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We're Invested

Retirement, investments, financial planning for every stage of life—learn about it all here at Invested,
a blog from your Wealth Management Advisors at Kirtland Financial Services.


Investments
The markets are offering a wild ride for investors recently. But that doesn’t necessarily mean it’s time to duck and cover.
  
Be Willing To Take Advantage of Market Downturns
Anyone can look good during a bull market. Smart investors are prepared to weather the inevitable rough patches, and even the best aren't successful all the time. When the market goes off the tracks, knowing why you originally made a specific investment can help you evaluate whether those reasons still hold, regardless of what the overall market is doing.

If you no longer want to hold an investment, you could take a tax loss, if that's a possibility. Selling locks in any losses on an investment, but it also generates cash that can be used to purchase other investments that may be available at an appealing discount. Sound research might turn up buying opportunities on stocks that have dropped for reasons that have nothing to do with the company's fundamentals. In a down market, most stocks are available at lower prices, but some are better bargains than others.

There also are other ways to reap some benefit from a down market. If the value of your IRA or 401(k) has dropped dramatically, you likely won't be able to harvest a tax benefit from those losses, because taxes generally aren't owed on those accounts until the money is withdrawn. However, if you've considered converting a tax-deferred plan to a Roth IRA, a lower account balance might make a conversion more attractive. Though the conversion would trigger income taxes in the year of the conversion, the tax would be calculated on the reduced value of your account. With some expert help, you can determine whether and when such a conversion might be advantageous.

Continuing To Invest May Help You Stay On Course
In the current market environment, the value of your holdings may be fluctuating widely — and it's natural to feel tentative about further investment. But regularly adding to an account that's designed for a long-term goal may cushion the emotional impact of market swings. If losses are offset even in part by new savings, the bottom-line number on your statement might not be quite so discouraging. And a basic principle of investing is that buying during a down market may help your portfolio grow when the market turns upward again.

If you are investing a specific amount regularly regardless of fluctuating price levels (as in a typical workplace retirement plan), you are practicing dollar-cost averaging. Using this approach, you may be getting a bargain by continuing to buy when prices are down. However, you should consider your financial psychological ability to continue purchases through periods of fluctuating price levels or economic distress; dollar-cost averaging loses much of its benefit if you stop just when prices are reduced. And it can't guarantee a profit or protect against a loss.

If you can't bring yourself to invest during this period of uncertainty, try not to let the volatility derail your savings program completely. If necessary to help address your concerns, you could continue to save, but direct new savings into a cash-alternative investment until your comfort level rises. Though you might not be buying at a discount, you could be accumulating cash reserves that could be invested when you're ready. The key is not to let short-term anxiety make you forget your long-term plan.
 
A volatile market is never easy to endure, but learning from it can better prepare you and your portfolio to weather and take advantage of the market's ups and downs. For more information on these strategies, contact us. We're here to help.

Book your appointment with a Wealth Management Advisor today by calling 505-254-4363 or online at KirtlandFCU.org/Schedule.

 
All investing involves risk, including the possible loss of principal, and there is no guarantee that any investment strategy will be successful. Although there is no assurance that working with a financial professional will improve investment results, a professional can evaluate your objectives and available resources and help you consider appropriate long-term financial strategies. To qualify for the tax-free and penalty-free withdrawal of earnings (and assets converted to a Roth), Roth IRA distributions must meet a five-year holding requirement, and the distribution must take place after age 59½ (with some exceptions). Under current tax law, if all conditions are met, the account will incur no further income tax liability for the rest of the owner's lifetime or for the lifetime of the owner's heirs, regardless of how much growth the account experiences.

Education COVID-19

On March 27, 2020, Congress passed the CARES Act, the largest economic stimulus bill in the history of the United States, in response to the coronavirus pandemic.1 Included in the legislation are new rules for student loan relief that supersede the rules that were announced only a week earlier by the Department of Education. For more information on both sets of rules, visit the federal student aid website.

What new relief is being offered?
The new legislation provides a six-month automatic payment suspension (administrative forbearance) for any student loan held by the federal government. This six-month period ends on September 30, 2020. Borrowers do not need to contact their loan servicer to request a suspension; they will be automatically placed in administrative forbearance. Under the previous policy, the payment suspension was for two months and it was not automatic; borrowers had to contact their loan servicer to opt in.
  
