Ric Komarek, CFP
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Avoiding 7 Retirement Traps

4/9/2021

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​You have saved and invested for decades and you are gearing up for retirement, or maybe you have already left your job. While the idea of leaving your career behind may be appealing, it is a monumental change that can also be unsettling for some folks.
               
You will be sailing in a new direction, and you will take on new challenges. Your daily routine will dramatically change, and you’ll begin to rely on a lifetime of savings.
 
What should you do? 

1. A more conservative investment posture may be in order. There was little reason for concern when you were 30-years old and volatility struck. In fact, the idea of dollar-cost averaging and buying shares at a lower price may have been appealing. Besides, the market has a long-term upward bias, and it would be decades before you would tap into your 401k or IRA.
 
But today, market volatility can be much more disruptive. A big decline in stocks at the onset of retirement could create significant problems down the road. We’ll handle these conversations at your leisure, but a shift towards assets that are not as volatile may be more suitable.
 
It’s not that we want to completely avoid equities. Some may be tempted to exit stocks. That might not be the right choice either.
 
Instead, we want to take on the right level of risk. In most cases, some exposure to stocks is the best path. But the growth-oriented strategies of your youth that helped build your nest egg should probably be tempered in retirement.
 
2. Be careful taking Social Security too early. There are some reasons to opt for Social Security when it becomes available at 62. For many, however, that will reduce their lifetime earnings from Social Security.
 
Today, the full retirement age runs between 66 and 67 years old, depending on the year you were born.
 
Individuals who collect Social Security beginning at age 62 receive ​25% less in monthly benefits than if they had waited until full retirement age. This assumes a full retirement age based on a date of birth between 1943 and 1954.
 
Delaying Social Security until 70 allows you to receive the maximum benefit that’s available. It will provide you with an additional 32% over what you’d pocket at full retirement age, assuming full retirement age based on a birthdate between 1943 and 1954 (both examples are for illustrative purposes only).
                                                                                                 
Rules governing Social Security are complex, and the information I've provided is simply a general overview. Much will go into your decision to begin collecting your monthly benefit. It goes without saying that I'm happy to lay out various strategies so that we can best position you when the time comes.
 
3. Implementing the correct distribution strategy. If all your retirement assets are 100% in a Roth IRA, taxes are much less of an issue when you withdraw for living expenses. However, many of us have our savings in a traditional IRA or 401k. Distributions will be taxed at your marginal tax rate. You may also be liable for penalties if you withdraw before the age of 59 ½.  
 
Watch out for the required minimum distribution, or RMD, for your IRA, which now begins at 72 (70½ if you turned 70½ prior to Jan 2020). You may decide to leave your IRA alone until RMDs are required.
 
Some may choose to take withdrawals prior to 72 as a way to reduce future RMDs and the potential tax implications of large withdrawals when they become mandatory.
 
Let me add that these ideas are general in nature. It’s a complex topic that could be explored in depth. My goal is to make you aware of the idea. There are ways to maximize your benefits and minimize costs. We will tailor our recommended strategies to your specific needs.
 
4. Spending too much or spending too little. When you retire, your lifestyle will change. You’ll have the opportunity to enjoy new experiences and enjoy them on your terms.
 
But let me gently caution you not to overspend in the early years of retirement. Recognize that you’ll be living on a fixed income, and you have a finite ability to earn extra cash. This is especially true as you get older.
 
At the same time, some retirees can be too cautious about spending. They have ample reserves but sometimes guard them too closely. We applaud those who want to leave a financial legacy to their children, but balance that desire and have some fun in retirement.
 
5. Be aware of scams. I won’t spend much time on this as I’ve written about elder financial abuse and ID theft in the past and will gladly provide you with more information if you would like.
  
6. Watch out for medical expenses. You have Medicare and you probably have a supplemental policy. But deductibles and health expenses that are not covered by insurance are always a challenge.
 
It’s important to budget for insurance and medical expenses that will likely occur as you get older.
 
7. You may live longer than you expect. Don’t let the success of your retirement plan be predicated upon saying goodbye to your loved ones shortly after leaving the workforce. Life expectancy and longevity can only be estimated.
 
Some folks will live well into their 80s and 90s. Continue to plan as if you’ll be tapping into your savings long after you have retired.
 
Lastly, stay active and volunteer. It will help keep you physically fit and mentally sharp. Just as we have a plan for your finances, it’s critical to have a plan that keeps you active and helps you enjoy retirement.
 
I trust you’ve found this review to be educational and informative.
 
Let me once again emphasize that it is my job to assist you. If you have any questions or would like to discuss any matters, please feel free to give me a call.
 
As always, I’m honored and humbled that you have given me the opportunity to serve as your financial advisor.
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Covid—A Year Later

4/9/2021

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This time last year, the World Health Organization recently had declared that the spread of Covid-19 constituted a worldwide pandemic.

Stringent measures in the U.S. were being taken to slow the spread of Covid and “flatten the curve.” The lockdowns and shelter-in-place orders dealt a body blow to U.S. economic activity.

Investors, who attempt to price in economic activity over the next six to nine months, had no prior experience to a shutdown and eventual reopening of the economy. It was if we were driving through a dark and foggy night with no headlights.

