RAYMOND JAMES PRESENTS - Spring 2022 A publication of thoughtful insight dedicated to the life well planned.
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RAYMOND JAMES PRESENTS Spring 2022 A publication of thoughtful insight dedicated to the life well planned.
As we welcome the warmer days of spring, we wanted to gift you the newest edition of Raymond James’ long-running WorthWhile magazine. We like to reserve this publication for those who’ll appreciate its refined balance of lifestyle and financial content relevant to your life. In this issue, the Cover article explores ways to live out your dreams each and every day, even as you make progress toward your longer-term financial goals. The Family section reminds us of the all-important documents we all need to ensure our loved ones are well taken care of when the time comes. Explore the topics of alternative investments, avoiding tax-season scams and elegant gifts to inspire a sense of relaxation and enjoyment. We hope you enjoy the complimentary magazine and perhaps find something worthy of sharing with a friend. We look forward to hearing your thoughts on this new issue or anything else you’d like to discuss. Please feel free to reach out anytime.
WorthWhile
In this issue Investing
Spring 2022 Letter from the Editor 4
Economy: Inflation, labor and the Fed 5
Taxes: Keep an eye out
for tax-season scams 8
Income: Can you turn debt
into low-cost income? 26
Lifestyle
Worth a Look: A magnificent mouse and
p6 an outstanding stand-up paddleboard 6
Philanthropy: Unusual alumni donations 9
Living Well: Keeping
personal data private 10
Insight: Supply chain surprises 15
Trends: Brain games and
the housing market 25
Leisure
p28 Travel: Exploring Poland’s
spectacular salt mines 28
Art: From The Tom and Mary James/
Raymond James Financial Art Collection:
“Packing the Superstitions” by Bill Anton 30
The Good Life: Changing the subject 31
p30
2 WorthWhile // Spring 2022
Vol. 17, No. 4
Top stories
Family
A gift beyond measure
Putting your final documents in place well
before your loved ones ever need them
means your loved ones can carry on the
business of your afterlife. While it could
be intimidating at first, you may just be
surprised by the peace that comes with
putting things in order for those who will
settle your affairs. p12
Cover
Meaningful moments p12
A life well lived may mean eschewing
someday for today. Living fully – and
meaningfully – every day rather than
waiting for retirement to capture the
very essence of living. Here’s a way to
discover how you want to spend your
time, energy and money. p16
Investing
p16
Alternative universe
In an effort to diversify further afield
and find yield, you may have become
curious about alternative investments.
Some have a high barrier to entry,
for good reason, but others may be
something for you and your advisor
to consider depending on your needs.
Get to know a little more about p22
the alternative universe. p22
© 2022 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. © 2022 Raymond James Financial Services, Inc., member
FINRA/SIPC. Investment products are: not deposits, not FDIC/NCUA insured, not insured by any government agency, not bank guaranteed, subject
to risk and may lose value. | Links are provided for information purposes only. Raymond James is not affiliated with and does not endorse,
authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or
the collection or use of information regarding any website’s users and /or members. Unless noted, Raymond James is not affiliated with any of
the organizations or individuals mentioned. 21-WorthWhile-0234 3/22
WorthWhile // Spring 2022 3
Skyline
Letter from the editor
Finding joy
T
he past few years likely emphasized the true value of time, in ways big and small. The Cover article explores
how you can more thoughtfully spend your time, energy and money in ways that enhance your life in the
here and now as well as for years to come.
As we approach tax season, keep an eye out for unscrupulous criminals hoping to capitalize on your stress in the
form of cleverly disguised tax scams. The Taxes article on page 8 lends a bit of insight to help you fight fraud. And
Living Well complements that by providing practical steps to protect your private personal information as well.
Within these pages, you’ll also find a fascinating look at stunning paddleboards, supply chain surprises, the housing
market and the spectacular underground salt mines of Poland. Good Life is particularly interesting as it unveils ice
breakers to help us get out of conversational ruts that may have developed over the past few years, say since March
2020. We trust you’ll find something to pique your interest and perhaps share with someone you care about.
As always, we enjoy getting feedback from thoughtful readers like you. Cathy C., editor of High Tide St. Simons,
noted that the Insight article on lobsters in the summer edition felt unbalanced without information about global
warming, regulations, declining U.S. lobster catches, and the downstream effects of lobstering on endangered North
Atlantic right whales. While Insight generally leans toward lighter topics, it’s never our intention to ignore relevant
counterpoints, and we thank Cathy for pointing them out.
Jo W. sent a kind note about the winter edition, which she read cover to cover. “I love the way you address the care
of the whole person, such as ‘Serious shut-eye’ for ease in going to sleep, as well as altruistic practices in global
shopping and giving back in general.” The former NASA employee also enjoyed reading “An astronaut’s guide to remote
work” and learning more about The Tom and Mary James/Raymond James Financial Art Collection. Jo also repurposes
the magazine’s recyclable polybag to splatter-proof recipes while cooking. Spring seems like a great time to let you
know that we continue to research options to make the magazine even more sustainable in the future.
Lastly, we must apologize to Shawn Barberis, J.D., president of More than Money 360, for neglecting to credit him
within the winter Investing article on supporting a budding entrepreneur. He offered practical insight based on his
experience serving high-net-worth families. We apologize for the oversight.
As we welcome spring, we continue to wish you and yours health, happiness and prosperity. As always, thank you
for sharing your time and thoughts with us. We hope you find the experience, well, WorthWhile.
@ Email us
WorthWhile wants to know what you think – about articles we’ve done, suggestions for subjects you’d like to see
covered, or anything else on your mind. Please write us at worthwhile@raymondjames.com. Your email address
will not be shared with anyone. We may condense or excerpt from letters depending on the space we have available.
4 WorthWhile // Spring 2022
Economy
The evolving
inflation outlook
by Scott J. Brown, Ph.D.
