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Honoring Dr. King’s Legacy: Inspiring Words for Today and Every Day

Written by Minich MacGregor Wealth Management on . Posted in Articles, Posts.

Happy Martin Luther King Jr. Day!

Dr. King’s words have always been a source of inspiration to many. Even though they were written decades ago, they continue to resonate deeply and remind us of the power we all have to make the world a better place.

One of Dr. King’s most impactful writings, Letter from Birmingham Jail, was penned in 1963 while he was imprisoned for participating in nonviolent protests against segregation in Birmingham, Alabama. In the letter, King responds to criticisms from local clergymen who called his actions “unwise and untimely.” Rather than retreating, Dr. King used the opportunity to explain why he felt it was not only necessary but urgent to fight for justice. Though his words were shaped by the challenges of his time, they still hold incredible relevance today.

This year, as we honor Dr. King’s legacy, we took some time to revisit this powerful letter. It’s not an easy read. It’s a letter born of frustration, written in the face of incredible injustice. But it’s also a letter filled with hope, resilience, and a call to action that still rings true today.

There were a few quotes that stopped us in our tracks as we read, and we wanted to share them with you—not just for what they meant then, but for what they can mean to us now.

“Any law that uplifts human personality is just. Any law that degrades human personality is injust. Segregation…substitutes an “I it” relationship for an “I thou” relationship and ends up relegating persons to the status of things.”

This line reminded us of how easy it can be to lose sight of someone’s humanity. It’s something we see every day, whether in the rush of our busy lives or in moments of conflict and misunderstanding. Dr. King’s words challenge us to slow down, to really see the people around us—not just as roles or labels, but as individuals with their own stories, struggles, and dreams. Small acts of kindness, even something as simple as a smile or a kind word, can remind someone (and ourselves) of that shared humanity.

“Injustice anywhere is a threat to justice everywhere. Whatever affects one directly affects all indirectly.”

This is such a powerful reminder of how connected we are. When someone in our community is struggling, it isn’t just their burden—it’s something that ripples out and affects us all. But the same is true of hope and kindness. When we choose to lift each other up, those small actions can grow into something much bigger. They create a ripple effect that brings us all closer together and makes our communities stronger.

“So the question is not whether we will be extremists, but what kind of extremists we will be. Will we be extremists for hate or for love?  Will we be extremists for the perseveration of injustice or for the extension of justice?”

This quote makes us pause and reflect on the importance of taking a stand for our values. Dr. King wasn’t advocating for division or conflict; he was challenging us to think deeply about what matters most to us. It’s easy to stay neutral, to avoid uncomfortable conversations or hard decisions—but there are moments when silence isn’t an option. Whether it’s standing up for fairness, supporting a friend, or choosing kindness in the face of disagreement, we all have the power to leave a meaningful impact through the principles we choose to uphold.

As we reflect on these quotes, we’re struck by how relevant Dr. King’s words remain. They inspire us to approach the world with more compassion, to act with intention, and to believe that even small, everyday choices can make a difference.

On this Martin Luther King Jr. Day, we hope his teachings inspire you as much as they inspire us. Let’s honor his legacy by carrying forward his ideals—not just today, but every day. Let’s find ways to connect, to uplift, and to act with the courage and love he so powerfully demonstrated.

On behalf of everyone here at Minich MacGregor Wealth Management, we wish you a meaningful and reflective day. May Dr. King’s vision inspire us all to keep building a brighter future together.

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Labor Day – The Eight Hour Work Day

Written by Minich MacGregor Wealth Management on . Posted in Articles, News, Posts.

Happy Labor Day!

Most of us associate Labor Day with BBQs, parades, and weekend camping trips. But the more we learn about the holiday, the more we realize that it’s really a celebration of things we take for granted yet couldn’t imagine living without. And it’s a commemoration of the men and women who risked their lives, liberty, and reputations to secure them for us.

For instance, take the eight-hour workday, the current standard in the United States.1

Everyone has different careers and work schedules. Some are incredibly demanding and long. Others are on swing shifts. But for many Americans, the day looks like this: get up, eat breakfast, and see children off to school. Go to work, break for lunch, work through the afternoon, and then head home in time for dinner. It’s a simple thing, this schedule. But it’s a schedule that enables us to keep our bodies fueled, hydrated, and rested. A schedule that allows for time to attend our loved ones’ school plays and soccer games. A schedule that affords more time for recreation, relaxation, and self-improvement.

But it wasn’t always this way.

The year was 1835. The location: Philadelphia. Throughout this enormous city – indeed all throughout the country – workers knew only one sort of workday.

They called it “sun to sun.”

