​I. Summary:
     Recent price data on Consumer Price Index and the Producer Price Index from the U.S. Labor Department came in hot for January, increasing worries for investors that the Federal Reserve may have to keep interest rates elevated for a prolonged period of time.
 
Consumer Price Index (CPI)
     Recent Consumer Price Index data showed that prices for energy, housing, food, and other items increased for the month of January. Compared to January 2022, the CPI inflation measure climbed 6.4%, edging down slightly from 6.5% in December. The good news is that the consumer price index has had 7 consecutive months of easing inflation since peaking at 9.1% in June, which was the highest reading since 1981. The bad news is that this cooling trend is moderating and strong inflation reports are likely to keep Federal Reserve officials on track to raise interest rates in March, with further potential increases after that. 

​     Fed officials in recent public appearances have forewarned of a longer fight than anticipated by many investors, who recently have anticipated faster declines in inflation. Jerome Powell recently stated that the process of reaching the Fed’s goal of 2% inflation “is likely to take quite a bit of time. It’s going to be, we don’t think, smooth. It’s probably going to be bumpy.”
 
     Core CPI rose 5.6% from a year earlier, down from 5.7% in December. Core CPI, which is similar to CPI is an aggregate of prices paid by consumers for a typical basket of goods, excluding typically more volatile food and energy costs.
 
     Underlying data in the CPI report showed that shelter prices have risen by 7.9% from a year earlier, the most since 1982, reflecting the lagged effects of booming demand for houses and apartments and remote working earlier in the pandemic. However, shelter prices are expected to ease later in the year. Grocery prices rose 11.3% in January from a year earlier. While grocery inflation has moderated from highs this past summer, some particular items like eggs and carbonated beverages remain considerably expensive. Prescription drug prices increased by 2.1% for the month while clothing and household furnishings were also more expensive.
 
Producer Price Index (PPI)
     The recent Producer Price Index report, which measures the average change in selling prices received my domestic producers of goods and services, showed that US supplier prices rose 6% in January from a year earlier, a sign of still stubborn inflation pressures in the economy. The January report of 6% is still down from 6.5% in December and the all-time high of 11.7% in March, the most recent peak. PPI increased 0.7% in January from the prior month, compared with a revised 0.2% drop in December, which is significantly faster than the 0.2% average monthly rise in the year before the pandemic.

​     The recent PPI report just provides further evidence to the Fed to hold interest rates higher and potentially even raise rate at the next FOMC meeting. Dallas Federal Reserve President Lorie Logan stated, “We must remain prepared to continue rate increases for a longer period than previously anticipated if such a path is necessary to respond to changes in the economic outlook or offset any undesired easing in conditions.”
 
     Despite the recent inflation data, the broader economy has shown signs of resilience. The unemployment rate last month fell to 3.4%, the lowest level since 1969, and retail sales jumped 3% in January as consumers broadly boosted spending on vehicles, furniture, clothing, and dining out. However, Jerome Powell and the Federal Reserve have maintained their viewpoint that taming inflation is their #1 priority, and they will keep interest rates elevated until there is clear evidence that inflation is coming down. The recent CPI and PPI reports have provided additional evidence that the Fed still has a ways to go on bringing inflation down.

Most people are worried about making mistakes on their taxes that will get them in trouble with the IRS. In reality, most mistakes are simple human errors or missed opportunities that would reduced taxes owed. Last year, 9.4 million 'math-error' notices were sent out. Other mistakes involved forgetting to report invested income, getting bank or social security numbers incorrect, or forgetting to sign your return. In all of these circumstances, a little extra time or paying a tax professional can help save you money and give you peace of mind. Below are 8 common tax pitfalls to avoid:
​1. Missing investment income
2. Selling too soon
3. Poor record keeping
4. Forgetting losses
5. Waiting too long to strategize
6. Engaging in wash sales
7. Not taking advantage of tax breaks
8. Forgetting deadlines
Tax Mistakes do happen, but the more you understand your situation and tax rules, the less impact they can have on your wallet. Don't forget, this year's tax deadline is April 18, 2023. If you want more details on tax pitfalls, click on the article here or contact us at Brien@TraditionsWealthAdvisors.com or
​979-694-9100.

