Peter Mullin’s Blog via Mullin Wealth Management

Iran Watch: My best advice in a manic market

Wed, 04 Mar 2026 13:38:26 GMT

My best advice a manic market

By Peter Mullin, CEO/Financial Consultant

Clients, we have never been in it for last year's results. Instead, we are betting on future prospects.

We know life is not perfect. But over time, it will be okay.

There are life lessons we can draw on from investing.

One lesson involves taking bad periods with a grain of salt. Uncertainty is the price we pay for an investment’s potential rewards.

Iran is striking back at the Middle East and allies like a multi-headed medusa. This did just occur in June of 2025. The difference is there is a presumed push for a regime change.

It is a nail biting time, once again. My best advice is to keep the long view in mind during times that test our wits.

But there is war. There is hyperinflation. This market is out of control. I can't lose anymore…I won’t live long enough to recover.

How long has it taken a market to bounce back?

Surprisingly, markets bounce back quite quickly from the real terror of missiles, mortars and military strikes. JP Morgan’s chart shows that it takes 2-3 weeks (or less) on average. The average drawdown is about -5.3%.

Our worries at this moment are all bricks to add to the wall of worry we all face as investors. We lose when we jump out of our long-term strategy. And know that an investor that abandon’s ship will always reassure themselves that they can always get back in.

Keep your seatbelts fastened. And please stop looking at your daily portfolio balance…

We face this wall of worry together. I am here if you are wondering if you are doing Okay.

Carry on!

Peter Mullin, AAMS®

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All performance referenced is historical and is no guarantee of future results.

The S&P 500 is an unmanaged index which cannot be invested into directly. Unmanaged index returns do not reflect fees, expenses or sales charges. Index performance is not indicative of the performance of any investment. Past performance is no guarantee of future results.

Investing involves risks including possible loss of principal.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly.

Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges.

Securities and Advisory services offered through LPL Financial, A Registered Investment Advisor, Member FINRA/SIPC.

Assessing Market Impacts of Iran Airstrikes

Tue, 03 Mar 2026 22:59:39 GMT

This week on LPL Market Signals, Chief Equity Strategist Jeff Buchbinder and Chief Fixed Income Strategist Lawrence Gillum, discuss potential stock and bond market impacts of the airstrikes on Iran over the weekend.

Tracking: #1072379

Assessing the Impact of Developments in Iran: Watch Energy

Tue, 03 Mar 2026 15:08:30 GMT

Kristian Kerr | Head of Macro Strategy

Last Updated: March 02, 2026

Over the weekend, the United States and Israel conducted a coordinated series of missile and drone strikes against Iran, targeting several high-value military installations in an effort to hinder Iran’s nuclear development efforts. These operations resulted in the death of Iran’s Supreme Leader, Ayatollah Ali Khamenei, marking a significant escalation and immediately heightening regional tensions. Iran quickly retaliated by launching a broad series of missile attacks directed not only at Israel but also at multiple Gulf states, including Qatar, the United Arab Emirates, and Bahrain. The repercussions were felt across the region. Several Gulf countries responded by shutting down their airspace and closing their equity markets. The conflict also affected global energy flows. Tanker traffic through the Strait of Hormuz, a vital waterway that carries about 20% of the world’s oil supply, came to a near standstill as shipping companies diverted vessels away from the area for safety reasons. Plus, Qatar shuttered liquefied natural gas production at the world’s largest export facility after being targeted by an Iranian drone strike. President Donald Trump stated that U.S. strikes on Iran would continue, signaling that tensions are likely to remain elevated for the next few weeks.

From a market perspective, the energy market is the primary way through which this crisis is likely to impact global markets. Any sustained disruption to oil or natural gas flows, especially if both severe and long lasting, have the potential to influence inflation expectations, weigh on business confidence, and elevate volatility across asset classes. In simple terms, the more intense and prolonged the geopolitical shock, the larger the likely market impact.

This pattern was already evident when markets opened on Monday. Brent crude, the global benchmark for oil prices, briefly touched $82 per barrel as traders responded to the possibility of tighter supply conditions. A sustained period of elevated prices would place upward pressure on inflation expectations, and that in turn could have broader consequences for both equity and interest rate markets. However, for such a persistent rise in crude prices to materialize, markets would likely need evidence of a more prolonged or even total shutdown of the Strait of Hormuz. A disruption of that scale would represent a meaningful escalation relative to what has occurred so far and would justify a more substantial risk premium in energy markets. There is also a political dimension tied to Iran’s internal stability, particularly regarding how the Islamic Revolutionary Guard Corps (IRGC) chooses to respond. Whether it opts to pull back or escalate further will play a major role in determining how much of the current shock reflects elevated risk premiums versus a true disruption to physical supply.

Oil Prices Spike as Strait of Hormuz Tanker Traffic Stalls

Source: LPL Research, Bloomberg 03/02/26
Disclosures: Past performance is no guarantee of future results.

Given how rapidly the situation continues to evolve, closely following movements in energy prices remains one of the most effective ways to assess the level and durability of the underlying geopolitical risk. Oil and natural gas markets tend to adjust quickly to new information, which means they can serve as a real-time barometer of whether tensions are beginning to ease, stabilize, or intensify. Monitoring these markets will therefore be essential for understanding how the conflict may continue to influence global market conditions in the days and weeks ahead.

IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors. To determine which investment(s) may be appropriate for you, please consult your financial professional prior to investing.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk.

Indexes are unmanaged and cannot be invested into directly. Index performance is not indicative of the performance of any investment and does not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

This material was prepared by LPL Financial, LLC. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

Unless otherwise stated LPL Financial and the third party persons and firms mentioned are not affiliates of each other and make no representation with respect to each other. Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services.

Asset Class Disclosures –

International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.

Bonds are subject to market and interest rate risk if sold prior to maturity.

Municipal bonds are subject and market and interest rate risk and potentially capital gains tax if sold prior to maturity. Interest income may be subject to the alternative minimum tax. Municipal bonds are federally tax-free but other state and local taxes may apply.

Preferred stock dividends are paid at the discretion of the issuing company. Preferred stocks are subject to interest rate and credit risk. They may be subject to a call features.

Alternative investments may not be suitable for all investors and involve special risks such as leveraging the investment, potential adverse market forces, regulatory changes and potentially illiquidity. The strategies employed in the management of alternative investments may accelerate the velocity of potential losses.

Mortgage backed securities are subject to credit, default, prepayment, extension, market and interest rate risk.

High yield/junk bonds (grade BB or below) are below investment grade securities, and are subject to higher interest rate, credit, and liquidity risks than those graded BBB and above. They generally should be part of a diversified portfolio for sophisticated investors.

Precious metal investing involves greater fluctuation and potential for losses.

The fast price swings of commodities will result in significant volatility in an investor's holdings.

This research material has been prepared by LPL Financial LLC.

Not Insured by FDIC/NCUA or Any Other Government Agency | Not Bank/Credit Union Deposits or Obligations | Not Bank/Credit Union Guaranteed | May Lose Value

For Public Use – Tracking: #1072327

Charting the markets: The great divide

Wed, 18 Feb 2026 12:49:34 GMT

LPL Market Signals

This week on LPL Market Signals, Chief Equity Strategist Jeff Buchbinder and Chief Technical Strategist Adam Turnquist discuss the rotations within the stock market as breadth has improved beyond mega-cap technology and share their outlook for precious metals, which continue to enjoy fundamental and technical support.

Tracking: #851250

What is Your Wealth Story?

Tue, 20 Jan 2026 18:06:48 GMT

My values and mission

Quarterly Market Insight - Q4 2025

Fri, 16 Jan 2026 18:22:22 GMT

One more speed bump before year-end?

Tue, 11 Nov 2025 19:53:30 GMT

“Optimism sounds like a sales pitch. Pessimism sounds like someone trying to help you .” Morgan Housel, The Psychology of Money

I do believe parts of the stock market are due for a reality check. But our big-picture, combined with our investment process says to hang in there. Connect with us now, especially if anything has changed for you.

Remember April and Tariff Tantrums? Portfolio risk still matters

Does is feel like stocks have done better than they actually have this year? Last year was a bumper year. And this year many have likely already forgotten the sharp April tariff tantrums.

In recent history, market reality checks have been brief. For example, COVID caused stock markets to drop aggressively, followed by a wild recovery. Then 2022 reminded investors that taking imprudent risk can burn you.

This rapid cycle of loss and recoveries makes it easier to get complacent. Yet, historical patterns suggest this isn't the time to ignore risk. It's easy to take on more risk after enjoying strong returns. But this can be dangerous—history doesn’t repeat, but it often rhymes.

Let’s talk portfolio risk; risk can = rewards; but at what price?

Let’s take a humble breath. Recall the math and logic of portfolio losses.

Bigger portfolio risks require a higher pain tolerance. Large portfolio losses are hard to recover from. If a $100,000 portfolio loses 20%, it drops to $80,000. To get back to even requires a 25% return on your $80,000.

It’s easy to take on more and more risk when we are being rewarded. But many experienced retirees know, “easy come, easy go.”

Is This Time Different? History Says, ‘Not So Fast.’

History has a way of reminding us not to get too comfortable when the markets are in a seemingly endless bull run. Take a look back:

March 2000 : “ Dow Pushes Over 11,000 ” — at the peak of the dot-com bubble, the market looked unstoppable. But the years following were a rough ride, with negative returns in 2000, 2001, and 2002. (wired.com)

October 2025 : “T he Stock Market Sounds an Alarm Seen Just 1 Time Before ” — As the market appears strong, it's crucial to ask: Is it time for another correction? Time will tell. (Yahoo Finance)

November 2025 : “ The Week the AI Boom Got a Reality Check on Wall Street ” — Even tech stocks, which had soared, faced a sharp reality check. Markets can change quickly, and we must remain vigilant. (WSJ)

Let’s Stay Grounded and Prepared

As we head toward the end of the year, it’s essential to stay aware of potential risks. Let’s revisit your portfolio, review your risk preferences, and make sure your strategy aligns with your long-term goals.

_____________________________

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Any economic forecasts set forth may not develop as predicted and are subject to change.

Investing involves risk including loss of principal.

References to markets, asset classes, and sectors are generally regarding the corresponding market index.

Indexes are unmanaged statistical composites and cannot be invested into directly.

Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges.

All performance referenced is historical and is no guarantee of future results.

No strategy assures success or protects against loss.

All indices are unmanaged and may not be invested into directly.

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.

LPL Research Presents 2025 Midyear Outlook

Wed, 08 Oct 2025 14:53:18 GMT

We're pleased to offer 2025 Midyear Outlook: Pragmatic Optimism, Measured Expectations, providing a comprehensive recap of the economy and market to date, plus a forecast through year-end.

Unparalleled Support For Your Financial Future

Thu, 18 Sep 2025 13:16:59 GMT

Independent Power Producers in an Electricity Bull Market

Mon, 09 Jun 2025 15:17:28 GMT

Thomas Shipp | Head of Equity Research

Last Updated: June 05, 2025

Rising Utility: Independent Power Producers in an Electricity Bull Market

The energy landscape, and particularly the market for electricity, is evolving rapidly. Electricity demand and energy infrastructure spending are expected to continue growing over the coming years. Several catalysts have been cited for this growth — grid modernization to support renewable energy, electric vehicle (EV) adoption, and increased electrification broadly. However, the market didn’t credit utility stocks for these supposed growth drivers and only became interested when artificial intelligence (AI) was part of the story. In today’s blog, we discuss how AI-driven power demand, and the associated hyperscaler capital expenditures cycle, ultimately brought investor focus to the utility stocks purported to benefit most: Independent Power Producers (IPPs). These companies, including Constellation Energy (CEG), Vistra Corp (VST), and NRG Energy (NRG), own and operate power generation facilities. Unlike traditional utilities, IPPs operate in competitive markets, selling electricity directly to retail and wholesale customers.

The Data Center Connection

Much investor excitement around IPPs comes from the growth of power-hungry data centers, driven by continued investment in AI from cash-rich cloud computing hyperscalers, such as Amazon Web Services (AMZN), Microsoft Azure (MSFT), and Google Cloud Platform (GOOG/L). Technology companies beyond the cloud hyperscalers, such as OpenAI (privately held) and Meta Platforms (META), are also driving data center demand, and the requisite electricity, as they seek to build their own tech infrastructure, further reversing the trend of “asset-light” capital allocation policies seen in mega cap tech over the last decade. META announced a long-term power deal with CEG just this week.

Data centers require substantial amounts of reliable “always-on” power, and thus, suppliers of said power provide a highly valuable raw input for the latest AI model or application. Let’s explore longer term U.S. power demand forecasts to provide a contextual backdrop before analyzing the potential advantages held by IPPs.

Growing Demand for Power Supports IPPs’ Strengths

Demand for electricity is on the rise, and the trend is expected to continue for the foreseeable future. According to the U.S. Energy Information Administration (EIA), U.S. electricity consumption is forecasted to increase in 2025 and 2026, surpassing the all-time high reached in 2024. This growth is largely driven by the commercial and industrial (C&I) sectors, including data centers and manufacturing establishments. Additionally, a report by industry consultant ICF International (ICFI) suggests that U.S. electricity demand is expected to grow by 25% by 2030 and 78% by 2050 .

Market consensus believes IPPs are among the best positioned to capitalize on this growing electricity demand. The smattering of long-term power supply contracts between technology companies and IPPs, as well as the increased investment from the IPPs themselves, supports this thesis. This can be attributed to several factors:

Increased Capacity. IPPs are investing heavily in expanding their generation capacity by reviving/extending existing nuclear power plants and purchasing natural gas power plants (see below on IPP Growth Strategies).
Market Dynamics. The competitive nature of the IPP market drives efficiency. Companies that can produce electricity at lower costs and with higher reliability are rewarded with better market positions and potentially lucrative long-term contracts.
Policy Support. U.S. industrial policies are providing incentives to promote energy infrastructure investment, such as nuclear production tax credits.
Investor Confidence. The combination of growing demand, innovative and flexible capacity expansion, and supportive federal policies and regulations has led to increased investor confidence. As a result, the stocks of IPPs have seen impressive returns, which in turn have allowed IPPs to leverage elevated equity values for growth investments.

IPP Growth Strategies in Power Generation Portfolio

Large public IPPs have pursued mergers and acquisitions (M&A) this year to enhance their power generation portfolios and capitalize on market opportunities. Below, we outline three deals from this year to demonstrate how the IPP flexible business model (and elevated equity valuations) supports capturing increased electricity demand.

Constellation Energy Group (CEG). In January, CEG agreed to acquire privately-held Calpine for $29.1 billion (inclusive of assuming $12.7 billion in Calpine’s debt), valuing the equity at $16.4 billion. CEG is funding the deal with ~$11.9 billion in stock (issuing 50 million shares, or ~13.1% of post-issuance total shares outstanding) and $4.5 billion in cash. After netting out cash generation at Calpine during 2025 (deal expected to close at end of 2025), the total enterprise value consideration is expected to be $26.6 billion, which the companies estimate is 7.9x 2026 estimated EBITDA.

The Calpine deal will make CEG the largest power producer in the U.S., adding 26gigawatts (GW) of gas-fired turbine power generation and 1.5GW of geothermal/renewables to its existing 33GW power generation (two-thirds of which is nuclear — CEG possesses the largest nuclear generation fleet).

Vistra (VST). In May, VST announced they would acquire natural gas assets from Lotus Infrastructure Partners for $1.9 billion, which represents a 7x 2026 adjusted EBITDA multiple. The deal is expected to close in late 2025 or early 2026. This natural gas deal quickly added 2.6GW of capacity, representing a 6.5% boost to VST’s capabilities. This capacity was added at a cost of ~$743/kilowatt (kW) which is two-thirds cheaper than the estimated $2,000/kW price of building, with the added benefit of faster integration.

NRG Energy (NRG). In May, NRG agreed to acquire 13 GW of gas generation from LS Power for a total enterprise value of ~$12 billion at a 7.5x 2026 enterprise value (EV)/EBITDA multiple. The equity value of ~$9 billion is being funded using two-thirds cash on hand and one-third stock. The deal is expected to close in early 2026, and the company noted that the acquisition would double NRG’s generation capacity.

Each of these deals followed similar growth strategies focused on natural gas generation. These deals, done at approximately 7–8x EBITDA, are currently cheaper and faster than building new facilities.; GE Vernova (GEV), a leading manufacturer of gas-fired turbines, recently said that orders placed today will not be delivered until 2028.

Valuation Insights

Since it was spun off from Exelon Corp (EXC) in January 2022, CEG has traded at an average 35%valuation premium to the peer group average. This premium can be attributed to its better credit profile, larger size, geographic mix, and carbon-free portfolio. VST has historically traded around the peer group average, and NRG has traded at a discount. NRG’s discount to peers could be attributed to its smaller size and less direct “pure-play data center/AI” thematic, which has only recently started to be discounted by the market, as the deal with LS Power not only expands NRG’s total generation capacity, but also significantly diversifies its geographic footprint.

IPP Valuations: Market Multiples Show CEG’s Premium, NRG’s Re-Rating

Source: LPL Research, Bloomberg 06/03/25
Disclosures: Past performance is no guarantee of future results.
IPP Average: Simple average of the three IPP valuation multiples in the exhibit (CEG, VST, NRG)
NTM EV/EBITDA: Similar to a price to earnings multiple, this valuation metric expresses the enterprise value (equity market value plus debt, less cash; reflective of the value of the entire enterprise) relative to consensus estimates of EBITDA (earnings before interest, taxes, depreciation, and amortization, a common measure of operating earnings) for the upcoming 12 months.

Conclusion

The expected growth in electricity demand in the U.S. is attributable to several factors, but the factor that has captured investor attention is the boom in data center construction in support of AI applications. IPPs have been beneficiaries of this theme, demonstrated by positive earnings revisions and long-term power contracts, as they have the business model and balance sheet to expand power generation to meet demand. Their flexibility has helped IPPs secure long-term contracts to supply power to individual technology companies and their data centers. However, with increased growth expectations and valuations comes increased risk, primarily of expectations not coming to fruition, such as long-term contracts getting priced into valuations only to not materialize for one reason or another (increased efficiency of new models, to cite a recent example). For now, with M&A and long-term contracts dominating the news flow in the industry, that risk has been accepted, or ignored.

IMPORTANT DISCLOSURES

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk.

This material was prepared by LPL Financial, LLC. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

Asset Class Disclosures –

Bonds are subject to market and interest rate risk if sold prior to maturity.

Preferred stock dividends are paid at the discretion of the issuing company. Preferred stocks are subject to interest rate and credit risk. They may be subject to a call features.

Mortgage backed securities are subject to credit, default, prepayment, extension, market and interest rate risk.

Precious metal investing involves greater fluctuation and potential for losses.

The fast price swings of commodities will result in significant volatility in an investor's holdings.

This research material has been prepared by LPL Financial LLC.

Not Insured by FDIC/NCUA or Any Other Government Agency | Not Bank/Credit Union Deposits or Obligations | Not Bank/Credit Union Guaranteed | May Lose Value

For Public Use – Tracking: #750265

Fear is Good

ppmullin@gmail.com (Peter Mullin) — Wed, 05 Feb 2025 17:39:58 GMT

Fear is Good

By Peter Mullin

Investments climb a wall of worry. From November through the start of December 2024, fear was nowhere to be found. There were signs of euphoria. Folks wondered why they hadn't dug deeper into the darlings of 2024.

Here is one reason why we don't (and probably shouldn't): What goes up 15% can go down 15%. What goes up 40% can go down 40%.

Then the new year came around. And this last week, China said it beat the US in AI engineering – at just 3% of the cost (VentureBeat, 2025).

I joined a conference call on Wednesday to chat about this DeepSeek AI. I raised skepticism. I called back to how China has a habit of grandiose stories. Read this story about the Chinese real estate bust: China's Economy Is Burdened by Years of Excess. Here's How Bad It Really Is . (WSJ, January 1, 2025).

Something that is different is the fact that this DeepSeek is open source. That means that anyone should be able to look at it and see how it operates. Is it as good as they claim? We will see. However, we can also anticipate further disruptive announcements in the years ahead. AI will expand.

I remember an investment outfit telling a tale of how they were impressed by the Chinese real estate market over 12 years ago. It was incredible, they said. They were building droves of huge apartment complexes. And people could only move in once the entire development was rented. They said the demand was huge as folks joined a lottery to come from rural farmlands to the urban areas. At least, that is what they said.

AI For Us Common Folks

Two words that we common folk think we do not know a lot about might be "AI" and "semiconductors."

Admittedly, I am not writing programs for these large companies. But I know what the vision and goals of them are. I have used them quite a bit. I want to be able to keep up with them so I don't have to rely on my 9-year-old to teach me.

AI is the ability to train a computer or machine to think and compute like the human brain, except with massive efficiency. It might take you hours to research and book your vacation online today. Someday soon you may be able to book your whole vacation by telling a program a few key data points. You will get it for the optimal price and according to your preferences. AI may also add a few surprises that you find you enjoy while on vacation.

I could run this letter through AI and ask it to sound different. (But I won't. I enjoy writing. And our voice comes through in our writing.) But AI is most certainly combing through my published words online and learning from them.

Semiconductors are the power lines and transformers for data. They keep the computers clicking – fast and cool. Computers can run hot. And the more data you drive from the computer the hotter it can get. Imagine rubbing two sticks together to start a fire by hand. That was the 1980's for computers. Now attach one of those sticks to a drill and add a butane torch.

Investment Implications

I have heard the innovation song before. Read my take on the word on my blog here . Here is what happened this past week. I view this from the psychological side of money management. The self-off in technology may have been overdone. But it was also overdue.

If stocks climb a wall of worry, then we need a wall in front of us to climb. That wall of worry seemed to be worn down to rubble on the back of two incredibly strong years of growth. After getting a health gut-check, we can dig our heels in, retest our convictions, and carry on.

So, if investors were lucky enough to sidestep some of the quick, violent pullbacks on the AI investment space, they might want to revisit. And consider adding to the space at reduced prices. Because I don't think the AI story is done.

Three things I think about when it comes to US Tech Leadership:
#1. First, realize that tech stocks are not the only place to invest our hard-earned money. But also recognize that tech companies are the heavyweights in the US equity markets.
#2: Moore's Law: Every two years, the capacity for a semiconductor DOUBLES.
What are semiconductors, you ask? They make our phones, TVs, and computers – and all connected things work.
#3. Jevons Paradox: Our first thought is that making something more efficient will decrease prices and demand. But the reverse is true. More folks are using computers today than they were in the 1980's. And they cost a whole lot less.
The CEO of Microsoft just tweeted about Jevons Paradox in response to the Chinese AI story that appears to have caused a bump in AI-centric stocks.

______________________

Peter Mullin is an independent financial advisor registered through LPL Financial. He serves clients from his offices in Minnesota and states across the country.

Investing involves risks including the possible loss of capital.

The opinions voiced in this material are for general information only and are not intended to provide or be construed as providing specific investment advice or recommendations for any individual security. To determine which investments may be appropriate for you, consult your financial advisor prior to investing.

All indexes are unmanaged and cannot be invested into directly. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. All performance referenced is historical and is no guarantee of future results.

Because of their narrow focus, investments concentrated in certain sectors or industries will be subject to greater volatility and specific risks compared with investing more broadly across many sectors, industries, and companies.

After August: Assertive Action

ppmullin@gmail.com (Peter Mullin) — Mon, 09 Sep 2024 17:14:27 GMT

After August : Assertive Action

“The pessimist complains about the wind. The optimist expects it to change. The leader adjusts the sails.” - John Maxwell

I sent an update out weeks ago on a Friday in August. I subject line read: "Things are about to get interesting."

That turned out to be prescient. It has helped me respond assertively for clients. Much of what seems like a routine, annual unwind in stocks appears to be occuring. The geopolitical saber-rattling in the Middle East and US Election have likely contributed to the latest unwind.

Remember September

"Overall, we expect volatility to remain elevated in the coming months as the market waits for more clarity on the economy and a better seasonal setup (as a reminder, September is the worst month for stocks)." - LPL Research

September is infamous in market history for being a low or washout month. We can read that and be concerned. Or we can be ready to respond accordingly. This sort of choppy environment is the price of admission. We put up with mood swings and fears.

I remind clients of facts and things that we can control when questions and concerns arise.

The method of investing in an uncertain environment is still the same. We review the facts of the situation we are in. I listen to your input as a client and human. I emphasize how a strong dependency on your money to live comfortably will impact how we invest. Especially, in the near term. And then we execute our strategy.

If we are nearing a retirement date or major purchase we can look to increase or add to our short-term, ultra-low risk portion of our portfolio.

It is worth saving the graphic below if you become concerned when a portfolio draws down more than a bit. Portfolio mood swings are the price of admission—there is no such thing as a free lunch.

Thank you,

Peter Mullin

The opinio ns voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Any economic forecasts set forth may not develop as predicted and are subject to change.

Investing involves risk including loss of principal.

All performance referenced is historical and is no guarantee of future results.

No strategy assures success or protects against loss.

All indices are unmanaged and may not be invested into directly.

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.

Things are about to get interesting

ppmullin@gmail.com (Peter Mullin) — Thu, 01 Aug 2024 19:06:58 GMT

Listen to this update here: Listen here

Welcome to Mullin’s Market Minutes, where I decode the numbers behind the news. I’m PETER MULLIN, and today, let’s dive into the current market landscape with a quick update.

No matter who clinches the White House this November, markets have shown they can still move upwards. The more dominant factors in history have been geopolitical events, such as wars. What is more positive is having a balance of power between the House of Representatives, Senate, and the White House.

That said, we’re seeing some economic indicators flashing yellow. The first half of the year was stellar for many investors, but as always, there’s a bit of a tug-of-war between the market's performance and the economic data."

Investors might start feeling a bit uneasy as we experience some market volatility. It’s not unusual for portfolios to experience some chop during these periods. But here’s something to watch for: On the first Friday of August, the Sahm Rule could come into play. This rule, set by the Federal Reserve, suggests that if the three-month average unemployment rate rises by half a percent from a year ago, a recession might be on the horizon.

Currently, we’re close to triggering this rule, which is why I’m eyeing the next 3 to 6 months with a cautious outlook. Then we did just see some of the biggest years winners see some measurable price reversion. So maybe this news is baked in? It’s like watching the skies for dark clouds—better to be prepared with an umbrella before the downpour hits."

Keep an eye on these signals and stay tuned for more updates. Thanks for tuning in. Until next time, keep your investment strategies sharp and your outlook informed."

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Any economic forecasts set forth may not develop as predicted and are subject to change.

Investing involves risk including loss of principal.

All performance referenced is historical and is no guarantee of future results.

No strategy assures success or protects against loss.

All indices are unmanaged and may not be invested into directly.

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC.

The Pursuit of a Comfortable Retirement - 7 Rules of the Road

ppmullin@gmail.com (Peter Mullin) — Wed, 29 May 2024 16:58:48 GMT

Money In: Money Out

Spend time learning about what money will come in. Then study what goes out. Study your primary checking account. Look at the past 12 months.

This can give you a good idea of what goes out.

Live below your means

Good habits tend to follow us around. It’s never too late to start. Be careful to spend less than what comes in. Also, enjoy that mocha once in a while.

Remember, It’s Always Something

Dentist bills, car repairs, appliances…you will always have surprises.

Keep an emergency savings reserve that is sufficient for you.

Don’t Rationalize

Be mindful the next time you make a significant purchase. Too often we buy first and justify later. Marketers are aware of this human behavior. Do research, write out a pros/cons list, and then wait before buying.

Two Things: Cost of Living & Taxes

The price of stamps, bananas and healthcare keep increasing. Much money

that comes in during retirement is taxed. This is a key reason to learn now how taxes and inflation will affect the value of your money throughout retirement.

Invest Accordingly

Compounding and math can work in your favor. Consider adopting a long-haul mentality. Importantly, know what to expect. Delegate what you don’t have the time or passion for – like investing. Inquire about costs, best practice, and how available your money will be.

You Can’t Fit Everything on a List

Your circumstances are unique. Your strategy ought to reflect this.

***

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.

Know the benefits of regular investing

ppmullin@gmail.com (Peter Mullin) — Thu, 09 May 2024 15:02:27 GMT

KNOW THE BENEFITS OF REGULAR INVESTING

Focusing on the long term can pay off for investors. Whether the goal is saving for a house, college, retirement or a legacy, making a long- range plan—and sticking to it—are important parts of an investment strategy.

Yes, flexibility has its place. For example, investors who take the time to review their goals and strategy at regular intervals can make deliberate adjustments based on changing circumstances. But sudden changes based on an emotional response to news reports may not be the best course.

When the market turns lower, sticking to a long-range plan can be a challenge to even the most seasoned investor. By arming themselves with information, though, investors may be better equipped to ride out tough markets, and even benefit from them.

Dollar-Cost Averaging

Regular contributors to a retirement plan already use a strategy called dollar-cost averaging, many without even realizing it. Dollar- cost averaging simply means investing a fixed amount regularly, regardless of market conditions.

Here’s how it works: Mutual funds are priced using share values. Investors buying shares of a mutual fund become partial owners of the fund. As contributions go into the fund each week or each pay period, more shares of the fund (full or partial, depending on the amount contributed) are purchased. If the market remained constant, the same weekly contribution would always buy the same number of shares.

But the market keeps moving, and dollar-cost averaging takes advantage of those ups and downs. In a down market, each share costs less, so the number of shares grows faster if the contribution amount stays the same.

The shares accumulate more slowly in an up market, when the price per share is higher. Over the long term, the share price tends to level out.

The concept of dollar-cost averaging is shown in the chart below. By investing $100 a month for five months, based on the illustration below, as the price per share and number of shares purchased fluctuates, $500 purchases 75 shares at an average share price of $7.20.

Taking Advantage of Market Movements

During periods of extreme market fluctuations, dollar-cost averaging investors may have more return potential. The more frequently the market dips, the more opportunities there are to buy at lower prices. In this way, the investor’s account can accumulate many more shares of the fund that may benefit from future up markets.

Making regular contributions is one important factor in successful long-term investing. You should consider your ability to continue purchasing through fluctuating price levels. By making a plan, sticking to it, and taking advantage of dollar-cost averaging, investors are following a widely used strategy to work toward their investment goals.

Dollar cost averaging involves continuous investment in securities regardless of fluctuation in price levels of such securities. An investor should consider their ability to continue purchasing through fluctuating price levels. Such a plan does not assure a profit and does not protect against loss in declining markets.

This material was prepared by LPL Financial, LLC.

This material is for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.

Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC. LPL Financial and Mullin Wealth Management are separate entities.

Tracking #1-05365584 (Exp. 03/25)

PETER MULLIN RECOGNIZED AS ONE OF LPL FINANCIAL’S TOP FINANCIAL ADVISORS

ppmullin@gmail.com (Peter Mullin) — Tue, 30 Apr 2024 21:21:23 GMT

FOR IMMEDIATE RELEASE

PETER MULLIN OF MULLIN WEALTH MANAGEMENT RECOGNIZED AS ONE OF LPL FINANCIAL’S TOP FINANCIAL ADVISORS

MINNESOTA — MAY 1, 2024 – Peter Mullin, a financial advisor at Mullin Wealth Management in Central Minnesota, today announced that his achievements have been recognized with inclusion in LPL Financial’s Ascent Club* for 2024. This distinction celebrates a select group of advisors on ambitious growth trajectories, who have achieved excellence in financial guidance. As America’s investing public looks ahead to continued macroeconomic uncertainty and market volatility, it is critical they have an experienced financial partner by their side to help them manage, preserve, and deploy their wealth.

Mullin serves clients based in the Midwest, providing comprehensive wealth management services, including: investment management, retirement planning, tax planning, charitable giving and estate planning.

“Recognition like this to me shows the power of relationships compounding in this business. It is awesome to see grassroots growth through so many passing my name on to friends and family. Thank you clients! You have my gratitude.”

“On behalf of the entire team at LPL, I am thrilled to congratulate Peter Mullin on his outstanding achievements in 2023,” said Julian Lopez, LPL’s Executive Vice President of Independent Advisor Services Relationship Management. “By utilizing our proprietary technology and suite of customized services, Peter has taken his business to the next level, allowing him to dedicate more time to building meaningful client relationships with families in the Midwest. Through his guidance, he has been instrumental in helping these families turn their aspirations into financial realities.”

Mullin has been affiliated with LPL Financial, a leading wealth management firm, for 13 years. Through LPL, financial advisors are empowered to focus on their unique skills in building client relationships and delivering personalized financial advice, while leaning on LPL to provide the services, support and tools to help increase operational efficiency and power business growth.

###

About LPL Financial

LPL Financial Holdings Inc. (Nasdaq: LPLA) was founded on the principle that LPL should work for advisors and enterprises, and not the other way around. Today, LPL is a leader in the markets we serve, serving more than 22,000 financial advisors, including advisors at approximately 1,100 enterprises and at approximately 570 registered investment advisor (RIA) firms nationwide. We are steadfast in our commitment to the advisor-mediated model and the belief that Americans deserve access to personalized guidance from a financial professional.

At LPL, independence means that advisors and enterprise leaders have the freedom they deserve to choose the business model, services, and technology resources that allow them to run a thriving business. They have the flexibility to do business their way. And they have the freedom to manage their client relationships because they know their clients best. Simply put, we take care of our advisors and enterprises, so they can take care of their clients.

Securities and Advisory services offered through LPL Financial LLC (“LPL Financial”), a registered investment advisor. Member FINRA/SIPC. LPL Financial and its affiliated companies provide financial services only from the United States.

Throughout this communication, the terms “financial advisors” and “advisors” are used to refer to registered representatives and/or investment advisor representatives affiliated with LPL Financial.

We routinely disclose information that may be important to shareholders in the “ Investor Relations ” or “ Press Releases ” section of our website.

*Achievement is based on annual production among LPL-affiliated investment programs only.

Securities and Advisory services offered through LPL Financial, A Registered Investment Advisor, Member FINRA/SIPC.

Create a comfortable financial foundation with ideas like these

ppmullin@gmail.com (Peter Mullin) — Mon, 15 Apr 2024 18:09:00 GMT

5 Oversights of High Income Earners

1. Maxing out your 401(k) & Stopping There:

You can save $19,000 in your 401(k) in 2019. Plus, $6000 more if you are 50 and older. The trouble is high earners tend to not max out their 401(k). If they do then they stop there.
Keep Going:
Open a private “rainy day” investment account . A benchmark to reach for is to save upwards of 10-12x your salary by retirement . A rainy day fund can help. A rainy day fund is another layer of foundational security. Do you have a home remodel or big vacation coming up? Save your cash and tap into your rainy day fund. Invest in this additional account on a monthly or regular basis. Again, do this in addition to maxing out your 401(k).
If you are a business owner and do not have access to a 401(k), then check out #2 - Neglecting Savvy Tax Planning.

2. Neglecting Savvy Tax Planning

•Savvy tax planning can involve making moves before December 31. Do some year-end tax planning.
•Withholding Too Little/Too Much: Review your income and withholdings annually. This can allow you to keep more of what’s yours. Then you can put your money to work throughout the year. Paying too little in income tax can cause a penalty. Withholding too much can mean waiting until your taxes are filed to recapture that money via a tax refund.
•By the way, a tax refund is not a ‘windfall’ of money; a tax refund is a return of overpayment - hence, ‘refund.’
•Guess what can help mitigate your taxes? These items:

-A 401(k) contribution! (See #1)

-HSA contributions

-College Savings; Fund 529 Plans

-Learn more about an overlooked portfolio position in tax-free/ municipal bonds.

- Are you Self Employed? Or feel you can not afford a 401(k)? Think more broadly. Solo 401(k), SIMPLE IRA, and SEP IRA. What do these all have in common? They are options available to many solo business owners!

3. Eliminating Debt Instead and Neglecting Opportunity Costs and Tax Gains:

If you could make $30 on every hundred or $4 on every hundred which would you pursue? Certainly the $30, right?
Okay, what would you do first? Pay off a car loan with a 4% rate? Or invest money in retirement to realize a nice tax savings? Let’s say you have a higher income, and you could potentially save $30 in taxes for every $100 you invest.

But many are trained to establish a solid financial foundation by eliminating debt - and at all costs. Society should thank high earners. They make mistakes.
Focus on where the smart dollar should go.

• Physicians, Administrators, Dentists, Business Owners and Professionals should want to eliminate debt. And why not? You have the money to do so. But the problem of debt ought to be solved with your tax and income situation at the forefront.

4. You Forget about College Planning: High earners can be brutalized through the FAFSA system. Why?

A high weighting is placed on parents’ income.
College Planning in 2019 and 2020 for high earners likely has more to
do with encouraging great grades, participation in extracurricular
activities and the relentless pursuit of scholarships.
The other thing high-income parents need to consider is proper
funding for college.
Consider using 529s and additional investment options.

5. Living Like There's No Tomorrow:
Save more. Seriously. There are folks making half as much as you do – and they save twice as much as you do, and more.

Get an estate plan put together. And tell your family about it so that there are limited squabbles. Your legal professional and financial professional can help you.
Audit your group or personal insurance to assess that it reasonably meets needs now and potentially in the future.
Get insured: this includes life insurance and disability insurance.
Job changes and disabilities and family emergencies can cause reductions in income. Shore up your family savings account. *That rainy day investment account comes in handy here, again.
Do you earn a high income? Is life and tax planning getting more complicated? Feel free to take the 15-minute challenge. Give me 15-minutes with your tax returns. I'll give you a bullet-point summary of my findings.
***
Feel free to take the 15-minute challenge.

Peter Mullin is an LPL Financial Advisor with Mullin Wealth Management in the St Cloud, MN area a resident of Rogers, MN. Visit www.mullinwealth.com to learn more.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.

Investing involves risk including loss of principal.

Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state's qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.

