2021 Q4 In Review - Integrity Wealth Advisors, Ventura | Ojai, California

Q4 2021
IN REVIEW

TOTAL RETURN 2021 Q4 + NEWSWORTHY EVENTS
Oct 8 – Nearly 140
countries agree to the
biggest overhaul of
global tax rules in a
century, a move that
aims to set a minimum
15% corporate tax rate.
Nov 3 – The Fed closes a
chapter on its pandemicdriven
stimulus, approving
plans to begin scaling back
its bond-buying program.
Nov 26 – The WHO identifies a
new coronavirus strain as a global
“variant of concern,” and the Dow
Jones average suffers its worst
trading day of the year.
Dec 10 – U.S. inflation hit a nearly
four-decade high in November, the
Labor Department says, as strong
consumer demand collided with
pandemic-related supply constraints.
13%
S&P 500 TOTAL RETURN
Oct 28 – The U.S. economy, hurt
by the virus surge and supply
bottlenecks, grew at a 2% annual
rate in the third quarter, the
slowest pace since the recovery
began in mid-2022.
MSCI ACWI EX USA TOTAL RETURN
Nov 15 – President Biden
signs into law a roughly
$1 trillion infrastructure
package with spending on
roads, bridges, rail and more.
Dec 9 – The Labor
Department reports that
weekly jobless claims fell to
the lowest level in more than
half a century.
BARCLAYS US AGGREGATE TOTAL RETURN
Dec 19 – Sen. Joe Manchin (D.,
W.Va.) says he will oppose his
party’s roughly $2 trillion education,
healthcare and climate package.
11%
9%
11.02%
7%
5%
3%
1%
-1%
1.88%
0.11%
-3%
October
November
December
12%
S&P 500 TOTAL RETURN
MSCI ACWI EX USA TOTAL RETURN
BARCLAYS US AGGREGATE TOTAL RETURN
As of close 12/31/2021
11%
10.42%

CAUTIOUSLY OPTIMISTIC FOR 2022
2021
Q4
IN REVIEW
As we kick off 2022, a substantial amount of uncertainty exists, with many
questions to be answered. Is the pandemic near its end? Will supply chain
disruptions be resolved? How high will inflation go, and how long will it last?
Well, the final numbers on inflation for 2021 are in. Consumer prices continued
their ascent in December, rising 0.5% for the month, thus pushing the 12 month
increase for 2021 to 7.0%, the largest in nearly 40 years.
While these numbers sound scary, we do not believe inflation to be as concerning
as you might think. As more and more people are vaccinated or gaining natural
immunity, the end to the pandemic finally feels like it is in sight. This should ease
the supply chain woes that have been a big part of inflation. This, along with the
Fed picking up the pace of tapering asset purchases and signaling a readiness
for multiple rate hikes in 2022, lessens our concern that we will experience
inflation like we did in the 1970’s. The piece of inflation that will not go away,
however, is the 39% increase to the money supply, which will continue to increase
over the course of the next year or so.
We could see some short term volatility due to the midterms elections. An
analysis of more than 90 years of equity returns reveals that stocks tend to have
lower average returns and higher volatility for the first several months of midterm
elections. Then, as the year unfolds, markets tend to return to their normal
upward trajectory. On top of this, we have historically high levels of margin debt
and increased retail trading. While we do not try to time the market, and neither
should you, we can use volatility to our advantage and as a means to grow your
wealth. Patience is important here, and proper asset allocation of your portfolio
allows you the ability to be patient.
The economy is currently weathering a tough period of the pandemic, due to the
rapid transmission of the Omicron variant. But experts feel it’s affects should
wane soon. The continued reopening of the economy, coupled with low interest
rates even after some hikes, lead us to believe earnings growth will be strong. We
are, however, in the 11th year of an extended bull market and some bumpiness is
to be expected. Lean on your asset allocation and don’t panic when the volatility
comes, because ultimately, our economic foundation is solid and healthy.
ECONOMIC CHARTS & NOTES
CONSUMER SENTIMENT Consumer sentiment reached a 10-year low
in November as inflation concerns led some Americans to pare back their
standard of living. Retail sales were up less than expected but still well above the
pandemic-impacted level of 2020.
EMPLOYMENT Job growth was strong in October but disappointing in
November. Dubbed "The Great Resignation", a record 4.4 million people quit
their jobs, a reflection of confidence in the labor market and rising interest
in entrepreneurship. Despite the soft hiring data, the unemployment rate
continued to slip to a new pandemic low.
US Retail Sales
Consumer Sentiment
Unemployment Rate
NonFarm Payroll
34%
100
16%
2200
US Retail Sales % Chg
28%
22%
16%
10%
4%
-2%
-8%
95
90
85
80
75
Consumer Sentiment
Unemployment Rate %
14%
12%
10%
8%
6%
4%
-825
-3850
-6875
-9900
-12925
-15950
-18975
NonFarm Payroll
-14%
Jan '19
Jul '19
Jan '20
Jul '20
Jan '21
Jul '21
70
2%
Jan ' 19
Jul '19
Jan '20
Jul '20
Jan '21
Jul '21
-22000

