A bear market is a prolonged period of price declines in securities, an index such as the S&P 500, or the overall stock market of usually 20% or more from a recent high. Bear markets can also signal economic downturns such as a pandemic, recession, or geopolitical crisis and may be cyclical or longer-term. Pessimism and overall negative investor sentiment may occur during a bear market, often leading to heard behavior, hasty decisions, and fear selling. These can be a risk to a portfolio’s overall long-term performance. As uncomfortable as a bear market may be, understanding how your emotions impact your portfolio’s performance is critical. Here are eight tips for helping you survive a bear market: Turn off the noise. Thanks to the media, we live in an interconnected world and always know what is happening in the world’s markets. While some information sources provide accurate market information, others may not reflect the current market conditions. Limit your exposure to stock market media reporting and rely on your advisor to inform you of what you need to know. Or, ask questions as to how your portfolio and goals may impact by a bear market. Live your life. It may be unhealthy for you to follow the market’s performance 24/7 or let it consume you. Also, it is essential to understand that your portfolio does not define who you are or how successful you are. Understand basis point performance reporting. The relationship between percentage changes and basis points determines a difference in a financial instrument, such as the stock market. The Basis Point (BPS) is used to calculate changes in interest rates, equity indexes (stock market), and fixed-income securities yield. A

Markets rarely give us clear skies, and there are always threats to watch for on the horizon, but the right preparation, context, and support can help us navigate anything that may lie ahead. So far, this year hasn’t seen a full-blown crisis like 2008–2009 or 2020, but the ride has been very bumpy. We may not be flying into a storm, but there’s been plenty of turbulence the first part of 2022. How businesses, households, and central banks steer through the rough air will set the tone for markets over the second half of 2022. Turbulence cannot be avoided, but it also need not deter us from making progress toward our financial goals. LPL Research’s Midyear Outlook 2022: Navigating Turbulence is designed to help you assess conditions over the second half of the year, alert you to the challenges that may still lie ahead, and help you find the smoothest path for making continued progress toward your destination. When times are turbulent, the surest path toward progress remains sound financial advice from dedicated professionals who have logged many hours in similar conditions.   View the digital version: https://view.ceros.com/lpl/midyearoutlook2022       This material is for general information only and is not intended to provide specific advice or recommendations for any individual. The economic forecasts may not develop as predicted. Please read the full Midyear Outlook 2022: Navigating Turbulence publication for additional description and disclosure. This research material has been prepared by LPL Financial LLC. Tracking # 1-05292601 (Exp. 07/23)

As a business owner, you may assume you do not need professional financial advice until you hit certain milestones such as $1 million in sales, having ten employees, or some other tangible measure. However, financial professionals may benefit small-business owners no matter what the stage of their business. The earlier you seek financial advice, the more this advice might help your business as it grows. Here are five ways a financial professional could be your ally as a small-business owner. Saving You Time and Energy Having a financial professional to help you plan the economic future of your business might allow you to concentrate on more immediate needs. It may be tough to make long-term projections when just trying to get through each day. Delegating these tasks to a financial professional might help you lower stress. You are able to spend your time managing your operations while your financial professional works on items such as tax-saving strategies, expansion, cash flow projections, and anything else your business may need to manage finances. Saving You Money It might be tough to get a comprehensive overview of your business as an owner. Your financial professional might find ways to save you money by taking such a view, tracking your budget expenditures, and seeing where you might be overspending. Cutting out this extra spending might free up capital that you may use to hire more employees, do more marketing, stock more products, or provide your workers with raises. Evaluating Market Trends Many small businesses operate in competitive markets, so having a finger on the pulse of relevant trends may be the difference between a booming business and a struggling one. Some financial professionals offer

