Tripp Yates, CFP®, CPA/PFS Eaglestrong Financial

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About Tripp Yates, CFP®, CPA/PFS

Tripp has extensive experience in financial planning and investment management, and he diligently uses his credentials of CPA and CFP® to benefit his clients. Over the last ten years, he has managed over $100 million in assets for individuals and families.

Tripp’s interest in investments started when he was young and was intrigued by his grandfather’s savvy investment knowledge. When he realized staying in public accounting was not his ultimate goal, he was excited to take his career in this direction.

His passion for financial planning is evident to each and every client he meets with. His desire is to help his clients organize their finances, save taxes, and invest wisely. Tripp strives to work in a humble and transparent way.

When he is not managing his firm and his clients, Tripp enjoys spending time with his family, running, and cheering on the Rebels and the Cubs.

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Recently Published

Payroll Protection Program

March 29, 2020

Coronavirus Emergency Loans Payroll Protection Program

 

Excellent steps from the US Chamber of Commerce for small business owners to take to obtain an emergency loan in the Paycheck Protection Program. Independent contractors included as well.

  

Tripp Yates, CPA/PFS, CFP®

901.413.8659  gevcc@rntyrfgebat.pbz

 

Tripp’s passion for financial planning is evident to each and every client he meets with. His desire is to help his clients organize their finances, reduce taxes, and invest wisely. As a fee-only fiduciary advisor, Tripp strives to work in a humble and transparent way.

 

With extensive experience in financial planning and investment management, Tripp diligently uses his credentials of CPA and CFP® to benefit his clients. Over the last ten years, he has managed over $100 million in assets for individuals and families. In 2017, he founded Eaglestrong Financial, specializing in helping dentists and business owners. Outside of work, Tripp enjoys running, spending time with his family, and cheering on his favorite sports teams. He is an active member of Harvest Church. 


 

References

https://www.uschamber.com/sites/default/files/023595_comm_corona_virus_smallbiz_loan_final_revised.pdf  

 

 

 

Disclaimer

Eaglestrong Financial, LLC is a Registered Investment Advisor offering advisory services in the states of TN and MS and in other jurisdictions where exempted. The information contained herein is not intended to be used as a guide to investing or tax advice. This material presented is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities. Past performance is no guarantee of future results.

 

 

#eaglestrong #eaglestrongfinancial

 

 

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Coronavirus & the Stock Market

February 29, 2020

Coronavirus and the stock market

 

Last week, the uncertainty surrounding the impact of the coronavirus struck the financial markets. Starting on Thursday, February 20th, through the end of day Friday, February 28th, the U.S. (S&P 500) and World (MSCI World) stock market indices have seen declines of 12.7% and 11.5% respectively. The S&P 500 recorded its fastest correction ever (decline of 10%) from an all-time-high over six trading days. You will read that headline along with many others to provoke fear. For example, let’s take a look at one misleading headline. While the Dow Jones Industrial Average suffered its worst point drop in history on Thursday, February 27th, it was the 125th worst from a percentage perspective which is what is relevant to the actual impact to investors.

  

Coronavirus and the stock market

 

While not minimizing the frustration and anxiety that market downturns cause, I want to share facts and perspective that will give you clarity.

 

The spread of the coronavirus will most likely lower profits of businesses in the first half of this year which will lead to slower growth in the economy. The bigger question is how much of an impact and how long will this go on. That is what markets are reacting to right now. No one has an answer yet. While every event-driven situation is different, I do think looking back at them provides context to situations where uncertainty existed in the short-term much like today.

 

  • The S&P 500 fell 12% the week after U.S. officials reopened markets for trading following the September 11th attacks in 2001.

  • During the SARS (severe acute respiratory syndrome) outbreak in 2003, stocks fell as much as 13%. Other viruses had less impact on the stock market.

Coronavirus and the stock market
Source: Citi Research, FactSet, CNBC

 

In each of these cases, the market recovered as more confidence was gained in the global economy and the worst fears were avoided.

 

It may be hard to believe given the low volatility in the markets in both 2017 and 2019 but, on average, the U.S. stock market declines 13.8% from top to bottom every year (see red dots in the chart below). Corrections and market declines are to be expected. Even still, the U.S. stock market produced positive calendar year returns 75% of the time over the last 40 years (see gray bars in the chart below). With the swift correction last week, we are sitting close to the average annual yearly decline.

 

Coronavirus and the stock market
Source: FactSet, Standard & Poor’s, J.P. Morgan Asset Management Guide to the Markets 12/31/19

 

I’ve often said the market is similar to taking five steps forward and two steps back. This is generally how the market works. There are anomalies like the 2008 financial crisis. To understand where we are after the pullback last week, the S&P 500 ended the week at 2954.22. The index was 2952.01 on October 4, 2019. Basically, we are back to where the market was in October of last year (5 months ago). For long-term investors, that is a short period of time.

