Chart of the Month: Social Security Payments Increase

by Kevin Slater, Lead Advisor, CEO, CFP®

Social Security beneficiaries will get a 2.5% raise for 2025! This is not the first time they have increased payouts. In fact, they have a formula - Good old CPI-W!

CPI-W Explains It All (But Not Always in Time)

The US Bureau of Labor Statistics (BLS) calculates this version of the Consumer Price Index (CPI) by measuring the spending of urban wage earners and clerical workers, about 28% of the US population, where most income comes from clerical or hourly wage jobs. The CPI you hear about most often, CPI-U, tracks expenses for a broader sample of the overall US population.

So, what’s wrong with a raise? The problem is receiving it a year after prices have already gone up. This is not a problem when inflation is low, but it certainly can be when prices are jumping in back-to-back years, as they did in 2021 and 2022. Social Security checks were not increasing fast enough for those dependent upon them.


Takeaways: Social Security provides nice inflation-adjusted benefits - however, client portfolios must also be built to cover shortfalls as they appear in the economy.

Giving Thanks for Smart RMD Strategies

by Kevin Rigg, Lead Advisor, CFP®

The holiday season is upon us, a time for joy, festivities, family, and… RMDs? Yes, it's that time of year again when we start thinking about next year’s Required Minimum Distributions from retirement accounts. Like preparing the perfect Thanksgiving feast or wrapping gifts for loved ones, getting ahead of your RMDs now can save stress later.

At SoundView, we're already hard at work estimating 2025 RMDs for our clients who have their own retirement accounts (and will be at least 73 years old in 2025) or who own inherited retirement accounts. We are currently working to ensure RMDs are completed in January, aiming to avoid any potential tax complications. We'll be taking a close look at several key factors, including charitable giving, tax withholding, and the newly clarified rules for inherited accounts.


Charitable Intent

The IRS provides a way to reduce the tax impact of RMDs through Qualified Charitable Distributions (QCDs). Many of our clients take advantage of this strategy, and we have already started reviewing and updating charity lists and QCD amounts for 2025. For those who have not utilized QCDs, here is a quick primer:

• Allows those 70 ½ years of age or older to make gifts directly from their individual retirement account (IRA) to a qualified charity.
• Counts toward satisfying the RMD without being treated as taxable income.
• Often leads to net lower taxes compared to making outright cash gifts.

If you satisfy the requirements and are interested in making QCDs from your retirement account, please let your advisory team know. We can help with the details and ensure that the paperwork is ready this January to complete the QCDs and satisfy any RMDs on your retirement accounts.

Just as many use the holidays to share blessings with those in need, QCDs are a wonderful way to align your financial planning with the season’s spirit of giving.


Tax Withholding

Our tax planning process involves projecting both your current and future annual tax liability. It is possible to withhold funds from an RMD for federal and/or state income taxes, which is usually much simpler than making estimated tax payments throughout the year. Your advisor will discuss these details during your Strategic Planning meeting this fall and let you know if tax withholding from your RMD is recommended in the coming year.


Inherited Accounts

RMDs from an IRA or retirement plan will cease after death. If a spouse inherits the account, they can generally roll the inherited IRA or plan account into an IRA in their own name, which allows them to delay taking RMDs until turning 73. If a non-spouse beneficiary inherits the account, they are subject to different rules, and the requirements have become quite complex in the last several years (if you don’t believe us, check out this chart!). Rest assured, your advisory team is up to date on all the inherited account RMD rules and will help you navigate any annual requirements.

SoundView is committed to helping clients navigate the complexities of retirement account distributions and ensuring their retirement accounts remain on track.

Chart of the Month: The President & the Economy

by Kevin Slater, Lead Advisor, CEO, CFP

It is a presidential election year, and we are hearing many claims from candidates on how well the economy would do under their leadership, as well as accusations of how it would fare under their opponent.

Warning: this month’s chart may not match your expectations.

May I have the (fact) check please?

Presidents Don’t Own the Economy’s Playbook

In August, we looked at how the S&P 500 performed during different administrations; this month, we are looking at the overall economic performance during those same years.

Presidents have a lot less impact on the overall economy than they would have you believe. Often, they tout some sort of jobs or economic initiative, but those are a drop in the bucket of the overall economy.