You don’t need to wait until the end of the year to look for ways to minimize your tax liability. Tax planning should take place throughout the year to have you prepared well ahead of tax season. Here are six ways to minimize your tax liability that you can implement any time before the end of this year: Update your payroll deductions– double check that you are claiming the correct deductions and taking advantage of pre-tax benefits that can help lower your taxable income, such as: Flexible spending accounts (FSAs)- a health savings account (HSA), healthcare insurance, a flexible spending account (FSA), commuter benefits, and childcare expenses. Maximize pre-tax retirement savings contributions– In 2022, you can contribute $20,500 to your employer’s retirement savings plan. If you are aged 50 or older, you can contribute an additional $6,500 to help lower your taxable income. Other Tax-liability Reduction Strategies Whether you’re an individual or a married couple, you can lower your taxable income while doing good for others by donating to an IRS-qualified charity. To take advantage of charitable tax deductions this year, you must make your donation before December 31st. Here are some common charitable donation strategies to consider: Qualified Charitable Distributions (QCDs) – If you’re age 72 or older, you can use a QCD to donate to an IRS-qualified charity of your choice directly from your IRA. The gift won’t qualify for a charitable deduction but will allow you to deduct the amount transferred to the charity from your taxable income. A QCD may be helpful if you won’t reach a level of itemized deductions to exceed the standard deduction amount on your taxes.   The maximum amount you may

Almost half of all adults are part of the “sandwich generation.” These are adults in their 40s and 50s who are helping support or care for a parent while also supporting or caring for a child.1 Being caught between two generations of loved ones who require care can be both financially and emotionally draining, but there are ways to reduce the pressure. Here are three financial planning challenges the sandwich generation is likely to face—and some strategies to address them. Challenge: Having to provide daily care for a parent while working full-time. Strategy: Research care options and alternatives. There is often a lot of gray area between needing some help with daily activities and requiring round-the-clock care. If you find yourself visiting your parent one or more times each day to provide assistance, it is worth looking into home care options that can relieve some of this burden. From aides to home health nurses to companions, there are many providers who may be able to share some of the responsibilities you are shouldering. What’s more, these services are often available at low or no cost if your parent has Medicare, Medicaid, or VA insurance. Challenge: Saving for retirement while having to step back from work to care for a parent. Strategy: Meet with a financial professional. Many members of the sandwich generation find themselves dropping out of the workforce so that they no longer have to schedule their caregiving duties around a full-time job. Unfortunately, this can sometimes come at the expense of their own retirement funds. By meeting with a financial professional, they can work with you to help develop financial goals, make any investment changes you need to,

Five easy pointers to help you plan during all of your retirement years   If you’re retired, there’s good news in that you’ll probably live longer and perhaps better than your parents and grandparents did. The bad news: You’ll live a longer and perhaps more expensive life, too. You face decisions your parents or grandparents likely didn’t face before you. This means every year you need to realistically estimate your life-expectancy to manage the foundation for your retirement (which might include years of less-than-great-health). Let’s say you are 58 – you need to plan for the next 37 years – more than a third of your life. Pointers to Help Plan During Retirement Here are five easy pointers, in ascending order of importance: 5. Costs of advice. You probably have a lot of questions. How much do you pay someone now to help you coordinate your investments? How much do your investments cost? Is your portfolio sufficiently diversified? Did you buy annuity policies that you don’t really understand and that may become expensive for you to own? Do you need someone to only manage your investments or to also provide financial planning advice? The average American spends more time analyzing the cost of a new TV than the costs and qualities of a financial professional. 4. Social Security. Don’t decide about benefits and lump-sum pension choices without discussing your options with a financial planner – or you may leave significant money behind. Remember too that the Social Security Administration won’t necessarily provide advice on your best strategies. 3. Your home and future health. Consider the final 15-plus years of your life. Where will you live when you’re 80? In a

If you’re avoiding looking at your 401(k) balance during periods of market volatility, you’re not alone. While the S&P 500 has historically produced an average annual return of 11%, recent market downturns may be impacting your portfolio, especially if you are drawing down assets. If you are a retiree or nearing retirement, managing the sequence of return risk in your portfolio during a declining market is essential since it is a significant risk to your assets lasting through retirement. The sequence of returns impacts investors when they are either adding to or withdrawing money from their investments, which can create risk depending the market conditions at the time. If an investor is not doing either, there is no sequence of returns risk. However, suppose an investor is drawing down their portfolio and not contributing new capital, for example, when they’re retired. In that case, there is the risk that the timing of withdrawals will negatively impact the portfolio’s overall rate of return. The sequence of the withdraws is critical to the retirement portfolio lasting the investor’s lifetime: Timing is everything- the timing of the withdrawals can damage the overall return and the portfolio that may not be recoverable. Withdrawals during a bear market are more damaging than during a bull market. If a bear market lasts more than a few months, each withdrawal is not being offset by contributions, leaving the portfolio unable to recover what was withdrawn despite future gains. The sequence of return risk can impact market-sensitive investments. Diversified portfolios are less likely to be impacted by the sequence of return risk. When is the optimal time to review your portfolio? When the amount of risk you’re comfortable with

