Investment Consulting Group of Wells Fargo Advisors

We are honored to announce that our team, The Investment Consulting Group of Wells Fargo Advisors, has been recognized as one of the Forbes Best-In-State Wealth Management Teams for the second consecutive year.

This accolade represents an impressive list of just 29 teams throughout the entire state that come to work with one goal on their minds – helping clients succeed.

We are humbled to receive this award and see this recognition as a reflection of our ongoing commitment to always putting clients' interests first.

The Forbes Best-In-State rating algorithm is based on the previous year's industry experience, interviews, compliance records, assets under management, revenue and other criteria by SHOOK Research, LLC. Investment performance is not a criterion. Self-completed survey was used for rating. This rating is not related to the quality of investment advice and based solely on the disclosed criteria.

Best-In-State Wealth Management Teams 2024 www.forbes.com

I had a client compare me to their smart Wi-Fi home thermostat the other day.

They went on to say, "No, you are actually more like our entire smart-home system."

Turns out, they don't care to know exactly HOW their furnace works, just that it does. They don't care to peer out of their doorbell camera, unless it detects motion. They also don't care about what's going on in the basement, unless there is an active water leak threatening to ruin the carpet.

They don't want to constantly monitor every little element of their house, but DO want to know when something is broken.

"This is most important during a big storm." they said. "We just want to know that everything is ok, even if we aren't there to check ourselves."

They equated this to their financial plan that we have built over-time. They don't care to constantly pour over their investments, tax strategy, estate plans, etc., but DO want to know that they are ok or when a course correction is needed. They take great comfort in knowing that the important parts of their financial landscape are always being monitored.

This is particularly important during the 'storms' that we regularly see in global markets.

I can't say that I've ever been compared to a home thermostat, but it's pretty great.

What's your 'can't-live-without' smart home device?

Target Date Funds. Odds are, you own one in your 401k.

According to Fidelity, 96% of large employers use these as the default investment of choice in their 401k plans.

These funds reduce perceived risk (reduce stock exposure) over time based on the 'Date' targeted.

The idea is that participants would hold a conservative posture as they near retirement.

The thing is, what if 'conservative bonds' have stock-like volatility? That'll never happen? What about last year?

In a survey conducted by Behavioral Research Associates,
-57% of those surveyed thought they wouldn't lose money in a target date fund
-30% thought that a target date fund provided a guaranteed rate of return
-62% thought that they would be able to retire when the 'target date' arrived.

Unfortunately, nothing is guaranteed.

Now, target-date funds can play a role as a set-it and forget-it option for some, but KNOW WHAT YOU OWN!

Sports fans.

Most of us are in some capacity.

Year-in, year-out, we invest emotionally in ONE team to take us all the way...usually to be disappointed when their season falls short.

Many investors are doing this with their retirement savings (some unknowingly).

Investing too much of their savings in one company's stock.

The other day, I was reviewing a potential client's 401k statement which revealed a 50% allocation to their employer's stock. What's worse? They didn't even know it. This means that their future retirement livelihood depended largely on the performance of ONE company!

Maybe if we cheered for all teams, we'd be happier at the end of the season.

Similarly, if you diversify your investments over a broad range of public and private companies and cheer for capitalism, you might better enjoy your season of retirement.

The marshmallow. Underrepresented on social media.

Enter the Stanford Marshmallow Test, an experiment designed to measure a child's ability to delay gratification.

Children were given the option of waiting a bit to get their favorite treat, or receiving a less-desired treat immediately. One marshmallow now or two later...

They followed the children for 40 years and found that the group that waited patiently succeeded in whatever capacity they were measuring. Concluding that the ability to delay gratification was critical for success in life.

This is the same test that you are facing in your retirement savings. Do you want a dollar in your pocket now or potentially more dollars in your 401k later?

We help clients delay the right amount of gratification for their situation and help them understand what might mean for them at retirement.

How do you like your marshmallows?

A short story about Bruce & Betty.

Bruce, our 5 month-old English Springer Spaniel. Betty, our 3 year-old mini-Golden Doodle. We love them both, but they are very different dogs.

