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While we often think that it is only seniors that are targeted by scammers and fraudsters, it is important to be aware that anyone can become a target and incur financial loss. In fact, according to the Federal Trade Commission, the largest demographic of victims of cybercrime were aged 30-39, followed by victims aged 40-49. By keeping informed and up to date, you can protect yourself from becoming one of the nearly 2.4 million people who are scammed annually. Romance Scams As more and more people are looking for love online, romance scams have become more prevalent. Norton estimates that in 2023, there are approximately 57 million people using dating apps. Regardless of the type of romance scam, most scams consist of a cybercriminal creating a fake profile using a photo of an attractive individual. They seek out someone to target and begin a fast-paced relationship. Once the victim is emotionally invested, the cybercriminal will ask for money. Often there is a story about an emergency or tragedy that compels the victim to send money, gift cards or cryptocurrency. Once payment is received, the fraudster disappears and moves on to the next victim. People who are recently widowed, divorced or otherwise lonely may be ripe for the picking when it comes to these types of scams. Be aware of red flags including someone who is interested in a long-distance relationship, someone who has a reason they cannot meet you in person, or someone who quickly professes love without meeting you. Don’t share anything too personal, including compromising photos that might haunt you later. Never buy plane tickets, gift cards, or send money to a person you have never met in person. When in doubt, ask someone you trust for a second opinion about the situation. Grandparent Scams If you are like most grandparents, you would do just about anything to help your grandchildren, especially if you feel they are in trouble or danger. In a grandparent scam, fraudsters use social media to gather information about your family. The cybercriminal then places a phone call or email impersonating a family member stating they are injured or arrested and need money immediately. They often insist that they don’t want you to call their parents. They may pass the phone to a “hospital employee” or “attorney” who can take your payment over the phone. Grandparent scams are not new, however advancements in technology can make these more sophisticated and believable and have widened the target market beyond seniors. Artificial intelligence technology allows for scammers to even replicate a voice. Phishing Attacks Phishing is when scammers create emails or text messages to trick you into providing your personal information including passwords, account numbers and Social Security numbers. It is common that these emails and text messages are compelling and may even use the logos of real companies that you are doing legitimate business with. They may request that you click on a link to go to their website which may install invasive software called malware onto your computer. With these scams, the devil is really in the detail. If you look closely at these, you may notice inconsistencies that will alert you that it is a scam. Be on the lookout for emails from companies you don’t do business with, emails with generic greetings, questionable email addresses, a link to update your payment information, or anything else that looks suspicious. Don’t call the number on the email to verify the request. Instead, compare it to your statement or do a reverse lookup on the number to see if it comes up as a spam number. Cryptocurrency Scams With the rise in interest in cryptocurrencies, many people are asking how they begin to use and invest in crypto. Because there is so much confusion about what it is and how to use it, cryptocurrency scams are on the rise. If you are going to use cryptocurrency, it is important to know about what scams are gaining popularity and how to avoid them. Some good rules to follow are to never do business with someone demanding payment in crypto. No legitimate business will only offer this method of payment. If someone wants you to invest in crypto, be on alert. Scammers often guarantee big profits and fast profits. If someone is making a promise that seems too good to be true, it is. Be aware that cryptocurrency scams are commonly found on dating websites. Protect Yourself Most scammers will cast a wide net of potential victims hoping for a small number of people to fall for it. The more informed you are, the less likely you are to fall victim. Keep updated on the latest scams by subscribing to Consumer Alerts at consumer.ftc.gov. Remember, to guard your identity. Never give credit card information, or provide personal information such as address, social security number or date of birth to someone calling you. Never allow someone claiming to be tech support to establish a remote connection to your computer. Don’t click on pop up messages while online and keep your security software up to date on devices. Understand that places like the IRS and Social Security Administration will not attempt to call you asking for personal information. If you come across a scam, report it. File a report with local law enforcement and the Federal Trade Commission. If you are questioning if something is a scam, it probably is. In this case, the best scenario is to shut down the situation immediately, then report it. Although it can be scary, in most cases, if you haven’t given up any information, a fraud situation is likely avoided.   Rebecca Agamaite Investment Advisor Representative  Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife. She earned a Masters of Business Administration degree (with an emphasis on finance) from Concordia University. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin.   Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security.  Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses.  Please do not send orders via e-mail as they are not binding and cannot be acted upon.  Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation.  This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services.  Any subsequent, direct communication by AMG  with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.  A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