How often are they “responsible” for a recession? In every case (under Republicans or Democrats), the contributing factors leading up to a recession are well beyond their control. Could any of them have single-handedly staved off the 1970s energy crisis, the 2000s dot-com bust, the great financial crisis, or prevented COVID-19? No.

There are far more actors involved, some with arguably more influence on the economy than the president. From the Federal Reserve to entrepreneurs, from consumers to corporations, and from homeowners to Congress--there are many, many hands contributing to the health of the US economy.

The president does have an important and influential role in our country and the world. Thoughtfully cast your vote this November, but know that economic control is more complex than political promises.

The Two Minute Warning

by Austin Boyce: Portfolio Management; Emerging Advisor; Process Designer

If you’re anything like me, fall equals football time. As I have been transitioning to my new role as a Financial Advisor, I lean on the wisdom and experience of our entire advisory team, especially our three Lead Advisors who often take on the role of coach. Here are some strategies from their playbooks as we head into the year’s final quarter.

Assess Healthcare Needs – Most employer plans, the individual plan marketplace, and Medicare all include November as open enrollment time, so no better time than now to start considering the best plan for the upcoming year. Plans and personal needs change from year to year so evaluating the available options is essential.

Max Out Retirement Accounts – The 2024 contribution limit is $23,000; if you turn 50 before December 31st, you can put in an additional $7,500. You still have a few paychecks left to increase your contribution rate to ensure you max it out (you’ll want to make sure to evaluate the contribution rate again in January to know you are on track to meet the 2025 maximum).

SoundView Advisors’ Head Coaches, Hard at Work

Spend Flexible Spending Accounts (FSAs) – These accounts are set up as use-it-or-lose-it. Some employers may offer a grace period into next year or allow for some carryover. Make sure you know the rules for your account so you don’t lose any money!

Charitable Contributions – If you aren’t itemizing your deductions but are giving to charities, it might be worth considering “bunching” your contributions so that you give multiple years in one year to push you over the itemized threshold.

Tax Bracket Management – If you have had a temporarily low-income year for 2024, communicate that with your advisor (if you haven’t already). We can implement strategies to take advantage of the relatively lower income.

Tax Evaluation – For W-2 employees especially, now is a good time to look at your most recent paycheck and evaluate if your tax withholdings are on track. Better yet, ask your advisor to review your pay stub and see if any changes or estimated payments should be made for the last quarter of the year.

October is an ideal time to implement a strategy for tackling these year-end tasks. Before you know it, the holiday season will be in full swing, and 401k’s, HSA’s, and taxes will be the last things on your mind. Your SoundView team is available to answer questions and help you call the right plays for your financial game plan.

Chart of the Month: Back to Class with the YIELD CURVE

by Kevin Slater, Lead Advisor, CEO, CFP

Traditionally, at the start of the new school year, we review important concepts from the prior year that will be fundamental in continuing our educational journey. Welcome to your fall class! Since “the yield curve” is featured in articles past (here, and here) and present (here), let’s review what the yield curve is and what it can tell us.  

What is the “yield curve”?

Fixed income portions of a portfolio are often primarily made up of bonds- lending instruments that enable corporate and government entities to raise money to fund operations or other projects.  US Treasury obligations are considered among the most secure, liquid assets available, with nearly $900 billion bought and sold every day (per SIFMA).  Treasury Bills, Notes, and Bonds are issued and sold with a variety of maturity dates:  short-term: 1 month to 1 year (e.g., Treasury Bills); medium-term: 2 years to 10 years (e.g., Treasury Notes); and long-term: 20 or 30 years (e.g., Treasury Bonds). 

The fixed-income markets determine what the “appropriate” interest rate for the various maturities should be. This is based on many factors, including Treasury supply and demand for fixed income, economic expectations, US Federal budget deficit levels, and Federal Reserve policy expectations. 

The yield curve itself is a simple graph that plots what the market implies is the appropriate current interest rate (or yield) for each maturity.  Connecting the dots usually creates a sort of curve.

Three Lessons in the Yield Curve

First, it provides an up-to-the-minute market-based valuation for Treasury securities. This helps investors make portfolio-level decisions.

Second, the yield curve is a useful summary of the overall market’s expectations of the economy and interest rates. Higher future rates suggest growth and a stronger economy. Lower future rates suggest economic weakening or a recession.

Finally, while it gives hints on how the general market feels about the economy, it is not a reliable predictor of what will happen in the future.