SECURE Act 2.0 An Overview

ppmullin@gmail.com (Peter Mullin) — Fri, 01 Mar 2024 19:37:19 GMT

In the final days of 2022, Congress passed a new set of retirement rules designed to facilitate contribution to retirement plans and access to those funds earmarked for retirement.

The law is called SECURE 2.0, and it is a follow-up to the Setting Every Community Up for Retirement Enhancement (SECURE) Act passed in 2019.

The sweeping legislation has dozens of significant provisions; here are the major provisions of the new law.

New Distribution Rules

Required minimum distribution (RMD) age will rise to 73 years in 2023. By far, one of the most critical changes was increasing the age at which owners of retirement accounts must begin taking RMDs. Further, starting in 2033, RMDs may begin at age 75. If you have already turned 72, you must continue taking distributions. However, if you are turning 72 this year and have already scheduled your withdrawal, we may want to revisit your approach.1

Access to funds. Plan participants can use retirement funds in an emergency without penalty or fees. For example, 2024 onward, an employee can take up to $1,000 from a retirement account for personal or family emergencies. Other emergency provisions exist for terminal illnesses and survivors of domestic abuse.2

Reduced penalty. Starting in 2023, if you miss an RMD for some reason, the penalty tax drops to 25 percent from 50 percent. If you promptly fix the mistake, the penalty may drop to 10 percent.3

New Accumulation Rules

Catch-up contributions. From January 1, 2025, investors aged 60 through 63 years can make annual catch-up contributions of up to $10,000 to workplace retirement plans. The catch-up amount for people aged 50 and older in 2023 is $7,500. However, the law applies certain stipulations to individuals with annual earnings more than $145,000.4

Automatic enrollment. In 2025, the Act requires employers to automatically enroll employees into workplace plans. However, employees can choose to opt-out.5

Student loan matching. In 2024, companies can match employee student loan payments with retirement contributions. The rule change offers workers an extra incentive to save for retirement while paying off student loans.6

Revised Roth Rules

529 to a Roth. Starting in 2024, pending certain conditions, individuals can roll a 529 education savings plan into a Roth individual retirement account (IRA). Therefore, if your child receives a scholarship, goes to a less expensive school, or does not go to school, the money can get repositioned into a retirement account. However, rollovers are subject to the annual Roth IRA contribution limit. Roth IRA distributions must meet a five-year holding requirement and occur after age 591⁄2 to qualify for the tax-free and penalty- free withdrawal of earnings. Tax-free and penalty-free withdrawals are also allowed under certain other circumstances, such as the owner’s death. The original Roth IRA owner is not required to take minimum annual withdrawals.7

SIMPLE and SEP. 2023 onward, employers can make Roth contributions to savings incentive match plans for employees (SIMPLE) or simplified employee pension (SEP).8

Roth 401(k)s and Roth 403(b)s. The new legislation aligns the rules for Roth 401(k)s and Roth 401(b)s with Roth IRA rules. From 2024, the legislation no longer requires minimum distributions from Roth accounts in employer retirement plans.9

More Highlights

Support for small businesses. In 2023, the new law will increase the credit to help with the administrative costs of setting up a retirement plan. The credit increases to 100 percent from 50 percent for businesses with less than 50 employees. By boosting the credit, lawmakers hope to remove one of the most significant barriers for small businesses offering a workplace plan.10

Qualified charitable donations (QCDs). 2023 onward, QCDs will adjust for inflation. The limit applies on an individual basis; therefore, for a married couple, each person who is 701⁄2 years and older can make a QCD as long as it remains under the limit.11

The change in retirement rules does not mean adjusting your current strategy is appropriate. Each of your retirement assets plays a specific role in your overall financial strategy, so a change to one may require changes to another.

Moreover, retirement rules can change without notice, and there is no guarantee that the treatment of specific rules will remain the same. This article intends to give you a broad overview of SECURE 2.0. It is not intended as a substitute for real-life advice. If changes are appropriate, your trusted financial professional can outline an approach and work with your tax and legal professionals, if applicable.

1. Fidelity.com, December 23, 2022 

2. CNBC.com, December 22, 2022 

3. Fidelity.com, December 22, 2022 

4. Fidelity.com, December 22, 2022 

5. Paychex.com, December 30, 2022 
6. PlanSponsor.com, December 27, 2022 
7. CNBC.com, December 23, 2022 
8. Forbes.com, January 5, 2023 
9. Forbes.com, January 5, 2023 
10. Paychex.com, December 30, 2022 
11. FidelityCharitable.org, December 29, 2022

The content is developed from sources believed to be providing accurate

information. The information in this material is not intended as tax or legal

advice. It may not be used for the purpose of avoiding any federal tax

penalties. Please consult legal or tax professionals for specific information

regarding your individual situation. This material was developed and

produced by FMG Suite to provide information on a topic that may be of

interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or

SEC-registered investment advisory firm. The opinions expressed and

material provided are for general information, and should not be considered

Suite.

1-05355879

January Client Letter - Predictions do not make for great investment guidance

ppmullin@gmail.com (Peter Mullin) — Wed, 24 Jan 2024 19:42:00 GMT

I keep a magic 8-ball near me at the office, and I pass them out to clients as a lighthearted reminder to embrace uncertainty. The price we pay as investors is uncertainty. Over time, prudent solutions, and pragmatic optimism just seem to work. I think the biggest risk this year will actually be geopolitical; that being the potential for a broader war in the Middle East. Some facts I follow have had me anticipating some short-term portfolio turbulence. Though nothing to be surprised by. The Presidential election year is upon us. Scroll below to find a chart that shows how the stock market did under different presidents. Major historical events seem to drive markets more than the president sitting in office. Think globally when it comes to investing.

One Year Forecasts ≠ Investor Guidance 2024

S&P 500 forecasts for year-end range from positive 14% to negative 11%. One says we will be down 0.4%. How is that for a precise guess? (Marketwatch) What is your bet? Consult your magic 8-ball and get back to me. For reference, the SP 500 started at ~3,900. Predictions for year-end ranged from 3,500-5,000. (Marketwatch) The SP 500 was at about 4,770 by year end.

My bet is we will have good days, mixed with bad days, with an aire of uncertainty, and political campaign-induced stress throughout. With plenty of reasons to worry, let's take things for a walk and let time and the power of compounding do its work.

Have you thought about getting an electric bike? Then there is good news! Read about the electric powered bike rebates available in Minnesota!

-Get up to 75% of the bike's cost; capped at $1,500.

-The refund is income dependent. See details in the link provided.

-The way I read about it is there is no income limitation for up to a minimum $750 refund, if you buy an EV bike in Minnesota. E-Bike Refund for Minnesotans!

What’s going to happen this year with the election cycle?

Take a look at how the SP 500 has done under different presidents, since World War II. What major historical events come to mind as you take a trip through time? Remember how much inflation impacted the late 70's and early 80's? How many times has oil become a major headline? (Chart below provided by yCharts.)

With Gratitude,

-Peter

DISCLAIMERS Peter Mullin is an independent financial advisor registered through LPL Financial. He was born and raised in St. Cloud, MN. Mullin Wealth Management is headquartered Minnesota The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Investing involves risk including loss of principal. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification and asset allocation do not protect against market risk. References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results. All performance referenced is historical and is no guarantee of future results. No strategy assures success or protects against loss. Securities and Advisory services offered through LPL Financial, A Registered Investment Advisor, Member FINRA/SIPC.

Running out of water (money) in retirement

ppmullin@gmail.com (Peter Mullin) — Fri, 03 Nov 2023 16:00:44 GMT

2017 (Republished 2023)

This past summer we went on a camping trip in Voyageurs National Park. It was only a two night trip. We had several means of cleaning lake water so it was safe to drink. But we brought a large bladder of water and 5-gallons of tap water from home, just for comfort.

We canoed in and camped for two nights. Even after the two nights and hours of canoeing we still had half of the 5-gallons of tap water left. That last morning before we packed out, we were generous with the water we used for drinking and cleaning. The end of our trip was near and we’d soon be around tap water, again, anyway.

The current retired generation tends to have the “Camping with Tap Water,” mentality. According to “Annuitization Puzzles”, Journal of Economic Perspectives, this fear of running out can lead to not spending enough on yourself!

This can be due to trying to save enough for your late retirement years when you need more for healthcare or because there’s a strong desire to leave a legacy with forthcoming generations (Benartzi, Previtero, and Thaler, 2011).

Perhaps you have senior parents who have amassed good relative wealth? Yet you can’t coach them to spend much on themselves.

The habits that help you develop wealth likely follow you into retirement. It’s this concept that I share with my clients.

Then of course there’s the virtue of moderation. Funny how some of the same habits like persistent saving & prudent spending suddenly become a problem when you retire, huh?

Retirement Foreshadowing

The story of our camping trip to Voyageurs National Park is likely foreshadowing for me. It helps me realize some traits about ourselves.

Its a fun analogy for me because I’ve used the image with clients. It’s the idea of filling a giant water balloon up with water – saving for retirement. Then the game changes in retirement. All of the sudden we’re left to determine where to place a pinprick in that balloon so that water flows for you to live off of.

It’s an intimidating concept. Have you ever poked a hole in a balloon accidentally? It pops! In the case of a water balloon, the water bursts out. All you’re left with are the remnants of a balloon.

Investment & insurance companies have caught on. Have you noticed your employers 401(k) statement describing how much income you might expect when you retire? (Observe the disclaimers!) This is in part because of folks studying what should guide your decisions and behavior as you prepare for retirement.

So maybe it’s worth another look at positioning your assets within your retirement portfolio so that we can strive to secure lifelong income from it?

Dear Clients, I think its also important to bring this thought into social security claims. When is it the right time to claim social security?

We don’t need to reinvent the wheel. We need to acknowledge potential challenges and select reasonably reliable solutions.

Living in retirement brings many changes. It’s natural to wonder what it will be like. After a long road I wish for you to feel well informed and financially prepared.

Camping and water analogies aside, retirement is a life to look forward to. Don’t strive to reinvent the wheel. Strive for a comfortable retirement by becoming an informed investor.

***

Benartzi, Previtero, and Thaler. “Annuitization Puzzles.” Journal of Economic Perspectives. Fall 2011.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Financially Savvy at Six Figures

ppmullin@gmail.com (Peter Mullin) — Wed, 18 Oct 2023 20:43:13 GMT

Financially Savvy at Six Figures

Reaching six figures is no easy feat. If you’re one of the hard-working few who have made it to this milestone, give yourself a pat on the back and celebrate. It can be tempting to feel like now that you've made it to the top of this mountain your financial worries are over. But before you go reaching for a bottle of champagne or calling a Ferrari dealer, consider this: the majority of Americans living paycheck to paycheck are from higher income households. In fact, out of 9 million Americans surveyed, 8 million of those are in higher income brackets. 1

Now it's more important than ever to take an active role in managing your money. Don't equate earning six-figures with the ability to spend six-figures. Fortunately, there are several strategies that may help:

Steps to Take

There is no one-size-fits-all strategy for maximizing your new six-figure income. Every person is different, and some suggestions may mean more to you than others. But there are tried-and-true methods that can help point you in the right direction when it comes to your financial health.

Review Your Budget

Now that you are making six figures, you may be tempted to never look at your budget again. Resist this temptation and go back over your budget to make sure your spending is based on your overall approach. Feel free to adjust your line items to match any new priorities without going overboard. Careful preparation may help you know how much you can consider spending on that splurge item that you found online. Your renewed budget should be designed to follow your other new goals, knowing that your day-to-day matters are on firm footing. 2

Target Unproductive Debt

Not all debt is bad, as much of it helps you both financially and in terms of your quality of life. But certain types of debt, like credit cards and personal loans, may be something you want to manage better. Set a goal for your unproductive debt, which may put you in a better overall financial position. Each penny you save can go toward other goals, such as vacations, travel or even retirement.

Build Your Emergency Fund

Life is full of the unexpected. Prepare by setting aside enough liquid money to cover three to six months of expenses. This reserve may help you manage through a job loss or an injury or illness that requires time to heal.

Don't Forget About Taxes

Now that you’ve entered a new income bracket, your tax obligations may have changed. Take time to review your tax situation in an effort to avoid year-end surprises. This article is for informational purposes only and is not a replacement for real-life advice, so be sure to consult a tax, accounting, or human resource professional before modifying your tax-withholding strategy.

Don’t Forget Your Retirement Plans

If you haven’t started planning for retirement, your new income level may allow you to start setting aside money using a company-sponsored retirement plan. Initially, a financial professional may be able to provide guidance concerning the role a retirement plan can play in your overall financial strategy.

Move Forward Confidently

Restructuring your budget, managing debt, creating an emergency fund, and beginning to consider retirement may help ensure a more comfortable financial future. Even at a six-figure income, proactive preparations can help position you such that your money will eventually work for you.

Tracking # 1-05378671

1. Pymnts.com, January 2023
2. Forbes.com, March 29, 2022

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG, LLC, is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2023 FMG Suite.

Good news three ways - let’s go fish!

ppmullin@gmail.com (Peter Mullin) — Fri, 21 Jul 2023 15:14:57 GMT

My family just returned from a week of fishing and lake life along idyllic northern pine shores. The treasured mornings and nights came with a view of a picturesque reflection of the trees on the calm and clear lake.

We have taken a trip like this the past few summers. And this year the fish were biting! We had sunnies, perch, and bass a plenty. I grew up with trips to Crow Wing Lake #2 at my grandparents cabin near Park Rapids. But we never caught much for fish.

To catch fish you need to know a bit about them. Take the myth that fish are inactive during the afternoon, for example. Fish tend to go deep and hide in the hot summer afternoons. So a good angler should go fish deeper in the hot afternoon. But some avoid fishing midafternoon. Or maybe they give up too easily when the fish “aren’t biting.”

So that is my personal summer update, which serves as a good foundation for reminding folks like us to keep at this investing business.

Not in decades has our style of investing ever been "broken." What happens is people decide the ideas are not working and quit. Be humble. Do not quit.

The investing market feels very much opportunistic at this time. You have to know where to look, and what to fish for.

Here are the three things that I am seeking to take advantage of or looking for next:

#1. Well run companies are looking good. Stocks are just too broad a topic. It is like telling someone you are going fishing. What kind? Shore fishing? Deep lake fishing? What type of fish ... you get it.

I have a high conviction for profitable companies that payout a profit to shareholders. ( Watch this presentation .) I wrote in May that industrials would serve as a longer term investment pursuit because of the 100s of billions being made available from the government to rebuild water, roads, and infrastructure. Market Quiz: Guess what outperformed Microsoft’s stock in June? John Deere did; and Caterpillar. Oh, Deere! (Not an individual stock or investment recommendation.)

Give things time and good things can happen.

#2. Bonds took a bath; but are lurking for us.

At this time I would not pull up the anchor and leave bonds behind. And bonds are certainly still an anchor for my retirees portfolios and balanced portfolios. In fact, bonds overall are quiet and positive this year. (As measured by the Aggregate US Bond Index.)

-And while bond prices are down from last years bath, the equivalent yields (the interest they pay out) are substantially higher.

-Bond prices can rise when interest rates are reduced even a little from here. Informed investors know this is when bonds start to really grab hold. Bonds are definitely feeling like a big bite nibbling our line. Bonds values the past three years as an average have become like a beach ball being held under the waters surface. What happens when we let go of that beach ball? It pops up above the surface. Rates get cut a bit and bond investors who have been soaked should see value rise, again.

#3. We have higher interest rates for short term spending needs. Be forewarned that this does not last forever. Please get a good bank that pays a competitive interest rate (4+ % on savings are out there!).

-Do not over commit. Be ready and open to the idea that bonds and stocks have historically outperformed just as interest rates peak. And I do think interest rates have peaked right about here.

Is a recession next?

It might be. But that was the fear from 2010-2020. Today I can feel good about guiding folks through a scary prolonged bear market. Last May I said it felt like we were muddling through a self-induced recession. Perhaps that is what it amounted to. I also reminded folks that a recession arrives AFTER the market bottoms. Investors tend to sniff out the bad news in advance. Have we done that yet?

October 2022 was probably the low for equity investors. Can you be brave enough to go through this next period? Can you find optimism? Can you avoid the temptation to be greedy and act with FOMO? (A well known investor virus that causes an investor to act with a the fear of missing out.)

Phone it in if you have concerns or changes to review. We love hearing from you over the summer months.

Carry on.

Peter

En core from May 2023

Fear Knocked; Facts Answered

That uncomfortable passenger's fear is real. Their fight-or-flight response is in high gear. But what are they worried about? They are worried about the unknown, of course! The fear and panic are real.

I would prefer that clients feel comfortable and fit for the miles in front of us. Let's look at investing for the long term while seizing upon facts.

Investing for the long term assumes that you buy and hold quality investments. But what about reading about the state of the markets we are investing in? Investing for the long term involves adapting as time passes. Observe facts and act accordingly.

Fact: The Inflation Reduction Act will infuse 100s of billions into the US Industrial and Energy space. (McKinsey) There is more being poured in over the next decade.

Fact: The CHIPS Act is bringing 10s of billions into US Semiconductor companies. (CNBC)

Fact: Higher yields are available to us now. Today, when money is moved from investments and put in "short-term" parking via money market funds or short-term treasuries, it reaps a good risk-off reward. This is a tricky dilemma. If money sits there too long you could miss out on growth via stocks. So the emphasis is on short-termhere. It is generally prudent to invest funds intended for growth into stocks.

Fact: Bond prices should go up when rates go down.

Probable Fact: Bond values that burst last year may boom soon. All it may take is a slight interest rate CUT from the Federal Reserve. So think about getting on (or remaining on) that plane before it takes off again.

*These are hypothetical examples are are not representative of any specific situation. Your results will vary.The hypothetical rate of return used does not reflect the deduction of fees and charges inherent to investing

Peter Mullin is an independent financial advisor registered through LPL Financial. He was born and raised in St. Cloud, MN. Mullin Wealth Management is headquartered in Saint Cloud, MN.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification and asset allocation do not protect against market risk.

References to markets, asset classes, and sectors are generally regarding the corresponding market index.

Indexes are unmanaged statistical composites and cannot be invested into directly.

Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

All performance referenced is historical and is no guarantee of future results.

The payment of dividends is not guaranteed. Companies may reduce or eliminate the payment of dividends at any given time.

No strategy assures success or protects against loss.

Securities and Advisory services offered through LPL Financial, A Registered Investment Advisor, Member FINRA/SIPC.

Video: What Smart Investors Know

ppmullin@gmail.com (Peter Mullin) — Mon, 03 Jul 2023 19:12:58 GMT

What Smart Investors Know

How do you make investment choices? Are your decisions based on rational analysis? Or are they driven by emotion? Conventional wisdom would assume that people make rational choices to increase their own financial well-being by careful investing. In the real world however, people often behave irrationally. Consider how many people purchase lottery tickets in the hope of hitting a big jackpot. From a purely logical standpoint, it does not make sense to buy a lottery ticket when the odds of winning are overwhelmingly against the ticket holder. Despite this, millions of people buy lottery tickets every year . In the same way, many investment decisions are driven by a desire to win big rather than by a long term diversified strategy. Your investment decisions may have a significant impact on the quality of life you enjoy in the future. Call today, and let\'s discuss how to make sound choices as you pursue your objectives.

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The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named representative, broker - dealer, state - or SEC - registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

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The LPL Financial representatives associated with this website may discuss and/or transact securities business only with residents of the following states: AL, AZ, AR, CA, CO, FL, ID, IL, IA, MN, MO, NM, TX, WA, WI.

Are Markets Ready to Take Off ? S14E9 May 2023

ppmullin@gmail.com (Peter Mullin) — Thu, 11 May 2023 16:37:35 GMT

It is May, and we are nearing the year's halfway point. Here are two financial planning tips to look into this spring to save some money. Then, read on to learn about the investing environment.

This month I want to share two ideas that can add value unrelated to investing. They both take some time but can add some savings to your pocket.

Consider a big one this time. Look at the real interest rate you are getting for the balance you keep at the bank.

1. $10,000 with a .5% rate gets $50 annually
2. $10,000 with a 3.5% rate gets $350 annually.
3. It would be best if you had a sum of funds available for your 3-12 month needs at the bank. Banks do serve a significant role in our lives. But the big banks still need to offer more in the way of interest. Check out the local banks in your area.

2. Check in with your internet and cable company. Has it been a few years since you asked them for a new rate or deal? I just got my Saint Cloud office internet bill reduced by $50 per month. I could not believe it! (That is $600 per year.)

Stay informed

Most clients truly delegate the tough work and gritty details to me. And delegating this work is what we are here for. So, if you are among the clients who entrust the process and decisions to us, here is your abbreviated update: I think we will be OK.

Regardless, read on to stay informed. An informed investor is better equipped for the road ahead.

Portfolio Placement

Some resources that guide my choices are in the below links. LPL Financial Research: April 2023 Global Strategy
Seasonal Portfolio Adjustments: Sell in May; but Monitor

Imagine sitting on an airplane and hitting an uncomfortable patch of turbulence. The fellow beside you gets up and starts knocking on the cockpit door, pleading loudly for reassurance. "You're sure you know what you're doing up there!?"

This ought to stand out as awkward behavior. And could have them escorted off at the next stop.

But this behavior is no different than those who try to handle investment uncertainty with spontaneous and wild changes.

Fear Knocked; Facts Answered

I would prefer that clients feel comfortable and fit for the miles in front of us. Let's look at investing for the long term while seizing upon facts.

Fact : The Inflation Reduction Act will infuse 100s of billions into the US Industrial and Energy space. (McKinsey) There is more being poured in over the next decade.

Fact : The CHIPS Act is bringing 10s of billions into US Semiconductor companies. (CNBC)

Fact : Higher yields are available to us now. Today, when money is moved from investments and put in "short-term" parking via money market funds or short-term treasuries, it reaps a good risk-off reward. This is a tricky dilemma. If money sits there too long you could miss out on growth via stocks. So the emphasis is on short-term here. It is generally prudent to invest funds intended for growth into stocks.

Fact: Bond prices should go up when rates go down.

Probable Fact : Bond values that burst last year may boom soon. All it may take is a slight interest rate CUT from the Federal Reserve. So think about getting on (or remaining on) that plane before it takes off again.

Investment Take Aways

So what is our 6-month pathway through the current environment? Well, the good news is we are using ideas that have been through this before. Broadly, I have taken a more defensive posture. But there are better ways to achieve long-term portfolio growth than a defensive posture. So the next six months will see additions to my core and tactical ideas.

Holding some investment funds in short-term cash or cash-like positions is savvy. Each unit of low risk is rewarded with a big reward in the form of interest or yield.
Dividend-paying stocks are still in focus. Dividends are how companies pass success and profit on to shareholders. Watch my webinar. Click here. Dividend stocks may feel sluggish from time to time. But long-term investors have been rewarded.
Industrials and green energy will be topical for some time. Billions will be poured into this space over the next decade.

The above image and chart regarding dividend growers is provided via Capital Group/American Funds.

Peter Mullin is an independent financial advisor registered through LPL Financial. He was born and raised in St. Cloud, MN. Mullin Wealth Management is headquartered in Saint Cloud, MN.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification and asset allocation do not protect against market risk.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

All performance referenced is historical and is no guarantee of future results.

The payment of dividends is not guaranteed. Companies may reduce or eliminate the payment of dividends at any given time.

No strategy assures success or protects against loss.

Securities and Advisory services offered through LPL Financial, A Registered Investment Advisor, Member FINRA/SIPC.

Peter Mullin Recognized as one of LPL Financial's Top Financial Advisors 2023

ppmullin@gmail.com (Peter Mullin) — Tue, 18 Apr 2023 19:35:36 GMT

FOR IMMEDIATE RELEASE

Contact:

Peter Mullin

320-259-7030

peter@MullinWealth.com

PETER MULLIN RECOGNIZED AS ONE OF LPL FINANCIAL’S TOP FINANCIAL ADVISORS

Saint Cloud | Minnesota — April 17, 2023 – Peter Mullin, an independent LPL Financial advisor at Mullin Wealth Management in Saint Cloud and Maple Grove, today announced his inclusion in LPL’s Freedom Club. With more than 21,000 LPL-affiliated advisors nationwide, LPL awards this distinction to select advisors based upon their business success*.

“On behalf of LPL, I’m thrilled to congratulate <Advisor first name>,” said Angela Xavier, LPL executive vice president, Independent Advisor Services. *“It is an honor to support Peter Mullin with the technological infrastructure, integrated products and differentiated services that help advisors run a thriving practice. We wish Peter Mullin and his entire team even greater success as they continue to help their clients work towards their financial goals in the years ahead.”

Mullin is affiliated with LPL Financial, a leading wealth management firm. LPL provides the resources, tools and technology that support advisors in their work to enrich their clients’ financial lives.

# # #

About LPL Financial:

LPL Financial (Nasdaq: LPLA) was founded on the principle that the firm should work for the advisor, and not the other way around. Today, LPL is a leader in the markets we serve**, supporting more than 21,000 financial advisors, including advisors at approximately 1,100 institution-based investment programs and at approximately 500 registered investment advisor ("RIA") firms nationwide. We are steadfast in our commitment to the advisor-centered model and the belief that Americans deserve access to personalized guidance from a financial advisor. At LPL, independence means that advisors have the freedom they deserve to choose the business model, services, and technology resources that allow them to run their perfect practice. And they have the freedom to manage their client relationships because they know their clients best. Simply put, we take care of our advisors, so they can take care of their clients.

*Achievement is based on top <15 / 23>% of annual production among LPL Advisors only.

**Top RIA custodian (Cerulli Associates, 2020 U.S. RIA Marketplace Report). No. 1 Independent Broker-Dealer in the U.S. (Based on total revenues, Financial Planning magazine 1996-2022). Among third-party providers of brokerage services to banks and credit unions, No. 1 in AUM Growth from Financial Institutions; No. 1 in Market Share of AUM from Financial Institutions; No. 1 in Market Share of Revenue from Financial Institutions; No. 1 on Financial Institution Market Share; No. 1 on Share of Advisors. (2021-2022 Kehrer Bielan Research & Consulting Annual TPM Report). Fortune 500 as of June 2021.

LPL and its affiliated companies provide financial services only from the United States.

Throughout this communication, the terms “financial advisors” and “advisors” include registered representatives and/or investment adviser representatives affiliated with LPL Financial LLC, an SEC registered broker-dealer and investment adviser.

Securities and Advisory services offered through LPL Financial, A Registered Investment Advisor, Member FINRA / SIPC .

Power of Dividends and Time

ppmullin@gmail.com (Peter Mullin) — Fri, 10 Mar 2023 18:00:22 GMT

Secure Act 2.0

ppmullin@gmail.com (Peter Mullin) — Mon, 30 Jan 2023 18:15:02 GMT

SECURE Act 2.0: An Overview

RETIREMENT

READ TIME: 4 MIN

In the final days of 2022, Congress passed a new set of retirement rules designed to facilitate contribution to retirement plans and access to those funds earmarked for retirement.

The law is called SECURE 2.0, and it is a follow-up to the Setting Every Community Up for Retirement Enhancement (SECURE) Act passed in 2019.

The sweeping legislation has dozens of significant provisions; here are the major provisions of the new law.

New Distribution Rules

Reduced penalty. Starting in 2023, if you miss an RMD for some reason, the penalty tax drops to 25 percent from 50 percent. If you promptly fix the mistake, the penalty may drop to 10 percent.3

New Accumulation Rules

Automatic enrollment. In 2025, the Act requires employers to automatically enroll employees into workplace plans. However, employees can choose to opt-out.5

Revised Roth Rules

529 to a Roth. Starting in 2024, pending certain conditions, individuals can roll a 529 education savings plan into a Roth individual retirement account (IRA). Therefore, if your child receives a scholarship, goes to a less expensive school, or does not go to school, the money can get repositioned into a retirement account. However, rollovers are subject to the annual Roth IRA contribution limit. Roth IRA distributions must meet a five-year holding requirement and occur after age 59½ to qualify for the tax-free and penalty-free withdrawal of earnings. Tax-free and penalty-free withdrawals are also allowed under certain other circumstances, such as the owner’s death. The original Roth IRA owner is not required to take minimum annual withdrawals.7

SIMPLE and SEP. 2023 onward, employers can make Roth contributions to savings incentive match plans for employees (SIMPLE) or simplified employee pension (SEP).8

More Highlights

Qualified charitable donations (QCDs). 2023 onward, QCDs will adjust for inflation. The limit applies on an individual basis; therefore, for a married couple, each person who is 70½ years and older can make a QCD as long as it remains under the limit.11

1. Fidelity.com, December 23, 2022
2. CNBC.com, December 22, 2022
3. Fidelity.com, December 22, 2022
4. Fidelity.com, December 22, 2022
5. Paychex.com, December 30, 2022
6. PlanSponsor.com, December 27, 2022
7. CNBC.com, December 23, 2022
8. Forbes.com, January 5, 2023
9. Forbes.com, January 5, 2023
10. Paychex.com, December 30, 2022
11. FidelityCharitable.org, December 29, 2022

1-05355879

Timing Your Retirement

ppmullin@gmail.com (Peter Mullin) — Fri, 30 Dec 2022 18:07:56 GMT

T he content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named representative, broker - dealer, state - or SEC - registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Securities and Advisory services offered through LPL Financial, a Registered Investment Advisor. Member FINRA & SIPC.

Important birthdays over 50

ppmullin@gmail.com (Peter Mullin) — Thu, 01 Dec 2022 20:08:15 GMT

Important Birthdays Over 50

Retirement Read Time: 4 min

Most children stop being “and-a-half” somewhere around age 12. Kids add “and-a-half“ to make sure everyone knows they’re closer to the next age than the last.

When you are older, “and-a-half” birthdays start making a comeback. In fact, starting at age 50, several birthdays and “half-birthdays” are critical to understand because they have implications regarding your retirement income.

Age 50

At age 50, workers in certain qualified retirement plans are able to begin making annual catch-up contributions in addition to their normal contributions. Those who participate in 401(k), 403(b), and 457 plans can contribute an additional $6,500 per year in 2022. Those who participate in Simple Individual Retirement Account (IRA) or Simple 401(k) plans can make a catch-up contribution of up to $3,000 in 2022. And those who participate in traditional or Roth IRAs can set aside an additional $1,000 a year. ^1,2

Age 59½

At age 59½, workers are able to start making withdrawals from qualified retirement plans without incurring a 10% federal income-tax penalty. This applies to workers who have contributed to IRAs and employer-sponsored plans, such as 401(k) and 403(b) plans (457 plans are never subject to the 10% penalty). Keep in mind that distributions from traditional IRAs, 401(k) plans, and other employer-sponsored retirement plans are taxed as ordinary income.

Age 62

At age 62 workers are first able to draw Social Security retirement benefits. However, if a person continues to work, those benefits will be reduced. The Social Security Administration will deduct $1 in benefits for each $2 an individual earns above an annual limit. In 2022, the income limit is $19,560. ³

Age 65

At age 65, individuals can qualify for Medicare. The Social Security Administration recommends applying three months before reaching age 65. It’s important to note that if you are already receiving Social Security benefits, you will automatically be enrolled in Medicare Part A (hospitalization) and Part B (medical insurance) without an additional application. ⁴

Age 65 to 67

Between ages 65 and 67, individuals become eligible to receive 100% of their Social Security benefit. The age varies, depending on birth year. Individuals born in 1955, for example, become eligible to receive 100% of their benefits when they reach age 66 years and 2 months. Those born in 1960 or later need to reach age 67 before they’ll become eligible to receive full benefits. ⁵

Age 72

In most circumstances, once you reach age 72, you must begin taking required minimum distributions from a traditional Individual Retirement Account and other defined contribution plans. You may continue to contribute to a traditional IRA past age 70½ as long as you meet the earned-income requirement.

Understanding key birthdays may help you better prepare for certain retirement income and benefits. But perhaps more importantly, knowing key birthdays can help you avoid penalties that may be imposed if you miss the date.

-----------------------------------

1. If you reach the age of 50 before the end of the calendar year.
2. IRS.gov, 2022
3. SSA.gov, 2022
4. SSA.gov, 2022. Individuals can decline Part B coverage because it requires an additional premium payment.
5. SSA.gov, 2022

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2022 FMG Suite.

1-05289740

Headlines: What difference can a year make?

ppmullin@gmail.com (Peter Mullin) — Thu, 29 Sep 2022 16:35:25 GMT

*NEW! Listen to this post here >> What difference can a year make?

" Consumers' confidence takes dive " - Associated Press (JANUARY 1982)

"Inflation Roars Back To 1981 Levels on Record Gas Prices" - The Street (2022)

" Still Inflated " -New York Times (June 1981)
" Panic sweeps financial markets smashing records of 1929 crash " -

The Globe and Mail (Black Moday 1987)

" DOW soars to record ... despite vulnerable economy " -NY Times (December 1991)

Are today's headlines different? No. They are not. And fortunately, I do not think you will need to live another decade to see this vexatious 2022 environment improve. So we may see a very reasonable ten-year period ahead in terms of an average portfolio return.

I said boldly in May that this would be a policy reversion recession, and I think that is correct. When the June low and August lows arrived, investors may have found me adding a measured amount of risk in the form of quality blue chip stocks to portfolios. This can help the coiled (and rusty?) spring bounce back.

And next year? When we have gone so low, history favors an above- average bounce.

But what about today? Yes, September has brought us to those June lows again. Does it change our destination? No. It's a frustrating traffic jam.

So policy reversion means that there's tightening. You see that impact in places like the critical mortgage rates, probably headed to seven percent soon.

But I would still isolate the "mild" recession to policy goals. The goal: Get prices down.

I am also listening to how much cash is on the sideline. How much money is on the sideline? Good question. Consumers and investors are still holding onto trillions of dollars of cash. This likely makes the cost of a recession to consumers hurt less. However, this is likely also an economic class recession – meaning not all people are treated equally during this recession.

Certainly, low-income individuals have already been feeling the pain of shopping. I cannot believe my eyes when I continue to see a box of cereal for sale for five dollars at Target. I do not know about you, but I am passing up on many of the pantry snack items we might buy because the price is just absurd.

Once again, I think the frustrating thing to any consumer is gas prices. It is still 20% higher than last year, and yet the price of gas lately has jumped lower, supposedly pricing in a recession. So why is gas not below three dollars a gallon already?

And then you have folks doing just fine. People are buying $1000 iPhones. Costco has more members than ever (Wall Street Journal). People are buying $120 yoga pants and $50,000 cars. They are, however, trying to bring inflation down for those who cannot afford to choose between food and heating this winter.

The government is not crying in their tea for the middle-class. So maybe the middle-class millionaire and retirees portfolio is on its own for a while longer.

Mr. Warren Buffett tells us a varation of Will Rogers quote, "The most important thing to do if you find yourself in a hole is to stop digging."

So clients, lets just wait a little while longer.

Investing involves risks including possible loss of principal.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly.

Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges.

Securities and Advisory services offered through LPL Financial, A Registered Investment Advisor, Member FINRA/SIPC.

Mullin Wealth Management

http://www.mullinwealth.com

Securities and Advisory services offered through LPL Financial, a Registered Investment Advisor. Member FINRA & SIPC.
The LPL Financial representatives associated with this website may discuss and/or transact securities business only with residents

of the following states: AL, AZ, AR, CA, CO, FL, ID, IL, IA, MN, MO, NM, TX, WA, WI.

Market News SOS

ppmullin@gmail.com (Peter Mullin) — Thu, 22 Sep 2022 16:08:38 GMT

Market News SOS

Are we in a recession or not?

ppmullin@gmail.com (Peter Mullin) — Wed, 03 Aug 2022 18:07:44 GMT

Managing the risk of outliving your money

ppmullin@gmail.com (Peter Mullin) — Fri, 15 Jul 2022 14:48:50 GMT

ESTATE

READ TIME: 3 MIN

"What is your greatest retirement fear?"

If you ask some pre-retirees this question, "outliving my money" may be one of the top answers. In fact, 42% of workers say they fear outliving their savings and investments. 1

Retirees face greater "longevity risk" today.

The Census Bureau says that Americans typically retire around age 63 for women and 65 for men. Social Security projects that today's 63-year-olds will live into their mid-eighties, on average. This is a mean life expectancy, so while some of these seniors may pass away earlier, others may live past 90 or 100. 2,3

If your retirement lasts 20, 30, or even 40 years, how well do you think your retirement savings will hold up? What financial steps could you take in your retirement to try and prevent those savings from eroding? As you think ahead, consider the following possibilities and realities.

How will Social Security work in the future?

For decades, Social Security took in more dollars per year than it paid out. That ongoing surplus - also known as the Social Security Trust Fund – may face funding challenges as early as 2034. Congress may act to address this financing issue before then, but the worry is that future retirees could get slightly less back from Social Security than they put in. It's critical that pre-retirees estimate the amount of Social Security benefits they are expected to generate in the future. 4

Preparing for out-of-pocket health care costs.

You can enroll in Medicare at age 65, but how do you handle the premiums for private health insurance if you retire before then? Striving to work until you are eligible for Medicare makes economic sense and so does setting aside money to pay for health care costs. A healthy couple retiring at age 65 can expect to pay nearly $208,000 in lifetime out-of-pocket healthcare expenses, even if they have additional coverage such as Medicare Part D, Medigap, and dental insurance. 5

Luck is not a plan, and hope is not a strategy.

Those who are retiring unaware of these factors may risk outliving their money. Creating a strategy may help you better prepare for retirement.

1. TransamericaCenter.org, 2021
2. TheBalance.com, 2021
3. Social Security Administration, 2021
4. Kiplinger.com, 2021
5. HealthView Services, 2021

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2022 FMG Suite.

1-05264038

Three Key Questions to Answer Before Taking Social Security

ppmullin@gmail.com (Peter Mullin) — Fri, 15 Jul 2022 14:42:00 GMT

RETIREMENT

READ TIME: 3 MIN

Social Security is a critical component of the retirement financial strategy for many Americans, so before you begin taking it, you should co nsider three important questions. The answers may affect whether you make the most of this retirement income source.