The new stimulus legislation also provides a temporary incentive for employers to pay down their employees' student debt balances. Specifically, employers are able to contribute up to $5,250 toward an employee's student debt through December 31, 2020 without any tax consequences for the employee.
  
What loans qualify for the suspension?
Only student loans held by the federal government are eligible. This includes Direct Loans (which includes PLUS Loans), as well as Federal Perkins Loans and Federal Family Education Loan (FFEL) Program loans held by the Department of Education. Private student loans are not eligible.
  
Will interest continue to accrue during the suspension period?
No. Interest will not accrue during the six-month suspension period. The interest rate is being set at 0%. Also, due to the Department of Education's earlier student loan relief rules, the interest rate on all eligible
federal student loans is effectively set at 0% from March 13, 2020 through September 30, 2020.
  
What happens with auto-debit payments?
Auto-debit payments are suspended during the administrative forbearance period. Any auto-debit payments processed between March 13, 2020 and September 30, 2020 can be refunded. Borrowers should contact their loan servicer if they wish to request a refund.
  
Can borrowers keep making their student loan payments?
Yes. Borrowers can choose to keep making their monthly student loan payments during the six-month suspension period if they wish. Borrowers should contact their loan servicer to opt out of the administrative forbearance period and continue their auto-debit payments. Borrowers also have the option to make manual (i.e., not auto-debit) payments during the administrative forbearance period.
  
During this period of 0% interest, the full amount of a borrower's payment will be applied to principal (once all interest accrued prior to March 13, 2020, is paid). Borrowers can also choose to make partial payments during the suspension period.

How will the suspension period affect the Public Service Loan Forgiveness Program?
Under the Public Service Loan Forgiveness (PSLF) Program, borrowers who work in an eligible public service job and make 120 on-time student loan payments are eligible to have the remaining balance on their federal Direct Loans forgiven.2 Under the new legislation, the six-month freeze on student loan payments will not affect the 120-month running period for purposes of the PSLF program. In other words, each month of the suspension period will still count toward a borrower's 120-payment tally, even if the borrower does not make any payments during the six-month period.

How can borrowers contact their loan servicer?
A loan servicer is the company that handles a loan's billing and provides related services. Borrowers who want to contact their loan servicer for any reason should try to do so online or by phone. For borrowers who do not know who their loan servicer is or how to contact them, they can visit studentaid.gov/login or call 1-800-4-FED-AID for assistance.

The team at Kirtland Financial Services here, delivering the support and financial guidance you need.

Book your appointment with a Wealth Management Advisor today by calling 505-254-4364 or online at KirtlandFCU.org/Schedule


 
1) Coronavirus Aid, Relief, and Economic Security Act (CARES Act) , enacted March 27, 2020
2) U.S. Department of Education, Office of Federal Student Aid, 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. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.
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. LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.

Taxes COVID-19

Due to the coronavirus pandemic, the due date for filing federal income tax returns and making tax payments has been postponed by the IRS from Wednesday, April 15, 2020, to Wednesday, July 15, 2020. No interest, penalties, or additions to tax will be incurred by taxpayers during this 90-day relief period for any return or payment postponed under this relief provision. 

The relief applies automatically to all taxpayers, and they do not need to file any additional forms to qualify for the relief. The relief applies to federal income tax payments (for taxable year 2019) and estimated tax payments (for taxable year 2020) due on April 15, 2020, including payments of tax on self-employment income. There is no limit on the amount of tax that can be deferred. 
  
Note: Under this relief provision, no extension is provided for the payment or deposit of any other type of federal tax, or for the filing of any federal information return. 
  
Need more time? 
If you're not able to file your federal income tax return by the July due date, you can file for an extension by the July due date using IRS Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. Filing this extension gives you an additional three months (until October 15, 2020) to file your federal income tax return. You can also file for an automatic three-month extension electronically (details on how to do so can be found in the Form 4868 instructions). There may be penalties for failing to file or for filing late. 

Filing for an extension using Form 4868 does not provide any additional time to pay your tax. When you file for an extension, you have to estimate the amount of tax you will owe and pay this amount by the July filing due date. If you don't pay the amount you've estimated, you may owe interest and penalties. In fact, if the IRS believes that your estimate was not reasonable, it may void your extension. 