Chief Economist, Raymond James Financial
I
nflation picked up noticeably While there has been some relief,
in the spring of 2021. However, supply chain issues have continued into
much of the increase reflected early 2022. A semi-conductor shortage
“base effects” (a rebound in prices has restrained motor vehicle produc-
that had been depressed during the tion. In turn, prices of new and used
pandemic lockdowns of a year earlier) vehicles have risen sharply.
and restart pressures (supply chain
bottlenecks as the economy reopened). How labor fits in
Price increases were concentrated in Labor market conditions are tight. Job
a narrow band of goods and services. vacancies remain sharply elevated framework. It would retain its 2% long-
By autumn, price increases had begun and firms note continued difficulties term goal for inflation (as measured by
to broaden across categories, a dis- in hiring new workers and retaining the PCE Price Index), but following a
turbing sign for Federal Reserve (Fed) current employees. For some indus- period of inflation below 2%, it would
policymakers. Rents, held down during tries, increased labor expenses will be allow inflation to move moderately
most of the pandemic, have picked up passed along in higher prices, but for above 2% for some time.
sharply in many areas. Tight labor the most part, wages are not driving In the revised framework, the Fed
markets have fueled labor cost pres- inflation in consumer prices. Yet, faster made its employment goal broader and
sures, threatening to reinforce higher wage growth can reinforce higher price more inclusive. Low-income workers
inflation in a wage-price spiral. The inflation, as we saw during the Great and communities of color typically fare
Fed may now have to raise rates more Inflation of the 1970s and early 1980s. the worst in a recession and recover
aggressively to keep inflation in check. Labor costs are rising, but not as fast more slowly in an expansion. However,
Higher inflation has been pinned as inflation. A typical worker is likely to the belief is that the Fed could best
largely on supply chain difficulties. The see a drop in real (inflation-adjusted) achieve its employment goal over the
pandemic has affected the production wages, which will dampen consumer long run by keeping inflation low.
and distribution of goods worldwide. spending growth to some extent. Inflation should decline in 2022,
However, stronger demand has added The Fed has two legislated goals: but it’s unclear to what level. The
significantly to these strains. Goods stable prices and maximum sustain- TIPS spread (the difference between
are flowing. The number of inbound able employment. In past decades, the Treasury Inflation-Protected Securities
containers through Southern California central bank would raise short-term and regular fixed-rate Treasuries) indi-
ports was 13% higher in 4Q21 than it interest rates to head off inflation cates that the market believes that
was in 4Q19. Part of consumer spending before it picked up. Otherwise, it would while inflation may be elevated in the
has shifted from services to goods, and have to raise rates even more to get near term, the Fed will ultimately be
this change has been longer-lasting inflation back under control. In 2020, successful in getting inflation back to
than expected. the Fed revised its monetary policy the 2% long-term goal.
There is no assurance any of the trends mentioned above will continue in the future.
Raymond James Chief Economist Scott J. Brown, Ph.D., serves on the economic advisory committees of the American Bankers Association and
the Bond Market Association. // In addition to providing insight to Raymond James advisors and their clients, he is a frequent commentator
on CNBC and other media outlets.
WorthWhile // Spring 2022 5
Worth a Look
A compendium of fresh looks and new ideas
A perfect balance
In Brian Hubel’s woodwork, take note of Japanese
influences in its artistic joinery and parabolic
curves and their tangents. His Bogen bench,
German for arc, brings simplicity and intrigue
to any space. If the seat seems too tentative
for the task, one only needs to find strength
in its balance. Discover the shape of things at
brianhubel.com. Photo: Don Jones Photography
The greater outdoors
Amid the refined evolution
of mankind’s primal need to
dinner party, the artistically
designed Pavona Collection
from RH Outdoor turns any
back porch into a lanai – a
space where adult friendship
and linen pants feel at home.
Rediscover the outdoors at
rhoutdoor.rh.com.
Photo
cour te
s y : RH
6 WorthWhile // Spring 2022
The water is calling
Inspired by West Coast surf culture, The Malibu
by Beau Lake is a stand-up paddleboard in
rosewood that fades into a dramatic sunburst
reminiscent of mid-century Gibson guitars.
Rather than return us to the past, The Malibu
is a refreshing reminder of the natural beauty
still present in the here and now. Float over to
beaulake.com.
A mouse like a fine wine
Like great-grandmother’s crochet hooks,
pop pop’s box-end wrenches and dad’s
drafting table, your Pointer Instrument
from Lunar Artefacts is a computer mouse
created to persist. Its cover is stitched
leather, its base is cast in brass and its
internal components are top of the line but
attainable. This is a mouse meant to gain a
patina. Point forward at lunarartefacts.com.
Arts and Crafts in ceramic
From its start among the Ann Arbor
Farmers Market stalls 30 years ago, Motawi
Tileworks has since grown to elevate the
craft of tile making and the structures
it adorns – such as the Yale University
Bass Library. Motawi also creates tiles
purely for artistic expression, including
this triptych inspired by modernist wild-
life artist Charley Harper. Never tire of
tile at motawi.com.
WorthWhile // Spring 2022 7
Taxes
Filer beware!
3
TIP Beware of ghosts
irs.gov is the official website for “Ghost” tax preparers have an
Five tips to fight fraud come tax time the IRS. If you get a communication easily identifiable hallmark –
from irs.com, irs.net, irs.org or any they don’t sign the tax return they have
Tax season is rife with opportunists other website, you’ll know immedi- prepared. They might also require you
ately it is not a legitimate request. to pay them in cash, invent fake income
who use a multitude of nefarious tac-
tics to get you to part with your money. or deductions, or try to direct refunds
Increasingly sophisticated, even the into their own account – not yours.
from your accountant or tax preparer,
4
savviest tax filer might have trouble any additional taxes on qualified plans
Look out for fake charities
discerning a real IRS request from a or other tax-favored accounts, shared
Fraudsters posing as charities
fake one. Here are five ways to protect responsibility payments, and trust fund
are a classic scam at tax season.
yourself this tax season. recovery penalties. You’ll be required
They may ask you for identifying infor-
to go through an extensive process
Get your IRS online mation and push the fact that you can
account set up to verify your identity and create an
reduce your tax burden by donating.
The No. 1 thing you can do to Identity Protection PIN through the
However, any legitimate charity oper-
protect yourself is to sign up for an IRS secure site – an additional layer
ating in the U.S. must have an Employer
online IRS account. Your account of protection for you against tax fraud
Identification Number it will happily
will give you the clearest picture of and identity theft.
provide to you. If you don’t get one,
2
balances owed, payment plans, tax don’t donate.
