Economy Financial Literacy Reference

Fed hikes rates 0.75 points

“Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures,” the policy committee said in a statement.

Fed steps up campaign against inflation with 0.75 point rate hike

via Axios

The Federal Reserve made an aggressive new move in its campaign to bring down inflation Wednesday, raising its target interest rate by three-quarters of a percentage point, the steepest rate hike since 1994 — and indicated another similar move could be coming next month.

Driving the news: In addition to increasing their target for short-term interest rates to a range of between 1.5% and 1.75% Fed officials projected that their target rate will reach 3.4% late this year, far higher than the 1.9% they envisioned in March.

  • Speaking to reporters, Fed chair Jerome Powell said the central bank will likely raise interest rates again by a similar magnitude — or perhaps by a half-percentage point — at its next policy meeting in July.
  • “Inflation has obviously surprised to the upside over the past year, and further surprises could be in store,” Powell said.

Why it matters: The Fed has shifted toward a break-the-glass, emergency footing on inflation — but such abrupt rate hikes risk sending the economy into recession and markets plunging further.


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2022 Spring Quarterly Planning Meeting

Villa Vista, Nevada City CA

This year we held our Spring Quarterly at the Villa Vista in Nevada City. We were able to be laser-focused and move purposefully through all the integral elements, resulting in a very productive meeting.

Afterwards, we enjoyed a lovely dinner in the cozy outdoor patio at One 11 restaurant downtown. The wonderfully skilled classical guitar player was a special treat 🙂

Community General Nonprofit Retirement

Seminar: Lifetime and Legacy Charitable Planning 2022

The Sacramento LGBT Community Center hosted our second annual seminar “Introduction to Lifetime and Legacy Charitable Giving and Tax Planning” at its lovely new headquarters building in Lavender Heights.

The presentation was very well received, and the Q&A portion was long and lively. A big thanks to Lanz Nalagan for all his hard work to ensure a great turnout!


IRS Backlog Will Be Frustrating

Well here we go! Thanks to covid and an aging digital infrastructure, the IRS has a large backlog of work to wade through this year. Be sure to file your return early to get any refund due you as quickly as possible.


From the folks at Marketwatch:

This year’s income tax filing season has started, and the IRS says it’s going to be a ‘frustrating’ one

By Andrew Keshner24

Taxpayers should be ready for delays processing 2021 tax returns, IRS officials say.

Ready for your 2021 tax refund? It’s closer than ever, because tax season is underway and the Internal Revenue Service started accepting and processing 2021 returns on Jan. 24. The 2022 tax season will run until Monday, April 18.

But that refund may not be coming as fast as you would like. The Treasury Department and Internal Revenue Service have warned taxpayers to brace themselves for potentially sluggish service as the underfunded, understaffed and backlogged IRS juggles another filing season.

The 2022 filing season arrives as Capitol Hill negotiations over the Biden administration’s Build Back Better bill seem stalled. The bill would include adding $80 billion over a decade to the IRS budget for more staff and better technology to catch tax cheaters, as well as funding to improve customer service.

“In many areas, we are unable to deliver the amount of service and enforcement that our taxpayers and tax system deserves and needs. This is frustrating for taxpayers, for IRS employees and for me,” IRS Commissioner Chuck Rettig said Jan. 10.

Exhibit A: telephone customer service for taxpayers or preparers who have questions for the IRS. Less than 15,000 IRS staffers were available to field more than 240 million calls through the first half of 2021, Treasury officials said.


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General SoeFin

2022 Annual Strategic Planning Meeting

It’s time once again to take stock and plan ahead! This year, the team held our Annual Strategic Planning Meeting at the Grand Sierra Resort in Reno, NV. Our business suite had an impressive view of the Virginia Range peaks, including Rattlesnake Mountain. This was a very productive meeting and we are well prepared for the year ahead. Good job, team.

Community Financial Literacy Retirement Taxes

Seminar: Lifetime and Legacy Charitable Planning 2021

Thank you to the Sacramento LGBT Community Center for hosting our seminar “Introduction to Lifetime and Legacy Charitable Giving and Tax Planning”. The event was well-received and we were able to provide excellent information to the attendees. We look forward to doing it again next year!

Budgeting Financial Literacy

Understanding Cost Basis

Understanding your cost basis can save you pretty penny or three. Here’s a useful little primer on what cost basis is, and why it’s useful to understand, from the folks at Schwab.

Save on Taxes: Know Your Cost Basis


Many people dislike thinking about taxes so much that they ignore the topic until filing season is upon them. Unfortunately, waiting until the last minute to deal with tax matters can lead to missed opportunities to potentially reduce your tax bill. 

Investors who include tax planning as part of their investing strategy could potentially see significant tax benefits over the long run, says Hayden Adams, CPA, director of tax and financial planning at the Schwab Center for Financial Research.

You shouldn’t just be thinking about capital gains and losses. Savvy investors know how to manage the so-called “cost basis” and holding periods of their investments to help reduce gains that are subject to taxes. Knowing your cost basis can be a valuable tool.

What is cost basis?

Simply put, your cost basis is what you paid for an investment, including brokerage fees, “loads” and any other trading cost—and it can be adjusted for corporate actions such as mergers, stock splits and dividend payments. This matters because your capital gain (or loss) will be the difference between the cost basis and the price at which you sell your securities. This cost is pretty easy to calculate—if you don’t reinvest dividends or dollar-cost average when you invest.

Read the full article here:

Financial Literacy SoeFin Taxes

Seminar: Tax Planning for Planners

Thank you to all the amazing planners who attended!

The seminar was really well received, and based on the awesome feedback from all of you, we hope to be able to give this one again every year 🙂

General SoeFin

2021 Spring Quarterly Planning Meeting

Spring has sprung, and we’ve successfully finished another quarterly planning meeting. This time, we went up to the Ridgetop Clubhouse, outside scenic Placerville. The views of the Crystal Range were outstanding, and being able to walk in the peaceful woodlands was rejuvenating to the spirit. Good job, team!


Congratulations, Susan!

Congratulations to our own Susan Soesbe, winner of the 2021 Excellence in Business award form the Sacramento Rainbow Chamber of Commerce!

The entire team is proud to work with such a dedicated professional, and look forward to many more years with her. Thank you to the Rainbow Chamber for honoring us all here at Soesbe Financial through this award.

For more information on the Rainbow Chamber, visit them online at