Looking into the new year we have researched economic trends and the possible impact of an upcoming recession. Overall, for 2023 we expect GDP growth to be slim, inflation decelerating, and a shallow recession. 
​
Economic Growth Rates
In the U.S., after two consecutive quarters of negative gross domestic product (GDP) growth followed by a third quarter of modest economic growth, overall growth for all of 2022 is expected to be positive over the course of the full year — the consensus estimate among analysts is 1.5% – 2.0%.

Growth expectations for 2023 are less sanguine. According to the Wall Street Journal Economic Forecasting Survey, there is a rising consensus opinion that the U.S. will fall into recession within the next 12 months. This translates to a consensus estimate for 2023 GDP growth of only 0.4%

​Small business owners and consumers represent the bulk of economic activity in the U.S., and we see a distinct downward trend in both groups, driven by fears over inflation, rising interest rates and a potential recession in 2023. These trends may prove to be dominating factors in overall economic activity as consumers, business owners and investors take a “seek shelter” approach in their behavior.

Unemployment:

​Despite lower GDP growth the U.S. employment situation remains strong. The “headline” U-3 employment rate suggests that we remain in a tight labor market, and even the less-followed “U-6” partial employment level (workers who are involuntarily working at less than full employment) suggests the continuation of a positive employment market. In addition, weekly jobless claims (one of the leading economic indicators) remain at historically low levels.

​An interesting occurrence during the Covid-19 pandemic was that there was a higher-than-expected increase in retirements, known as “The Great Retirement Boom”. This number remains elevated and has not yet come down as much as expected, this makes the labor force participation rate look much higher, since retired people are not actively looking for a job, they are not included in the labor force participation rate. The real question is if these retired people have enough savings to remain retired or if they will have to return to the workforce, which would decrease the labor force participation rate. “The Great Retirement Boom” offers a different perspective on how “strong” the current labor market really is. 

​Inflation Expectations
     A main concern of the Fed continues to be the inflation rate, and Fed Chairman Jerome Powell has made clear that his current goal is to bring down inflation rates. Luckily many analysts are estimating that inflation in the U.S. has more than likely reached its zenith and is poised to continue to decelerate in 2023. According to Consumer Price Index (CPI) data, commodities less food and energy commodities have seen its annualized rate of increase plummet over the last nine months, falling from +12.3% to +3.7% in November. 

Monetary Policy
     Federal Funds rate hikes in 2022 have resulted in the Fed Funds target range going from a zero-interest rate policy (ZIRP) as recently as March to 4.50% in December, a total of 425 basis points in rate hikes. The graph below highlights how the current aggressive tightening cycle has compared to the previous two more methodical rate hike episodes. It is still unclear if the Federal Reserve will go into “raise and hold” mode in 2023 or entertains rate cuts during the second half of next year. The next Fed decision on interest rates is February 1st, and the interest-rate move is currently expected to be smaller than past hikes at 0.25 percentage-points. There is still significant economic data to come in ahead of the Fed’s decision and this could change the Feds view.

Equity Markets: Corporate Earnings and Macro Outlook
     A primary concern with regard to the S&P 500’s earnings outlook for 2023 is that banks are indicating a buttoning up of their lending standards, an occurrence that sometimes indicates corporate profit trouble. The fourth quarter marked the fifth in a row in which banks’ total loan books witnessed a tightening in the Fed’s Senior Loan Officers Survey, to a net 31.33%. That reading matches levels seen in 2001, 2007, and 2020, each of which witnessed a fall in S&P 500 earnings thereafter.