 

Declines are expected; the speed of the current one last week is what is unusual. However, there are no rules for the market to follow as to the speed on the way up or down. In order to capture long-term market returns, we have to endure downturns that come in different forms.

 

Just as a reminder, the market is always climbing a wall of worry. The chart below looks back at all the reasons to sell going back to March 2009.

 

Coronavirus and the stock market

 

Whether you are a retiree, middle-aged investor, or young person just starting to invest, stay focused on your goals. Your allocation to stocks, bonds and cash is determined in order to achieve a long-term rate of return. Those allocations account for corrections like we experienced last week but put more emphasis on the expected long-term rate of return which is what ultimately creates and preserves wealth.

 

Sometimes a simple image can bring clarity. I believe the one below from Behavior Gap puts the last week in perspective.

 

Coronavirus and the stock market
behaviorgap.com

 

While no one knows how long the virus impact will last or if we will see further downturn in the stock market, rest assured it will pass. Our goal is to help you tune out the noise and look beyond the headlines. I encourage you to watch and listen to the short two-minute video below. As another advisor put it on twitter this past week, “don’t bet against human grit and ingenuity in the long run.” We couldn't agree more.

 

    

If you would like to discuss or learn more, schedule a call or meeting with me using the link below:  

Tripp Yates, CPA/PFS, CFP®

901.413.8659  gevcc@rntyrfgebat.pbz

 

Tripp’s passion for financial planning is evident to each and every client he meets with. His desire is to help his clients organize their finances, reduce taxes, and invest wisely. As a fee-only fiduciary advisor, Tripp strives to work in a humble and transparent way.

 

With extensive experience in financial planning and investment management, Tripp diligently uses his credentials of CPA and CFP® to benefit his clients. Over the last ten years, he has managed over $100 million in assets for individuals and families. In 2017, he founded Eaglestrong Financial, specializing in helping dentists and business owners. Outside of work, Tripp enjoys running, spending time with his family, and cheering on his favorite sports teams. He is an active member of Harvest Church. 


 

References

https://www.wsj.com/articles/the-week-that-wiped-3-4-trillion-off-the-stock-market-11582891223

https://www.usatoday.com/story/money/2020/02/27/dow-markets-plunge-correction-coronavirus/4889977002/

https://www.cnbc.com/2020/01/28/market-reactions-to-major-virus-scares-show-stocks-have-more-to-lose.html

https://finance.yahoo.com/quote/%5EGSPC/history?p=%5EGSPC

https://twitter.com/RyanDetrick/status/1233167655089078272/photo/1

https://twitter.com/RyanDetrick/status/1233168791116374017/photo/1

https://twitter.com/michaelbatnick/status/1233418188207067138/photo/1

https://www.wsj.com/articles/the-virus-and-the-economy-11582935404

 

 

 

 

Disclaimer

Eaglestrong Financial, LLC is a Registered Investment Advisor offering advisory services in the states of TN and MS and in other jurisdictions where exempted. The information contained herein is not intended to be used as a guide to investing or tax advice. This material presented is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities. Past performance is no guarantee of future results.

 

 

#eaglestrong #eaglestrongfinancial

 

 

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Recent Legislation Brings Changes to Retirement Accounts

February 22, 2020

What does the SECURE Act stand for?

 

The SECURE Act became effective January 1, 2020 and has implications for retirement accounts and estate planning. I’ll highlight the key changes and how they may affect financial planning going forward.

 

The Stretch IRA has been eliminated for most people:

 

Your children or other non-spouse beneficiaries can no longer inherit an IRA and withdraw minimum amounts each year over their lifetimes. Starting January 1, 2020, the money in these IRAs will have to be withdrawn within a 10-year period. Keep in mind the benefit of a stretch IRA was to allow the beneficiary to let the IRA continue to grow with only minimum withdrawals and tax associated over their lifetimes. For inherited IRAs created before January 1, 2020, those beneficiaries will be able to continue to stretch the IRA and withdraw over their lifetimes.

 

Surviving spouses and certain special situations such as those beneficiaries who are disabled or chronically ill can still stretch the IRA required minimum distributions (RMDs) out over their lifetimes. Surviving spouses will continue to be able to roll their deceased spouse’s retirement account into their own. 

  

SECURE Act retirement account beneficiaries withdrawal requirements

 

Required Minimum Distributions (RMDs) starting age changed from 70 ½ to 72:

 

The new law has extended the age for starting required minimum distributions from your IRA. Those already age 70 ½ and taking RMDs will continue. For those who have not started RMDs and turn age 70 ½ in 2020 or later, you will not be required to start taking them until age 72 now. This is good news for those who want to delay withdrawals as long as possible to avoid recognizing income and paying the taxes associated.

