October 12th, 2024 In-Person Chapter Meeting & Webinar

How to Increase Income in a Falling Interest Rate Environment

Announcements:

  • Get-togethers/GIG TBD for now (probably Oct. 22); email [email protected] to get on the email list or check the Chapter Information page closer to the 22nd
  • Lunch with speaker following meeting at Cape Fear Seafood Company (Village District)
  • For our chapter meeting, we will meet in the fellowship hall on the ground floor of Fairmont United Methodist Church near NC State. For parking and building entry instructions, see location details below.
  • Michael Lewis will be assisted by his colleagues Todd Iglehart, Chief Investment Officer, and Gary Pysz, Senior Advisor.
  • We have three Special Interest Groups/get-togethers that meet monthly. Please see the Chapter Information web page for more details.

According to the Fed, inflation is under control and interest rates will be cut. For how long and how deep is anybody’s guess. For those investors who require a certain level of income, finding alternatives to a 4.9% 1-month treasury bill is difficult. The current dividend yield on the S&P500 is 1.32%. Clearly other alternatives need to be considered.

What you will learn:

  • How declining interest rates affect your entire portfolio. Interest rate sensitivity is not limited to fixed income investments. Ignoring the impact of declining interest rates on other asset classes can cause underperformance.
  • Pre-tax and after-tax considerations on capital gains and income. Price appreciation is taxed at the capital gains rate. Interest and dividends are taxed at your personal tax rate. Have you incurred a greater tax liability because of your portfolio rebalancing?
  • How to factor your risk tolerance when making changes to your portfolio. If you have been managing your portfolio at age 60 the same way when you were 30, maybe it’s time to re-evaluate your risk tolerance. Structuring your portfolio with an emphasis on current income may be subjecting your principal to unnecessary market risk.
  • What alternatives are there to fixed income. Correlation is an important factor when managing the risk of a portfolio. Liquidity is another factor. Before expanding your portfolio to include alternative asset classes, be informed on all the costs, correlations, and risks associated with any investment.

Meeting Details:

Date: Saturday, October 12, 2024

Time: 10:00 a.m. ET (mix and mingle starts at 9:30)

Location: Fairmont United Methodist Church: 2501 Clark Avenue Raleigh, NC 27607. Parking is available on the west side of the church (accessible only from Clark Ave.) and across the street, north east of the church. Please follow signs to enter the building. The north entrance on Clark Ave. requires going down 18 stairs. The southeast entrance on Horne St. only requires going down 3 stairs.

Virtual access: To register to attend the Zoom webinar, please purchase a ticket on our chapter’s Square account

Cost: $7 cash (in-person) or electronic payment (webinar)

Before attending in person, please read:

If you feel sick, please join us virtually.

About Our Speaker

Michael is currently the Chief Behavioral Officer for Family Legacy Financial Solutions, a family wealth office with ~$140 Million under management.

Michael’s background on Wall Street involved generating risk-adjusted returns while reducing expenses for institutional and high-net-worth clients. This consists of managing multi-million-dollar budgets for institutional banking facilities, designing and implementing advanced technologies to improve investment performance, and managing a billion-dollar bond portfolio, whose performance was in the top decile.

Michael offers behavioral finance coaching, financial planning, and cutting-edge technology to create a financial plan customized for your family. Michael designs comprehensive financial and estate plans for benefactors that last a lifetime and through their passing by deploying creative strategies that ensure the desires of the benefactor are carried out in a tax-efficient manner while protecting eligibility for government assisted programs.

Michael has been a frequent guest on multiple podcasts, and recently co-authored a book entitled “The Caregivers Advocate”.