ECONOMIC CHARTS & NOTES
CONSUMER PRICE INDEX U.S. inflation surged 7% for 2021, marking
the highest rate since 1982. Rising food, energy, and housing prices were
responsible for much of the jump as pressure mounted on the Fed to take a
more aggressive monetary policy stance.
Amount in Thousands Y/Y % Chg
7%
6%
5%
4%
3%
2%
1%
0%
Jan ' 18
JOB OPENINGS & HIRES Retail hiring slowed even ahead of the holiday
shopping season, but job gains were solid in the professional services,
transportation, and construction industries. Job openings remained above one
million for the sixth straight month as retailers struggled to attract workers.
1200
1000
800
600
400
200
0
Jan '18
Jul '18
CPI Less Food
Jul '18 Jan ' 19
Retail Hires
Jan '19
Jul '19
Jul '19
Jan '20
Jan '20
Jul '20
CPI All
Jul '20
Retail Openings
Jan '21
Jan '21
Jul '21
Jul '21
CONSUMER SPENDING Real disposable personal income, the money
consumers have left to save or spend after taxes (adjusted for inflation), was
flat in November. Still, consumer spending accelerated in Q4 helping overall
economic growth do the same.
% Chg Year-over-year
GDP Real GDP growth is expected to have strengthened in Q4 after coming in at
2.3% in Q3. Economists are forecasting healthy, yet modest, growth in Q1 2022 due
to lingering inflation, supply chain disruptions, and a resurgence of COVID cases.
% Growth
30
25
20
15
10
5
0
-5
-10
-15
Jan '19
35%
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
-20%
-25%
-30%
-35%
2017
Jul '19
Consumption
Jan '20
Jul ' 20
GDP
Jan '21
Disposable Income
Jul '21
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2018 2019 2020 2021