When to Start? You have the choice of 1) starting benefits at age 62, 2) claiming them at your full retirement age, or 3) delaying payments until age 70. If you claim early, you can expect to receive a monthly benefit that will be lower than what you would have earned at full retirement. If you wait until age 70, you can expect to receive an even higher monthly benefit than you would have received if you had begun taking payments at your full retirement age. The decision of when to begin taking benefits may hinge on whether you need the income now or can wait, and whether you think your lifespan will be shorter or longer than the average American.
Should I Continue to Work? Work provides income, personal satisfaction, and may increase your Social Security benefits. However, if you begin taking benefits prior to your full retirement age and continue to work, your benefits will be reduced by $1 for every $2 in earnings above the prevailing annual limit ($19,560 in 2022). If you work during the year in which you attain full retirement age, your benefits will be reduced by $1 for every $3 in earnings over a different annual limit ($51,960 in 2022) until the month you reach full retirement age. After you attain your full retirement age, earned income no longer reduces benefit payments. [ 1 ]
How Can I Maximize My Benefit? The easiest way to maximize your monthly Social Security benefit is to simply wait until you turn age 70 before receiving payments.

[1. SSA.gov, 2022 ]

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright 2022 FMG Suite.

Do Our Biases Affect Our Financial Choices?

ppmullin@gmail.com (Peter Mullin) — Mon, 27 Jun 2022 15:39:38 GMT

Investors are routinely warned about allowing their emotions to influence their decisions. However, they are not often cautioned about their preconceptions and biases that may color their financial choices.

In a battle between the facts & biases, our biases may win. If we acknowledge this tendency, we may be able to avoid some unexamined choices when it comes to personal finance. It may actually "pay" to recognize blind spots and biases with investing. Here are some common examples of bias creeping into our financial lives.

Letting emotions run the show.

How many investment decisions do we make that have a predictable outcome? Hardly any. In retrospect, it is all too easy to prize the gain from a decision over the wisdom of the decision and to, therefore, believe that the findings with the best outcomes were the best decisions (not necessarily true). Put some distance between your impulse to make a change and the action you want to take to help get some perspective on how your emotions affect your investment decisions. 1

Valuing facts we "know" & "see" more than "abstract" facts.

Information that seems abstract may seem less valid or valuable than information related to personal experience. This is true when we consider different types of investments, the state of the markets, and the economy's health. 1

Valuing the latest information most.

The latest news is often more valuable than old news in the investment world. But when the latest news is consistently good (or consistently bad), memories of previous market climate(s) may become too distant. If we are not careful, our minds may subconsciously dismiss the eventual emergence of the next market cycle. 1

Being overconfident.

The more experienced we are at investing, the more confidence we have about our investment choices. When the market is going up, and a clear majority of our investment choices work out well, this reinforces our confidence, sometimes to a point where we may start to feel we can do little wrong, thanks to the state of the market, our investing acumen, or both. This can be dangerous. 2

The herd mentality.

You know how this goes: if everyone is doing something, they must be doing it for sound and logical reasons. The herd mentality leads some investors to buy high (and sell low). It can also promote panic selling. The advent of social media hasn't helped with this idea. Above all, it encourages market timing, and when investors try to time the market, it can influence their overall performance. 3

Sometimes, asking ourselves what our certainty is based on and reflecting on ourselves can be helpful and informative. Examining our preconceptions may help us as we invest.

1. Investopedia.com, 2022
2. Investopedia.com, 2021
3. WebMD.com, 2022

Pullbacks, Corrections and Bear Markets

ppmullin@gmail.com (Peter Mullin) — Fri, 10 Jun 2022 20:42:14 GMT

READ TIME: 3 MIN

When the market drops, some investors lose perspective that downtrends and uptrends are part of the investing cycle. When stock prices break lower, it's a good time to review common terms that are used to describe the market's downward momentum.

Pullbacks.

A pullback represents the mildest form of a selloff in the markets. You might hear an investor or trader refer to a dip of 5-10% after a peak as a "pullback.” 1

Corrections.

The next degree in severity is a "correction." If a market or markets retreat 10% to 20% after a peak, you’re in correction territory. At this point, you’re likely on guard for the next tier. 2

Bear Market.

In a bear market, the decline is 20% or more since the last peak. 2

All of this is normal.

"Pullbacks, corrections, and bear markets are a part of the investing cycle."

When stock prices are trending lower, some investors can second-guess their risk tolerance. But periods of market volatility can be the worst times to consider portfolio decisions.

Pullbacks and corrections are relatively common and represent something that any investor may see from time to time in their financial life, often several times over the course of a decade. Bear markets are much rarer. In fact, between April 1947 and September 2021, there have only been 14 bear markets. 3

A retirement strategy formed with a financial professional has market volatility factored in. As you continue your relationship with that professional, they will also be at your side to make any adjustments and help you make any necessary decisions along the way. Their goal is to help you pursue your goals.

1. Investopedia.com, August 23, 2021
2. Forbes.com, September 20, 2021
3. Investopedia.com, October 29, 2021

My best advice in a manic market

ppmullin@gmail.com (Peter Mullin) — Mon, 09 May 2022 21:07:12 GMT

My best advice in a manic market

By Peter Mullin, a Financial Consultant

Clients, we have never been in it for last year's results. Instead, we are betting on future potential.

We know life is not perfect. But over time, it will be okay.

There are life lessons we can draw on from investing.

One lesson involves taking bad days with a grain of salt. Things have always gotten better. My best advice is to keep the long view in mind during times that test our wits.

But there is war. There is hyperinflation. This market is out of control. I can't lose anymore.

These thoughts are all bricks in the wall of worry we all face. We lose when we jump out of our long-term strategy and reassure ourselves that we can always get back in. Keep your seatbelts fastened. And really. Please stop looking at your daily portfolio balance.

Here is a quick chart and reminder of how the long-term has felt:

I want you first to note the blue on this simple bar chart. The blue is that index’s YTD negative results. We, as investors, do not like negative routs. (I’m not particularly eager to lose.) How has a portfolio been doing lately? And compared to what? Bonds seek stability in a tumultuous market. This year has seen the rug pulled from bond stability – so far. (Chart on the next page.)

And so when you blend stocks and bonds, we still get a pretty decent drawdown. But put our 20/20 glasses on for a moment. Ask if we should have been heavily invested in bonds over the past three years. Would our money have grown substantially? How about the past 10 years (See the grey bar.)?

Folks, the 1950's, Nobel-prize winning idea called diversification has not gone out of style. Likewise, the balanced (*Morningstar Moderate Allocation) approach has not gone out of style.

The good news is that we may have a good entry point to rebalance our portfolios into bonds and equity. Why? Please read LPL Financial Research's blog entry: Finally Some Income for Your Fixed Income
Let's keep moving through 2022 together. We face the wall of worry together. I am here if you are wondering if you are doing Okay.

Carry on!

Peter Mullin, AAMS ^®

Data referenced : All chart data provided by Morningstar based on respective index. Please see below for further information. The respective indexes are the S&P 500, Bloomberg Barclays US Aggregate Index , and *Morningstar Moderate Allocation. Balanced* represents Morningstar Moderate Allocation. This portfolio can have 50-70% invested in broad equities and the remainder would be in fixed income and cash (Reference Morningstar, Inc). The US Aggregate Bond Index or Bloomberg Barclays US Aggregate Index The S&P 500 is an aggregate of 500 companies. All performance referenced is historical and is no guarantee of future results.

Investing involves risks including possible loss of principal.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly.

Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges.

Securities and Advisory services offered through LPL Financial, A Registered Investment Advisor, Member FINRA / SIPC .

An Attractive Entry Point

Thu, 05 May 2022 16:21:44 GMT

Client Letter, April 28, 2022

PETER MULLIN , AAMS®

Mullin Wealth Management

April 28, 2022

Dear Valued Investor,

It has been a turbulent 2022 so far for investors. The S&P 500 Index is on track for its worst April in more than 40 years, the Nasdaq entered a bear market on April 26 with its more than 20% decline, and bonds, which typically provide ballast for diversified portfolios during periods of stock market volatility, have not protected.

Markets face a number of threats. The COVID-19 pandemic has contributed to a disappointing start to the year for the U.S. economy as evidenced by the -1.4% growth in gross domestic product (GDP) reported on April 28. COVID-19 continues to disrupt global supply chains amid intermittent lockdowns in some of China’s largest cities. Russia’s devastating assault on Ukraine, arguably the biggest geopolitical threat in Europe since WWII, has added to the worst inflation problem in the U.S. since the 1970s. The bond market is pricing in nine more Federal Reserve (Fed) rate hikes, after looking for only three when the year began. That’s a lot for investors to digest.

But during a market correction it’s easy to forget that this volatility is actually quite normal.

The S&P 500 Index has fallen 13% peak to trough this year, below the 14% average of all years.
During midterm election years, the average stock market correction is 17%, but stocks rebounded 32% on average in the 12 months following those midterm year lows.
Of the last 21 times the S&P 500 has been down double-digits since 1980, stocks rallied back to end the year positive 12 times.
During those 12 positive years, the average gain has been a stellar 17%.

We will admit a double-digit gain in 2022 is unlikely, but a U.S. consumer willing and able to spend, which makes recession unlikely in the near term, and steadily rising corporate profits still make a positive year for stocks in 2022 more likely than not, in our view.

Inflation remains a big concern, but a number of factors could put downward pressure on prices beginning this summer. On the supply side, where most of the problem lies, supply chain normalization and more job-seekers coming off the sidelines could help ease pressure on goods prices and wages. An eventual cease-fire in Ukraine could remove some of the upward pressure on commodity prices. On the demand side, higher interest rates can help cool housing. The bond market is already doing some of the Fed’s work with the 10-year Treasury yield nearly doubling in four months to 2.8%. These factors could easily cut headline consumer inflation in half by year-end from the current annual pace of 8.5%.

The outlook for corporate profits remains quite positive and may help prevent stocks from pulling back much further. With about 180 S&P 500 companies having reported, double-digit earnings growth appears within reach while analysts’ estimates for 2022 have continued to rise. These numbers are excellent considering slow economic growth, supply chain disruptions, and inflationary pressures.

The investing climate is quite challenging, but history suggests patience will be rewarded. Even if there may be some downside in the short term, consumer and business fundamentals remain supportive. Strong profits and lower stock prices mean more attractive valuations. Our belief is that current levels will end up being an attractive entry point.

Please contact me if you have any questions.

Sincerely,

Peter Mullin

Important Information

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

All data is provided as of April 28, 2022.

All index data from FactSet.

This Research material was prepared by LPL Financial, LLC. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

ppmullin@gmail.com (Peter Mullin) — Fri, 29 Apr 2022 19:01:33 GMT

Some Good Things and Some Bad Things About Stocks & Bonds

2022 is off to a very poor start for both stocks and bonds, but it isn’t all bad. In our latest LPL Street View video, LPL Financial Chief Market Strategist Ryan Detrick discusses some good news and some bad news.

Higher inflation, a slowing economy, geopolitical concerns, and a hawkish Fed are all well-known worries and could continue to hinder any stock bounces. Additionally, midterm years don’t see stocks usually bottom until the second half of the year. But it isn’t all bad news, as the U.S. consumer is still very healthy, corporate America is in good shape, earnings are strong, and overall sentiment is quite pessimistic, which can be bullish from a contrarian point of view.

IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth in the podcast may not develop as predicted and are subject to change.

References to markets, asset classes, and sectors are generally regarding the corresponding market index. All indexes are unmanaged and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

All index data is from FactSet.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This Research material was prepared by LPL Financial, LLC.

Member FINRA/SIPC

For Public Use — Tracking #1-05273248

Second Quarter From Peter’s Desk

ppmullin@gmail.com (Peter Mullin) — Tue, 12 Apr 2022 18:43:18 GMT

Quarterly Kernels

We had two terrific years in portfolios. Again, many clients see those results on paper as taxes are filed for 2021. We moved on from some decent gains to remodel our portfolios for the upcoming season.

Today I am partly preparing for a climate where protecting a portfolio is equally as valuable as growing the portfolio. So I am closely monitoring inflation, recession concerns, and how consumers are feeling.

What’s next?

Now, multiple sources, including LPL Research, tell us to remain steadfast and realize that we can avoid a recession at least for 12-18 months.

But I am a fan of preparing firewood before the winter storm.

So that’s what we will do – just in case. There are

plenty of reasons to remain measuredly optimistic for US Stocks - especially particular categories of stocks.

Inflation is a mess. It is also difficult to forecast. This inflation

comes from excess money being poured on consumers

when we stopped the economy. It has been

intensified through supply-chain issues and war.

You don’t get out of an economic period in weeks. The economy

thinks in quarters and years.

What is the government thinking?

The Federal Reserve still has the ball to start the 2nd quarter of the year. And its effects will take months to be felt. But some things have begun to show slight moves toward normal.

Used car demand is down, according to CoPilot. But prices are still sky-high. As the demand for a used car slows, the price ought to correct.

Mortgage rates are already north of 5%, which I think is good thing for those who have been overwhelmed by the irrational housing market. Higher rates makes a monthly mortgage payment more expensive for a buyer with a mortgage. It makes a buyer redo the math.

-More homes were listed this spring. That means more inventory.

-More listings had to reduce their price in March 2022 . (Redfin)

Bond investors have been surprised by interest rate hikes affect on the “safe money.” But reemember, bonds two key components act like a tipping teeter-totter. Rates go up. Bond principal goes down. As we anticipate interest rates rising toward 3% and 3.5%, this could present an attractive refueling opportunity for bond investors.

What is helping fuel custom portfolios?

Bonds : It has been years since I have seen potential beyond an interest rate in bonds. Thank you, Federal Reserve! Many clients have been underweighted bonds for a couple years or more. Though certain types of bonds - like corporate bonds - surprised investors to the downside in March 2022, the move provides a compelling spot to start adding back to bonds.

Particular categories of bonds - like municipal bonds - likely were unfairly punished and can spring back. This happened before in March 2020. It is like holding a beach ball underwater and then letting go.

I have been telling clients for years that decent bond rates are hard to come by. It is about time we get some interest on the money we loan via bonds!

Some defensive posturing and continued commitment to the long haul :

Client portfolios may have seen some additions, such as healthcare exposure. Healthcare management companies, in particular, can be more defensive. But we have to think more long term than the next year or so. For example, it is hard to imagine a world without technology and a need for energy.

Be prepared for the road ahead. Until next time, carry on!

Investing involves risks including possible loss of principal.

Any economic forecasts set forth may not develop as predicted and are subject to change.

Inflation is the reason

ppmullin@gmail.com (Peter Mullin) — Mon, 07 Mar 2022 20:59:12 GMT

Follow me online. I am addressing the ongoing Ukraine crisis and the discomfort this has caused investors online via Facebook.com/mullinwealth and LinkedIn .

Inflation is the reason

Who wins the prize this week for the most expensive price for gasoline?

Who do you know someone that is building a home? Or is talking about putting off a build or remodeling due to high prices?

I was at a meeting recently where a commercial building was discussed, and the steel beams were said to be a year out.

These are notable examples of elevated inflation and supply-chain problems. Meanwhile, investors have been whipsawed by the mechanism that does help control inflation – interest rates. This hits our portfolio values.

You add to this the conflict in Ukraine, and 2022 has been an unpleasant start for investors. The good news? It is likely to get better, but we need to persist and be ready for the end-of-year results.

Two charts to show you WHY we are investors in good and bad portfolio weather are below.

During the year portfolios decline and cause investors to question their strategy. The more informed client may white-knuckle it but stays committed to the portfolio. Last year we only saw a dip of –5 percent in the S&P 500. Those red dots on this chart show that during the year you can expect to dip down at least 10 percent before finishing the year higher.

Do you want to hide money under the mattress?

If the chart showing intra-year dips made you uncomfortable then let’s look at the current inflation environment and bank rates. Inflation was currently read at above 7 percent. How has the bank done at returning interest to your bank account to keep up with inflation? Stocks and now other investment vehicles have kept up with inflation before. I think they can do it, again.

Clients, there is no such thing as the perfect portfolio. My tailored practice has three values. Value #2 states: “ There is no such thing as the perfect portfolio. Instead, I strive to align research and your risk sentiment with suitable strategies to drive results over time. I ask clients to be brave when others are fearful and to be optimistic when others are pessimistic. I think it’s a good life mantra to live by, too.”

Stay prudently optimistic. Carry on!

Follow me online. I am addressing the ongoing Ukraine crisis and the discomfort this has caused investors online via Facebook.com/mullinwealth and LinkedIn .

Did you know? I can post videos and perspectives in real time on social media. I can still get material to you, but social media is where you will likely hear from me first.

Source: Charts provided by JPMorgan Funds

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

No strategy assures success or protects against loss.

Investing involves risk including loss of principal.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification and asset allocation do not protect against market risk.

All performance referenced is historical and is no guarantee of future results.

All indices are unmanaged and may not be invested into directly. No strategy assures success or protects against loss.

Stock investing involves risk including loss of principal. International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price. Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.

Positivity amidst uncertainty - Client Letter

ppmullin@gmail.com (Peter Mullin) — Thu, 24 Feb 2022 20:30:28 GMT

February 24, 2022

Dear Valued Investor,

Stocks have gotten off to a very rocky start in 2022, with the potential for Federal Reserve rate hikes coming and the geopolitical worries over Russia and Ukraine only adding to the uncertainty. We don’t want to minimize the impact of that major geopolitical event, but there is some positive news out there, even though it might not feel like it.

Starting with Russia and Ukraine, the truth is the U.S. economy and the overall stock market likely won’t be impacted much by the recent conflict. In fact, stocks took most previous major geopolitical events in stride. Looking at more than 20 geopolitical events such as the attack on Pearl Harbor and 9/11, the S&P 500 Index fell only about 5% on average.

With anxiety running high, here are some important numbers that should help calm some nerves.

The S&P 500 Index officially moved into a correction of 10% this week for the first time since March 2020. Since 1950, there has been an average of one 10% correction per year, so some volatility was likely simply due.
On average, the index sees a peak-to-trough correction of 14% in any given year, and even in up years there is an 11% correction on average.
After a correction of 10-15%, the index has seen an average one-year gain off the lows of 22% and has gained in 12 of the 13 one-year periods.
Midterm election years tend to be among the most volatile out of the four-year presidential cycle. In fact, the average midterm year sees a peak-to-trough pullback of 17.1%, but stocks are up more than 30% off the lows on average a year later.

The good news is corporate America continues to see strong earnings. S&P 500 earnings per share in the fourth quarter are tracking to a 31% year-over-year increase (FactSet), roughly 10 percentage points above the consensus estimate when earnings season began. The top-line growth was extremely strong as well, with revenue growth up close to 15%. Lastly, profit margins saw very little compression, as companies with pricing power have been able to pass along higher costs and largely preserve those high margins, which are well above pre-pandemic levels.

Finally, COVID-19 trends are very positive as well, with new cases down more than 90% from the January peak (John Hopkins University). Many states are lifting mask mandates and a strong reopening will likely take place over the coming months and into the summer. Backlogs and bottlenecks continue to slowly trend the right way, and the labor force remains quite healthy as well.

The concerns and uncertainties are real, and the road ahead could be filled with more bumps and bruises. However, with U.S. consumers and businesses in solid shape, we think the U.S. economy could grow as much as 4% this year, much better than the pace of the last recovery.

They say it is always darkest before the dawn, and long-term investors should keep this in mind as better times are likely coming in 2022. Please contact your financial professional with any questions.

Sincerely,

Ryan Detrick

Chief Market Strategist LPL Research

Important Information

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

All data is provided as of February 24, 2022.

All index data from FactSet.

This Research material was prepared by LPL Financial, LLC. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

Share Power: One big reason investors should embrace bear markets and pullbacks

ppmullin@gmail.com (Peter Mullin) — Thu, 17 Feb 2022 13:53:58 GMT

Investors can become fixated with the value of their portfolio. You may be like many other investors and pay attention to one highlighted fact on your IRA and 401k statements: Your total dollar value. Am I right?

If your value is down: It feels like you are losing.  
If your value is up: It feels like you are winning.

In this article, I ask you this question, “What does your retirement portfolio’s value matter? And why should you embrace bear markets and pullbacks?”

While even a disciplined portfolio can shrink in the short term, please remember that these are false matters of importance. Does it matter that your value grows over the long-term? You bet! But do not fear your routine value fluctuations.

Some significant factors can be monitored for my clients behind the scenes. Some of these factors are automatic, whether you are retired or not. The first is share power. The second being sustained allocation.

SHARE POWER

You have a big factor working for you. Let’s call it “Share Power.” Think about this: When you invest what are you buying? (e.g., Mutual funds and stocks.)

When you invest, you are buying shares.

If you bought ten shares (of ABC mutual fund) for $100 each in October, and the value of those shares is priced at $80 in December, then you still own ten shares. In fact, you may have more shares if you reinvest dividends and capital gains. December can be a magical month where you automatically get to buy more shares through the simplicity of reinvesting. (*Disclaimer)

Mutual funds and stocks can pay dividends (profits) in December. (They also may pay dividends monthly or quarterly.) And many shareholders default to buying more shares.

Stocks may pay dividends quarterly, too.

"Your portfolio value may lose value during tumultuous months in the stock market. But unless you are folding, and abandoning your strategy, you may benefit in the long haul."

Shares represent your level of ownership in mutual funds and stocks.

Your portfolio value may lose value during tumultuous months in the stock market. But unless you are folding, and abandoning your strategy, you may benefit in the long haul.

Dividends can reinvest to buy more shares. When values go back up you will see the mathematical benefit.
Suppose you bought ten shares of ABC mutual fund for $100 each in October. The value goes down to $80.
But you end up buying one more share at $80 because you receive a dividend from this mutual fund, which you reinvest.
A year from now those shares are valued at $100 a share. That is the original price that you bought your initial ten shares.
But because you received your dividend and reinvested it, your value would now be $1100.
Congratulations. You saw an increase of $100. (*Disclaimer)

SUSTAINED ALLOCATION

Allocation is another word for a category. When investing you may be guided to invest in different groups of investments. And it can be fundamental to sustain this allocation over periods.

I wrote about this here >> Asset Allocation Explained

I highlight cash (or cash-like investments) with clients in conversations. Cash is like fuel for portfolios. It can help you recoup short-term losses faster by pouring cash (or cash-like investments) into your equity when you experience a sudden pullback or bear market.

Sustained is a word that refers to supporting. So you can support your initial allocation by checking in. When you see parts of your portfolio that feel like damaged goods, you can take some of your more conservative portfolio and buy more of your portfolio that is low.

CONCLUSION: Use Share Power and Sustain Your Future Portfolio

So if you find your retirement portfolio value lower, then realize that you can buy more shares at a lower price.

Remember you may have lost dollar value in the short-term, but you can gain share power in the long-term.

I wrote about this in my book, False Financial Finish Lines. (Available on Amazon. Yes, a plug! A great way to visit many topics which I visit with clients about.)

Concerns about a Bear Market or Curious About Your Portfolio Fluctuations?

Schedule Phone Time With Peter

* Disclaimer : [ THESE ARE HYPOTHETICAL EXAMPLES AND ARE NOT REPRESENTATIVE OF ANY SPECIFIC SITUATION. YOUR RESULTS WILL VARY. THE HYPOTHETICAL RATES OF RETURN USED DO NOT REFLECT THE DEDUCTION OF FEES AND CHARGES INHERENT TO INVESTING. ]

Peter Mullin is an independent financial advisor registered through LPL Financial. He was born and raised in St. Cloud, MN. Mullin Wealth Management is located headquartered in Saint Cloud, MN.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification and asset allocation do not protect against market risk.

All performance referenced is historical and is no guarantee of future results.

The payment of dividends is not guaranteed. Companies may reduce or eliminate the payment of dividends at any given time.

No strategy assures success or protects against loss.

2022 Stocks Road Ahead

ppmullin@gmail.com (Peter Mullin) — Fri, 04 Feb 2022 14:52:19 GMT

February 3, 2022

Dear Valued Investor:

The calendar had barely flipped to 2022 and investors were reminded that even attractive long-term stock returns come with a cost: volatility. The S&P 500 Index fell nearly 10% from January 3 through January 27 amid fears that the Federal Reserve (Fed) will have to get a lot more aggressive to fight inflation, before staging a 4% rally over the last two days of the month to end January down 5%. After such a steady march higher in 2021, the dip may have caught some investors off guard.

For those whose anxiety levels may have risen a bit last week, here are some numbers that may provide reassurance:

Even in positive years for the S&P 500, on average the index experiences a maximum peak-to-trough decline of 11%. This year’s max drawdown is now 9.8%.
After a correction of 10-15%, the index has experienced an average one-year gain off the lows of 22% and has risen in 12 of the 13 one-year periods.
The average stock market gain one year after the first Fed rate hike of an economic cycle has been 11%, with gains the past eight cycles dating back to 1983.
When investor sentiment is most negative, as it was during the past two weeks based on the American Association of Individual Investors (AAII) investor sentiment survey, stocks have risen an average of 11% in the next year.

This data argues that stock investors should stay the course. But remember that gains in 2022 will likely be tougher to come by than in 2021. They may be more modest and happen later in the year, as is typical during midterm election years.

The good news is that an inflation peak may be near as the COVID-19 Omicron variant loses its punch. Slower, but still solid, economic growth this year will help cool inflation as Fed rate hikes take hold. We’re already seeing backlogs and bottlenecks start to clear. We expect more people to jump back into the labor force later this year, easing wage pressures. We may also get some help from lower oil prices, though that may have to wait for Russia-Ukraine tensions to die down.

These uncertainties make the road ahead for stocks tougher. But with U.S. consumers and businesses in excellent shape, the U.S. economy may grow 4% this year, well above the pace of the last decade. Corporate America is showing once again during fourth quarter earnings season that it is thriving with S&P 500 earnings poised to increase by more than 25% year-over-year.

Perhaps the stock market in 2022 will be like the exciting NFL playoff games played during the past two weekends—with a lot of back and forth between the bulls and the bears before the bulls grind out a hard-fought win late in the game.

Please contact me if you have any questions.

Sincerely,

Peter

Important Information

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

All data is provided as of February 2, 2022.

All index data from FactSet.

This Research material was prepared by LPL Financial, LLC. All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

2022 Outlook

ppmullin@gmail.com (Peter Mullin) — Thu, 13 Jan 2022 02:52:13 GMT

Living and Investing in 2022 : The year for tantrums

My outlook for 2022 is clear. I know with 100% certainty that client portfolios will fluctuate.
I also believe that the Federal Reserve is king this year.
The hunt for an “average” return may likely be more rewarding this year than the hunt for the “big wins.”

The Federal Reserve has a playbook from prior cycles of crisis. And this one is no different. Easy money, spending and borrowing must eventually be slowed. We can go back to nearly a decade ago and see what happened for stocks then.

A critical lesson to recall this year is that the average involves the surprise downsides. Think about this: It is possible to see more negative daily returns than positive days; and yet, still have a positive return at the end of the year. Daily movements can be nauseating. But the view of the average feels better over stretches of time.

Here are two quick charts to highlight the point. They are both provided by American Funds team. It shows an investor starting with $10,000 in 2010. The returns do appear quite smooth. The second chart shows you that the monthly returns were not so easily captured. In fact, monthly returns can feel very lumpy.

Compared to the first chart, this monthly return sure shows off the swings of the S&P 500. No wonder the market gets clicks and views in the news cycle. It’s exciting and scary. This chart looks like a heartbeat EKG.

The Fed has stated that interest rate increases and lessened fiscal support are coming for some time now. So I expected to see tantrums in perhaps May and June. But now, we probably shift our expectation for some portfolio tantrums to this first quarter.

On January 5th, Morgan Stanley published a podcast I listened to about how it could be that 2022 was off to such a good start.

Then January 6th happened. The Federal Reserve released Minutes from December that said we should expect interest rate increases and reduced fiscal support earlier in the year. The good news? Inflation probably comes into check, especially as supply chains catch up, to boot.

On January 6th, investors responded like a toddler who is repeatedly told that the TV is going off after their show is over. Then the show ends, and you turn the TV off. What happens next? The toddler tantrum.

Investors that have been expecting this news for some time can feel okay. Now I choose to wait and add funds and buy the dips where we can. That is how we respond to tantrums. It could last a few weeks or a few months. Either way, I think we are well equipped and informed for this period.

Month to month, things may feel uncomfortable and uncertain. But when we take years in stride, things feel better.

Now some investor history to remind us WHY we put up with tantrums:

Need more insights? You can go online and review LPL Financial’s 2022 Outlook . You can also find it on my website under the blog.

So that is what 2022 may hold. Enjoy life in the meantime.

Carry on!

###

yCharts, https://ycharts.com/indicators/sp_500_total_return_annual

American Funds , Capital Ideas

Peter Mullin is an independent financial advisor registered through LPL Financial.

Investing involves risks including the possible loss of capital.

No strategy assures success or protects against loss.

Securities and Advisory services offered through LPL Financial, A Registered Investment Advisor, Member FINRA / SIPC .

A popular read and lesson for clients is headlines. This is the year-end Omicron Variant headline special edition.

ppmullin@gmail.com (Peter Mullin) — Fri, 03 Dec 2021 20:56:26 GMT

The week of Thanksgiving saw more ups and downs for equity markets. First, we were concerned about inflation. Then we were not.

Then we were concerned on Friday, Nov ember 26 about a new COVID variant. Then we were not. Then we were concerned about the variant.

"Dow tumbles 900 points for worst day of year on fears of new Covid variant, S&P 500 drops 2%" (CNBC, 11/26/2021)

Over the weekend we heard more. Then Monday we were not so concerned.

"What to watch today: Wall Street set to jump after Friday’s omicron-driven plunge" (11/29/2021 CNBC)

Through the duration of the week we saw news whip saw ultra-short equity market prices.

"S&P 500 drops on Friday, stocks head for losing week from omicron fears" (12/03/2021)

"Job growth disappoints in November, with a gain of just 210,000, despite high hopes" (CNBC, 12/03/2021)

Never mind, that December is historically the third best month of the year for the S&P 500 over the past 20-year period, according to LPL Research.

Never mind, that as of December 3, 2021, the S&P 500, Dow Jones, and NASDAQ were all positive for the year.

Never mind, that The People are ready to live with the pandemic, the economy is likely in a mid-cycle phase, and the end of the year tends to be positive for portfolios dating back decades.

It is okay to feel entertained by fight or flight headlines. But for the majority of your portfolios, Clients, let’s hold the course, and climb the wall of worry together.

Is this different? No. It is not.

Headlines entice us toward reading and “staying tuned” - and then we wonder if we should act. Remember, confusing, alarming, and even accurate headlines cause us to question if we are okay. How will our lifestyle be affected?

This is why my Second Value is this:
#2. There is no such thing as the perfect portfolio. Instead, I strive to align research and your risk sentiment with suitable strategies to drive results over time. I ask clients to be brave when others are fearful and to be optimistic when others are pessimistic. I think itʼs a good life mantra to live by, too.

So what is next for 2022? Stay tuned!

In 2021, I made one-to-one mention that I was only accepting referrals from current relationships of the firm. In addition, referrals outside your immediate family should now expect to invest a minimum of $250,000 via my practice. I will absolutely continue to accept and help immediate family, regardless of their portfolio balance.

***

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

All performance referenced is historical and is no guarantee of future results. The Standard & Poor's 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
All indices are unmanaged and may not be invested into directly.

No strategy assures success or protects against loss.

Is Giving to Charity Your Thing?

ppmullin@gmail.com (Peter Mullin) — Thu, 11 Nov 2021 19:31:05 GMT

What is a Donor Advised Fund?

It’s essentially charitable giving with a plan. Think of them as another account that you may invest money through. Instead of the money being invested for your benefit, it is invested for the benefit of charity. Donor advised funds can be opened and funded by individual investors fairly easily.

Why?

Donor advised funds can preload tax deductions for your tax planning goals. They also have the benefit of permitting you time to discern what charity may receive donations from your funds.

-Tax changes like changes in income or planning may cause you to look for deductions, such as charity.

-This method can provide a tax deduction in the year that you place funds in the account.

-Money can be invested for future donations.

-You can pick and choose who benefits as you go along.

-What if you came about a sum of money or increase in income in a particular year?

-Let’s say you sold your practice or business. You may wish to table some of the assets for charities you’ve supported; but not all at once. So some money goes toward this Donor Advised Fund and you can continue to make contributions to your community in retirement.

In Action

-You know that RMD (required minimum distribution) that you receive year-to-year from your retirement account(s)? You could reposition some of this money in a Donor Advised Fund

-Say you routinely give $2,500 to a cherished charity. What if you repositioned $10,000 toward a Donor Advised Fund that dog-earned this money for charity?

How to Learn More

-Talk to your financial professional or schedule time with me. I collaborate with tax professionals to coordinate this type of planning.

-Your needs can guide you to one program or another that have varying guidelines and requirements.

-Consider how you will fund this account. Consider funding this account with future charitable gifts that you may make routinely anyway.

***

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.

All investing involves risk, including the possible loss of principal, and there can be no assurance that any investment strategy will be successful. Generally, the more potential for growth offered by an investment, the more risk it carries.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

In pursuit of the average investor

ppmullin@gmail.com (Peter Mullin) — Fri, 05 Nov 2021 13:17:28 GMT

Investing for the long-haul

In Pursuit of The Average Investor: Investing For The Long-haul

[Approximate Read Time: 7-10 minutes]

What do you do on an ideal 70-degree spring day? In Minnesota we know how to cherish an idyllic spring day. They are precious days .

A day like this is sandwiched between 32-degree snow days and a week of rain. It makes you wonder why you live here.

It’s relatable to investing. When your portfolio is “ideal” ( Read : You feel that you’re achieving good-to-great results.) it’s easy to kick back. Then come the mixed-up periods. Volatile periods and the news can cause you to question your results.

When a bad period arrives, please recall how short a week, month, or year looks. Small in comparison to 40 or 50 years. Yes, even retirees may want to think about their long-haul results, especially if they want to leave a legacy for the next generation.

First, when growing your money over the longterm, I believe average results are a goal worthy of pursuing. An average is an average. You add your highs, lows, and in-betweens to help get an average. This focus alone may help you address your fear of loss in questionable periods.

Second, your portfolio should reflect your financial strategy. There is much more to a holistic strategy than your portfolio and monthly statements.

Have you questioned the results of your diversified portfolio lately?

Money Moment with Mullin Wealth Management

Try this: Imagine you have $1000 to invest over five years. I provided three hypothetical Investor Experiences below.

Which Experience gets you the best result? Look closely.

The first (Experience #1 ) shows you receiving a hypothetical 5% in your first year, 10% your second year, 15% for your third, a -25% in your fourth year, and 25% your fifth.

Experience #1: (5, 10, 15, -25, 25); or

Experience #2: (-25, 25, 15, 10, 5) ; or

Experience #3: (15, 5, 10, 25, -25)

Again, which Experience would you think gets you the best result? Would you want to start with a -25% or end with a -25%?

Actually, after applying the three different Experiences to your $1000, the end result after five years is … the same (~$1245.23). In other words, each experience left you with the same average result. (Write me if you find otherwise.) Make sense?

Why one negative year out of five? Look at the S&P 500 – a US Market Index ( NYU - Stern School of Business, Damodaran ). Over the past 50-years (1967-2016) this index has seen ~10 negative years. That’s ~1:5 years that was negative.

Why not try to avoid the really negative year? Ah, yes, the latest crisis or media headline or talking head or neighbor told you doom is looming… I’ll address this later. Okay?

These are hypothetical examples and are not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing.

Importantly, hypothetical suggests you were investing and not living off of your money. This distinction matters big time. I’ll soon write about guidance for spending in retirement. In the meantime, learn more here: A Five-year countdown to retirement . Please seek financial guidance in this area.

Conclusion

Stick to your strategy. Not sure what your strategy is? Your portfolio should be designed with your financial strategy in mind. If you’re not certain that it is, then write or call.

As clients, and as a financial advisor, we try to be agnostic to the nightly news, media sensation, and hyped reports. I try to coach clients to side-step potential portfolio mistakes by adhering to the pursuit of the longterm “average.”

Until then - Carry on!

###

A part of my value proposition for clients:

“…Our focus is on our clients best interest. We encourage health care professionals, farmers, family-owned business owners, and matriarchs and patriarchs who are in a life transition (primarily retiring or choosing to age gracefully) to define their goals and then tailor the design of their wealth to best accommodate their goals.

We want to help you stare your fear of financial loss in the face. We think you can do this with objective information and by utilizing what’s in your best interest so you can pursue longterm opportunities…”

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

All performance referenced is historical and is no guarantee of future results.

The Standard & Poor's 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

All indices are unmanaged and may not be invested into directly.

No strategy assures success or protects against loss.

Will the supply chain and inflation sink the ship in 2022?

ppmullin@gmail.com (Peter Mullin) — Tue, 12 Oct 2021 18:25:50 GMT

How much more are you paying for a gallon of gas at the pump today? How about a 12-pack of soda? Have you gone shopping for electronics lately? Unfortunately, some of these prices may not right themselves for at least a couple of years now.

We are already in the middle of October, and supply chain issues are top-of-mind for investors. Will this bad economic weather continue to be the heavy fog that delays a return to robust growth for the US and the world?

There are a lot of ships waiting to deliver goods. There are a lot of companies dependent on a tiny electronic widget known as the semi-conductor. When will this fog clear up?

I do enjoy the sport of reading market forecasts and soaking in as many economic narratives as I can. But, eventually, we have to decide on a goal or destination for portfolios for both the short-term and, importantly, the long term.