Consequently, investor reaction was swift, and the first bear market since 2009 descended upon investors. Volatility was intense. In just one day, the Dow Jones Industrial Average lost nearly 3,000 points, or 12.9% (March 16, 2020 St. Louis Federal Reserve DJIA data).

That day accounted for over 25% of the Dow’s nearly 11,000 point peak-to-trough loss.

The major market indexes bottomed on March 23 (St. Louis Federal Reserve). The bear market lasted barely over a month, if we use the broader-based S&P 500 Index as our yardstick. It was a swift decline, but it was the shortest bear market we’ve ever experienced.

The ensuing rally has been nearly unprecedented. Since bottoming, the S&P 500 Index advanced an astounding 77.6% through March 31. It’s 3,972.89 close at the end of the first quarter put it within 1.65 points of the prior March 26 closing high. And that is on top of a series of new highs since the beginning of the year. Since the end of the quarter, the S&P 500 has gone on to top 4,000.

Let’s back up and take a broader view.

If we review the six longest bull markets since WWII, the S&P 500’s advance over the first year tops all other prior bull markets. In second place at 72.4% is the bull market that began in March 2009. That run lasted into February 2020 (St. Louis Federal Reserve).

But I want to caution you that past performance doesn’t always guarantee future results.

If we gauge the first year of the 1990s bull market, the S&P 500 had advanced 32.8% during the same period. It’s an excellent performance for a period that runs about one year, but it would place the start of the long-running 90s bull market in last place among the six longest periods since WWII.

Where are we headed from here? You’ve heard me say that no one has a crystal ball. No one can accurately and consistently predict what may happen to stocks.

Nevertheless, let’s look at what’s happened in the second year of bull markets that were born out of bear markets that saw the S&P 500 Index fall at least 30%.

Since World War II, there have been six other bear-market selloffs of at least 30%. In each case, the market posted strong returns in the first year, with an average gain of 40.6%. Gains ran into year two, with an average increase of 16.9%; however, the average pullback during those six periods: 10.2%.

So, let’s not discount the possibility of a bumpy ride this year.

Treasury bond yields have jumped as the government has embarked on an expensive $1.9 trillion stimulus package, and talk of new spending from Washington is gaining momentum. Further, bullish enthusiasm can sometimes spark unwanted speculation.

Might the economy overheat and spark an unwanted rise in inflation? Might rising bond yields temper investor sentiment? Up until now, investors have focused on the rollout of the vaccines, and the reopening of the economy.

Today, momentum favors bullish investors, but valuations seem stretched, at least over the shorter term. When markets are surging, there is a temptation to load up on risk.

Just as the investment plan takes the emotional component out of the investing decision when stocks are falling, it also erects a barrier against the impulse to load up on riskier investments when shares are quickly rising.
​
Life changes, and when it does, adjustments may be appropriate. Ups and downs in stocks are rarely a reason to make emotion-based decisions in our portfolios.
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Money Problems Couples Can Avoid

3/12/2021

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​“Stop in the name of love, before you break my heart.” We know The Supremes weren’t alluding to the pitfalls couples face when they grapple over money issues. But our experiences tell us that money plus love can lead into minefields.

So, let’s recognized the obvious. Financial matters are an important part of any couple’s relationship. Face them head on. 

For some couples, this will be second nature. For others, it’s a challenge, but we’re here to help.

If you take the time to get on the same page, you can solidify your finances and strengthen your relationship. Working towards the same goals is critical. It’s time well spent.

6 money mistakes you and your spouse can avoid

1. Set goals. He’s a spender, she’s a saver. Or, he has an always-expanding list of toys he would like to add to his collection, and she spends most of her time thinking about growing the family’s emergency fund and how she can max out their 401k contributions. Does that sound familiar?

It’s too late to have “the talk” after you have put a big purchase on your credit card. So, sit down and have a money date. Talk about your goals and write them down. Without goals, you won’t know where you are headed.

Share your feelings and (this is important) actively listen to the other’s viewpoint. Compromise may be needed but agreeing on common goals will allow you to move forward in a unified fashion. When you have completed this task, I am confident you’ll feel an enormous sense of satisfaction.

2. All for one and one for all. Marriage is about unity, but our interests won’t always be perfectly aligned. The same can be said about handling our finances.

A joint checking account and joint credit card are perfect for joint expenses, but separate accounts for separate purchase can be a good idea too. When you set your goals, establish agreements regarding your separate spending patterns.

3. Money secrets are a no-no. It’s OK not to disclose the birthday present you just bought for your spouse. It’s not OK to keep other money secrets hidden from your spouse or partner. 

Major secrets may be a symptom of bigger problems that can threaten the stability of your relationship. Don’t destroy trust that can take years to rebuild.

4. Who handles the monthly bills? It’s a good idea to use autopay. But it's not a one-time set and forget it situation. You don’t want to get caught flat-footed with an overdue bill or late charges that may slip through the cracks and ding your credit report.

Therefore, who takes care of the bills? It may make sense for one person to be in charge so there’s no confusion, and regular payments aren’t missed. 