Don’t answer
records, past tax years, authorizations
The IRS will never initiate con-
tact with you through phone
TIP
calls, texts, social media, direct mes- All tax preparers are required
by federal law to have a pre-
sages or emails. It always contacts
parer identification number they
you by letter first if you owe money.
include with their signature on
The only exceptions may be if you are
the tax return.
undergoing a criminal investigation
or if you haven’t filed at all. The IRS
5
does not demand immediate payment Be on guard
or leave you prerecorded or threat- Fraudsters escalate activity
ening voicemail messages either. If you around tax time, especially
receive any kind of call like this, do to seniors and non-native English
not give out any information. Instead speakers. Anything at all that seems
hang up and immediately report it to strange or confusing and is asking for
the Federal Trade Commission. your personal identity information is
a red flag. Don’t be afraid to ask ques-
TIP tions. Your advisor and tax pro may
Since criminals can now “spoof” track the latest scams and have insight
IRS phone numbers, don’t let to share. Remember, it’s not personal –
the fact that it appears to be a
it’s just that tax scam time of year.
legitimate IRS number sway you.
If they demand payment or ask for Sources: forbes.com; IRS; cnbc.com; nerd-
wallet.com; reportfraud.ftc.gov
identifying information, hang up.
8 WorthWhile // Spring 2022Philanthropy
Out-of-the-box alumni donations
From a $6.5 million cruise ship to a historic art collection, these
alumni donations break the mold
M
any alumni proudly boast their alma maters’ names and logos on sweatshirts, bumper stickers and even tattoos.
However, universities rely on donations for everything from research and scholarships to new buildings, and many
graduates are happy to give back. In fact, a quarter of alumni supported their alma maters in 2020, according
to a study by the education technology company Anthology. Higher education giving totaled almost $50 billion in 2020 and
2019, and Michael Bloomberg made headlines in 2018 when he donated $1.8 billion to Johns Hopkins, his alma mater.
But while sustaining checks and endowments are tried-and-true ways to support a university, some gifts may land further
afield. Here are a few.
State-of-the-art support Three schools in the same boat Home is where the heart is
The University of Sydney received American inventor Luther H. Blount Living through the Great Depression
one of its biggest bequests from an built more than 300 boats, including made Grace Groner, a secretary for 43
alumnus in 1961. John Power, a former ferries, dinner boats and commercial years, an expert saver. Her frugal habits
doctor hailed as Australia’s most prom- trawlers. So it was only fitting that he added up – she bought secondhand
inent cubist, gifted a large collection of express his gratitude to Rhode Island clothing, walked everywhere instead
his own work – oil paintings, collages, College, the Wentworth Institute of buying a car and lived in a one-bed-
chalk drawings and even double-sided of Technology and Roger Williams room home. However, the source of her
glass works – to the university in his University – all of which had presented wealth came from a $180 stock pur-
will. He also left the institution shares him with honorary doctorates – by chase she made in 1935 and continued
valued today at around $15 million. collectively gifting them The Niagara reinvesting. When she passed away in
John’s donation, now worth a mighty Prince in 2006. The $6.5 million, 175- 2010 at age 100, her alma mater, Illinois’
$34 million, helped advance contem- foot cruise ship formed part of Luther’s Lake Forest College, received a $7 mil-
porary art across his homeland and, cruise lines. The plan was for the three lion gift along with – perhaps even more
eventually, seeded the establishment New England schools to sell the ship interestingly – her home, which now
of the Museum of Contemporary Art on and split the proceeds. houses scholarship winners who have
Sydney’s Circular Quay. benefited from Grace’s donation.
Notable mentions
A large gold nugget believed to have sparked Australia’s gold rush and a
mummified baby crocodile from ancient Egypt are two of many peculiar A quarter of alumni
donations gifted to the University of Sydney.
The Penn State College of Agricultural Sciences has also received several
supported their alma
exceptional gifts, including insect collections, rare wood specimens and maters in 2020
over a dozen stallions.
Sources: triplem.com; comettv.com; ucalgary.ca; blountsmallshipadventures.com;
bizjournals.com; dailyreview.com; sydney.edu.au; mentalfloss.com; philanthropy.com;
insidehighered.com; nbcnews.com; psu.edu WorthWhile // Spring 2022 9Living Well
Privacy
please
A PRACTICAL GUIDE TO OPTING OUT OF THE SITES THAT SELL YOUR PERSONAL INFORMATION
T
he information available online about what these companies are able tions. Data brokers also advertise
about you and your loved ones to collect on the average citizen. data on millions of Americans’ mental
might shock you. Search your Things like location status can help health conditions. Criminals already
name on spokeo.com and you’ll likely them access even the most sensitive scam senior citizens using data broker
find a dossier that includes your cell of data, such as inferring a person has data. They could similarly buy data on
phone number, address history and the a mental health issue by recent visits seniors with Alzheimer’s and dementia
names of your family members – all a to a treatment center. to steal away their life savings.”
criminal needs to attempt to steal your “Data brokers can track and sell your
credit or pull off an imposter scam, race, religion, gender, sexual orienta- Scrub your info, stat
such as pretending to be a relative in tion, income level, how you vote, what While we wait for stronger consumer
need of emergency cash. you buy, what you search online and protections to become law, there
The story of how all of these details where your kids and grandkids go to are practical steps you can take to
about you get packaged and aired on school,” Justin Sherman, a research cut down the amount of information
the internet is a complex one, involving fellow at Duke University’s Sanford hackers can find on the web and use to
public records, the lengthy terms of School of Public Policy, testified before harass you and your family or steal con-
service you signed for apps or services, the committee. fidential info. In many cases, you can
and the largely unregulated realm of In his research, he has found bro- contact a specific data broker online
data brokers. kers that are “widely advertising data to request removal. However, there
This multibillion-dollar industry has on hundreds of millions of Americans, are dozens of data brokers, so it can
been in the news lately. For example, their sensitive demographic informa- be a time-consuming hassle to make
in December an investigation by The tion, political preferences and beliefs each request (some of which need to be
Markup revealed that the popular and whereabouts in real-time loca- sent via snail mail or fax) and receive
family safety app Life360 has been verification from each one. That’s why
selling precise location data of 33 mil- there are now a handful of compa-
lion users to dozens of brokers without The information nies offering data-brokerage removal
privacy precautions. as a paid service, with costs varying
available online about
At a hearing in December, members widely. One example is DeleteMe, which
of the Senate Finance Committee you and your loved charges $175 a year to cover the basics
sought guidance from privacy experts ones might shock you for two people.