The moment the sun crested over the horizon each day; tens of thousands of laborers were already at work. Shoveling coal. Laying bricks. Painting houses, driving carts, unloading boats, and a hundred other tasks. They would work, often under hazardous conditions and for little pay until the sun finally went down. During the summer, this could mean up to 15 hours per day, leaving them no opportunity to see their families or do much of anything. The winter workday, in contrast, was comparatively short – at around 9 hours per day – but it also meant an enormous drop in pay or routine unemployment. Neither situation was acceptable for someone trying to feed their family. To make matters worse, the toil of a sun-to-sun day led to a laundry list of physical ailments. Workers routinely suffered “swollen ankles, nervous headaches, lung disease, stomach problems,” and much, much more.

Then, one day, a letter arrived from Boston. The city that helped launch the American Revolution was requesting help from the city that had declared American Independence. Laborers there – primarily carpenters, but soon masons and stonecutters, too – were done with this unfair system. They were demanding their rights as workers, citizens, and human beings for something better.

We have been too long subjected to the odious, cruel, unjust and tyrannical system which compels the operative mechanic to exhaust his physical and mental powers. We have rights and duties to perform as American citizens and members of our society, which forbid us to dispose of more than ten hours for a day’s work.2

Essentially, Boston workers were calling for a citywide guarantee of a 10-hour workday regardless of the season. And they were asking laborers in other cities to call for the same thing.

The letter quickly gained traction in Philadelphia, circulating from worker to worker with astonishing speed. (These days, we’d call it “going viral.”) For them, the demands in the letter were not just about having more time off. They were about ensuring the means to become better citizens and more productive members of society. As the letter from Boston had proclaimed — and as the Philadelphia workers then repeated — “We have taken a firm and decided stand to obtain the acknowledgement of those rights to enable us to perform our duties to God, our country, and ourselves.”3 So, in May, three hundred coal workers decided to go on strike. Together, they marched on the coal wharves and announced that no coal would be unloaded until a 10-hour workday was established.

This was not an easy decision. For any worker to go on strike was to risk not just their current job, but their entire future. Livelihoods and reputations could be ruined forever if the strike was not successful – and up to that point in American history, few strikes had been. In many cases, strikes could lead to injuries and even death. Nevertheless, the coal workers were quickly joined by almost every other laborer and tradesman in the city. The words in the Boston letter became a topic discussion in every tavern and meeting house. Altogether, over twenty thousand workers began marching around the city, carrying banners that said, “From 6 to 6, ten hours work and two hours for meals.”

The movement was so organized, united, and swift that within three weeks, the old sun-to-sun system was out. The ten-hour day became standard throughout the city. In addition, many workers also gained an increase in their wages. But the movement didn’t stop there. The news quickly spread to every corner of the country, and by the end of the year, workers from New England to the Carolinas had conquered the old system. A system that “left no time for mental cultivation and kept people ignorant by keeping them always at work.”3 A system that was “destructive of social happiness and degrading to the name of freemen.”3 In its place was a new system. One that had “broken [people’s] shackles, loosened their chains, and made them free from the galling yoke of excessive labor.” 3

The rights won in 1835 laid the foundation for the rights we enjoy today. An eight-hour workday. The right to take vacations or medical leave. To care for our bodies properly. To see our families. To learn, live, and worship however we see fit. Rights we cannot live without…and which were secured for us by people who simply wanted a better future for themselves and their children.

And that, to us, is what this holiday is all about. We wish you a happy Labor Day!

The Watch List

Written by Minich MacGregor Wealth Management on . Posted in Articles.

Here at Minich MacGregor Wealth Management, our team has a “watch list” of economic factors, market data, and ongoing storylines that we keep an eye on.  Sometimes, we move some items up or down on the list, depending on the impact we expect them to have on the markets.  By doing this, we can ensure that you stay current with what’s going on. 

Recently, a few items have dominated our watch list that we want to update you on.  While the markets have had a good year overall – the S&P 500 gained 10.2% in the first quarter alone1 – they were somewhat more volatile in April.  That’s largely due to three factors: GDP, inflation, and what both mean for interest rates.  So, with your April statement soon to be in your hands, we figured it was a good time to explain how these factors are affecting the markets.  

Let’s start with GDP, or gross domestic product.  GDP is the value of all the goods and services produced in a given period.  Typically, a rising GDP indicates a healthy, growing economy.  Here in the U.S., GDP growth has been positive for seven consecutive quarters.  In fact, on April 25, the U.S. Bureau of Economic Analysis reported that the economy grew by 1.6% in the first quarter of the year.2  But then a funny thing happened.  When the news came out, the markets promptly slid. 

Now, at first glance, this might seem counterintuitive.  After all, isn’t the economy growing a good thing?  If so, wouldn’t the markets go up on that news?    

The daily movement of the markets is always driven by a variety of factors.  In mathematics, we know that 1+1 always equals 2.  In physics, we know that e=mc2.  (Don’t ask us to explain why, though.)  But the markets are not governed by consistent laws.  They are driven by data, yes, but also by the context surrounding that data…and by the emotions that context provokes. 

