2023 Q1 In Review - Integrity Wealth Advisors, Ventura & Ojai, California

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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. WHEN DO YOU NEED UMBRELLA INSURANCE? Having adequate damage and liability insurance is essential when you own property—be it a home, a car, or a boat. But if you're responsible for damage or injury to someone else's property or person, your coverage may fall woefully short. Enter umbrella insurance, which provides liability coverage beyond most property insurance policies. This includes coverage for damages caused by you and members of your household, as well as limited coverage in case you're sued. Umbrella insurance protects you in a worst-case scenario. For example, let's use an insurance policy for a boat with liability coverage of $100,000. If a wrongful-death lawsuit leads to $1 million in damages, the other $900,000 will come from the policyholder's own pocket—unless they have a $1 million umbrella policy, which would cover the gap between the boat policy and the total damages due. Although umbrella insurance is of particular value to affluent individuals with significant assets to protect, nearly anyone can benefit from the extra coverage, especially as premiums on such policies are relatively low. The low cost of Umbrella <strong>In</strong>surance makes it an easy decision. Selecting higher liability coverage on individual policies can quickly become cost-prohibitive. As a rule of thumb, your total coverage should not exceed your net worth. When purchasing any new insurance, an experienced broker can help ensure your policies work together while avoiding unnecessary coverage.
Future FINANCIAL four-year college PLANNING: costs COLLEGE COSTS How much College costs to invest The younger the child, the more college is likely to cost. Add up four years per child, and it equals one of a family’s See largest how much expenses. you should start investing or already have invested, based on a child PROJECTED COST OF A FOUR-YEAR Projected cost COLLEGE of a four-year EDUCATION college education Based on a child's current age $550,000 $500,000 $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 Private $230,290 College costs Public (in-state) $253,895 $150,000 $110,482 uals one of a family’s largest $100,210 expenses. $100,000 $279,919 $121,806 based on child’s current age 1 $502,694 $455,958 $413,568 $375,118 $340,243 $308,611 $241,168 $134,292 $198,410 $179,963 $163,232 How $148,056 much to invest $218,747 $554,220 Public college (in-state) Private college One-year costs Child’s for 2022-23 1 Monthly investment to pay: current age 50% 75% 100% 50% 75% 100% $23,2503 $53,430 $361 $542 $723 $830 $1,245 $1,661 Public Private 6 $431 $646 $861 $990 $1,484 $1,979 81% Not yet investing? Amount to start contributing each month Newborn $315 $472 $630 $724 $1,086 $1,448 9 $546 $819 $1,092 $1,255 $1,882 $2,510 of families have to rule 12 out some colleges $777 $1,166 $1,554 $1,786 Saving $2,679 and investing $3,572 because of cost. 2 15 $1,471 $2,206 $2,942 $3,380 $5,070 $6,760 See how much you should start investing or already have invested, based on a child’s current age and your college funding plans. Current ba Child’s current age P Newborn $42 3 $43 6 $4 9 $46 12 $47 15 $48 4 $554,220 $241,168 8 $50,000 $0 Source: J.P. Morgan Asset Management. Based on average tuition, fees, and room and board costs for 2022- Age 18 Age 16 Age 14 Age 12 Age 10 Age 8 Age 6 Age 4 Age 2 Newborn and Student Aid 2022. Costs estimated to inflate 5% per year. This hypothetical example illustrates the future Amount to start contributing each month investments Current with balance no additional or lump-sum contributions contribution for different time to be periods, on track assuming an annual investment retu does not represent the performance of any particular investment. Different assumptions will result in outcom 1. J.P. Morgan Asset Management, using The College Board, Trends in College Pricing and Student Aid 2022. Future college costs estimated to inflate less than 5% the per figures year. shown. These figures do not reflect the impact of fees or expenses that would be paid b Average tuition, fees, and room and board for public college reflect four-year, in-state charges. A plan of regular investment cannot ensure a profit or protect against a loss in a declining market. Public college (in-state) Private college Public college (in-state) Private college 2. Sallie Mae, How America Pays for College, 2022. One-year costs for 2022-23 1 $23,250 Public $53,430 Private 81% of families have to rule out some colleges because of cost. 2 Child’s current age FUTURE FOUR-YEAR COLLEGE COSTS The younger the child, the more college is likely to cost. Add up four years per child, and it equals one of a family’s largest expenses. Not yet investing? Monthly investment to pay: 50% 75% 100% 50% 75% 100% HOW MUCH TO INVEST Newborn $315 $472 $630 $724 $1,086 $1,448 3 $361 $542 $723 $830 $1,245 $1,661 See how much you should start investing or already have invested, based on a child’s current age and your college funding plans. 6 $431 $646 $861 $990 $1,484 $1,979 9 $546 $819 $1,092 $1,255 $1,882 $2,510 12 $777 $1,166 $1,554 $1,786 $2,679 $3,572 15 $1,471 $2,206 $2,942 $3,380 $5,070 $6,760 Already investing? Child’s Current balance or lump-sum investment to pay: current age 50% 75% 100% 50% 75% 100% 21 Newborn $42,246 $63,369 $84,492 $97,084 $145,626 $194,168 3 $43,464 $65,197 $86,929 $99,884 $149,826 $199,768 6 $44,718 $67,077 $89,436 $102,765 $154,148 $205,531 9 $46,008 $69,012 $92,016 $105,729 $158,594 $211,459 12 $47,335 $71,003 $94,671 $108,779 $163,169 $217,559 15 $48,700 $73,051 $97,401 $111,917 $167,875 $223,833 2 Newborn Source: J.P. Morgan Asset Management. Based on average tuition, fees, and room and board costs for 2022-23 school year, The College Board, Trends in College Pricing Source: 1 J.P. Morgan Asset Management, using The College Board, and Student Trends Aid in 2022. College Costs Pricing estimated and to Student inflate 5% Aid per 2022. year. Future This hypothetical college costs example estimated illustrates to the inflate future 5% values per year. of different Average regular tuition, monthly fees, investments and room and board lump-sum for public college reflect four-year, in-state charges. 2 investments with no additional contributions for different time periods, assuming an annual investment return of 6%, compounded monthly. This hypothetical example Sallie Mae, How America Pays for College, 2022. Based on average tuition, fees, and room and board costs for 2022-23 school year. does not represent the performance of any particular investment. Different assumptions will result in outcomes different from this example. Your results may be more or less than the figures shown. These figures do not reflect the impact of fees or expenses that would be paid by a 529 plan participant. Such costs would lower performance. A plan of regular investment cannot ensure a profit or protect against a loss in a declining market. ge costs estimated to inflate 5% per year. 21
Page 1 and 2: iwaplan.com Q1 2023 IN REVIEW
Page 3 and 4: A WILD RIDE TO START THE NEW YEAR 2
Page 5 and 6: STOCK AND BOND CORRELATION 2023 Q1
Page 7 and 8: 2023 Q1 IN REVIEW CASH BEING YANKED
Page 9 and 10: SINCE MARCH 2020, WE HAVE SEEN: 202
Page 11: INVESTMENT COMMITTEE 2023 Q1 IN REV
Page 15 and 16: HOW DOES DONATING TO CHARITY REDUCE

2023 Q1 In Review - Integrity Wealth Advisors, Ventura & Ojai, California

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