Why does it matter?

The yield curve is one source we use when projecting returns from various portions of our bond portfolio.  It is also a tool for evaluating returns from other types of investments. Does additional risk result in additional reward?  Ultimately, it helps us guide clients on the asset mix needed to achieve their goals.

Disability Insurance: Plan for Interruptions

by Krista Wallace, Advisor, CFP®

Earlier this summer, I encouraged exercising the freedom to “obligate ourselves by choice,” but we will likely encounter an interruption or two. Sometimes, these interruptions are joyous – a new connection, a trip to a bucket-list destination, or a happy accident.

At other times, an interruption can cause fear as we face uncertainty. Four years ago, a dear friend of mine was facing this: at age 40, he received a heart-related diagnosis which robbed him not just of the ability to earn an income for his family but also his pride. Newly married, depression set in as well. He felt like a failure even though he wasn’t (and isn’t!). He and his wife began the arduous task of filing for Social Security Disability while navigating a drastic reduction to their household income. They had to choose to find new meaning and adjust their goals for their life together while utilizing their available resources.

Disability insurance is one option to replace income from working if you become injured or ill. Your advisor will review your need for and access to this wealth management tool this fall. We will also be clarifying some terminology for you to unpack what a disability is and what it is not.

The Basics

Disability insurance is a form of earned income protection, that safeguards against a loss of wages for a season of time. This could range from a few weeks to years. How you become disabled can impact how long your policy will provide benefits.   

Many employers offer some type of coverage, and many states offer coverage, as does the federal government with the Social Security Disability Insurance Program (SSDI). Standalone policies are also available through many insurance companies. When purchasing a policy, you should consider your occupation, age, and income.

How and When Do I Qualify?

A qualifying disability can have many definitions across policy types. For example, when a child is born, the policy benefit is often determined by the type of delivery and recovery period for the mother. On the other hand, Social Security Disability payments are much harder to qualify for but can last longer and provide access to Medicare benefits prior to age 65. My friend has been fortunate enough to access these benefits, but only after three years of stressful denials, lifestyle changes, and ultimately the need to hire an attorney.

The Risk

A 2022 study by Social Security reported that 25% of 20-year-olds will become disabled sometime before they reach retirement age. So, the risk becomes not if we become disabled but when and how. Our task is to find a way to control and transfer the portions of risk that we can and continue to take care of ourselves in the meantime.

When life interrupts our ability to earn an income, our future goals can go unfunded, and the stability and sustainability of our plans can be at risk. Finding a way to address this risk proactively is incredibly important early in the plan when income generation is critical, but it can continue to be a priority throughout our working lives.

Protecting your income is essential for staying on track with your goals. Talk with your advisor about disability insurance to ensure you’re prepared for any unexpected challenges ahead.

The Fed Cuts Rates! So, Now What?

by Kevin Slater, CEO, Lead Advisor, CFP®

Undoubtedly, by now, you have heard from multiple sources that the Federal Reserve Bank (“The Fed”) cut short-term interest rates by 0.50% last Wednesday (9/18). There are reasonable expectations that they will make further cuts later this year and in 2025.

For consumers and borrowers in general, this is good news as the cost of borrowing is dropping. Mortgages, car loans, business loans, etc. will all be less expensive.

For savers and investors, the feeling is more ambivalent. The rise in interest rates allowed for healthy returns on savings accounts, money market funds, CDs, and short-term Treasuries. Those returns will decrease as interest rates fall.

What about our fixed-income portfolio?

This requires strategy and patience as interest rates fall.  (Learn more Yield Curve basics from Kevin Slater, here.)   We continue to experience an inverted yield curve when short-term fixed-income investments pay higher interest rates than longer-term investments. We expect the yield curve to normalize (when longer-term interest rates are higher than short-term rates) over the coming year or two. How the market moves to get to that point matters.

To Time or Not to Time

At SoundView, we do not believe in timing markets. However, we do believe there are ways to invest that lean toward higher probability events without going “all in.” For example, maintaining well-diversified equity portfolios while investing a higher proportion in US large-cap stocks - we think they will outperform other areas of the market more frequently. We still invest in many of those other areas but with a lower proportion of the portfolio.