If this blog feels a tad familiar, it is, but stick with us. Since the cost of groceries has continued to increase, we wanted to continue the dialog again to help you with the cost of feeding your family. Although inflation is beginning to stabilize, food costs are still on the rise. According to data supplied by the US Department of Agriculture, in 2020 a family of four which included two adults and two small children, who were moderate spenders, spent about $934.90 per month. In 2023 this same family is spending about $1173.50 per month. This is a notable rise; however, it is only a hypothetical scenario. In all actuality, if we evaluate your family from 2020, your kids have grown and might be eating more or perhaps your family has expanded. Growing families have been hit particularly hard by the increase in food costs. While prices have gone up, some of the products you frequently buy may also be getting smaller. “Shrinkflation” is not just an urban legend. You may have noticed that the pack of cookies that you have always bought looks just a bit different. The cookies are smaller or there are fewer in the row. Or perhaps you noticed the bottle of dish soap looks just a little less full than the last time you bought it. Snack chips are notoriously known for this phenomenon. When consumers take note, they release a new larger size at a much higher price. “Shrinkflation” only adds to the stress of increasing food costs. With so much stacked against you, how do you keep it in check at the checkout? Here are some tips to help you. Eat Food In Season And Buy Food Grown Locally Those who live in the northern regions of the country know just how expensive things like fresh berries can be in the cold months. Fortunately, costs drop significantly as the growing season expands across the country. Local food travels fewer miles which results in less transportation costs and a fresher product. Check out local farmer’s markets and garden stands, or purchase Community Supported Agriculture (CSA) produce or meat boxes from local farms or co-ops. Another way to lower your food budget is to plant a garden, not only can this help lower the cost to feed your family, but it is also a great outdoor activity for everyone including children. Finally, learning to preserve larger quantities of food in season by freezing and canning for use over the winter can allow you to enjoy your favorite foods throughout the entire year and can help cut down on food waste. Plan Your Meals And Shop With A List We all know it is a bad idea to shop on an empty stomach, but shopping without a plan can also put all sorts of extras in your cart. Before you head out to shop, make a list of each week’s meals and see what items are already on hand. While you are taking inventory of your pantry, make a list of the things you are running low on. Keeping staple items on hand can help you avoid unnecessary extra trips. Shopping every other week can also save you time and money. Once you arrive at the store, shopping from a list will help you to avoid impulse purchases or just walking down the isles putting unnecessary items in your cart. Track And Compare Prices On Items You Buy Regularly If you track the prices on items you buy frequently, you will be able to evaluate if something is a deal or not. Most stores rotate their sales and soon the patterns of pricing will be easy to anticipate. Shop items featured in the weekly flyer and use store loyalty programs and coupons. Check out the clearance area and fresh items reduced for quick sale. Only buy reduced items you can use right away or freeze. Don’t be afraid to switch up where you shop or buy store-brands instead of name-brand items. If you are willing to think outside the box, you may find great deals at dollar stores, scratch and dent liquidators, Amish bulk stores, and discount grocery stores. Buy in larger quantities and portion out While a 5.3 oz cup of Greek yogurt costs $1.49 or $0.28 per oz, the same yogurt in a 32 oz container costs $5.79 or $0.18 per oz. Convenience can add considerable cost to items. Instead consider just scooping out the yogurt in a bowl or a single serve food storage container. The same thing applies to everything from snacks to meat. If a bulk pack is too much to use, you can always break down the large packages into smaller portions that will fit your needs. Use food storage containers, storage bags, and freezer paper to store these small portions. Over time these savings can really start to add up. Avoid Waste If your crisper drawer is where green things go to die, you are also wasting the green in your wallet. If your plans change often or find yourself not eating your produce fast enough, consider frozen or canned produce instead. It typically costs less and has a longer shelf life. Also don’t make too much when preparing meals especially if you or your family doesn’t like leftovers. Cook just enough to satisfy your family’s hunger. If you do cook extra, reimagine your leftovers into another meal. Extra rice can easily be made into fried rice, left over steak can become steak and eggs, pasta can be added to soups and salads. Baked chicken can become chicken salad. If you still find yourself with leftovers, place them in the freezer to use them later when you need a quick meal. While rising food prices can cause a lot of stress to your budget, putting some strategy into your spending can not only save you money, but it can also save time and reduce food waste as well. Knowing what you have on hand, what you need and what you are spending will put you in the driver’s seat despite high food costs.   Rebecca Agamaite Investment Advisor Representative  Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife. She earned a Masters of Business Administration degree (with an emphasis on finance) from Concordia University. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin.   Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security.  Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses.  Please do not send orders via e-mail as they are not binding and cannot be acted upon.  Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation.  This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services.  Any subsequent, direct communication by AMG  with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.  A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