But checking in monthly or bi-monthly is a good way to keep both individuals on the same page. Check-ins also allow you to make any adjustments, as a couple, to your goals.

5. What comes first, the chicken or the egg? It’s the age old question. Here's another one. Should we go in the direction of retirement savings or college savings? 

Having children means putting your kids before yourself more times than you’ll ever be able to count.  But when it comes to saving for retirement or college for your kids, put yourself at the front of the line. 

Pensions are disappearing and Social Security isn’t enough. You must consider your retirement needs first. There are exceptions, and we can look at ways to fund both goals. But do your best to maximize retirement savings. At the minimum, capture the full amount of your company’s match. 

Keep this in mind: If you don’t fund your retirement, who will?

6. Stash away cash for an emergency. Did you know that just 39% of Americans have $1,000 to handle an emergency? The rest would have to use a credit card or borrow to cover an unexpected need. I know you have ample reserves, but sadly, that’s not the case for all Americans. 

If you received a stimulus check in December and you don’t have an emergency fund, please save it!
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Internet Forums vs. the Professionals, or Revenge of the Nerds

2/5/2021

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Why have stocks been on such a powerful run, overcoming a dangerous pandemic that has rocked our economy?
The tailwinds that have fueled the advance include low interest rates, liquidity from monthly Federal Reserve bond buys, the Fed’s owns forecast that rates will remain low for a considerable period, fiscal stimulus, talk of more fiscal stimulus, an expanding economy, and better than expected corporate profits (Refinitiv).

When sentiment becomes overly bullish, any kind of negative surprise can create volatility. That’s exactly what happened at the end of January. And it occurred in a most unexpected way.

Professional hedge funds have heavily shorted several stocks, which they believe to be overvalued based on current fundamentals. Without getting into the particulars, shorting is a very risky way to make money when a stock falls in value. Theoretically, the loss on shorting is unlimited since there is no ceiling on a stock’s price.
​
With hedge funds hoping to profit, young traders using Internet forums (particularly wallstreetbets on Reddit), encouraged each other to pile into several securities. The goal: inflict pain on the professionals while turning a profit.

The stock that received the most attention was GameStop (GME), a struggling video game retailer that’s been heavily shorted (CNBC, MarketWatch) by hedge funds. GameStop was selling below $20 per share in early January but peaked at over $480 on January 28, according to price data from Yahoo Finance. GameStop closed at $325 on January 29.

What worried some investors late last month were fears that hedge funds being squeezed on GameStop might be forced to sell other stocks and raise cash.  

Powerful tailwinds have boosted stocks. Mix in social media, an Internet-driven rally, zero-commission trading, and idle hands that have been distracted from their pre-pandemic routines…and unexpected volatility has surfaced.

Rocky road                                                       

Volatility can happen for any number of reasons, and a correction can never be ruled out. But the economic fundamentals that lifted stocks over the last year remain in place.

As February began, interest in GameStop had begun to recede and the price fell sharply. Is the insurgency over or might Internet traders look to other stocks?

It’s a question that doesn’t offer an immediate answer. However, we know that longer term, economic fundamentals and economic activity determine stock prices.

As billionaire investor Leon Cooperman said on CNBC late last month, “At the end of the day, the stock market reflects economic progress or the lack thereof. Water seeks its own level.”

Over the longer term, relying on time-tested investment principles and avoiding decisions based on short-term volatility have historically led to the best outcome. We have crafted your financial plan based on many different factors. It is the roadmap to your financial goals.

As I’ve said many times before, the plan is designed to remove the emotional component that may encourage you to sell when volatility strikes. It is also designed to prevent you from taking on too much risk when markets surge and even seasoned investors suddenly feel invincible

If you have any questions or concerns, I’d be happy to have a conversation with you. As always, I’m honored and humbled that you have given me the opportunity to serve as your financial advisor.
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7 Steps For Staying Ahead Of Scammers

2/5/2021

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When was the last time you received a phone call or email from a scammer? It you were contacted recently, you aren’t alone.

Internet scams show no signs of letting up. In fact, the problem may be getting worse. In its most recent report from the Internet Crime Complaint Center (IC3), the FBI said it saw the largest number of complaints and the highest dollar losses reported since the center was established 20 years ago.

The FBI said it recorded 467,361 complaints in 2019 and more than $3.5 billion in losses to individuals and businesses.

The costliest scams involved business email compromise, romance or confidence fraud, and mimicking the account of a person or vendor known to the victim to gather personal or financial information, the FBI said.

“Criminals are getting so sophisticated,” Donna Gregory, the chief of IC3 said. “It is getting harder and harder for victims to spot the red flags and tell real from fake.”

