Reason Financial

In summary:

- American Economy: a surprisingly robust start to 2023.
- Pandemic cash is running out and student loan forbearance is coming to an end.
- Short-term savings and emergency fund alternatives abound; now is a good time to look at how you are holding your money and whether better yielding alternatives are appropriate.

To learn more click on this blog.

AN ECONOMIC AND MARKET UPDATE - JULY 2023 - Reason Financial EXECUTIVE SUMMARY American Economy: a surprisingly robust start to 2023. Pandemic cash is running out and student loan forbearance is coming to an end. Short-term savings and emergency fund alternatives abound; now is a good time to look at how you are holding your money and whether better yielding....

In financial planning, people love to ask what their “number” is for retirement. One of the most frequently asked questions is: How much do I need to have in order to retire? To learn more about it visit our blog "Your kids’ college: How much will it cost?"

Your kids’ college: How much will it cost? - Reason Financial In financial planning, people love to ask what their “number” is for retirement. One of the most frequently asked questions is: How much do I need to have in order to retire? A lesser-asked question is: How much do I need to save to pay for my kids’ college? This…

For many Americans, the decision to buy a house is the biggest financial decision of their lives up to that point. It’s also a topic surrounded by misinformation, from TikTok videos advocating real estate over a 401(k) to experts who warn against incurring any debt even in the form of a mortgage.

With home prices and mortgage rates in a constant state of flux in the wake of COVID-19, inflation, and the Federal Reserve’s response to inflation, we wanted to take a moment to review what you should consider when deciding whether to buy.

Homeownership: Should you take the plunge? - Reason Financial For many Americans, the decision to buy a house is the biggest financial decision of their lives up to that point. It’s also a topic surrounded by misinformation, from TikTok videos advocating real estate over a 401(k) to experts who warn against incurring any debt even in the form of…

When we asked AI if they are coming for us this is how they responded: If you’re asking whether AI will replace jobs or disrupt industries, it’s important to note that AI has the potential to both create and replace jobs, depending on the industry and specific roles. Some jobs may be automated, while others might be enhanced or transformed by AI technologies. The key for individuals and businesses is to adapt to these changes by learning new skills and staying informed about advancements in AI and related fields.

More about this in our blog called "We Asked AI."

We Asked AI - Reason Financial Great Question – Let Ask AI When we asked AI if they are coming for us this is how they responded: If you're asking whether AI will replace jobs or disrupt industries, it's important to note that AI has the potential to both create and replace jobs, depending on the…

How important is a 20% down payment?

When it comes to putting a down payment on a home, the 20% rule may be less important than your personal budget. Ultimately, your ongoing monthly mortgage payments are going to have a much bigger impact on your finances than your initial down payment, so as you think about how much to save and put down, it’s important to keep the different moving pieces in mind.

If you want to learn which ones, then check out our latest blog!

How important is a 20% down payment? - Reason Financial When it comes to putting a down payment on a home, the 20% rule may be less important than your personal budget. Ultimately, your ongoing monthly mortgage payments are going to have a much bigger impact on your finances than your initial down payment, so as you think about how…

April 2023 – Economic and Market Update

This year is better than last year so far, especially for fixed income. We are maintaining our focus on shorter duration due to a sustained inverted yield curve.

Inflation continues to ease. The costs of housing will likely take longer to correct than hoped for, with most loans being at very low interest rates obtained during the COVID pandemic.

The markets are still mismatching the Federal Reserve on interest rate expectations. We think this is a bad call based on language from Chair Powell and on the strength of the job market providing room for them to move.

To learn more click on our newest article below.

April 2023 – Economic and Market Update - Reason Financial EXECUTIVE SUMMARY This year is better than last year so far, especially for fixed income. We are maintaining our focus on shorter duration due to a sustained inverted yield curve. Inflation continues to ease. The costs of housing will likely take longer to correct than hoped for, with most loans…

We're just about a quarter of the way through the year. Here were some predictions for 2023 we posted earlier this year. Take a look at the infographic on our website and see how these are holding up.

2023 Predictions - Reason Financial

How do Americans spend their money? Check out this graph to find out..

How Americans Spend Their Money - Reason Financial

Congratulations to Jessica Folsom on her CPA Certification! It gives us enormous pleasure to congratulate one of our star employees, Jessica, on obtaining her CPA certification in Q1 2021. Jessica worked incredibly hard to accomplish this achievement – she obtained her Master’s in Accounting, accrued 2000 hours working under a licensed CPA, and passed the grueling 4-part CPA exam. No one attains this certification without a lot of determination.

Long nights of studying after long days of working are all that’s required – a strange sense of humor probably helps too. Congratulations, Jessica!

Congratulations to Jessica Folsom on her CPA Certification - Reason Financial SAN DIEGO – Reason Financial is committed to the development, training, and support of our entire team in the financial services industry. It gives us enormous pleasure to congratulate one of our star employees, Jessica, on obtaining her CPA certification in Q1 2021. Jessica worked incredibly hard...

A Pupdemic: The Pandemic Pet Boom Was Real, But It's Faded More Recently.

