2021 Financial ReviewDecember 28, 2021
On this episode of The Big Plan on Campus, Thomas talks with Todd Henningsen and Becca Oelrich, fellow advisors at BerganKDV Wealth Management. Becca is a wealth advisor out of St. Cloud, MN and Todd is a wealth advisor out of Waterloo, IA. The three advisors reflect back on key financial planning events of 2021 and give some insight of what’s to come in 2022.
Todd begins the conversations by sharing an overview on stocks and the all-time highs for 2021. He also reviews the year it has been for bonds and how the 10-year treasury is used to measure what has happened and what will happen in the future. Thomas then asks Todd, if the yield is so low, wouldn’t that future take away from the demand? Todd discusses the different components to that, how it works, and how it affects your portfolio.
Thomas and Todd then transition to the topic of what they believe to be areas of opportunities from an investment standpoint. Todd speaks about companies of value and areas of growth to consider in your portfolio and how large US Growth companies have been winners over the last 5+ years. He also shares how valuations are more attractive in small/mid cap and emerging markets and recommends rebalancing to those who want to incorporate these opportunities in their financial plans.
The advisors shift to discuss the hot topic of inflation. Todd shares how inflation impacts investments and what clients can do to combat or adapt with it. Becca explains how she describes the connection between inflation and investments to her clients. They then talk about how the market is expecting inflation to decrease and run normal for the next few years.
After inflation, Becca dives into the impact roll bonds and fixed income have in a portfolio even if they haven’t been doing well recently. She emphasizes that financial strategies are specific to each client’s situation and how she determines a client’s risk based of that strategy to decide if bonds are appropriate for their portfolio.
With the new year ringing in a few days away, the three advisors wrap up their time together by talking about what financial planning considerations clients should be making into 2022. They discuss what recommendations they are offering to clients, including the new IRS contribution limits to IRAs.
Interested in learning more about financial planning in the field of education? Subscribe to Thomas’s podcast to be first in the know when a new episode launches, or schedule an introduction call with Thomas!