CONSUMER SPENDING DURING BLACK
FRIDAY AND CYBER MONDAY
2021
Q4
IN REVIEW
Online sales during 2021’s Black Friday and
Cyber Monday shopping holidays ended up being
slightly less than those of the previous year, the
first time such a decrease has been recorded.
Americans shelled out $8.9 billion on Black Friday
deals and $10.7 billion on Cyber Monday specials,
compared to $9 billion and $10.8 billion in 2020,
according to Adobe Analytics.
U.S. HOLIDAY SALES SLIP FOR THE FIRST TIME EVER
E-Commerce Revenue, in Billions
2018
2019
2020
2021
$6.2
$7.4
$9.0
$8.9
$7.9
$9.4
$10.8 $10.7
Consumer spending makes up about 70% of
the U.S. economy, so some may interpret these
results as a worrisome sign of things to come.
However, the only reason Americans didn’t set a
new sales record last November for the shopping
holidays is likely that they had been spreading
out their discretionary spending throughout the
year. Unlike years past, people appear not to
have waited for Black Friday deals to buy a new
TV, update their kitchen appliances or splurge
on luxury goods. What’s more, many retailers
introduced discounts much earlier than usual.
November’s Adobe data confirms this.
Throughout the month, Americans spent $109.8
billion online, a 12% increase over November
2020. Adobe adds that 22 days of the month
exceeded $3 billion in shopping, a new milestone.
Consumption in the U.S. grew $214.3 billion, or
1.3%, from September to October, marking the
eighth straight month that personal expenditures
increased.
The pandemic has largely contributed to heavier
consumption. Supported by low rates, easy
money and rising wages, consumers have by and
large shifted much of their discretionary spending
from experiences (dining out, movies, concerts)
to merchandise.
Black Friday
Cyber Monday
Source: Adobe Digital Insights, U.S. Global Investors
CONSUMPTION RECOVERED QUICKLY AS AMERICANS SHIFTED SPENDING FROM SERVICES TO GOODS
Personal Consumption Expenditures in Billions, 5-Year Period through October 2021
$17,000
$16,000
$15,000
$14,000
$13,000
$12,000
JAN 2017 JUL 2017 JAN 2018 JUL 2018 JAN 2019 JUL 2019 JAN 2020 JUL 2020 JAN 2021 JUL 2021
Source: Adara, U.S. Global Investors

GET READY FOR SOME VOLATILITY THIS
MIDTERM ELECTION YEAR
Some economists believe 2022 could be one of the more consequential midterm elections in U.S. history. While the election is still nearly a year away, history
suggests that we will see a backlash against the party in power that will result in Republicans taking back control of the House and potentially the Senate.
This possibility isn't lost on Democrats. In the months ahead, they will likely continue to push for ambitious new spending programs as well as higher taxes
for corporations and wealthy individuals. However, expect these progressive goals to be tempered by the political reality of the party's slender majorities in
the House and Senate.
Still, political uncertainty often
has a noticeable short-term
effect on markets. An analysis
of more than 90 years of equity
returns reveals that stocks
tend to have lower average
returns and higher volatility
for the first several months
of midterm election years. As
results at the polls become
more predictable, this trend
often reverses and markets
have tended to return to their
normal upward trajectory.
Investors should keep in mind,
however, that these are just
averages, and shouldn't try to
time an entry point into the
market.
S&P 500 INDEX AVERAGE RETURNS SINCE 1931
Midterm elections - and politics
as a whole - generate a lot of
noise. Prudent investors are
wise to look past the shortterm
highs and lows and
maintain a long-term focus.
Sources: Capital Group, RIMES, Standard & Poor's. The chart shows the average trajectory of equity returns throughout midterm election years compared to non-midterm election years. Each point on the lines represents
the average year-to-date return as of that particular month and day, and is calculated using daily price returns from 1/1/31-11/30/21.

HIGH INFLATION SHOULD PERSIST IN 2022,
BUT WE'RE NOT RETURNING TO THE 1970s
2021
Q4
IN REVIEW
Inflation is like chewing gum. It's sticky and flexible, and you wouldn’t want to step in it.
For the past 30 years, investors haven't had to worry much about stepping in it. That changed last summer when COVID-related distortions caused prices for some
consumer goods to skyrocket. Today, the biggest questions for investors are how high will it go and how long will it last?
Adding to the uncertainty is that there are two types of inflation. Sticky inflation tends to have longer staying power. Sticky categories include rent, insurance and
medical expenses. Flexible inflation - affecting items such as food, energy and cars - has risen much faster in recent months but many believe it won't last.
We feel that the risk is in the sticky components and that those are the categories that will drive inflation in 2022. While we expect inflation to eventually return to
normal levels, we do think it is prudent to guard against sustained higher prices in your portfolio.
STICKY AND FLEXIBLE PRICE INFLATION, YOY CHANGE %
INFLATION
PROJECTIONS
Sources: Capital Group.Federal Reserve Bank of Atlanta, Refinitiv Datastream. Sticky and flexible prices reflect the Atlanta Federal Reserve sticky and flexible consumer price indexes (CPI). If price changes for a particular
CPI component occur less than every 4.3 months, that component is a "sticky-price" good. Goods that change prices more frequently are "flexible-price" goods. Historic data is through November 2021. Projections for
2021-2023 are from IMF and as of October 2021.