But you can avoid becoming a victim with vigilance and common-sense steps.
​
  1. Beware of the fake invoice or suspicious email. Be sure to check that email address. The name may be familiar, but the email address may be a long string of unrelated characters. Other scamsters may have an email that is one letter off. Or they may simply use .net instead of .com. Does an invoice ask you to provide new bank information? That’s a potential red flag. A simple way to side-step a fraudulent transfer of funds is to verify you are using a trusted source, for instance making a quick phone call to the vender. If you are business owner, require your employees to call and verify payment requests using phone numbers that are on file.
  2. Scammers will pretend to be from an institution you are familiar with. You’ve probably received these emails or phone calls. Someone reaches out to you claiming to be from the IRS, the Social Security Administration, or another government organization. The caller says you owe money and that you must pay, or legal action will be taken. The email may have official logos, or your caller ID may reflect the government agency’s name. Let me be clear on this. The IRS will never make first contact via a phone call and claim you owe them money. You’ll receive a letter with details and steps you can take. If you receive a call, simply hang up the phone. Please do not engage the caller. Some may threaten or become abusive. If you “settle” and pay over the phone, expect repeated phone calls as more “discrepancies” are found. In other words, they will extract as much cash as you allow them too. 
  3. Avoid the Social Security scam. In one version of the scam, the caller says your Social Security number has been linked to a crime involving drugs or sending money out of the country illegally. They then tell you that your Social Security number is blocked. For a fee, it can be reactivated. Then the scammer will ask you to confirm your Social Security number. Hang up. The Social Security Administration will never call you on the phone and ask for your Social Security number.
  4. Scammers will tell you how to pay. They often insist that you pay by sending money through a money transfer company or by putting money on a gift card and then giving them the number on the back.  Others will send you a check (that will later turn out to be fake), tell you to deposit it, and then send them money. This is a common Craigslist scam. The caller wants to purchase your items sight unseen. Or they will want you to set up a PayPal account or some other type of electronic payment. (On the other hand, if you are selling items, cash is usually the best way to proceed.)
  5. Pop-up warnings. Tech support scammers may try to lure you with a pop-up window that appears on your computer screen. It might look like an error message from your operating system or antivirus software. It might use logos from trusted companies or websites.  The message in the window warns of a security issue on your computer and directs you to call a phone number to get help. Simply ignore. You can always use your antivirus software to scan. If you call, they’ll likely give you worthless information--for a fee. They may also have you download malware or other unwanted software that they claim will fix the issue.
  6. Avoid phishing scams. Phishing is a cybercrime in which a person is contacted by email, telephone, or text message by someone posing as a legitimate institution to lure individuals into providing sensitive data such as banking, credit card details and passwords. Phishing emails and text messages spin a tale in order to trick you into clicking on a link or opening an attachment. For example, they may:
  • Claim they’ve noticed some suspicious activity or log-in attempts
  • Claim there’s a problem with your account or your payment information
  • Say you must confirm some personal information
  • Include a fake invoice
  • Want you to click on a link to make a payment
  • Say you’re eligible to register for a government refund
  • Offer a coupon for free items
 
Here is one example from the Federal Trade Commission (FTC): You may receive an email that appears to be from a company you are familiar with, such as Netflix. Not everyone subscribes to Netflix, but tens of millions do.
 
You receive the email requiring that you update credit card or bank information for payment. If you comply, you’ve given criminals personal information they can use to steal from you. (If you are unsure, go to the website of the company and check your information there.)
 
Also be careful about clicking on links or attachments that could compromise your personal information or lock up your computer. Use these four steps to protect yourself from phishing:
 
  • Use updated virus protection software and keep your browsers and operating system updated.
  • Protect your mobile phone by setting software to update automatically.
  • Protect your data by backing it up.
  • Protect your accounts by using multifactor authentication, which simply means you will get a text or email with a passcode when you log into an account.
 
Please note that some of these email/texts now include a warning not to give out the passcode to anyone. Why is this needed? Some scammers will attempt to log into your account, then call claiming they are from that company and need your passcode. Just hang up.
 
  7. Steer clear of the fake Facebook page Scammers sometimes set up a fake Facebook page of a well-known company. Scammers then add a post claiming they will give away autos, free airline tickets, or thousands of dollars to “hundreds of lucky winners.” Simply share the post, comment, click on a provided link, and fill out the requested information. If you look at the FB page, you’ll notice it’s brand new as there are few posts, and it lacks a verified FB badge indicating its authenticity. However, you’ll see hundreds of individuals who have dutifully complied with the scammer’s requirements. Sadly, they will win nothing but grief.
 
What to do if you are scammed
 
Be vigilant and use common sense. Anyone can fall victim to these scams. If you have paid someone, call your bank, money transfer app, or credit card company and see if they can reverse the charges.
 
If you gave personal information, go to [[https://www.IdentityTheft.gov  IdentityTheft.gov]] to see what steps you should take, including how to monitor your credit.

Did a scammer take control of your cell phone number and account? Contact your service provider to take back control of your phone number. Once you do, change your account password. Passwords should be lengthy and include numbers, letters, special characters, and capitalized letters. Short passwords can easily be hacked using computer programs.

When you report a scam, the FTC can use the information to build cases against scammers, spot trends, educate the public, and share data about what is happening in your community. If you were scammed, report it to the FTC at ReportFraud.ftc.gov.

