Zero-Based Budgeting for Individuals and Households

Frank Yozwiak

Weekly Update

Key Takeaways: In Zero-Based Budgeting (ZBB), you start your budget from zero, then only add in what is truly needed. ZBB is not only useful in a business environment, but also for individuals and households. ZBB is a great way to determine whether your spending is aligned with your goals, priorities, and values.     … Continued

Student Loan Forgiveness Best Practices

Frank Yozwiak

Weekly Update

Key Takeaways: Federal student debt cancellation up to $10,000 ($20,000 for Pell grant recipients) Cancellation limited by income ($125,000 single, $250,000 for married couples) Limited PSLF Waiver ends October 31, 2022; review your eligibility     This past Wednesday, the President announced a student debt cancellation plan. Unfortunately for borrowers hopeful to log in to their … Continued

Social Security: Whether to Wait to Start Taking Retirement Benefits

Frank Yozwiak

Atheneum

Key Takeaways: You could be facing up to a 30% reduction in your PIA by taking Social Security retirement benefits at age 62. By waiting until age 70, your retirement benefits will be roughly 32% higher than your PIA. The breakeven for taking Social Security retirement benefits at age 70 compared to age 66 is … Continued

A History of the Individual Income Tax in America

Frank Yozwiak

Atheneum

Key Takeaways: Individual income taxes are the largest source of revenue for the government The 16th Amendment gave Congress “the power to lay and collect taxes on incomes” History has shown that tax revenues increase when rates are cut     Taxes have been part of our country’s history from the very beginning – No … Continued

Taxes in Retirement – Case Studies

Frank Yozwiak

Atheneum

Key Takeaways: Your sources of income will change, but you will still owe taxes in retirement. In general, your principal (or “cost basis”) will be returned to you tax-free. A diversified portfolio protects in down markets and provides flexibility when planning for taxes.     When you’ve spent your adult life working and saving, retirement … Continued

The Inverted Yield Curve of April 2022

Frank Yozwiak

Weekly Update

Key Takeaways: The 2-year/10-year yield curve inverted for the first time since 2019. This type of inversion has preceded the last eight recessions. Proper portfolio allocation can help insulate investors from the negative outcomes of recessions.        Three years ago today, on April 4, 2019, I wrote about the Inverted Yield Curve … Continued

Asset Allocation Factors: Time and Emotion

Frank Yozwiak

Atheneum

When we meet with a new client, one of our tasks is to determine an appropriate asset allocation for the funds they invest.  At a very basic level, the question we are trying to answer is “what percentage of the investment portfolio will be comprised of equities (stocks), and what percentage will be fixed-income (bonds)?” … Continued

Asset Allocation Factors: Time and Emotion

Frank Yozwiak

Atheneum

When we meet with a new client, one of our tasks is to determine an appropriate asset allocation for the funds they invest.  At a very basic level, the question we are trying to answer is “what percentage of the investment portfolio will be comprised of equities (stocks), and what percentage will be fixed-income (bonds)?” … Continued

Counteract Inflation with Your Financial Assets

Frank Yozwiak

Weekly Update

Key Takeaways Inflation in October 2021 was 6.2%, the highest in nearly 30-years. From 1914 to 2021, average inflation in the U.S. has been around 3.2% and the average return of the market (i.e., S&P 500) has been around 10-11%. While not without risks, investing in equities is a tested long-term hedge against inflation.   … Continued

The Cost of a Spent Dollar – What Could an Investment Have Become Through the Years

Frank Yozwiak

Atheneum

As we discuss retirement savings, one aspect that is worthy of consideration is the weighing of alternatives.  Hindsight is always 20/20, but let’s consider the cost of a spent dollar throughout the years.  Essentially, if you had $X in a given year, what is something that you could have purchased during that year compared to … Continued