​Fixed Income
     The global sovereign debt markets have arguably experienced their worst year on record. However, an interesting development has occurred in the process; the era of negative rates has seemingly drawn to a close. With the exception of Japan, government bond markets in the developed world have now seen yield levels move into positive territory for the key 2-, 5-, and 10-year maturity sectors. 

​This development has created an interesting phenomenon: there’s “income back in fixed income.” The recent rise in U.S. Treasury rates has brought yields to levels not seen since 2007-2008. The natural question becomes: is there more to come? In other words, can U.S. Treasury yields continue rising from here? In context of future Fed policy, if the expectation for a 5% Fed Funds terminal rate does not come to fruition, Treasury Yields will more than likely continue to rise, especially along the front end of the curve, as yields need to adjust to this potential higher Fed Funds Rate. Analysts are estimating that the Fed will continue to raise rates in the first half of 2023, around the end of the second quarter. We expect the Fed to pause, which could lead to a modest rally in rates along with a steeper curve. Rate volatility will remain elevated; however, we believe we will not experience the rise that we witnessed this year.

​Real Assets And Alternatives
     Global supply shortages driven by the Russian invasion of Ukraine, combined with relative restrictive U.S. domestic energy policies, would normally provide a solid macroeconomic backdrop of support for global commodity prices. But a global economic slowdown, particularly in China, provides an offsetting counterbalance. Copper is often viewed as a leading indicator of expected future economic growth-in which case, we are in for a week global economy in 2023.

Potential Government Shutdown
     Another current event with potential economic implications is a potential government shutdown due to the inability to raise the government debt ceiling. If Democrats and Republicans cannot agree on a number than we may have another government shutdown. This has happened three times in the past 10 years, a 16-day shutdown in October 2013 over healthcare, a 3-day shutdown in January 2018 over immigration, and a 35-day shutdown between December 2018 and January 2019. According to the Congressional Budget Office, the 2018–2019 shutdown reduced economic activity by about $11 billion while it was underway, but much of that lost growth was recovered when government activity resumed. Overall, the shutdown cost the economy about $3 billion, equal to 0.02 of GDP, CBO found.
     Treasury Secretary Janet Yellen said on Jan. 19 that the United States has reached its current $31.4 trillion borrowing cap but can continue paying its bills until June by shuffling money between various accounts. At that point, when the so-called extraordinary measures are exhausted, the Treasury would not have enough money coming in from tax receipts to cover bond payments, workers’ salaries, Social Security checks and other bills.
     It would be catastrophic if the U.S. government was unable to pay its bills. A missed debt payment would likely send shockwaves through the global financial markets, as investors would lose confidence in Treasury’s ability to pay its bonds, which are seen as among the safest investments and serve as building blocks for the world’s financial system. The U.S. economy could face a severe contraction if the 69 million people enrolled in social security don’t get their monthly retirement and disability benefits, or hospitals and doctors don’t get paid for treating patients through government programs like Medicare.
     In conclusion, we expect the Fed to pause rate hikes sometime in the second half of 2023, possibly in to 2024, when there are sure signs that inflation is coming down. Until then, we should encounter a shallower and shorter recession than previously seen in previous recessions due to labor and workforce statistics as well as strong corporate balance sheets. It would be best for the global economy if the Russia–Ukraine war concluded, and the U.S. could agree to raise the debt ceiling.
    
By James Lane/ Brien L. Smith, CFP®
II. Source: Wisdom Tree Investments and Dr. Jeremy Siegel, Professor of Economics Wharton School of Business, University of Pennsylvania

​2022 was an interesting year to say the least. We saw rampant inflation from increased COVID spending and a decade of low interest rates finally come full circle, hurting the markets this past year. It appears that the Federal Reserve’s policy is starting to help the economy, but many analysts and economists believe that the worst is yet to come. Luckily, the upcoming recession is expected to be much shallower and “easier” than previous recessions. Federal Reserve Chairman Jerome Powell has been very transparent with the public on his goal of taming inflation, and analysts expect him to continue his course of action through interest rate hikes to achieve this goal.