With fixed income, we have invested heavily in shorter-term bonds. This has worked well with a few brief exceptions. We do believe the yield curve will normalize, but when and how are still up for debate. If short-term rates fall while longer-term rates stabilize or rise, short-term bonds will outperform long-term bonds for a while. That has been the case for the past few days, but there is more to come as The Fed makes choices and the markets anticipate their impact.

On the horizon

We anticipate one or two trades in fixed-income portfolios in the next three to twelve months. What and when will depend on Fed policy and market responses. We will continue our work to both preserve capital and generate a reasonable return for our investors.

Life Insurance: Plan to Live

by Nichole Harrison Advisor, CFP®

Life Insurance:  Plan to Live

Last quarter, I introduced my mantra, “Plan to Live, then Live the Plan,” and how this idea fosters a sense of freedom in my life. This principle encourages us to envision a future where we actively shape our lives according to our goals and aspirations.

As we dive into the theme of Risk Management this fall, I started to think about whether or not life insurance is a deviation from my plan to live.  Do I really need life insurance? And better yet, do my kids?

I’m sure many of you have asked yourselves these same questions. As advisors, we see all sorts of questions and strategies when clients first begin working with us.

The answer, when dealing with uncertainty of any kind, is it depends.

Your plan to live might include providing financially for those dependent on your income--using dollars today to protect unearned and relied upon dollars of tomorrow. Life insurance can play a crucial role here by providing a safety net for your family, covering expenses, and maintaining their quality of life in your absence

Your plan to live might include legacy gifts to pass to family or charities. Life insurance helps bridge the gap between the income you generate now and the financial support your loved ones may need later.

Your plan to live might include a strategic plan in the present to provide an investment in the future. With this plan, you are making a conscious decision to secure the future today and live in the present. You can focus on living because insurance is doing the job for a different outcome.

The answer to these questions often hinges on the uncertainty we face in life. The need for life insurance is not a straightforward yes or no—it depends on your unique situation and financial goals.

Life insurance can be a powerful tool that complements your plan to live. It’s about extending your influence and safeguarding the future, making sure your dreams and goals continue to benefit your loved ones long after you’ve moved on. As for your children, the need for life insurance might not be as immediately obvious. However, there are scenarios where it can be beneficial. For example, it can cover potential final expenses or medical costs, or lock in a low premium rate for your children while they are young and healthy.  

We are looking forward to our conversations with you this fall about your plans to live and how we can work together to accomplish them.

Chart of the Month: The Market & Politics

by Austin Boyce: Portfolio Management; Emerging Advisor; Process Designer

I don’t watch much TV, but when I do it is usually via a streaming service. I recently made an exception to watch the Olympics live and was reminded of how many commercials there are on live TV.  Also, regarding the timing of the Olympics in relation to the election cycle, I noted that it felt like every other commercial was a political ad.  Can any of you relate?

Many political ads are designed to play on people’s emotions, particularly fear. While those emotions may be valid when voting, they should not impact your investment strategy.

For the vast majority of presidential terms, the market is higher at the end of the term. This may beg the question, “How much impact does a president really have on the stock market?”

Our goal is to help you stay the course and avoid decisions primarily motivated by emotions. Your advisor is looking forward to your investment questions during the Strategic Planning meeting this fall or at any time. 

 

New Employee Spotlight: Danielle Taniguchi

My Journey to SVA
I am thrilled to have joined the SoundView Team as Kevin Slater’s Executive Assistant. I have actually known Kevin for about 15 years now - which is very helpful as I transition into my new role. I began my professional career in several different human resource roles at Starbucks and later Amazon until I decided to take a step back from the large corporate environment. For the last 6 years, I have been the administrative assistant at my church.

               Danielle & Justin

Family
My family is the most important part of my life. I am married to my college sweetheart, and we have 2 young children. I have lived in Seattle my whole life, with a brief venture to Eastern WA in childhood and a short stay in Vancouver, BC, a couple of years ago. We currently live in North Seattle and share a home with my parents.



          Bold & Beautiful Baked Bread

Hobbies
I graduated from Seattle Pacific University with a BA in English Literature in 2010. As an English major, I have retained my love of reading. I love fiction - my favorite authors include (but are never limited to) Abraham Verghese, Anthony Doerr, Annie Dillard, and Stephen King.

I also love exploring our beautiful PNW landscape in the mountains and lakes on hikes and biking excursions.