10 WorthWhile // Spring 2022If you’re interested in the DIY route, Handle a breach like a pro
Yael Grauer of Consumer Reports has If you’ve been notified of a breach of
created a comprehensive guide. Search your sensitive information – especially Buh-bye, brokers
“how to delete your information from Social Security numbers, passwords,
people-search sites” on Google to find passport numbers, credit card security Contact these websites
it. See the list nearby for a few of the codes and financial account numbers to remove your data.
biggest sites to help you get started. – it’s time to take action. Change your
▼
Former FBI cybercrime investigator passwords on affected accounts, then
Michael Bazzell has written a book, notify financial institutions and follow instantcheckmate.com
“Extreme Privacy,” that privacy experts their instructions. You can also reach infotracer.com
also recommend. out to credit-reporting bureaus and have
familytreenow.com
them put a fraud alert on your name.
Home is where If you or someone you love has been pipl.com
the data is the victim of an internet crime, reach
peekyou.com
out to the FBI Internet Crime Complaint
If you’re a tech fan with a tricked-
Center (IC3.gov) to file a complaint. You mylife.com
out smart home, consider how
can also sign up for consumer alerts. fastpeoplesearch.com
connected fridges and speakers
might be collecting your data. In
The right to shield yourself beenverified.com
a nation with few laws to prevent
the sale of this information to If you’re kicking yourself right now for acxiom.com
third parties, your device set- accepting those terms of service and
allowing your data to be collected, give whitepages.com
tings could come back to haunt
you. Here, we offer a few tips yourself some grace. Even if you con- spokeo.com
regarding Amazon’s popular sented, you have a legal right to protect
voice assistant, Alexa.
intelius.com
your information. As more states enact
consumer privacy laws and more mem- truepeoplesearch.com
Turn off Alexa recordings
bers of Congress call for action, there is
In the app, go to Settings >
hope for stronger consumer safeguards
Alexa Privacy > Manage Your
on the horizon.
Alexa Data > Choose How Long
to Save Voice Recordings, then
choose Don’t Save Recordings.
As more states enact
Or enable “Alexa,
delete what I just said” consumer privacy
Amazon claims that if you turn off laws ... there is
Alexa recordings, the device won’t
work as well. It recently released
hope for stronger
a feature that allows you to erase consumer safeguards
the data connected to your most on the horizon
recent request. To turn this fea-
ture on via your Alexa app, go to
Settings > Alexa Privacy > Review
Voice History, and toggle Enable
Deletion by Voice.
Sources: Roll Call; Norton; Business Insider; CNBC; Consumer Reports WorthWhile // Spring 2022 11Family
Provide the answers
Make your important files findable for your loved ones after ... you know.
F
or some families, it’s a gift Your final documents can include may have shifted Americans’ attitudes
beyond measure. A grace recipes, wishes, your eulogy and toward codifying our wishes in a very
that enables them to face the obituary, but for practical purposes it practical sense. A survey conducted by
unthinkable with all the pragmatic really should include the financial and The Harris Poll found that the COVID-19
things in place. Shoshana Berger, organizational road maps for those who pandemic prompted another third of
author of “A Beginner’s Guide to the are responsible to settle your affairs. Americans, who hadn’t made progress,
End: Practical Advice for Living Life Depending on the source, about half to start important conversations about
and Facing Death,” shared the story of of Americans know they should have a end-of-life plans and preferences.
siblings discovering their mother’s file will but don’t. And a National Library Although the study revealed only 19%
with everything they’d need to carry on of Medicine study found that in 2017 of adults over 50 have the three most
the business of her afterlife. Account only a third of us had completed end- essential documents in place (a will,
numbers. Pending transactions and of-life forms that outline our wishes for a healthcare directive/living will and
other details of her affairs. Berger calls comfort and care during that final tran- a designated power of attorney), at
it the “when I die” file. sition. Not surprising, maybe, since the least we collectively have a stronger
“This was not a Buddhist master’s process can be confusing and perhaps desire to get our medical and financial
awareness of death,” the son said. distressing when considering our own affairs in order.
“It was a Jewish mother’s love for her mortality. What may be surprising is the
children.” fact that the unpredictable pandemic
12 WorthWhile // Spring 2022HIPAA permission Dr. VJ Periyakoil, associate professor Financial power of attorney. Durable
of medicine at Stanford and director of powers of attorney give someone
allows an information the Stanford Palliative Care Education permission to make decisions on your
exchange only, not & Training Program, told Vox that it’s behalf – anything from communicating
permission for someone also really important for medical teams with your cable company to dealing
to understand a patient’s values. To with banking, real estate, business and
to make decisions
preserve patients’ voices, Periyakoil legal matters.
for you. Every adult and her team have created the Letter POLST forms outline physician orders
should have one. Even Project, with free and simple forms to for life-sustaining treatment for those
parents aren’t privy to help you clearly communicate your with serious conditions, indicating
wishes to loved ones as well as health-
medical information care specialists. The letters come in
things like whether you’d like CPR,
mechanical ventilation, feeding tubes
once a child turns 18. eight languages and offer structured or ICU treatment. Here’s where you’d ask
guidance to think through timely and, your doctor to record a do not resus-
sometimes, emotionally charged issues.
citate (DNR) order. Because the POLST
is signed by a doctor, it tends to carry
THE WHY more weight than an advance directive.