Finally, be vigilant and use common sense. Avoid clicking on suspicious links, and never give out personal information to a stranger over the phone. You’d never tell your best friend your annual income, so why would you give a suspicious caller your passwords, bank information, date of birth or your Social Security number
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7 Financial Resolutions

1/19/2021

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The year 2020 presented us with unique challenges. Never has a singular event had such wide-ranging repercussions as the Covid pandemic.

It has touched nearly every area of our lives. Schooling, socializing, family gatherings, travel, and more. And the restraints from social distancing and restrictions implemented to slow the spread of Covid remain in place.

Of course, it wasn’t just our daily routines that were impacted. The economy and our investments saw unprecedented swings in 2020.

Yet, we are an optimistic nation. As the economy was set to climb out of a deep hole, investment legend Warren Buffett said, “I remain convinced…nothing can basically stop America. The American miracle, the American magic has always prevailed, and it will do so again.”

Last year’s strong finish for stocks suggests Buffett is on the right track.

As we enter a new year, we tend to look back at our successes, our challenges, and new goals for the upcoming year. Without a doubt, we all faced challenges in 2020. But I believe we've all had personal victories, too.

I’m convinced most of us are hopeful as we look to 2021. I know I am.       

New Year’s resolutions are one tool that offers us guideposts as we begin the cycle anew. Surveys say that more than half of adults make resolutions--yet, we know far fewer keep them.

The top two resolutions center on money and health. My goal is to keep things simple and realistic, focusing on resolutions for your finances.

I’ll offer you options. Some may seem simple, but the foundation of any financial plan must be built on the basics, the fundamentals.

Some may apply to you. Others may not. But I encourage you to grab ahold of what is realistic.

7 financial resolutions to get you started in 2021
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  1. Make a budget. You won’t know where your money is going until you track your expenses. You might be surprised how much you spend on various items. You’ll also find ways to reduce some expenditures. That puts and keeps money in your pocket. Of course, some of us are saving due to the pandemic. We miss restaurants, concerts, movies and sporting events. But what new habits have we learned in 2020 that we can carry over into the new year?
  2. Establish an emergency fund. Nearly 30% of Americans don’t have savings for an emergency. Start with what you have and systematically save until you have at least three months you can set aside in the event of an emergency. Six to 12 months is optimal.                                            
  3. Start or increase saving for retirement. Maybe you don’t think you can afford it. But let’s view this from another angle. When an unexpected bill comes in, we always seem to find a way to pay for it. If your car breaks down, you know you’ll need to get it repaired. Look at retirement as your car that needs to be fixed. One easy way is to sign up for automatic drafts into your 401k or IRA. Do you want to save 10% of your income? But does that goal seem out of reach? Then start with baby steps—two or three percent of income will be your starting point. Then double it in April and increase it by the same amount in July. Continue every three months until you hit your goal. Be sure to set a reminder for yourself.
  4. Pay down and pay off debt. You’ve created a budget, but debt continues to weigh on you like an anchor around your neck. You know the feeling. Put away your credit cards until they are paid off. Pay more than the minimum balance and focus on high-cost debt first. When one card is paid off, put that payment towards your next loan. You’ll be surprised at the headway you’ll make. And one more thing. When you’ve paid off a loan, reward yourself. Simple rewards are excellent incentives that keep you on track to the top of your summit.
  5. Keep debt reasonable. If you have all your credit card, student and auto loans paid off, you are right on track. But just because you can borrow doesn’t mean you should. Keep monthly outflows for your home below 28% of your pretax income and your total monthly debt payments (including credit card, mortgage, auto, and student loans) below 35% of your pretax income. These principles will help keep you on sound financial footing.
  6. Contribute to a cause near and dear to your heart. Consider incorporating regular financial gifts toward your church or charity. Can you set up an automatic draft? If so, even a few dollars each month means you will be making a difference. Or, you may choose to volunteer your time. 
  7. Get your affairs in order. Finish setting up a will or trust, update your beneficiaries, update life insurance, and consider a living will. A living will reflects your preferences to close family or friends regarding end-of-life medical treatment. Also, consider a durable power of attorney, which allows someone to make health-care decisions for you if you are incapable of doing it yourself.

The seven resolutions are simply guidelines and suggestions. Does it seem overwhelming? Then focus on one or two. Or, grab hold of the ones that apply to you and tackle one per month.

As I always remind you, I'm here to assist you, encourage you and point you in the right direction. If you have questions, I am no further away than a phone call or email.
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A Handy Checklist for Year-End Planning and Market Round Up

12/8/2020

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Looking to year-end

I know it’s a busy time. But it’s not too soon to start thinking about taxes. In prior conversations, I have discussed year-end planning. But let’s concentrate on taxes before the new year begins.

Many questions about the new administration have come my way, including questions about new tax proposals. Joe Biden’s plan is aggressive, but it may not get out of the starting gate if the Republicans hold the Senate. As you know, two early January runoffs will determine the fate of the upper chamber.

However, there is bipartisan support for what might be called The SECURE Act 2.0. Recall that the SECURE Act, which recently passed Congress, updated rules and regulations governing retirement accounts.

There are plenty of tweaks that we might see. For example, might RMDs for IRAs rise to 75? Could we see bigger catch-up provisions? Or greater flexibility for individuals 60 and older who are attempting to save for retirement?