   Fashionable Butters of the World

My most frequent hobby (outside of reading and hiking) is baking. I love to bake anything and everything, but I enjoy baking sourdough and pastries the most. I even own a sweatshirt with all my favorite butter brands depicted on the front!

While I am only in the second month of my tenure at SVA, I can already see that it is going to be a place where I can grow, learn, and serve clients and the team well. I am a recovering perfectionist, and I long to use my gifts as an organizer, people connector, and all-around high achiever for the GOOD of all!

I am looking forward to meeting many of you in the coming months.

Summer Lovin’: The Sizzling Relationship Between Inflation and Interest Rates

by Kevin Rigg, Lead Advisor, CFP®

Summer lovin', had me a blast, summer lovin', happened so fast...

Just like the whirlwind summer beach romance between Danny and Sandy (in the movie Grease), the relationship between inflation and interest rates continues to heat up our ongoing conversations with our clients.

Last summer, we experienced many hot days with the sun blazing high and temperatures rising—much like inflation, where the cost of goods and services steadily rises over time. On days like these, a “dreamy”, refreshing splash of an ice-cold drink is just what is needed to provide relief—this is like the intervention of interest rates, working to cool things down.

When the economy heats up and prices start to soar, central banks, like the Federal Reserve, step in as the lifeguards to provide some aid to the economic climate. They raise interest rates to temper the economic heat, making borrowing more expensive and saving more attractive. It’s a delicate dance that helps to slow down spending and investment, cooling off rapid price increases. It sounds simple in theory, but how does it play out in the real world?

Tell me more, tell me more, did you get very far?

When inflation began to take hold post-COVID, the Federal Reserve was initially slow to respond based on the premise that higher prices were “transitory” and would come back down as supply shortages and labor imbalances worked themselves out. In early 2022, when it was obvious that inflation remained stubbornly high, the Fed finally began raising rates from its target range of 0%-0.25%. Rate increases continued steadily until they peaked in August 2023. It was an astonishing increase of over 5% in less than 18 months, and surely this would cool off an overheating economy and rein in inflation, right? Not so fast.

Just as any relationship has its challenges, the dynamic between inflation and interest rates doesn’t always play out as expected. While the Fed’s dramatic intervention led to prices coming down in 2023 and, subsequently, tremendous stock market growth and a fourth-quarter bond rally, things stalled out heading into 2024, with inflation staying stubbornly high. This led to market turmoil early in the year as the Fed committed to keeping rates higher for longer while investors tried to digest the impact on stock and bond prices.

Tell me more, tell me more. Was it love at first sight?

While bonds have barely stayed above water this year, stock prices have continued to climb, fueled by solid economic growth and AI-driven gains in the technology sector. Even though bonds have struggled mightily over the past few years due to rising rates, yields are now higher than they have been in years, making expected future returns attractive once again.

The markets believe the Fed is likely to begin lowering rates (sooner rather than later), given recent inflation data and other economic indicators. Lower rates usually stimulate economic growth and support higher stock and bond prices, but as the past few years have shown, predicting both the timing of rate changes and their impact on asset prices is incredibly hard.

In the end, the relationship between inflation and interest rates is all about balance, and the Fed is using its tools to keep the economy neither too hot nor too cold, but just right. Like a perfect summer day, it requires just the right mix of sunshine and shade to create a comfortable and enjoyable environment for everyone.

Financial Freedom on the Trail

by Krista Wallace, Advisor, CFP®

“Freedom is only possible by constantly struggling for it.” ~ Albert Einstein


Some say that financial freedom is found when you do not have to “worry” about money anymore. But even when you think that you have “peaked” in your financial freedom journey, there are still mountains to conquer.

Along our journey, the “I want to have it all” cries of our youth move toward contentment. In our middle years, we wish for more time or energy but climb towards the realization that we are enough and we have enough. At the summit, we are free to tie up our loose ends and find peace.

Financial freedom must be defined as the freedom to obligate ourselves by choice, rather than the freedom from obligation impressed upon us by others.

On the Trail

Take a moment to reflect on your present moment, your location on the trail. Imagine what a life free from continual busyness might look like and consider moving towards the freedom to grow, guide, and give in the present.

In the last six months, I have had two friends in their forties pass away - much earlier than each of them (or their families) had counted on. On the surface, this may seem like a tragedy, but I can promise you that neither of these women thought about an errand on their to-do lists in their last moments. Instead, they were surrounded by family, friends, and lived in the present.