Tax refunds 
The IRS encourages taxpayers seeking a tax refund to file their tax return as soon as possible. Apparently, most tax refunds are still being issued within 21 days of the IRS receiving a tax return. 

You matter to us! We’re here to help you make sense of these recent changes.

Book your appointment with a Wealth Management Advisor today by calling 505-254-4364 or online at KirtlandFCU.org/Schedule

 

COVID-19

Here is a quick look at the basics of the CARES Act, passed by Congress in March to assist individuals and businesses impacted by COVID-19. 
  
INDIVIDUAL ASSISTANCE
Recovery Rebates
  • Provides all U.S. residents with an adjusted gross income of $75,000 or less $1,200 for singles and heads of households ($2,400 for married couples filing joint returns and an adjusted gross income of $150,000 or less).
  • The rebate is phased out by $5 for every $100 over $75,000 that an individual receives, and phased-out completely for incomes exceeding $99,000 (single), $146,000 (head of household with one child) or $198,000 (joint with no children).
  • Those with children are eligible to receive an additional $500 per child.
  • Those with no income, or income that comes from non-taxable benefits such as SSI, are still eligible for the rebate.
  • Checks will be sent to the address or bank account used on 2018 or 2019 tax returns. No action will be required for most eligible recipients.
  
Unemployment Compensation
  • Expands eligibility to include self-employed individuals and independent contractors.
  • Expands eligibility to 39 weeks (through the end of 2020).
  • Increases the maximum amount available by $600 per week.
  • Allows for individuals who quit their jobs due to coronavirus related concerns to be eligible for unemployment assistance.
  
RETIREMENT ASSISTANCE
Required Minimum Distributions
  • RMDs for 2020 are waived completely for IRAs and DC plans. They do not need to be made up next year.
  • We are waiting for IRS guidance related to putting distributions already taken back. It was allowed in 2009. 
  
Plan Withdrawals
  • Waives the 10% penalty tax on early withdrawals up to $100,000 for coronavirus related hardship distributions.
  • Exempts coronavirus related distributions from the 402(f) notice requirements and mandatory 20% withholding applicable to eligible rollover distributions.
  • Permits the individual to recontribute the coronavirus related distribution within three years.
  • Coronavirus related distributions are distributions made during 2020 to an individual who is diagnosed with COVID-19, who has a spouse or dependent diagnosed with COVID-19 or who experiences financial consequences as a result of COVID-19.
  
SMALL BUSINESS ASSISTANCE
Paycheck Protection Program
  • A new, $349 billion lending program administered by the SBA for small businesses, nonprofits, independent contractors, sole proprietors and self-employed individuals
  • Loans are fully guaranteed and 250% of an average monthly payroll from Feb. 15 – June 30, 2019. There is a $10 million cap on loans.
  • Eligible uses include employee compensation, compensation of an independent contractor or sole proprietor no greater than $100,000 in one year, rent or utility payments or a mortgage interest payment.
  
Employee Retention Credit
  • A refundable payroll tax credit equal to 50% of employee wages paid by certain employers during the coronavirus crisis, up to $10,000 in wages.
  • Employers are eligible for the tax credit if their operations were affected by government order limiting commerce, travel or group meetings due to coronavirus or whose quarterly receipts are less than 50% for the same quarter in the prior year.
  • Wages paid to employees during which they are furloughed or have reduced hours are eligible.
  • Businesses receiving a loan through PPP are not eligible.
  
Delay of Payment of Employment Payroll Taxes
  • Employers and self-employed individuals can defer the payment of their portion of social security tax
  • The taxes must be paid over the following two years, with half due before December 31, 2021 and the other half by December 31, 2022.
  • Businesses receiving a loan through PPP are not eligible for this deferral.
  
Excess Business Losses
  • Pass through corporations and sole proprietors are able to deduct more business losses on their taxes, freeing up cash for immediate expenses.
  • The cap, first imposed in the Tax Cuts & Jobs Act, will be effective after December 31, 2020.
  
You matter to us! We’re here to help you make sense of these recent changes.

