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Cherry Tree Wealth Insights

When Will This Bear Market End?

We recently entered a bear market in U.S. stocks, as defined by a drop of 20% or more from the recent peak. Many investors are wondering how much lower might stocks go this year, and when will this bear market end? Nobody knows the answers to these important questions for sure, but it may be helpful to look at the history of previous bear markets for some perspective. Below is a table from Charlie Bilello of all the U.S. Bear markets since 1929.

Read more of Cherry Tree Wealth Insights When Will This Bear Market End?

Educational Material

Cherry Tree shares its viewpoint on market timing considerations.

Educational Material

Cherry Tree shares its viewpoint on market timing considerations.

Cherry Tree Wealth Insights

SMART TAX STRATEGIES AT RETIREMENT

TWO SMART TAX STRATEGIES TO USE DURING THESE GAP YEARS:

1. Take long-term capital gains on purpose with a 0% tax rate. For a couple the 0% capital gains tax rate goes up to $83,350 of gains in 2022.
2. Roth conversions. Transfer money from your regular IRA to a Roth IRA at relatively low tax rates.

Which of these two smart retirement tax strategies is best for you?

Read more of Cherry Tree Wealth Insights “Smart Tax Strategies at Retirement”.

Cherry Tree’s John O’Connor Receives CFP® Certification

Cherry Tree Wealth Management is please to announce that John O’Connor has obtained his CFP® certification. For more than 30 years, CERTIFIED FINANCIAL PLANNER™ certification has been the standard of excellence for financial planning. CFP® professionals are rigorously trained in 72 areas of financial expertise and must accrue thousands of hours of experience prior to earning their certification.

Cherry Tree Wealth Insights

Another Horrible Year for Stock Pickers

Trying to pick stocks that will beat the overall stock market index is extremely difficult and has gotten much more difficult over time. It is a loser’s game. In 2021 86% of all actively managed U.S. stock funds underper-formed their benchmark index. That was the 12th year in a row that they have underperformed the index. That is an impressively bad and consistent track record. The vast majority (80%) of investors and funds that try to pick stocks end up lagging behind the simple index significantly over a 10-year time period. >>read entire newsletter

Cherry Tree Wealth Insights

Be Consistently Not Stupid With Your Money 

It turns out that being consistently not stupid with your money is one of the most important keys to longterm financial success. Avoiding investments in dumb things is more important than finding that one genius investment idea that you think will make you rich. And, it is much easier to do. As an emotional human your brain is pre-programmed to tempt you to do unwise financial things such as chase the latest hot investment fad (greed) or sell low after a big stock market decline (fear). The best answer to most exciting investment ideas being pitched to you is to “just say no.”  >>read entire newsletter

Cherry Tree Wealth Insights

Should I invest in Bitcoin? 

Some of the most popular trading products in 2021 have been digital currencies like Bitcoin, and many of them have more than tripled in value so far this year. Bitcoin is a digital asset that works as a medium of ex-change where individual coin ownership records are stored in a computerized database to secure transaction records, control the creation of additional coins, and verify the transfer of coin ownership. Many people believe these digital currencies will supplement or replace traditional government currencies such as the U.S. dollar. Some people are worried about traditional paper currencies due to inflation and rising government debts and are looking for a “safer” place to have their money. >>read entire newsletter

PlanStrongerTV™ | Episode 502: Shift to Distribution

Avoiding Retirement Financial and Tax Mistakes

Cherry Tree Wealth’s Conner Kolodge, CFP®, shares some tips on how to avoid mistakes and deal with the challenges of a successful retirement in an interview with David Holland, CPA, CFP®.

Retirement can be a welcome change for many workers but brings its own unique challenges both psychologically and financially. The literal shift from saving to spending from your nest egg is equally daunting from a personal perspective as well as in regards to tax and investment planning. The necessary shift in mindset and the different planning opportunities that arise in the retirement years stress the importance of awareness in every facet. The awareness of the sustainability of the investment plan and a sound tax strategy can provide the foundation for the relaxing retirement many envisioned from the get-go. 