 

IRA Contributions Allowed at Any Age Now:

 

In the past, once you reached age 70 ½, you could no longer contribute to an IRA even if you were still working. With the new law, the age limit has been removed. You can now contribute to both traditional IRAs and Roth IRAs at any age as long as you have earned income.

 

New Parents Can Now Make Penalty Free Withdrawals:

 

Within a year of birth or child adoption, new parents can now take penalty-free distributions up to $5,000 to cover related expenses from an IRA or other retirement plan. Income taxes will still be owed on these distributions but the 10% penalty on early withdrawals will be avoided.

 

Utilizing 529 Plans for Student Loan Payments:

 

You can now withdraw up to $10,000 from 529 savings plans to make student loan payments. These withdrawals would be tax and penalty free.

 

My Thoughts:

 

It is clear that Congress recognizes that people are living and working longer with the extension of the start date for RMDs and also cancelling the age requirement to make IRA contributions. The elimination of the stretch IRA does bring changes to estate planning. In the past, a commonly used technique was to leave your assets in trust for your children with IRAs still having the stretch provision ability. Now with the withdrawal limit being 10 years, some documents will need to be reviewed and updated. The expectation is that there will be more explanation how this new law affects trusts in the coming months. 

 

SECURE Act financial planning for inherited IRAs

 

Not only does this Secure Act affect retirement and estate planning, but also tax planning. Under the new 10-year rule, the funds in an inherited IRA can be withdrawn at any time as long as they are depleted at the end of 10 years. This opens the door for tax planning such as allowing withdrawals to be taken equally over 10 years, all in one particular year if the beneficiary has lower taxable income or postponing the entire withdrawal until year 10.

 

For perspective, under the old laws where children who inherited an IRA from a parent were able to stretch the IRA withdrawals over their own lifetime, a 50-year old person who received an inherited IRA from a parent would be required to take an initial withdrawal of approximately 3% of the retirement account the year following their parent's death. That withdrawal rate would increase slightly each year and rise to approximately 4% by age 60 and 7% by age 70. The stretch IRA allowed more tax deferral for those who did not need more withdrawals than the minimum required from inherited IRAs. The new 10-year rule speeds up the required withdrawals which could cause an increase in taxes for beneficiaries. 

 

 

 

So, what are the takeaways or action items:

 

  • Review your IRA/401(k) beneficiaries and estate planning documents
  • Consider IRA or Roth IRA contributions if you are over age 70 ½ and still working
  • Consider a Roth Conversion on a portion of your IRA assets to have more control over the tax associated

    

If you would like to discuss or learn more, schedule a call or meeting with me using the link below:  

Tripp Yates, CPA/PFS, CFP®

901.413.8659  gevcc@rntyrfgebat.pbz

 

Tripp’s passion for financial planning is evident to each and every client he meets with. His desire is to help his clients organize their finances, reduce taxes, and invest wisely. As a fee-only fiduciary advisor, Tripp strives to work in a humble and transparent way.

 

With extensive experience in financial planning and investment management, Tripp diligently uses his credentials of CPA and CFP® to benefit his clients. Over the last ten years, he has managed over $100 million in assets for individuals and families. In 2017, he founded Eaglestrong Financial, specializing in helping dentists and business owners. Outside of work, Tripp enjoys running, spending time with his family, and cheering on his favorite sports teams. He is an active member of Harvest Church. 


 

References

https://www.kitces.com/blog/secure-act-2019-stretch-ira-rmd-effective-date-mep-auto-enrollment/

https://www.kitces.com/blog/secure-act-stretch-ira-401k-elimination-eligible-designated-beneficiary-retirement-accounts-taxes

https://www.irahelp.com/printable/2019-single-life-expectancy-table-0 

 

 

 

Disclaimer

Eaglestrong Financial, LLC is a Registered Investment Advisor offering advisory services in the states of TN and MS and in other jurisdictions where exempted. The information contained herein is not intended to be used as a guide to investing or tax advice. This material presented is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities. Past performance is no guarantee of future results.

 

 

#eaglestrong #eaglestrongfinancial

 

 

Share with others:

Read the full post →

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Ideal Clients

  • Business Owners
  • Dentists
  • Gen X

Ways Advisor Charges

  • Monthly Fee
  • Flat Fee
  • Assets Under Management

Fee Options

  • Monthly Fee: $200+/month
  • Flat Fee: $500+ one-time packages
  • AUM: 1%

SEC Records

States Registered

  • Tennessee

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