While the term Sandwich Generation may be unfamiliar, you, or someone you know is likely part of this growing demographic. Between the trend of people starting families later and grown children leaving the nest later, many middle-aged adults are left feeling like they are stuck in the middle of people needing their help. This pinch can leave people feeling stressed out but can also have financial ramifications. If you find yourself sandwiched, here is what you should know when it comes to your financial future. Financially Supporting Others Although you may think of the day-to-day things that you do to help your loved ones such as running errands, providing transportation, or advocating for health care, many people also provide financial assistance for their loved ones. According to the U.S. Census Bureau, nearly 4.3 million adults provided financial support to their parents. This is roughly the same as the amount of people who pay mandatory child support. AARP reports that aside from money contributed to aging parents, nearly half of parents provide money to adult children over age 25. Self-Sacrifice for the Sake of Others While both men and women are part of the Sandwich Generation, the burden of caring for surrounding generations falls heavily on women. For women in the workplace, this can mean forgoing promotions, taking lower paying jobs that offer more flexibility, or even stepping away from the workforce temporarily. The pay gap between men and women is narrowing, but women often choose caring for family over financial advancement whether it is a long-term arrangement or a temporary situation. Caring for others can significantly affect what you save for retirement. Less saved and less growth on that money can create a huge gap in money for retirement. Time away from work or lower income can also affect pensions and Social Security. Since the squeeze of caring for others is a temporary situation, it is important to not lose sight of your own long term financial goals. Looking out for Loved Ones Most of us will come to a crossroad where tasks as simple as managing daily expenses or health care become difficult. People that are part of the Sandwich Generation often help their parents by becoming financial or medical advocates for their parents. When this happens, it is important to have the right authorization in place well ahead of time. Without planning, you may find yourself in a bad spot if your family member needs you to take over and they are unable to sign the necessary forms. Estate planning documents are typically drawn up by an attorney, however hospitals, doctors’ offices and financial institutions often have their own forms that they require. Here are a few documents that you may encounter: POA (Power of Attorney) grants someone the authority to conduct business on your behalf. Once someone has passed, this arrangement stops immediately. POD (Payable Upon Death) or TOD (Transfer on Death) is listing a beneficiary on accounts. If someone passes away and has a POD/TOD on an account, the account will transfer directly to the beneficiary listed. This is regardless of what is stated in a will. POD/TOD can be put on anything from a checking account to real estate. Health Care Directives tell others what kind of heath care you prefer or prefer to avoid. Although these topics can be uncomfortable, people should talk about how they should be cared for. Health Care Directives clearly spell out instructions about care if a person is close to death or has experienced a medical event they are not expected to recover from. Wills are documents that spell out the wishes for your property as well as outlining the care of dependent children and pets. If you are feeling sandwiched, there are resources that can help. Getting in contact with your local Aging and Disability Resource office is a great first step to helping parents. Aside from programing that can help low-income individuals, they also have resource libraries, educational events, and some have medical equipment that you can borrow for short-term needs. Your own financial and tax advisors may also be a great resource. You may feel hesitant to ask about your family members’ situations but know that they are here to help you navigate all of the situations that arise during your phases of life.   Rebecca Agamaite Investment Advisor Representative  Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife. She earned a Masters of Business Administration degree (with an emphasis on finance) from Concordia University. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin.   Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security.  Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses.  Please do not send orders via e-mail as they are not binding and cannot be acted upon.  Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation.  This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services.  Any subsequent, direct communication by AMG  with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.  A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

If you are like most Americans, you no longer or perhaps have never received your pay in the form of a paper check.  American Payroll Association estimates that while some people are still paid with paper checks, an overwhelming 93% of employees receive their paycheck directly deposited. Additionally, some employees use payroll cards and reloadable prepaid debit cards to receive their pay. The shift from old school paper checks to direct deposit has caused us to be less aware of all the deductions that come off the top of our checks. It is this unawareness that can cause issues in the long term. For most people who get paid through direct deposit, pay stubs are available through an employee portal. For those who are paid a salary, the amounts won’t change much from check to check, however it is important to make sure that tax is being withheld appropriately and deductions for benefits such as health insurance and retirement savings are accounted for. You should also make sure that vacation, sick, and personal days are both accruing correctly and being applied correctly when you take them. For those paid an hourly rate, the same applies, but additionally you should verify hours worked and hours paid match and that any overtime or holiday hours are paid at the appropriate rate. Those paid commissions should not only review their paystubs for the basics, but they should also audit their sales and make sure that all commissions are paid out appropriately. Understanding Tax Withholding In 2017, the Tax Cuts and Jobs Act became law which removed personal exemptions while increasing the standard deduction and expanding child tax credits. Because of the significant amounts of change, the W-4 that was familiar to most of us was replaced with an updated W-4. The new form differs from past forms in that it does not require you to figure out your tax exemptions. Some employers will require you to fill out a new W-4 annually, however even if they don’t, it is a great idea make sure you are withholding enough regularly. You probably will be prompted to look at if you got a surprise at tax time. If you have too large of a refund, you may need to lessen your withholding. If you owed a large amount, you would want to talk to your tax preparer to understand the root of your tax bill. While it is possible that you may have had something