Beyond the Ballot

October 2024 - Beyond the Ballot

Getting Back to Basics

Last month, we referenced the "Attention Economy," and how the challenge lies in managing what captures our attention.

With distraction everywhere - it is a tough opponent to beat. But as we saw with Tennessee's hard-fought 24-17 win over Alabama, getting back to the basics is often the best strategy. Just like the Vols leaned on disciplined blocking and tackling to come out on top (we do not need to discuss the first half), we can apply the same fundamentals to financial planning, especially in the complex environment we experience today.

General Robert Neyland, a legendary coach known for his straightforward approach, once said, "The team that makes the fewest mistakes will win." It is a maxim that applies just as well to finances as it does to football. Purpose Built Planning follows this same game plan - our approach is designed to block out distractions and keep our clients focused on their financial goals with clarity and precision. 

By focusing on the fundamentals and minimizing errors, we help you navigate challenges with confidence. Just like the Vols did on the third Saturday in October, our goal is for you to emerge victorious on the financial field, equipped with a strategy rooted in purpose and preparation. 

Horror Show

Trouble in D.C., and something needs to change - fast!

With federal tax receipts historically increasing year over year, government spending has soared even more. Washington does not have an income problem, they have a spending problem. If they do not return to fiscal reality soon, we may not have any fiscal runway to work with when the next real financial crisis arrives.

> Read more here

Hoy Grimm
Managing Partner
LeConte Wealth Management

Understanding Revocable Trusts

The word "probate" tends to evoke dread, and for good reason - it can take an average of 20 months and consume 3-7% of an estate's total value. This process not only delays the transfer of wealth to heirs but can also create unnecessary stress. Ensuring your estate is properly aligned with your goals and wishes is crucial.  

There are many strategies to achieve this, and it's important to allow yourself time to explore them with knowledgeable professionals. One of the most flexible and widely used tools is a revocable trust, also known as a living trust. This legal arrangement allows you to maintain control over your assets, protect them, and most importantly, bypass the lengthy probate process.  

To learn more, read here.

Kevin Painter
Managing Partner
LeConte Wealth Management

Recently Published On Financial Friction

 > Patience

Jon Dockery, CPA
Managing Partner
LeConte Wealth Management 

> Hey, Can I Have Your Attention?

Alex Willard, EA
Purpose Built Planning Director
LeConte Wealth Management

Economy In Focus

The Data: 

• 122.3 - Debt as a percentage of GDP
• 28.40 - Price to Peak Earnings
• 26 - Percentage of pullback of refinance applications

Commentary:

Economic trends continue to reveal tension between government debt, equity valuations, and consumer spending. U.S. debt-to-GDP now exceeds 120% - an all-time high as of Q2 2024 - highlighting Washington's growing reliance on borrowing for economic growth, a path made less sustainable by elevated interest rates. The S&P 500's price-to-peak earnings ratio, a key measure of valuation, signals market pressure as it reaches heights seen only once in 25 years, bringing questions about current valuations and resilience. Meanwhile, mortgage applications fell 17% in mid-October as higher rates, now averaging 6.52% for a 30-year fixed, dampened refinance and purchase activity, though demand among first-time buyers remains somewhat resilient amid improved inventory.

With the upcoming election, markets may experience heightened volatility as candidates present differing fiscal and regulatory priorities. Investors should keep an eye on policy discussions that could impact sectors like healthcare, energy, and technology, as well as potential shifts in tax and spending plans. Regardless of election outcomes, staying focused on long-term financial goals and maintaining a balanced, diversified portfolio is key to navigating any short-term uncertainty in the economic landscape.

LeConte In The News

On October 23rd, Jon Dockery and Alex Willard represented LeConte Wealth Management at the 8th Grade Career Exploration Fair, an annual event dedicated to connecting students with diverse career paths. Serving over 1,500 eager 8th graders from local schools, Jon and Alex offered insight into the financial services industry, sharing firsthand knowledge on what it means to work in wealth management. 

Through engaging conversations, they discussed topics like financial planning/projections, tax strategy, and investment management, introducing students to career possibilities in finance while helping them understand the value of financial literacy.

LeConte Wealth Management remains committed to community involvement, believing that an early introduction to financial concepts can shape students' long-term success.

Contact us

865-379-8200

[email protected]