Book your appointment with a Wealth Management Advisor today by calling 505-254-4364 or online at KirtlandFCU.org/Schedule

 
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor. This material was prepared by LPL Financial.

Investments

The longest bull market in history lasted almost 11 years before coronavirus fears and the realities of a seriously disrupted U.S. economy brought it to an end. 

If you are losing sleep over volatility driven by a cascade of disheartening news, it may help to remember that the stock market is historically cyclical. There have been 10 bear markets (prior to this one) since 1950, and the market has recovered eventually every time. 

Bear markets are typically defined as declines of 20% or more from the most recent high, and bull markets are increases of 20% or more from the bear market low. But there is no official declaration, so in some cases there are different interpretations regarding when these cycles begin and end. 
  
On average, bull markets lasted longer (1,955 days) than bear markets (431 days) over this period, and the average bull market advance (172.0%) was greater than the average bear market decline (-34.2%).
 
Bear Market Since 1950 Calendar Days to Bottom U.S. Stock Market Decline (S&P 500 Index)
August 1956 to October 1957 444 -21.5%
December 1961 to June 1962 196 -28.0%
February 1966 to October 1966 240 -22.2%
November 1968 to May 1970 543 -36.1%
January 1973 to October 1974 630 -48.2%
November 1980 to August 1982 622 -27.1%
August 1987 to December 1987 101 -33.5%
July 1990 to October 1990 87 -19.9%*
March 2000 to October 2002 929 -49.1%
October 2007 to March 2009 517 -56.8%
*The intraday low marked a decline of -20.2%, so this cycle is often considered a bear market.

The bottom line is that neither the ups nor the downs last forever, even if they feel as though they will. During the worst downturns, there were short-term rallies and buying opportunities. And in some cases, people have profited over time by investing carefully just when things seemed bleakest. 

If you're reconsidering your current investment strategy, a volatile market is probably the worst time to turn your portfolio inside out. Dramatic price swings can magnify the impact of a wholesale restructuring if the timing of that move is a little off. A well-thought-out asset allocation and diversification strategy is still the fundamental basis of good investment planning. Changes in your portfolio don't necessarily need to happen all at once. Try not to let fear derail your long-term goals. 
  
No matter where the market goes, the team at Kirtland Financial Services is here for you, delivering the support and financial guidance you need.

Book your appointment with a Wealth Management Advisor today by calling 505-254-4363 or online at KirtlandFCU.org/Schedule

 
The return and principal value of stocks fluctuate with changes in market conditions. Shares, when sold, may be worth more or less than their original cost. Asset allocation and diversification are methods used to help manage investment risk; they do not guarantee a profit or protect against investment loss. The S&P 500 is an unmanaged group of securities that is considered to be representative of the U.S. stock market in general. The performance of an unmanaged index is not indicative of the performance of any specific investment. Individuals cannot invest directly in an index. Past performance is not a guarantee of future results. Actual results will vary. Source: Yahoo! Finance, 2020 (data for the period 6/13/1949 to 3/12/2020) The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly. 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. LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.

COVID-19

On Friday, March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. This $2 trillion emergency relief package is intended to assist individuals and businesses during the ongoing coronavirus pandemic and accompanying economic crisis. Major relief provisions are summarized here.
  
UNEMPLOYMENT PROVISIONS
The legislation provides for: 
  • An additional $600 weekly benefit to those collecting unemployment benefits, through July 31, 2020
  •  An additional 13 weeks of federally funded unemployment benefits, through the end of 2020, for individuals who exhaust their state unemployment benefits
  •  Targeted federal reimbursement of state unemployment compensation designed to eliminate state one-week delays in providing benefits
  •  Unemployment benefits through 2020 for many who would not otherwise qualify, including independent contractors and part-time workers
RECOVERY REBATES
Most individuals will receive a direct payment from the federal government. Technically a 2020 refundable income tax credit, the rebate amount will be calculated based on 2019 tax returns filed (2018 returns in cases where a 2019 return hasn't been filed) and sent automatically via check or direct deposit to qualifying individuals. To qualify for a payment, individuals generally must have a Social Security number and must not qualify as the dependent of another individual.
  
