�?�June 2023 - Debt Ceiling Increased, Rates Likely to Rise

Summer presents a valuable opportunity to redeem your time by redirecting your attention towards aspects of your (financial) future that often get neglected amidst the demands of day-to-day life. Though summer presents a prime opportunity for relaxation and enjoyment, here are a few ways you can make the most of this season and make it productive:

1. Financial Assessment: Take a step back and conduct a thorough evaluation of your current financial situation. Review your income, expenses and savings. Identify areas where you can improve.

2. Goal Setting: Define clear and specific financial goals that you may have neglected in the busyness of daily life. Whether it's saving for a down payment, beefing up your emergency fund, or planning for the next transition in life - create a roadmap to reach them.

3. Behavior: Dive into the realm of behavioral finance, understanding how cognitive biases and emotional tendencies can impact your financial decision-making. Reflect on your own behaviors and take steps to cultivate healthier habits that align with the goals you set.

4. Review and Optimize: Set up a reminder on your calendar no more than 6-months from now to automate  

If you would like our team to help you get back on track, reach out at (865) 379-8200 or email us at info@lecontewealth.com.

In our everyday lives, we make many decisions, big and small. They typically range from trivial choices like what to have for breakfast to more significant choices like career moves or investments you make. But sometimes we don�??t realize that bias can affect how we make those choices. Bias is a natural part of how our minds work and it can influence our thoughts, perceptions, and decisions. Understanding bias is important if we want to make informed decisions that match our goals and values.

�?�Confirmation Bias: What is it and how it impacts

Have you ever noticed that people tend to pay attention only to information that supports what they already believe? That�??s confirmation bias, and it can have a big impact on our financial decisions.

When we want to make good financial choices, confirmation bias can be a problem. But if we understand and address this bias, we can make better decisions and avoid mistakes.

Confirmation bias means we tend to look for, interpret, and remember information that agrees with what we already think. We ignore or downplay evidence that doesn�??t match our beliefs. This bias can subtly affect our choices, especially financial choices.

For example, let�??s say an investor strongly believes a certain company will grow in the long term. They�??ll actively look for positive news and opinions that support their belief. At the same time, they might ignore negative news or warnings about potential risks. This makes the investor more confident in their initial belief and less likely to consider other viewpoints. This bias can stop investors from reviewing their decisions, diversifying their investments, or adapting to changes in the market. It�??s important for investors to recognize confirmation bias and stay open-minded. They should seek different perspectives, do thorough research, and question their own assumptions to make better choices.

To reduce the impact of confirmation bias, there are a few strategies to try:

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Alex Willard, EA
Client Advisor
LeConte Wealth Management

As we roll toward Summer, I�??m sure a lot of our lives are changing to the more relaxed time of no school and more vacations. However, this Summer is different for one of my kids. We�??ve usually been consumed with baseball tournaments and everything sports, but for a few months he�??s taking a break and working his first job. I kind of knew this would be different for him, but the reality has been interesting to observe.

�?�His life has been fairly carefree to this point with school and sports being most of his daily grind. He�??s a smart kid, so school success comes with little effort or time dedicated to studies. In the same manner, sport�??s success has come from a lot of natural talent and the time dedicated to practice seemed more like fun than an obligation. That made me wonder how a job would fit into his little perfect world. As expected, it only took a few days before the initial complaints started. The new experience of a job and hard work had taken its toll on him.

It can be challenging to do things you've never done before for several reasons:

1. Lack of Experience: When you�??re doing something for the first time, you lack familiarity with the task, or the skills required to do it correctly.

2. Fear of Failure: Trying something new often involves stepping outside of your comfort zone. This can create uncertainty and a fear of failure, as you may be unsure of the outcome or worry about making mistakes.

3. Resist Change:

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Jon Dockery, CPA
Managing Partner
LeConte Wealth Management

One of our retired clients approached us earlier this year asking about leaving a legacy. They were reflecting on their estate plan and how to create a lasting impact for causes they were passionate about. We created a strategy using a Donor Advised Fund to help them align their charitable giving with their goals, maximize tax benefits and engage in purposeful philanthropy. Donor Advised Funds (DAFs) are an excellent choice for retirees seeking to create a meaningful legacy in the following ways.

Streamlining Charitable Giving

Retirees often have diverse charitable interests and are often approached by many organizations (i.e., letters in the mail) for donations. DAFs simplify this process by consolidating charitable giving into one account. The donors are then enabled to manage and distribute funds from their account to multiple charities and causes.

Tax Advantages

Investing in Donor Advised Funds offers significant tax benefits for those donors. By contributing appreciated assets such as stocks, mutual funds, or real estate to a DAF, retirees can avoid capital gains taxes on the appreciation. Additionally, they can take an immediate tax deduction for the fair market value of those contributions to the DAF, potentially reducing their taxable income. The tax advantages can optimize the donor�??s giving capacity while providing valuable savings for their overall financial plan.

Philanthropic Legacy

Our client had a wish to leave a meaningful legacy and support causes they are passionate about. Donor Advised Funds provide clients with the opportunity to shape their legacy by involving their loved ones. Retirees can designate successors, such as children or grandchildren, who can continue the family�??s philanthropic traditions by advising on how the money is given away. This fosters a sense of shared values and allows the client�??s legacy to live on through future generations.

Strategic Giving and Impact

Our retired client wanted to make a meaningful difference with their charitable contributions. DAFs empower clients to engage in strategic philanthropy, researching new causes and organizations that they previously knew nothing about. They can identify organizations that align with their values to have a measurable impact on the communities and causes they care so deeply about.

By investing in Donor-Advised Funds, retirees can streamline their giving, optimize significant tax benefits, involve their children in their philanthropy, and think strategically to provide a lasting impact. It�??s a wonderful tool that we use in broader charitable and estate planning discussions with our clients. Our team can help our clients transform their resources for the greater good and create a legacy that reflects their values and passions.

Kevin Painter

Managing Partner
LeConte Wealth Management

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LeConte Wealth Management

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Wes McNeillie, CFP
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LeConte Wealth Management

Leconte in the news

�?�The LeConte Wealth Management team had a blast at the 30th Annual United Way of Blount County golf tournament earlier this month.

(Pictured left to right: Alex Willard & Jon Dockery)