THE WHAT Medical power of attorney. Sometimes
So, it seems, despite living through
called a living will or advance directive,
a once-in-a-century pandemic, our In addition to any letters you may write this outlines medical treatments you
interest in actually completing the task as part of the Letter Project or your want and those you don’t and autho-
still wavers. However, top of the list of own process with your financial team, rizes a proxy to make decisions for you.
benefits is peace of mind – saving cost, you’ll also want to put some stronger Make sure this person has the necessary
time and heartache. Doing the work to safeguards in place. Ask your medical HIPAA authorization that allows your
have everything in place means medical and financial professionals if you need medical team to share information.
professionals will be guided by your any or all of these documents. Don’t be The financial version, called a con-
voice, your loved ones won’t have to bear intimidated. You don’t have to codify tact authorization or trusted contact
the burden of guessing what you would everything at once, and many are fairly form, authorizes a third party, say a
want, and you’ll know that your heirs straightforward. The more emotional financial advisor or attorney, to com-
will receive the accounts and assets that tasks like writing letters of love or an municate with a designated person
you intended for them. It may not make ethical will, which outlines your values, regarding health status, including
it easier to say goodbye but should make may actually be the hardest. mental capacity.
the aftermath a lot easier.
Another beautiful potential benefit, A last will and testament.
TIP
perhaps even the most important one? Beneficiary forms. For insurance poli-
Consider adding a list of accounts
Quelling the potential for intra-family cies, retirement accounts and some
and their relevant usernames and
strife during an already stressful time. other assets, the beneficiary form
passwords (particularly for your
Proper planning could help protect sibling prevails over the will. So whoever is
computer and cell phone) to cover
and family relationships, which can get named will receive those assets unless
your digital estate. Your advisor
ugly when it comes to medical and finan- the form has been updated. It’s not
can help you store them securely,
cial matters. Experts recommend making perhaps using specialized soft- uncommon for an ex-spouse to still
your wishes clear and communicating ware like Vault or a service like be listed as a beneficiary and that
them well before your passing, particu- Everplans. can get messy.
larly if you’re part of a blended family.
WorthWhile // Spring 2022 13A declaration of guardian appoints sion, of course. More than 20 states even
someone to look after your minor allow for online notarization with certain
Take pictures of
children. rules for witnesses. However, some elder relevant forms and
A trust. In many states, a living trust
care attorneys recommend revisiting the securely share them
can be used to transfer assets and per- documents in person once it’s safe to do
with your designee
so in your area.
sonal property in an orderly and more
If you need help getting started, first
private manner than a will and can even
get organized. Once gathered, store all relevant
stipulate special provisions such as
Discover what you already have. paperwork in one place. Some prefer
age-based distribution so young adults
don’t inherit all at once. It also can help For example, you may already have a binder in a safe deposit box, but
a healthcare proxy. From there, make another secure way may be an online
avoid a costly and stressful probate
court process and may offer substan- an appointment with an attorney who vault that allows you to grant dif-
tial tax benefits. specializes in estate or elder care law fering levels of access to those you
to review what you have and help you trust most. Just make sure your family
fill any gaps. Include your financial members and righthand professionals
advisor to ensure you’ve made a plan know where to find these important
THE WHERE AND HOW
for all relevant assets. documents and how to access them.
You may want to also make an Whatever you choose for storage, also
In some ways, a year-plus of time to
advanced care planning appointment include essentials like checkbooks,
reflect may have helped us better under-
with your doctor. Often this can be insurance policies, keys to the safe
stand our estate planning to-do list, our
done remotely (two 30-minute appoint- deposit box, identification, mortgages
wants and wishes, and may have moved
ments are covered by Medicare, as is and deeds, as well as property titles for
us to take the opportunity to put it all
advanced planning for a cognitively residences, vehicles and boats.
down on paper, so to speak. Nowadays,
impaired patient). Other insurance may
many estate planning documents are
cover this service as well. Be sure to
stored digitally so relevant parties can
ask so you’ll know what your financial
better access them – with your permis- THE WHO
liability may be.
Last, but certainly not least, make time
Your toolkit
to share your decisions with those
In addition to your financial advisor, who’ll likely have experience in this they’ll affect. Talk to your loved ones
arena, you can find some thoughtful resources online. about your healthcare and financial
plans and preferences, where impor-
AARP offers free, printable healthcare proxies by state (aarp.org/caregiving/
tant documents live and how to access
financial-legal/free-printable-advance-directives).
them. Your advisor can help you set up
POLST.org offers forms for about half the states. Your doctor may also have regular family meetings to address who
the relevant document available. inherits what and why, as well as other
details. Of course, the most important
Compassion and Choices (compassionandchoices.org) offers an Advanced
thing is to take the time to tell your
Planning Guide and Toolkit.
family just how much you love them.
Stanford Letter Project (med.stanford.edu/letter.html) gives you formal
Raymond James is not affiliated with any
guidance and letter templates, available in several languages, to help you organizations mentioned. Raymond James
tell your loved ones, friends and physicians about who and what matters does not provide legal services. Please dis-
cuss these matters with the appropriate
most to you. professional.
Sources: vox.com; theatlantic.com; compassionandchoices.org; Centers for Disease Control and
14 WorthWhile // Spring 2022 Prevention; Health Affairs; nytimes.com; time.comInsight
Supply Beige gold
chain
A new nickname for cardboard amid
paın
surging demand and prices, due
largely to flourishing e-commerce
sales. Cardboard maker DS Smith,
whose largest customer is Amazon,
reported an 80% jump in first-half
In the wake of bottlenecks, profit in December 2021.
strange side effects linger
Americans rarely thought about the
-80,000
The record-high trucker shortfall,
global supply chain before 2020. Now
according to a November report. By
it’s an ever-present pain point, with
some estimates, a wave of retirements
memes showing ships lined up at
could double that by 2030.
port (or stuck in the Suez Canal) as
retailers try “pop-up” cargo yards
and drones to get things moving. A Uncomfortable cows
shortage of one key thing – say, com- Seemingly unrelated products impact each
puter chips – leads to widespread other. Take lumber and milk. Floods and
shortages of new vehicles, appliances labor shortages have cut lumber production,
and electronics. leading to less sawdust, which farmers use
The classic “just in time” business to make cow beds. Tired cows produce less
model that emphasizes lean inven- milk. Cue the USDA predicting lower dairy
tory and workforce often gets the supply and rising prices in 2022.
blame. The reality is that a perfect
storm of factors, from factory shut-
downs to a dwindling number of truck Fewer fancy feasts
drivers, has created chaos that con- Pet food shortages appeared in early
tinues to echo. Here, we examine the 2021 and will likely stretch through
butterfly effect of tangled logistics. early 2022. Demand has clawed its way
up as millions of new pets have joined
U.S. households. An aluminum can
342
shortage isn’t helping.