YOU’RE NOT GOING TO BEAT INFLATION IN YOUR SAVINGS ACCOUNT
In December, the Bureau of Labor Statistics (BLS) reported that
consumer prices rose at their fastest annual pace in about 40 years.
The consumer price index (CPI) increased 7% year-over-year in
December, the highest reading since June 1982. Among the biggest
contributors to higher inflation were gasoline (up 58.1%), natural gas
(25.1%), used cars and trucks (31.4%) and clothing (5%).
It’s slightly distressing to look at this chart, which shows that the
total value of deposits in U.S. commercial banks is about to exceed
$18 trillion. Inflation is melting away people’s cash faster than the
Federal Reserve can print more of it. Low interest rates have made it
even more difficult to breakeven with inflation this last year. The only
sure way to lose against inflation is to leave your money in a savings
account.
Sources: IEA, JPMorgan, U.S. Global Investors. Five-Year period through November 2021
DEPOSITS AT U.S. COMMERCIAL BANKS SOON TO EXCEED A RECORD $18 TRILLION
$18
$17.89 Trillion
$17
$16
$15
$14
$13
$12
$11
JAN 2017 JUL 2017 JAN 2018 JUL 2018 JAN 2019 JUL 2019 JAN 2020 JUL 2020 JAN 2021 JUL 2021
RETAIL TRADING BOOM
A year ago, so-called ‘retail traders’ were a quirky sideshow in U.S.
stocks, fending off the boredom of coronavirus lockdowns by dabbling
in markets essentially fee-free, thanks to a price war kicked off by
Robinhood in 2019. Under the online rallying cry that “stocks only go up”,
they demonstrated an optimism about economic outlook that was often
lacking among professional fund managers, pumping up some stocks
that others would not touch. They ended up piggybacking on a historic
rally in equities that has now been running for nearly a year.
MARKET SHARE OF OVERALL US EQUITY TRADING VOLUMES (%)
Retail
Quant Hedge Funds
Mutual Funds
Traditional Hedge Funds
Bank Trading
High-Frequency Market-Makers
50
40
Few in the investment industry took this long-maligned “dumb money”
seriously. Credit Suisse estimates that at times this year they have
accounted for a third of all US stock market trading. The burning question
on Wall Street is whether this burst of hyperactive retail trading is a
temporary coronavirus-inspired phenomenon that will inevitably ebb once
markets next crash — as happened after the dotcom boom and bust — or
the start of a new regime driving the US stock market.
Source: Bloomberg Intelligence
Retail trading
begins to take
off again
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
30
20
10
0

INVESTOR CREDIT AND THE MARKET
2021
Q4
IN REVIEW
Let's examine the chart below, and study the relationship between margin debt
and the market, using the S&P 500 as the surrogate for the latter.
five months later, in August. A similar surge began in 2006, peaking in July 2007,
three months before the market peak.
At the 1997 start date, we were well into the Boomer Bull Market that began
in 1982 and approaching the start of the Tech Bubble that shaped investor
sentiment during the second half of the decade. The astonishing surge in
leverage in late 1999 peaked in March 2000, the same month that the S&P 500
hit its all-time daily high, although the highest monthly close for that year was
500,000
Investor Credit and the Market
Debt hit a trough in February 2009, a month before the March market bottom. It
then began another major cycle of increases. FINRA has released new data for
margin debt, now available through November 2021. The latest debt level is down
1.84% month-over-month, but still near record highs. This has been an interesting
indicator to watch and will certainly continue to bear close watching in the future.
5000
400,000
Credit Balance is calculated as the sum of Free Credit Cash Accounts and Credit Balances in Margin Accounts minus Margin Debt.
Note: Latest data as of November 2021. As of Dec 2017, data is calculated using FINRA data, which includes NYSE firms.
4500
300,000
Positive Credit Balance Negative Credit Balance S&P 500
4000
200,000 $200
3500
100,000 $100
3000
Billions
0
2500
-100, -$100 000
2000
-200, -$200 000
1500
-300, -$300 000
1000
-400, -$400 000
500
-500, -$500 000
1
6
11
16
21
26
31
36
41
46
51
56
61
66
71
76
81
86
91
96
101
106
111
116
121
126
131
136
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
141
146
151
156
161
166
171
Credit Bal ance S&P 500
176
181
186
191
196
201
206
211
216
221
226
231
236
241
246
251
256
261
266
271
276
281
286
291
296
2020 2021
0