When given a bowl of food, Bruce inhales it, Betty rations it.

When next to a body of water on a hot day, Bruce finds mud to roll in, Betty lays in the shade.

Bruce's ideal day would be spent in a field full of birds, Betty's, spent on someone's lap.

Similar to your kids, you love them, but they're different.

Your kids have different spending habits, career trajectories, and hobbies. You want to be sure that the legacy you've worked hard to create benefits them in the best way possible. A trust can be the vehicle to help you benefit your kids each in their own, unique way.

We are fortunate to have a team of trust and estate planners to work with clients on their specific needs. Retirement planning is more than just investments.

Do you have dogs? Let's see them!

Some 'back of the napkin' math...To understand how much annual income your current level of assets might support in retirement, take your total assets and multiply that by 4% (0.04). This will give you your potential PRE-TAX sustainable income number. If you want to sharpen your pencil, find out how much you might need to retire HERE. https://engage.wf.com/auC1_y

"What should I be working on with my money right now?"

Financial goals for your 20s, 30s, 40s, 50s and 60s grapevinesix.s3.amazonaws.com

The fact that the 401k catch-up contribution is still available should be the real headline here. If you contribute the extra $7,500/year from working ages 50-65, that's an extra $112.5k, without even considering potential growth. Pay your future-self.

IRS Pushes Back New Roth 401(k) Catch-Up Rules. What to Know. www.barrons.com

Don't compare your retirement savings to the 'average' nest egg of other people your age. First, you don't want to be average. Second, most people haven't saved enough. If having more than the average makes you feel good, so be it, but all that really matters is if you have enough saved to support YOUR lifestyle in retirement.

Millions of boomers have nothing saved for retirement www.cbsnews.com

Do your kids have a part-time job? If they earn $, they can contribute to a Roth IRA. To set them up for the future, consider 'gifting' them the funds to contribute to the Roth and let them keep their earned $ to spend on themselves. Roth (after-tax) investments can be taken out TAX FREE after 59.5 y/o. They'll thank you later.

Teens working at summer jobs start building wealth with a Roth IRA grapevinesix.s3.amazonaws.com

401k contribution changes for next year...If you are maxing out your 401k/employer retirement plan AND taking advantage of the catch-up contribution allowance (over 50 y/o), pay attention. In 2024, you will no longer be able to make the catch-up contribution to your Traditional (pre-tax) 401k, rather only your Roth (after-tax) 401k. This applies to those that earn over $145k in 2023. Check to be sure that your employer offers a Roth 401k and consider establishing one if not already in place.

Earn Over $145k? You May Have to Pay Taxes on Your Catch-Up Contributions finance.yahoo.com

Avoidance-avoidance conflict. You may KNOW that you need to update estate planning documents, but avoid doing so because it's tough to think about your mortality. Additionally, without sitting in an estate attorney's office, how do you know what's right for you? We are fortunate to have great trust advisors that we involve in client conversations to help them understand what may be appropriate for their current phase of life and for the legacy they wish to create. This list can help you determine what you may need now — and in the future.

Estate planning documents — when you need them and why lifescapes.wellsfargoadvisors.com

Work for a publicly traded company? Do they match your 401k contributions? If so, there's a chance that their match is contributed in the form of company stock. Without rebalancing over time, you may end up with a massive chunk of said company stock. In short, your retirement may depend on the stock performance of ONE company, the company you already depend on to support your family.

I get asked all the time why I look at clients' tax returns. I'm not a tax advisor, why do taxes matter to me? Simple answer. Taxes will likely be your largest lifetime expense and virtually every piece of financial advice I give has a tax impact to you. If I know your tax situation, it might help me give more impactful advice on what securities to sell, when to sell, how to take income from your investments, or how much to contribute to retirement accounts. If your advisor isn't looking at your return, they may be shaping your financial future w/o understanding your biggest liability. It might be time for a second opinion. https://engage.wf.com/a8i4xf

We are honored to announce that our team, The Investment Consulting Group of Wells Fargo Advisors, has been recognized as one of the 2023 Forbes Best-In-State Wealth Management Teams.
This accolade represents an impressive list of just 23 teams throughout the entire state of Iowa that come to work with one goal on their minds - helping clients succeed. We are humbled to receive this award and see it as a reflection of our ongoing commitment to always putting clients' interests first.