I know that 2022 was a challenging year for the financial markets in general. We saw a large decline in the value of stocks, bonds, and most other assets. Pair this with high inflation, supply chain issues, and other socioeconomic issues with Russia and Ukraine and it is easy to see why this year has been particularly stressful for Americans. Based on a macroeconomic perspective our economy is currently in the late cycle of the Business /economic cycle. This is the period before a recession where GDP growth moderates, credit tightens, the government uses contractionary policy to slow growth, and business inventories grow while sales growth falls.

Other signs of a looming recession are seen in The Chicago PMI (a measure of manufacturing activity) which has only been this low in the past recession (last in 2009, before that in 2008-2009). 

​The inverted yield curve in the bond market has also signaled a recession as the yield curve continues to fall deeper into territory, with the 3-Month Treasury bill yield now 0.83% higher than the 10-year Treasury bond. In the last 60 years, the only periods with equal or greater inversion include 2000 (recession in 2001), 1979-1982 (recessions in 1980,1981-1982), 1974 (recession in 1973-1975).

​     It is hard to forecast exactly when Jerome Powell will ease monetary policy and lower interest rate hikes because it takes time for interest-rate changes to slow the economy and even longer to influence inflation. Jerome Powell stated himself, “if you’re waiting for actual evidence that inflation is coming down, it’s very difficult not to over-tighten. We think that slowing down at this point is a good way to balance the risks.” Policymakers expect price pressures to ease meaningfully next year, but brisk wage growth or higher inflation in labor-intensive service sectors of the economy could lead more of them to support raising their benchmark rate next year above the 5% currently anticipated by investors. A 50-basis point rise this month would bring the benchmark federal-funds rate to a range between 4.25%-4.5%, the highest level since December 2007. Most officials in September penciled in rates rising to between 4.5% and 5% next year. That landing zone could rise to between 4.75% and 5.25% in new projections. According to New York Fed President John Williams this is due to “Stronger demand for labor, stronger demand in the economy than I previously thought, and then somewhat higher underlying inflation suggest a modestly higher path for policy relative to inflation. Not a massive change, but somewhat higher.” As of now, Jerome Powell has stated that we will see a rate hike of 50 basis points at the next FOMC meeting in December. This is a good sign as rate hikes have been 75 basis points for every meeting since June.

​Expectations For 2023:
     Looking forward into 2023, we expect the Fed to continue with its interest rate hikes in February. If inflation slows but the labor market stays tight, they could be more divided over how to proceed. As of now the, Fed has stated that it is lowering interest rate hikes from 75 basis points to 50 basis points on the evidence that its monetary policy is starting to work. Inflation come down moderately so far.

​We’ve seen most asset prices drop, as interest rates and the dollar moved sharply upward. Looking to the future, most analysts and economists agree that the markets will continue to be affected by slower liquidity growth, persistent inflation risk, slowing growth momentum, and greater monetary policy uncertainty which will cause continued elevated volatility. Researchers from Bank of America / Merrill Lynch have a year-end target for the S&P 500 at around 4000, as of 12/6/2022 it is trading around 3960. However, the market typically bottoms out 6 months before the end of a recession so there is likely more room for stocks to fall. Luckily, this recession is expected to be shallower due to companies and consumers strong balance sheets so it shouldn’t be comparable to harsher previous recessions such as the great financial crisis and the recession of the 1970s. It is important to remember that Bull markets last much longer and produce much higher returns than bear market length and losses. Therefore, keeping your money invested for the long term is the most efficient form of investing compared to trying to time the market.

As we close out 2022 and ring in 2023, there are some choices you can make to possibly lower your taxes. Consider these tips before year-end to help your 2022 taxes and beyond.

