From our families to yours, Happy Thanksgiving! We are incredibly grateful for this year’s successful launch of RBGWA and the opportunity to play a role in planning for our clients’ futures.

While higher inflation may be pinching consumer wallets, recent economic data still point to a resilient consumer

"As Americans head to the grocery store this week to stock up on ingredients, they may be frustrated to discover that the cost of a Thanksgiving dinner is a whopping 20% higher than last year, according to a survey by the American Farm Bureau.

However, while higher inflation may be pinching consumer wallets, recent economic data still point to a resilient consumer. Following upward revisions to prior months, retail sales jumped by 1.3% in October and on an inflation-adjusted basis, sales still rose by 0.8%. The retail sales control group, which excludes sales on gas, food, autos and materials, also rose a solid 0.7%.

Last year, consumers shopped early and spent more to secure gifts as stores struggled to keep shelves stocked amid shipping delays. This year, major retailers are sitting on excess inventories and potentially facing a more conservative consumer.

However, while consumers may be running down their excess savings from the pandemic, down from a peak of $2.0tn to $1.0tn as of September, softening inflation and low unemployment should lift real wage growth and consumer sentiment in the months ahead, supporting overall consumer spending. Price discounts from major retailers may also help lure consumers back to the storefronts this season.

We still anticipate a consumer squeeze in 2023, given a very low personal savings rate and climbing consumer credit balances, but Americans should be able to eat, drink and be merry—at least for the next few months."

5 Smart Charitable Giving Strategies in Uncertain Times

"1) Select the Right Asset To Give

How it works: Consider a donation of long-term appreciated stock (i.e., held for greater than one year) to charity via a donor-advised fund in lieu of cash.

Potential benefits: Tax benefits may include a tax deduction for the fair market value of the contribution and elimination of the capital gains tax and Medicare surtax that is otherwise incurred on the sale of the stock.

2) When Rebalancing a Portfolio, Consider Donating Appreciated Positions

How it works: Rather than selling appreciated positions to rebalance a portfolio, an investor can make a charitable gift of the long-term appreciated asset via a donor-advised fund.

3) Divest Privately Held Interests via a Donor-Advised Fund

How it works: Donate a portion or all non-publicly traded held interests to a charity prior to divestiture.

Potential benefits: Not only is it possible to minimize capital gains exposure under this strategy, but it may also allow for a tax deduction for the current fair market value of the donated assets, rather than the original cost basis that a private foundation must use.

4) Elect Charitable Contributions to Offset a High-Income Year

How it works: A “bunching” strategy may reduce taxable income. By frontloading multiple years of charitable giving in one year, it may allow them to surpass the itemization threshold and then elect the standard deduction in subsequent years.

5) During Roth Conversions, Offset Increased Taxable Income With a Charitable Contribution

How it works: When a client’s Roth conversion triggers a taxable event, a charitable gift in the same tax year may offset taxable income."

This was a great write-up on charitable giving. Now is the time to consider gifting strategies in order to implement them before the year-end rush.

Bob Iger back as Disney CEO, Chapek steps down

“Bob Iger, who served as Walt Disney CEO for 15 years until 2020, has taken the job for a second time — effective immediately, the company confirmed Sunday night.

Why it matters: Iger was one of the most celebrated Hollywood executives ever. His successor, Bob Chapek, was given a three-year contract extension in June.

Details: "The Board has concluded that as Disney embarks on an increasingly complex period of industry transformation, Bob Iger is uniquely situated to lead the Company through this pivotal period," said board chair Susan Arnold in a statement.

By the numbers: Disney's share price is languishing near its eight-year low point, and is down 43% from its March 2021 high.

The big picture: Iger's return comes after years of confusing signals around his successor. Two executives, Tom Staggs and Kevin Mayer, both reportedly left the company after being passed over for the CEO role.

Iger eventually picked Chapek as his successor weeks before the pandemic-driven lockdowns in the U.S., but the longtime parks and resorts executive had little to do with Disney’s new big bet — streaming.

Iger found opportunities to distance himself from Chapek, for example, he offered a firm stance against Florida's "Don't Say Gay Bill" publicly in February while Disney’s executive team struggled to address it.

Thought bubble: Iger's return is explicitly a stopgap appointment; he gets back his old CEO title but he won't get back his old job as chair of the board. The message is that Chapek was a disappointment, and the next two years should provide enough time for a more permanent successor to be found."

I don't think it's hyperbole to call the CEO replacement/retracement shocking for Disney. Even though Iger's shadow loomed large and Chapek's tenure was rocky, the Disney board had allowed Chapek to consolidate C-suite power and recently extended his contract. It didn't matter. Chapek is out, and Iger is back in at the magic kingdom.

“The US LEI fell for an eighth consecutive month, suggesting the economy is possibly in a recession,” said Ataman Ozyildirim, Senior Director, Economics, at The Conference Board. “The downturn in the LEI reflects consumers’ worsening outlook amid high inflation and rising interest rates, as well as declining prospects for housing construction and manufacturing. The Conference Board forecasts real GDP growth will be 1.8 percent year-over-year in 2022, and a recession is likely to start around yearend and last through mid-2023.”

Thanks for reading. Have a great weekend!

RBG Wealth Advisors LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.