out of the norm happen within the year, you may have had a change to your tax situation. Marriage, divorce, death, babies, and kids growing up can cause the need for you to adjust how much you are withholding from your paycheck. If your income has changed, you may also need to check your withholding. Perhaps you took a new job, got a raise, or took a second job. Note that each job will come with its own W-4. If you have income from other jobs, have a spouse with income or have other sources of income, you may need to withhold tax differently than what the W-4 indicates. The new W-4 has worksheets for those situations. The case for being proactive Because our paystubs are out of sight, they are often out of mind until we have neglected them long enough to cause a big hassle. It only takes a small issue to snowball into a much larger one. Taking the time to review your paystub regularly can really help you in the long run. If you have questions about filling out your W-4 or how much you need to withhold, your payroll professional can be a great resource. If they are unsure how to help you, they may direct you to https://www.irs.gov/individuals/tax-withholding-estimator. This can be a great option to help you figure out how much tax you should withhold, however many people find this calculator to be difficult. Also, missing or incomplete information can lead you astray. Your tax professional can help you to be sure that you are on the right track as well as help you to increase your tax efficiency and help you to understand how changes in tax law affect you.   Rebecca Agamaite Investment Advisor Representative  Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife. She earned a Masters of Business Administration degree (with an emphasis on finance) from Concordia University. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin.   Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security.  Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses.  Please do not send orders via e-mail as they are not binding and cannot be acted upon.  Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation.  This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services.  Any subsequent, direct communication by AMG  with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.  A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

Credit cards can be an important part of managing your financial situation when used correctly, but what do you need to know about being smart when it comes to credit cards? Making credit cards work for you can be confusing, but here are some tips to help you get started. Choose 0% According to Lendingtree, the average credit card interest rate in the US is 23.84%. Remember that this is an average. If you have great credit, you probably have a better rate and if your credit is poor, it can be nearly 30% interest. If you are like most people, this may come as a surprise to you, but credit card rates have steadily increased over the past decade. The good news is you can avoid interest if you do not carry a balance on your credit cards. By paying off your charges monthly, you will not pay any interest regardless of the rate of your card. Paying your bill on time you will also show good credit habits and avoid late fees and penalty interest rates. If you are making a purchase of a big-ticket item, such as furniture or appliances, go ahead and use a payment plan that will allow you to make payments over a set amount of months interest free, but do pay it off before the end of the promotional period. These types of cards will often give you a set amount of time interest free, however will charge interest back to the date of purchase if you fail to pay it off within that time. Use it as a tool Using a credit card can streamline how you spend money day to day, but it must be used responsibly. Some people choose to pay for most expenses on their credit card and pay only one bill at the end of the month to maximize credit card perks such as cash back or travel benefits. Credit cards are one of the safest ways to conduct business such as online purchases and often have tools to protect you from fraudulent activities. When using a credit card, you protect money that you have in your bank account should someone take your card number while you are making a purchase. Compared to the process of reporting fraud on your bank account, reporting credit card fraud is fast and hassle free. They will typically reverse the transaction and shut down the card quickly. You will have a new number and new card within days. Credit cards can also help you track your spending, plan your budget, and monitor credit. Many credit card websites offer you the ability to track your spending and break it down by type. This can help you to diagnose your spending habits and determine how to be smarter with your money. Live credit monitoring and score modeling is often found on credit card websites. For younger consumers or those trying to restore their credit, this can be a powerful way to move you forward financially. Avoid Pitfalls Credit Cards can offer a lot of great perks ranging from cash back to points that you can redeem for travel. It’s important to read the fine print on these types of cards to determine if you can make the benefits work for you. For example, airline cards are notorious for offering free baggage, companion flights or statement credits. This can be very attractive especially if you are looking to save money on your next vacation. Most of the major airlines offer similar cards, although they are advertised as “no annual fee”. If you read the fine print, you will see that they carry significant fees after the introductory period. So, you may get some perks, but if you keep the card past the first year, you may find a hefty annual fee after that. The better the perks, generally the higher the costs associated with the card. Now, if you fly more than a few times per year on the same airline, the $100 annual fee may be less than paying all the baggage fees. Department store cards often offer coupons and discounts to card holders. These are generally designed to keep you shopping on a regular basis. If you get free shipping and a 10% discount on your order you will come back for more. If they sweeten the deal by giving you a coupon for your next order and give you a range of dates to use it by, you may find yourself shopping again in a week or so. Before you know it, you may find yourself shopping way more than what you would have if you were not constantly being enticed to shop. If you must spend money to save, you may not actually be saving. If you shop too much, you may end up with a balance that you didn’t intend to have. Credit card companies would not offer enticing benefits if the deck wasn’t stacked in their favor. It really is about assessing the benefits and costs and determining if there really is a savings, or if it is just another way to win your business or cost you money. While some consumers have mastered the art of using credit cards, the Federal Reserve Bank of New York reports that Americans owed $986 billion dollars in credit card debt at the close of 2022. Remember, interest paid on unpaid balances will very quickly outweigh any perk a card has to offer. If you find yourself tending to accumulate debt while using cards, it may be better to just stay out of the game. Rebecca Agamaite Investment Advisor Representative  Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife. She earned a Masters of Business Administration degree (with an emphasis on finance) from Concordia University. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin.   Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security.  Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses.  Please do not send orders via e-mail as they are not binding and cannot be acted upon.  Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation.  This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services.  Any subsequent, direct communication by AMG  with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.  A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

Whether you are shopping for a new advisor, or you have had the same advisor for years, it is important to understand how your advisor and their firm generate revenue. While cost only seems to matter if you fail to see value in the services you are receiving, there are several reasons why it is good to understand the fee structure of your investments. Read more to learn about fee-based vs.  fee only financial advisors. Traditionally, the finance industry was made up of broker-dealers that hired a sales force to sell products. Registered representatives of these broker-dealers earn commission on products that they sold to clients. Products range from loaded mutual funds, brokerage accounts and insurance products such as annuities and life insurance. When transactions or trades are made, the advisor receives a commission. If no transactions are made, the advisor does not receive compensation. Advisors who work for broker-dealers are often referred to as brokers or registered representatives. In recent years, the industry has shifted, and more advisors are working with their clients under fee-only advisory platforms, managing assets for a fee and providing financial planning for a fee. Fees in most cases are assessed based upon how much money is being managed or how many hours are spent on planning, not on how many trades are made. This type of business is offered by a Registered Investment Advisor. Registered Investment Advisor or RIA firms focus on implementing advice driven solutions and work under a fiduciary standard. Investment Advisor Representatives are required to put their client’s best interests before the interests of the company, firm, and themselves. Some firms will choose to register as both a Broker-Dealer and an RIA firm. These dually registered firms blur the line between the two business models which can really be confusing to investors. Advisors who work under this model often refer to themselves as Fee-Based Advisors. They may choose to manage money or prepare financial planning for a fee and sell products. They can switch their role with a client at will and it can be difficult to determine when products are being sold and when fiduciary advice is being given. This can create a conflict of interest for an advisor who must choose between selling a product that creates commission or acting as a fiduciary. Some of the most expensive investments generate high commissions for advisors, which can mean higher costs for clients. Portfolios that have higher costs will need to be invested more aggressively to overcome the expense. If costs are excessive, portfolios may not be able to overcome the expense and may have disappointing returns. How can you avoid choosing advisors with possible conflicts of interest? Choose Fee-Only. Fee-Only Registered Investment Advisors are required to always work under a Fiduciary Standard. They do not sell products, are not registered as sales agents for any investment company. They do not use investments to generate commissions and are never compensated by anyone other than their client. They are not swayed to choose one investment over another based upon how they will be paid. It can be hard to determine whether an advisor is a Fee-Only Fiduciary or Fee-Based Dually Registered Advisor, but you can determine the difference by asking the right questions. Check out this Fiduciary Questionnaire that can help you differentiate between Fee-Only Fiduciaries and Fee-Based Advisors.   Rebecca Agamaite Investment Advisor Representative  Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife. She earned a Masters of Business Administration degree (with an emphasis on finance) from Concordia University. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin.   Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security.  Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses.  Please do not send orders via e-mail as they are not binding and cannot be acted upon.  Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation.  This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services.  Any subsequent, direct communication by AMG  with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.  A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

Changing jobs can carry a mix of emotions depending on the reason for the career change. Regardless of the reason for the job change, one thing everyone needs to know is what their options are with their 401k account from a previous employer. The U.S. Bureau of Labor Statistics estimates that Americans will hold over 12 jobs over the course of their career. While younger workers are more likely to move around, the average job in the U.S. is held just over 4 years. Compensation and advancement are often the largest driving factors that leads people to make job changes. As people move from one phase of life to the next, sometimes they underestimate the importance of taking their retirement savings with them. While it may seem insignificant, making a conscious decision about your retirement nest egg can help you to keep moving forward financially. After you leave your job, you have four options for your old 401k account. Option 1: Leave your 401K where it is In most cases, you can leave your 401k in the former employer’s plan.  