Life can be that simple - but oftentimes, simplicity comes after a struggle.

Don’t Look Back

The struggle is not in eschewing the daily habits and attitudes that brought us to this point in our journey. Quite the opposite, in fact. The struggle comes from continuing to prepare for the future while learning to live in the present. It is a delicate balance of goals and gratitude carefully weighed against our wants and needs. Perhaps now, at the midpoint of the year, we might each begin an ongoing practice of recording and reflecting upon our own priorities. And while building our list, we acknowledge that we have only a finite amount of time.

Consider what changes you could make in your own life to better balance your values and future goals with the urgency of being present today. Consider collaborating with your advisor during your next meeting to work towards finding balance and confidence in your plan.

Let us be brave enough to not only know better, but to do better - together.

That is financial freedom.

Chart of the Month: The Winning Streak Continues

Stock investors have little to complain about in the first half of the year. U.S. Large-Cap stocks outperformed every other asset class in the first half of 2024. International equities have also done well, and U.S. Small-Cap stocks are in the black. Happily, the equity side of our portfolios is well-diversified, with a focus on large U.S. and developed markets.

Bonds, on the other hand, are generally struggling. We have been skeptical about how quickly interest rates might come down and, thankfully, have invested quite differently from the bond index.

Model portfolio returns are already at or near our projected annual long-term average. Let’s hope the second half of the year retains the gain and we finish the year strong.

Chart of the Month: What is the Current Rate of Inflation? 

Chart of the Month: What is the current rate of inflation? 

The price for everything seems to have gone up lately! Are we just pining for the days of 50-cent sodas, or have prices meaningfully increased?  And if they have...how much? 

The rate of inflation is extremely difficult to calculate in real-time. The US Bureau of Labor Statistics generates multiple measures using various formulas, weightings, and sources. Each has data inputs, which may be months behind or make broad assumptions in the estimate. 

Consumer Price Index (CPI) measures the out-of-pocket costs for regular purchases of goods and services to an urban consumer. It is the most widely known price index.  

Personal Consumption Expenditures Price Index (PCE) tracks total cost for goods and services including the share paid by consumers, employers, and governments (i.e. subsidies). This is the index the Fed most closely watches. 

Producer Price Index (PPI) follows prices received by domestic producers for their products and services. It was formerly known as the Wholesale Price Index. 

Core Inflation- focuses on a smaller number of goods and services - ignoring food and energy costs. 

Because of the different inputs, we anticipate different results for each.  Here are the most recent numbers:  

Yes, prices are higher than they used to be, making consumers and businesses uncomfortable. The Fed wants to use its powers to get Core PCE down to 2%.  

Are we headed that way? PCE and PCI are at or near their 12-month lows, suggesting inflation is coming down.  

We may not see fifty-cent sodas again, but hopefully, it will be a long time before they cost $5.00! 

Exploring Risk Management Strategies: A Closer Look at ACAT

By Kevin Rigg, Advisor, CFP®

As we look ahead to 2024 STP client meetings (click here to read April’s article), it is important to refine our understanding of risk management. Often, insurance and risk management are used interchangeably, and terms like "protection" can be misleading. We propose a more precise approach.

We face risks daily and manage them using four main strategies, summarized by the acronym ACAT:

  1. Avoidance: Completely avoiding the risk when possible.

  2. Control (or Mitigation): Reducing the likelihood or impact of the risk.

  3. Acceptance (or Retention): Accepting certain risks when avoidance or control is impractical.

  4. Transfer: Transferring the financial consequences of a risk, typically through insurance.

Consider a typical morning scenario: driving to work. Here's how ACAT applies:

  • Avoidance: Staying home avoids the risk of a car accident but is often impractical.

  • Control: Driving cautiously and minimizing distractions controls the risk.

  • Acceptance: By driving, we accept the inherent risk of an accident. Insurance does not reduce this risk.

  • Transfer: Car insurance transfers the financial risk of an accident to the insurer, though we retain some risk through deductibles.

The financial industry emphasizes risk transfer, but many significant risks, such as those related to health and lifestyle, cannot be transferred and instead are best managed through personal choices and behavior change.

Our goal in financial planning is to help clients make intentional decisions that align with their long-term priorities. Risk management is a key part of this process, and it goes beyond just purchasing insurance. By understanding and applying the ACAT framework, we believe clients will be better equipped to navigate daily risks and protect their well-being and financial health.