Maybe, but let’s not jump too far into the future. Any possible changes are in the planning stage. Congress is more likely to focus on Covid relief early next year. Besides, comprehensive bills take time to wind through Congress. Instead, let’s focus on tying up loose ends as the year comes to a close.

Before we jump into year-end planning, I want to stress to you that it’s my job to partner with you. I can’t over emphasize this, and I would be happy to review your options. As with any tax matters, feel free to consult with your tax advisor.

9 tax facts and tips to save you money

1. Tax brackets and tax rates have changed. Every year, the tax brackets for taxable income are adjusted based on the rate of inflation. The following illustrates your marginal tax bracket based on taxable income for your filing status

For Single Individuals
For Married Individuals Filing Joint Returns
For Heads of Households

10%
Up – $9,875
Up – $19,750
Up – $14,100

12%
$9,876 – $40,125
$19,751 – $80,250
$14,101 – $53,700

22%
$40,126 – $85,525
$80,251 – $171,050
$53,701 – $85,500

24%
$85,526 – $163,300
$171,051 – $326,600
$85,501 – $163,300

32%
$163,301 – $207,350
$326,601 – $414,700
$163,301 – $207,350

35%
$207,351 – $518,400
$414,701 – $622,050
$207,351 – $518,400

37%
$518,401 or more
$622,051 or more
$518,401 or more

2. The increased standard deduction has simplified filing for many. The standard deduction for married filing jointly rises to $24,800 for tax year 2020, up $400 from last year.
 
For single taxpayers and married individuals filing separately, the standard deduction rises to $12,400, up $200 from 2019. For heads of households, the standard deduction will increase to $18,650, up $300.
 
The personal exemption for tax year 2020 remains at 0, as it was for 2019. The elimination of the personal exemption was a provision in the Tax Cuts and Jobs Act. (IRS)

3. You may be eligible to take a $2,000 tax credit for each child. The credit is available to parents as long as your child is younger than 17 years of age on the last day of the tax year, generally Dec 31. It begins to phase out at $200,000 of modified adjusted gross income for single filers. The amount doubles to $400,000 for married couples filing jointly.

4. Limitations on itemized deductions. If cash expenses that are eligible to be itemized fail to top the standard deduction, skip Schedule A and take the standard deduction. It’s that simple.
 
If you itemize, please be aware that state and local income taxes, property taxes, and real estate taxes are capped at $10,000. Anything above cannot be written off against income.
 
However, the IRS said it will grant a workaround for some taxpayers.
                                                                                                              
Taxpayers that use pass-through entities (PTE), including S-corporations, some limited liability companies, and partnerships may qualify depending on your state. This work-around is not available for sole proprietors and single-member LLCs

According to the American Institute of CPAs, the PTE may deduct the entity’s state and local income taxes as a tax on the business at the federal level and avoid the $10,000 cap.
                                                                                                              
State proposals would also provide that the owner may claim a credit on the owner’s state income tax return for the owner’s distributive share of the taxes paid by the PTE.
 
It’s a complex maneuver that is only allowed by a few states (NOTE: please see articles above, which list states that are included), but it can help reduce your tax liability if you qualify.
 
For charitable contributions, you may generally deduct up to 50% of your adjusted gross income, but 20% and 30% limitations apply in some cases. (IRS)
 
In 2020, the IRS allows all taxpayers to deduct the total qualified unreimbursed medical care expenses for the year that exceeds 7.5% of their adjusted gross income
 
5. Penalties have been eliminated for not maintaining minimum essential healthcare coverage, according to the Tax Cuts and Jobs Act.
 
6. Estates of decedents who die during 2020 have a basic exclusion amount of $11,580,000, up from $11,400,000 for estates of decedents who died in 2019.
 
The annual exclusion for gifts is $15,000 for calendar year 2020, as it was in 2019.
 
7. The maximum credit allowed for adoptions for tax year 2020 is the amount of qualified adoption expenses up to $14,300, up from $14,080 for 2019.
 
8. Changes to the AMT – the alternative minimum tax. Tax reform failed to do away with the alternative minimum tax (AMT), but it snags far fewer people.
 
The AMT exemption amount for tax year 2020 is $72,900 and begins to phase out at $518,400 ($113,400 for married couples filing jointly for whom the exemption begins to phase out at $1,036,800).
 
The 2019 exemption amount was $71,700 and began to phase out at $510,300 ($111,700, for married couples filing jointly for whom the exemption began to phase out at $1,020,600)

It’s confusing, but most tax software programs run both calculations for you.
 
9. There is a 20% deduction for business owners. The new law gives “flow-through” business owners, such as sole proprietorships, LLCs, partnerships, and S-corps, a 20% deduction on income earned by the business.
 
This is a very valuable benefit to business owners who aren’t classified as C-corps and can’t benefit from 2018’s reduction in the corporate tax rate to 21% from 35%.
 
Individual taxpayers and some trusts and estates may be entitled to a deduction of up to 20% of their net qualified business income (QBI) from a trade or business, including income from a pass-through entity.
 
In general, total taxable income in 2020 must be under $163,300 for single filers or $326,600 for joint filers to qualify.
 