>watch full episode  |  >watch clip with Conner Kolodge

Cherry Tree Wealth Insights

The Psychology of Money 

The new book The Psychology of Money by Morgan Housel is the best book on personal finance since The Millionaire Next Door in my opinion. The book contains timeless lessons on wealth, greed, and happiness. The main premise of the book is that doing well with money has little to do with how smart you are, and a lot to do with how you behave. Good behavior is hard to teach, even to very smart people. Dealing with money (well or poorly) is a topic that impacts everyone, whether you are interested in it or not. This note highlights some of the best points of this book by Morgan Housel. >>read entire newsletter

Required Minimum Distribution 

This note “Required Minimum Distributions 2020 Edition” examines potential opportunity due to the tax-law change of no required minimum distributions from IRA’s or employer sponsored retirement plans (401k/403b) in the year 2020. Individuals over the age of 72 as well as those who have previously inherited an IRA, have the choice of whether to still take a taxable distribution even though it is not required. Whether or not it is prudent to do so may require specific analysis. Although we know not all of our newsletter recipients fall into those two categories, most have relatives or close family and friends who may and could benefit from sound guidance. In this issue of Cherry Tree Wealth Insights, we take a look at potential opportunity and how this might affect you. Written by our advisor Conner Kolodge, CPA.

Required Minimum Distributions 2020

Cherry Tree Wealth Insights

Tax Planning in an Election Year

This note “Tax Planning in an Election Year” looks at how future tax rates may change, how they are likely to increase, and how clients may try to plan around those coming tax changes. In this issue of Cherry Tree Wealth Insights, we take a look at the possible change over the next 6 years and how this might affect you.

Tax Planning in an Election Year

Cherry Tree Wealth Insights

The CARES Act Waives 2020 Required IRA Distributions

The world has changed drastically in the last month or so. Because of the economic damage caused by COVID-19, the U.S. passed the CARES Act. One of the provisions is that Required Minimum Distributions (RMDs) are waived for 2020. In this issue of Cherry Tree Wealth Insights, we take a look at how this might affect you.

CTW Newsletter 04 2020 The CARES Act

Cherry Tree Wealth Management recognized as 2020 Five Star Wealth Managers

We are pleased to announce that our Investment Advisors Keith Tufte, John O’Connor, Conner Kolodge, and Chelsea Tufte of Cherry Tree Wealth Management were named 2010 Twin Cities “FIVE STAR” Wealth Managers by Twin Cities Business Magazine and Mpls.St.Paul Magazine. Keith and John were also winners in 2016-2019.

Wealth advisors were evaluated on customer service, knowledge/expertise, communication, experience, client retention, a clean regulatory record, and overall client satisfaction.

CTW 2020 Five Star Wealth Manager Handout

Cherry Tree Wealth Management recognized as 2019 Five Star Wealth Managers

We are pleased to announce that our Investment Advisors Keith Tufte, Kathleen Tranovich, John O’Connor, and Conner Kolodge of Cherry Tree Wealth Management were named 2019 Twin Cities “FIVE STAR” Wealth Managers. Keith, John, and Kathleen were also winners in 2016, 2017, and 2018.

Wealth advisors were evaluated on customer service, knowledge/expertise, communication, experience, client retention, a clean regulatory record, and overall client satisfaction.

CTW 2019 Five Star Wealth Manager Handout

John O’Connor publishes article in RIA

Cherry Tree Wealth Management Investment Advisor, John O’Connor, wrote an article about CTW’s investment strategy and how they build client portfolios in the October 15th edition of RIA, Citywire’s magazine for registered investment advisors. The article was republished online November 8th. >full article

Cherry Tree Wealth Management recognized as 2018 Five Star Wealth Managers

We are pleased to announce that our Investment Advisors, Keith Tufte, Kathleen Tranovich and John O’Connor of Cherry Tree Wealth Management formerly Adam Smith Advisors were named Twin Cities 2016, 2017 and 2018 “FIVE STAR” Wealth Managers by Twin Cities Business Magazine and Mpls.St.Paul Magazine.

Wealth advisors were evaluated on customer service, knowledge/expertise, communication, experience, client retention, a clean regulatory record, and overall client satisfaction. >>more

Cherry Tree Wealth Management named among the top wealth managers in theTwin Cities

At Cherry Tree Wealth Management (formerly Adam Smith Advisors), we are very proud of our entire team. We are pleased to announce that ASA Advisors, Kathleen Tranovich, John O’Connor and Keith Tufte were recently named among the top wealth managers in the Twin Cities. Please see the attachment for more details. We take pride in working closely as a team with our clients so that we know their specific needs and advise them in reaching their financial goals. >>more