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Purpose Financial Planning

Purpose Update


Markets Update

While the events in Afghanistan those affected by ‘Ida’ are tragic (Prayers have been said) they have not caused the market problems. As I have stated previously one of the reasons for this is that there is a lot of money moving around the economy. Additionally, foreign money has added ample amounts to our financial chest. A lot of the confidence foreign money has in our economy and markets come from the Federal Reserve. They and others believe that it will continue to "err on the side of monetary ease," keeping financial markets liquid. In last weeks address Chairman Powell did not say anything to dissuade that belief. While it is still thought that the FED will decrease the amount of the buying of treasuries and mortgages by the end of the year, monetary policy is and will still be easy!

Private Equity Markets Update

Did you know that Regulations imposed by the Regulation Fair Disclosure in 2000, the Sarbanes-Oxley Act of 2002, and Dodd-Frank in 2010 resulted in a decline of companies wishing to go public?  The Act allowed for companies to raise additional capital privately from more diverse sources and stay private longer. This along with other factors has resulted in a significant decline in the number of companies listed on the public exchanges. In January 1996 there were 7322 companies listed which was a lot less than the 3643 companies that were found on U.S. public exchanges by January 2019. In the past, companies would list in the public markets quicker, but now companies generally wait until they get to a bigger size. Even from 1999 to 2020 companies coming public are 776% bigger which means a lot of the return that would have been experienced in the public markets were experienced while the company was private. In the past, there was little the average investor could do to invest in these companies. However, today there is a viable accessible fund option overseen by experience managers in this area. Please reach out to me to help determine if this might be a good fit for you.

Extended (Long Term) Care Update

For many, the idea of purchasing long term care insurance is a difficult one. It is not fun to think about what would happen if you had a health event and needed additional care in a nursing home. However, it is important to remember that most extended care is done in the home. In fact, having some long-term care insurance could help to make sure you can stay in your home longer than you may be able to otherwise. 
Also, it is important to note that states are concerned about future ‘Medicaid’ bills that they may have to undertake. In fact, the state of Washington has now instituted a long-term care tax.  Residents that receive W-2 income who cannot prove that they a long-term care insurance policy must pay a tax. Upon the roll out of the tax, long term care insurers were flooded with applications and at least one major carrier had to stop taking applications. 

Please contact Dan Kaibel CFP at (773)466-2610 with any questions. 

The opinions expressed in this email are for general information only and are not intended to provide specific advice or recommendation for any individual. To determine which investment(s) or strategies may be appropriate for you, please consult your financial advisor prior to acting.  Investments and financial products can carry risk of loss including loss of principal. Past performance is not a guarantee of future results. The comments made are provided as a general source of information based on information available as of September 1, 2021 and should not be considered as investment advice or an offer or solicitations to buy and/or sell securities.