The deduction does not reduce earnings subject to the self-employment tax.
 
There are limitations to the new deduction and some aspects are complex. Feel free to check with your tax advisor to see how you may qualify. Most tax software programs will run the calculation, too.
 
The points above are simply a summary. You may see provisions that will benefit you. You may also see potential pitfalls. If you have any questions or concerns, let’s have a conversation.

8 Smart Planning Moves to Consider
                            
1.      Review your income or portfolio strategy. Are you reaching a milestone in your life such as retirement or a change in your personal circumstances? Has your tolerance for taking risk changed? We experienced historic volatility this year. The broad-based S&P 500 Index lost over 30% in one month. The selloff was steep and violent but short-lived.
 
As November came to close, the major market indexes had re-captured prior highs. It’s a testament to adhering to the long-term financial plan.
 
Did you take volatility in stride, or feel any uneasiness? A pandemic, a shuttering of the economy, and a swiftly falling stock market are bound to create some anxieties. But if you experienced sleepless nights or sought the safety of cash, now may be the time to re-evaluate risk and your approach.  
 
One of my goals has always been to remove the emotional component from the investment plan. You know, the one that encourages investors to load up on stocks when the market is soaring or one that prods us to sell when volatility surfaces.
 
The hard data and my own personal experience tell me that the shortest distance between an investor and his/her financial goals is adherence to well-diversified holistic financial plan.
 
2.      Rebalancing your portfolio. Despite the rollercoaster ride, overall market performance has been good this year. U.S. equities have provided a nice lift to your portfolio, but you may have too much exposure to stocks as we approach 2021.
 
If that’s the case, we may need to trim back on equity exposure. However, we may want to wait until January in non-retirement accounts so that any gains are booked in tax year 2021.
 
3.      Take stock of changes in your life and review insurance and beneficiaries. Let’s be sure you are adequately covered. At the same time, it’s a good idea to update beneficiaries if the need has arisen.
 
4.      Tax loss deadline. You have until December 31 to harvest any tax losses and/or offset any capital gains. It may be advantageous to time sales in order to maximize tax benefits this year or next. We may also want to book gains and offset with any losses.
 
But be aware that short- and long-term capital gains are taxed at different rates, and don’t run up against the wash-sale rule (IRS Publication 550) that could disallow a capital loss.
 
A wash sale occurs when you sell a security at a loss and then purchase that same security or “substantially identical” securities within 30 days, either before or after the sale date (See Schwab: A Primer on Wash Sales).
 
5.      Required minimum distributions (RMDs) are minimum amounts the owner of most retirement account must withdraw annually.
 
Please note that the CARES Act eliminated the RMD requirement in 2020. But let’s go through RMD requirements at a high level.
 
The SECURE Act made major changes to RMD rules. If you reach age 70 ½ in 2020 or later you must take your first RMD by April 1 of the year after you reach 72 (IRS: Retirement Plan and IRA Required Minimum Distributions FAQs). Some plans may provide exceptions if you are still working (IRA FAQs: Required Minimum Distributions).
 
If you reached the age of 70½ in 2019 the prior rule applies.
 
For all subsequent years, including the year in which you were paid the first RMD by April 1, you must take the RMD by December 31.
 
While delaying the RMD until April 1 can cut your tax bite in the current year, please be aware that you’ll have two RMDs in the following year, which could bump you into a higher tax bracket.
 
The RMD rules apply to all employer sponsored retirement plans, including profit-sharing plans, 401(k) plans, 403(b) plans, and 457(b) plans. The RMD rules also apply to traditional IRAs and IRA-based plans such as SEPs, SARSEPs, and SIMPLE IRAs.
 
They do not apply to ROTH IRAs.
 
Don’t miss the deadline or you could be subject to a steep penalty.
 
6.      Contribute to a Roth IRA or traditional IRA. A Roth gives you the potential to earn tax-free growth (not just deferred tax-free growth) and allows for federal-tax free withdrawals if certain requirements are met.
 
You may also be eligible to contribute to a traditional IRA. Contributions may be fully or partially deductible, depending on your income and circumstances. Total contributions for both accounts cannot exceed the prescribed limit.
 
There are income limits, but if you qualify, the annual contribution limit for 2019, 2020, and 2021 is $6,000, or $7,000 if you’re age 50 or older.
 
You can contribute if you (or your spouse if filing jointly) have taxable compensation.
 
For 2020 and later, there is no age limit on making regular contributions to traditional or Roth IRAs.
 
For 2019, if you’re 70 ½ or older, you can't make a regular contribution to a traditional IRA. However, you can still contribute to a Roth IRA and make rollover contributions to a Roth or traditional IRA regardless of your age (IRS: Retirement Topics - IRA Contribution Limits).
 
You can make 2020 IRA contributions until April 15, 2021 (Note: statewide holidays can impact final date).
 
7.      College savings. A limited option called the Coverdell Education Savings Account (ESA) allows for a maximum contribution of $2,000. It must be made before the beneficiary turns 18. Contributions are not tax deductible.
 