Pandemic Pet Boom - Reason Financial

How the Fed impacts rates: We get a lot of questions about the role of the Federal Reserve in interest rates. These questions range in specificity and are often influenced by the high volume of headlines speculating about what the Fed will do next or analyzing its role in the stock market and economy.

With the Central Bank forecasting a number of rate hikes in 2022, now is a good chance to go over how the Fed influences interest rates, including how the elusive “fed funds rate” works.

How the Fed impacts rates - Reason Financial We get a lot of questions about the role of the Federal Reserve in interest rates. These questions range in specificity and are often influenced by the high volume of headlines speculating about what the Fed will do next or analyzing its role in the stock market and economy. With…

April 2022 – Please take a look at our most recent Economic and Market Update.

April 2022 - Economic and Market Update - Reason Financial Executive Summary Common sense discussions around inflation are starting to take place, but the voices are still out in the wilderness. Market performance during times of high inflation (4.4% - 10%) is vastly different from periods of severe inflation ( >10%).The SECURE Act 2.0 has passed the House....

We found this reasonably interesting. Credit to Visual Capitalist.

To the Moon: The Cost of Space Flight Before and After SpaceX - Reason Financial

If you’re getting financial advice, fiduciary is one of the most important words for you to know… but it may not be as important as the word trust. By the end of this article, we hope you understand why.

At Reason Financial we’re held to the fiduciary standard on multiple levels. That means we look out for your best interests, not ours. Click the link below to learn more.

Financial Planning Research & News | What Is A Fiduciary? At Reason Financial we're held to the fiduciary standard on multiple levels. A fiduciary has a legal responsibility to put your financial well-being ahead of their own.

Many of our clients don’t know what probate is, and that is probably a good thing. Probate is the legal process by which a will is validated. If there’s no will, it’s the legal process of settling a person’s affairs.

What is Probate? - Reason Financial Many of our clients don’t know what probate is, and that is probably a good thing. Probate is the legal process by which a will is validated. If there’s no will, it’s the legal process of settling a person’s affairs. How probate works The process, when required, varies by state.…

First, you must understand this is not your fault. Unfortunately, it does not matter that you did nothing wrong; you still must take some action to protect your credit and identity from criminals. The good news is there are a few simple steps to greatly reduce the chance your credit and identity will be used without your permission.

IDENTITY WARS: How to Protect Yourself Tips from a Professional IT Consultant - Reason Financial Identity Wars: How to Protect Yourself - Tips from a Professional IT Consultant. By Daniel Covell, Founder, The Covell Group Market Update – December 2017 Daniel Covell, founder of The Covell Group, has been our IT and Data Security consultant for 7 years. During that time, he has partnered with u...

We all have dreams for what our retirement will look like — regardless of whether we remain in our ‘forever home,’ close to friends and family, or purchase a beach house on a remote island, financial freedom is a core component in any stress-free and fulfilling retirement journey. Not only does financial freedom allow us to explore our own personal growth without barriers, but it provides a sense of security should any unexpected changes arise. At Reason Financial, we work tirelessly to help people achieve financial freedom and adjust to life’s obstacles in retirement, and there is no better success story of this than Suzanne Tanous.

Living a Financially Free Retirement: One Woman's Journey from San Diego to a Simpler Life in Oregon - Reason Financial We all have dreams for what our retirement will look like -- regardless of whether we remain in our 'forever home,' close to friends and family, or purchase a beach house on a remote island, financial freedom is a core component in any stress-free and fulfilling retirement journey. Not only…

The situation between Russia and Ukraine is evolving rapidly. After gathering on the border with Ukraine, Russia has now started a broader invasion of the country. Initially Russian troops moved into disputed areas in the Donbas region, but Russian strikes in other parts of Ukraine are now underway.

In addition to the obvious humanitarian concerns, this conflict will have some impact to economies and markets across the globe.

Quick Take on Russia-Ukraine - Reason Financial The situation between Russia and Ukraine is evolving rapidly. After gathering on the border with Ukraine, Russia has now started a broader invasion of the country. Initially Russian troops moved into disputed areas in the Donbas region, but Russian strikes in other parts of Ukraine are now underway....

The second year of Covid has come to a close with a new variant taking the stage. Markets performed well, except for tech equities and bonds which took a beating into the end of the year. Take a look at our Q1 2022 Economic and Market Update on our website.

Financial Planning Research | July 2021 - Economic And Market Update Predicting the future is a fickle thing, but a common concern is that the U.S. will go the way of Japan with the amount of debt we are taking on as a percentage of GDP.

Everyone likes the delivery of financial and tax advice a little differently, and that is perfectly okay with us. We have adjusted our communication styles to whatever may best fit each situation. Here is where we have found the most success in the different ways we communicate.

Effective communication is what makes us different - Reason Financial As we enter the second part of the year many of us are now settled into our new normal. In these past few months, video conferencing technology has emerged as the unsung hero to keep us connected both professionally and personally. Zoom meetings have run the gamut of possibilities including ev...