I get to an opinion by reading many forecasts and opinions
A clients risk preferences and dependency on their money is a vital factor
Short term factors and risks can present buying opportunities
More considerable, more pervasive factors can cause us to change course

During uncertain times like these, economists tend to have a supply issue, too. Meaning we have too many opinions pointing in opposite directions! I am quick to recall Warren Buffet' statement, “We think that any company wh o has an economist on staff certainly has one employee too many.”

You can not predict the future. But we sure can look to the past and guess how the latest concerns end. Hint: We think the supply-chain problems take care of themselves over the next couple of years for much of the market.

The head of investment strategy with Blackrock reminded Business Insider recently that inflation is nothing new. 1 In their market insights, Blackrock reminds us that the first Big Mac sold for about $0.50! Now, I guess it costs about six dollars?! Remember when Shaq was promoting the Mac?

Some inflation is normal. Too much supply with low demand is not.

This supply chain you hear a bit like a massive warehouse bursting with goods. Except much of the inventory can't move until some additional widgets arrive. Consumers want the goods! And there are still more goods stored in semi-trailer containers outside in the parking lot waiting to unload. Consumers can afford the goods. Blackrock reminds us, again, that $3 trillion is in our spending pockets. 2

So why don’t the warehouses unload the stuff they have? Some of this is COVID-19 related yet. The world is connected. One outbreak affects another. Unfortunately, this translates to higher costs for you and I, in the meantime.

But folks, if that is our vision, then let’s set sail accordingly for 2022. And let’s equip ourselves with a few reminders from the recent past.

Cycles go in circles

A Drought can persist. And perhaps dro ught is the best analogy for the current pandemic-induced supply-demand climate. The good news is, eventually, a supply-demand cycle needs to change again. And the clear weather is on the horizon.

$3 trillion in consumers pockets is no small number (Blackrock)
Lumber more than doubled in price; but it has since fallen 56% since April, according to Business Insider
Consumers are in line to buy what is available

Demand is just begging to be filled. Who wants to wait ten weeks for a new mattress or bed? Cars are waiting for semi-conductor chips. (Did you miss the portfolio update from earlier this year covering this topic?) The cos t for shoes and cars has increased. All the while people are buying the shies and cars.

In a recent blog entry, LPL Financial’s Chief Market Strategist, Ryan Detrick said, “There’s plenty of pent-up demand, but supply constraints are still in place and it’s going to take time for them to unwind.” 3

Stay the course. But be mindful of inflation.

Portfolio Ideas:

Cash is King: Read the 3rd Quarter Blog Entry by Peter Mullin

Stocks that Grow Dividends: Why not consider incorporating some companies who have historically increased third dividend at a rate higher than inflation over the past 20, 40, or 50 years?

Financials: When interest rates rise, this can boost the bank’s profits because they can collect more interest on their books.

Be patient with supply chain issues. Semi-conductors are a sore spot. Furniture and retail are a sore spot. But supply issues go in cycles.

Big Tech: 60% of businesses surveyed by Ernst & Young2 said they would be incorporating technology into their supply chain. The lesson? Robots and AI do not get sick - too often.

###

Source:

1. Business Insider, “Investors should stick with stocks…”

2. Ernst and Young, “How COVID-19 impacted supply chains.” https://www.ey.com/en_us/supply-chain/how-covid-19-impacted-supply-chains-and-what-comes-next

3. Reference LPL Financial Blog, “ Demand Remains Strong Despite Persistent Supply Chain Problems. ”

Investing involves risks including the possible loss of capital.

Stock investing involves risks, including the loss of principal.

No strategy assures success or protects against loss.

Securities and Advisory services offered through LPL Financial, A Registered Investment Advisor, Member FINRA / SIPC .New Paragraph

Should you be taking less risk now? Age and risk

ppmullin@gmail.com (Peter Mullin) — Sat, 09 Oct 2021 13:14:06 GMT

Should you be taking less risk now? Age and risk

Old school and prudent teaching suggests that an investor may benefit from reducing their risk as they get closer to re tirement.

I have some questions about this. What if your retirement is 40 years long? What if you have a pension or simply may not be that dependent on your portfolio money?

Frankly, there are a lot of considerations that go into how much risk you may want to introduce to your portfolio. I do know that much of the teaching behind risk and investing according to risk tolerance has more to do with putting the odds of you sticking to your investment strategy more in your favor.

Morningstar is a great big company that provides a great deal of analysis, research, and resources to advisors and the public alike. They publish this report that shares how the average mutual fund did in a particular investment category. They share how that average investment did. Then they share how the average investor of that particular investment actually did. * As reported by Morningstar's, Mind the Gap, Global Investor Returns Show the Costs of Bad Timing Around the World (2017).

Guess what? The investor stinks. Why? Because they change when things feel uncertain or uncomfortable.

So what? Should you consider taking on more risk? Should you take less risk?

The answer depends on many things that you have going on. In practice, I also think it has to do with some professional intuition and history.

But it is possible that a 90-year-old and a 25-year-old may have similar amounts of risk in their portfolios. It all has to do with what youʼre investing for and how committed you are to a strategy.

Some key factors that you can answer are these :

Are you willing to accept extreme short-term fluctuations in your portfolio?
What is your portfolio for? College? Living in retirement?
How long do you have to invest?
And perhaps most importantly, how dependent will you be on this money?

Everybody's answers may vary. Every investorʼs circumstances are unique and subjective. So for this reason Iʼm not going to sound the Rule of Thumb trumpet. Any decisions you make ought to be tailored to you.

***

Peter Mullin is an LPL Financial, independent financial advisor. He serves the St. Cloud, MN area and Rogers, MN area and beyond.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing in mutual funds involves risk, including possible loss of principal. Past performance is no guarantee of future results. Indexes cannot be invested into directly.

Investing involves risk including loss of principal.

EARLY THOUGHTS ON 2022

Sat, 09 Oct 2021 12:36:47 GMT

Weekly Market Commentary | October 4, 2022 by LPL Financial Research >>

" With the fourth quarter underway—historically the best quarter for stocks, by the way—2022 is fast approaching. While a lot can still happen between now and the end of 2021, we don’t think it’s too early to start thinking about what stocks might do next year. We see a favorable economic environment for stocks in 2022, consistent with prior mid-cycle expansion years and bolstered by continued earnings growth. The gains may not come easy, however, with a number of risks such as COVID-19-related supply chain disruptions, inflation, and higher interest rates. .."

The Elusive Buy/Sell Strategy of Perfect Timing

ppmullin@gmail.com (Peter Mullin) — Tue, 21 Sep 2021 16:25:11 GMT

Buying low or selling high is a prudent strategy for most investors, an effort to maximize returns. But buying lowest or selling highest is an elusive strategy, one that is difficult to execute and that may lead to lower returns and missed opportunities.

Predicting a market high or low is achieved only through hindsight. Therefore, if you transfer money out of stocks when the market is low, you may not get back in time when prices begin to increase.

Rather than trying to find the “perfect” time to invest, adopt a balanced investment strategy that aligns with your personal risk tolerance and time frame. Of course, past performance does not guarantee future returns, but the stock market has always rebounded from downturns. And these rebounds can come about quickly.

About Rebounds

Without any clear indication of when markets will rebound, investors may miss rebound opportunities when they fail to invest. Below are more examples of downturns and subsequent rebounds:

Disclaimer: Total returns include two components: the return generated by dividends and the return generated by price changes in the index.

The Standard and Poor’s 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal.

Ecommerce and the Future for Investors

ppmullin@gmail.com (Peter Mullin) — Mon, 19 Jul 2021 19:37:15 GMT

Cash is King

ppmullin@gmail.com (Peter Mullin) — Mon, 19 Jul 2021 19:17:47 GMT

Portfolio Bulletin

3rd Quarter | July 2021

Money in the bank for Americans

In April, I wrote about the Little Engine That Could. We are climbing the mountain of worry together.

Americans have historically high levels of cash in the bank.
More tax credits are coming this month, just as jobless claims ticked up a bit.
Lumber fell by 20% in 5 days. And it’s now 67% lower than it’s peak. (Business Insider)
The WSJ shared a chart that showed used car prices are up 40%!

Americans have a massive cash pile in the bank. What will continue to help offset the crazy expense of some of these increases in the market is this cash pile. Time will also bring prices back down.

Are you an optimist? You would know by now. Things should be okay. In fact, if history rhymes, we should be okay for at least three more years. The average expansion lasts at least five years. In more recent history we could have 7-9 years of good times ahead of us, according to LPL Research.

>> MidYear Outlook by LPL Research <<

Where is the cash?

One critical question in my investment process when placing client money is one of cash. Cash is back by popular demand in 2021.

Want to see what happens when cash is just not there for a company? Give me a call and we will walk-through March 2020-March 2021. (Hint: March 2021 finally saw a lot of cash-strapped companies fall down and go boom. There was a lot of exuberance by then, too.)

Some more growth-centric clients were noting in March and April that we were not keeping up with the results of the Dow Jones. What was happening? At that time, Apple – one of the largest companies in the Dow Jones was actually negative YTD. In July, that quickly changed and Apple is now positive YTD (12% + YTD as of July 14.)

Things quickly change. You see, in the hyper short-term, investing can feel like a gambling machine. But as the tide washes out and we chug along into what should be good times, the facts of healthy companies come alive. We see what lurks beneath the waters. I want to see the cash beneath the surface. Just like when we are swimming we prefer a warm, and sandy bottom, rather than slimy weeds.

At the beginning of this year, Apple had about $195 billion in cash. (CNBC). That is Billion, with a “B.” But investors were still chasing cash-strapped companies that were hyped as “Stay At Home” companies. Which is curious as I now write about this. The most used device in my home is still the phone.

Tesla is another curious one. They received $3.3 billion over the past 5-years from government emissions credits, according to CNN. They got $1.6 billion of those credits in 2020. Their income was $721 million last year. Do the math. Hint: They would have shown an income loss without the emissions credits. By the way, Apple had about $57 billion in profit. (Companies named are not individual stock opinions nor recommendations. This is for informational purposes ONLY.)

Portfolio Highlight

E-commerce: How much of retail sales took place online in 2020? Just 15% of sales occurred via e-commerce, according to Statista. And now that the initial boom is likely past, we can look at companies that generate cash, and have cash on-hand.

Watch My E-Commerce Video.

Mid-Year Money To Do’s

Consider refinancing your mortgage
Now might be a great time to sell your used vehicle and make a deal. The Wall Street Journal shared a chart reminding us that used vehicle prices are up as much as 40%! I think a smart move may be selling your used vehicle and getting into – hold your breath – a lease. You could ride out the supply shortages with a lease and come back and buy a vehicle, again, in a few years.

___________________________________________

Investing involves risks including the possible loss of capital.

Stock investing involves risks, including the loss of principal.

No strategy assures success or protects against loss.

Securities and Advisory services offered through LPL Financial, A Registered Investment Advisor, Member FINRA / SIPC .

LPL Financial Research Midyear Outlook 2021

Thu, 15 Jul 2021 14:44:04 GMT

Picking up speed

LPL Financial Research Midyear Outlook 2021: Picking Up Speed

LPL Research Midyear Outlook 2021: Picking Up Speed is designed to help you navigate the risks and opportunities over the rest of 2021 and beyond. While the speed can be exhilarating as economic growth accelerates, it can also be dangerous. Midyear Outlook 2021 looks ahead for opportunities, but also watches for new hazards created by the reopening.

With the U.S. economy reopened, the growth rate may peak in second quarter 2021, but there is still plenty of momentum left to extend above-average growth into 2022. Inflation must be closely watched, but LPL Research believes recent price pressures are transitory, and that the strong economic recovery may continue to drive strong earnings growth and support further gains for stocks in the second half of 2021. The strong economic recovery and potentially higher inflation expectations may help push interest rates higher and lead to flat or potentially negative core bond returns in the second half.

The LPL Research team’s Midyear Outlook 2021 covers the economy, policy, stocks, and bonds. Prepare for a fast-paced second half with the economic insights and market guidance in LPL Research Midyear Outlook 2021: Picking Up Speed.

View the digital version.

http://view.ceros.com/lpl/midyear-outlook-2021

IMPORTANT DISCLOSURES

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. The economic forecasts may not develop as predicted. Please read the full Midyear Outlook 2021: Picking Up Speed publication for additional description and disclosure. This research material has been prepared by LPL Financial LLC.

Tracking # 1-05155985 (Exp. 07/22)

The child tax credit 2021

ppmullin@gmail.com (Peter Mullin) — Thu, 01 Jul 2021 15:12:21 GMT

What Changes Can Families Expect This Year?

I n March 2021, a year after the onset of COVID-19 in America, the $1.9 trillion American Rescue Plan was passed. In addition to stimulus payments, vaccination initiatives, and financial relief for small businesses, this plan made some major temporary changes to the child tax credit.

If you’re a parent or guardian, you could be eligible to receive a one-time enhanced tax credit for your child. Here’s what families need to know.

Watch your bank account for payments received
Payments may be $1,000 per child or up to $1,600 for younger children
Income will affect this child credit

What Is the Child Tax Credit?

The child tax credit is an available tax credit to families with children up to age 16. For the 2020 tax year, it is worth $2,000 per child. [1]

In order to be eligible, your child must:

Be claimed on your tax return
Be under the age of 17
Be related to you
Live with you for at least six months during the year
Have a Social Security number
Be a citizen or U.S. resident alien

Lower-income families who have earned at least $2,500 in income during the 2020 tax year may receive up to $1,400 in refundable credit.1

High-earning families will see a phase-out of the tax credit. For individuals or head-of-household returns with an adjusted gross income (AGI) over $200,000 (or $400,000 for married filing jointly), the child tax credit is reduced. Families will see a $50 reduction for every $1,000 over the AGI threshold amount based on filing status.1

Changes to the Child Tax Credit

Families will see a one-time increase in the tax credits for the 2021 tax year. For this year only, eligible families may receive up to $3,600 for children five years old and under, and up to $3,000 for children ages six to 17.2

While this is the basis of the adjustments made to the Child Tax Credit for 2021, there are several stipulations and eligibility requirements that families need to know.

Eligibility Requirements

The American Rescue Plan has changed several eligibility requirements for families, opening up the child tax credit to more parents who may previously not have qualified.

For this year only, parents with children aged 17 will be eligible for the child tax credit. Previously, children over the age of 16 did not qualify.

Additionally, the $2,500 earnings floor has been temporarily lifted, and the credit has become fully refundable. This means that families who report less than $2,500 in adjusted gross income may still qualify for the tax credit and could be refunded up to the full amount.

Other eligibility requirements are still in place. Just as in previous years, children must:

Be claimed on your tax return
Be related to you
Live with you for at least six months during the year
Have a Social Security number
Be a citizen or U.S. resident alien

Reduced Amounts for High-Income Families

For 2021, not all families will be eligible to receive this additional $1,000 or $1,600 in enhanced child tax credits. Single filers with an AGI of $75,000 or joint filers with an AGI of $150,000 will start to see a reduction in enhanced benefits . [2]

It’s important to note that these reductions only refer to the additional amount, not the base $2,000. The enhanced credit will be reduced by $50 for every $1,000 over the AGI threshold based on filing status. [2]

For the base $2,000, the same phase-out system applies as it does for 2020. Single filers with an AGI above $200,000 and joint filers with an AGI above $400,000 will see a reduction in child tax credits - $50 for every $1,000 over the AGI threshold. [2]

Advanced Payments for 2021 Child Tax Credit

The IRS is required to send out payments to qualifying families in advance. These payments will be half of the amount families are eligible to receive, and they are expected to be sent to families in six installments between July and December 2021. Much like the stimulus checks, families can expect to see these payments appear via direct deposit into their accounts or in the form of a check received through the mail.

The IRS will determine eligibility based on your 2020 tax return, or your 2019 tax return if no 2020 return is on file. If your circumstances have changed and you either become eligible or ineligible for the credit, the IRS will be developing a portal that will allow you to update your information. This will be important for families who may have lost income or had a baby in 2021.

These changes to the child tax credit are temporary, but they can offer eligible families some important financial relief. If you think you may qualify, or you have questions about receiving your payments, your financial professional can help.

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Be aware of this market "magic trick"

ppmullin@gmail.com (Peter Mullin) — Wed, 12 May 2021 19:16:37 GMT

The stellar and outlier one-year ann ualized results are likely to slowly melt away before our eyes month to month as this year carries on.

Be aware of this market "magic trick." The stellar and outlier one-year annualized results are likely to slowly melt away before our eyes month to month as this year carries on.

That sounds concerning at first glance. Right? Remember that the late spring and summer of 2020 saw the market come back at a historic pace. In 2021, we are probably closer to a baseline for a healthy market and economy.

If investors are only looking at investments on a one-year basis, then they may be miffed by this reversion that is occurring. DIY Investors beware: One year now excludes one of the worst quarters in market history. The S&P 500 saw a monthly loss of 12.51% in March 2020. A positive 2nd quarter of 6.35% followed. (That would be over a 24% annualized return.) The third quarter added 2.86%. (1 - yCharts )

Well that is the math. The bad storm was followed by a positive streak. You do not have to be a runner or baseball fan to appreciate that sports often require steady wins over time. A long-distance runner can't expect great personal results by sprinting the first and last mile. They finish long races by pacing themselves.

Have you heard this message lately?

Look, if an investor is going for a prudent average result over time, then focus on the average. The great years + poor year(s) + good years / Time = average portfolio results.

How long is a season for investors? In one case, I would think 3-5 years at a time could see an entire "season" play out. Of course, I am referring to market cycles. And sometimes, a market cycle can be 10-years. The bond bull market, for instance, has been about 30+ years long now.

It is good that bull and bear markets do not typically come and go within months. It gives us time to pace our portfolios.

When it comes to investing in equity or the stock market, it is about placing your money in ideas that we feel have a great foundation, have long-term growth in mind, and have a history of good stewardship.

Let's say this another way:

-We are not looking for a flash in the pan.

-We try to avoid investing in shiny objects.

-We are not always trying for the "quick win."

-Some clients do like to try for short-term wins. But we don't bet the farm.

Reversion

It isn't magic when we see a one-year number starting to fade away from high double digits to what is, in my opinion, a more "normal" range. This is what we call reversion to the mean – or the average.

The average can be significant. With a crisis like we saw in 2020, it is typical to see abnormal outlying double-digit returns after the storm. But those high and attractive-looking results slowly melt away as we push into a bull market. This reversion is perhaps why some perceptive referrals have joined Mullin Wealth lately.

Curbing our enthusiasm is what I've been sharing with you, Clients, for the last six months or so. That is, be aware of exuberance around us. What are our expectations? Our hope here is for growth over the long term. If you're going to watch your results – and judge them as winning or losing daily, then I recommend bringing a motion sickness bag with you. Sorry. :)

Investing does not need to be innovative nor filled with frills. Yes, with measured risk and a rules-based approach, clients can kick back and watch the results come in over the long run.

How? Please read about my take on retirement income and the 4% distribution rule >> https://www.mullinwealthmanagement.com/my-take-the-4-retirement-income-rule

We are only bringing aboard clients who are like-minded and directly referred by our clients and professional network as of 01/01/2021. This is one way Mullin can keep time available to continue to serve existing clients well.

###

1 - yCharts.com , S&P 500 Monthly Return, https://ycharts.com/indicators/sp_500_monthly_return

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.

No strategy assures success or protects against loss.

***

Peter Mullin is a financial advisor with Mullin Wealth Management in the St Cloud, MN area. He also offices out of Maple Grove, MN. Visit www.mullinwealth.com to learn more.

Here Are 6 Tools to Safely Store Your Passwords Online

ppmullin@gmail.com (Peter Mullin) — Wed, 05 May 2021 13:41:20 GMT

How many times have you gotten a reminder to update your password before it expires? Or to make sure your password contains a capital letter, number and symbol? While inconvenient at times, these are some of the crucial steps that come with keeping your personal information safe.

Did you know? Password manager tools can actually prompt you if and when a password of yours may have been compromised on particular websites. Regardless of what password security tool you decide to use, it’s important to keep your passwords as secure as possible. With all the different accounts you log into on a day-to-day basis, storing multiple passwords in these applications can make it much more manageable, helping you to log into multiple accounts securely and with ease.

Choosing a weak or overused password can make it fairly easy for a cybercriminal to steal your information. Instead, it’s important that you have a strong and unique password for every account. To make this possible, there are tools you can use to keep your information safe and secure - saving you the headache of remembering every password yourself.

Big Tech offers their own password saver services

Google, Apple, and Microsoft offer their own encrypted password manager services. Before reviewing "free tools," Mullin recommends considering the benefits of these services offered through your current operating system, or internet browsers. They are free but also convenient, and go along with you while you browse your personal websites.

Tool #1: LastPass

LastPass serves as a free, secure password creation center and storage for all of your accounts. They offer both a free and premium membership. Their premium membership offerings vary depending on use, but they start at $3 per month for individual users.1 This program can both generate and store multiple usernames and passwords in a secure vault. Your vault is protected by a master password and the program includes multi-factor authentication for added security.

The free version also offers secure storage for text notes, syncing of credentials across browsers and access to your secure vault from any internet-connected device via LastPass.com. It will refuse to autocomplete forms on known phishing websites, and you can export your data at any time if you decide to switch to a different password manager.

Tool #2: Dashlane

Dashlane is an easy-to-use tool that features one-click password generation and the ability to store notes for the future.

You can use Dashlane on your desktop, through a browser plugin and on your phone. Similar to LastPass, Dashlane offers a premium version with unlimited sharing and syncing.

Dashlane Premium costs $59.99 per year.2 Both the paid and free versions include features like:

Core password manager
Autofill
Digital wallet

Tool #3: Keeper Security

Keeper Security offers services beyond password protection. These include password management, dark web scanning and private messaging systems. Keeper's main target audience is large companies and organizations, but it also offers plans for students, families and individuals. Keeper Security starts at $34.99 annually for individuals and $45 annually per user for businesses.3

This intuitive program offers both desktop and mobile versions with features including:

Strong security
Browser extension option
Multi-platform access

Tool #4: RoboForm

RoboForm can be used on a desktop or mobile device, and it’s designed to store important notes and login information. Even with the free version, users can store an unlimited amount of logins. This program boasts important features like application logins, secure storage of notes, multi-platform support and the ability to gain emergency access.

RoboForm Everywhere allows you to sync across devices, provides cloud backup and includes the ability to gain emergency access. While it may not have as many features as its competitors, it is still considered a top password manager and the free mobile app is an added bonus for when you’re on the go. RoboForm’s password generator is particularly strong, allowing you to exclude similar characters and specify which special characters you need to meet specific password requirements. Roboform starts at $29.95 per year per user for businesses.4

Tool #5: NordPass Free

NordPass Free is the free version of password manager, NordPass. It is as secure as the premium one, but it does not include several of NordPass’s additional cybersecurity features.

With the free app, you can:

Save unlimited passwords
Keep notes and credit cards
Sync across all devices

You can upgrade to NordPass Premium starting at $2.49 per month. The premium version allows you to save passwords with just one click and log in automatically.5

Tool #6: LogMeOnce

LogMeOnce is a useful app with important features like:

Unlimited passwords and autofill
Use on unlimited devices and sync
Technical support via email

You can choose to upgrade to a Premium subscription, with options starting at $2.50 per month.6 With LogMeOnce, your passwords, files and images are encrypted and only you can access your data.

No technology by a third party is endorsed by Mullin Wealth Management, LLC or Peter Mullin. Use software and particularly password managers at your own risk. All third party companies and entities shared within are separate entities from Mullin Wealth Management.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual.

Optimizing Required Minimum Distributions

ppmullin@gmail.com (Peter Mullin) — Tue, 27 Apr 2021 00:24:15 GMT

Required minimum distributions take on added urgency as you approach (and reach) age 72, with specific rules and tax implications.

Seventy-two is an important ag e milestone for those in or near retirement, as it marks the time when required minimum distributions (RMDs) begin to be withdrawn annually from IRAs and employer-sponsored retirement plans (previously, the threshold was 70 ½). The milestone carries with it tax consequences that are not fixed. Rather, there are a few rules to consider that can help you optimize the impact on your bottom-line.

IRAs

You must begin withdrawing from a traditional IRA (Individual Retirement Account) by April 1 following the year in which you turn 72. The amount is based on your age with one exception: If you’re married and your spouse is more than 10 years younger than you, the RMD amount is based on your joint life expectancy. If your distribution is less than the required minimum, you will be penalized 50% of the difference. NOTE: Roth IRAs do not require an RMD.

Employer-sponsored retirement plans

For employer retirement plans — 40 1(k)s, 403(b)s, and others — the same timeline applies as per IRAs: You must begin withdrawing from the plan by April 1 following the year in which you turn 72. However, if you are still working past 72 and you own 5% or less of a company, you may be able to delay RMDs until you retire.

Additionally, depending on your circumstances, you may receive a lump-sum distribution from 401(k), profit-sharing, and stock purchase plans if completed in a one-year period. If you meet the terms of this lump-sum distribution, you will be taxed at the rate for single taxpayers established in 1986. Additionally, if you’re born before 1937, you quality for a 10-year forward income averaging. For tax purposes, RMDs from qualified retirement accounts are taxed as ordinary income.

Calculating your distribution

The institution where your retirement is kept typically determines the RMD amount using the formula:

Total balance as of December 31 divided by Your life expectancy = Distribution amount.

However, there is some leeway here that may provide you with more beneficial tax consequences:

(1) You can either take your initial RMD in the year when you turn 72 or up until April 1 of the following year.

(2) If you delay your RMD until the following year, you must take two RMDs that year which may increase your tax consequences.

(3) You can take your RMD as a series of withdrawals rather than one lump payment, which may help you with monthly cash flow.

(4) Update your beneficiary(its) as to your distributions. For IRAs, account holders can designate anyone as a beneficiary; For employer-sponsored plans, they must designate their spouse as a beneficiary unless the spouse specifically waives the right.

Seek help

Tax consequences for RMDs can be significant and seeking the support of a financial professional can be prudent, to ensure that the results align with your goals.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

This material was prepared by LPL Financial, LLC

2nd Quarter Portfolio Updates

ppmullin@gmail.com (Peter Mullin) — Tue, 30 Mar 2021 16:28:45 GMT

Never forget that toilet paper was not an economic indicator

A 7-8 minute read; please do read and pass it along. I spent some time writing to catch you up on what may be a part of your portfolio.

In this quarterly portfolio update, Clients, I feel it is important to remember The Little Engine That Could. This quarterly update should be helpful as we are now entering the mountain phase of a bull market.

Indeed, Spring of 2020 saw the economic train run to the valley floors. Some feared that there would be no valley to catch us. And some still ran to buy … toilet paper?

Yet we quickly saw these massive companies – innovators and adaptors – rising out of that valley and bringing our portfolios along for the single swiftest recovery in US Market history.

This next part of the investor journey likely sees higher peaks and higher valleys.

But wealth climbs a mountain of worry. Today the vaccine deployment mission in the US feels like two trains running toward one another. We may see cases or variants increase. Who gets to the station first? Inoculation? And if we become an inoculated nation, then what about the rest of the world?

Now what? The 2021 stock investing environment

You can read a lot about what is on investors' and institutions' minds today. Spoiler alert: Investing involves risk. If you can't stand the heat, get out of the kitchen.

Today there is much chatter about potential risks. I suggest that they are the same as they have been for decades. Inflation? What about rising debt? We are hearing about supply chain issues and rising costs. Folks, this is the mountain of worry I preach about persistently.

In the short term, let's stoke our engine for the ride ahead.

2021: Maybe things are working for the economy and markets

I recently hosted a Live Facebook broadcast with Ryan Detrick, Chief Market Strategist for LPL Financial. He is the big picture guy and is on CNBC, YAHOO Finance, and Bloomberg routinely. Please, follow and like our Facebook page. You will catch a lot of real-time updates here >> www.facebook.com/mullinwealth

Below is a chart I reviewed with Detrick. It provides a picture of what might be ahead. And why March 2021 has proven to be stubborn. After the first year of the '82 and '09 bull markets, we saw a pause. It is very similar to what we see now. But if we fast forward to the summer and fall, we may see a different story.

Some have said that we can't look at past recoveries and past bull markets because this is different. Is it? The playbook that I used for broad portfolio guidance in 2020 called upon a similar strategy based upon what played out in 2008 and 2009 and prior crises. Economic cycles tend to be very similar. And so, the investment classes that fuel portfolios tend to be similar.

Toilet paper was not an economic indicator in 2020. But travel and dining can be indicators.

Have you been out to eat more recently? Have you now booked a flight? Things seem to be getting broadly better. Look at travel. The TSA provides passenger checkpoint numbers daily. Here we look at those numbers compared to past years:

(Source: tsa.gov )

Stay tuned for my upcoming blog posts that do go into more detail about 2021 topics and portfolio positions. Below are several ideas in bullet-point form that I like. Clients may note they have seen these ideas integrated into some portfolios with that in mind.

Is it time to discuss your portfolio positions? Or a change in your life?

We are here for you as life and portfolios change.

Until next time, carry on!

_____________________________

Zoom in on potential portfolio positions in 2021

I. I am liking a couple niche areas in health and technology.

Gene and bio health therapy - These are companies with lots of risks but many potential rewards baked in. They have high levels of profit reinvested into their research.

If you read up on this space, I think you will see the God-given science there. The potential for cancer treatments, rare diseases, and healthcare improvement could transform lives.

Semiconductors - Semiconductors have a considerable backlog. But I tend to like that. We've been planting seeds in this area for when that backlog catches up. And these semiconductors touch a lot of the goods we use. Semiconductors are in cars. Remember how I just talked about the new car supply being down? Everybody was buying toilet paper a year ago. But we were also buying computers, web cameras, and TVs.

II. Possible updates

Renewable energy - I like the idea of renewable energy. I became skeptical of the overall price point. It may be something to monitor and add to in the future. But clients may have seen this position reduced or eliminated.

###

Peter Mullin is an independent financial advisor registered through LPL Financial. He lives in Rogers, MN with his family. He was born and raised in St. Cloud, MN.

Investing involves risks including the possible loss of capital.

The payment of dividends is not guaranteed. Companies may reduce or elimiate the payment of dividends at any given time. Stock investing invloves risks, including the loss of principal.

No strategy assures success or protects against loss.

Securities and Advisory services offered through LPL Financial, A Registered Investment Advisor, Member FINRA / SIPC .

March, In Like a Lion Out Like a Lamb for Investors

ppmullin@gmail.com (Peter Mullin) — Mon, 29 Mar 2021 19:54:32 GMT

6 Common Post-Retirement Mistakes

ppmullin@gmail.com (Peter Mullin) — Mon, 29 Mar 2021 19:09:23 GMT

Retirement should be a time of relaxation and living a worry-free lifestyle. But that is not the reality for many older Americans whose retirement years turn into nancial nightmares. Even if you think that you made all the right moves before your retirement, don't assume that you are in the clear. Avoid turning

your golden years into a struggle to survive by avoiding these six typical mistakes retirees make when it comes to their nances.

To receive your 44-page sample Peter Mullin's book False Financial Finish Lines,Pursuing a Comfortable Life Now and Through Retirement, just go to our website. Minimal info is required to get your download now.

Six Post-Retirement Money Mistakes

1. Maintaining your same lifestyle. You shouldn't be forced to live a life of deprivation after retiring, but most people won't be able to stick to the same level of spending they had when they were still bringing home a paycheck. Think about cutting back on those little expenses like eating out or spending money on entertainment. That is not necessarily a bad thing. More free time gives you the chance to learn to cook and concentrate on long put-off hobbies.

2. Refusing to downsize . This goes hand-in-hand with wanting to maintain the same lifestyle after retirement. Retirement might be the perfect time to sell your larger home and move into something smaller and more manageable. Perhaps even an apartment or condo. Not only will it relieve you of a costly mortgage and home maintenance, but any extra equity in your home will provide a cushion of cash for you.

3. Applying for Social Security too early . Try not to claim your Social Security benets as soon as they become available. If you take your benets as early as possible, you are leaving a lot of potential money on the table. Those who are lucky enough to have substantial retirement savings or another source of income may nd it benecial to hold off until your benets reach their maximum level.

4. Spending a large chunk of money too soon . It is terribly tempting to nally buy that RV or boat you had your eye on for years now that you have the time to use it, but it probably isn't a smart idea. It is much wiser to wait and see how you adjust to retirement for a few months or even longer before spending your nest egg and reducing your ability to earn interest on that money for years to come.

5. Keeping your current investments . Your investment portfolio performed well, so why is your retirement the ideal time to take another look at it? Since you won't be generating new income from work, you will need to rely on your investments to see you through. That means you want to invest in generally more conservative investment products. Sitting down with your money manager can really help you make smart post-retirement investments.

6. Making mistakes when it comes to taxes . Many new retirees fail to take advantage of methods when it comes to paying taxes. Taxes are complex, and it is easy to make the wrong tax move which can end up costing you a lot of money. It is always a good idea to consult with a professional money manager who can help guide you through your options.

Do you want even more advice on the best way to maintain your financial life after retirement? The sooner you talk with your financial advisor, the better.

###

The opinions voiced in this material are for general information only and are not intended to provide specic advice or recommendations for any individual.

No strategy assures success or protects against loss.

The information provided is not intended to be a substitute for specic individualized tax planning or legal advice. We suggest that you consult with a qualied tax or legal advisor.

Investing involves risk including loss of principal.

There is no guarantee that a diversied portfolio will enhance overall returns or outperform a non- diversied portfolio. Diversication does not protect against market risk.

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specic information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Innovative investment themes for innovative investors

ppmullin@gmail.com (Peter Mullin) — Mon, 08 Mar 2021 13:51:45 GMT

Innovative investment themes, for innovative investors.

The Innovative Potato Chip, Part I: Please Pass the Financial (Salt) Sense

If you’re not careful, margarine can lead to poor health outcomes. But that wasn’t always the case. It once was a food science innovation!

I’ve seen the word “innovative” used a lot. Just to make sure this is the case today, I searched for “innovative” under an aggregate news site. There was no lack of stories that use this word in the headline. I’ve made a strong effort to banish it from my vocabulary. It’s a buzz-word. Have you heard of the most “innovative car” technology? Or an “innovative phone”?

Innovation: 1. The introduction of something new, 2: a new idea, method, or device (Definition from merriamwebster.com)

I’ve observed that everything is being promoted as innovative. Soon, we’ll have “innovative potato chips!”

So what’s the buzz about innovation?

Regarding investing, I’m not sure you want to prioritize “innovative” investments.

What if what’s “innovative” for investing today, turns out to become the margarine of investing tomorrow?

Or worse. What if the innovative investing idea/tip you heard about becomes the latest tulip frenzy? (In 17th Century Holland, tulips were once seen as more valuable than land, in some cases. At the peak of this tulip bubble, one tulip bulb could be traded for the equivalent of a blue-collar worker’s annual pay … times 10. (Source -1.)

Today, the example is cited when bubbles appear to form in speculative investments.

Several gatekeepers prevent “innovative” investment ideas from getting shelf space. So why is it that new, trendy investments appear to expand existing shelf space each year?

Here’s an innovative idea for your investment choices: Stick with investments that have demonstrated measurable results over time at a reasonable cost.

WRITE ME OR REQUEST AN APPOINTMENT TO LEARN MORE.

Source:

1 - Tulip Mania. Wikipedia. https://en.wikipedia.org/wiki/Tulip_mania

***

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.

All investing involves risk including loss of principal. No strategy assures success or protects against loss. Past performance is no guarantee of future results.

Peter Mullin is a Registered Representative with LPL Financial.

Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC

Move on from your losses

ppmullin@gmail.com (Peter Mullin) — Thu, 25 Feb 2021 15:48:13 GMT

Your losses can hurt more than your winners can help.

Loss aversion. Move on from your losses.

By Peter Mullin

It can be hard to sell something that is down for investors. Selling an investment at a loss can feel like an investment contradiction. There are “rules of thumb” that echo in our minds. Rules like, “buy low, sell high.”

I’ve also seen new clients come aboard with investments in companies still on their statement that show as little to no value remaining. In many cases the client rode a small investment down to the bottom. They figure they ought to preserve their stake - even if it doesn’t have value. So I wonder what the mentality was as they saw the value eroding.

I always remind folks that friends are quick to boast about their winning ideas. Not so with an occasional poor investment choice.

Sure; you also have the opposite occur. Cases where you wish you had stuck with an investment.

Nuanced moves in a portfolio are made more with the interest of the long-haul. I say “nuanced,” assuming that a poor investment (hopefully) is a small part of a broader, diversified portfolio. Hindsight is 20/20 vision. And at the end of the day losses can hurt portfolios more than gains.

***

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

No strategy assures success or protects against loss.

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.

Investing involves risk including loss of principal.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non- diversified portfolio. Diversification does not protect against market risk.

2020 - 2021 Tax Season Guide and 1099 Info

ppmullin@gmail.com (Peter Mullin) — Mon, 15 Feb 2021 16:29:06 GMT

T his information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

PETER MULLIN RECOGNIZED AS ONE OF LPL FINANCIAL’S TOP FINANCIAL ADVISORS

ppmullin@gmail.com (Peter Mullin) — Wed, 27 Jan 2021 20:31:13 GMT

FOR IMMEDIATE RELEASE

CONTACT:

PETER MULLIN, 320-259-7030

Peter@MullinWealth.com

PETER MULLIN RECOGNIZED AS ONE OF LPL FINANCIAL’S TOP FINANCIAL ADVISORS

MAPLE GROVE, MN — JANUARY 27, 2021 – PETER MULLIN, an independent LPL Financial advisor at MULLIN WEALTH MANAGEMENT in SAINT CLOUD AND MAPLE GROVE, today announced his inclusion in LPL’s Freedom’s Club. With more than 17,000 LPL-affiliated advisors nationwide, LPL awards this distinction to select advisors based on their business success*.

