FairWay Financial

Planning a trip abroad? 🌎✈️ The Fed's potential interest rate cuts could impact your travel budget.

Here's how the Fed's decisions could impact your next international trip:
▪️ A strong U.S. dollar has made international travel more affordable recently
▪️ Fed rate cuts may weaken the dollar, potentially increasing costs for American travelers
▪️ Countries like Japan have been especially attractive due to favorable exchange rates
▪️ The timing of your trip could affect your purchasing power overseas
▪️ Consider how currency fluctuations might impact your overall travel expenses

The global economy affects us all, even on vacation. Understanding these trends can help you make more informed choices about when and where to travel. 💡💼



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The Fed may soon cut interest rates. That could make your next trip abroad more expensive The Federal Reserve raised rates aggressively to tame high inflation, supporting the U.S. dollar. Cutting rates may weaken it versus foreign currencies.

Wondering what to tell your financial pro? Check out this quick video for guidance!

Top 5 Things to Tell Your Financial Pro Here are the top 5 things your team may want to hear.

Quarterly Market Review and Outlook!
Strong gains by a select group of stock market darlings, led by Nvidia, pulled the S&P 500 index higher in Q2 but masked weakness in the broader universe of U.S. and international stocks.

Check out our latest market commentary to learn more. https://bit.ly/3YgMnl1

When I see the GDPNow chart, I’m reminded of Newton’s first law: an object in motion will stay in motion unless acted upon by a force. The force that needs to act is the Fed, and my expectation is that The Fed will make some moves by the end of the year to help manage GDP’s trend.

Stock markets continued to rally last quarter with several major indices globally achieving record highs. With so much positive momentum in markets, what could go wrong?

Check out our latest market commentary to learn more. https://bit.ly/3Jemr0E

Charlotte's population grew by nearly 2% last year and is now the 22nd largest metro area in the country. It's not slowing down either as we are also the sixth fastest-growing area in the country.
Any guesses as to how big we'll be a decade from now?

Charlotte’s population surge among highest in US The Charlotte metro posted the nation’s sixth-largest increase in population count last year, new data from the U.S. Census Bureau shows.

🌟 When will the Fed make its first move? More economists are starting to believe it’s a late 2024 decision. But remember, the stock market is a discounting tool, meaning it’s looking 6 to 9 months into the future. So, today’s S&P 500 is seeing business conditions in the October-to-December timeframe.

The average lasts for 18 years. Are you prepared to fill that many days?

18 Years’ Worth of Days The average retirement lasts for 18 years, with many lasting even longer. Will you fill your post-retirement days with purpose?

🍎Food prices continue to rise despite cooling inflation. Food costs rose by 0.4% in January, outpacing the overall 0.3% rise in the Consumer Price Index (CPI). Supermarket prices are now 25% higher than in January 2020, outpacing inflation, which has increased by 19% over the same period.

You'll notice that the grocery store isn't the only place prices have gone up. Restaurant prices are increasing at a faster pace, with a 5.1% jump compared to a 1.2% increase in grocery costs.

This has a significant impact on your wallet, especially if you're among the two-thirds of voters who feel the impact of inflation most through food prices.

What's causing these changes?
🔺 Higher labor costs at manufacturers
🔺 Record-low cattle numbers
🔺 Potential corporate price hiking
🔺 Supply issues and climate change affecting certain food categories

This isn't just about your grocery bill. It's about understanding the broader economic trends affecting your daily life and investing strategy.

The good news? Grocery prices are predicted to moderate and potentially decrease slightly by the end of the year. However, eating out may still be pricier, with restaurant meal costs expected to rise by 4.7%.

It's a good reminder that while we can't control what the economy does, we can control our response to it.



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Inflation is cooling. So why are food prices, from steak to fast-food meals, still rising? Higher food prices partly caused the hotter-than-expected inflation report. Getting pinched at the grocery store is souring Americans on the economy.

In a year like 2023, when the markets rallied with the Standard & Poor’s 500 index finishing up 24%, it can be hard to keep a clear perspective. As we step into 2024, whispers of uncertainty are already surfacing, but remember–it's crucial to stay the course.

Take a moment to study the accompanying chart. It’s a testament to the fact that despite the roller coaster ride of the 10-year Treasury throughout the year, by year-end, it almost returned to its starting point. It's a vivid reminder that the financial markets move in cycles, which can be difficult to predict.