 

We look forward to our upcoming conversations to navigate this with you in the fall. 

My Dad Played Chess

by Ben Jennings, Lead Advisor, CFP®

“The apple doesn't fall far from the tree.”
“The acorn and the oak.”
“Like father, like son.”


We know the aphorisms, but they aren't always true, are they?

If you know me, you may imagine you can guess what my father was like. I'm laughing, as that's probably not going to work.

Here’s what I mean: I earned two master's degrees and several professional designations while my dad didn't finish high school. I enjoy classical music and reading, whereas my dad liked honky-tonk and watching Big-Time Wrestling. I work as a financial planner, but my dad was always caught by surprise every six months when he got his normal recurring car insurance bill. I could go on, trust me.

As a child, I was the sort of kid my dad found challenging to understand. My dad was (what we called back then) a redneck. An Arkansas-born truck driver (all the stereotypes you can think of actually picture him pretty well) who ended up with an only son who was a brainiac. I bet it wasn't easy for him; I know it wasn't easy for me.

A Suprise Move

I look back with more empathy for and understanding of his challenges with our relationship than I had at the time. Here’s an example and something that still surprises me: my dad played chess.

Well, at least at some point, he decided to try. One day, he bought me a chess set and spent time with me. I'm confident he discovered the rules from the brief sheet included in the box and taught me as he taught himself. I think we played on a pretty regular basis for a while.

At the time, I assumed he was interested in the game. Looking back now, I see he was interested in me. I think he was grasping for ways to connect with his alien son. He must have heard that smart people played chess and thought he'd see if it would help us.

I promise you it did.


King's Counsel

What's my point? For much of my life, I didn't think my dad had much to teach me - certainly not with respect to money and finances. I mean, the modest entry-level salary of my first full-time job after college was higher than he had ever earned in his life. He constantly struggled to pay his bills. Many car batteries and tires came from Sears because that was where he had a credit card. When he passed away, my inheritance consisted of a 25-year-old pick-up, a beat-up toolbox, a La-Z-Boy, and a 32" television – sounds like the makings of a country-western song to me!

My perspective has changed. Certainly, there are financial lessons I learned from my father, most notably: "Don't do it that way!" But there are positive takeaways, also. Such as:

“If you want something,
work for it.”

“Take care of what you have.”

“If you're employed by somebody, give them a full day's effort.”


People who know me and knew my dad will tell you there are many, many ways in which we're different. But I'm still my father's son, and I still play chess.

As you celebrate Father's Day this month, consider looking back and asking, "What financial or life lessons - positive or negative - can I take away from my father?" You may be surprised!

Employee Spotlight: Sophea

by Sophea Vasquez-Solis, Support Advisor

My name is Sophea Vasquez-Solis, and I have been with SoundView for eight years as a Support Advisor. Without getting into the nitty-gritty, my role as an “SA” is to assist our Advisors in helping you achieve your financial goals. Some of you are very lucky to work with me (Humility is one of our core values!). All kidding aside, I make sure things get done that you might dread doing on your own.

So, on a personal note, here is just a little more about me.

Family

My husband, Neil, and I live in Ballard with our daughter, Elle. Yes, we are in the only child club – though we are lucky to have a few friends and family who share the same family dynamic and can relate to our struggles. Our daughter is an eighth grader and will be in high school this fall (yikes!). She loves fashion and enjoys theater and acting. She’s in advanced drama and recently played Gabriella in High School Musical! She did a wonderful job singing and dancing in the play. Proud parent moment!

As a family, we enjoy seeing the Mariners a few times a year, as well as our annual trip to Orcas Island. And no, we don’t camp. There are many reasons. Let’s just say that Elle and I are not fond of bugs and night creatures.

May is a Meaningful Month

May is a motherload of a month: my workiversary at SoundView, our wedding anniversary, and many family birthdays (husband, mom, and mother-in-law).  Am I missing anything else? Oh, I forgot the most important day of all: Mother’s Day. This year, Elle made me the best card ever - there’s nothing like a handmade card!  Happy Mother's Day to all the moms! 

Fun and K-drama

I love shopping, especially with my daughter. We often go to the mall for a few hours — but sometimes we make it a day. I often tease my daughter by inviting my husband. “Please, Dad, don’t go because you always rush us,” she says, and he responds, “Not even considering it!” with a smile.