“On behalf of LPL, I congratulate PETER MULLIN on reaching this milestone in their professional career,” said Angela Xavier, LPL executive vice president, Independent Advisor Services. “Business owners, American investors and industries at large faced extraordinary challenges throughout 2020. In the advisor-mediated financial advice market, investors showed how much value they place on a trusting relationship with a financial advisor. We applaud Peter Mullin for his commitment to clients and resiliency as a business owner, and we are inspired by his dedication to making a meaningful impact in the lives of his clients. It is an honor to support Peter Mullin and wish his entire team continued success as they continue to add value for clients and in their business in the years ahead.”

PETER MULLIN is affiliated with LPL Financial, the nation’s largest independent broker-dealer** and a leader in the retail financial advice market. LPL provides the resources, tools and technology that support advisors in their work to enrich their clients’ financial lives.

###

About LPL Financial

LPL Financial is a leader in the retail financial advice market and the nation’s largest independent broker/dealer**. We serve independent financial advisors and financial institutions, providing them with the technology, research, clearing and compliance services, and practice management programs they need to create and grow thriving practices. LPL enables them to provide objective guidance to millions of American families seeking wealth management, retirement planning, financial planning and asset management solutions. LPL.com

*Achievement is based on top 30% of annual production among LPL Advisors only.

**Based on total revenues, Financial Planning magazine June 1996 – 2020

Securities offered through LPL Financial. Member FINRA/SIPC.

Portfolio Bulletin, is 2021 in for an investment reality check or rally?

ppmullin@gmail.com (Peter Mullin) — Mon, 28 Dec 2020 19:23:16 GMT

P ortfolio Bulletin, Volume 1, #2, winter 2020

Is 2021 in for an investment reality check or rally?

Portfolio Bulletin, Volume 1, #2, winter 2020

December 24, 2020

*Portfolio Bulletin Volume: 1, #1: https://www.mullinwealthmanagement.com/portfolio-bulletin-volume-1-1

_____________________

Yes, I do think we will be due for several reality checks in 2021. It is par for the course, Clients.

On average dating, back decades, the US Markets like to pull back about 5-10% at least once per year. (Now, think if an investor had the misfortune of investing just before a pullback…)

2020 has been a profound year. There are plenty of lessons to review how our minds �� respond to our world. The world can become uncertain, and uncertainty provokes us to act. Case in point? The toilet paper sho rtage version 2.0 this winter.

I like to say that there is a lot of gray brain matter between the thoughts going through our brain and a big choice. It is why we pause before clicking submit on our phones.

When it comes to investing, let’s get the gray matter and unhelpful stuff out of the way for the year ahead.

The next act: The Recovery and the Bull Market

-We will continue to push our way into a bull market. What is a bull market? The idea is that a bull market charges ahead. It is a healthy market and economy. 2020 saw the 8-month long bull market throwing any concerns out of the way.

-2021 probably sees the formal declaration of the 2020 micro recession end. A recession means that the economy lost money over 6-months.

-Pundits will swing and miss. Just like they did for 11-years during the most recent bull market.

-Reality checks and knee-jerk reactions will cause investor jitters but quickly go away.

The 2020 Investor Predictions Party

2021 Predictions are here, and I just sent my crystal ball in for a repair! There are 100’s of expert opinions. Clients, please be wary of what you click and read. The worst prediction – and thereby least helpful – from a third party calls for 2021 to go ONLY one of three directions. It will go up, down, or sideways. (Extra credit if you comment back to me and tell me why this “prediction” is the dumbest ever.)

Here is my best attempt at reading the current situation. I think somewhere in the first parts of 2021 we are due for a pause before moving forward.

If next year is a healthy diet, then I think you want quality investment ideas filling most of your plate. There is that word, “quality.” What does that mean?

Quality suggests that a company has a reasonably clear horizon, with a service or product in demand, with reasonable risks, and healthy balance sheets. I would prefer to have one nice gift from Santa than receive 20 pounds of coal. That is unless coal suddenly became a massively expensive commodity. Then I will accept the coal!

Airlines and leisure had a nice run from March through about September/October. This focused investment category is a great example of unreasonable risk and short-ter m speculation. In my opinion, they had short days in the sun. They were the 2020 bacon. Some clients had a taste of really focused investments. With pun intended, the recovery runway for leisure and travel is much longer today.

In conclusion

Never, never, never lose sight of what you are buying as an investor. You are buying shares. The value of shares goes up and down in the short term. What investors want to do is try and buy shares of companies that deliver rewards over time.

Here is a link to #Share Power: https://www.mullinwealthmanagement.com/share-power-one-big-reason-investors-should-embrace-bear-markets-and-pullbacks

***

All indexes are unmanaged and cannot be invested into directly. Index returns do not reflect fees, sales charges, or expenses.

All performance referenced is historical and is no guarantee of future results. No strategy assures success or protects against loss.

All investing entails risk including loss of principal.

No strategy assures success or protects against loss.

Because of its narrow focus, a sector investing strategy tends to be more volatile than an investment strategy that is diversified across many sectors and companies. Sector investing also is subject to the additional risks that are associated with each particular industry. Sector investing can be adversely affected by political, regulatory, market, or economic developments.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

The Social Security Administration Has Announced Cost of Living Adjustments & Tax Changes For 2021. Here's What You Need to Know

ppmullin@gmail.com (Peter Mullin) — Mon, 07 Dec 2020 14:22:43 GMT

On Tuesday, October 13, 2020, the Social Security Administration released important facts and figures for 2021 - including cost-of-living adjustments (COLA) for retirees and tax changes for the currently employed.

The Good? Benefits Are Increasing

Those receiving Social Security benefits will see a 1.3 percent COLA increase in 2021. This change will impact around 70 million Americans - including 8 million SSI beneficiaries.1

For the average retiree receiving Social Security benefits in January 2021, this will translate to a roughly $20 increase in monthly benefits - $1,543 up from $1,523. For couples both receiving benefits, the average will increase to $2,596 from $2,563.1

Of note, this year’s COLA increase is lower than the previous two years - although, of course, a cost-of-living adjustment is never guaranteed in the first place. In 2009, 2010 and 2016, COLA bottomed out at zero percent. And in 2016, the COLA was a mere 0.3 percent - substantially lower than the 2.8 percent increase we saw in 2018.2

The Bad? Taxes Are Increasing Too (For Some)

For those still working, the amount of earnings subject to Social Security tax has increased 3.7 percent from $137,700 in 2020 to a maximum of $142,800 in 2021.1 Employees and their employers will each continue to pay 6.2 percent of applicable earnings toward the 7.65 percent combined Social Security and Medicare rate.1 The 3.7 percent increase in applicable income is only in reference to the Social Security portion of the combined tax rate. Self-employed individuals will still be responsible for paying the full 15.3 percent of the Social Security and Medicare tax rate. ( 1)

For reference, the maximum Social Security tax in 2021 for a high-earning employee would be $8,853.60 - or $17,707.20 total including both the employee and employer’s contribution. This is compared to 2020’s maximum of $8,537.40, or $17,074.80 total.

The Need To Know? Earning Limits For Retirees

For those under the Social Security Administration’s determined full retirement age who are receiving a paycheck while receiving SS benefits should be aware of 2021’s earning limit changes.

Currently, full retirement age is considered to be 66, if you were born between 1943 and 1954. Below is a chart provided by the SSA in regards to full retirement age:3

Year of Birth. (Full Retirement Age)

1943-1954 ( 66 )

1955 (66 & 2 months )

1956 ( 66 & 4 months )

1957 (66 & 6 months )

1958 (66 & 8 months )

1959 (66 & 10 months )

1960 & later ( 67 )

Those receiving benefits who have not yet reached full retirement age will be docked $1 in benefits for every $2 earned above $18,960 (or $1,580 per month) in 2021. This is an increase of $720 from 2020's $18,240 per year limit.

It’s important to note that this limit increases somewhat substantially for those who will be reaching full retirement age that year. For 2020, that income limit is $48,600 per year, or $4,050 per month. In 2021, retirees will see that limit increase to $50,520 per year, or $4,210 per month. Applicable income earned above this amount will be withheld at a rate of $1 dollar for every $3 earned above the limit.

Beginning in the month you reach full retirement age, you will no longer be subject to earning limits.

Keeping track of changes in tax rates and future income is an important part of having a well-established retirement plan. If you’re wondering how these changes will affect your own financial standings, reach out to your financial advisor for more information.

Visit www.MullinWealth.com to learn more and to review states we are registered in.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.No strategy assures success or protects against loss.

Securities and Advisory services offered through LPL Financial, A Registered Investment Advisor, Member FINRA / SIPC .

The LPL Financial registered representative associated with this site may only discuss and/or transact securities business with residents of the following states: AK, AR, AZ, CA, CO, FL, IA, ID, IL, MN, MO, NM, TX, WA, WI

The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. We make no representation as to the completeness or accuracy of information provided at these web sites.

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

Biden is the President Elect: Tax changes are coming

ppmullin@gmail.com (Peter Mullin) — Sat, 05 Dec 2020 14:30:05 GMT

A couple years back I hosted a few in-person presentations at the local library touting the Trump tax code changes. Now I will be touting Biden tax code changes. It can pay to be politically agnostic as the pendulum swings back-and-forth with history and its presidential administrations.

While D.C. does not hold all the tax cards – state and local taxes, education levies, for example – an administration can change how clients and Yours Truly navigates the current tax environment.

Based on paint sales at Home Depot and Lowes, 2020 has demonstrated that watching paint dry CAN be more thrilling than preparing taxes!

Still, here are our friendly end-of-year tax reminders:

•We encourage collaboration with your tax accountant. Did you know that clients can drop off their info with their tax professional and say, "Talk to Team Mullin to make sure you got everything from them?" Call or e-mail us. We are happy to help!

•No RMD requirement for 2020. What is an RMD? A required minimum distribution is D-Day for old IRA and 401(k) money. The government requires that you take out a minimum amount starting at a certain age from certain retirement accounts.

•The SECURE Act changed the RMD starting age to 72. It used to be the calendar year you turned 70.5. Finally. Who celebrates their 70.5 birthday anyway?

•You may note tax harvesting if it applies to your advisory non-qualified (taxable) investment account(s). You may also anticipate increased capital gains. 2020 saw volatility and with this volatility can come increased investment activity.

•You may not be getting full credit for those tax-deductible charity gifts. But we can help to try and change that. Read about a charitable IRA gift strategy we are helping clients with.

•Even though RMD requirements were waived due to the pandemic, a charitable IRA gift can still work.

•IRA contributions can be made through your tax filing date.

•Tax form deadlines? Generally, a "safe" date to meet with your tax professional is AFTER March 15, 2021. It is possible your tax forms will be amended. It is possible that ONE or more investments you own cause a delay in a tax form.

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Visit www.MullinWealth.com to learn more and to review states we are registered in.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal. No strategy assures success or protects against loss.

Securities and Advisory services offered through LPL Financial, A Registered Investment Advisor, Member FINRA / SIPC .

[Updated] Running out of water (money) in retirement

ppmullin@gmail.com (Peter Mullin) — Thu, 12 Nov 2020 17:48:57 GMT

Perhaps you have senior parents who have amassed good relative wealth? Yet you can’t coach them to spend much on themselves.

The habits that help you develop wealth likely follow you into retirement. It’s this concept that I share with my clients.

Then of course there’s the virtue of moderation. Funny how some of the same habits like persistent saving & prudent spending suddenly become a problem when you retire, huh?

Retirement Foreshadowing

The story of our camping trip to Voyageurs National Park is likely foreshadowing for me. It helps me realize some traits about ourselves.

So maybe it’s worth another look at positioning your assets within your retirement portfolio so that we can strive to secure lifelong income from it?

Dear Clients, I think its also important to bring this thought into social security claims. When is it the right time to claim social security?

We don’t need to reinvent the wheel. We need to acknowledge potential challenges and select reasonably reliable solutions.

Living in retirement brings many changes. It’s natural to wonder what it will be like. After a long road I wish for you to feel well informed and financially prepared.

Camping and water analogies aside, retirement is a life to look forward to. Don’t strive to reinvent the wheel. Strive for a comfortable retirement by becoming an informed investor.

***

Benartzi, Previtero, and Thaler. “Annuitization Puzzles.” Journal of Economic Perspectives. Fall 2011.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Asset Allocation Explained

ppmullin@gmail.com (Peter Mullin) — Thu, 12 Nov 2020 00:33:12 GMT

Asset Allocation Explained: When your portfolio visits under-inflated or overinflated pressure, then adjust your pressure

Do you have topics you’d like me to blog about? Contact me.

October 2018 was not unlike other tumultuous times for investors portfolio results. The markets (example: Dow Jones) have seen lower points in October for 2018.

This is the precise time to consider buying the “sore” spots. Especially for long-term-minded money. There are a few things we can control during bad portfolio weather.

We can be honest about our risk tolerance. Our reaction toward risk and portfolio fluctuations can help us align our expectations with what may happen when volatility spikes in equity portions of portfolios.

We can rebalance. I was talking to clients in October 2018 about rebalancing.

I think one of the most important topics we address for you is Asset Allocation. Did you ever notice the AAMS® next to my name? My AAMS® (Accredited Asset Management Specialist designation, College of Financial Planning) credential emphasizes thoughtful placement of client assets. It goes beyond the idea of diversification.

A properly allocated portfolio is like a car with four tires. There are times when our tire pressure goes low. And it’s also possible to drive on overinflated tires. Let’s bring this back to investment portfolios. You have cash (or cash equivalents), bonds, US equity, and international equity. For simplicity, let’s say we want equal portions of our portfolio filled up with each of these broad areas. This is what we call asset allocation. This is what that may look like:

You invest $1,000,000.

$250,000 is in cash/cash-equivalents $250,000 is in bonds
$250,000 is in US equity
$250,000 is in International equity

[These are hypothetical examples and are not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing.]

Now we “drive” the portfolio for a while. Eventually, we expect to drive through bad portfolio weather (or traffic). Let’s say that US Stocks and international stocks visit “bad portfolio weather.”

This is what your portfolio may look like:

$250,000 is in cash/cash equivalents $260,000 is in bonds
$170,000 is in US equity
$200,000 is in International equity

*Your portfolio is valued at $880,000

Remember, you want to keep your tires inflated at a “normal” level.

After the bad portfolio weather, it looks like your four investment categories are not equal like they initially were at the outset. If one or more category deflates or becomes overinflated, then we should adjust the pressure to bring them back to “normal.”

Why? Buy Low, Sell High

What we could end up doing is taking from the portions of the portfolio that may not have changed in value as much. And we end up buying portions of your portfolio that are lower. The pressure adjusts so your four “wheels” share equal levels, again. We do this because it’s what we decided to do. It may feel counterintuitive at first glance.

But something also feels off when you drive down the road with an under-inflated tire. Right? The hope is, you may get improved portfolio results ( i.e. “gas mileage”) as a result.

So here’s how that works:

We review your portfolio's total. Then determine which wheel is overinflated and/or under-inflated. Then we balance the pressure according to your portfolio's strategy.

At a value of $880,000, each investment category (i.e., “wheel” ) would have $220,000 assigned to it.

Cash = Deflate by $32,500
Bonds =Deflate by $42,500
US Equity = Inflate by $47,500 (US equity is bought) International Equity = Inflate by $20,000

Now each of your four categories is aligned, again, with your initial allocation strategy.

Invest cash if you have cash available. Another consideration that you can control to some degree is whether or not you have the ability to add some money to your portfolio. If you do have cash, then what we may do is “fill up” your under-inflated categories from your inflow of new cash. Then we may still rebalance, as needed.

Now what? Enjoy the ride, Dear Clients. And carry on!

Do you have topics you’d like me to blog about? Contact me.

###

These are hypothetical examples and are not representative of any specific situation. Your results will vary.

The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio.

Diversification and asset allocation do not protect against market risk.

All performance referenced is historical and is no guarantee of future results.

The Dow Jones Industrial Average is comprised of 30 stocks that are major factors in their industries and widely held by individuals and institutional investors.

All indices are unmanaged and may not be invested into directly. No strategy assures success or protects against loss.

Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.

Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.

###

How to prioritize debt

ppmullin@gmail.com (Peter Mullin) — Thu, 15 Oct 2020 14:34:26 GMT

What de bt should you payoff first? Should you pay off loans?

How to Prioritize Your Debt: What debt should you payoff first? Should you pay off loans?

No matter who or what has inspired you to focus on your debt(s), the important thing is that you are aware that it affects you and your family. You want to improve your circumstances. So congratulations on seeking to improve your life!
First, there isn’t a one-size fits all to debt payoff strategies — sorry. There are numerous strategies out there. That’s where some confusion and indecision arises.
To quote Shakespeare’s Hamlet, "To thine own self be true.” In other words, follow a strategy that you and can commit to.

Here’s a process you can try following:

Judge your tolerance for the debt you are assessing: How much stress does this debt cause you? How much does it affect your ability to spend and save money elsewhere? How “normal” is this debt given your circumstances? What would happen if you paid this debt off?
Evaluate your debts/loans: How long have you had this debt? What are the minimum payments? What is/are the interest rates? How long will it take to pay off? Don’t rationalize a your debts. Look at the debt neutrally. It’s numbers.
Evaluate your savings/checking balance: If I had a $2000 surprise bill, could I pay for it without putting that expense on a credit card?
Examine your spending/budget: Do you typically have money left at the end of the month? Does your savings go up or down over a six month period? Can your budget afford increasing debt payments beyond the minimum payments?
Choose your strategy:
You can begin with your highest interest rate debt first. You generally pay minimums on your lower interest accounts and extra funds you have in a given month get directed toward the highest interest rate debt. Once this debt is paid (Awesome!), then move on to the next highest interest rate debt, and repeat the process.

%. %. %.

You can begin by paying off your smallest balance first. You generally pay the minimum on your other accounts and extra funds you have in a given month get directed toward the smallest balance. Once this debt is paid (Alright!), then continue on to the next highest balance.

$$$

$$$$$

Combo: You may decide that you only have two or three outstanding debts/loans that bother you. Maybe if you paid off these debts they would help free up your monthly money. So you may commit to a combination of paying off a small(er) balance first. Then you target your highest interest loan.

$ >>> %

When it comes to strategy you may want to discuss your personal circumstances with your financial advisor or tax advisor. If you have specific questions, please call or write me.

There are a lot of opinions out there regarding what others think you should do in regards to your debt. Remember: “To thine own self be true.” Do what works for you.

Look forward to future articles regarding paying off debt and/or investing.

Remember to be open to guidance. Debt and finances are subjective. Approach it according to your circumstances.

***

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Presidential Elections & The Stock Market: Is There a Correlation?

Thu, 08 Oct 2020 15:50:00 GMT

Sex, lies and accusations of corruption - no election year is complete without them. And while the 2020 election has proven to be one of the most contentious in recent history, contention is nothing new in the world of politics.
From the political match-up of Jefferson v. Adams to this year’s Biden v. Trump, mud has always been slung, accusations have always been made and many Americans have found themselves uncertain of a future under new (or unchanged) leadership.Keep your head cool around the water cooler through the next months
How have markets done during past election years?
Is someone close to you worrying?

While Adams and Jefferson didn’t shy away from printed ads and public debates, there’s something vastly different about today’s political climate - 24/7 access to constituents. Social media, email blasts, phone calls, television ads, radio announcements - today’s candidates and their associated parties have the ability to inundate Americans with their messaging.

Pair this with the fact that 2020 has been anything but ordinary (which, of course, no one needs reminded of), and you have an election year truly like no other.

A Reminder About Emotionally Driven Investing

Whether you’ve been guilty of it yourself or you’ve seen others take part, social media channels like Twitter and Facebook make it all too easy to share damaging, misguided or opinionated messaging. This is true in any instance, but it can be especially effective when these posts are about political candidates.

The problem is, being inundated day in and day out with information about our country’s political future (especially information that’s alarming or scary) can take its toll on anyone watching or listening. You’ve already heard the predictions - “If Biden wins, the stock market is sure to tank.” Or, “If Trump wins, the stock market is sure to tank.” People everywhere (whether they’re journalists or your Aunt Sally) are making an argument for it either way.

As an investor, it’s important to make a conscious effort to drown out the noise, think about your personal financial goals, and keep the long view in mind. I have a few ideas preparing your portfolio for any potential changes in political leadership.

H istorical Stock Market Performance During Election Years

Of course, past performance is no guarantee or indicator of future performance. But as an investor, it may interest you to see how the stock market has performed historically during and after presidential elections years. Below we’ve charted out the S&P 500 returns since the 2000 election: 1

Additionally, below shows the S&P 500’s percentage of return during a president’s full term dating back to 1981. This information was gathered from YCharts and presented by Forbes: 2

Historically speaking, there have been a number of outside factors that determine the stock market’s performance - more so than simply which party is in power. These other factors could include whether or not we’re in a bull or bear market, the business cycle, civil unrest (at home and overseas), trade wars, tax policy changes and more.

Upcoming change and stress is the perfect time to help someone out – introduce them to us today. Share this info with a friend.

If the upcoming election has you worried about the future of your portfolio, take some time now to speak to me. E-mail me or better yet, schedule time to visit . We can talk about my beliefs and strategy. I may be able to provide important insights into whether or not your asset allocation should be readjusted and review any contingency plans you may have already put in place.

Peter Mullin, Accredited Asset Management Specialist®

_________

https://ycharts.com/indicators/sp_500_total_return_annual

2. https://www.forbes.com/sites/sergeiklebnikov/2020/07/23/historical-stock-market-returns-under-every-us-president/#2046fd9efaa=

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.

All performance referenced is historical and is no guarantee of future results. No strategy assures success or protects against loss.

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.

All indices are unmanaged and may not be invested into directly.

This content is developed from sources believed to be providing accurate information.

Securities and Advisory services offered through LPL Financial, A Registered Investment Advisor, Member FINRA / SIPC .

Literally the biggest factor for investors success... surprise: it is actually saving enough!

ppmullin@gmail.com (Peter Mullin) — Tue, 29 Sep 2020 18:50:11 GMT

Literally the biggest factor for investors success... Surprise: It is actually saving enough!

The biggest factor to investor success has everything to do with one thing and one thing only: Your Savings Rate!

What is your savings rate? Now, I am not talking about your interest rate at the bank or your internal rate of return in your 401(k).

I am talking about what you are actually saving? What are you saving now to have for later?

You know what your goal should be? 15% of your take home pay.

Yup! And I read many reports that say that the national savings rates are – no surprise – much lower. It is not uncommon for a new employee or a current employee to do just enough to get their “free money.” (What we employers call the “match or deferred comp” expense on payroll.)

This comes back to one of my most important quotes, “I have never had a client say to me, ‘I wish we had saved less.’”

Who likely has more access to money; more options in life; more potential? The person who saved 5% of their paycheck for their 40-year career or the person who saved 15% of their paycheck their whole career?

And guess who can seriously entertain the idea of retiring earlier?
And guess who does not stress as often about inopportune expenses?

Join me here often to stay inspired and pay attention to simple financial guidance that can translate to big life results!

Until next time, carry on!

___________________

Investing involves risk including loss of principal.
No strategy assures success or protects against loss.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Portfolio Bulletin: Volume 1, #1

ppmullin@gmail.com (Peter Mullin) — Mon, 31 Aug 2020 18:10:54 GMT

Investing Themes in the Pandemic and Political Crosswinds

Volume 1, #1, September 2020

James Taylor has a song for this month: “September Grass.”

And you know I can see summertime slipping on away. But the grass is as soft as a feather in a featherbed.

Our grass turns into Cadillac mode this time of year. I do love how thick it gets. But the lawn does require a bit more care this time of year, too.

And so investors are also noting that I have recently trimmed investments in two sub-sectors that have driven great results since at least the end of March 2020. The overall goal has been to raise a bit more cash.

I can be patient and wait for a reality check or reentry for that small percent of the portfolio – or I may immediately reintroduce it to some of the same or similar high conviction ideas.

Sentiment and Research Corner :

This is not a current and actionable recommendation for public use. Past results are not indicative of future results.

1. Quality and Clean Renewable Energy:

A good read would be this entry: https://www.mullinwealthmanagement.com/investment-ideas-for-today-rechargeable-and-sustainable-energy

Hey: Look at the results. They aren’t “too bad,” as we say in the Midwest!

NASDAQ Clean Edge® Green Energy Index: (January 1 – July 31) +41.01%

2. Momentum in the Healthcare arena:

Healthcare in general has been defensive - true to form. But when you add the “momentum” factor, you do raise the risk factor significantly.

Look at the results relative to the pandemic crisis timeframe. They aren’t “too bad!”

Dorsey Wright Healthcare Technical Leaders Index: (March 1 – July 31, 2020): about +49.3%

3. Rotation and Temporary Defense

“I believe we are pushing into a bull market.”

What does a potential recovery mean for portfolios? It means that we will be okay in the next few years as politics and the pandemic continue to hog the mealtime conversations.

It also might mean a test of wits when we get a regular reality check in portfolios. It seems there were folks pessimistic enough who waited for 11-years for the 2020 bear market. Every knee-jerk reality check along the way can cause pessimists to say, “See! I told you so!”
It means that it will be tough for the average investor to outsmart the “average results” of the indexes. So an aggressive investor may be inclined to place bets on higher octane ideas. And there is the real risk of getting burned.
In the short-run, expect some temporary pullbacks or setbacks. The US equity markets have yet to really see a deserved reality check. I am hopeful and glad for the results we have to date, considering the road we have been down. So this is all some cause for moderate defensive posturing.

Remember, we can’t control the weather. Carry this lesson over to current events. Continue to ignore the noise regarding the pandemic and politics. We are. With the hope of having our portfolios with us past 2020. To get past 2020 and future crises require a disciplined mindset. This is why I say to ignore the knee-jerk reactions that can come from the noise.

Presidents and laws change.

My focus is on your money. My focus is seeking to offer what I think are the best solutions that can fit your needs.

Back to lawn care

Are you supposed to mow your lawn ultra-short before the ground thaws? Or should you leave it moderately trimmed?

And what happens if you leave the leaves to rot over winter? I think lawn care providers say differently. You want to do your best to clean up the yard before the snow flies!

There is no such thing as the perfect portfolio. Some investors are happy to keep their money out of high risk, high octane ideas mentioned in this bulletin, by the way. And that is okay. I will continue to align research and our sentiment to drive results over time. It is all about striving to add to your net results!

I do hope you are happy working with me. I love hearing from you. Be quick to send photos and phone in any questions you have.

If you have had the chance to talk to friends, please tell them about the special relationship we have, and the results to boot!

Until next time, carry on!

P.S. Are you in need of a pick-me up? Watch this video I created during the ongoing crisis . What happens when you pass good habits and the power of choice along? What is your wealth story you share with others?

Informed Optimism : Why am I Optimistic?

***

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.

No strategy assures success or protects against loss.

How to get a better financial plan; Getting you from 90% TO 100% there.

ppmullin@gmail.com (Peter Mullin) — Thu, 27 Aug 2020 20:11:24 GMT

"The ‘X factor’ in any families financial plan"

Why take 10,000 words to say what can be said in 500 words?

My clients will scratch their heads and wonder what an 80-page financial plan might look like. What does one do with this plan? How much does one pay? Well, seriously, these plans exist. And I have seen folks pay thousands for them. Most of the time they make for nice kindling.

More often, then could have been condensed and better presented as a plan always in a rough draft or beta mode. Plans are always in a draft because life is always shifting.

Big plans are heavy and intimidating. Hey there is a lot of stuff and information that Yours Truly uses behind the scenes to navigate major choices. But that is what I am here for.

Tell me the time; don’t take apart the watch

I am attracted to simple outputs and bullet-point checklists for clients. Why? Because the engagement and implementation factor increases when things are simple. I am all for aiming to get you a financial win.

It’s like they say, “Don’t tell me how the watch works…just tell me the _____.”

Advice might be best served like this:

•Sign up for your 401(k). Start with saving a minimum of 11% of your paycheck.

•Increase your emergency reserve to $10,000. Then call me.

•Review your home loan options; a refinance is likely in order!

There are a lot of reasons to consider the above recommendations. And clients enjoy conversations about the reasons why.

But my goal is to get clients in the best place possible as life changes – acknowledging that there is no such thing as perfect.

The financial advisor helps you get it done – just do it; implement the plan!

There is a lot to be said for the ship that has a sail. With a little wind the ship can move!

So many choices in the financial world feel daunting, easy to put off, boring, or just not worth the effort. Life is so busy. There are many reasons to put off things that provide little immediate reward.

As I get a little older, it feels like an exercise plan. Or a weekly meal plan. These ideas work so well. But it is easy to stop doing them!

You know who’s sole focus is encouraging you to keep on? Who aims to keep the financial wind in your sails?

This guy ! I believe accountability is the ‘X factor’ in any families financial plan.

I have a good idea of what it is you should be doing next. And I will keep prompting you to work toward better together!

___________________

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.

No strategy assures success or protects against loss.

Mid-Year Scorecard for the “2020 Predictions that definitively, maybe play out...”

ppmullin@gmail.com (Peter Mullin) — Tue, 07 Jul 2020 18:00:38 GMT

Mid-Year Scorecard for the “2020 Predictions that definitively, maybe play out...”

A good joke: Why did God make economists? ...To make meteorologists look good.

You can scroll down to look back to pre-COVID-19 and pre-2020 below to review what Yours Truly was thinking. Happily, I think many of these thoughts have aged quite well.

BUT for those that want an update on these highly anticipated predictions that could definitely, maybe still play out in 2020...

Football

Tom Brady retires after winning another Super Bowl.

Ding-ding! Half-of-a-half right. They lost. The Kansas City Chiefs won. (The Kansas City of the state of Missouri.) AND Tom Brady moved to the Tampa Bay Buccaneers. He sold his customized Cadillac SUV and is trying to bring his friends down to Tony Dungy’s old team.

Housing

Home prices stay relatively stable. Mortgage rates for buyers and refinancing alike go up modestly. New home builders continue to drive new supply to the market, rather than sellers.

Half-right, too soon to tell. But mortgage rates probably will end lower for the year. The pandemic sent short-term anxiety into the housing market. So far, home prices have been surprisingly resilient.

Sector Favorite: Your Health

The healthcare sector may get beat up on, again, throughout the 2020 election cycle. But by November 2020, the horizon will look healthy for healthcare. 

The US healthcare sector is being called upon to work overtime during this pandemic. As a sub- index, it is marginally negative. But it ranks #3 of 11, so far at the end of 6/26/2020. (Technology is #1.) And if you favored the healthcare space in an aggressive manner, then as an investor, you may have been pleasantly rewarded.

Municipal Bonds

The world of municipal bonds - a source for tax efficient income - saw healthy results in 2019. Expect more of the same in this low-supply, higher demand category for 2020.

Municipal bond investors were tested and have prevailed so far. This was generally a safe- haven space through the beginnings of the pandemic...until it wasn’t in mid-March. Fortunately, even the more aggressive, non-rated, mid-credit quality municipal market has demonstrated a bounce to more normal. The higher quality space is positive on the year measured by their indexes. The high-yield is now just marginally negative. (Bloomberg Barclays Muni Bond; Bloomberg Barclays HY Muni Bond)

Trade and Tail Winds

Emerging markets will be a category you wish you had favored, if trade talks with the US continue to progress. Even despite trade negotiations, emerging markets are due for a stronger cycle - beyond 2020.

Wrong. No one priced in a pandemic for emerging markets. I have done an about- face on this. I like the US for the foreseeable future.

Change is constant

Questions about what lies ahead for you as life unfolds? You are here. Feel free to reply and inquire about your matters.

100% true, though most would agree :) Changes and interruptions to life have been constant during this pandemic. Have you accepted that this will be long lasting? Are you mourning the loss of a vacation? A change in family wedding plans? The loss of life?

_________________________________

Bonus Highlights : Looking back as the pandemic and economy has evolved...

Let’s circle back to pre-2020. And I will tell you what I told you...

OCTOBER 2019 : Why value investing in 2020? (October 17, 2019)

“Buying a diversified stock fund is like getting a ticket to a movie theater where you are required to watch the same movie, and eat the same concessions as everyone else. You don’t get to customize anything about it. Buying individual stocks can feel like your private cinema show. You can control everything down to the volume and temperature of the room.”

DECEMBER 2019 : Big names make big market projections a tradition; (but they are usually wrong)

The S&P 500 finished 2019 at about 3240. JPMorgan was most right at about 3100. • Morgan Stanley: 2,750 (Wrong)

• Merrill Lynch: 2,900 (Wrong)

• Goldman Sachs: 3,000 (Wrong)

• JP Morgan: 3100 (Most not wrong; short by about $450 on a 10,000 investment.)

POPULAR READ : Should we do as the billionaire does?

I lay out my case for the markets resiliency and potential recovery. (March 25, 2020)

“Is this moment scary? Yes. But it is not “uncertain.” It is not “unknown.” It is not “unprecedented.” The same ingredients are present today as they have been for all crisis in American History. And I see the horizon. It is full of promise. This feels like the inflection point of October 16, 2008.”

Let’s see what happens next...

_________________

All indexes are unmanaged and cannot be invested into directly. Index returns do not reflect fees, sales charges, or expenses.

All performance referenced is historical and is no guarantee of future results. No strategy assures success or protects against loss.

All investing entails risk including loss of principal.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Take control of your financial life

ppmullin@gmail.com (Peter Mullin) — Thu, 25 Jun 2020 15:32:15 GMT

Holistic financial planning can be improved with accurate information and accessible investment and financial advice. Our planning software is a core piece of our independent mindset. This software and application empowers clients to take control of their financial life.

Behind the scenes sneak peek: Client Planning Software Enhancement

ppmullin@gmail.com (Peter Mullin) — Thu, 25 Jun 2020 15:28:43 GMT

Mullin Wealth Management is using RightCapital for financial planning software.

Mullin Wealth Management is using RightCapital for financial planning software .

RightCapital is a single and secure online space to bring a household’s financial picture to life, and it is accessible on your go-to device.

We are shifting from using Wealth Vision powered by eMoney. Clients do not need to do anything at this time. We will be migrating active Wealth Vision clients to RightCapital over the coming months.

Why now? I am genuinely excited to make this upgrade. Importantly, this fits my planning philosophy, areas of expertise, and fits my niche for retirees and business owners. Clients can interact and source their big financial picture in one app. You can also interact with Yours Truly from the app or web.

Clients gain a mobile app to deliver info when and where they want to access their info. We gain robust tax savvy and adjustable planning tools. We also consolidate several planning staples into one source, like social security planning or tax-savvy retirement distributions.

I believe a holistic planning tool should aid in rewarding conversations and directing clear and confident choices.

When invited to come aboard:

You will receive an invite via e-mail to connect to your Right Capital site .
You can download the “Right Capital” app from the App Store or Google Play. Check it out now; it has nice reviews!
Enhanced account aggregation in one site. You will connect accounts that you have log-in access for. This will include LPL Financial accounts. Refer to the Client Account Access page.
Mullin Wealth Management will be updating and adding your family, social security, and additional pertinent planning information we have discussed together, if we have it on hand. Clients are encouraged to review info and make updates.
Interact and modify your plan as life changes.

Mullin Wealth Management can send you notifications to review particular ideas or goals.
You can interact with your budget, spending plans, dream purchases, student loan repayment options, etc.

Facebook Live Financial Planning App Walk-Throughs :

I will offer walkthroughs of our Financial Planning process on our Facebook Page ( Click to Follow ).

I will also use Facebook Live Videos to show-and-share highlights and savvy features.

___________________________

RightCapital and LPL Financial and Mullin Wealth Management are not affiliated entities.

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor. 

I nvesting involves risk including loss of principal. 

Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC.

What if you are reading the wrong headlines to guide your money? A skeptics best friend in one chart.

ppmullin@gmail.com (Peter Mullin) — Wed, 20 May 2020 15:33:28 GMT

More clients are skeptical. So far skepticism has not discriminated between the 30- something white-coat professional or the retiree. If I am applying this client conversation gauge to opinions, then investors may want to pay attention.

Are there more reasons to be pessimistic or optimistic, right now?

Try to part the divide and walk in the middle with your serious money. Real wealth can be forged in times like these. But only when we are willing to look the other way when the force of skepticism greets us. And the skepticism volume is loud!

My playbook and assumptions :

*There is still no such thing as the perfect portfolio. Instead, I strive to align research and your risk sentiment with suitable strategies to drive results over time. I ask clients to be brave when others are fearful and to be optimistic when others are pessimistic. I think it’s a good life mantra to live by, too.

*We will have more pullbacks and corrections. Every year going back decades we have at least one -10% correction in the US Markets . Pullbacks are normal and expected in that sense.

*This is a crisis. The direction is still being determined. But it has all the ingredients of a crisis. And we have been through crisis before.

A Skeptics Best Friend in One Chart

What if we are already on our way to another recovery built upon an abundant amount of skepticism? Check out the below.

And remember... US Markets do trend ahead of economic numbers. And guess what has happened in prior recoveries? Bull markets have climbed a wall of worry.

This recovery is difficult. It is hard. Unemployment is surrounding us. Bankruptcies are forthcoming. And even experts paint uncertain terms.

I feel we are likely somewhere in the bottom for US Markets. The bottom can only be made known with history. And the recovery can be a long process. (Graphic: Emotionally Invested: The Market Cycle, Franklin Templeton)

Should we be taking money out of risk on upticks?

For that I would say that it generally depends on your risk preference and dependency on the money. If you are a ultra-low risk taker, then there are plenty of banks who may wish to offer you a fraction of a percent or a bonus 1-year rate. If you are an informed investor, then there is generally a need for a measured amount of risk.

Are you in the company of someone who has been forced to change their life because of this crisis?

Please share these messages I send to you with them. Let them know how you got started with Mullin Wealth Management. Or send them an e-mail and copy me to introduce us. They will reach out when the time is right for them.

__________________________________________

Investing involves risk including loss of principal.

No strategy assures success or protects against loss.