10X
Costly containers
The number of times “supply chain” The demand for the big metal boxes used in shipping
was uttered during S&P 500 firms’ is wreaking havoc. In November, the cost to ship a
earnings calls in the fall – a 10-year 40-foot container from Asia to the U.S. hit $15,000,
peak, according to FactSet. compared with $1,500 before the pandemic.
The Port of Los Angeles switched to around-the-clock operations in the last three months of
2021 to clear the cargo backlog. This port and nearby Port of Long Beach handle roughly 40% of
24 shipping headed into the country.
Sources: NielsenIQ; Chartered Institute of Procurement & Supply; Bloomberg; Reuters; FactSet; American Pet Products Association; The Wall Street
Journal; CNBC; American Trucking Associations; Business Insider; Lloyd’s List; U.S. Department of AgricultureCover
FILL YOUR LIFE WITH EXPERIENCES TO SAVOR
here are some things money can’t to a certain point. Researchers con-
Time is the coin of buy. Faith, resiliency, inner peace, cluded that happiness eventually
quality time with loved ones and plateaus despite rising income, sug-
your life. … Only contentment are all purchased with a gesting that higher incomes also come
you can determine different, limited, currency: time. It’s with higher demands on time, heavier
how it will be spent. precisely these things that our spirits workloads and greater responsibili-
Be careful lest you cannot afford to live without – family, ties, which contribute to a sense of
friends, travel, rest, peace, health and dissatisfaction. Your family’s particular
let other people joy are essential to a life well lived threshold may differ, but the point is
spend it for you. and, while they can be enhanced with that having “enough,” whatever that
Carl Sandburg, material wealth, the last couple of amount is, means you can enjoy life
Pulitzer Prize-winning author years likely have reinforced the out- fully, caring for your emotional and
sized value of temporal currency. Even physical well-being as well as that of
when we are fortunate enough to afford those you love most.
the finer things in life, we quickly learn It’s a matter of thoughtful planning
there may be other measures of true to allow hard-earned wealth to open
prosperity that go along with it. opportunities for ourselves, our family
While money can’t buy happiness, and our philanthropic endeavors, after
per se, it can allow us experiences that all the essentials are taken care of.
lead to greater contentment. A Gallup In fact, experiences tend to elicit
study found that most Americans gratitude more than, say, purchasing
believe making between $150,000 and something just to keep up with the
$300,000 would make them rich enough Joneses. Experiences, instead, foster an
to cover most of their wants and needs. appreciation of what you do have and
And research from Purdue University the people you get to share it all with.
and the University of Virginia based If financial concerns have been
on a global Gallup World Poll shows alleviated, you have room to make
that money can help support emotional meaningful memories, with no lingering
well-being, a happiness of sorts, up regret about the money spent.
So how do we plan for this kind of
success: time well spent? How do we
Experiences foster an invest early and reap regular divi-
appreciation of what dends? The answer may be surprisingly
you have and the similar to financial investing: set short-
and long-term goals, allocate assets
people you get to share wisely, diversify your portfolio, take
it all with advantage of compounding, and adjust
as life changes.
WorthWhile // Spring 2022 17Start with your goals help you focus on how you truly want while you work; and live, laugh, love
Financial planning is intrinsically linked to spend your time, energy and, yes, signs adorn many kitchen walls, tritely
to leading a fulfilling and intentional money. And encourage you to do so encouraging a life of fulfillment and
life. The Physician Philosopher uses today, while you can. contentment. If you’re an explorer at
three Kinder questions, created by heart, yours may be a “get lost” list.
QUESTION 3
George Kinder, a Certified Financial Others may simply call it a wish list
Planner professional and the creator
TM
Today’s for life. Really, it’s a not-too-late list.
of the Kinder Institute, to help get to
the day One we should be adding to even as
we check things off.
the idea of what we want to do once
This time, your doctor shocks you
our financial needs are taken care of.
with the news that you have only one
Feeling financially secure means we Diversify
day left to live. Notice what feelings
can plan for the life we want to live. In The before-I-die goals may seem too
arise as you confront mortality. Ask
the here and now. lofty or fall to the wayside as life hap-
yourself: What dreams will be left
To get to the heart of the matter, turn pens, which it will. Bodies age. Careful
unfulfilled? What do I wish I had done?
inward. Consider your answers to these plans go awry. And moods change.
Did I miss anything?
three Kinder questions, and ask those The point of this exercise is to imbue
you love to chime in too. Your answers will help you create the a sense of adventure into every day
opposite of a traditional bucket list and suck the very marrow from life
QUESTION 1 that focuses on activities meant to be (with apologies to Thoreau). Lest your
What matters achieved at some nebulous point in the list become unwieldy, you can break it
most future but before we shuffle off this
mortal coil. Instead, consider creating
down into categories that make sense
for you in your personal, professional
Imagine you are financially secure, that
a new kind of list that gives you a deli- and philanthropic lives.
you have enough money to take care
cious sense of hope and adventure, Before you move some of your
of your needs now and in the future.
replete with activities that season your attainable dreams and desires to the
How would you live your life? What
life now, dreams you can achieve and top of your to-do list, the front burner
would you do with the money? Would
check off throughout the next year if you will, think about what you want
you change anything? Don’t hold back
or decade, as you live your life fully to achieve in all aspects of your life
when you answer. Describe a life that
instead of putting the things you desire – health, family, career, community
is completely, richly yours.
most on the backburner. – to maximize the returns on a life
QUESTION 2 This is a list of challenges you hope well spent. Start with some mindful
to overcome, diems you wish to seize, contemplation, asking yourself, “What
The clock experiences that will make epic sto- is my next professional goal? Who
speeds up ries at the next dinner party. There are the people I most value spending
Your doctor gives you just five to 10 may not yet be a popular name for time with? When and where do I feel
years to live. You won’t ever feel sick, it – one advisor refers to it as her the most fulfilled? What new health
but you’ll also have no notice of the Live it List ; another calls it retiring
TM
habit would best increase my quality
moment of death. What would you do of my life?”
in the time you have left? Would you Not sure which area you want to focus
change your life and how? The good If you could wave on first? Try this “living your legacy”
life shouldn’t be reserved for someday. quiz at raymondjames.com/living-your-
a magic wand and
Take note: This isn’t an argument legacy to help you pinpoint areas of
for hedonism and mindless spending. master one skill, desired growth. Still need a little clarity?