The 2023 Forbes Best-in-State Wealth Management Teams rating algorithm is based on the previous year's industry experience, interviews, compliance records, assets under management, revenue and other criteria by SHOOK Research, LLC. Investment performance is not a criterion. Self-completed survey was used for rating. This rating is not related to the quality of the investment advice and based solely on the disclosed criteria

Best-In-State Wealth Management Teams 2023 www.forbes.com

While the outcomes of today's elections are historically important, the S&P 500 doesn't see it that way. Q4 returns after midterm elections have averaged +8%. Why? Markets hate uncertainty. The actual occurrence of the election is the elimination of uncertainty. A notable exception, though...returns tend to be lower during Fed tightening cycles... Chart from J.P Morgan Asset Management.

We are on the precipice of the largest wealth transfer in generations. Is your family ready? It is an intimidating space to wade in to, but we can help.

Be prepared. Important wealth transfer and estate planning steps lifescapes.wellsfargoadvisors.com

Are you prepared for a business transition? Here are eight best practices that can aid you in a successful business transition.

8 best practices to prepare for a business transition www.wellsfargoadvisors.com

It may not be said out loud, but the most important financial goal for most? Not outliving their money. Here are some steps to creating a sustainable income stream.

Managing your income in retirement lifescapes.wellsfargoadvisors.com

Inflation is EVERYWHERE, right? Not at Augusta National concession stands during The Master's this week.

Food at the Masters is so cheap, you could order one of everything, and it would only cost $60 www.businessinsider.com

Want to potentially reduce your taxable income and fund your future? Sounds pretty good, right? There's still time to fund IRA for 2021.

Time to fund your future www.wellsfargoadvisors.com

The House recently passed Secure Act 2.0. Big impacts for retirees and those working towards retirement. No idea how it might impact you? We can help.

House Passes the Securing a Strong Retirement Act www.investopedia.com

Forgetting about tax deductions or credits can be costly. To help you get organized for tax season, here's a list of useful items that can easily slip your mind.

Tax Time Tips and Reminders www.wellsfargoadvisors.com

Is the Backdoor Roth Conversion still allowed by the IRS? Yes! The Build Back Better Act, that would have eliminated the unique tax strategy was knocked down by Congress in 2021. For high earners/high savers who cannot contribute to IRAs, this is a need to know maneuver. https://engage.wf.com/acZzFN

Last week, a major tech company announced a 20 for one stock split. In July '22, shareholders will receive 19 additional shares for every share they own. The stock price responded very positively (the company also announced solid earnings). Keep in mind, these splits alone say nothing about the value of the company and don't impact the value of shareholders' positions. It's like having a pizza and cutting it in to 20 pieces. You still have one whole pizza, just cut in 20 smaller slices.

Having the right team can make all the difference in your company as well as when selling your business. Learn about the value that an investment banker or business broker can add to your business sale transaction.

Selling your business: Investment banker vs. business broker - lifescapes.wellsfargoadvisors.com lifescapes.wellsfargoadvisors.com

Social security income is not subject to tax in the top 10 best states for retiring

These are Key Traits for the Best Retirement States entrepreneur.com

Markets always have difficulty digesting rising rates. With The Federal Reserve determined to raise the fed funds rate in 2022, markets have dropped dramatically. Historically, though, the S&P500 has risen in the 12 months prior AND the 12 months after the first hike.

The S&P 500 is down about 7% so far this year. That's a big move considering we are only three weeks in to '22. Let's put that in perspective, though. Despite AVERAGE intra-year drops of 14.2%, annual returns were positive in 32 of the last 42 years. From JP Morgan Guide to the Markets - US Data are as of December 31, 2021.