All indices are unmanaged and may not be invested into directly. No strategy assures success or protects against loss.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Times your friends and family should really call a financial advisor

ppmullin@gmail.com (Peter Mullin) — Wed, 06 May 2020 14:42:01 GMT

Times your friends & family should really call a financial advisor

You’re buying or selling a home

A lot of money and time goes into a home purchase. A financial consultant can review your unique circumstances and give you general and more direct financial guidance. What would happen if you bought a home that was on the more costly side for your family? What if you lost your job? What’s a comfortable budget for your home expenses?

Buying a car

Really? Yes! Cars have an impact on your budget, too, right?

Prioritizing Debt: Student Loans

What would life be like without that pesky monthly loan payment? What if you paid it off as quickly as possible? Would you have more money in retirement?

See my blog entry here .

Career Transitions

Voluntary or not, career changes can come with changes in benefits and differences in income. Are you anticipating an increase in income? What would saving it for retirement do for future you? Are you enrolling in a new 401(k)?

Marriage

Many things change with marriage. I read in all sorts of opinion articles about how important it is to be on the same page financially before and throughout your marriage. An objective point-of-view can give offer goals and common practices to discuss.

Family changes - newborns!

Has your family changed in the past year? Have you welcomed a little one into your life? What can you do today for their future? Are your children college bound?

Death

The loss of a loved can be a very painful & stressful life experience. It’s not just the funeral & the immediate loss. It’s the things that continue to come up after the loss of a loved one.

Inheritance

Before you receive your inheritance, learn about your options.

***

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Are Markets Cold, Hot, or Just Right?

ppmullin@gmail.com (Peter Mullin) — Fri, 24 Apr 2020 15:18:48 GMT

April 2020 COVID-19 Version

COVID-19 is Still the Number to Track

An important number that you nor anyone can control are the Covid-19 numbers. We do not even know how many have already had it because of an inability to test.

Numbers will get worse. Look at how US Markets are responding to potential healthcare developments to combat the pandemic.

Hint: A total count in regards to the virus cannot get materially “better.” The total deaths and case counts will only go up.

MN to the Rescue

Mayo Clinic and University of MN are promising to deliver meaningful tests to the state. Close to enough to test every soul in Minnesota in less than 130 days.

Stimulus is a Solvent; and Stimulus is Ongoing

Politicians are in Washington voting with masks on and social distancing measures. $2 trillion initially a couple weeks ago. Today another $400+ billion for small businesses in desperate need.

How we are adapting

I wonder if take-out will be an in demand service post-crisis? My family has intentionally enjoyed local restaurant takeout. We prefer the takeout experience with little one’s!

Chalk Art and Journaling

I have a portfolio of chalk art and headline clippings from the past few months. This will be recorded in history books as a profound period. Is that stating the obvious?

Like the image of chalk art posted here post-April showers, I wonder when the Covid-19 headlines will begin to fade.

Take Care of You First

We are living in a crisis. One way to combat the inherent stress is by taking the time to breathe. Take things for a walk. Now is a better time than ever to walk 5,000 or 10,000 steps a day! Turn the news off. Is there much news that is New?

Are Markets Cold, Hot, or Just Right?

I feel the temperature of the US Markets are a bit warm. Investors may note that advisory accounts have been active. Clients may take note of more tactical selections in healthcare and technology. I fully expect the 2nd quarter through June 2020 to be volatile. But conditions are currently primed to potentially deliver a record-setting 3rd and 4th quarter through year-end. And remember, this is where US Markets are already looking toward.

___________________________

Investing involves risk including loss of principal.

No strategy assures success or protects against loss.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Guiding Data - Facebook Live 04/03/2020 Mullin Wealth Management

Tue, 07 Apr 2020 17:52:32 GMT

Guiding Data : Facebook Live 04/03/2020

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Any economic forecasts set forth may not develop as predicted and are subject to change.

Investing involves risk including loss of principal.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non- diversified portfolio. Diversification does not protect against market risk.

No strategy assures success or protects against loss.

All indices are unmanaged and may not be invested into directly.

All data is provided as of April 1, 2020.

Should we do as the billionaire does?

Wed, 25 Mar 2020 13:49:34 GMT

Photo credit by Matthias Mullin.

Here we are. Mid-March 2020.

Follow me.

Is this moment scary? Yes. But it is not “uncertain.” It is not “unknown.” It is not “unprecedented.” The same ingredients are present today as they have been for all crisis in American History. And I see the horizon. It is full of promise.

This feels like the inflection point of October 16, 2008. Warren Buffett published his opinion letter, “Buy American. I am.” This was after a crazy Dow Jones mess in September ’08 and Lehman Brothers declared bankruptcy. Look below and see how timely Mr. Buffett’s letter was.

Nearing the end of March 2020, it feels like October 2008, all over, again.

The Billionaire is at it, again

According to WSJ and Berkshire’s own filings, Buffett’s Berkshire company holds several major airline stock positions in his portfolio. They were buying as through a subsidiary are gently as March 11th, according to Barron’s.

Up until now Berkshire has hoarded billions in cash. About $125 billion, according to filings. And folks were skeptical for a few years now.

“You find out who is swimming naked when the tide goes out.” -Warren Buffet

Once again, the 89-year-old Oracle’s patience may pay in spades.

My question to clients is: Will you do as the Billionaire does? Clients have been phoning it in and buying into this market. No dollar amount is too small. Your money is welcome here!

History repeats itself?

The below screenshots compare 2008-09 time periods to today. The information is taken from Morningstar. Warning: If you are a pessimist, please scroll directly to Exhibit C and D!

Exhibit A :Dow Jones Over the past ~47 days (Feb 3, 2020 – Mar 18, 2020) |

Return: -29.93

Exhibit B : Dow Jones from Sept 25, 2008 – Nov 20, 2008 |

Return: -31.48

Exhibit C : 6 months after Nov 20, 2008;

Return of Dow Jones ~ +11.52%

Exhibit D : Are we going to give back “everything”? Dow Jones since the end of 2008 – Mar 18, 2020

Return: +126.73%

How are your CD rates looking?

_____________________________

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non- diversified portfolio. Diversification does not protect against market risk.

All performance referenced is historical and is no guarantee of future results. No strategy assures success or protects against loss.

All indices are unmanaged and may not be invested into directly.New ParagraphNew ParagraphNew Paragraph

Here we are - A bear market does not hibernate

Sat, 14 Mar 2020 01:04:27 GMT

March 13, 2020 | 0554 hours

Clients:

I just saw this magnetic image this morning when I looked up out my living room window. The spring winds are bellowing. And the moon is out. The clouds are swiftly passing over the moon. The light from the moon is reflecting off the clouds as though the clouds are a fast-moving water spring. Remarkable.

This image reminds me of this moment's mantra: This too shall pass.

I am acutely aware of current headlines and events. My reflexes are on overdrive for you, Dear Clients.

I raised my practice beginning from the Great Recession. I have seen 7 or more epidemics or pandemics – 2009 Flu Pandemic, H1N1, SARS, Mers, Zika, etc. – and probably over 100 catastrophes threaten us since 2008. The Mayan Calendar assumed we would all be dead in 2012.

Is this time different? No. It is not.

Lean on me. This too shall pass.

Here we are: A Bear Market Does Not Hibernate

Three weeks ago we were talking about a modest correction. A correction is a -10% loss in equity markets. Just two and a half weeks later we are in a bear market. A bear market is a -20% loss in equity markets. And actually, between March 11 and Thursday, March 12, we landed at a -30% loss in equity markets.

And here we are. This is exactly how a bear market evolves. This was fast.

History is our guide. Once we enter the bear market level the bear market will look for elasticity to crawl back. Bear markets do not hibernate. We will be monitoring as we have been. And taking advantage of the mantra buy low… Typically, bear markets take ~400 days to go away. But this time may be different. Because this bear charged at us in less than three weeks. Usually, a bear market plods along. In other words? Spring could come early.

I ask clients - investors - to be bold in the face of uncertainty. To be optimistic when others are pessimistic. This is our moment. This is where wealth can be forged.

Clients, this is our moment. This is that once in a decade opportunity.

Trained reflexes: The game plan

My trained reflexes are on overdrive. For retirees - I understand you are dependent on your nest-egg. There are rules we follow for you.

A. Savers and Investors :

Be tactical. I have been making incremental moves for clients in advisory accounts over the past two weeks. Clients have added money. And you would be very brave if you invested it all at once – no matter how great or how seemingly small the amount.
Now is your time. Add cash! Add to your investments and buy shares at these highly devalued prices.
Rewards can be realized in times of uncertainty. It is when things feel uncomfortable that you should be buying up investments.

B. Retirees :

Many of my retirees are dependent on their nest-egg. And the higher your dependency on this money the lower risk you ought to take.

This is why I follow Nobel Prize-winning ideas to manage and distribute your money.
This is a reflex of mine, but it may not be obvious to clients. Your checks right now are likely coming from a CASH-LIKE portion of your diversified portfolio. Or certainly the softer portions. (I thought it would be helpful to point this out. I prefer to not sell equity when they are low.)
Diversified portfolios should be built for times like these. Currently, Diversification is working.

C. Defense :

Please stop looking at the scoreboard on a daily basis. Tom Hanks plays the attorney for a Russian spy in the Cold War-era Spielberg film Bridge of Spies. After the spy is arrested by the FBI and faces execution, Hanks’ character says, “You don’t look the least bit worried.” The Russian spy replies, “Would it help?”

You and I cannot control a great deal of which way the wind will blow at the moment. I encourage you to be optimistic while others are pessimistic. Be bold.

"In investing, what is comfortable is rarely profitable." - Robert Arnott

I am speaking to you no matter where I am on any given day. I am accessible to you.

I have internet in my office locations and my home office. I have two cell phones. And I have an awesome partnership with LPL Financial. Client Service backs me up at 800-558-7567 .

I visit clients wherever by appointment. If you need a chat, let’s do that. There are no irrelevant feelings or silly questions.

My best to all of you. Thanks for allowing me to be your guide. If you feel someone close to you is worrying, please share this message with them.

We all can benefit from a boost right now. It helps the immune system, too. ☺️

After all this is passed, I am probably going to take a vacation.

’Til then, Carry on!

Peter Mullin

_______________________________

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

All performance referenced is historical and is no guarantee of future results.

No strategy assures success or protects against loss.

Reflecting on Feb 2020 and Coronavirus: How are you doing?

ppmullin@gmail.com (Peter Mullin) — Fri, 06 Mar 2020 21:08:24 GMT

Read time: 6-8 minutes

The last week of February was as an historically stomach grabbing week for the US Markets - and investors.

So let me first say thank you and congratulate you for adding to your experience as an investor.

It was the quickest -10% slide for the S&P 500 in history. It was like ripping a band-aid off…or shooting down a steep rollercoaster. The week and coronavirus fears did not give us much time to step back and think.

The good news? Over the past 40-years, the S&P 500 has never finished at it’s intra-year low-point level. More good news? Corrections are natural and annual occurrences. I did not say they are comfortable!(LPL Research)

There are three major points that I share in this message to you, my Clients. Here are the three points in-case you do not have the time to read them all; feel free to jump ahead to what interests you:

How was I feeling during all of this?
What action can you still take? And what action was being taken?
Direction and calculated optimism moving forward.

1. H ow was I feeling as your financial guide?

I said in a Live video event, “I am not about to switch to decaf.”

I deployed a lot of communication tools to reach out to you. I was more concerned about taming client concerns because the last week of February was so unusual.

*I used Facebook and Email as rapid touch-points for you. I realize not all clients utilize Facebook.

*I was calling you. I believe in being accessible and proactive.

*I held my first-ever Facebook Live stream event; over 600 people watched all 7-minutes, so far…Go over now and watch it. >> share my Facebook site and follow it. I think you will be glad you did when we jump into the next inevitable bout of uncertainty.

2. What action can you still take?

*Look the other way. I have heard clients share that they will be shredding their February statements before they even look at them. While I can’t tell you to discard your statements without reviewing them … I can tell you the wisdom in this is learning to look at your portfolio value as something that should fluctuate. February 2020 is already history.

*This too shall pass.

*My hope is that you feel that the news outside our control has felt far worse than the bite.

*Revisit what your target result range for a portfolio like yours is, or ought to be.

*You can add to your investments.

Watch this : Why Average Results Can be 'Great' : Money Minutes with Mullin Wealth Management

2b. Trust the strategy and process:

* 1,896 : That is the approximate number of transactions that took place for clients between Monday, Feb. 24 – Mar. 3, 2020. Most of this occurred without clients having to do anything. This does not include actions that may have been taken within mutual funds.

(This includes buys, deposits and withdrawals, distributions, income, reinvestments, sells, and systematic trades.)

* For comparison: 351 similar transactions occurred at the end of January (Jan 20 – Jan 28, 2020).

*Retirement clients still received their funds to live off of.

* Diversification was at work. Bonds, cash, cash-like investments, and broad diversification can have its day during bad portfolio weather.

3. Direction and Calculated Optimism

Why did Coronavirus have an impact on investments? And if Coronavirus is going to develop more in the US, then how can you tell me it will get better?

Politics, facts, and current events can affect investors. That is what happened last week. But there is hardened history to lean on and reason to proceed onward with calculated optimism.

Remember, when you buy mutual funds or stocks you are buying shares . You are not buying a fixed price per share. A shares price-tag (or market value) fluctuates by the minute and/or day, week, and month. The hope is that the money provides an income stream and/or growth for your money over time.

At least once per year, on average, shares of what you own, can start to jump up-and-down in value. It is like the turbulence caused by air pockets when you are on a plane. 99.9% of the time it is normal … albeit uncomfortable. But it’s that pesky .01% that gets folks thinking… what if this is different? This is going to get worse…

Fear had hold of the markets last week. There are volatility gauges that pros watch - and you can, too. Clients, I have not seen the level of spikes in volatility and fear like we just saw, since 2008/09. (As measured by the VIX.) The good news? It is settling down.

News sources still seem to be providing hourly updates of the death toll of this virus. Not only is this morbid, but I feel irresponsible. Imagine if we saw a daily thermometer count for another serious illness. We would certainly wash our hands like our hard-working mothers taught us to do.

The news has notably adopted a #FactsNotFear mantra since last week. Last week, I must have heard, “coronavirus,” every minute from news sources. That is not an exaggeration... Now I am noticing hourly updates.

Perhaps by next week we will hear stories about spring and baseball and positive events.

Sidebar question : Seriously. What happens to all these stocks if “nobody” is buying them? Good question. Actually, there is a human in-charge of holding shares of stocks that are not selling. They are called a Designated Market Maker (DMM). They also help to facilitate a controlled market for shares. ( Investopedi a .) Can I get you thinking about this more? Think about this: What typically happens to a house the longer it goes unsold? The same can happen to a stock when more are selling than buying. The DMM, for example, is busy making a market for it by facilitating a price reduction.

The level of fear and volume of stories last week led me to do some soft hyper-local research over the weekend.

My experience told me to checkout the local Target shelves. See the pictures below. (A boast: I was observing the shelves over the weekend before the news made ‘empty market shelves’ a story.)

Pictured : A Tweet from Yours Truly. Ryan Detrick is LPL’s Senior Market Strategist. You can see him on CNBC, WSJ, Bloomberg, etc. Lots of thanks to his entire team for leaning in last week!

I agree that the numbers of those affected by COVID-19 will increase. I also think survivor t-shirts will be a thing … actually , I just searched for them. And you can already BUY the t-shirts. A bit premature, don’t you think?

Folks, this predictably irrational behavior is what has me responding in a methodical and passionate manner on yours and my behalf.

These mantras and a historical line of reasoning have me leaning into this bad news:

"I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful." - Warren Buffett

"The four most dangerous words in investing are: 'this time it's different.'" - Sir John Templeton

"In investing, what is comfortable is rarely profitable." - Robert Arnott

I sent out an e-mail last week harkening Sir John’s mantra. Read it here >>

If you desire to read more…

A Reminder of my Implicit Operating Assumption:

I believe many of my clients benefit from an advisory relationship. With this relationship one implicit assumption is this: We both care about your portfolio's net results.

Call me crazy, but I think it matters what your portfolio keeps. I pay attention to your portfolio, investments, and tax implications during bad portfolio weather.

Your investment objectives, income needs, timeframe, and overall investment costs can bear a lot of weight on your net portfolio results overtime. This is why having a healthy average portfolio target result range is important.

***

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

All performance referenced is historical and is no guarantee of future results.

All indices are unmanaged and may not be invested into directly.

No strategy assures success or protects against loss.

Coronavirus Spreads to Global Markets

ppmullin@gmail.com (Peter Mullin) — Fri, 28 Feb 2020 13:36:12 GMT

The coronavirus is spreading and global markets are selling off, but the U.S. consumer remains strong, and we're still in a bull market.

Coronavirus Risk and Global Growth | LPL Market Signals Podcast

Tue, 25 Feb 2020 19:50:37 GMT

The Three C's : Complacency, Coronavirus, and Correction in the Market

Fri, 07 Feb 2020 16:14:22 GMT

LPL Financial Chief Investment Strategist John Lynch talks about complacency, coronavirus, and correction in the market.

Investment ideas for today | Rechargeable and Sustainable Energy

Fri, 31 Jan 2020 17:00:45 GMT

Relatable Research | Deep Dive into Every Day Investment Ideas

Relatable Research:

Deep Dive into Every Day Investment Ideas

By Peter Mullin

Investment ideas for today: Rechargeable and Sustainable Energy

~42.7% . That is the positive result that the Clean Edge Green Energy index posted for 2019. This sub-index is formulated by NASDAQ. And this space actually scores a lower risk-factor compared to the Russell 2000.

2020: Could this Be a Good Entry Point to Invest in Green Energy?

If this subcategory known as Green Energy had an edge in 2019, then what about 2020? Maybe we are finally beginning to vote with our dollars to improve and diversify our energy sources?

The US Department of Energy promoted an ambitious year in 2019.

*They have proposed a recycling model for Lithium-Ion batteries, so that up to 90% of the materials can be harvested and reused.

*Long-time DOE researchers were awarded the Chemistry Nobel Prize for the lithium-ion battery. More on that technology below.

*Water projects are underway to provide clean water from our oceans in our future.

*There has been enough growth and investment in Solar Power to power 5.4 million homes.

(Source: US Department of Energy, energy.gov)

More on rechargeable lithium-ion batteries:

*Rechargeable mega batteries may be used to store solar power.

*Some automakers can run a sedan on a single charge up to 370-miles. And it can run for 300-500k miles, according to makers like GM and Tesla. But they are expensive. (Fortune, 2019)

*The consolidation of competition is occurring.

*The limited supply chain from mine to consumer may make battery minerals more and more desirable.

*Have you heard of mega battery factories? Car manufacturers in Europe - and predominantly China - have built out production space. Benchmark Mineral Intelligence states that this massive build-out has already helped battery production expand by 429%.

Why This is an Every Day Investment Idea

Sustainable energy is huge. I believe it is not going away - count on it. The crowd of humans behind baby boomers are demanding it. And pain points such as climate change are making the hunger for the salty brine that the lithium-ion battery is born of boil over.

How Do You Invest In Green Energy that harnesses the earths minerals, such as Lithium Batteries, Renewable Energy, and Solar Power?

Look at everyday life and publicly traded companies that are competing on a large scale. Look at the supply chain from miners, extractors, processors, and all the way to the end company. Look at innovative companies that are harnessing the power of rechargeable batteries and naturally derived energy from our sun, waterways, and winds.

Clients, please be cautious of flash-in-the-pan ideas. I think investing your money with the long-haul in mind is prudent. And I also believe in investing where we believe there is value to be found.

Schedule time with me to learn more how you can invest in a Sustainable and Green Powered Future

***

Peter Mullin is an independent financial advisor registered through LPL Financial. He lives in Rogers, MN with his family. He was born and raised in St. Cloud, MN.

There is no assurance that sustainable investing companies will meet these objectives. Investing involves risks including the possible loss of capital.

Avoid scams and phishing: Help your aging friends and family learn the signs and responses to scammers

Wed, 15 Jan 2020 22:10:39 GMT

Use your gut and adopt a skeptical mindset when handling your money.

Avoid scams and phishing: Help your aging friends and family learn the signs and responses to scammers

Use your gut and adopt a skeptical mindset when handling your money.

“They thought they were dealing with a real person. A real person who must have bought a lot on Amazon... Because they requested Amazon gift cards, rather than PayPal or another secure payment method ... The client never did get what she felt she paid for...and the conman got away with the money...”

“An elderly man was cleaning in his kitchen when a desperate neighbor sent him an e-mail. The neighbor needed money - and fast! The neighbor could not be reached. But my client could send money to them via Western Union...

This kind man went to a Western Union location and began the process of sending the funds to the phony conman. Fortunately, his real neighbor was able to intervene - just in the knick of time. The real neighbor's e-mail had been hacked.”

The above stories are accounts of scams and crooked behavior by faceless crooks.

I am writing this from the perspective of a financial counselor to families who have become close to me over the years. Unfortunately, clients of mine have been impacted by scams. Each time I hear a story of a scam the red flags waving right from the beginning.

We hear about fraud, scams and cheats on the news reel every now and then.

Because we are a proud lot we do not think it will happen to us. It can. And it does. And because we are proud humans you may not hear about it from a friend who was targeted - it can be embarrassing. But the victim of a scam did not do anything wrong. They were conned.

Please help yourself and others by learning the signs of scams and fraud. And above else, listen to your gut.

Glaring signs that you have a scam or fraud on your hands:

The scammers target : If you are a senior citizen, then you are in the sights of scammers. This is repulsive and true.

1. The Mind Hijack :

The script of a scammer’s call or e-mail begins by hijacking your brain’s fight or flight response to incite fear. Phishing is a dirtier version. Phishing may use remarkably personal facts to gain your trust.

Crooks hijack our brains like this:

-Asking for your help; this is powerful -Inciting fear

-Making it easy to disclose info

2. Urgency

The script moves from hijacking your brain’s fear mechanism straight into urgency.

“...Did you make this purchase? We can stop it. We need you to first verify your address...date of birth... debit account number ...”

“You owe $2500 to the IRS. You can pay this now and avoid penalties, jail time, etc.”

“Your grandson needs $3,000 for bail.”

“Help! This is your neighbors. This is embarrassing but our house flooded and we need some money.”

This all sounds quite routine in writing. Yes? When you are in the moment the scammer is going to continue to use your senses like a puppet.

The important thing in this moment is to STOP. Do not share anything. Do not reply. Do not engage. Hang up. Do not click on that e-mail.

3. Untraceable Funds: Converting currency

A scam ends with untraceable payment. DO NOT SEND MONEY OR CONVERT PAYMENT TO ANY FORM .

“You can help by sending...”

“Send your money from Western Union...”

“Credit card will not work. Can you get to a grocery store or drug store? Great, go buy $2000 of gift cards to Amazon, eBay, etc.”

“Send money to this PO Box...”

“Click this link to make a quick payment.”

Scam Avoidance 201: Learn to neutralize and disengage a scam.

Now here are the action steps to help you avoid financial loss from a scam. Scams and frauds are always evolving. But hopefully, by equipping yourself and others with these basics you can help avoid financial loss due to scams and phishing.

FIRST: Neutralize your senses.

1. Do not engage . Hang up the phone. Do not reply to emails or requests that are soliciting

your money. Yes, I have seen entertaining videos of folks engaging scammers. It can be

funny. But these scammers have a great deal of experience. Do not engage scammers.

2. Take a long pause .

3. What does your gut say?

SECOND: USE LOGIC

1. Do you know this person or institution? Either way, hang up/do not reply. They won’t

mind. Look up the number on the back of your credit card, or from a trustworthy source

and call THEM back.

2. Does the person claim to be your friend/family If it is your neighbor or friend requesting

money, then why don’t you call them and ask them what is going on?

3. Are they ‘unable’ to call you? Do not engage. DO as financial institution does, and do not

send money without phone confirmation .

LAST: FOLLOW THE MONEY

1. How will you track your money? Can you get it back with ease?

2. Think about how you can get your money back if need be. Gift cards are a form of payment

with scams because, unfortunately, they are near impossible to trace. Once you convert your cash to gift cards, say goodbye to the money for good. There are measures you can take when you make payments through PayPal, your bank, and via credit card. They are also easier to follow-up on.

***

Peter Mullin is a financial consultant and local financial author. His passion comes from a family of educators. He believes in education retirees, investors, and business owners so they can pursue their version of a comfortable retirement.

Mullin Wealth Management offers retirement planning and investment services near Maple Grove MN, and near St Cloud MN.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Financial Planning

Fri, 03 Jan 2020 21:28:50 GMT

Get a custom financial plan

Predictions that will definitely maybe play out in 2020

ppmullin@gmail.com (Peter Mullin) — Mon, 23 Dec 2019 14:52:02 GMT

Football

Tom Brady retires after winning another Super Bowl.

Ho using

Home prices stay relatively stable. Mortgage rates for buyers and refinancing alike go up modestly. New homes builders continue to drive new supply to the market, rather than sellers.

Sector Favorite: Your Health

The healthcare sector may get beat up on, again, throughout the 2020 election cycle. But by November 2020, the horizon will look healthy for healthcare.

Municipal Bonds

The world of municipal bonds - a source for tax efficient income - saw healthy results in 2019. Expect more of the same in this low-supply, higher demand category for 2020.

Trade and Tail Winds

Change is constant

Questions about what lies ahead for you as life unfolds? You are here. Feel free to reply and inquire about your personal matters.

***

Municipal bonds are free of federal income tax. Municipal bonds also may be free of state and local income taxes for investors who live in the area where the bond was issued. If a bondholder purchases shares of a municipal bond fund that invests in bonds issued by other states, the bondholder may have to pay income taxes. It’s possible that the interest on certain municipal bonds may be determined to be taxable after purchase.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.

No strategy assures success or protects against loss.

Consider a Charitable IRA Gift

Tue, 03 Dec 2019 19:31:00 GMT

This article discusses why a charitable IRA gift could be a good move for both you and a nonprofit.

Wondering what to do with your annual IRA Required Minimum Distribution? If you can live without the income (and taxes) that a large Required Minimum Distribution (RMD) generates, think about taking a Qualified Charitable Distribution (QCD) from your traditional Individual Retirement Account (IRA) to satisfy your Required Minimum Distribution requirement.

If you are a traditional IRA owner aged 701⁄2 or older, you can gift up to $100,000 a year to a qualified charity this way. The donation must be a direct transfer of assets-it cannot pass through your hands.1

What are the tax advantages of a QCD?

You can exclude the amount of the gift from your adjusted gross income for the year in which you make the donation. Depending on your situation, this may also help you avoid taxation of your Social Security benefits or the Medicare surtax. Since a QCD is not a deduction, even taxpayers who don’t itemize can benefit from one. 1,2

Does the income from your annual IRA Required Minimum Distribution risk putting you into a higher tax bracket? Imagine being able to lower your adjusted gross income by up to $100,000 a year while also helping a charity. By the way, that $100,000 annual QCD limit is an individual limit. A married couple can donate up to $200,000 in a year via QCDs while meeting some or all of their Required Minimum Distribution requirements. 3

You may want to plan a QCD well before the December 31 deadline. Call or email me to explore this possibility now –– it may provide you with a substantial federal tax break.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

Sources/Disclaimers:

This material was prepared for Mullin Wealth Management and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such.

___________________________

1 CNBC.com, “Now you can donate to charity through your IRA” (November 28, 2016)

2 Forbes.com, “The ABCs Of Using Your Retirement Account For Charitable Giving” (May 17, 2017)

3 Forbes.com, “Why Retirees Need To Stop Writing Checks To Charities” (January 20, 2016)

#1-69625New Paragraph

Spin the Market Wheel

Tue, 03 Dec 2019 19:24:49 GMT

Big names make big market projections a tradition; but they are usually wrong

At the end of each year there is a tradition in the financial news market.

Folks sit around the table and tout their expertise on television and in newspapers. They share their projections for what will occur over the course of the coming year.

"It’s popular to have an opinion.

And it’s common for that opinion to be wrong."

It’s actually fun to put these projections on replay. Because some are close and others are just dead wrong.

These forecasts are made with a good amount of data. But they cannot project human sentiment, behavior, and of course, wild cards.

Where will the S&P 500 end 2019?

The S&P 500 closed at 3087 as of November 6, 2019

These projections are skimmed from the Yahoo! Article, What Wall Street strategists forecast

for the S&P 500 in 2019 , (December 31, 2018.)

Morgan Stanley: 2,750
Merrill Lynch: 2,900
Goldman Sachs: 3,000
JP Morgan: 3100

Learn why you should embrace market uncertainty : Read Share Power

Here’s how the above forecasters did in 2018 :

Morgan Stanley: 2750 ( Wrong )
Merrill Lynch: 2800 ( Wrong )
JP Morgan: 2800 ( Wrong )
Goldman Sachs: 2850 ( Wrong )

Info from WSJ, Wall Street Forecasts: 2018

Failed forecasts : The S&P 500 actually closed on Dec 29, 2018 at 2506. It posted a -6.25% loss for the year.

What’s your bet? Where will 2019 end? Does it matter? (I would not be too preoccupied by one day in the life of the S&P 500.)

Learn why you should embrace market uncertainty : Read Share Power

***

Peter Mullin is an independent financial advisor registered through LPL Financial. He lives in Rogers, MN with his family. He was born and raised in St. Cloud, MN. Mullin Wealth Management is headquartered in Saint Cloud, MN.

Peter now has an office location at 6469 Sycamore Ct N, Maple Grove, MN!

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.

All performance referenced is historical and is no guarantee of future results.

All indices are unmanaged and may not be invested into directly. No strategy assures success or protects against loss.

The Standard & Poor’s 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

November Musings: What investors seem to be thinking about around Central Minnesota

Thu, 07 Nov 2019 16:49:24 GMT

Folks around Saint Cloud and Maple Grove seem to be talking a great deal about elections and the holidays.

*I heard the WSJ expects that we will spend 8.8 Billion on Halloween? And Millennials will account for $1 of every $2 spent

*Black Friday deals are already out! What’s on your shopping list?

*Menards, Target, Costco … They all have Christmas sections up already

*We have seen two snow flurries in November already

*November 2019 saw all-time Dow Jones highs. Market highs beget new highs. Who’s buying?

*The Nationals won for the FIRST time in FRANCHISE history. I had a few disagreements about this. To set the record straight, yes, the Nationals have won as a city/name, prior. But this franchise was born in 1969 .

*According to another reprint online article you should NOT carry your own social security # in your wallet or that of any of your loved ones.

*December 21st is the shortest day of the year. The good news is winter looks a whole lot brighter after Christmas!

###

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments may be appropriate for you, consult your financial advisor prior to investing.

Peter Mullin is a Registered Representative with LPL Financial.

Why value investing in 2020?

Thu, 17 Oct 2019 16:01:02 GMT

Value Investing : One style I like to use to strive for portfolio growth

Value Investing is essentially buying the stock of companies we know well and appear to be trading at a discount.

Why value investing in 2020?

Pictures speak. See below.

(Chart from Morningstar’s website)

What you are looking at above is a general chart of an investment idea. I recently plugged this individual position into some client accounts. (No, I can’t share what it is.) I can say that the blue line generally charts the S&P 500 index through mid-October. The red line? That is an individual stock of a company that is well known to many a household.

*Why is it down while the S&P 500 is up?

*Is that a good thing?

Value investing begins by asking what a fair price would be if you wanted to buy the entire company. That can help us determine what you should pay per share.

*But Benjamin Graham instructed his students to look beyond this. Look for a margin of safety. Ask how protected a company may be when bad economic weather blows through. In other words, a 5% discount is good. A 15 or 20% buffer is even better.

*Example: If a company is valued at $10,000, and it only has 10 shares available to purchase, then each share would be worth $1000. IF a company like this were selling for $800/share, then we would say they are “discounted” or “undervalued.”

(Small Business Owner’s Lesson: This is not unlike how your company may be priced and sold someday. Often, small businesses simply sell 100% of their shares to one or two other business buyers.)

Investing for 2020: Finding “good” investment ideas in a maturing market can be hard.

“Wide diversification is only needed by someone who doesn’t know what they are doing.” -Warren Buffett

Value investing is not quite like finding the needle in the haystack. It’s more like observing the stray cornstalks in the bean field.

Individual stocks stand out because everyone appears to be planting, harvesting, and selling the beans this year. And yet you and I wonder what it would be like to buy the corn.

This season’s bean field is like buying a diversified mutual fund of stocks. It is diversified. But diversification does not protect against portfolio loss. We know that.

*Well, value investing will not protect against loss. But I bet that the stray stalks of corn in my photo standouts, yes?

*A margin of safety can stand out, too. Look for a margin of safety. Ask how protected a company may be when bad economic weather blows through. In other words a 5% discount is good. A 15 or 20% buffer is even better.

*Observe the value-based investing theme as this market continues to mature.

*Buying a diversified stock fund is like getting a ticket to a movie theater where you are required to watch the same movie, and eat the same concessions as everyone else. You don’t get to customize anything about it.

*Buying individual stocks can feel like your private cinema show. You can control everything down to the volume and temperature of the room.

*Whether you go to the big cinema with everyone else, or your private cinema, please remember to sit back, relax, and enjoy the show!

What if your darling individual stock loses in the short run?

-Look around. Other investments may be down, too.

-Remember, value investing does not protect against loss. But you are buying a well known company, and you bought at what was perceived as a discount. You bought with Graham’s, “margin of safety.”

-So if your portfolio or individual stocks do go down, then be prepared with some cash. You may just want to invest more!

Sit back, relax, and carry on!

Peter now has an office location at 6469 Sycamore Ct N, Maple Grove, MN!

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non- diversified portfolio. Diversification does not protect against market risk.

All performance referenced is historical and is no guarantee of future results.

All indices are unmanaged and may not be invested into directly. No strategy assures success or protects against loss.

Three Big Achievements

Tue, 08 Oct 2019 20:00:14 GMT

In the past 13-months I have checked three big things off my business plan. Sounds like I have been growing, yes?

Here’s the inside look at my plan:

1. Acquire more permanent and convenient office space in Saint Cloud. I purchased the space I currently occupy on the corner of downtown Saint Cloud.

-I just enjoyed a brisk walk to the local coffee shop this morning downtown.

-Plenty of free parking is available to you and me.

2. Hire a key person and/or assistant. My assistant, Taryn (internal memo: link to approved bio page on webpage.), has proven to be a key asset for my day-to-day practice.

3. Consider a secondary location in or around Rogers, Minn.

-This fall I will have a small office just off i-94 in Maple Grove. I view this secondary location as a place of convenience and opportunity for clients and your family members and friends who live closer to the metro area. Even those from Saint Cloud may admit that they drive to the corner of 494 often throughout the year.

I look forward to guiding you and your family for years to come - no matter where life brings you next!

Carry on!

Saint Cloud - Primary Location

1011 2nd St North #110, Saint Cloud, MN 56303

Maple Grove Site

6469 Sycamore Ct N., Maple Grove, MN 55369

Family Finance Series

Wed, 02 Oct 2019 16:29:01 GMT

Blunder #3 Wearing nearsighted financial glasses

Family Finance: Blunder #3 - Wearing nearsighted financial glasses

This Series of Mullin Money Moments will focus on financial truths that can help strive to add to your net worth over time. Wealth management is not just about building wealth. It’s about handling our income and debts in a responsible way.

Blunder #1: Overspending and being too quick to take on debt

Blunder #2: Neglecting raises and tax cuts

Blunder #3: Wearing nearsighted financial glasses

Blunder #4: Not asking, “How’s my money doing? Compared to what?”

Blunder #5: Not taking informed risk with your portfolio

BONUS >> Summer Family Finance Savvy Series: Blunder #6: Investing at high tide

###

You’ve heard the expression, “You can’t see the forest for the trees?”

Nearsighted financial choices mess you up because you are looking at the small problem. Zoom out and look at the big picture.

Of course your relative keeps getting into financial strains. Because they did not take the time to create an emergency fund the last three times they had an emergency!

Of course, you keep feeling as those things are tight. Your work hours got cut and you bought a home that was too big for you a couple years ago!

You feel like your are a little light on cash and savings lately. Because maybe you should have taken that low-interest rate loan (Yup - take the loan.) instead of forfeiting a big sum of cash you just got from your inheritance.

Above are are all examples of nearsighted money moves that may sting later. The trouble is you probably won’t even feel the sting - unless you pause to think about it.

"But Newton told us this one: Every action has a reaction.

You may not be able to imagine what that reaction will be when you act.

But this is the point of planning!"

Planning on yours and your family’s behalf is about asking, “What might happen if we do this?”

Count on your actions affecting you later.

Make positive choices that have the potential to impact you in big ways going forward.

Until next time, carry on!

***

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.

Peter Mullin is a Registered Representative with LPL Financial.

The best time to buy stuff like clothes, cars, and when to invest

Fri, 06 Sep 2019 14:39:14 GMT

*The best time to buy your fall clothes is in the winter when they hang from the clearance racks.

*The best time to water your lawn is supposedly in the early AM before the sunrises. The temperature is “just right” and the water can soak in before it would otherwise evaporate.

*The best time to invest is when you have the money.

*The best time to invest is when your investments are low (or “down”).

*Keep your bananas from browning longer by hanging them up. And by keeping them away from your other produce. Same goes for your avocado.

*You can buy a gallon of gas or an avocado for about the same price. Which do you prefer?

*Car buying is still probably best toward the final quarter of the year as the “new” cars are being hyped and old leases are being returned.

-Extra credit for buying toward the end of the month.

-Just because a car dealer is “Commission Free” does not mean they eliminated incentives.

-Also, what about theses “Best Price” car dealers? Who is the sales price “Best” for anyway? It may be for me, but I’ll look for the dealer that does offer the better than “best” price.

That’s all I have for now.

Thanks for liking and following my facebook page ! I am grateful to have the best clients and fans int he world! 