The amount of the recovery rebate is $1,200 ($2,400 if married filing a joint return) plus $500 for each qualifying child under age 17. Recovery rebates are phased out for those with adjusted gross income (AGI) exceeding $75,000 ($150,000 if married filing a joint return, $112,500 for those filing as head of household). For those with AGI exceeding the threshold amount, the allowable rebate is reduced by $5 for every $100 in income over the threshold.

Rebate Amounts and Phaseout Ranges 
 
Filing Status Payment Amount Phaseout Threshold Phaseout Completed
Married Filing Jointly $2,400 $150,000 $198,000
+1 Child $2,900 $150,000 $208,000
+2 Children $3,400 $150,000 $218,000
Head of Household $1,200 $112,500 $136,500
+1 Child $1,700 $112,500 $146,500
+2 Children $2,200 $112,500 $156,500
All Others $1,200 $75,000 $99,000

While details are still being worked out, the IRS will be coordinating with other federal agencies to facilitate payment determination and distribution. For example, eligible individuals collecting Social Security benefits may not need to file a tax return in order to receive a payment. 
  
RETIREMENT PLAN PROVISIONS
  • Required minimum distributions (RMDs) from employer-sponsored retirement plans and IRAs will not apply for the 2020 calendar year; this includes any 2019 RMDs that would otherwise have to be taken in 2020
  • The 10% early-distribution penalty tax that would normally apply to distributions made prior to age 59½ (unless an exception applies) is waived for retirement plan distributions of up to $100,000 relating to the coronavirus; special re-contribution rules and income inclusion rules for tax purposes apply as well
  • Limits on loans from employer-sponsored retirement plans are expanded, with repayment delays provided
STUDENT LOANS
  • The legislation provides a six-month automatic payment suspension for any student loan held by the federal government; this six-month period ends on September 30, 2020
  • Under already existing rules, up to $5,250 in payments made by an employer under an education assistance program could be excluded from an employee's taxable income; this exclusion is expanded to include eligible student loan repayments an employer makes on an employee's behalf before January 1, 2021
BUSINESS RELIEF
  • An employee retention tax credit is now available to employers significantly impacted by the crisis and is applied to offset Social Security payroll taxes; the credit is equal to 50% of qualified wages up to a certain maximum
  • Employers may defer paying the employer portion of Social Security payroll taxes through the end of 2020 and may pay the deferred taxes over a two-year period of time; self-employed individuals are able to do the same
  • Net operating loss rules expanded
  • Deductibility of business interest expanded
  • Provisions relating to specified Small Business Administration (SBA) loans increase the federal government guarantee to 100% and allow small businesses to borrow up to $10 million and defer payments for six months to one year; self-employed individuals, independent contractors, and sole proprietors may qualify for loans
PRIOR LEGISLATIVE RELIEF PROPOSITIONS
  • Signed into law roughly two weeks prior to the CARES Act, the Families First Coronavirus Response Act (FFCRA) also included relief provisions worth noting: 
  • Requirement that health plans cover COVID-19 testing at no cost to the patient
  • Requirement that employers with fewer than 500 employees generally must provide paid sick leave to employees affected by COVID-19 who meet certain criteria, and paid emergency family and medical leave in other circumstances
  • Payroll tax credits allowed for required sick leave as well as family and medical leave paid
There is likely to be a steady stream of guidance forthcoming with details relating to many of these provisions, so stay tuned for more information. 

The team at Kirtland Financial Services is here for you. We’re here to help! 

Book your appointment with a Wealth Management Advisor today by calling 505-254-4364 or online at KirtlandFCU.org/Schedule

 
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 performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly. 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. LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.

Investments

During this time, it may be somewhat comforting to remember that you are not alone. Everyone is wondering what the immediate future holds for the impact of the COVID-19 virus. Everyone else has the same fears and anxiety that you are feeling right now.

When it comes to your investments, all you can really control is how you react. Sticking to sound, fundamental investing principles and staying the course will help you make it through this difficult time. Here are some practical tips for surviving market volatility in the face of what may seem like an extraordinary crisis right now.

Avoid Hitting the Panic Button
During this time, it’s very tempting (and very normal) to think about getting out of the stock market. Especially on March 16, when the S&P 500 suffered its worst decline since the 1987 stock market crash (also known as Black Monday). But selling solely because the stock market has suffered a big decline over a very short period of time may be the worst thing you can do.