INVESTMENT
MANAGEMENT
PHILOSOPHY
The complex, ever-changing investment world of today
requires an investment process that is overseen by a team
of experienced investment professionals. Global capital
markets present investors with a host of challenges due to
the combination of an overwhelming amount of information
to analyze and the endless supply of conflicting opinions and
narratives surrounding financial markets. The time and expertise
required to perform in-depth investment research and to make
timely and informed portfolio management decisions requires
both a clear investment process and an experienced investment
team to implement the process.
An old adage states that there is accomplishment through
many advisors. We agree and embrace a variety of investment
perspectives through our investment committee. Our investment
philosophy is well grounded in global macro-economic analysis.
Investment ideas are carefully vetted through a process which
incorporates the diverse range of investment backgrounds
within our firm. This process of multifaceted analysis ensures
that only the strongest investment ideas survive. We are
committed to striking the right balance between risk and
return through managing global, multi-asset class investment
portfolios.
INDEPENDENCE &
CLIENT FOCUS
DIVERSIFICATION
TOP-DOWN, THEMATIC
APPROACH
PERFORMANCE WITH
LIQUIDITY
VARIED INVESTMENT
PERSPECTIVES
OPTIMIZATION OF
EXPENSES AND TAXES
THE INVESTMENT PROCESS
ASSESSMENT OF GLOBAL
ECONOMIC & INVESTMENT
ENVIRONMENT
ASSESS & ANALYZE
THEMES
RESEARCH INVESTMENT
VEHICLES TO FIND
EFFECTIVE IMPLEMENTATION
IDENTIFY
OPPORTUNITIES
STRATEGIC ASSET
ALLOCATION -
Geographies, Sectors,
Capitalizations
INVESTMENT SELECTION -
Open/Closed End Funds, ETFs, Stocks & Bonds

INVESTMENT COMMITTEE
2021
Q4
IN REVIEW
The Investment Committee meets formally
each quarter, and more frequently if market
conditions warrant, to discuss the state of
the global economy and capital markets and
to assess the current asset allocation and
positioning of our portfolios. There’s an art
to striking the right balance between risk and
return; pursuing that symmetry is the core of
our investment philosophy. We are fiduciaries
and have our interests aligned with our
clients, as we invest alongside them.​Contact
us at investmentcommittee@iwaplan.com
with any questions or concerns.
STEPHEN WAGNER
CEO, Investment Advisor,
CFP ® , CPFA
35+ Years Experience*
VICTORIA BREEN
Investment Advisor &
Financial Planner
40+ Years Experience*
MARTHA LAFF
Investment Advisor,
ChFC ® , CLU ® , CRPC ®
30+ Years Experience*
ANDREW MURTHA
Financial Analyst,
MBA
20+ Years Experience*
BOB CHEATHAM
Financial Planner,
CRPS®, MA
MARGARET MARAPAO
Investment Advisor &
Financial Planner, CFP ®
CHRISTOPHER WAGNER
Investment Advisor &
Financial Planner, CPFA
LAINE MILLER
Investment Advisor &
Financial Planner
DOUG ECKER
Investment Advisor &
Financial Planner, CRPS®
15+ Years Experience*
* Financial services experience. Investment Advisory Services are offered through investment advisor representatives of Integrity Wealth Advisors, a Federally Registered Investment Advisor.
THOUGHTFUL
INDEPENDENT
FIDUCIARIES
Integrity Wealth Advisors has
been committed to helping
individuals, families, and
businesses grow, preserve, and
distribute wealth since 1979
VENTURA
196 S Fir St, Ste 140
Ventura, CA 93001
(805) 339-0760
ventura@iwaplan.com
OJAI
603 West Ojai Ave #C
Ojai, CA 93023
(805) 646-3729
ojai@iwaplan.com