1. Contribute to tax-advantaged accounts.
You must make your final contributions to a 401(k) or 403(b) by December 31st. You can contribute up to $20,500 before taxes. If you're 50 or over, you can make additional catch-up contributions of $6,500. That money reduces your taxable income dollar for dollar. And don't forget about health savings accounts (HSAs) if you have a high-deductible health plan. While you have until the April tax filing deadline to contribute, you can put away up to $3,650 for an individual and $7,300 for a family.

2. Consider a Roth.
Transferring money in a traditional IRA to a Roth IRA is another tax saving tip. You'll pay taxes on the converted amount, but then the money has growth potential and can be withdrawn tax-free, and it isn't subject to a required minimum distribution for the life of the owner. Why consider a Roth IRA conversion now? First, with many investments down this year, you can convert more shares for the same total amount and same potential tax bill. Also, tax rates are set to increase in 2026, so you could end up paying higher rates later on conversions.

3. Defer some income.
If you have freelance income, you could delay billing for your services until next year. Speak with your accountant to be sure if this is a good option for your situation.

4. Donate appreciated assets. Itemizers can also donate appreciated assets held longer than one year to a qualified public charity and deduct the fair market value of the asset without paying capital gains tax. The donation is subject to a 30% adjusted gross income (AGI) limitation.

5. Consider gifting to loved ones. You can gift up to $16,000 per recipient to as many people as you like. While you don't get an income tax deduction for such gifts, the recipient won't owe taxes, and the gift can help reduce the value of your estate, without using up your lifetime gift and estate tax exemption.

Want to hear more year-end tax tips? Click on this link for more details and tips: Top Tax Tips for 2022 or contact our office at Brien@TraditionsWealthAdvisors.com or 979-694-9100 with questions. 

​Traditions Wealth Advisors
James Lane, Financial Analyst Intern
Brien L. Smith, CFP®, CEO of TWA
November 15, 2022

I. Summary:
Introduction / Overview
     The November midterm elections have concluded (with the exception of the Georgia Senate runoff) and the Democrats are expected to retain the Senate while the Republicans have taken the House of Representatives. The vast majority of U.S. adults (82%) rated inflation as extremely important or very important for the government to address, according to a recent poll by Monmouth University. Comparatively, fewer respondents assigned such high ratings of importance to other hot-button issues such as abortion (56%), gun control (51%), and climate change (49%).
 
How the midterm elections could impact the economy and your finances
     Democrats have held both chambers of Congress for the past two years — resulting in a government trifecta, which is when the executive branch and both legislative branch chambers are all controlled by the same political party. With the Republicans gaining the House of Representatives there is expected to be political gridlock, where there is difficulty passing legislation.    
     Some feel a divided government would result in few meaningful steps to improve the economy.  Bipartisan action after the midterms to combat inflation is expected to be difficult with a divided government, according to an August Wells Fargo Investment Institute report. A slight majority — 53 percent — of Americans felt the midterm election would result in divided government and gridlock, an October Axios/Ipsos poll found.
 
     One potential implication of the Republicans gaining control of the House of Representatives is that lawmakers may attempt to make the 2017 Republican tax cuts permanent in an effort to grow the economy and create jobs. Republicans may also seek to repeal the corporate tax hikes Biden signed into law in August. Republicans are also expected to push for increased U.S. oil production in an effort to achieve self-sufficiency for energy production. However, it will be difficult to pass such legislation given President Biden and the Democratic party’s position on oil and climate change.
 
     Democrats are expected to make further attempts to pass measures from Biden’s $1.7 trillion Build Back Better Act that did not make it into law. Critics of the Build Back Better Act — and its offshoot, the Inflation Reduction Act, which passed in August — argue that many of the measures are dedicated to spending money and are therefore bad for reducing inflation.
 
     The Build Back Better Act contained more than $1.7 trillion in economic and infrastructure proposals. It sought to lower education and healthcare costs, as well to extend the expanded child tax credit. It failed to make it through Senate, however, after facing opposition from some moderate Democratic Senators.
 