Watching K-Drama TV (Korean drama) is one of my favorite things in the world. Renowned for their well-crafted narratives, they are usually 16 episodes per/each season. My favorites are “Crash Landing on You” and “Extraordinary Attorney Woo” - both highly rated and funny.

Thank you for taking the time to get to know me better. Serving the clients at SoundView is a wonderful job, and I’m honored to be able to help in any way I can.

Happy Mother's Day

by Nichole Harrison, Advisor, CFP®

You can't really know where you are going until
you know where you have been.”
~ Maya Angelou

This month prompts reflection on the profound influence of women and mothers in our lives.

In my family lineage, the Strong name carries a legacy of resilience and resourcefulness. These Strong Women epitomized the ethos of "make do or do without," a mindset forged in the crucible of the Depression era. Their days were filled with the art of mending clothes and crafting meals from scratch, instilling values of thriftiness and hard work. In the Strong household, even the use of toilet paper was regulated, a symbol of their aversion to wastefulness. These lessons taught me to navigate life with ingenuity, frugality, and a strong work ethic.

Another influential woman in my life imparted the mantra "plan to live, then live the plan." Rather than settling for what was at hand, she challenged me to envision a broader realm of possibilities. Her guidance illuminated a path where resourcefulness and ambition intersected, fostering a sense of freedom and potential. Through her wisdom, I learned the power of strategic planning and honoring core values.

Two additional figures hold significant importance to me: my past and future selves.

My past self, though imperfect, laid the groundwork for my present. She pursued her passions unabashedly, embracing change and learning from mistakes. While prone to procrastination disguised as spontaneity, she also harnessed the importance of consistency and self-commitment. Getting to know her has deepened my appreciation for her resilience and determination.

My future self embodies wisdom and experience yet to be attained. She navigates life with grace and insight, having achieved milestones I aspire to reach. Recognizing her strengths and vulnerabilities, I strive to care for her by making mindful choices in the present. Whether it's maintaining a healthy lifestyle or securing financial stability, I act with her well-being in mind.

Reflecting on the lessons from these women—past, present, and future—shapes my present approach to life. Their resilience, wisdom, and foresight inspire me to embrace challenges with courage and compassion.

As we honor the community of mothers in our lives, let us also extend that same care and reverence to ourselves. Happy Mother’s Day!

Chart of the Month: College Graduate Prospects

by Kevin Slater, CEO, Lead Advisor, CFP®

Another graduation season and another slice of the American population begins their professional journey. This month we share data from the US Census Bureau on the financial rewards of their studies and hard work.  

The chart shows median earnings. Actual experience will vary depending on the career one pursues, their employer(s), and where they live. For example, Michael Jordan was a geography major. However, science, computer science, and engineering majors generally have more lucrative opportunities.

While future compensation isn't the only reason to choose a major, it significantly affects expectations about lifestyle, potential further education, and financial support needs.

P.S. I wonder why the Sociology Department at my alma mater never shared this chart....

Chart of the Month: Where Things WERE

by Kevin Slater, CEO, Lead Advisor, CFP®

Markets were very optimistic in Q1 with hopes for a drop in interest rates and a soft landing for the economy. With the sole exception of US bonds, all the major liquid asset classes were positive. Large Cap US stock continued the dominance it exhibited for most of the past decade while bonds continued their unfortunate spot at the bottom of the table. 

Key: 
S&P 500 = Large Cap US Stocks 
EAFE = International Developed Market Stocks (excluding US) 
Small Cap = Small Cap US Stocks 
EM = Emerging Market Stocks 
Commod. = Commodities 
Fixed Income = US Bonds 
Balanced = 40% US Large/5% US Small /10% Intl/5% EM/35% US Bonds/5% Commodities 

Early in Q2 however, inflation has again proven stubborn, and not surprisingly, the markets have reversed course. Most markets are still ahead for the year. 

In SVA portfolios, we use index funds for most equity positions, so equity portions of portfolios will track their index somewhat closely. On the fixed income side, we are invested with shorter duration than the index which has proven beneficial to returns. 

We are considering a minor change to our portfolios, not of the market timing sort. Within our greater US large cap allocation, we are exploring investment in an index based on company profitability, debt exposure, and free cash flow. If there is a recession or a significant correction, these indicators may allow for outperformance against the broader index.