THE IMPACT OF
SOUND FINANCIAL
PLANNING
Recent Vanguard research 1 shows that an experienced
wealth management team not only adds peace of mind,
but also may add about 3 percentage points of value in
net portfolio returns over time. What does this mean? Your
team has the ability and the time to evaluate your portfolio
investments, meet with you to discuss objectives, and
help get you through tough markets. All of these factored
together potentially add value to your net returns (returns
after taxes and fees) over time. But the most interesting part
of this research is that it shows that financial planning and
financial coaching contributed to the greater majority of the
added net 3% in net portfolio returns.
It’s important to realize how valuable making sound financial
planning decisions is and that value is added by your
financial planning team. As investors, our emotions can be
our worst enemy, especially when the markets are volatile,
and guidance from a “behavioral coach” can save us from
panic-selling and abandoning long-term financial plans.
Numerous studies demonstrate that advisors can have a
huge impact on investor finances, but it’s hard to say if these
findings have been recognized and understood by everyday
investors.
DREAM.
PLAN.
ENJOY.
TWO REPAYMENT STRATEGIES TO
PAY DOWN DEBT EFFECTIVELY
Pay debts down in order of balance
amount.
Pay the minimum payment on higher
balance debt and shift those dollars
to the lowest balance debt.
Once the lowest balance debt is paid
off, shift funds to the next lowest
balance debt.
BENEFIT:
QUICK SATISFACTION
THE
Debt Avalanche
METHOD
Pay debts down in order of interest rate.
Pay the minimum payment on lower interest
debt and shift those dollars to the highest
interest debt.
Once the highest debt is paid off, shift funds
to the next highest interest rate.
BENEFIT:
PAY DEBTS OFF FASTER
AND PAY LESS INTEREST
VS
THE
Debt Snowball
METHOD

ESTATE PLANNING CHECKLIST
We'll walk you through how to create and formalize your estate plan with our 4-step estate planning checklist.
1 2 3 4
TAKE INVENTORY
No matter how modest, everything
you own is considered your estate.
Taking stock of what you own is the
first step in understanding how best
to protect it. To start your estate
plan:
List the value of your home and
other real estate along with
cars, jewelry, artwork, and other
physical assets.
Gather recent statements
from your bank, brokerage, and
retirement accounts.
Include the location and contents
of any safety deposit boxes or
safes.
Make a list of all insurance
policies, noting their cash values
and death benefits.
List all liabilities, including
mortgages, lines of credit, and
other debt.
DRAFT YOUR ESTATE PLAN
Prepare to meet with an estate
planning attorney by answering
these important questions about
how to settle your affairs:
Who should inherit your assets,
and in what proportions?
Who should care for your minor
children?
How much is needed for your
children's care and education?
Who should manage your
financial affairs if you become
incapacitated?
Who should be responsible for
distributing your assets?
PUT YOUR ESTATE PLAN INTO
ACTION
When you're ready, meet with an
estate planning attorney to draft
your will, medical and financial
powers of attorney, and trust
documents, if applicable. Keep the
tips below in mind.
If you set up a trust, fund it
promptly and retitle ownership of
eligible accounts and property.
Review and update the
beneficiaries on all of your
investment accounts.
UPDATE YOUR ESTATE PLAN
REGULARLY
Review and update your documents
and accounts as your situation
changes or as current laws change.
Keep your beneficiary
designations up-to-date so that
your assets will be distributed
according to your wishes.
Call us to schedule a meeting.
We can refer you to several
highly respected estate planning
attorneys, and help you to prepare
to work with them.