     The Inflation Reduction Act aims to lower inflation by reducing the deficit, curbing prescription drug costs, and investing in clean energy. It seeks to combat climate change by increasing reliance on renewable energy sources like wind and solar power, as well as reducing greenhouse gas emissions and fossil fuel pollution. The act would also increase the minimum tax rate to 15% for some large corporations.
   
Taxes
     The November midterm elections will also help decide which tax priorities Democratic and Republican lawmakers pursue in the next couple of years. And those priorities could involve tax deductions and tax incentives that directly impact your finances. After the November midterm elections, Congress will need to come to an agreement on Fiscal Year 2023 spending. That creates an opportunity for a potential year-end tax package. There are several tax issues that Congress could address in such a package depending on their appetite for negotiation.
 
     For example, with Republicans now controlling the House of Representatives they may not be quick to support so-called lame-duck spending. That reluctance could be enhanced by the fact that the Democratic-controlled congress already passed the Inflation Reduction Act, which provides about $270 billion in clean energy tax incentives that include everything from electric vehicle tax credits to tax credits for energy efficient home improvements.
 
Child Tax Credit
      The expanded child tax credit was enacted with the American Rescue Plan Act (ARPA) and allowed eligible families in 2021 to receive advanced payments of up to either $250 or $300 a month (per qualifying child), for six months, depending on the age of each child. Democrats and various advocacy organizations have pushed to reinstate the expanded credit, which some data show effectively helped to reduce the child poverty rate. Democrats are expected to push to reinstate the child tax credit.
 
Inflation Reduction Act Implementation
     If Democrats are also expected to try and push the Inflation Reduction Act into law. Currently, the Treasury Department and the IRS are seeking public input to propose regulations to implement the many clean energy tax incentives in the new law. However, with Republicans taking control of the House, Minority Leader Kevin McCarthy (R-California) has vowed to block the $80 billion in funds allotted in the Inflation Reduction Act for the IRS. McCarthy and other Republican lawmakers have claimed that the funding will result in an “army” of 87,000 IRS agents coming to audit middle income Americans.
 
Retirement Savings
     On the bright side, there appears to be bipartisan support for potentially major retirement legislation. The EARN act is designed to encourage small businesses to adopt retirement plans and make it easier for part-time workers to participate in retirement plans. The bill would also expand savers credit for low and middle-income workers and allow penalty free-withdrawals during certain emergencies. Congress will have to reconcile the EARN Act with bipartisan House-passed SECURE 2.0, which would also make significant changes to retirement plans including raising the age for taking required minimum distributions (RMDs).
 
Trump Tax Cuts
     With Republicans gaining control of the U.S. House of Representatives, they have pledged to propose legislation to make the so-called Trump tax cuts permanent. The individual tax cuts were enacted with the Tax Cuts and Jobs Act of 2017 and many of the tax breaks tied to individuals are set to expire after 2025. In a pillar in the document that concerns the economy, Republicans say they will fight inflation and lower the cost of living in part through what they describe as a “pro-growth tax economy.” It’s unclear at this time what specific tax policies the GOP would pursue if they gained control of the House or the Senate. But President Biden would still have VETO power and Congressional override would be highly unlikely.
 
State Tax Initiatives: Taxing The Rich
     There are tax initiatives on November midterm ballots in several states. For example, Bloomberg points out that California voters will be asked to consider Proposition 30 — whether wealthy Californians should pay more tax. Colorado voters will cast votes on whether proposed income tax cuts should limit tax deductions for wealthy residents. Notably, like many other states, California and Massachusetts are returning surplus revenue to their residents in 2022 through state “stimulus” checks. California’s second round of tax stimulus checks are underway, and Massachusetts is returning nearly $3 billion to eligible taxpayers with its 2022 Massachusetts tax refund, beginning in November and continuing through Mid-December.
 
     Overall, Congress has been divided and political gridlock is highly likely, and analysts are expecting no major legislation to get passed into law. Historically, the stock market has done better under a split government when a Democrat is in the white house. Average annual S&P 500 returns have been 14% in a split Congress under a democratic president, according to data since 1932 analyzed by RBC Capital Markets. That compares when democrats controlled the presidency and Congress.