In this case – and likely for the near future – there is a lot of context to consider when trying to parse any economic data.  In this case, the context is as follows:

While the economy expanded in Q1, that growth was much lower than economists thought it would be.  Most had forecast the nation’s GDP – the value of all the goods and services produced in a given period – would rise by around 2.4%, not 1.6%.2  And the Atlanta Fed had estimated a 2.7% gain.3 

This disparity between forecast and results was largely due to lower consumer spending.  While spending did increase in Q1, to the tune of 2.5%, this was also lower than economists estimated.2  A small decrease in exports and a slight increase in imports also dragged GDP down for the quarter.    

That brings us to the second factor, inflation.  On the same day as the most recent GDP report, the BEA also reported new data suggesting inflation may remain “sticky” for the foreseeable future.  The Personal Consumption Expenditures (PCE) price index, which measures the change in the prices of goods and services purchased by all consumers in the U.S., rose by 3.4% in Q1.  That’s a big jump from the 1.8% mark we saw in Q4 of 2023.2 

Normally, the fact that the economy grew at all would still be cheered by investors, if for no other reason than what it might mean for the third factor: interest rates.  As you know, the Federal Reserve has kept rates elevated for the past two years to help bring down inflation.  Since higher rates typically lead to less borrowing and lower spending, they are effective at cooling prices down.  But when the rate hikes began, many experts thought they would also cause the economy to decline. 

So far, that hasn’t happened.  So, investors figured that lower inflation, combined with a strong economy, would prompt the Fed to start lowering rates in the spring or early summer.  (This expectation is one of the main reasons the stock market has performed so well over the last year.)  But with inflation trending higher again, it’s now unlikely the Fed will cut rates anytime soon.    

For investors, though, all this data suggests a new potential problem: stagflation. 

While inflation is never easy, the pain has been cushioned somewhat by the fact that our economy has continued to grow at a healthy rate.  But what if prices remain high while growth becomes stagnant?  That’s stagflation.  It’s rare, and to be clear, we’re still a long way from that.  But Q1’s lower-than-expected GDP, combined with an uptick in inflation, now makes it a possibility our team has added to our “things to watch” list. 

So, what does this mean going forward?  Well, it’s important to remember that, while the markets move around like a motorboat, affected by every rock and wave, the overall economy turns like an aircraft carrier.  The data we see from one quarter may not make its true effects known for months to come.  So many outcomes are still in play.  The economy may slow just enough to bring down inflation without stopping altogether.  (That would be the Fed’s preference.)  On the other hand, new factors may lead to the economy accelerating again in Q2 or Q3 while also keeping prices high.  (In other words, a continuation of the status quo.) 

It’s impossible to predict which way the ship will go.  But what we can do is track which way the markets are trending now and then follow the rules we’ve established for your portfolio.  If our signals indicate we should be offensive and look for opportunities, we’ll do that.  If they indicate it’s time to play defense and focus on preserving your money, we’ll do that.  In the end, it’s these rules and signals that will govern our decisions…not parsing every economic report, and certainly not emotion. 

As always, our team will keep you apprised of what’s going on in the markets and why.  We are constantly monitoring the items on our watch list and will continue to do so.  So, if you ever have any questions or concerns, we are always here to address them.  Have a great week!  

1 “Stocks close out 2023 with a 24% gain,” CBS, www.cbsnews.com/news/stock-market-up-24-percent-2023-rally/
2 “GDP growth slowed to a 1.6% rate in the first quarter,” CNBC, www.cnbc.com/2024/04/25/gdp-q1-2024-increased-at-a-1point6percent-rate.html
3 “Stagflation fears just hit wall Street,” CNN Business, www.cnn.com/2024/04/26/investing/premarket-stocks-trading-pce-stagflation/index.html

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4 Common Tax Mistakes

Written by Minich MacGregor Wealth Management on . Posted in Articles, Featured, News, Uncategorized.

mistake 1

MISTAKE #1: Filing Too Early

It may be surprising to hear, but many people are so anxious to get their filing done ahead of time, they file their taxes before receiving all the proper documentation they need to ensure their information is accurate. This can lead to mistakes and processing delays.

mistake 2

MISTAKE #2: Missing Eligible Credits and Deductions

There are many credits and deductions you may be eligible for. But some of these, like the Earned Income Tax Credit, the Child Tax Credit, energy tax credits, and various itemized deductions, can be difficult to figure out, causing some to skip out on them entirely. This is why working with a good tax professional can really pay off.

mistake 3

MISTAKE #3: Forgetting to Contribute to an IRA

Some taxpayers forget to contribute to an Individual Retirement Account each year. These contributions are tax-deferred, meaning they can help reduce your taxable income. For the 2023 tax year, the contribution limit is $6,500 for those under age 50 and $7,500 for those over.*

mistake 4

MISTAKE #4: Not Reporting All Income

Many taxpayers only think of their paycheck when reporting income, forgetting to factor in dividends, bank interest, and other income sources. This information is critical for both calculating the credits and deductions you can take as well as the refund you are entitled to.

* “IRA Contribution Limits” – Internal Revenue Service