HELPING ELDERLY PARENTS WITH THEIR FINANCES
Some might say that 80 is the new 60, but the reality of aging is that no matter how young your parents feel now, they’re likely to need some type of help in
the future. We applaud you for being proactive—it’s better to have these difficult conversations before a change in your parents’ situation necessitates your
involvement.
HERE ARE FIVE TIPS TO HELP BROACH THE SUBJECT:
1 Ask about their financial security
A lot of people don’t like to talk about money, but if you come from a position of
concern, they might feel more comfortable. Here are some questions to start with:
• How are they handling everyday expenses? Do they have enough income to cover the
essentials? If they’re struggling to stay on top of bills or debts, you might help them
create a more realistic budget or suggest they work with a planner who can help them
to get a handle on their expenses.
• Do they have a financial advisor? If so, ask if they’d be willing to introduce you and
perhaps even include you in a meeting. If they don’t have an advisor, you can start by
encouraging them to meet with one.
• Do they have a complete estate plan? Chances are, your parents have a will and perhaps
even some asset titling in place, but what about health care directives and powers
of attorney? Ask whether they’ve created any legal documents that specify how to
manage their financial and health care decisions should they become unable to do
so themselves. If they do have a solid plan in place, ask when they last reviewed the
documents and whether any updates are necessary.
• Are important documents accessible? In case of emergency, it’s important that you
or another trusted person be able to locate important documents, such as financial
statements, insurance policies, trust paperwork, and wills. If they don’t have it all in
one place, ask if you can help them collect and store the documents for safekeeping.
2
Discuss future living
arrangements
Some people want to live in their
homes as long as they can, while
others are open to independentliving
communities should their
health decline. Ask your parents if
they’ve thought about what they
might do in the event they need
ongoing help. Position it as just an
exploration of future possibilities—
not a recommendation.
3
Plan for long-term care
The median annual cost for assisted living is $51,600,
according to the Genworth 2020 Cost of Care Survey.
However, median annual costs vary widely by location—
for example the median cost is $70,140 here in Ventura
County. Not everyone will need long-term care, of course,
but it’s still worth discussing. If your parents already have
long-term care insurance, understand what it will cover.
While future care can be an emotional flashpoint, it’s also
an important financial consideration because they—and
you—need to understand how much they can afford and
whether you might need to supplement any costs.
4
Be on alert for abuse
If you have siblings, make sure everyone is aware of your parents’
situation and desires, and come to a consensus on who will
do what, should your parents need assistance in the future.
In this way, you can ensure there are no misunderstandings
or disagreements and that whomever takes the lead gets the
support they need.
Be sure to discuss this with your parents, too. As a precaution,
you might suggest they add you or another trusted family
member to some or all of their accounts to help monitor balances
and transactions.
5
Have a family discussion
If you have siblings, make sure everyone is
aware of your parents’ situation and desires,
and come to a consensus on who will do what
should your parents need assistance in the
future. In this way, you can ensure there are no
misunderstandings or disagreements and that
whoever takes the lead gets the support they
need.
Finally, when it comes to family financial
conversations, it is all about talking openly and
honestly. While the burden often falls on the kids
to get the conversation going, we encourage
any older adults reading this to initiate these
discussions themselves. The more mutual
understanding there is about the future—
regarding both emotional and financial matters—
the more you will all be able to enjoy the present.

