partnering with a fiduciary investment advisor is their objective and unbiased guidance. They are obligated to provide advice and recommendations based on thorough analysis, rigorous research, and an in-depth understanding of your unique financial goals and risk tolerance. This level of professionalism ensures that the strategies and investment opportunities presented to you are tailored to your specific needs, rather than being driven by any external influences.

Fiduciary investment advisors also excel in providing comprehensive financial planning services. They go beyond simple investment management and take a holistic approach to your financial well-being. They will assess your current financial situation, develop personalized strategies to help you reach your long-term goals, and continuously monitor your progress. This ongoing support and guidance are invaluable in navigating the complex and ever-changing investment landscape.

Moreover, fiduciary investment advisors have a fiduciary duty to act prudently and with diligence. They must continuously evaluate the performance of your investments and make necessary adjustments to ensure alignment with your goals. This active management approach helps maximize returns while mitigating potential risks.

Choosing a fiduciary investment advisor is an important decision, and it's essential to find someone with the right qualifications and expertise. Look for advisors who are registered with reputable regulatory bodies, such as the Securities and Exchange Commission (SEC) or the Financial Industry Regulatory Authority (FINRA). Additionally, seek out advisors who have a track record of success and positive client testimonials.

In conclusion, fiduciary investment advisors play a vital role in optimizing your financial potential. Their commitment to acting in your best interest, unbiased advice, comprehensive financial planning, and diligent management set them apart from other financial professionals. By working with a fiduciary investment advisor, you can have confidence in your financial decisions and take significant steps toward achieving your long-term goals.

What You Should Know About the Debt Ceiling Debate

Both sides have clearly stated that they will not allow the U.S. government to default on its obligations. But time is growing short.

On Monday, May 22, President Joe Biden and House Speaker Kevin McCarthy met at the White House to discuss raising the statutory limit on U.S. government debt, generally called the debt ceiling. Although both leaders termed the discussion "productive," there was no resolution, and their respective negotiating teams continued discussions.1 Here are some answers to questions you may have about the issues behind the current impasse.

What is the debt ceiling? The debt ceiling is a statutory limit on cumulative U.S. government debt, which is the sum of annual deficits since 1835 — the only time the U.S. government had no debt — plus interest owed to investors who purchased Treasury securities issued to finance the debt.2 It limits the amount that the government can borrow to meet financial obligations already authorized by Congress. It does not authorize future spending. However, in recent years, raising the debt ceiling has been used as leverage to negotiate on the federal budget.

Why do we have a debt ceiling? A debt ceiling was first introduced in 1917 to make it easier for the federal government to borrow during World War I. Before that time, all borrowing had to be authorized by Congress in very specific terms, which made it difficult to respond to changing needs. The modern debt ceiling, which aggregates almost all federal debt under one limit, was established in 1939 and has generally been used as a flexible structure to encourage fiscal responsibility.3 Since 1960, the ceiling has been raised, modified, or suspended 78 times, mostly with little fanfare until a political battle in 2011.4

How much is the debt ceiling? The current limit was set by Congress at about $31.4 trillion in December 2021.5 For perspective — the debt was less than $6 trillion in 2001, when it began to rise due to tax cuts and increased military and national security spending in response to 9/11. It has tripled since 2008, driven by reduced tax revenues and stimulus spending during the Great Recession and the COVID-19 pandemic.6

When will we reach the debt ceiling? The government reached the $31.4 trillion limit on January 19, 2023. Since then, the Treasury has been using short-term accounting tactics (called "extraordinary measures") to allow spending for a limited period without raising the ceiling.7 According to Treasury Secretary Janet Yellen, this extension is expected to expire on or shortly after June 1, 2023.8 The so-called "X-date" could vary because tax revenues are not fully predictable. It has come more quickly than anticipated, due to postponement of the tax-filing deadline for disaster-area taxpayers in certain states and lower capital gains tax receipts.9

What will happen if the ceiling is not increased? The U.S. government will not be able to pay all of its financial obligations. This has never happened, so it is difficult to predict exactly how it would play out. The Treasury could still pay some of its obligations from incoming revenues, but there would have to be choices regarding what bills would not be paid. These are some of the possible results.

The government could default on its bond payments. U.S. Treasury securities are generally considered among the safest investments in the world because they are backed by the full faith and credit of the U.S. government as to the timely payment of principal and interest. These securities are widely held by individual and institutional investors as well as local, state, and foreign governments. Even the possibility of defaulting on interest payments could disrupt global markets, and an extended default could have serious economic repercussions around the world. An estimate by Moody's Analytics suggests that a one-week default could send the U.S. economy into a mild recession with the loss of 1.5 million jobs and real GDP contraction of 0.7 percentage point. A default through the end of July (which seems highly unlikely) could cause a deep recession with 7.8 million lost jobs and a real GDP decline of 4.6%. Any default, or even near-default, could result in downgrading the U.S. credit rating, as occurred in 2011. This would make borrowing more expensive, adding to the ongoing problem.10
Government payments could be delayed. Social Security and Veterans benefit payments could be delayed, causing hardship to those who depend on them for immediate needs. The same is true for wages of U.S. government workers, and late payments to government contractors could mean they may not be able to pay their employees. Late reimbursements to Medicare providers could strain smaller hospitals and medical practices. Any late payments would be made once the debt ceiling is raised, but the short-term consequences could be painful.
What are the issues in the negotiations? According to public statements from negotiators, key issues include caps on future spending, use of unspent COVID-relief funds, work requirements for certain social programs, and expediting rules for energy projects. Both sides have agreed to spending caps in general terms, but they differ on how caps should be structured. The 2011 debt ceiling impasse resulted in spending caps, which had mixed results over the long term.11 Any caps would only affect discretionary spending, which accounts for just 28% of federal spending, almost half of which is for defense. The rest is mandatory spending, including Social Security and Medicare (which will account for nearly 35% of federal spending in 2023) and interest on the national debt.12

Will there be a resolution? It is impossible to know for sure, but both sides have clearly stated that they will not allow the U.S. government to default on its obligations. However, time is growing short, and any agreement must pass in both the House and the Senate, requiring at least some bipartisan support. Speaker McCarthy has said that an agreement must be reached early enough to give House lawmakers a required 72-hour period to review the legislation before the June 1 deadline.13 If an agreement is not reached by that time, a temporary measure could suspend or raise the ceiling for a limited period to provide more time for negotiations.