Retirement planning is one of the most fundamental parts of our job. In order to build you the best possible plan, we want you to understand the basics of the different types of retirement accounts. This can help you share information with us. It can also help you understand the “how” and “why” of the plan we build for you.

https://yourreason.com/setting-the-record-straight-retirement-accounts/

Setting the record straight: Retirement accounts - Reason Financial Retirement planning is one of the most fundamental parts of our job. In order to build you the best possible plan, we want you to understand the basics of the different types of retirement accounts. This can help you share information with us. It can also help you understand the…

We have just published our quarterly economic update. As always, our desire is to help you make rational, informed and well-reasoned decisions, and we thank you for your continued trust and support. Your input is always welcome, and we ask that you contact us with any questions or concerns.

https://yourreason.com/october-2021-economic-and-market-update/

Financial Planning Research | July 2021 - Economic And Market Update Predicting the future is a fickle thing, but a common concern is that the U.S. will go the way of Japan with the amount of debt we are taking on as a percentage of GDP.

This is such an honor to be asked to share my thoughts about my experience as a remote employee. I know working remotely for many of us has been very difficult during this pandemic. For me, it has been life as usual. I’ve been doing this for over four years now!

https://yourreason.com/being-a-remote-employee-the-good-the-bad-and-the-ugly/

Being a Remote Employee – The Good the Bad and the Ugly - Reason Financial This is such an honor to be asked to share my thoughts about my experience as a remote employee. I know working remotely for many of us has been very difficult during this pandemic. For me, it has been life as usual. I’ve been doing this for over four years…

"For 2021 through 2025 taxable years, a qualified S-Corporation or Partnership that is doing business in California may elect to pay a pass-through entity tax equal to 9.3% of its qualified net income."

Read this article to learn more about how this change will impact your small business. As always, we are here to help!

Passthrough Entity Tax - Reason Financial TAX UPDATE FOR CALIFORNIA BUSINESS OWNERS Elective Passthrough Entity Tax For 2021 through 2025 taxable years, a qualified S-Corporation or Partnership that is doing business in California may elect to pay a pass-through entity tax equal to 9.3% of its qualified net income. This change allows Califo...

In honor of Veteran's Day, we at Reason Financial would like to take the time to thank our fearless Veterans that protect and serve our nation. It is also important today that we highlight the brave and selfless military families who support their communities while their loved ones are away overseas.

Check out our article on the Military Spouse experience to learn more about how these resilient individuals celebrate the beautiful moments amidst the hardship.

Happy Veteran's Day, from all of us at Reason Financial!

Navy Wife Life - Reason Financial I was living in Long Island, New York on the unforgettable morning of September 11, 2001, when my life changed forever, in an unexpected way.  The events of that day inspired many men and women to put the needs of their country first and join the military, including my friend…

The magnitude of the Apollo 11 moon landing was felt across the globe, and is one of the most significant events in US history.

While most of our staff were not born yet at the time of the landing, at Reason Financial, reliving the Apollo 11 story keeps our daily mission top-of-mind. Sure, remarkable science, innovative technology and unmatched brainpower got that crew to the moon; but they couldn't have done it without communication, teamwork, and personal responsibility. Listening to '13 Minutes to the Moon' reminds us that while our team is small, our approach to our work makes us mighty.

13 Minutes To The Moon – The Apollo 11 Story - Reason Financial It is not everyday that you come across something worthy of bringing the attention of others to. The next show to stream or movie to watch or book to read is so often a matter of taste more than anything else. However, occasionally something comes along that hits all the…

Is fiduciary a part of your vocabulary? It should be.

We at Reason Financial are held to a fiduciary standard, meaning we are legally obligated to put your financial well-being above our own. That means we not only want to keep your best interest in mind, we have to.

Read more to find out if your advisor is legally obligated to act in your best interest.

Financial Planning Research & News | What Is A Fiduciary? At Reason Financial we're held to the fiduciary standard on multiple levels. A fiduciary has a legal responsibility to put your financial well-being ahead of their own.

The March 2021 stimulus bill increased the value of the credit, as well as the age limit, which means more money is coming to more families, soon. Read more to find out what these CTC changes will mean for you and your family.

Advance Child Tax Credit Payments - Reason Financial Tax Filing Update Pursuant to the changes set forth in The American Rescue Plan, the Department of Treasury will be automatically issuing advance payments of the Child Tax Credit to eligible taxpayers beginning July 15th 2021. Here is what you should know: For tax year 2021 the Child Tax Credit…

As PB locals, Hoboken Pizza is one of Reason Financial's favorite spots to grab a brew and a slice. Over the past year and a half, this small business has survived two extended tax seasons, closures, and ever-changing mandates, relying on its long-time regulars and strong community support to stay afloat.

We sat down with owner Tony Kruk to discuss what it took for Hoboken to continue serving up great slices, while maintaining their strong culture of community service.

Hoboken Pizza - Reason Financial Hoboken Pizza & Beer: How this local institution’s community ties helped them survive the pandemic. As Pacific Beach locals, one of Reason Financial’s go-to joints in the area is Hoboken Pizza & Beer. This San Diego institution not only serves up some of the best slices in town, but…

Read our update on AB150 allowing CA business owners to deduct CA income taxes above and beyond the SALT limit- https://mailchi.mp/yourreason/7pafo1eq55-5632733