FINANCIAL PLANNING FOR YOUR NEXT MOVE
Americans are pulling up stakes, motivated in part by the shift to remote work, which moved from the exception to the rule over the past year. Indeed, between 14
and 23 million people were expected to have moved in 2021, both to take advantage of new work-from-home opportunities and to escape the rising cost of living in
many major cities. Regardless of your reasons for moving, it pays to do some financial and tax planning long before you start packing. With that in mind, here are
four common mistakes to avoid when making your next big move.
MISTAKE NO. 1:
UNDERESTIMATING HOUSING COSTS
MISTAKE NO. 2:
UNDERESTIMATING TAXES
MISTAKE NO. 3:
UNDERESTIMATING COST OF LIVING
MISTAKE NO. 4:
OVERESTIMATING JOB PROSPECTS
Housing costs are going to be the
core component of your budget. In
particular, be sure to investigate:
Homeowners insurance: As with any
type of insurance, premiums will vary
widely by company and coverage.
Supplemental insurance: Will you
require additional policies, such as
flood or earthquake insurance?
Property taxes: For a realistic
estimate, ask your broker how your
new city or county determines
property taxes and how often it
conducts reassessments.
Utilities: Electricity, internet, natural
gas, sewer, trash, water—such costs
can add up quickly and vary widely by
location.
Taken together, the above costs can
easily account for half or more of your
total housing budget, so be realistic
when estimating expenses. Ideally
you don’t want to pay more than 28%
of your pretax income toward total
housing costs.
The tax consequences of moving can
be significant—especially if you’re
switching states. For instance, you
may still be on the hook for income,
payroll, and/or property taxes in
your former state, particularly if you
maintain a home or business ties.
Employees working outside their
employer’s state can also be subject
to dual taxation, perhaps permanently.
It’s also important to consider
a state’s total tax structure. For
instance, a state with no income tax
may compensate with higher estate,
property, and/or sales taxes.
You should also look into estate
taxes. While the federal exemption is
currently $11.7 million ($23.4 million
for married couples) some states tax
estates starting at $1 million.
A lot of people assume their everyday
expenses will largely stay the same
when they relocate to a new area, but
that’s not always the case. Depending
on your needs, consider the cost of:
Child care: For working parents, the
cost of full-time day care can rival a
mortgage payment.
Health care: If your employer offers
health insurance, medical expenses
may be less of a consideration for
you—though, like everything else,
costs vary widely by area and provider.
Transportation: Beyond the cost of
gasoline, which can vary by a dollar or
more per gallon, consider the price of
car insurance and registration.
Food: It may sound incidental, but
the cost of groceries can also vary
widely. A gallon of milk, for example,
costs as much as $4.69 in Hawaii
and as little as $0.93 in Illinois. And if
you’ll be living in an area with limited
agriculture, expect to pay more for
fresh fruits and vegetables.
Finally, be sure that your combined
living expenses don’t undermine
your ability to save for the future. For
example, a good rule of thumb is to
set aside at least 10% to 15% of your
income for retirement.
Many people have a job lined up
before they move, but you should
still do a thorough assessment of
the employment market in your area
of expertise. What happens if your
company downsizes or you want to
change your employer or career path?
It’s always good to plan for change.
Also be sure to educate yourself
about your new state’s employment
laws—including dependent benefits,
discrimination prohibitions, and labor
protections.
Beyond dollars and cents, if your
due diligence has you questioning
the merits of a move, it’s perfectly
reasonable to stay put—or to reassess
your goals. Of course, even a move
that increases your taxes or overall
cost of living can still be worthwhile
if it offers a better quality of life. After
all, moving isn’t just about money.

VENTURA
196 S Fir St, Ste 140
Ventura, CA 93001
(805) 339-0760
ventura@iwaplan.com
OJAI
603 West Ojai Ave #C
Ojai, CA 93023
(805) 646-3729
ojai@iwaplan.com
Data / statistics cited are provided by the Federal Reserve Bank of St. Louis.
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Vanguard research study; Source: Francis M. Kinniry Jr., Colleen M. Jaconetti, Michael A. DiJoseph, and Yan Zilbering, 2014. Putting
a value on your value: Quantifying Vanguard Advisor’s Alpha. Valley Forge, Pa.: The Vanguard Group.
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