This option requires the least amount of work since there is no additional paperwork needed. Also, your account is still able to grow tax-deferred until you withdraw funds. While this option might be an easier option it may not be the most advantageous. One of the limits of a 401k plan is that there can be fewer investment options. Also, 401k maintenance fees may be passed on to you, which can increase the expenses of the 401k plan. Another restriction is that you cannot contribute to a 401k once you no longer work for that employer. Finally, it can be complicated to keep track of where you have funds if you have multiple 401k with past employers. Option 2: Roll it over your 401K to your new employer If your new employer has a 401k and the plan allows rollovers, consolidating your 401k from your previous employer with your new employer may make it easier to keep track of where your funds are located.  Earnings will accrue tax-deferred until you withdraw funds. Some 401k plans allow loans, by rolling over your previous 401k to the new one you may be able to borrow against that balance in the future. The are some potential downfalls of rolling over your 401k to a new employer. Most 401K plans have limited investment options.  Those investment options can be replaced by the plan trustee without your approval. In addition, record keeping and administrative fees of the plan may be passed on to you. Option 3: Cash out your 401k Cashing out your 401k is another option for an old 401k. While this option allows you to gain access to your funds, it usually carries a penalty if you don’t meet certain qualifications. If you withdraw the money from your 401k and do not meet the required qualifications for a withdrawal (such as age, typically 59.5, financial situation, or disability) you will be required to pay a penalty for the early withdrawal. In addition to the early withdrawal penalty, income tax may also need to be paid on the withdrawal. Option 4: Rollover your 401k to an Individual Retirement Account (IRA) Rolling your 401k to an IRA allows for the most flexibility with your investment choices. This can give you access to mutual funds, exchange traded funds, stocks and bonds, to name a few.  You may also have greater flexibility with investments that provide income, such as dividends and interest.  IRAs can provide for greater flexibility with withdrawals and various tax withholding.  IRAs continue to allow for tax deferred saving. There are some possible disadvantages to using an IRA.  You are not allowed to take a loan against an IRA.  Depending on your investment choices there could be upfront commissions, high annual fees or even back-end charges limiting you from withdrawing money from the IRA within a certain period of time. It is important to remember everyone’s situation is different. When deciding what is the best option for you, it is wise to research all options and understand the fees involved with those options. These decisions are difficult, and you may want to reach out to a financial professional to assess your situation. In doing so, we suggest you work with a fiduciary, an advisor that works in your best interest. Shay Benedict Trading Specialist Shay joined Advisors Management Group in June of 2020. Shay works as a Trading Specialist for AMG. He works alongside the advisors to trade client portfolios. He helps to provide continuous improvement within the trading department, to ensure we meet our client’s needs. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin.   Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security.  Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses.  Please do not send orders via e-mail as they are not binding and cannot be acted upon.  Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation.  This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services.  Any subsequent, direct communication by AMG  with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.  A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

Whether you are planning to do your own, or hire a pro, you are probably getting ready to file your tax return soon. You may wonder why you need to file a tax return. Think of your return like this, you probably made money from a few different sources (income) last year. You probably paid some tax along the way (withholding). You probably get some tax breaks (deductions). Your tax return adds up the income, subtracts off your deductions and determines how much tax you owe. This amount is compared to what you paid throughout the year. If you paid too much, you get a refund. If you didn’t pay enough, you have an amount due. As you assemble your documents, it can be helpful to understand what documents you should be looking for and how they tell the story of your prior year. Income Forms If you are an employee of a company: If you are employed, you will likely get a W-2. This form reports how much you made, taxes withheld and voluntary deductions such as health insurance and retirement savings. If you work for yourself: 1099-NEC is issued to those who work as consultants, independent contractors and those who take temporary assignments such as traveling health professionals. If you have bank accounts, investments or cashed savings bonds: If you have savings, be on the lookout for several different 1099 forms. 1099-INT reports interest earned. 1099-DIV reports dividends earned. 1099-B reports stock sales. 1099 Composite is a combination of 1099-B and 1099-DIV. These are commonly associated with checking, savings, and brokerage accounts. 1099-R reports income that comes from retirement accounts such as IRA’s and pensions. Note that if you rolled over a 401k to an IRA, you may receive a 1099-R even though you did not have a taxable event. If you are disabled or retired: If you are receiving Social Security payment in retirement, due to disability or as a survivor’s benefit, you will receive a SSA-1099. If you were unemployed: If you received unemployment benefits, you should expect a 1099-G. If you were a lucky winner If you won money or a prize as the result of a contest or gambling, you should expect to receive a 1099-MISC or W2G. Deduction/Credit Forms Forms for Homeowners 1098 reports mortgage Interest, Property Tax Bill. Education If you have a student with college tuition, their school will issue a 1098-T. Dependent Care If you have a child or qualified dependent in daycare or other dependent care, be sure to get a receipt from your provider that includes the EIN/Social Security number of the care provider. Renters Rent payments can be used as a deduction or used towards a credit on some state tax returns. In some cases, you may need a rent certificate from your landlord. Charitable Donations Due to