This introspective exercise is meant to what would it be? Professional life coaching sites like
18 WorthWhile // Spring 2022amava.com offer myriad courses and Your greatest hits
individual coaching sessions to help you
clarify what is of greatest importance Taking inventory of every day for a week had an easier
for your short-term time investing goals. the unique things time accessing positive memories,
you’ve already enhancing overall well-being.
And sites like learningtogive.org can
experienced can be The first few items on your reverse
also help you narrow in on philanthropic
just as validating as a list of things bucket list might readily come to
endeavors you hope to pursue, pro-
you still want to do. Some call mind, but if you need a reminder,
viding a wide array of educational and
this a reverse bucket list, but it’s take a nostalgic scroll through your
professional planning support to help really an exercise in mindfulness social media feeds for examples
you and your advisor create a scholar- and gratitude, capturing a sense of uniquely your own. Some may be
ship, fund innovative research or open contentment as well as a bounty of as simple as making a new friend or
that community center. stories to share around the dinner as large as buying the perfect vaca-
Meditating on each aspect of your table. Research shows that revisiting tion home. And some may have been
life helps you compound the interest positive or meaningful experiences hard in the moment but served as
earned, developing a more compre- counteracts emotions like loneli- inspiration in hindsight, like leaving
hensive sense of accomplishment ness, boredom and anxiety. a toxic relationship. The point isn’t
A 2015 study published in The to brag, but to remind yourself just
over time. For more introspective
Journal of Positive Psychology how far you’ve really come.
inquiries, head to inc.com and read
found that those who detailed three
“31 Questions to Ask Yourself Before Source: theperennialgen.com
good things from the past 48 hours
Setting Next Year’s Goals” by Robin
Camarote, founder of Work Life Lab.
She challenges readers to dive deeply
into questions like, “What three things “In the end, it’s not the cial advisor, who can help take on
am I curious to know more about? If I the practical step of actually allo-
could wave a magic wand and master
years in your life that cating resources toward your desired
one skill, what would it be? Why? Who count. It’s the life in endeavors without overspending. After
is one person I could help right now? your years.” all, these things bring so much more joy
How? What would it ‘cost’ me? What than paying bills, but the latter is abso-
– Anonymous
would I gain?” lutely necessary. As is having enough of
Once you have decided on goals big a financial cushion to feel confident and
and small, be sure to write them down. positive psychology and happiness secure should unexpected expenses
Instead of broad strokes, color in the coach, studied the importance of occur, and they almost certainly will.
details. So “visit Fiji” might become staying focused on your objectives. How you go about creating buckets
“escape to an all-inclusive resort for Over time, vanSonnenberg found that for different goals is up to you, your
two weeks with Sylvia, snorkeling the keeping a detailed record of goals and partner and your financial profes-
reefs around Beqa Island.” Taking the planning accordingly led to more pro- sionals, but the gist of it is that you
time to set more detailed and track- ductivity and higher self-contentment must cover your needs and obliga-
able goals statistically leads to greater than what was experienced by others tions (taxes, anyone?), establish a
performance. According to Positive who did not track progress. solid rainy-day fund, and allocate
Psychology, goal setting is a measur- enough to secure the larger pillars of
able and efficacious science to success. Allocate assets wisely your financial life, like a well-funded
Like with your financial goals, active What you hope to achieve shouldn’t retirement. The rest can go toward
participation is elemental to progress. be kept a secret; share these ideas living a life punctuated by meaningful
Emily vanSonnenberg, a researcher in with your loved ones and your finan- experiences – your advisor might call
Raymond James is not affiliated with the
mentioned individuals or organizations. WorthWhile // Spring 2022 19this discretionary income. You still Ben Franklin cautioned readers Reinvest your gains
want to live below your means, other- not to idly waste time, reducing their Anytime you check something off your
wise you’ll have so-called “bad” debt earning potential. After all, time is “list for successful living,” replace it
darkening the corners of what could money. We’re certainly not contra- with something else. In this way, you
have been your best life and you may dicting the founding father. We’re are always reinvesting your gains.
end up falling short on your retirement saying that with the help of good Namely, you always have something to
needs. (For more insight on how bor- planning and smart investing, both look forward to and an intentional navi-
rowing can help you strategically plot literally and figuratively, you may be gation point to direct the flow of your
progress toward your goals, please see able to spend your time and money time here on Earth. The true measure
Income on page 26). throughout your life in ways that are of wealth may just be time well spent.
truly fulfilling and valuable. Healthy, In the end, your priorities should
wealthy and wise, remember? Your align with your plan for life, reflecting
“The purpose of life, advisor can help you take a prac- what you truly care about, the habits
after all, is to live it, to tical approach to allocating assets in you value and the people you love.
appropriate investment vehicles to Generally, there’s a universal truth to
taste experience to the help you make progress toward your what we value as humans. Rarely do
utmost, to reach out short-, mid- and long-term goals and people toward the end of their lives
eagerly and without live a lifetime of purpose and passion. wish they had earned more or worked
fear for newer and longer. Fulfillment instead centers on
investing time with loved ones and in
richer experience.” experiences that lift the spirit as well as
– Eleanor Roosevelt gaining the quiet confidence that those
left behind will be taken care of.
A list worth keeping
As you start your list(s), keep these do’s and don’ts in mind.
▼
Do Don’t
Do include what truly motivates you to live Don’t forget the details. The overwhelming
your best life. Take your time crafting your list. sensation of a polar plunge or the sweet
Inspiration can come from anywhere. delight of gelato melting on your tongue. Allow
your wish list to indulge all your senses.
