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OCTOBER 2022 Newletter: Putting Interest Rates Into Perspective

October 07, 2022
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Traditionally, we are a little cautious when people say, “it’s different this time.” After all, the past few years have seen more financial “firsts” than most.

But despite that skepticism, this year saw five interest rate increases in seven months — making it the quickest tightening cycle in modern history.

And with two more rate increases expected in November and December of this year, it seems clear that Fed Chair Jerome Powell is determined to keep adjusting rates until inflation is on track to hit the Fed’s target.

The Fed knows that few financial events can be as devastating as high inflation over time – especially for those living on a fixed income. So the Fed is comfortable with some short-term economic uncertainty in pursuit of its long-term goal of price stability.

While it may take some time, we're optimistic the Fed has a plan to tame inflation. But to keep things in perspective today, recent 30-year fixed mortgage rates hovering around 6 percent on average are still relatively affordable when compared to their historical average of nearly 8 percent.* 

If you have any concerns or questions about the current financial landscape, let us know. We're always happy to hear from you.

*Freddie Mac

  • This November, millions of Massachusetts taxpayers will be eligible to receive an automatic state tax refund. Eligible taxpayers will receive a refund of approximately 13% of their Massachusetts personal income tax liability for tax year 2021. For more details, including eligibility requirements and a refund estimator, please visit Mass.gov's website here.

  • The end of the year is quickly approaching, and our Preparing for Year-End & the 2022/2023 Tax Season guide can help you get ready for tax season. Review this resource for important information and deadlines you need to know.

  • There are several investor Account View self-service features that are newly available. Once logged into your Account View profile, you can now:

Transfer money via ACH deposits. If you have previously established bank information (ACH instructions) for a particular account, then you are already setup to enter transfers in Account View. Please click the “Transfer Money” tab at the bottom left of the Account View home screen. However, if you would like to add, edit, or remove a connection to an external bank account, you must contact your Advisor for assistance.

Update retirement beneficiary information. Add, view and edit beneficiary information for your qualified retirement accounts. Please refer to this guide for detailed instructions.

Grant access to authorized user(s), such as family members or your accountant, and allow those trusted individuals to view and/or download financial information from your Account View profile. Click your name in the upper right hand corner, Select "Preferences" from the drop down, click on the "Relationships" tab, then click "Manage Additional Users". 

How Tax Transcripts Can Help You File an Accurate Tax Return

The IRS has a few resources to help you file an error-free return. They suggest making an online account to see estimated tax payments, prior year adjusted gross income, and more.

They also offer the option to request a tax transcript online. There are five types of tax transcripts, each used for different purposes, so make sure to see which one best fits your needs. A Tax Return Transcript, for example, shows most line items from your original Form 1040. You can request a tax transcript online, by mail, or by phone.

This information is not intended to be a substitute for specific, individualized tax
advice. We suggest that you discuss your specific tax issues with a qualified tax
professional

Tip adapted from IRS.gov

Gerald Ford was our 38th President, but he was actually the 37th man to take the job. Why was that?


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Last month’s riddle: A rain gauge collects rainfall each day of a wet week beginning on Monday. Every day, the amount of rain in the gauge doubles. At Sunday’s end, the rain gauge is completely filled. So on which day is it half-filled?


Riddle answer: The rain gauge is half-full on Saturday and the amount of rain in the gauge doubles on Sunday so it becomes completely filled.