the increased standard deduction, most people will not be able to use charitable donations on their federal return however, your state may offer some tax benefits for donations. Help for Those in Need If you have tax questions or need help preparing your taxes, but are unable to pay for help, check out resources in your community that aid low-income individuals, disabled and retired people in navigating simple tax returns at low or no cost. Organizations like Goodwill, VITA and AARP have volunteers on hand who have tax knowledge and can help those in need. Final Thoughts Many people find tax season to be stressful. Keep in mind that with a little up-front organization, tax season can be a breeze. Before gathering your documents for this year’s return, you may find it helpful to review last year’s return to see what forms you had last year. Use this year’s completed return as a planning tool for the year ahead. If you owed too much money or got too much back, consider adjusting your withholding. If you have deductions that you will lose in the coming year, you may also need to change your withholding. Small changes early in the year can help you avoid the unexpected next year.   Rebecca Agamaite Investment Advisor Representative  Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife. She earned a Masters of Business Administration degree (with an emphasis on finance) from Concordia University. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin.   Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security.  Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses.  Please do not send orders via e-mail as they are not binding and cannot be acted upon.  Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation.  This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services.  Any subsequent, direct communication by AMG  with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.  A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

In 2022, in attempts to stop runaway inflation, the Federal Reserve increased Federal Funds rate 7 times increasing rates a total of 4.25%. This is perhaps one of the most aggressive increases in recent history, but what does it mean for you? Let’s take a little look at how the Federal Reserve works and how the process of monetary control affects you. Despite what the name may suggest, the Federal Reserve or “The Fed” is not a part of any government. Rather, it is an independent central bank that serves our country.  Most countries have a similar central bank that controls the money system for their country. Our own central bank was approved by Congress under The Federal Reserve Act of 1913, and it was signed into law by Woodrow Wilson. Although is not part of the government and operates primarily independently of federal government, it is overseen by the board of governors, a group chosen by the President of the United States and approved by Congress. The job of the Fed is to serve as the bank to retail banks assisting in the movement of money in the US and beyond. It is broken into 12 Federal Reserve Districts that cover different areas of the country. District Federal Reserve branches are the bank at the top of the system that includes your local bank or credit union. Your bank uses the Fed to obtain money for lending and for the process of clearing transactions. The Fed also controls the US’s money supply through monetary policy. Think of monetary policy like a big dam. Money sits in the reservoir behind the dam and The Fed allows for money to run down the dam structure and down the river to you and me.  When the Fed uses loose monetary policy, there is more money flowing down the line and when they are tightening monetary policy, they are holding more in the reservoir. Different monetary control styles are used during different times as the economy moves through different phases of the economic cycle. 2022’s Fed rate hikes are an example of tightening monetary control. One of the more noticeable effects of the 2022 Fed rate hikes was the quick changes to the real estate market. Rate hikes caused an increase of activity as buyers became fearful that rising rates would make payments less affordable. The flurry of activity quickly gave way to a slowdown as some buyers either edged out of the marketplace or decided to hold off. Money became more expensive to borrow keeping more of it in the reservoir. You may have felt frustrated if you have ever been trying to make a major purchase during the recent rising interest rates, but there are other things at play during changes in monetary control. Ultimately, 2022’s rate hikes were aimed at lowering the unstainable inflation which affects the prices of everything we buy. Although it is unlikely to quickly bring the price of your eggs and milk down, the hope is that we would see prices begin to stabilize, a return to a more normal inflation rate. There are two sides to the coin when it comes to monetary policy. While borrowers began to see the effects of higher interest rates, those saving also did. For the first time in a long time, rates on savings accounts, CDs and bonds began to climb. As rates continue to climb, it is expected that fixed rates will be beneficial to people wanting to save. This can be a welcome sight for those savers who are becoming exhausted from the rocky market conditions that existed throughout the year 2022. Though you may give little thought to the Federal Reserve and how it works, it affects how you transact, spend, and save. By understanding a little about what the Fed’s role in our economy is, you can better understand what risks and opportunities are available for you because of the Fed. If you would like to discuss how recent how recent changes in interest rates have affected your financial situation, please feel free to contact our team for a complimentary consultation. We have experienced financial advisors located in Eau Claire, La Crosse, and Green Bay. Rebecca Agamaite Investment Advisor Representative  Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife. She earned a Masters of Business Administration degree (with an emphasis on finance) from Concordia University. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin.   Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security.  Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses.  Please do not send orders via e-mail as they are not binding and cannot be acted upon.  Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation.  This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services.  Any subsequent, direct communication by AMG  with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.  A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.

