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Summer getaway
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August 1, 2024   |   View in browser
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dsmWealth correspondent Steve Dinnen enjoyed fresh lobster, along with views of the Souris Lighthouse and Charlottetown harbor on Prince Edward Island. (Photos: Elise Huang and Getty)
Wanna squeeze some more fun out of summer, eh?
Try Maritime Canada.

BY STEVE DINNEN


You have several options for seafood dining in Des Moines. Splash, for instance, justly brags about its jet-fresh selection.

But if you want it plucked right off a dock, you can follow in our footsteps for a late summer vacation to Maritime Canada and feast upon no end of fruits de mer.

My friend Elise and I started our journey in Halifax, Nova Scotia, where we picked up a rental car and headed immediately to the next province over, New Brunswick. Our destination was Shediac, home to a huge lobstering fleet and the annual Shediac Lobster Festival. The streets were darned near paved with lobster, at least on the night of the community feast, and we availed ourselves of several of these crustaceans. A restaurant meal ran around $50 Canadian ($36 U.S.), while on our last day we stopped at a market and picked up a pair of 1.5-pound beauties for $15 each ($11 U.S.). We took them back to our motel and ate them on a picnic table.

From there we made a short drive over the bridge to Prince Edward Island. It is here, in dozens of bays filled with cool calm water, that many of the mussels consumed in the United States are grown. Where in Iowa, or anywhere in the Midwest, can you feel that freshness?

The capital of PEI is Charlottetown, where we lucked into student lodging that Holland College rents out to tourists in the summer. We also met up with Julie Chen, who showed us around her charming Sydney Boutique Inn and Suites that she’s fashioned from a 170-year-old convent. The walkable, touristy port near her hotel has no end of seafood eateries, plus charter services for fishing or lobstering boats.

At the north end of the island are several museums and monuments paying homage to Anne of Green Gables, the beloved young heroine of a book series Lucy Maud Montgomery set on the island. We missed the nearby Canadian Potato Museum, though nearly every meal we ate included a basket of fried potatoes, freshly plucked, like the lobsters, from local sources. They were universally delicious.

Lobsters: check. Mussels: check. Scallops: on to Digby. Here, the fishermen chase down scallops in the Bay of Fundy. Again, delicious, and some of the places served them up simply, on hot dog buns. We also added in some “haddie bits,” fried pieces of freshly caught haddock. The annual Digby Scallop Days roll around in early August.

On the eastern shore of Nova Scotia we ate more haddock, ocean-variety scallops, and oysters, oysters and more oysters. Back in Halifax, the port is lined with seafood restaurants, so we could, and did, sample pretty much everything we’d driven around to eat. Oddly, to me, most restaurants outside of Halifax close by 8 p.m., so don’t dawdle.

Good roads, friendly people and great food met us. Pleasant weather, too: Folks apologized one day when it almost reached 90. So go ahead, close your eyes, stick your finger on a map and open them to see where you might wind up before summer’s end.

Household wealth surges for many under 40
BY STEVE DINNEN

Take heart, young people: You’re in better financial shape than you might think.

A recent crunching of numbers by the Center for American Progress shows that the average wealth of households of those under 40 stood at $259,000 at the end of 2023. What’s more, it rose an incredible 49% in the previous four years, far outpacing the growth of any other age group. Researchers said that’s a marked departure from the past, as wealth for young households had been essentially flat for decades before the onset of the pandemic.

So what triggered the surge? Basically it boils down to two things: higher real wages and higher employment levels. More people working for more money produces more wealth. Average housing wealth grew by $22,000, and ownership percentages increased slightly. The value of financial assets, mainly stocks and mutual funds, rose by $31,000. And nonhousing debt, including credit cards, fell by $5,000.

People aged 40 to 54 didn’t catch this wave. Their inflation-adjusted household wealth slumped by 7% from the end of 2019 to the end of 2023. The 55-to-69 crowd saw their wealth rise 4%, while seniors over 70 posted a respectable 15% increase.

The average wealth for all households, regardless of age, is $1.1 million, according to the Center for American Progress. So you 40-somethings have some catching up to do.
Changes in retirement savings rules to know before year's end
BY LEONARD SLOANE FOR THE WALL STREET JOURNAL

Investors might be forgiven for not being aware of all of the provisions Congress put into the landmark retirement law it passed more than a year and a half ago. But the unknown could prove costly.

The provisions, some of which have yet to kick in, cover everything from the yearly mandated withdrawals known as required minimum distributions, or RMDs, to the types of accounts that can be used for certain retirement plan contributions.  

“Lots of rules have changed,” says Sarah Brenner, director of retirement education at Ed Slott & Co., a tax-consulting firm in Rockville Centre, New York. “If you happen to be affected by one of them, it could have a significant impact on your finances.”

Here are some of the rules:

No more RMDs from Roth 401(k) plans. Contributions to Roth 401(k) plans are made after-tax, meaning that income tax on each contribution is paid before the funds go into the plan — as is the case with Roth IRAs but not traditional 401(k)s.  

Until this year, RMDs had to be taken from these plans despite their after-tax treatment. Now RMDs are no longer required from Roth 401(k)s, bringing them in line with the rules for Roth IRAs.

READ MORE

A great financial adviser starts with finding problems
BY RICHARD HIMMER FOR KIPLINGER

In the financial planning industry, professionals often find themselves navigating a complex landscape of client wants and needs, market trends and product offerings. Success in this field requires not only the ability to solve problems, but more importantly, the ability to identify them in the first place. Problem-finding and problem-solving are distinct yet complementary skills that are critical in the financial planning profession for both advisers and clients.

This twofold capability is critical in ensuring that clients receive comprehensive, personalized and proactive financial guidance. In this article, we will explore why finding an adviser who is adept at problem-finding before problem-solving is essential for achieving your financial goals.

Problem-finding. Problem-finding involves recognizing and defining issues that may not be immediately apparent; therefore, they are hidden — sometimes knowingly, but most of the time unknowingly. It’s not uncommon for people who are looking for an adviser to lack clarity or transparency in what they want. Therefore, as an adviser, mastering the skill of problem-finding before problem-solving is crucial for the following three reasons.

Client wants/needs assessment. Financial advisers must be adept at uncovering their clients’ underlying wants, needs, concerns and short- vs. long-term goals. This is the most challenging of the three areas. It goes beyond the surface level of what clients explicitly state and involves asking probing questions without bias, observing behavior and understanding long-term financial goals.

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dsmWealth's suggested reading
How one man lost $740,000 to scammers targeting his retirement savings (New York Times)

Dave Ramsey has bluntly honest words on his bankruptcy struggle (TheStreet)

Rush hour isn’t what it used to be: Working 10-to-4 is the new 9-to-5 (CNBC)

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