A Roth IRA conversion involves repositioning traditional IRA or qualified employer-sponsored retirement plan assets into a Roth IRA. One reason people convert traditional IRAs or other retirement accounts into Roth IRAs is so they can enjoy tax-free income in retirement. Another reason is the Roth IRA’s flexibility not to make withdrawals if the money isn’t needed since there is no Required Minimum Distribution (RMD). Or, they may use a Roth IRA conversion as part of estate planning to lessen the impact of estate taxes on their estate. Whatever the reason for the Roth IRA conversion, investors often consider this a suitable time to do a Roth IRA conversion whenever the stock market is down. However, there are many questions to answer before putting this strategy into action: Does your qualified retirement plan allow Roth IRA conversions? If you have your monies inside your employer’s retirement savings plan, check the plan’s documents to see if a Roth IRA conversion is allowed. If not allowed and you initiate the conversion, the conversion may not occur, or a penalty will be applied when the conversion happens. Consult your employee handbook, contact your HR, or contact your employer-sponsored retirement plan’s custodian for answers about your situation. Can you pay the taxes? Since traditional IRAs and other qualified retirement plans are tax-deferred plans, upon converting assets into a Roth IRA, the account owner must pay income tax on the amount they convert. Also, the taxes are due upfront when the conversion occurs. Are you comfortable with your Adjusted Gross Income (AGI) increasing? A Roth IRA conversion will increase your income in the year that the conversion occurs. If you are retired, be mindful that Medicare Part

If you have always thought estate planning was just for those nearing retirement or already retired, think again. If you own a home, it is important to have a plan in place. Without a will or other arrangements that allow your home to pass to your closest loved ones, it is subject to your state’s intestacy laws and probate, which may not result in the outcome you want. Here are five different ways your estate plan can pass your home on to your loved ones. Give Your Home as a Bequest One of the most common ways to pass a home along to heirs is by specifically naming a beneficiary in your will. When you leave your home in a will, the beneficiary receives a stepped-up cost basis. This provision means that if they later sell the house, they may only pay taxes on the difference in the value when they inherited it and the sale price. Before choosing someone to inherit your home, be sure they are up to the task. For some, the idea of taxes, insurance, and maintenance expenses may feel like anything but a gift. And if the beneficiary is receiving public benefits, like Medicaid, inheriting a home or another item of value may make them ineligible for future benefits until these assets have been sold or spent. Sell Your Home If you would rather not leave your home as a bequest to your beneficiaries, another option is to sell it. With the $250,000 capital gains tax exclusion (or up to $500,000 for married couples filing jointly), you may sell your home for a tidy profit, deposit or invest the tax-free gains, and pass these funds

In late 2019, SECURE Act was passed as a way to help Americans save more for their retirement. In March 2022, the SECURE Act 2.0 has passed in the U.S. House of Representatives and aims to improve the goals of the original SECURE Act. The Senate proposed a similar bill in May 2021, and as the House’s version moves forward, the two bills will likely combine before the final Senate vote. Here are what investors should know if the SECURE Act 2.0 passes as proposed: #1- Required Minimum Distribution (RMD) age will increase from age 72 to age 75 with this RMD schedule: Age 73 starting in 2023 (for individuals who reach age 72 after Dec. 31, 2022, and age 73 before Jan. 1, 2030). Age 74 starting in 2030 (for individuals who reach age 73 after Dec. 31, 2029, and age 74 before Jan. 1, 2033). Age 75 starting in 2033 (for individuals who reach age 74 after Dec. 31, 2032). #2- RMD penalties would decrease. Currently, for investors who forget to take their total RMD, there is a 50% penalty on the RMD amount missed. The SECURE Act 2.0 would decrease the liability to 25%, and if the mistake is promptly corrected, it drops to 15%. #3- Qualified Charitable Distributions (QCDs) would be enhanced. People aged 70½ and older can transfer up to $100,000 tax-free each year from their traditional IRAs directly to the charity. The SECURE Act 2.0 would index the cap each year for inflation. It would also allow a one-time transfer of $50,000 through a charitable remainder trust or charitable annuity. #4- Catch up provisions for 401(k) and 403(b) plan participants ages 62, 63, or 64 would