Whether it’s on your phone, on the nightly news or scrolling on the bottom banner of your web browser, you probably have seen the performance of the market indexes such as the Dow Jones Industrial or the S&P 500. We see the familiar red and green arrows as we go about our days without giving it much thought. Some people bring the indexes up in casual conversation, but few people take the time to really understand what they are or how they apply to them. Let’s break down some basics about indexes, how they work, and what they mean to you. What are indexes? Indexes are hypothetical portfolios representing different parts of the financial market. The ones investors are most familiar with are the Dow Jones Industrial Average (DJIA), S&P 500 and the Nasdaq Composite. There are plenty of other indexes that might be less familiar to you. To state this in simple terms, indexes are groups of company stocks. Depending on how well the companies are doing, their stock prices will move up or down. If times are good and companies are profitable, the indexes will move up. During hard times, the stock prices will decrease, and the indexes will move down. What makes up the indexes? S&P 500 -Standard & Poor’s 500 Index is a grouping of 500 of the leading publicly traded companies. Companies with more shares outstanding and higher capital make up the largest percentage. Currently Apple holds the largest percentage of the 500, DaVita Inc, is the smallest of the 500. Dow Jones Industrial Average, or simply the Dow- The Dow is the oldest and perhaps the most familiar index. It includes companies that are found globally. It includes 30 companies who are ranked by their price. UnitedHeath Group, Inc is the top company with a price over $500 per share, Intel is the lowest ranking with a current price under $30 per share. Nasdaq- The Nasdaq is one of the largest US indexes. It includes nearly every company that trades on the Nasdaq stock exchange. It is the most misunderstood index because it has some unique characteristics. Some people call it the tech index, although it is not exclusive to any industry. To be included, a company must trade exclusively on Nasdaq stock exchange unless it was there prior to that rule being made in 2004. This means that unless grandfathered in, none of the companies in Nasdaq appear on the NYSE, Philadelphia Stock Exchange, American or another exchange unless they have been there for a very long time. Some of its largest holdings, Apple, Microsoft, Meta, Alphabet, Tesla and others also appear as some of the top positions in the S&P 500. How does this apply to me? Aside from giving you something to talk about other than the weather, you may find that it’s helpful to know the current state of the market. It is kind of like looking at a thermometer for your investments. Having an idea of what is going on in the market can prepare you for what is going on in your own retirement accounts and investments. If you are seeing a lot of red days, it probably means that you can expect to see some losses in your account. Keep in mind, it’s just an idea of how things are going in the financial markets. Just because the S&P 500 or Dow Jones is down 10% year to date doesn't mean your portfolio is down 10%. You have your own group of investments in your personal portfolio and your portfolio has its own return based upon what you are holding and how much risk you are taking in your portfolio. Your advisor may discuss the market index’s performance and compare it to your performance. This is called using an index as a benchmark. This same strategy also applies for risk. You can determine if your portfolio has more risk, less risk, or similar risk. An aggressive investor may have a portfolio with nearly as much risk as the S&P 500 whereas a conservative investor may not be comfortable with that much risk. Most people misunderstand how to use an index as a benchmark. Often, we see people judging the success of their portfolio by how it compares to an index. Instead, you should judge your portfolio based on your long-term goals and how well your portfolio is set up to achieve your goals. Can I invest in an index? While you cannot invest in the actual index, there are mutual funds and ETF’s that mirror the index. These buy the exact same stocks that are in the indexes and their return can be similar. While this could be appealing, there can be downsides to this type of strategy. Index funds are not actively managed and can potentially carry more risk than an actively managed strategy. Finding a knowledgeable advisor can help you to decide what is right for your portfolio and how it relates to the broad markets   Rebecca Agamaite Investment Advisor Representative  Rebecca joined the firm in 2011 as an Investment Advisor Representative. In this role, she works with clients to manage their investment assets and help them obtain their financial objectives. Rebecca brings a great deal of experience to the team having worked for several years at Marshall & IIsley Bank and MetLife. She earned a Masters of Business Administration degree (with an emphasis on finance) from Concordia University. Advisors Management Group, Inc. is a registered investment adviser whose principal office is located in Wisconsin.   Opinions expressed are those of AMG and are subject to change, not guaranteed, and should not be considered recommendations to buy or sell any security.  Past performance is no guarantee of future returns, and investing involves multiple risks, including, but not limited to, the risk of permanent losses.  Please do not send orders via e-mail as they are not binding and cannot be acted upon.  Please be advised it remains the responsibility of our clients to inform AMG of any changes in their investment objectives and/or financial situation.  This commentary is limited to the dissemination of general information pertaining to AMG’s investment advisory/management services.  Any subsequent, direct communication by AMG  with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.  A copy of our current written disclosure statement discussing our advisory services and fees continues to remain available for your review upon request.