Carry on!

###

Peter Mullin is a Registered Representative with LPL Financial.

Blog Series: 5 Financial Blunders to Avoid to Help Pursue Wealth

Thu, 29 Aug 2019 14:50:44 GMT

Blunder #2: Neglecting Raises and Tax Cuts

Blunder #1: Overspending and being too quick to take on debt

Blunder #2: Neglecting raises and tax cuts

Blunder #3: Wearing nearsighted financial glasses

Blunder #4: Not asking, “How’s my money doing? Compared to what?”

Blunder #5: Not taking informed risk with your portfolio

BONUS >> Summer Family Finance Savvy Series: Blunder #6: Investing at high tide

YOU may have come about more money last year in two ways. The first is intimidating for some. And automatic for others. Did you get a pay raise?

The second way you should have come about more money is the 2018 tax law changes.

Raise, please

Money is a taboo and uncomfortable topic for many. Is it any surprise that requesting a raise is intimidating? Here is the mentality I suggest carrying with you through your career: Make yourself an in-demand employee.

*Ask to be assigned to matters that impact the future of the company.

*Consider the work environment. Are there competitors looking for you to join their company? You can leverage this to your advantage.

*Consider your benefits. Perhaps your health and additional benefits are among the best. And maybe that outweighs the need for a raise right now.

When reviewing your “performance”:

*Initiate reviews (assuming you work for an employer that does not hold routine reviews). *Establish the agenda by e-mail with the individual that will help with your review. You could simply send an e-mail with three things. Yes, one of these items is “questions about your pay and benefits.”

*When you get the chance to review your position and the upcoming year, then go over your three things. And ask for the decision-makers help.

-“Who can help me request a raise?” or “How do I go about asking for a raise here?” or “This is uncomfortable for me. But I would like to get a raise this year.”

*Listen. Be respectful.

*Be prepared to hear, “No” or “Later,” in regards to that raise. But ...

-Ask “When can we revisit this?” "How should I bring this up, again? This is important to me.”

Tax Cuts mean More Savings

Imagine having $200 more per month to save or pay toward debts.

You do realize that your taxes likely changed in 2018. Not news by now, right? (Hopefully.) Ask your employer or accountant for help reviewing your withholdings.

You could be saving more money throughout the year. Why wait for your tax refund? A refund is just the return of your tax overpayments.

In 2018 the tax code was changed and affected most taxpayers.

In 2019, Minnesota and other states are starting to catch-up. I refer clients to CPAs for filing and specific guidance.

Are you employed? Request and review the W-4 to adjust your withholding. Payroll and withholding calculators can help be a guide for the number of federal and state allowances you can elect.

Are you self-employed? Work closely with a tax professional to review your withholdings.

-Did you pay in last year? >> You may be advised to increase your routine withholdings.

-Did you receive a refund? >> Maybe you had one-time expenses or realized less profit? Or maybe you want to ask about reducing your withholdings?

###

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.

Peter Mullin is a Registered Representative with LPL Financial.

7 headlines to help keep your money on track. Why the headlines we read matter

Mon, 05 Aug 2019 20:06:05 GMT

Market headlines can disrupt your portfolio in 2019 – and during every bear and bull market.

Is this different? No. It is not.

First impressions do matter. And the same is true with headlines. Continue to align your portfolio with strategy and allow it to work overtime.

Let me take you back in time to 2008, when I began my career:

September 15, 2008, Lehman Brothers files Bankruptcy
September 29, 2008, Dow Jones posts a 6.98% loss
October 9, 2008, Dow Jones posts a 7.33% loss
October 15, 2008, Dow Jones posts a 7.87% loss

We have been through the Great Recession together, Dear Clients. Imagine the real and hyper-headlines then. You and I could study decade after decade and discover more yin-and-yang headlines during the same calendar years.

The S&P 500 reached an All-Time High, in July 2019. Is this time different? What's next for the US Markets?

Is this different? No. It is not.

Headlines entice us toward reading and “staying tuned” - and then we wonder if we should act.

7 Headlines for your Market Watch

Below are several headlines that led us to where we are so far in 2019.

“S&P 500 soars past $15 trillion in value” - CNBC, July 19, 2019

“JP Morgan raises its stock market forecast, sees a China trade deal and an easy Fed” - CNBC, July 15, 2019

“Global Stocks Gain on Hopes for Interest-Rate Cut” - WSJ, July 2019 “Nasdaq slides into correction territory” -WSJ, June 4, 2019

"Morgan Stanley sees global recession ‘in three quartersʼ if Trump escalates trade war” -CNBC, June 3, 2019

“Dow futures point to 200-point gain after China says trade dispute should be resolved with talks.” -CNBC, June 4, 2019

Forecasting Headlines:

“ Is a recession coming in 2019? Economists say data has ‘distinct whiffʼ of economic slowdownʼ ” (Newsweek, 5/28/19)

“Dow Plummets After Trump's Mexico Bombshell Ignites Market Panic” -CNN (May 5/31/2019;

Context: The Dow Jones went down about 1.1%. A pretty typical day.

Fun fact: Historically about half of the days throughout the year are positive, and the other half are down. Figure that math out.

By the way, confusing, alarming, and accurate headlines cause us to question if we are okay. How will our lifestyle be affected?

This is why my Second Value is this:

#2. There is no such thing as the perfect portfolio. Instead, I strive to align research and your risk sentiment with suitable strategies to drive results over time. I ask clients to be brave when others are fearful and to be optimistic when others are pessimistic. I think itʼs a good life mantra to live by, too.

FROM THIS HISTORIC BULL MARKET - FIVE YEARS AGO :

“Dow Jones Industrial Average hits 17000 for first time” (BBC, July 3, 2014) “Market ‘freak out:ʼ Stocks rebound from scary plunge” (CNN, October 15, 2014)

Extra!

For fun: This is how editorʼs construct headlines:
Use “Powerful Language”
Target “keywords” to appear in readers searches online Use numbers
And more... The ellipsis must be clicked to read on.
Example: " This Simple $2 toothbrush may be the only one youʼll ever need ," -MarketWatch, Dow Jones, July 19, 2019

It reads very much like an ad.
The headline has a number.
I like simple!
Maybe Iʼve been paying too much for my toothbrush?

Is this different? No. It is not.

***

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

All indices are unmanaged and may not be invested into directly.

No strategy assures success or protects against loss.

Summer Family Finance Savvy Series:

Wed, 24 Jul 2019 15:13:23 GMT

Blunder #6 Investing at high tide

Hi there, Growing Family!

Wealth management is not just about building wealth. It’s about handling our income and debts in a responsible way. In this series I aim to share a blueprint for where your smart money should flow. At the end of each “Blunder,” I’ll give you two real life action steps to consider taking on your own!

This Series from Mullin Wealth Management will focus on family-centric financial truths that strive to add to your net worth over time.

Blunder #1: Overspending and being too quick to take on debt

Blunder #2: Neglecting raises and tax cuts

Blunder #3: Wearing nearsighted financial glasses

Blunder #4: Not asking, “How’s my money doing? Compared to what?”

Blunder #5: Not taking informed risk with your portfolio

Summer Family Finance Savvy Series: Blunder #6: Investing at high tide

I bet if you were paying close attention to any investment accounts you have you might have noticed that they reached ‘all time highs’ in July 2019. That’s a good guess because the S&P 500 reached a new high in July.

And that made me wonder: As a dad, and a financial consultant, what should I be doing now?

Handling money is a tug-of-war of paying expenses, debts and saving for life. In this Summer Family Finance Savvy Series, I wrote about the basics of budgeting and overspending in Blunder #1: Overspending and being too quick to take on debt.

Now I want to talk about why now may be time to consider making a few more loan payments.

Think about a sale at your favorite red store. I don’t know about your family, but when we find a deal that’s too good to pass up, then we will jump - and maybe buy a bit more than we need!

Investing and debt payments are not nearly as rewarding as buying stuff at the checkout. But ... if you have investment accounts (e.g. a 401(k) ), then think about this:

There is this sage mantra: Buy low, Sell high
At this moment (July 2019), it’s reasonable to assume that your 401(k) is higher than you’ve ever seen it.
If your portfolio and the S&P 500 are at higher values, then it is normal to expect them to go lower (correct) before going higher. ( See my article here. )

So what if you continue to save toward the family retirement accounts, but make a few extra loan or credit card payments ?

So do this: Decrease your 401(k) contribution to the minimum, so that you still get your employer match (“free money,” as many call it.)
Be smart and apply that additional money toward extra loan payments instead.
Remember, check back if/when your 401(k) balance is lower due to a normal correction.

This is very much strategic: Be careful to use math and logic. My crystal ball is very foggy when it comes to where your portfolio will be in 6 months or a year.

But you are assuming that your portfolio has limited upside. The reason you continue to invest is because you or I cannot say when the down or low side will occur. It could be in October. It could go even higher before it goes lower. So it’s savvy to continue to invest as you address your debts.

Focus more on your debts. Because most debts are at fixed interest rates. It is certain that you are paying 5-6% on student loans, for example. And the only way your loan balance goes down faster is with your extra payments.
Here is my math: I have to assume that the upside or even your average expectations for your investments is somewhere around 5-6%, too.
Of course, you can follow this approach without any regard for the value of your portfolio value. Because we believe that the average results of compounding overtime will reward you! (Watch this quick and cool video that can take the worry out of low and negative returns. ( Video: Why Average Results Can Be Great! )

A bit more for those who like to discuss investing :

Stocks don’t have a “sales price”; they have a daily, minute-by-minute valuation. And assuming you’re receiving reasonable guidance with your investments, then even quality investments go up ... and down ... in price. That’s a fact.
I tell clients that I can’t predict where the stock train goes from here, but when selecting choice investments, I prefer to and do recommend buying quality investments that I know with 100% are lower in price than they were, say, 90/180/etc days ago.
Disclaimer: There’s a lot to consider with investing including the overall environment. That’s where guidance and research becomes valuable.
But buying quality investments at low(er) prices is one sound principle of investing.
Important: No, I’m not talking about putting your life savings into that stock of company that is going ... going ... gone. Or buying “that” individual stock because you can “buy a lot of shares at $5 a share...” I don’t recommend running into a burning barn.
I’d rather own a bit of a diamond than a sack of rhinestones.

###

All performance referenced is historical and is no guarantee of future results.

All indices are unmanaged and may not be invested into directly. No strategy assures success or protects against loss.

Peter Mullin is a Registered Representative with LPL Financial.

5 Oversights of High Income Earners

Thu, 27 Jun 2019 14:49:03 GMT

Create a comfortable financial foundation with ideas like these

1. Maxing out your 401(k) & Stopping There:

You can save $19,000 in your 401(k) in 2019. Plus, $6000 more if you are 50 and older. The trouble is high earners tend to not max out their 401(k). If they do then they stop there.

Keep Going:

Open a private “rainy day” investment account . A benchmark to reach for is to save upwards of 10-12x your salary by retirement . A rainy day fund can help. A rainy day fund is another layer of foundational security. Do you have a home remodel or big vacation coming up? Save your cash and tap into your rainy day fund. Invest in this additional account on a monthly or regular basis. Again, do this in addition to maxing out your 401(k).

If you are a business owner and do not have access to a 401(k), then check out #2 - Neglecting Savvy Tax Planning.

2. Neglecting Savvy Tax Planning

-A 401(k) contribution! (See #1)

-HSA contributions

-College Savings; Fund 529 Plans

-Learn more about an overlooked portfolio position in tax-free/ municipal bonds.

3. Eliminating Debt Instead and Neglecting Opportunity Costs and Tax Gains:

But many are trained to establish a solid financial foundation by eliminating debt - and at all costs. Society should thank high earners. They make mistakes.
Focus on where the smart dollar should go.

4. You Forget about College Planning: High earners can be brutalized through the FAFSA system. Why?

A high weighting is placed on parents’ income.
College Planning in 2019 and 2020 for high earners likely has more to

do with encouraging great grades, participation in extracurricular

activities and the relentless pursuit of scholarships.
The other thing high-income parents need to consider is proper

funding for college.
Consider using 529s and additional investment options.

5. Living Like There's No Tomorrow:
Save more. Seriously. There are folks making half as much as you do – and they save twice as much as you do, and more.

Get an estate plan put together. And tell your family about it so that there are limited squabbles. Your legal professional and financial professional can help you.
Audit your group or personal insurance to assess that it reasonably meets needs now and potentially in the future.

Get insured: this includes life insurance and disability insurance.
Job changes and disabilities and family emergencies can cause reductions in income. Shore up your family savings account. *That rainy day investment account comes in handy here, again.

Do you earn a high income? Is life and tax planning getting more complicated? Feel free to take the 15-minute challenge. Give me 15-minutes with your tax returns. I'll give you a bullet-point summary of my findings.

***
Feel free to take the 15-minute challenge.

Peter Mullin is an LPL Financial Advisor with Mullin Wealth Management in the St Cloud, MN area a resident of Rogers, MN. Visit www.mullinwealth.com to learn more.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.

Investing involves risk including loss of principal.

The lesson of how the economist nearly drowned ... in a 4-foot quarry

Wed, 12 Jun 2019 18:02:19 GMT

Once upon a time, an economist was hiking with his friend. They came upon a lake with a sign that read, “Warning: Swim at your own risk.” Next to the sign was a sign explaining the history of the woods and the lake. The sign clearly stated that the average elevation around the lake was 4-feet.

The economist stated that he was hot and would very much like to cool off. So the economist took his shoes and socks off and waded into the water. He took a few steps in and suddenly the 6-foot tall economist was in water over his head! He looked down and saw black water beneath him. He started to panic.

Now a drowning man does not typically thrash about. In fact, they can sink under the water without anyone taking much notice. His friend was along the shore and called for help. Suddenly, a Good Samaritan threw a life ring out. The economist resurfaced and was able to grab hold.

After the Good Samaritan pulled him to shore the economist thanked him. The Samaritan spoke, “Son, what mind do you have going out there when you know you can’t swim?”

The economist said, “That sign lies! It said this lakes average elevation was 4-feet in depth!”

“Sir. I owned much of this land before I donated it to the park not 20-years ago,” the good samaritan started.

“Then maybe you should tell them to fix this sign,” the economist interrupted, again.

The Good Samaritan finished explaining, “The sign is correct. The average elevation is 4-feet. But this is a big quarry.” He pointed to the rocky landscape surrounding them. “Up there is 100 feet above us. And down there,” he pointed to where the economist began to drown, “you go 100-feet below. If you stay near the edge you are right. But if you go to the middle you are very, very wrong.” Tell me,” said the Good Samaritan, “what is it you do for a living?”

“I am an economist!” he replied.

“Oh, so I don’t need to waste your time telling you all this. You’re used to being wrong!” The Good Samaritan smiled and walked away.

The Lesson

I heard Warren Buffett explain at his 50th Shareholders meeting in the CenturyLink arena (Omaha) that, “We think a company with an economist on staff certainly has one employee too many."

Many economists are good at reading numbers. But few get the economy right. Even more economists state predictions with no margin for error.

Predicting the economy is a lot like predicting the weather. Except with the weather there is some margin for error.

When was the last time you heard a loud opinion or headline state: “RECESSION LOOMING. ( 30-70% Chance )”?

Nope. The first part sells headline news. Balanced opinions do not get as much air time.

Since 2010, I have heard that the next recession is looming. I have heard that our national debt will ruin us. That social security is going to go bankrupt. That interest rates are going to rise. No matter the calendar year. These topics cycle through. Eventually these predictions may play out. But likely not as most economists think.

At least when the weather report states that we can expect rain, we can clarify that rain is 70% likely. Then I’ll pack my umbrella.

The Punchline

I want to help you stare fear of financial loss in the face. I think you can do this by becoming an informed investor. Remember, there is no such thing as the perfect portfolio. I let client conversations and needs lead the way.

I started as a financial advisor in 2008. Just as the Dow Jones started a now infamous losing streak, and Lehman Brothers declared bankruptcy. And it got better. It historically does. But talk about being thrown into the deep end!

Even when things may feel scary we can still rely on a principle-driven process.

My investment process evaluates your circumstances and risk sentiment; it calls upon trusted resources and Nobel Prize-winning ideas like diversification (Awarded in 1990 to Harry Markowitz) and keeps you & your idea of a comfortable life at the center.

ARE YOU A CLIENT CANDIDATE?

**Are you a client candidate? Individuals who want to take advantage of savvy tax planning solutions while looking to live comfortably should have $250,000 to invest, otherwise, I do have a great monthly rate for clients who are aspiring to accumulate $250,000 and more!**

Until next time, carry on!

Credit/Muse/Thanks: Nate Silvers, Signal and the Noise (book)

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.

No strategy assures success or protects against loss.

Blog Series: 5 Financial Blunders to Avoid to Help Pursue Wealth

Tue, 04 Jun 2019 15:31:11 GMT

Blunder #1 Overspending and being too quick to take on debt

Blunder #1: Overspending and being too quick to take on debt

Blunder #2: Neglecting raises and tax cuts

Blunder #3: Wearing nearsighted financial glasses

Blunder #4: Not asking, “How’s my money doing? Compared to what?”

Blunder #5: Not taking informed risk with your portfolio

Summer Family Finance Savvy Series: Blunder #6: Investing at high tide

These rules apply so often to life. How do they apply to your own household? Where do you see the net value added? Please let me know!

Blunder #1: Overspending and being too quick to take on debt

“You find out who’s naked when the tide goes out.” -Warren Buffett

The above Warren Buffett quote is one that talks about how companies and families finances and stability can look good above the surface. It’s not until times get tough that we learn what’s going on underneath the surface.

Have you ever driven through neighborhoods and thought how great it must be to live in such a nice neighborhood? To drive such a nice car?

I think living below your means still applies to the fortunate and high income earners. In fact, living below your means probably becomes more important as your income rises. There are plenty who continue to buy things with debt. It’s a cycle. Look at your paycheck now compared to last year. Did you get a raise? Did your taxes actually get reduced? Rather than neglecting pay raises or tax cuts, what if you invested it? What if you applied that money toward a nuisance debt? What if you made an extra payment toward your mortgage? You can do things differently.

For my family, it’s about doing things different today so that we can keep applying our money toward a better tomorrow.

Want a credit card with that soda?

I’m amazed that grocery stores can sell soda near the cash register. Why would I pay almost $2 for one bottle of soda when I can pay maybe twice that for 12 cans of soda? But it must work. The soda has been there for decades. And those 12 cans are down the aisle for those of us who care to walk a little ways to quench our thirst 12 times over.

Retail credit is like offering candy and soda at the checkout. It’s relatively easy to access. It always seems to be in front of us. Think of the last time you went shopping. Are you a card holder yet? If you’re a qualified borrower, then you may be approved on the spot. Just like that your purchases become linked to a debt and payment.

I’ve read a lot more about how companies are promoting their branded credit card line. Why do you think this is? It’s because it can be another profit line for the company. These are companies that really don’t have any primary business in finance. But they ask you to hold credit cards as a “valued” customer.

As the economy and jobs and wages improve our spending slowly increases. Our appetite for risk increases.

Look for yourself:

In the final quarter of 2008, as the Great Recession from December 2007-June 2009 was unfolding, credit card balances were peaking at about 870 Billion. (Reference: Center for Microeconomic Data, Federal Reserve Bank of New York.) In mid-2011, they were down to about 700 Billion. And at the end of 2017, they were back to about 830 billion.

Compare how much debt we’ve taken on since 2011, the difference between 830 and 700 billion ... is 130 billion.
So it’s mid-2018 today. It’s been 7 years. Every second since mid-2011, another ~$35,310 has been racked up on credit cards.
$35,310 is enough to buy a pretty nice car...Every second

Remember that our economic system can make you feel more comfortable behaving a certain way with your money. In good times credit seems to be more available. It can make us focus in terms of what we can afford.

Thank you, Warren.

Warren Buffett has certainly earned the reputation as an educator in business. People are eager to listen because he has a way of breaking down the complex into simple, anecdotal ideas. It doesn’t hurt that he’s a self-made billionaire.

When Buffett says to mind your little expenses and to not be quick to go into debt, perhaps we should listen?

Resolution #1: Live Below Your Means.

We live in a world where we buy things when we want them. It’s more the norm than not.

You could make payments on things like furniture and TVs and other household items. Or you could develop a strong sense of satisfaction because you did what many do not: You saved for something you wanted.

There is something that happens in our brains when we choose to pay for things with cash – immediately. You can place an expense on your credit card and pay off the balance every month. But there is a different mentality to paying for something with cash or from your bank account.

If you’re thinking about a big purchase or remodel purchase, then think about what your return might be. Think about five years from now. Think about just two years from now. Are you better off because of the big expense?

Don’t neglect the little recurring expenses. Look at these common culprits that tend to rely on your human behavior to NOT cancel:

Magazine subscriptions
Gym memberships
Extra data on your cell phone that you pay for but don’t really use.

Little things do add up over time. I’ll end this with this favorite quote of mine from Ben Franklin :

“Small leaks sink big ships.”

Think about this and carry on!

###

“Wealth management is not just about building wealth. It’s about handling our income and debts in a responsible way.” - Peter Mullin

Are you living below your means? Contact Peter Mullin.

###

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.

Peter Mullin is a Registered Representative with LPL Financial.

Reference: Center for Microeconomic Data, Federal Reserve Bank of New York, HOUSEHOLD DEBT AND CREDIT REPORT (Q4 2017)

DO YOU HAVE TIME TO BE WARREN BUFFETT?

Tue, 21 May 2019 19:25:24 GMT

Warren Buffett has so much money that he could continually drop $100 every minute for the rest of his life, and he would have billions left. In fact, he’d probably have to drop much more than $100 every minute. He would have to drop a bundle of 139 one-hundred dollar bills every minute for the next 11 years – until he is one hundred. And he’ll probably have money left.

Would you trade Warren’s net worth for your net worth? There’s one catch. You have to trade ages, too - he is turns 89 in August. The life expectancy of a man in the USA is 78.

I would not trade life expectancies with Warren for his net worth.

What about you? Maybe you would if you are 88 or older!

Your answer gives you a sense of how limited and valuable time truly is. I value spending time with my family and loved ones. When I’m away longer than one day, I miss them.

Time is finite.

And by the way, sadly, no one knows this better than someone who has lost someone very dear to them.

Time can Motivate You

Think about time and your life differently. Are your parents still around? Are you a grandparent? How often do you get to see them? Think about this - especially if you live out of state: Imagine you are (or your parents are) 70. God willing, you may live until 80 or 90 in good health.

That’s 20 more years of life. But if you see your family three times a year, and you live 20 years longer...then that’s just 60 more visits with your family. That’s 60 more cherished holidays...60 opportunities to hug them, to take photos with them, and to eat with them.

Time is valuable. Make the most of it. Make sure to create memorable moments. Fill your calendar doing the things you want to do, and with the people you love.

ARE YOU A CLIENT CANDIDATE?

Until next time, carry on!

***

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Why Average Results Can be 'Great' : Money Minutes with Mullin Wealth Management by Peter Mullin

Wed, 01 May 2019 15:46:07 GMT

I have seen this one single lesson I have just shared with you give my clients confidence and permission to settle in and weather the storm. And I think it will continue to help you and I keep our eyes on the horizon. Let this sink in. Average results are GREAT when you compare it the unknown and uncomfortable market cycle. So what if you saw a negative year? Stick to your long haul investment strategy. Go ahead and give your self permission to look toward the future. Average can feel great!

Peter Mullin part of “Top Ten GWP AUM” group of Financial Planners

Thu, 28 Mar 2019 17:56:57 GMT

Why this matters to investors and how Guided Wealth Portfolios can help you.

March 2019

It’s nice to receive recognition as an independent advisor. My provider recently sent me a letter acknowledging my success and belief in a highly accessible and robust investment platform.

In March 2019, I was acknowledged for being in the “Top Ten GWP AUM” group for a program I’ve touted as robust and accessible to the benefit of my clients. GWP stands for Guided Wealth Portfolios. AUM refers to Assets Under Management. There are 16,000+ advisors affiliated with my firm. I’m one of the top ten financial planners utilizing this program. I believe this should tell you a few things:

I’m open to embracing technology that improves client relationship.
I know that technology can not replace relationships.
I work hard for my clients and have conviction in things that have the potential to improve your life and money.

In 2016, I began to harness this robust and accessible platform because I believe clients can gain from its advantages. Portfolios are available through so many choices. No choice is perfect. But this checks many of the boxes for me. Some of which are:

Are costs competitive and reasonable?
What will it do for my clients over time and as portfolio weather changes?
Can clients access it 24/7?
Does it feel relatively simple? Could investors set an account up one time and “let it be,” knowing the program will adjust, as needed?

See for yourself on the Guided Wealth Portfolios Page: https:// www.mullinwealthmanagement.com/guided-wealth-portfolios

You and your family ought to check it out - and perhaps you already have. Thank you!

For more disclosures about GWP, please go to https://www.mullinwealthmanagement.com/ guided-wealth-portfolios

*** https://www.mullinwealthmanagement.com/guided-wealth-portfolios

Peter Mullin is a financial planner, currently registered through LPL Financial.

Guided Wealth Portfolios (GWP) is a centrally managed, algorithm-based, investment program sponsored by LPL Financial LLC (LPL). GWP uses proprietary, automated, computer algorithms of FutureAdvisor to generate investment recommendations based upon model portfolios constructed by LPL. FutureAdvisor and LPL are nonaffiliated entities. If you are receiving advisory services in GWP from a separately registered investment advisor firm other than LPL or FutureAdvisor, LPL and FutureAdvisor are not affiliates of such advisor. Both LPL and FutureAdvisor are investment advisors registered with the U.S. Securities and Exchange Commission, and LPL is also a Member FINRA/SIPC. 

All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

References to tax strategies that the GWP service investment management considers in managing accounts should not be confused with tax advice. LPL Financial does not provide tax advice. Clients should consult with their personal tax advisors regarding the tax consequences of investing.

How to Work With a Financial Advisor

Tue, 12 Mar 2019 19:56:28 GMT

Description : Your financial advisor is your partner in working toward a sound financial future. Here’s how to get the most from this important relationship.  

Synopsis : No matter what your level of investment experience or sophistication, you may benefit from developing a relationship with a financial advisor. Why? Because a qualified financial advisor is trained to analyze your personal financial situation and prepare a program designed to help you address your financial goals and objectives.  

Financial advisors are often trained as accountants, lawyers, insurance agents, or stockbrokers — all professions that have a relationship to different aspects of your financial well-being. Because of this association with another profession, a financial advisor frequently will specialize in a specific type of financial planning, such as retirement planning or estate and trust planning. While their experience and qualifications often vary, financial advisors (also called financial planners or financial consultants) can earn various professional designations that can boost their credibility and your confidence.  Most people can benefit from professional guidance when they venture into the complex and confusing world of managing their financial affairs.

A financial advisor will be able to assess your risk tolerance, analyze your resources and current asset allocation, take into account your tax liability, and make investment recommendations in the form of a written financial plan that will help you to pursue your goals. The plan may help ensure that your current and future assets are used to their best advantage given your current financial situation and your financial goals.

How to Work With a Financial Advisor

A flurry of new investment products, the emergence of global investing, the shift from company-funded pension plans to employee-driven retirement plans (like 401(k) plans), and uncertainty about Social Security have all contributed to the increased need for qualified financial advice. No matter what your level of investment experience or sophistication, you may benefit from developing a relationship with a financial advisor.

What Is a Financial Advisor?

A qualified financial advisor is trained to analyze your personal financial situation and prepare a program designed to help you address your financial goals and objectives. It might be helpful to think of your financial advisor as a kind of doctor for your financial health.

Financial advisors (also called financial planners or financial consultants) can earn certifications or designations by completing accredited courses of study. Two of the most common are the Certified Financial PlannerTM (CFP®) certification, which is awarded by the Certified Financial Planner Board of Standards Inc., and the Chartered Financial Consultant® (ChFC®) designation, which is awarded by the American College of Financial Services in Bryn Mawr, PA. There is also the Registered Financial Consultant (RFC®), which is a designation awarded by the International Association of Registered Financial Consultants.

Financial advisors are often trained as accountants, lawyers, insurance agents, or stockbrokers -- all professions that have a relationship to different aspects of your financial well-being. Because of this association with another profession, a financial advisor frequently will specialize in a specific type of financial planning, such as retirement planning or estate and trust planning. Financial advisors are usually compensated in one of three ways.

They may:

Charge a fee for their time and service but sell nothing.

Give free advice but charge a commission on transactions involving investment products such as mutual funds, stocks, bonds, and insurance products.
Charge both a fee and commission on transactions.
Although all three methods of compensating financial advisors are popular, some people prefer to simply pay a financial advisor for services provided, in much the same way you would pay an accountant or a lawyer for advice.

Benefits of Working With a Financial Advisor

Most people can benefit from professional guidance when they venture into the complex and confusing world of managing their financial affairs. A financial advisor will be able to assess your risk tolerance, analyze your resources and current asset allocation, take into account your tax liability, and make investment recommendations in the form of a written financial plan that will help you to pursue your goals. The plan may help ensure that your current and future assets are used to their best advantage given your current financial situation and your financial goals.

Building a Good relationship:

Knowing what to expect from your financial advisor can help establish a long and prosperous relationship. Here are some questions to ask to establish a working relationship with your advisor.

What is your educational background?
What (if anything) did you do before becoming a financial advisor?
Do you offer specific or general recommendations?
Will you help to implement these recommendations?
Do you offer financial advice on non-investment issues, such as estate law or accounting?
If so, at what point would you bring in someone else to help?
How do you keep in touch with your clients?
Do you initiate annual reviews or should I?

Building a Relationship

Many events may be catalysts to seek financial help, such as planning for retirement or establishing a college fund or even changing jobs, but once you have established a relationship with a financial advisor, you will probably find a number of other ways you can benefit from working with him/her.

At your first meeting, you and your advisor will identify your financial needs and investment goals.

Although it sounds simple, this can be harder than you think. Your advisor will be able to ask you the right questions to help you to determine what your goals are, just in case you aren't sure yourself.

To prepare for your first meeting, call your advisor and ask what specific documents and information you should bring. These may include essential documents such as wills, copies of insurance policies, pension information, and investment account statements. In addition, you should be prepared to answer or at least discuss the following questions:

Retirement -- When do you plan to retire? In what style do you expect to retire? Do you have any retirement savings?

Income and Savings -- What is your current income and rate of savings? Do you anticipate a change in jobs, leaving a job to stay home with children, or starting your own business?

College -- Do you have plans to fund or help fund your children's education?

Disasters -- Are you prepared for the unexpected? If you lost your job, had a serious accident, or contracted a serious illness, would you be prepared financially?

Estate Planning -- Do you have a will? Have you considered the tax implications of transferring your estate to your heirs?

After you and your financial advisor have established your investment goals and objectives, your advisor will create a plan for you and review this with you. Among the objectives, the plan may include making sure you have sufficient insurance, that you have cash reserves to meet unexpected financial needs, and that specific short- and long-term goals are provided for. The plan may also involve reallocating some or all of your assets into more suitable investments that fit your risk tolerance and your investment goals. In addition, the plan will recommend where to invest future assets (regular savings or lump-sum payments) and how much you will need to save to achieve your financial goals.

After you and your advisor have agreed on a plan of action and implemented it, all you need to do is schedule annual financial reviews to make sure the plan works to your satisfaction and that none of your goals have changed over time. And if you have major changes or events in your life, keep your financial advisor informed of these. Some examples include a change in marital status, the birth of a child, a change in income, or receiving an inheritance.

Taking Charge

To work successfully with a financial advisor, you need to build a solid relationship based on trust and mutual respect. And most important, you need to be involved. Often, the least successful relationships are those in which the client is not very involved.

By deciding to consult a financial advisor, you have begun to take charge of your finances. A professional financial advisor will help you identify your investment goals and create a plan that may help achieve them. In the years to come, your advisor can become a trusted friend and confidant. And together, you will have implemented a strategy to that seeks to maximize the earning power of your assets so that they are working toward creating a more confident financial future for you.

   Because of the possibility of human or mechanical error by DST Systems, Inc. or its sources, neither DST Systems, Inc. nor its sources guarantees the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. In no event shall DST Systems, Inc. be liable for any indirect, special or consequential damages in connection with subscriber's or others' use of the content.

Invest in 5G - Faster. Connected.

Mon, 04 Mar 2019 19:57:44 GMT

Invest in 5G - Faster. Connected.

5G is a technology sub-sector that I am very interested in.

If you have a cellphone, the chances are good that you are using 4G or your home wifi.

So what is 5G? It refers to the speed that data can move between devices - specifically wireless phones and gadgets. It will make 4G feel like dial-up internet of the ’9as.

5G will change the data-transit system like we haven’t seen before.

This blog that you loaded on your computer or phone probably took you 2-3 seconds to load. Snap your finger. That’s how fast 5G can load a webpage.

The WSJ shares that full songs will download to your phone in seconds, rather than minutes.

Imagine the possibilities.

There are plenty of services, technologies, and gadgets that can benefit from faster connections.

There’s competition already about who was (or will be) first. Phone carriers are already stating they have 5G capabilities.

According to the WSJ, most of the USA will not be able to experience 5G speeds just yet. The service is likely going to roll out as high-speed internet has historically. Large metropolitan areas will come first.

This is what makes the prospect of 5G as an investment concept exciting. This is likely not a flash-in-the-pan idea.

5G infrastructure like cell towers and the gadgets we use will require upgrades. The widgets inside of devices will need updates and changes.

Imagine streaming services and the users' wireless experience. I feel a demand for more data. Perhaps carriers will benefit as we learn to satiate our need for speed when we are outside our Wi-Fi networks.

I see TV providers moving more and more to delivery via the internet and streaming models. Bye-bye cable.

And I know. Do we need all of this speed?

Ask the hospital that has your records and connects to a complicated network. Ask the factory that is straining to keep up. Ask your phone carrier. Look at your own phone bill and data usage. Are you using more or less data than you did last year?

If you need a break, then turn your phone off and head out to the great outdoors. Reliable speed and connectivity will be waiting to greet you when you get home.

Learn How You Can Invest in 5G >>

Peter Mullin is an independent financial advisor registered through LPL Financial. He lives in Rogers, MN with his family. He was born and raised in St. Cloud, MN.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Stay optimistic; stay healthy

Wed, 20 Feb 2019 17:27:46 GMT

Time Heals and Habits Shape You 

Some Takeaways in this Article:

The iPhone has a Health App that you can check out today, if you have an iPhone. Samsung has a Health app, too. Keep track of your results and health.
Time can be an ally when it comes to investing. The end of 2018 did see negative results for the Dow Jones. But the 10-year return was about 10.25. Further, if you nudge forward one and a half months and measure your 10-year return since Feb. 18, 2019, then your average 10-year for the Dow Jones becomes 13.1%. That’s a decent change when you consider that we are talking about a 10-year average.
Did your portfolio or 401(k) or IRA experience a tough year in 2018? Things can change quickly in retracting markets. Ask me how you are doing. Not a client? Compare your IRA online with no commitment today by using my Guided Wealth Portfolio dashboard >> How do your investments compare?

“Most people overestimate what they can do in one year and underestimate what they can do in ten years.” (William Gates, Founder of Microsoft)

The above quote is great.

I share graphs and charts often with clients that can illustrate how an investment or portfolio has done over one year or ten years or periods. When a portfolio or the market has just taken a shellacking is the perfect time to remind clients how the portfolio has done over the long run.

Things can change quickly in retracting markets. Oh how quickly they change.

The Dow Jones, for instance, was down -5.63% in 2018. But if nudge forward one month and a half and measure how it’s done over the past 12-months (since Feb 18, 2019) the return is positive at 2.63 . That’s a bit more than an 8% rise – in 1.5 months.

Data from Morningstar, Inc.

Zoom Out; 10 Years with Dow Jones

2018 did see negative results for the Dow Jones. But are you aware that December 2018 ended positive for the 10-year? The 10-year number was about 10.25. Further, if you nudge forward one and a half months and measure your 10-year since Feb. 18, 2019, then your average 10-year for the Dow Jones is 13.1%.

In about one and a half months your returned over ten years increased by almost 3%. That is the difference of about one and a half months in the life of the Dow Jones.

History can be an encouraging friend.

Even though the Dow Jones was negative for the year in 2018 , the 10-year average return still posted a handsome return. Especially when compared to inflation. That’s a neat stat. At least I think so.

Time Heals and Habits Shape You 
What about you? What have you done in the past year? Or in the past ten years?

Did you make New Year’s resolutions? Are they intended to improve your life in 2019? Or beyond?

I’m a consultant. I ask a lot of questions...

I am also analytical. I like numbers. So I stay curious about my exercise routine. So when I was tinkering with my fitness app that I have used on-and-off since 2012, I had a revelation. I noticed I recorded 888 workouts. It has been quite a while since I observed the cumulative data on my app. (By the way, my ego is begging me to explain that I have missed recording quite a few workouts!)

Excuses aside...

What I think is cool is that it shows that my approximate number of calories burned as 418,191. That’s an average about 470 calories for every workout recorded.  

Did I enjoy my interval workout today? I appreciate its effects on my life and energy level. The sweating and commitment to finish were hard. But when I look at the data going back to 2012, I must say it feels fantastic. I may even try to record more of my workouts!

Just imagine how many steps and minutes you could record if you started tracking your walking day-to-day. If you have a smart phone it may be doing this for you already. I know that the iPhone has the Health app. It does track your approximate steps during the day.

What would you change if you could go back ten years and start again? Would you change your exercise routine? Would you spend less time at the office? Would you invest more?

It is normal to feel discouraged or unsure of the next year. But remember to zoom out and shoot for the stars as you look toward your future.

Future you is waiting. And I sure hope you enjoy the view!
Until next time, carry on.

Request a free look inside my book, False Financial Finish Lines. I’d be glad to e-mail it to you!

