Fed Goes Dove; Investors Retreat

📆 Legal Day at McKnight Advisory Group! 📆

Mark your calendars for August 30th between 8am - 2pm! It's your opportunity to get all your burning questions answered about estate planning, living wills, and power of attorney.

Schedule your personalized 30-minute appointment with attorneys fromSmith-Wright Law, and get the clarity you need to make informed decisions about your future.

Contact Retha todayto secure your time slot and ensure you don't miss out on this invaluable opportunity!

2026: Are You Ready?

This prerecorded webinar focuses on the potential tax law changes following the expiration of the Tax Cuts and Jobs Act at the end of 2025, including increased tax brackets, altered standard deductions, and adjustments to the federal estate tax. Using examples of hypothetical couples, we illustrate how these changes might significantly impact taxes, with potential increases around 22%. We also suggest strategies like considering Roth IRAs, backdoor Roth conversions, and reviewing estate plans to proactively manage these changes. For more detailed insights,Click hereto watch the full video. VisitMcKnightAdvisory.com/eventsfor upcoming webinars and workshops. We're here to help you navigate these changes and plan effectively for your financial future.

Edwin McKnight

Don’t Panic: It’s Not 2022 All Over Again

While we recommended that investors underweight equities in 2022, conditions in 2024 are much different. Article by David Sekera, CFA

^{Click here to read full article from www.morningstar.com: Don’t Panic: It’s Not 2022 All Over Again}

Stocks fell broadly last week as investors looked past upbeat Fed comments and focused on disappointing corporate reports and weaker-than-expected economic data.

The Dow Jones Industrial Average lost 2.20 percent, while the Standard & Poor’s 500 Index fell 2.06 percent. The Nasdaq Composite Index dropped 3.35 percent. By contrast, the MSCI EAFE Index, which tracks developed overseas stock markets, gained 0.19 percent for the week through Thursday’s close.¹

Volatile Week of Trading

Stocks were under pressure early in the week as investors appeared to focus on the Fed’s meeting, which ended on Wednesday. It was a big week for Q2 corporate reports, with five of the ten largest names in the S&P 500 (by market capitalization) reporting numbers. But attention was mainly on the Fed’s meeting.^2,3

Stocks rallied on Wednesday when Fed Chair Powell indicated a September interest rate cut was “on the table."⁴

But selling picked up on Thursday as investors' attention quickly shifted to disappointing corporate reports and weak economic data. Friday morning's disappointing June jobs report raised even more concerns about the economy's strength. The Nasdaq ended the week in correction territory, down more than 10 percent from its recent all-time high.^5,6

“What you do makes a difference, and you have to decide what kind of difference you want to make.”

– Jane Goodall

An interesting and lesser-known fact about August is that it was named in honor of Augustus Caesar, the first Roman emperor. However, what many people don't know is that August originally had only 30 days. It was extended to 31 days so that it would not be shorter than July, which was named after Julius Caesar. This adjustment was made to ensure that the month named after Augustus Caesar was not seen as inferior to the month named after Julius Caesar.

Is it Time for a Paycheck Checkup?

There's no better time to check your withholding status and make sure your paycheck accurately reflects the taxes you should be paying. These paycheck checkups are a great practice when something happens in your life that may change your tax status, such as getting married or getting divorced, having a baby, getting a new job, or getting a raise or promotion at work. You can also adjust your withholding status if you want to change the tax withheld due to other circumstances.

Other factors can also be checked during your paycheck checkup, such as how much you contribute to your health insurance retirement plan. These expenses can also impact your tax liability.

*This information is not intended to be a substitute for specific, individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS.gov⁸

5-Minute Core-Strengthening Workout

Even if you only have a little time to dedicate to a core workout, this circuit will get you going and only takes 5 minutes. Here are the moves:

• 1-minute high plank: Your hands are on the ground, your arms are straight, and you are holding your body up with your arms and a tight core.
• 30-second side plank on each side: One hand is on the ground, your arm is straight, and the other is in the air. You can do a side plank with your feet stacked on each other (most challenging), your feet staggered (a little easier), or your bottom knee on the ground.
• 1-minute boat pose: Your feet are in the air, and your arms are by your side, reaching to your feet. You can pose with your legs bent (easier) or straight out (harder).
• 1-minute crunches: Lift your shoulders and upper back off the ground without pulling your neck.
• 1-minute dead bug: Lay on your back and alternate, extending out the opposite arm and the opposite leg simultaneously.

Tip adapted from Mind Body Green Movement⁹

Tropical Pineapple Coconut Bars

Ingredients:

• 1 1/2 cups graham cracker crumbs
• 1/2 cup shredded coconut
• 1/2 cup melted butter
• 1/4 cup granulated sugar
• 1 can (14 ounces) sweetened condensed milk
• 1 can (8 ounces) crushed pineapple, drained
• 1/4 cup lime juice
• 1 teaspoon lime zest

Instructions:

1. Preheat the oven to 350°F (175°C).
2. In a bowl, mix the graham cracker crumbs, shredded coconut, melted butter, and granulated sugar until well combined.
3. Press the mixture firmly into the bottom of a greased 9x13-inch baking dish to form the crust.
4. In another bowl, combine the sweetened condensed milk, crushed pineapple, lime juice, and lime zest.
5. Pour the mixture over the crust and spread evenly.
6. Bake for 20-25 minutes, or until the edges are golden brown.
7. Allow to cool completely before cutting into bars.
8. Refrigerate for at least 1 hour before serving.

A cat falls into a hole 14.5 feet deep. The cat can jump 3 feet high, but she slides back 1 foot with each jump. How many jumps does it take her to get out of the hole?

Last week’s riddle: I am usually only as wide as a thumb and typically travel across the nation for less than a dollar, all while lying flat. What am I?  Answer:A postage stamp.

Botan Canyon, Siirt Province, Turkey

Footnotes and Sources

^{1. The Wall Street Journal, August 2, 2024}

^{2. The Wall Street Journal, August 2, 2024}

^{3. S&P Global, July 31, 2024}

^{4. The Wall Street Journal, July 31, 2024}

^{5. The Wall Street Journal, August 1, 2024}

^{6. CNBC.com, August 2, 2024}

^{7. The Wall Street Journal, August 2, 2024}

^{8. IRS.gov, May 8. 2024}

^{9. Mind Body Green Movement, May 8, 2024}