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Special Announcement - Due to the adverse weather conditions on 4/2, the Estate Planning Seminar for that evening has been rescheduled for the evening of 4/9 (see below)

Novus Financial Group has scheduled its first two seminars of 2024. The topic of these seminars is Estate Planning and our special guest speakers are John & Lorri Posani of the Posani Law Office (https://www.posanilawoffice.com). The dates of the seminars are April 4th & 9th from 6:00 pm - 7:15 pm and they will be held at:

OSU Golf Club’s Kepler Club House (Heavy hor d’oeuvres will be provided)

Topics of these two Estate Planning Seminars include:

What estate document might be THE MOST IMPORTANT one to have

Learn about recently updated tax strategies that turn your taxable assets into tax-free assets (NOT a Roth strategy)

The estate documents you want if your child is college-bound

How to fortify your estate plan to combat the high-inflation economy

Will vs Trust: Differences and when you want one over the other

How to leverage your assets to make them work as hard as possible for your

Why documents are only ½ of the estate plan

Avoiding Probate: what it means and how to do it

How to begin the Estate Planning process

The quickest and easiest strategies that you can implement that can have a significant impact on your Estate and your Legacy

Persistent Inflation Casts Doubts on Rate Cuts in 2024

by Eric Seyboldt 

In a financial landscape marked by continuously high inflation rates, grasping the Federal Reserve's interest rate strategy is essential for individuals nearing retirement or already retired, planning their economic future. The Federal Reserve's latest actions in modifying interest rates serve as key indicators for predicting economic solidity and making wise investment choices. This piece aims to clarify the present interest rate situation and its connection with the prevailing inflation, presenting insights geared toward those approaching or in retirement.

The Federal Reserve's Rate Adjustments: A Delicate Equilibrium

In tackling rising inflation, the Federal Reserve has initiated a sequence of interest rate hikes. These changes are designed to curb inflation by increasing the cost of borrowing, which in turn, is supposed to reduce consumer spending and business investments. For individuals close to retiring or already retired, this situation presents two crucial implications. On one hand, higher interest rates may boost returns on fixed-income investments, like bonds and savings accounts. On the other hand, it might lead to lower stock market values, impacting the performance of retirement savings.

Inflation's Ongoing Dilemma

The persistent inflation is complicated, arising from supply chain issues, renewed demand following the pandemic, and geopolitical conflicts, among others. This consistent inflation diminishes buying power, directly affecting those dependent on fixed incomes or savings. Therefore, the Federal Reserve's interest rate policy plays a pivotal role in preserving the economy's buying power.

Interest Rates and Inflation: An Inverse Relationship

The bond between the Federal Reserve's interest rates and inflation is inversely related. When the Fed raises rates, its goal is to slow down economic activity to a sustainable growth rate, thus reducing inflation. Nonetheless, the success of this strategy is contingent on numerous external economic factors, posing a challenge in maintaining this balance.

Strategies for Pre-Retirees and Retirees

Considering these factors, individuals nearing or in retirement should contemplate several strategies:

• Diversification: Maintaining a diversified portfolio could help in navigating risks linked with fluctuating markets and shifts in interest rates.

• Fixed-Income Investments: The allure of fixed-income securities grows with rising interest rates, providing a more enticing income source.

• Inflation-Protected Alternative Assets: Investing in tools like Real Assets may serve as a safeguard against inflation.

• Professional Advice: Seeking advice from a Novus Financial Group financial advisor can yield tailored strategies that resonate with an individual’s retirement objectives and risk appetite.

The Federal Reserve's actions on interest rates are a direct countermeasure to the high inflation challenges. For those on the verge of retirement or who are already retired, it is vital to stay informed and flexible in their financial planning to adeptly maneuver through this changing landscape. By grasping the effects of these economic policies, individuals can pave the way for a financially secure future amidst these uncertainties.

Reach out to us for a complimentary, 10-minute consultation call. Let's explore together how we can help you maximize your income in retirement, ensuring your golden years are as fulfilling and worry-free as you’ve always imagined. Email Eric at [email protected] or give us a call today to schedule your consultation. Let's make your retirement dreams a reality!

Client Q & A of the Week - Are you going to depend on Social Security for income during your retirment?

Client: Mark, is there anything I can do to make up the shortfall in income if Social Security cuts its benefits due to underfunding?

