We're Glad Thanksgiving Follows Halloween

October 2023 - Don't Be Scared, Be Thankful

This might hit home...

"Put your oxygen mask on yourself first before helping someone near you."

This saying applies to various aspects of life, and in recent years, there has been a growing trend of parents assisting their children with finances. While this act is commendable, it can have risks for both parents and children.

We can all agree that helping your children is important, but "help" can take many forms. Some parents choose to offer financial assistance, while others may not have that option or set different expectations. Regardless of your choice, we strongly urge you to ensure your own financial stability first.

According to the National Retirement Risk Index (NRRI), nearly half of all retirees "are at risk of not having enough" to enjoy retirement fully. Are you aware of your household's financial standing?

If you require assistance, let our team support you!

With over 140 years of combined experience in the financial industry, we cover all aspects of your financial life. Our Purpose Built Planning process is designed to enhance awareness and align your hard work with your life's goals.

Don't hesitate to contact us at (865) 379-8200 or via email at info@lecontewealth.com.

Imagine a mountainside meadow lit by the morning sun, where cows graze peacefully. Does it resemble something like this?

This image represents one of the earliest forms of wealth, but it barely scratches the surface of what defines modern business. Everything has a history, and the business landscape we know today is vastly different from that of a thousand years ago. Today, the landscape is intricate and has been molded by visionaries like John Rockefeller, Henry Ford, Sam Walton, Bill Gates, and Elon Musk. These titans of industry built upon the foundations of traditional barter systems and small-town commerce to shape our contemporary business world. While these names are widely recognized, there were influencers who came before them and many in between.

>Click here to read about the life of Godric and his pursuit of money, power, and purpose

Alex Willard, EA
Client Advisor
LeConte Wealth Management

Where were you on October 4th at 2:20 Eastern Standard Time?

If you were near a phone or television, you heard FEMA conduct a test of our nation-wide emergency EWS communication capabilities. I was on a phone call with a client at the time and the warning even broke into my call and interrupted our conversation. What makes it a little weird is that it occurred the day after Russia conducted their own emergency broadcast test. (Not originally included, and less than a week before Israel was attacked)

Now that we're into October, what should we expect?

>Click here to read why practice drills are necessary and where we go from here

Hoy Grimm

Managing Partner
LeConte Wealth Management

Recently Published On Financial Friction

 >Should I pay more tax today?

Jon Dockery
Managing Partner
LeConte Wealth Management

 >The Importance of Setting Goals

Wes McNeillie
Tax and Planning Specialist
LeConte Wealth Management

 >The Pitfalls of Annuities: Why They Might Not Be the Ideal Investment

Kevin Painter
Managing Partner
LeConte Wealth Management

Economy In Focus

The Data: 

• 4.9% - GDP up in Q3
• 8% - 30-year mortgage rates highest since since 2000
• $1.766 trillion - Outstanding student loan debt in the US

Commentary:

Making sense of recent economic developments is like tossing a coin, uncertain and surprising.

In the third quarter, the Gross Domestic Product (GDP), which represents the total value of goods and services, surged at an annual rate of 4.9%. To many, this uptick is unexpected, given the challenges of increasing prices and rising interest rates. Mortgage rates hit a staggering average of 8% in mid-October, the highest since 2000, making it necessary for prospective homebuyers to earn nearly $115,000 to afford a typical U.S. home.

Moreover, there's been a significant change in the landscape of student loans. After a lengthty forbearance period lasting forty-three months, students now have to resume their loan payments.

One of the surprising aspects of the past year has been the resilience of consumers. To grasp the full picture, we need to consider the financial numbers since 2020:

• PPP loans amounted to $943 billion, with almost half of this forgiven.
• Three rounds of consumer stimulus checks for consumers added up to $814 billion.
• Payments on student debt, previously in forbearance, totaled $260 billion.
• Around 14 million households refinanced their mortgages, reducing their monthly payments and tapping into home equity, which accounts for $400 billion. (See Chart Below)

Since 2020, over $2 trillion has made its way back into the pockets of consumers, sustaining stable spending trends. However, the era of very low interest rates that enabled these developments has ended. Now, the question is whether household finances will face tightening in the coming months.

LeConte In The News

Our team had the opportunity to set up at the 8th Grade Career Exploration Fair at the Knoxville Airport Hilton this month. We discussed the wealth management industry, what a 401k is, shared tips on getting started, and fielded questions about our profession.

Our takeaway: We've got some brilliant, young, and curious minds passing through our local schools!