Equilibrium Insider- July 20, 2023
Equilibrium Wealth Advisors
Wealth Management firm serving physicians, retirees, corporate leaders, and business owners.
Market Commentary
The Markets
Disinflation was in the air!
To the great relief of the Federal Reserve, the American economy has been experiencing “disinflation,” which is a slowdown in the rate of inflation. For example, last week we learned that:
Inflation fell to a two year low in June.
The Consumer Price Index (CPI) showed that prices rose just 3 percent from June 2022 through June 2023. That was lowest inflation has been in two years, reported Augusta Saraiva of Bloomberg.
Core inflation was lower, but not as low.
The core CPI, which excludes volatile food and energy prices, also dropped to a two-year low, coming in at 4.8 percent. While inflation is still well above the Federal Reserve’s target rate of two percent, the slower rate of increases was welcome news for everyone who has been concerned about the effects of higher costs on their budgets.
Producer prices flattened.
The Producer Price Index followed on the heels of the CPI. It showed that prices were almost flat for producers, rising just 0.1 percent over the 12 months through June 2023. Reade Pickert of Bloomberg reported, “Normalizing global supply chains, stabilizing commodity prices, and a broader shift in consumer demand toward services and away from goods have generally helped alleviate inflationary pressures at the producer level.”
FIN-LYT by EWA Podcast
In this episode of FIN-LYT by EWA, Matt Blocki and Jamison Smith dive into the universe of annuities, exploring their potential benefits, unraveling embedded costs, and shedding light on the possible downfalls. This podcast will serve as a guide to understanding annuities and making informed decisions.
Topics include:
?1.????Annuity Basics: Fundamental principles, how they work, the various types available, and their purpose
2.????Benefits and Suitability: When are annuities beneficial? In what scenarios do they align with specific financial goals?
3.????Embedded Costs: Uncover the hidden costs and fees associated with annuities, including surrender charges, administrative fees, mortality and expense charges, and investment management fees. Understand how these costs impact overall returns and the importance of transparency.
4.????Downfalls and Risks: Explore the potential downsides including limited liquidity, restrictions on withdrawals, and the impact of inflation. Gain insights into mitigating risks and understanding the trade-offs involved.
5.????Annuity Strategies: Advanced topics, such as structuring annuities within a broader investment portfolio, combining annuities with other retirement vehicles, and optimizing income streams.?
Throughout the podcast, Matt and Jamison share their own experiences and provide practical tips for evaluating annuities, selecting suitable options, and avoiding common pitfalls.?
EWA BLOG
A recent study by The Williams Group found that seven in ten families lose their fortune by the second generation and nine of ten families lose their wealth by the third generation. With this data in mind, a consistent theme and goal amongst high-net-worth individuals is that of a successful wealth transfer to the next generation.
Oftentimes, gifting money to children or grandchildren is a smart way to help strike a balance between helping the next generation without enabling them. An important consideration with this strategy is the avoidance of gift taxes, and gifting as efficiently as possible.
We’re excited to announce that our team has grown! Welcome,?Piper Martin, our new Social Media and Marketing Associate. Piper has an incredible background in all things social media, marketing and graphic design.