Mark: That’s definitely a valid concern. Based on a recent analysis of the 2023 Annual Report of the Board of Trustees of the Federal Old-Age and Survivor’s Insurance and Federal Disability Insurance Trust Funds, by 2033 the Trust Fund will only have enough funds to pay 77% of the earned income benefits.

We’ve been keeping a close eye on this subject for several years now. Analyzing the financial trajectory of Social Security over the next decade, several critical factors emerge that significantly elevate the risk of underfunding. Demographic shifts, notably the aging population, intensify the strain on Social Security funds, as the ratio of contributors to beneficiaries narrows. Historical trends of wage stagnation further exacerbate this issue by limiting the growth in payroll tax revenues, the primary source of funding for Social Security.

Additionally, legislative inertia toward comprehensive reform of the system compounds the challenge.

Economic variables such as inflation, unemployment rates, and GDP growth also play a pivotal role in shaping the future solvency of Social Security

The insurance industry has been planning for this scenario and, in order to mitigate that risk, has created a benefit called the “Social Security Gap benefit”.

Here is how it works - in essence, you are insuring your Social Security income. We would open an account for you that would act like your typical index annuity where you would have the opportunity to make market-like returns. However, as an added benefit, you would be provided with Gap Insurance for your Social Security. You would simply “turn on” the benefit in the event that there was a gap in benefits. If there is no gap, then the funds in the account continue to have the upside opportunity that the market provides.

Implementing these strategies requires thoughtful deliberation and a deep understanding of your financial health. The goal is to find the right balance that both secures your financial future and allows you to live the retirement life you dream of. Consulting with a financial advisor from Novus Financial Group can provide personalized advice and plans that are specifically tailored to your unique circumstances.

Fixed annuities can be an essential component of a well-rounded retirement strategy, offering security, predictability, and efficiency in financial planning.

Here are current fixed annuity rates and their durations from Top A-rated carriers (subject to change at any time, not FDIC insured): Rates are holding steady this week

3-year: 5.40% to 5.70% (depends on size of initial deposit)

5-year: 5.85% to 6.15% (depends on size of initial deposit)

Please feel free to email Eric at [email protected] if you’d like to ask any questions or request information on these fixed annuities or other retirement topics that are on your mind.

REAL ASSETS, Invest Like the Ultra-Wealthy 

The value of the US Dollar is plummeting!

From concerns over the debt limit, rising inflation, and interest rates, to increased government expenditure, the falling value of the dollar, or the overall volatility in the markets, we find ourselves in unprecedented times faced with difficult choices our country hasn't seen before.

A defensive tactic that's becoming more popular is converting a portion of your IRA or 401(k) into tangible gold or Bourbon barrels.

The worth of Tangible Assets is mainly determined by three factors: 1) the worldwide demand for these Tangible Assets, 2) the long-term interest rates tied to currencies, and 3) the relative strength of paper money compared to physical assets.

Given these dynamics, gold often thrives in scenarios where loose monetary policies trigger inflationary trends or during financial slumps. In contrast, Bourbon usually flourishes under any economic condition. Thus, Tangible Assets can be viewed as protective measures against severe financial crises while also serving as incremental diversification tools during stable periods.

Allocating funds into the asset class known as “Real Assets” may be a strategy that you should consider.

Ask us how to Rollover a portion of Your IRA or 401k To A GOLD IRA (link below) or a BOURBON IRA (www.bourbon.fund/how-it-works/) and:

• Safeguard your assets from the collapsing dollar

• Incorporate the ‘REAL ASSET’ class into your portfolio like the ultra-wealthy

• Hedge against the current high-inflation conditions

• Protect your retirement assets against economic crises

Just get in touch. We make it easier than ever.

Feedback or Questions?

You’re invited to get in touch with us if you’d like to find out how the Novus Financial Group can help you on your journey to a happy, fulfilling life in Retirement. 

We have a lot of great information, as well as podcasts from our radio show ‘The Financial Insider’, and tools on our website - www.novusfg.com.

[email protected] www.novusfg.com [email protected]

Office: 614-943-2265

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Investment advisory services are offered by duly registered individuals on behalf of CreativeOne Wealth, LLC a Registered Investment Adviser. CreativeOne Wealth, LLC and Novus Financial Group are unaffiliated entities.

The content we provide here isn’t financial advice and cannot be taken as such. Please speak to your financial advisor before making any investment decision. Also, note that every investment comes with its risks and drawbacks. Lastly, we would like to remind you that past results cannot guarantee future returns.

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