So, as we navigate through the complexities of 2024, let's stay focused on the bigger picture. Let's remember our goals, our time horizon, and our risk tolerance. Let's continue to make portfolio decisions based on careful guidance and insight rather than knee-jerk reactions to daily headlines or market cycles.

Here's to a disciplined, carefully constructed approach to investing in 2024.

Financial markets had a banner Q4 with stock and bond markets staging a big rally. What led to such a significant shift in markets? Check out our latest market commentary to learn more. https://youtu.be/LxlBzWGw_No

Monthly Market Recap
Check out the latest insights from our Investment Committee on key financial market and economic developments over the past month. https://bit.ly/48Q6Dff

What they took away in 2022, they gave back in 2023.

What Are the Magnificent 7 Stocks? The Magnificent 7 stocks were market leaders in 2023 and have been long-time outperformers. Here's a closer look at the group of mega-cap stocks.

Feeling overwhelmed about managing your inheritance? You're not alone. Many individuals expecting an inheritance are uncertain about handling their newfound wealth. In fact, nearly twice as many women (23%) feel uncomfortable managing their inheritance compared to men (12%). Seeking guidance from a trusted financial professional may help provide the support needed to navigate this transition successfully.

What's your experience with this? Does the data reflect your own personal experience?


Source: NewYorkLife.com, July 19, 2023

The New York Life Wealth Watch survey reveals some eye-opening statistics about the "Great Wealth Transfer." On average, adults who expect to receive an inheritance anticipate a value of $738,724.23. However, 58% of them anticipate inflation to impact the value significantly. It's essential to have a strategy in place to manage your inheritance.

Source: NewYorkLife.com, July 19, 2023

Did you know that not all individuals inheriting wealth are confident in managing their newfound funds? Only 42% of adults expecting an inheritance feel very comfortable financially handling it. Furthermore, inflation is expected to have a medium-to-large impact on the sum inherited by 58% of adults. It's crucial to prepare and consider seeking guidance to make the most of your inheritance.

Source: NewYorkLife.com, July 19, 2023

The "Great Wealth Transfer" is underway! According to the New York Life Wealth Watch survey, 15% of American adults expect to receive an inheritance in the next decade. While this may provide a financial lift for some, it's important to consider the challenges we face in today's economic environment. From inflation to growing credit card debt and unexpected expenses, our financial progress can be impacted.

What are your thoughts?


Source: Finance.Yahoo.com, July 19, 2023

📅 Retirement financials can be stressful, especially when it comes to understanding the complex rules around required minimum distributions (RMDs) for retirement accounts. This year is particularly complicated due to a variety of requirement changes.

Here are a few things to keep in mind:
▪️ RMD rules have changed over the years, with the age requirement increasing from 70½ to 72 and now potentially to 73.
▪️ The rules for inherited IRAs are even more complicated, leading to penalties for missed RMDs.
▪️ It's important to know which account owners need to take an RMD and when.
▪️ If you skip or don't withdraw enough, there can be a penalty of up to 25% on the amount you should have withdrawn.
▪️ Requesting a penalty waiver is possible, but there's no guarantee it will be granted.

Stay informed and consult with a financial expert to navigate these retirement withdrawal rules effectively. 💼💡



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Retirement withdrawal rules are 'crazy' this year, IRA expert says. Here's what you need to know Here's how to know if you need to take a required minimum distribution in 2023, according to an IRA expert.

Federal Reserve Chair Jerome Powell has indicated the possibility of one more rate hike before the end of the year, but the market and a few Fed presidents are suggesting rates may be high enough.

Both Atlanta Federal Reserve President Raphael Bostic and Philadelphia Federal Reserve President Patrick Harker have joined the chorus by questioning the necessity of further rate hikes, bringing the central bank into the spotlight.

With only two meetings remaining, it is our hope that Powell and his team can navigate through the confusion caused by various economic reports and reach a consensus on future rates.

Despite a promising start, financial markets faltered in Q3. We continue to advocate caution and emphasize risk management amid an uncertain economic outlook. Check out our latest market commentary to learn more. https://bit.ly/3PTP5a5

You face sequence of returns risk. Know what it is?

The Investment Risk No One’s Ever Heard Of You face a risk for which the market does not compensate you, that can not be easily reduced through diversification.