It’s understandable if you’re struggling to keep fear in perspective right now. Over time, however, the stock market has historically risen despite economic woes, terrorism, the burst of the housing bubble in 2008 and countless other calamities. Investors should try to always separate their emotions from the investment decision-making process. What seems like a massive global catastrophe one day may likely become a distant memory a few years down the road. After all, when was the last time you thought about Black Monday (if you are even old enough to remember it)? Or the Great Recession?

Keep a Long Term Perspective
For many people, a retirement account such as an IRA may be their largest investment asset. And that’s probably the one you are most concerned about right now. Keep in mind that if you are investing for a long-term goal such as retirement, which may not begin for two or three decades — and could last two or three decades — you should have plenty of time to ride out this current market downturn. The same may be true with regard to some intermediate-term financial goals you may have, such as saving to buy a home, start a family or fund a college education.


Maintain a Diversified Portfolio
Having a percentage of your portfolio spread among stocks, bonds, and cash assets is the core principle of diversification. Doing so helps manage your risk because historically not all parts of the market move in the same direction at the same time. Losses in one asset category (such as stocks) may be mitigated by gains in another (such as bonds and cash)1 .

Consider This a Great Buying Opportunity
Experienced investors often view bear markets as great buying opportunities because the valuations of good companies get hammered down due to circumstances beyond their control — such as what is happening now with the airlines, hotels, oil companies and many other industries and sectors. If you’re looking to put some extra cash you may have to work, this may be a good time to consider value stocks and stock funds.

Keep on Dollar Cost Averaging
The principle of dollar cost averaging means you simply commit to investing the same dollar amount on a regular basis. When the price of shares in a stock or investment portfolio drops (like it is now) — you’re actually buying more shares. Conversely, when the price goes up, you’ll be buying fewer shares. Over the long term, this provides you with an opportunity to actually lower your average cost per share2 . If you haven’t already, setting up an automatic savings program for your IRA (versus making one annual contribution) or other investments may make sense.

Be Real About Your Tolerance For Risk
When you started saving for retirement or other financial goals, you went through the process of assessing your comfort level with risk and made investment decisions accordingly. However, you probably never thought your risk tolerance would be tested like it is right now. If you are literally not able to sleep at night right now due to all the market volatility, that’s probably the most reliable sign that you may need to consider a larger allocation to more conservative investments. However…make sure you consider the next and final tip before you do anything!

Think, Reflect, Sleep on it….and Consider Talking to a Financial Professional
If you are strongly considering making changes to your investments, do so in a thoughtful way and after careful consideration. And if you haven’t already, consider talking with your Wealth Management Advisor at Kirtland Financial Services. We are here to give you the perspective and guidance you need to help weather this storm. Don’t hesitate to call us today at 505-254-4363 or learn more at Kirtland Financial Services.

 
1. 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.
2. 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.

Investments Savings Retirement

Investing is risky! Right?

Not necessarily. You have many options for investing your money, each with a different potential for risk and return. Many options offer the potential for higher returns but pose a risk to your principal balance. Other investing options, such as the Market-Linked Certificate of Deposit (CD), offer a more conservative path for potentially growing your money.

Kirtland Financial Services can help you invest in several different ways—including Market-Linked CDs.

A Market Linked CD offers principal protection at maturity with the potential for market participation.

WHO MIGHT CONSIDER A MARKET-LINKED CD?
  • Anyone who has suffered market losses in the past and is hesitant to risk principal again.
  • Anyone who is searching for growth potential beyond the constraints of traditional savings methods.
  • Retirees and others who are in risk-averse situations.
ARE MARKET-LINKED CDs INSURED?
Yes, Market-Linked CDs carry federal deposit insurance administered by the Federal Deposit Insurance Corporation (FDIC) and are backed by the full faith and credit of the US Government up to a maximum amount for all deposits held in the same legal capacity per depository institution. In general, the FDIC feature guarantees principal of, and any accrued interest on, the Market-Linked CDs up to $250,000 if held to maturity.

 
The Wealth Management Advisors at Kirtland Financial Services are ready to discuss the ins and outs of Market-Linked CDs as a possible investment in your overall financial strategy.