Do borrow freely from others. They may offer a
fresh idea that wasn’t even on your radar. Don’t focus on just one area of your life.
A life well lived is also well rounded.
Do leave room for the unexpected. If a
spontaneous opportunity crops up that Don’t settle on someday. Include activities that you
isn’t on the list, chase it if you can. can do today, this week, this month or this year.
Sources: positivepsychology.com; Raymond James research; opengrowth.com; inc.com; antiques.
20 WorthWhile // Spring 2022 lovetoknow.com; learningtogive.org; brainyquote.com; bucketlistpublications.com; gallup.comSleep under the
Northern Lights
Walk the Drink
Freedom Trail champagne
in Champagne
Dance the
waltz
Watch a
Climb a
mountain Making total solar
eclipse
memories
“They say a person needs just three things to
be truly happy in this world: someone to love,
something to do and something to hope for,”
according to Tom Bodett. If you need some
inspiration for things to do, consider these.
See the Foster retired
pyramids greyhounds
Travel to each
continent
Spend more
Make crème time with your
brûlée loved ones
Build a house
with Habitat Ride horses
for Humanity in the oceanInvesting
In the search for yield, interest in nontraditional
assets has grown
ith investment-grade yields However, changes are afoot. In underlying investments in each fund
currently lower than inflation the fall, the Securities and Exchange are the key to making that determi-
and interest rate increases on Commission’s Asset Management nation. Managers of these funds can
the horizon, people are looking for an Advisory Committee approved a recom- invest in illiquid assets, including pri-
option other than bonds. While they’re mendation to expand access to private vate companies, farmland, timberland
not for everyone and carry some trade- investments, noting in a report that and private debt, to scratch the sur-
offs, alternative investments are an select types yielded better returns face. As a tradeoff for accepting a lower
area of growing interest for those than those in the public markets over level of liquidity (redemptions may only
curious about venturing further afield. periods of three years or more and can be allowed periodically and in limited
It helps to have a trusted guide, like diversify holdings. quantities), investors anticipate, but
your advisor, by your side. may not receive, higher returns than
Most individual investors lack Underground to mainstream in the public markets – what’s called
access to private equity, private debt The 13 million accredited investor the “illiquidity premium.”
and other types of alternatives. For households in the U.S. have not shied Though they have advantages, alts
example, some types of alternative away from nontraditional assets of have some drawbacks. Many have
investments require million-dollar late, with “alt” investments flourishing high minimum investments and fee
initial investments and tie up money in 2021, according to data from Robert structures compared to traditional
for several years. The majority are A. Stanger & Co. Investors poured $80 mutual funds. They are also less liquid,
only open to “accredited” or “quali- billion into retail alternative invest- locking up capital for a predetermined
fied” investors – generally wealthy ments from January to November amount of time to allow managers to
individuals who meet income and net 2021, compared with $10.8 billion for take a long-term view in creating value.
worth requirements as defined by law, all of 2020. Much of that went to non- Finally, there are tax issues to consider.
meaning they have the resources to traded real estate investment trusts The taxation of alternative investment
stomach a potential loss. In general, and interval funds. gains varies significantly, so consulting
you can qualify as an accredited Because inter val funds are with a tax professional on the potential
investor by having a net worth that SEC-registered, some investing pro- tax consequences is a smart move.
exceeds $1 million, excluding your fessionals don’t regard them as If after reading this you’re more com-
primary residence. alternative investments. However, the fortable with a well-diversified portfolio
22 WorthWhile // Spring 2022of stocks and bonds, know that there is However, it’s important to read the 12%
2018
nothing wrong with that. A financial plan fine print. Fees, especially upfront
diversified through traditional invest- charges, can be high in comparison
ments is appropriate for many. But in with traditional investments. Liquidity
this market environment, it doesn’t is another consideration. Non-traded 18%
hurt to expand your knowledge about REITs have monthly liquidity compared 2025
the choices available, whether you’re to the continuous liquidity of a publicly
seeking higher yields or diversification. traded REIT, and will only redeem up 24%
to 5% of the fund’s value per quarter.
NON-TRADED REAL ESTATE While this may not be an issue when
INVESTMENT TRUSTS there is liquidity in the market, an
investor could have their redemption
Real estate is the original alternative prorated in severely stressed markets.
asset, with academic analysis showing
that it can serve as an inflation hedge. PRIVATE CREDIT FUNDS Alternative investments are
Non-traded real estate also tends to expected to grow to nearly a
have low correlation to equities and Private credit, also known as private quarter of investable assets
bonds, which helps diversification. debt or non-bank lending, is an asset
worldwide by 2025, according to
That explains some of the recent class made up of currently higher
popularity of non-traded real estate a recent Chartered Alternative
yielding, illiquid investment oppor-
investment trusts (REITs). These gener- tunities in various areas of the debt Investment Analyst Association
ally own income-generating real estate, structure of corporations or real member survey. In 2018, they
such as office buildings, warehouses, assets. This asset class has grown since made up 12%.
shopping centers, apartments or the Great Recession, when banks lost Source: The Next Decade of Alternative
hotels, making them a popular option their appetite for lending to small or Investments, Chartered Alternative Investment
Analyst Association
for those seeking income. Non-traded riskier borrowers. Private credit funds
REITs aren’t listed on a public exchange tend to offer a higher yield as they
and are valued based on the value of are investing in less liquid credits.
the underlying investments, and not The funds tend to offer monthly or
13.6
public market sentiment. quarterly redemptions, or in some
instances, no redemptions at all, which
allows them to stay fully invested and
potentially take advantage of market million
Typical characteristics of Number of accredited investor
dislocations when they arise.
alternative investments
Private credit funds can hold every- households in the U.S., roughly
• Low correlations with thing from senior to distressed debt, 10% of all U.S. households
traditional assets so risk and returns vary. Lenders
• Participation in less efficient
marketplaces
• Higher fees than traditional
investment products
$
80 billion
• Wider ranges of returns Inflows for retail alternative
among peers investments, January to
November 2021
WorthWhile // Spring 2022 23You can also read