Data from Morningstar, Inc.

Peter Mullin is a financial consultant, currently registered through LPL Financial.

All performance referenced is historical and is no guarantee of future results.

All indices are unmanaged and may not be invested into directly. No strategy assures success or protects against loss.

Examples are hypothetical and not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing.

The Dow Jones Industrial Average is comprised of 30 stocks that are major factors in their industries and widely held by individuals and institutional investors.

When's the Right Time to Retire

Wed, 16 Jan 2019 20:34:27 GMT

Retirement is inevitable, but knowing exactly when to do so is often unclear. No matter when you actually begin your retirement, you’ll benefit from planning your post-work life as early as possible.

According to Gallup, the percentage of Americans who expect to retire at age 66 or older has risen dramatically, from 21% in 2002 to 41% in 2018. People expect to live and work longer than ever, so it’s never been more important to know when to stop working and how to carefully plan for the big event.

The Social Security full retirement age. For persons born in 1960 or later, the Social Security= full retirement age is 67. You will receive 70% of your monthly benefit if you retire at age 62, and 86.7% at age 65. However, you’ll get the maximum monthly benefit if you wait till age 70. These milestones might be an important consideration if your Social Security benefit will be a sizable portion of your retirement income.

Separate financial considerations from emotional ones. If you’ve successfully executed your long-term investment plan, you might be financially prepared to retire well before you are emotionally ready. Facing lifestyle changes at retirement might cause anxiety about how your life will evolve and how you’ll spend your time. It’s important to objectively evaluate your financial condition to support your decision-making, even as you contend with your feelings about retirement.

Many folks need more money than they think. It’s virtually certain that life will offer you one or more surprises along the way. You might find you will need more money than anticipated to fund a comfortable retirement. Creating a post-retirement budget can give you a general idea if your retirement savings alone can sustain you. As you near retirement age, it’s important to regularly review your savings plan to manage risk and help put yourself in a position to save the maximum amount possible.

Retirement impacts small-business owners. It’s not time to retire until you’ve worked out what to do with your business. If you plan to keep it in the family, retirement means executing a succession plan involving relatives or partners who have the knowledge and interest to keep your business going after you retire. Alternatively, you might want to sell the business, which requires extensive planning and preparation. Once sold, your planning should spell out how you’ll deploy your sale proceeds to support your retirement in the most efficient manner.

The common theme is planning. Whether you want to retire at 55, 85, or any time in between, planning is the key to a happy life in your golden years. As your financial advisor, it’s my job to help you periodically review your retirement options. Call me today for a meeting to evaluate whether the time has arrived to wrap up your work life and start enjoying your retirement years.

Source/Disclaimer:

This material was prepared for Peter Mullin and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.

Share Power: One big reason investors should embrace bear markets and pullbacks

ppmullin@gmail.com (Peter Mullin) — Mon, 07 Jan 2019 17:23:46 GMT

If your value is down: It feels like you are losing.  
If your value is up: It feels like you are winning.

In this article, I ask you this question, “What does your retirement portfolio’s value matter? And why should you embrace bear markets and pullbacks?”

SHARE POWER

You have a big factor working for you. Let’s call it “Share Power.” Think about this: When you invest what are you buying? (e.g., Mutual funds and stocks.)

When you invest, you are buying shares. If you bought ten shares (of ABC mutual fund) for $100 each in October, and the value of
those shares is priced at $80 in December, then you still own ten shares. In fact, you may have more shares if you reinvest dividends and capital gains. December can be a magical month where you automatically get to buy more shares through the simplicity of reinvesting. (*Disclaimer)

Mutual funds and stocks can pay dividends (profits) in December. (They also may pay dividends monthly or quarterly.) And many shareholders default to buying more shares.

Stocks may pay dividends quarterly, too.

"Your portfolio value may lose value during tumultuous months in the stock market. But unless you are folding, and abandoning your strategy, you may benefit in the long haul."

Shares represent your level of ownership in mutual funds and stocks.

Your portfolio value may lose value during tumultuous months in the stock market. But unless you are folding, and abandoning your strategy, you may benefit in the long haul.

Dividends can reinvest to buy more shares. When values go back up you will see the mathematical benefit.
Suppose you bought ten shares of ABC mutual fund for $100 each in October. The value goes down to $80.
But you end up buying one more share at $80 because you receive a dividend from this mutual fund, which you reinvest.
A year from now those shares are valued at $100 a share. That is the original price that you bought your initial ten shares.
But because you received your dividend and reinvested it, your value would now be $1100.
Congratulations. You saw an increase of $100. (*Disclaimer)

SUSTAINED ALLOCATION

Allocation is another word for a category. When investing you may be guided to invest in different groups of investments. And it can be fundamental to sustain this allocation over periods.

I wrote about this here >> Asset Allocation Explained

CONCLUSION: Use Share Power and Sustain Your Future Portfolio

So if you find your retirement portfolio value lower, then realize that you can buy more shares at a lower price.

Remember you may have lost dollar value in the short-term, but you can gain share power in the long-term.

I wrote about this in my book, False Financial Finish Lines. (Available on Amazon. Yes, a plug! A great way to visit many topics which I visit with clients about.)

Concerns about a Bear Market or Curious About Your Portfolio Fluctuations?

Schedule Phone Time With Peter

* Disclaimer : [ THESE ARE HYPOTHETICAL EXAMPLES AND ARE NOT REPRESENTATIVE OF ANY SPECIFIC SITUATION. YOUR RESULTS WILL VARY. THE HYPOTHETICAL RATES OF RETURN USED DO NOT REFLECT THE DEDUCTION OF FEES AND CHARGES INHERENT TO INVESTING. ]

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification and asset allocation do not protect against market risk.

All performance referenced is historical and is no guarantee of future results.

The payment of dividends is not guaranteed. Companies may reduce or eliminate the payment of dividends at any given time.

No strategy assures success or protects against loss.

3 Things investors can do in 2019

ppmullin@gmail.com (Peter Mullin) — Fri, 21 Dec 2018 19:39:03 GMT

Three things investors can do in 2019

Last year I saw about 58-million search ‘results’ when I looked for “market outlook 2018.” This year I searched for “market outlook 2019.”

I came up with 430,000,000 ‘results.’ Wow, there are more voices than ever trying to claim 15-seconds of headlines!

Where should you invest in 2019? It depends on your
circumstances, right?  

Here is what I think is dependable and objective information from LPL Financial’s Research: Fundamental: How to Focus on What Really Matters in the Markets.

A mantra that you hear among disciplined professionals is, “Stay the course.” Then you hear, “Sell high, buy low.”

Who’s right? If you are saving for the longterm, then I do think pullbacks are a time to add money to your investments, if you have money to invest.

Yes, it is possible that an investor may not utilize stocks in their portfolio at all. Or you may decide to go “all in” with a diversified stock portfolio. Regardless, there are three fundamental ideas you can practice.

All things seem to go in cycles. Weather goes in cycles. Markets go in cycles.

Throughout a period and these cycles, I suggest you focus on a few things that should be fundamental to your portfolio and approach to your broader wealth and health.

RAISE CASH

I think something that is becoming fundamental is Cash or Cash-like securities as an allocation. As interest rates are increasing, I am beginning to see interest rates in savings, money market, and cash-like holdings go up slowly.

•Better interest rates are good for your cash. But historically your low interest returns on cash will get beat-up by inflation – and taxes.
•But cash and your emergency reserves can act as an awning when bad portfolio weather strikes. This is important. An awning can guard you against getting completely soaked.

YES, STOCKS

Maintain a flexible approach in 2019. One thing is certain in 2019. You will see uncertainty. And I will be equipped to respond.

Here is how I responded to bouts of uncertainty during 2018; and I intend to do more of the same through 2019: 
•I called clients or used discretion to review suitability and adjust portfolios, if necessary 
•I incited the adage: Buy Low, Sell Why? 

•I encouraged clients to let their long-haul strategy act as our guide. •I encourage clients to remain diversified and tactical going forward.

•If you are retired or foresee an amount of dependency on your portfolio in the short-term, then consider your emergency reserve and cash, or cash-like holdings in your total portfolio. Consider increasing your cash/cash-like holdings, as needed.

MENTAL RESILIENCY

Mental resiliency is another fundamental. Are you retired? Continue to exercise, eat a balanced diet, and exercise your brain.
One way to respond to persistently negative headlines and noise is by taking three deep breaths. Try it. You may find that those three deep breaths bring you back to a state of calm. You may just reach for your remote and decide to turn the TV off for the night.

I enjoy meditation, personally. It’s something that is coming back into style after 1000’s of years of being out of style. Mindfulness is about snapping back to a neutral state – like a rubber band – without responding to a stressor.  

I’m realistic. I can’t imagine what it feels like to be retired, dependent on your portfolio to live comfortably, and still maintain the confidence that you will be okay after you see your value erode down in the short-term.

Take three deep breaths. Tune out the noise. Do things you enjoy doing. Enjoy the confidence that can come from delegating your portfolio to someone with expertise.

Remember: Time typically favors longterm investors.

And one thing is especially certain in todays news cycle : Change is constant.

The Dow Jones has seen positive results with seeming ease in 2017. The Dow Jones turned the dial to “Volatility” in 2018. I’m looking forward to guiding you through 2019 and beyond, Dear Clients.

Until then, Carry on!

[ ARE YOU A CLIENT CANDIDATE? ]

[SCHEDULE A PHONE CONVERSATION ]

***

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non- diversified portfolio. Diversification does not protect against market risk.

All performance referenced is historical and is no guarantee of future results.

All indices are unmanaged and may not be invested into directly. No strategy assures success or protects against loss.

Should You Convert to a Roth IRA?

Tue, 04 Dec 2018 00:00:00 GMT

"Whether an investor benefits from converting assets within a traditional IRA to a Roth account may depend on the amount of time he or she plans to leave the assets invested, estate planning strategies, and his or her willingness to pay the federal income tax bill that a conversion is likely to trigger."

Should you convert all or a portion of your traditional IRA assets to a Roth account? The answer may depend on the amount of time you plan to leave the assets invested, your estate planning strategies, and your willingness to pay the federal income tax bill that a conversion is likely to trigger.

Two Types of IRAs

Each type of IRA has its own specific rules and potential benefits. These differences are summarized in the table below.

Conversion: Potential Benefits . . .

Potential benefits of converting from a traditional IRA to a Roth IRA include:

A larger sum to bequeath to heirs. Since lifetime RMDs are not required for Roth IRAs, investors who do not need to take withdrawals may leave the money invested as long as they choose which may result in a larger balance for heirs. After an account owner's death, beneficiaries must take required minimum distributions, although different rules apply to spouses and nonspouses.
Tax-free withdrawals. Even if retirees need withdrawals for living expenses, withdrawals are tax free for those who are age 59½ or older and who have had the money invested for five years or more.

. . . As Well as a Potential Drawback

Taxes upon conversion. Investors who convert proceeds from a traditional IRA to a Roth IRA are required to pay income taxes at the time of conversion on investment earnings and any contributions that qualified for a tax deduction. If you have a nondeductible traditional IRA (i.e., your contributions did not qualify for a tax deduction because your income was not within the parameters established by the IRS), investment earnings will be taxed, but the amount of your contributions will not. The conversion will not trigger the 10% additional tax for early withdrawals.

Which Is Right for You?

If you have a traditional IRA and are considering converting to a Roth IRA, here are a few factors to consider:

A conversion may be more attractive the further you are from retirement. The longer your earnings can remain invested, the more time you have to help compensate for the associated tax bill.
Your current and future tax brackets will affect which IRA is best for you. If you expect to be in a lower tax bracket during retirement, sticking with a traditional IRA could be the best option because your RMDs during retirement will be taxed at a correspondingly lower rate than amounts converted today. On the other hand, if you anticipate being in a higher tax bracket, the ability to take tax-free distributions from a Roth IRA could be an attractive benefit.

There is no easy answer to the question "Should I convert my traditional IRA assets to a Roth IRA?" As with any major financial consideration, careful consultation with a financial professional is a good idea before you make your choice.

Source/Disclaimer:

1 IRA account holders (both traditional and Roth) may avoid the 10% additional federal tax on withdrawals before age 59½ only if they meet specific criteria established by the IRS. See Publication 590-A for more information.

Required Attribution

Because of the possibility of human or mechanical error by DST Systems, Inc. or its sources, neither DST Systems, Inc. nor its sources guarantees the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. In no event shall DST Systems, Inc. be liable for any indirect, special or consequential damages in connection with subscriber's or others' use of the content.

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Aging Gracefully: Loving our family and ourselves through life

ppmullin@gmail.com (Peter Mullin) — Tue, 27 Nov 2018 16:35:42 GMT

Aging Gracefully: Loving Our Family and Ourselves Through Life.

By Peter Mullin

November is Alzheimer’s Awareness Month. Peter Mullin writes about “Aging Gracefully,” in a chapter of his latest book, False Financial Finish Lines . Peter grew up in Saint Cloud, Minn. He brings his expertise as a professional together with his personal experiences to this idea of aging through retirement. The heart of “Aging Gracefully” is about accepting one another - including ourselves - as we are.

President Ronald Reagan is famous for many things. A part of what became his story after his presidency is his battle with Alzheimer’s. He wrote a letter where he said his thanks and farewell to the nation while he still could do so. What a hard letter to write. I can’t imagine sitting down. I imagine Reagan's loyal spouse, Nancy, at his side. He writes succinctly. He wants to tell the nation that he is not afraid. He writes, “When the Lord calls me home, whenever that may be, I will leave with the greatest love for this country of ours and eternal optimism for its future. I now begin the journey that will lead me into the sunset of my life.”

Good for him. I’m sure that letter had to leave him with a sense of peace. And it certainly did bring awareness to the condition that confronts many Americans. We likely all know someone who has suffered or suffers some form of memory illness.

My Grandpa Tabor saw Alzheimer’s Disease set-in during at least his last decade of life. He treated those with mental illness. He retired late in his life. Grandma spent his remaining years shielding him from minor mistakes at first. Those minor social miscues became significant.

Once grandpa walked off at a family dinner. The local police helped us find him blocks away. Eventually, Grandpa moved to the care of a memory unit at a nursing facility. I remember seeing him there. A smile on his Polish face. (He loved that he was Polish and pierogi and his Catholic-Polish Pope, Saint John Paul II.) There was still love in his heart.

It was tough to see the door shut to Grandpa’s unit when we left. It was like watching the door shut on me for the first time, as I dropped my son off at daycare. We were helpless. He was under the care of providers and his Lord. I took another peek through the narrow window on the door to the memory unit. Grandpa was already asleep in a recliner. By the way, these changes for Grandpa didn’t come about with ease.

The strain of being a caregiver wore on Grandma, I think. She was strong up to Grandpa's last day and at his funeral. Then something changed. Grandma was diagnosed with Parkinson’s. Then came dementia. My grandma, with the biggest heart in the world, was receiving care.

First by drop-by caregivers. Then the caregivers were present 24/7.

Grandma continued to live in her home throughout her remaining years. The stories remained around her, and the visits continued. Often the visits and the photos our family continued to share with her were enough to share our love. She kept the photos of her great-grandchildren next to her recliner.

Alzheimer’s Disease, Parkinson’s, dementia, and ill health in general, can afflict those we love. It forces us outside our comfort zone. Any illness –– be it mental or physical –– is difficult and calls for an ocean of grace.

I write about the late years of our lives because it’s helpful to begin with those final years in mind. How would you want to live? What would you want your family to know? What would you want to say to your community and loved ones if you no longer knew who they were?

When we imagine retirement from our early years through our 50’s and 60’s, we likely imagine our active years. We’ll catch up with friends. We’ll play 36-holes of golf and have an early dinner. We’ll chase our grandkids around wherever they may be. We’ll reignite that passion we had for music, crafts or sports. We’ll discover new hobbies like painting.

While you’re busy living, consider planning for your late years, too.

Now, I have no idea what it takes to age gracefully. I know all sorts of folks that lead examples of what aging gracefully might look like. I’ve listened to some of those from The Greatest Generation. I’ve heard inspirational stories about seniors on TV. A great tale teaches aging. Tuesdays with Morrie by Mitch Albom is about a man who becomes ill with Lou Gehrig’s Disease. An old student who was caught up in the fast pace of life reconnects with his teacher. Morrie speaks candidly about life, joy, pain, and relationships.

So strive to age gracefully. Then write to me when you find out what that entails.

I have some ideas of what it means. It means deciding and reaffirming early and often that you will accept help from loved ones. That you will cherish the opportunity to relate your experience all who will listen. That you will give up your drivers license.

It means realizing that you have immeasurable worth.

Significant excerpts of this article are taken from, False Financial Finish Lines, a book by Peter Mullin. It is published with permission. Please contact Peter Mullin for permission to copy or distribute.

Peter Mullin, Financial Author and Speaker

ppmullin@gmail.com (Peter Mullin) — Tue, 18 Sep 2018 16:04:18 GMT

Peter Mullin, Financial Author and Speaker

Peter Mullin, Financial Author and Speaker

Peter Mullin was born in Saint Cloud, MN. He attended Saint John’s University (Collegeville, Minn.) where he developed his passion for storytelling and an entrepreneurial spirit.

Peter is an Eagle Scout from Troop 106 in Saint Cloud, Minnesota. He grew up in a family of 13 people. Have you ever heard of a triple-decker bunk bed?

He and his wife are members of Mary Queen of Peace Catholic Church in their town of Rogers. They serve as members of the Stewardship Committee. They support education, animals, and social causes through their giving.

Peter and his wife spent three years in Kansas City. They soaked up the best BBQ and observed the Kansas City Royals win the World Series. During this time Peter flew back-and-forth to build up his financial consulting practice. They brought their first and only child, Eli, back to Minnesota with them from Kansas City.

Aside from cooking and writing guitar songs, Peter is an author. He is an acute observer of life. Peter has authored two books. Peter’s second book, False Financial Finish Lines , evokes his attitude toward life. Life is like a rolling river, and indeed about the journey. There are many stops along the way that can tempt us to put our feet up. Or worse. Life’s moments can tempt us to stop growing. Typically when we push a little further, we can discover an enriching purpose. Peter has a passion for communicating sound and simple financial advice. He strives to relate it to his reader’s life.

Peter has been a financial advisor since 2008, currently registered with LPL Financial. Peter Mullin has collected a treasure trove of stories. He has seen how life changes. These crossroads in life are where critical choices can come together to form new and exciting experiences.

He believes sound finances are a resource that can be accrued through healthy habits. Money can enable families and businesses to live a purposeful and prosperous life.

www.mullinwealth.com

Securities offered through LPL Financial. Member FINRA/SIPC.

A history of Compounding Interest

ppmullin@gmail.com (Peter Mullin) — Thu, 21 Jun 2018 17:06:43 GMT

A history of Compounding Interest:

An Innovative Investment Idea

Compounding return .

It was an idea from Babylonian times … or earlier. It started with agriculture. The word ‘interest’ in multiple languages can translate to livestock. Specifically, it can refer to giving birth, or the multiplication of livestock (Source - 2).

In a Biblical parable, a master gives three servants the same amount of coins. Two come back with more than they received. The third servant buries his coins in the ground. The third servant says, “I was afraid I would lose your money, so I hid it in the earth. Look, here is your money back.” (Matthew 25:15)

The master tells this third servant, “Why didn’t you deposit my money in the bank? At least I could have gotten some interest on it.”

I think compounding interest is one of the most innovative financial ideas we have. The pursuit of a compounding rate of return is a part of many financial planning scenarios.

Compounding interest has been around for centuries. And over time it can have a positive impact on your wealth.

Here is how compounding interest can show up in your long-haul portfolio results.

Start by investing $10,000. Invest $500 every month for the next 240 months (20 years). Assume you receive 6% annually.

You will have invested $130,000 of your money. Like two of the servants in the Biblical parable, you realize a return on your capital. You could have about $259,894. Using the 4% Retirement Income Rule , you could have about $867/month to spend in retirement.

1 - Homer, Sidney and Richard Sylla. A History of Interest Rates . 1991. New Brunswick: Rutgers University Press.

2 - Goetzmann, WIlliam. Financing Civilization

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

All investing involves risk including loss of principal. No strategy assures success or protects against loss.

Peter Mullin is a Registered Representative with LPL Financial.

Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC

My Take: The 4% Retirement Income Rule

ppmullin@gmail.com (Peter Mullin) — Fri, 15 Jun 2018 15:20:08 GMT

Imagine you are running a marathon. At mile 20, your legs start to feel like jello, you can’t concentrate, and you feel as though you are running in slow motion. You have hit the dreaded “wall.”

The energy has been zapped from your body. And you have 6.2 miles to go…

Running out of energy with miles to go can feel like running out of money in your golden years.

The Perfect Storm

A withdrawal rate in retirement is like a race pace in a marathon. Each person is a little different, each mile (or year) is different, and you need to adjust.

Just imagine it’s 2022. You have saved habitually. Your portfolio has grown nicely. Retirement is calling.

You expect you’ll take 4% from your $2 million portfolio (that’s $80,000) your first year. Then bad portfolio weather visits two months before you retire…

Your $2 million is now zapped down to $1.4 million. What if you lose 10% more? And you planned on taking out $80,000 to live on your first year…

When a portfolio “hits a wall” in retirement you may need to reevaluate and recommit to your long-haul strategy with some adjustments (Guyton & Klinger 2006; Pfau 2011).

[This is a hypothetical example and is not representative of any specific situation. Your results will vary. The hypothetical rates of return used do not reflect the deduction of fees and charges inherent to investing.]

Twist on Simple

But investors prefer simple answers.

How much can you withdraw from your portfolio in retirement? Have you heard of the ‘4% Rule?’

In 1994, William Bengen demonstrated and generally concluded that an ~4% withdrawal from retirement portfolios may be prudent. You begin with 4% of your portfolio your first year. Then add inflation to that first withdrawal amount each year – kind of like social security. He considered bad portfolio weather, age, and portfolio construction.

Jonathon Guyton & William Klinger added to this research and provided rules that suggest a more flexible approach to retirement income (Guyton & Klinger, 2006).

Bengen does conclude that a clients circumstances need to be reviewed before being guided toward a withdrawal rate (Bengen 1994). Read my blog post, “ Investing: Rule of Thumb .”

A strategy for retirement spending has many factors to consider.

With all of this said, here are some questions that can help guide your retirement income strategy. I strongly encourage you to discuss your circumstances with a professional.

Please don’t hesitate to e-mail me with questions.

Retirement Income Assessment:

Five (5) Questions That Can Influence Your Retirement Income

How to use this assessment: In response to each question below your portfolio may adjust one way or another.

So, here’s a guide as to how your portfolio may potentially adjust:

Grow : You may wish to have your portfolio emphasize growth over preservation. Balance : You may wish to have your portfolio balance growth with preservation.

Risk + : Consider pros/cons of increasing your portfolio(s) risk.

Risk – : Consider pros/cons of decreasing your portfolio(s) risk.

Flex/Save+ : Understand that you may require flexibility when living off your portfolio. Flexibility may mean times where you should consider reducing your spending from the prior year (Guyton & Klinger, 2006). Saving more before retirement may help you when flexibility is required. Saving more may also be advised when things like reduced risk is preferred over growth, for example.

[Note: Call on a professional to better understand what growth, balance, Risk + or – may look like.]

Five Questions:

Age: How old will you be when you retire? Age is a significant variable in your decision making process.
1. Assume I retire after 65. Balance, Risk –
2. Assume I retire before 65: Grow, Risk +, Flex/Save+
Longevity: How long will you live?
1. Assume I have 40 years or more left to live: Grow, Risk +, Flex/Save+
2. Assume I have 30 years or less to live: Balance, Risk –
Risk Tolerance: What’s your honest risk tolerance?
1. Higher Risk Tolerance: Grow, Risk +, Flex/Save+
2. Lower Risk Tolerance: Balance, Risk –, Flex/Save+
Relative Dependency: How much of your living expenses will you expect your portfolio withdrawals to pay for?
1. Majority of Expenses: Balance, Risk –, Flex/Save+
2. Moderate to Low: Grow, Risk +
Legacy: How important is it that you pass along a legacy to the next generation(s)?
1. High Legacy Aspirations: Grow, Risk +, Flex/Save+
2. Moderate to Low Legacy Aspirations: Balance, Risk –, Flex/Save+

[These are hypothetical examples and is not representative of any specific investment. Your results may vary.]

Get Started

The best place to get started is by taking an inventory of your current assets. Contact us for your free checklist that can walk you through this initial step.

***

For Scholarly Reference

Bengen, William. “Determining Withdrawal Rates – Using Historical Data.” Journal of Financial Planning . October 1994.

Guyton, Jonathon & Klinger, William. “Decision Rules and Maximum Withdrawal Rates.” Journal of Financial Planning. (March 2006).

Pfau, Wade. “Which Retirement Spending Strategy Is Right For You?” Blog, Retirement Researcher . November 2016.

Pfau, Wade. “Getting on Track for a Sustainable Retirement: A Reality Check on Savings and Work.” Journal of Financial Planning. (October 2011).

***

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.

No strategy assures success or protects against loss.

***

Peter Mullin is a financial advisor with Mullin Wealth Management in the St Cloud, MN area. Visit www.mullinwealth.com to learn more.

Investing: Rule of Thumb

ppmullin@gmail.com (Peter Mullin) — Tue, 15 May 2018 00:00:00 GMT

Investing: Rule of Thumb

Is a rule of thumb the prudent way to guide your retirement?

Rules of thumb have been related to the public to educate and guide investors choices. Rules of thumb make an effort to simplify things.

Don’t be fooled. I think a rule of thumb is namely like a billboard or newspaper advertisement. There’s usually more information to consider.

Can a rule of thumb apply to you? Certainly. Before going further, please consider the following:

Here’s the definition from Merriam-Webster (merriam-webster.com) : Rule of Thumb: 1. a method of procedure based on experience and common sense; 2. a general principle regarded as roughly correct but not intended to be scientifically accurate.

It’s that part about, “not intended to be scientifically accurate,” that causes me to pause.

Rules of Thumb in personal finance have mostly been born out of a desire to motivate and educate.

When we have a sick child we can refer to the web for general information as a guide. Nurse lines exist today for the same reason. However, when our child is sick and we need trusted help, we’re advised to go to the doctor and the ER if it’s an emergency.

The trouble with a Rule of Thumb for finance or healthcare or any area of life is this: the many disclaimers that are important to understand.

Unfortunately, they’re also easy to overlook or ignore…

The answer(s) you’re looking for often depend on your situation. Stay tuned for my next blog post, “Pushing Play on Retirement.”

***

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Investing involves risk including loss of principal.

Market Slumps? You Got This!

ppmullin@gmail.com (Peter Mullin) — Tue, 24 Apr 2018 18:58:16 GMT

Market Slumps? You Got This!

How do you get perspective when it feels like your portfolio is throwing tantrums and every early morning headline appears to throw the Dow Jones into a new tantrum?

I do understand how investors can feel. I ask the same questions. My reflex brings me back to fundamentals. Since the end of January 2018, US and global markets have felt jitters, tantrums, and a few earthquakes.

I jump back to fundamentals. Investors may not so quickly adapt.

Coach John Wooden was UCLA’s basketball coach beginning in 1948. He won 10 NCAA Championships within 12-years. (1)

You know what I’ve heard was his first “drill” for his team each season? He taught them how to pull up their socks and tie their shoes. 2 He started with this explaining that you can’t play basketball if you don’t take care of your feet.

How do you get outside of the negative headlines and recommit to investing when your wits are being tested?

I suggest you go back to fundamentals. Get perspective. So what fundamentals am I speaking of?

-Update your risk tolerance to determine if it has changed.
-Ask how your portfolio(s) strives to align your appetite for risk with your goals.
-Diversify
-Be bold and invest more money – as you’re able – when your portfolio goes low.

-Stick with your strategy, of course!

I write about this stuff often. So try this previous blog on for size: Should you be taking less risk now?

Schedule time to chat with me.

***

1- http://newsroom.ucla.edu/releases/john-wooden-dies-84109
2 - http://newsroom.ucla.edu/stories/wooden-shoes-and-socks-84177

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To

determine which investments may be appropriate for you, consult your financial advisor prior to investing.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

Peter Mullin is a Registered Representative with LPL Financial.

When does it become more Convincing to Invest than payoff debts?

ppmullin@gmail.com (Peter Mullin) — Mon, 02 Apr 2018 14:50:00 GMT

When does it become more Convincing to invest than payoff debts?

Should you be investing that extra money you have or use it to pay down debts?

I’ve written about debt payment strategies before. See: How to Prioritize Your Debt: What debt should you payoff first? Should you pay off loans?

Four things for this ‘Invest or Payoff Debt’ Conversation :

I’ll say that a good rule of thumb is to payoff short-term debts that have a 4-6% or more before investing.
Does the potential investment have reasonable potential to make more than your debt will cost you?
It depends on the timeline for your investments. If you’re investing for 10-years or less you should probably assume less risk, which likely assumes a lower rate of return. If your timeline is longterm, then it becomes more convincing to invest because you probably can assume more risk.
One word: Risk. Risk is hard to blend into a math problem that is typically applied to this question. You could say IF I can make 6% on investments over 20-years, THEN I should invest instead of paying off a 4% auto loan. This doesn’t account for the risk of losing your job, experiencing an unexpected expense (LINK TO 7-Rules of the Road ), or the inherent risks of investing your money.

Remember, my feeling regarding “Rules of Thumb” are that they are good for general education and as a guide. But they shouldn’t be applied as exclusive truth to your circumstances.

Consider the whole picture when determining how the pieces of your Prosperity Puzzle fit together.

***

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Saving for our Grandchildren's & Children's College Education Got a Bit More Exciting in 2017

ppmullin@gmail.com (Peter Mullin) — Thu, 01 Mar 2018 00:00:00 GMT

...In Case You Missed It

Sometimes, we need a nudge to help ourselves financially. In 2017, Minnesota did just that for college bound families.

College is expensive. The growth in tuition is right up there with healthcare expenses for the past 2 decades. It’s a nuisance.

So maybe you desire to help alleviate some of the costs for your children/grandchildren.

There is one way to be proactive. Dedicate some of your money to College Savings 529 plans.

Why?

-You put aside money that is now earmarked for your children/grandchildren(s) college education

-Money can grow tax deferred

-Money can be spent on qualified expenses for college
-As a parent, if you have a high income and/or a good sum in assets in non-retirement accounts/savings, then you may be expected to pay more out of pocket. (A 529 can be a good place to direct some of these assets.)

And Now in Minnesota

-You may be eligible for a tax deduction or tax credit when you fund a College Savings 529 plan. (Reference: savingforcollege.com)

There’s nothing like a helpful nudge to help you in the pursuit of your financial goals.

***
The information provided is not intended to be a substitute for specific individualized tax planning or

legal advice. We suggest that you consult with a qualified tax or legal advisor.

Investing involves risk including loss of principal.

5 Oversights by High Earners That Can Hurt Your Retirement

ppmullin@gmail.com (Peter Mullin) — Fri, 29 Dec 2017 19:13:21 GMT

1. Maxing out 401(k) & Stopping : If you make $200,000 or $30,000 you can invest the same $18,500 (plus $6000 more after you turn 50) in your 401(k) in 2018 (IRS, IR-2017-177, Oct. 19, 2017). The trouble is high earners tend to not max out their 401(k). If they do then they stop there. Keep going.

Open a regular investment account. You may not receive much in the way of deductions, but if you're trying to save upwards of 10-12x (or more) your salary by retirement then this is one way to help.
Invest in this additional account on a monthly or regular basis. Again, do this in addition to maxing out your 401(k).
Now you have two places with money in them. One is for any rainy day. The other is for retirement. Combined you'll be glad you have them.

2. Withholding Too Little : If your spouse is working alongside you, then it may be time to speak with a CPA or your tax professional. Paying too little in income tax can cause a penalty. Guess what can help mitigate taxes? A 401(k) contribution! (See #1)

3. Prioritizing Debt Instead of Cash Flow : If you could make $30 on every hundred or $4 on every hundred which would you pursue? Certainly the $30, right? Well what would you assume to do first? Pay off a car loan with a 4% rate? Or invest money in retirement that can yield you a deduction; potentially saving you the equivalent of $30 in tax for every $100 invested?

Society should thank high earners. They make mistakes.
Physicians, Administrators and Professionals all are guilty of wanting to eliminate debt. And why not? You have the money to do so. But the problem of debt ought to be solved from a holistic vantage point.
We think weighing the net benefits of where your money goes is a part of your Prosperity Puzzle .

4. College Planning : High earners can be brutalized through the FAFSA system.

A high weighting is placed on parent's income.
In 2018, I think one of the options for college planning for high earners likely has more to do with encouraging great grades, participation in extracurricular activities and the relentless pursuit of scholarships $250, $1000, and $5000 at a time.
The other thing high earner parents need to consider is proper funding for college.
If appropriate, consider using 529s and additional investment options.

5. Living Like There's No Tomorrow:

Get an estate plan via an estate attorney. Your legal professional and financial professional can help you see the whole puzzle.
Audit your group or personal insurance to assess that it reasonably meets needs now and potentially in the future.
Job changes and disabilities and family emergencies can cause reductions in income. Shore up your family savings account. *That regular investment account comes in handy here, again.

New to this high earner thing? Have questions? Feel free to take the 15-minute challenge. Give us 15-minutes alone with your financial statements. We’ll give you a bullet-point summary of our findings.

***

Peter Mullin is an LPL Financial Advisor with Mullin Wealth Management in the St Cloud, MN area a resident of Rogers, MN. Visit www.mullinwealth.com to learn more.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.

Investing involves risk including loss of principal.

Running out of water (money) in retirement

ppmullin@gmail.com (Peter Mullin) — Sat, 14 Oct 2017 00:00:00 GMT

Perhaps you have senior parents who have amassed good relative wealth? Yet you can’t coach them to spend much on themselves.

The habits that help you develop wealth likely follow you into retirement. It’s this concept that I share with my clients.

Then of course there’s the virtue of moderation. Funny how some of the same habits like persistent saving & prudent spending suddenly become a problem when you retire, huh?

Retirement Foreshadowing

The story of our camping trip to Voyageurs National Park is likely foreshadowing for me. It helps me realize some traits about ourselves.

So maybe it’s worth another look at positioning your assets within your retirement portfolio so that we can strive to secure lifelong income from it?

Dear Clients, I think its also important to bring this thought into social security claims. When is it the right time to claim social security?

We don’t need to reinvent the wheel. We need to acknowledge potential challenges and select reasonably reliable solutions.

Living in retirement brings many changes. It’s natural to wonder what it will be like. After a long road I wish for you to feel well informed and financially prepared.

Camping and water analogies aside, retirement is a life to look forward to. Don’t strive to reinvent the wheel. Strive for a comfortable retirement by becoming an informed investor.

***

Benartzi, Previtero, and Thaler. “Annuitization Puzzles.” Journal of Economic Perspectives. Fall 2011.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Peter Mullin’s Blog via Mullin Wealth Management

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Fear is Good

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“The pessimist complains about the wind. The optimist expects it to change. The leader adjusts the sails.” - John Maxwell

Remember September

Things are about to get interesting

The Pursuit of a Comfortable Retirement - 7 Rules of the Road

Money In: Money Out

Spend time learning about what money will come in. Then study what goes out. Study your primary checking account. Look at the past 12 months.

This can give you a good idea of what goes out.

Live below your means

Good habits tend to follow us around. It’s never too late to start. Be careful to spend less than what comes in. Also, enjoy that mocha once in a while.

Remember, It’s Always Something

Dentist bills, car repairs, appliances…you will always have surprises.

Keep an emergency savings reserve that is sufficient for you.

Don’t Rationalize

Be mindful the next time you make a significant purchase. Too often we buy first and justify later. Marketers are aware of this human behavior. Do research, write out a pros/cons list, and then wait before buying.

Two Things: Cost of Living & Taxes

The price of stamps, bananas and healthcare keep increasing. Much money

that comes in during retirement is taxed. This is a key reason to learn now how taxes and inflation will affect the value of your money throughout retirement.

Invest Accordingly

Compounding and math can work in your favor. Consider adopting a long-haul mentality. Importantly, know what to expect. Delegate what you don’t have the time or passion for – like investing. Inquire about costs, best practice, and how available your money will be.

﻿ You Can’t Fit Everything on a List

Your circumstances are unique. Your strategy ought to reflect this.

***

Know the benefits of regular investing

PETER MULLIN RECOGNIZED AS ONE OF LPL FINANCIAL’S TOP FINANCIAL ADVISORS

Create a comfortable financial foundation with ideas like these

5 Oversights of High Income Earners

1. Maxing out your 401(k) & Stopping There:

2. Neglecting Savvy Tax Planning

3. Eliminating Debt Instead and Neglecting Opportunity Costs and Tax Gains:

4. You Forget about College Planning: High earners can be brutalized through the FAFSA system. Why?

5. Living Like There's No Tomorrow: Save more. Seriously. There are folks making half as much as you do – and they save twice as much as you do, and more.

SECURE Act 2.0 An Overview

New Distribution Rules

New Accumulation Rules

More Highlights

January Client Letter - Predictions do not make for great investment guidance

One Year Forecasts ≠ Investor Guidance 2024

What’s going to happen this year with the election cycle?

Running out of water (money) in retirement

Retirement Foreshadowing

Financially Savvy at Six Figures

Financially Savvy at Six Figures

Steps to Take

Review Your Budget

Target Unproductive Debt

Build Your Emergency Fund

Don't Forget About Taxes

Don’t Forget Your Retirement Plans

Move Forward Confidently

Good news three ways - let’s go fish!

Here are the three things that I am seeking to take advantage of or looking for next:

Is a recession next?

En core from May 2023

You Can’t Fit Everything on a List

5. Living Like There's No Tomorrow:
Save more. Seriously. There are folks making half as much as you do – and they save twice as much as you do, and more.