Financial anxiety is more severe than just worried about having enough money. It is a disorder that symptoms can include tension, irritability, and always worried. Financial anxiety can lead to people obsessing over checking their money or savings, imagining they don't have enough money, or avoid checking their finances all together. Click on the video below for strategies to help you cope with financial anxiety.

The good news is that your social security payments will increase by a record amount next year. The bad news: your tax bill may also rise with it!

The cost of living adjustment (COLA) should increase retirees payments by 8.7% which will help alleviate some of the cost of inflation. Unfortunately, more retirees will owe taxes on Social Security benefits. Higher income means higher taxes but don't fret there are ways designed to plan for the tax increase and to help keep more of your retirement income next year.

Here are some tips to discuss with your tax or financial advisor to prepare for these changes in 2023 and lower your income. First, minimize taxable traditional 401(k) or IRA withdrawals, as these are taxed as ordinary income, corresponding to your marginal tax bracket, but be sure to still withdraw enough to meet any required minimum distributions. Next, consider qualified withdrawals from a Roth IRA, a Roth 401(k), or a health savings account (HSA), which would not be subject to federal income tax and wouldn't have an impact on how your Social Security benefit is taxed. (Note: Roth IRA distributions of earnings must meet the 5-year aging requirement to be tax-free, and HSA withdrawals are only tax-free when used to pay for qualified health expenses.) Finally, withdrawals from a brokerage account, where long-term capital gains are taxed at a lower capital gains tax rate, generally between 0% and 20%, if you held the investments over a year. Figuring out withdrawals from retirement and brokerage accounts can be complicated, so it may help to work with an advisor.

Further, while claiming your social security as soon as possible is tempting, it is still best to wait until your full retirement age of 67. Plus each year you delay until 70, increases your benefits 8%. 

2023's cost of living adjustment can help you keep up with the higher costs. Make sure you are looking at your taxes long term and not just at this year. Whether you're planning for the next year or the next decade, managing taxes throughout retirement can be complicated. Be sure to work with a tax professional to help you understand the potential tax impacts of any planning decisions. Reach out to us for guidance and a referral at Brien@traditionswealthadvisors.com or 979-694-9100.

These simple steps are what Traditions Wealth Advisors does daily to set your mind at peace with your investment results. 

Step 1: Make a plan you CAN stick to.

An investment plan takes many factors into consideration, such as
your financial and retirement goals, your current savings, and your
tolerance for unexpected market fluctuations. Once you determine
your objectives, you can decide the best mix of investments to help
you achieve them. Although it's natural to want the highest return
possible from your portfolio, it's also important to consider the
temporary losses you're willing to withstand in negative markets, so
you're not tempted to abandon your investment plan during
inevitable periods of anxiety and discomfort.

Step 2: Rebalance periodically.

After you determine your optimal mix of investments, you shouldn't
need to make frequent changes to your portfolio. In fact, research
has shown that trading too often can lead to underperformance
over time. Still, as markets rise and fall, your asset allocation can
drift from its original targets, changing the overall risk and return
profile of your investment portfolio. To ensure your portfolio stays
aligned with your future goals and risk tolerance--and to maximize
your results over time--it's important to periodically take gains from
investments that have risen in value and use the proceeds to buy
more of the investments that have declined in value.

Step 3: Check your account balances less.

Nobel Prize-winning behavioral economists Richard Thaler and
Amos Tversky found that investors who check their account
balances frequently are less willing to take on risk, which ultimately
causes them to fall short of their financial goals. A healthy amount
of risk is necessary to grow your assets over the long term. If you're
prone to panicking when markets fall, the best solution is to check
your accounts no more than once per quarter.​

Further questions on these simple steps? Please contact us at Brien@TraditionsWealthAdvisors.com or 979-694-9100.