Should investors worry? Although a default could have serious market repercussions, the most likely scenario is that the ceiling will be suspended or raised close to the deadline. If so, any related market volatility is likely to be temporary.14 While the U.S. debt is a serious issue, your investment strategy should be based on your long-term goals and risk tolerance, and it's generally wise to stay the course through political conflicts.

The principal value of Treasury securities fluctuates with market conditions. If not held to maturity, they could be worth more or less than the original amount paid. Forecasts are based on current conditions, are subject to change, and may not come to pass.

1, 11, 13) The New York Times, May 22, 2023
2, 4, 6, 8) U.S. Treasury, 2023
3) Bipartisan Policy Center, 2023
5, 7, 12) Congressional Budget Office, February 2023
9-10, 14) Moody's Analytics, May 2023

😄11 Year Five Star Wealth Manager Award Winner!
Scott G. Hackett, CFP®
840 E. Summit Drive
Wimberley, Texas 78676
Off: (512) 847-0630

Hackett Financial Group LLC Wealth Management: Investments - Financial Planning - Income Tax Preparation

Hackett Financial Group LLC / Wimberley Valley Tax Service is accepting new clients. 512-847-0630 or [email protected]

Federal Tax Filing Season Has Started The IRS announced that the starting date for when it would accept and process 2022 tax-year returns was Monday, January 23, 2023.

Tax Time!
We are accepting new tax clients!
Call or Stop by to pick up a tax organizer.

512-847-0630
[email protected]

Hackett Financial Group Hackett Financial Group LLC (HFG) is a registered investment advisor in the state of Texas. HFG is an independent fee-only firm that provides professional investment management, comprehensive financial planning, wealth management services and income tax preparation. Our offices are located in Wimbe...

IRS Releases Standard Mileage Rates for 2023 The IRS has released the standard mileage rates for 2023.

I am excited to introduce you to Erik Drewry, MBA, APMA®, CRPC® who has recently joined our practice as an advisor and principal of our firm!

Erik was born in Lafayette, Louisiana and received his BS in Mechanical Engineering from University of Louisiana at Lafayette. After receiving his BS, he moved to the Midwest to further his education at Purdue University obtaining an MS in Materials Engineering and his MBA from Northwestern University. Erik is also a candidate for the CFP® certification having completed the education requirements and passed the exam to become a Certified Financial Planner™. Erik and his wife Monica have three sons and two grandsons.

Prior to joining the Hackett Financial Group LLC, Erik’s career was focused on areas of operations and general management. He spent the first fourteen years of his career at Cummins Inc. where he served as the GM of the Global Oil & Gas market. In 2013, Erik returned to Louisiana and started his own Drilling service company aimed at improving drilling efficiencies through advanced downhole technology and data analytics. In December 2020, Erik exited the company that he founded as part of an acquisition.

IRS Increases Standard Mileage Rates for Last Half of 2022 The IRS has increased the standard mileage rates for the last half of 2022.

The Health of Social Security: Some Good News and Some Bad News

Handling Market Volatility Follow these common-sense tips to help handle market volatility.

How to Avoid Making Emotion-Based Financial Decisions Making investment decisions based on fear or fluctuating market activity can keep you from meeting your goals. Here's how to keep emotions out of the equation and stick to the plan.

Five Lessons To Remember During Bear Markets The real value of a bear market may be that it gives investors, who are temporarily frozen within its grip, the opportunity to learn or relearn important lessons regarding risk and diversification. For savvy investors, a bear market also creates a period for looking beyond emotional headlines and st...

Holding Equities for the Long Term: Time vs. Timing Consider the following when creating an investing strategy for the long term.

Remaining Invested

Hackett Financial Group LLC Wealth Management: Investments - Financial Planning - Income Tax Preparation

Federal Income Tax Returns Due for Most Individuals The federal income tax filing deadline for individuals is generally Monday, April 18, 2022 (Tuesday, April 19, 2022, if you live in Maine or Massachusetts).

Watch Out for These Common Tax Scams Our latest Client Alert takes a look at common tax scams.

Seeking full-time and part-time office staff for Wealth Management / Tax Preparation firm. We will welcome any tax preparation / wealth management experience and/or credentials (CPA, CFP, EA) but we will train new team members who have the aptitude, willingness to learn and a great attitude. Phone 512.847.0630 or email: [Email hidden]

Federal Tax Filing Season Has Started The IRS announced that the starting date for when it would accept and process 2021 tax-year returns was Monday, January 24, 2022.

Plan Ahead to Help Ease the Burden of Tax Season (Feb) Consider trying to fulfill your civic duties this year — and potentially avoid running afoul of the IRS — by addressing important priorities before you begin filling out tax forms.

If you are earning money from a hobby, be sure to check these tips: http://go.usa.gov/xdQYX