Let the team at Kirtland Financial Services help you focus your goals and make an investment plan that’s right for you and your situation.

Make your appointment now!



 
Principal protection is the return of an investor’s initial principal amount if held to maturity. MLCDs should be purchased with the intention of holding until maturity. Some MLCDs may offer an early redemption opportunity, allowing holders the option to redeem prior to maturity. Generally, MLCDs held to maturity are entitled to full return of the principal amount invested. A secondary market for the MLCDs may develop, although there is no guarantee that any person will maintain a secondary market. The value of the MLCD sold prior to maturity in the secondary market will be subject to the prevailing marketing conditions and may include a transaction charge. The sale proceeds may be less or more than the original purchase amount paid. Market-Linked CDs are FDIC insured up to the FDIC limits. Any amount that exceeds the FDIC limits is subject to the credit and claims paying ability of the issuer.

Subject to particular offering documentation. Participation in any underlying or linked product is subject to certain caps and restrictions. There is no guarantee of return above principal. Return of principal is subject to the credit risk of the issuer.

Investments Retirement

Think of your favorite recipe.

How many ingredients does it have—just a few or is the dish more complex? What methods and tools do you need to make it? And once you have your ingredients mixed together, do you taste-test along the way to see if you need to make any adjustments?

These considerations are just as important for your investment and retirements plans as they are for your favorite dish. Some goals are more complex, requiring more varied avenues to work toward them. Your situation may require more time and different strategies to plan for retirement than another person’s, and that’s okay! And you absolutely want to “taste-test” your plans by meeting with your Wealth Management Advisor to make sure you’re on track or to make any adjustments to try to get back on course.

If you’re getting closer to your planned retirement age, check in with the Wealth Management Advisors to see if your retirement is on track by considering each step of the retirement checklist:

Retirement Budget
Understand what your income will look like in retirement so you can confidently spend your money.

Emergency Savings
The threat of emergencies doesn’t go away just because you’re no longer at risk for a job loss. Prepare by saving three to six months’ living expenses in an easily-liquidated source.

Taxes
Have a sound tax strategy will help you through the process of spending your retirement funds.

Lifestyle & Location
Have your plans for retirement changed regarding your housing options and location? If so, you may want to revisit your strategy.

Retirement Strategy
Planning the ‘when’ when it comes to tapping your 401(k), TSP or other retirement plan savings is a major part of being retirement-ready.1 And don’t forget about old retirement accounts from past employers! Use this time to bring all your retirement accounts together into one strategy. Make sure you're including all your past retirement accounts in your retirement strategy.

Estate Strategy
Retirement inevitably ends with your passing. Be ready for that day by planning how you want your assets to be distributed and who will handle your estate when you’re gone. Ask your Wealth Management Advisor about the exclusive Life Notes estate planning book from Kirtland Financial Services to help record your plan!

Health Insurance
Understand your options with Medicare and build a strategy for healthcare-related expenses.

Extended Care
Many retirees face health issues that require them to spend a portion of their retirement in long-term care facilities. Make sure you’ve planned for the possibility.
 
Social Security
Make sure you know how Social Security will factor into your income strategy.

Bucket List
It’s the best part of retirement! What are your goals and priorities going to be in retirement? Check in with your Wealth Management Advisor to help you stay on track.

Planning—following your recipe—can help you work toward a great final product. From the time you walk into your first job all the way through to deciding what will happen to your estate when you’re gone, planning helps you focus on your goals, not just react.

The professionals at Kirtland Financial Services specialize in helping you identify long-term goals and educating you on your options for working toward those goals. With a broad view of all your options, you will be able to more confidently make choices that are right for you.

Let Kirtland Financial Services help you with:
  • PROTECTION PLANNING - Do you have the right insurance options in place to protect your assets?
  • TAX PLANNING - How will tax laws impact you? 
  • INVESTMENTS - You have many options to try to grow your savings.
  • RETIREMENT PLANNING - It’s never too early to start.
  • ESTATE PLANNING  - Plan for the future you won’t see.
Work toward a delicious retirement!  Schedule your appointment today. 

 
1. Distributions from 401(k) plans and most other employer-sponsored retirement plans are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. Generally, once you reach age 70½, you must begin taking required minimum distributions.

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

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