Distributions are tax free if used for qualified education expenses. But beware of income limits (IRS: Coverdell Education Savings Accounts).
 
Any individual (including the designated beneficiary) can contribute to a Coverdell ESA if the individual's modified adjusted gross income for the year is less than $110,000. For individuals filing joint returns, that amount is $220,000.
 
A 529 plan allows for much higher contribution limits, and earnings are not subject to federal tax when used for the qualified education expenses of the designated beneficiary.
 
As with the Coverdell ESA, contributions are not tax deductible.
 
8.      Charitable giving. Whether it is cash, stocks or bonds, you can donate to your favorite charity by December 31, potentially offsetting any income. 
 
Did you know that you may qualify for what’s called a “qualified charitable distribution (QCD)” if you are over 70 ½ years old?
 
A QCD is an otherwise taxable distribution from an IRA or Inherited IRA that is paid directly from the IRA to a qualified charity (Fidelity: Donating to a charity using a qualified charitable distribution (QCD)).
 
A QCD may be counted toward your RMD, up to $100,000. If you file jointly, you and your spouse can make a $100,000 QCD from your own IRAs.  This becomes even more valuable in light of tax reform as the higher standard deduction may preclude you from itemizing.
 
You might also consider a donor-advised fund. Once the donation is made, you can generally realize immediate tax benefits, but it is up to the donor when the distribution to a qualified charity may be made.
 
I trust you’ve found these planning tips to be helpful. Please feel free to reach out if you have any questions, or check in with your tax advisor.

Cruising at 30,000 feet     

November was a standout month for stocks, as illustrated by Table 2. The major US stock market indexes recorded new highs, including the smaller-company Russell 2000 Index, which had stellar month.
Table 2: Key Index Returns
 
MTD %
YTD %

Dow Jones Industrial Average
11.8
3.9

NASDAQ Composite
11.8
36.0

S&P 500 Index
10.8
12.1

Russell 2000 Index
18.3
9.1

MSCI World ex-USA**
15.2
0.7

MSCI Emerging Markets**
9.2
8.1

Bloomberg Barclays US
Aggregate Bond TR
1.0
7.4

Source: Wall Street Journal, MSCI.com, MarketWatch, Morningstar
MTD returns: Oct 30, 2020—Nov 30, 2020
YTD returns: Dec 31, 2019— Nov 30, 2020
*Annualized
**in US dollars
 
In particular, the better-known Dow Jones Industrial Average eclipsed 30,000 for the first time ever. It has been an impressive rally from March’s low, when the economy was locked down, unemployment was soaring, and the economy was contracting at its fastest rate in history.
 
The DJIA was published in 1896, according to the Library of Congress—Business References.
 
The index first topped 100 in 1906, reached 1,000 by 1972, 10,000 by 1999, and 20,000 by 2017, according to LPL Research and data from the St. Louis Federal Reserve.
 
Landmarks have come at a faster pace given that the percentage gain to reach the next key marker declines. No one knows when we might hit 40,000, but a 33% advance is what’s needed to push the Dow to the next milestone.
 
In a broader context, what does this tell us? Stocks have a long-term upward bias, which is a piece of a well-diversified plan.
 
History repeats itself
 
Of course, markets don’t climb in a straight line. Volatility is inevitable. That goes without saying. March’s decline was short, but violent.
 
However, as we’ve repeatedly witnessed, market corrections and bear markets eventually come to an end, and major market indexes climb to new highs.
 
Catalysts during November
 
A bitter election is over. Talk of civil strife pre-election didn’t materialize. We have a degree of certainty where uncertainty once existed. The election removed a hurdle for investors, and the prospect we may have divided government also cheered investors.
 
In addition, the announcement of at least two vaccines for Covid-19 received a very warm welcome from investors.
 
Let’s back up a moment. So far, the economic recovery has been far more robust than nearly every economist has anticipated. Yet, problems remain.
 
With new vaccines, beaten-down sectors such as leisure, hospitality, travel, and the broad-based service sector have a fighting chance to recover next year.
 
Though we may see more volatility, the straightest line to your financial goals hasn’t changed. The financial plan is still your roadmap forward.
 
I hope you’ve found this review to be educational and helpful. Once again, before making any decisions that may impact your taxes, please feel free to confirm the numbers with your tax preparer.
 
Let me once again emphasize that it is my job to assist you. If you have any questions or would like to discuss any matters, please feel free to give me a call.
 
As always, I’m honored and humbled that you have given me the opportunity to serve as your financial advisor.
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7 Financial Planning Steps You Can Implement Today

11/17/2020

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The end of the year is fast approaching. As the calendar days march toward 2021, let’s keep in mind that there are several ideas we should review as you work to get your year-end financial house in order. 

While procrastination is tempting, remember how checking items off our ‘to-do’ list always gives us a sense of accomplishment.

Before we get started, the tips below are simply guidelines. Feel free to check with your tax advisor, as various nuances can crop up. As always, we would be happy to assist you

1. Health care open enrollment has begun. If you obtain your health insurance through the Health Insurance Marketplace, now is the time to purchase your health insurance for 2021.

This is the one time of year you can change your health insurance coverage or enroll.  If you don’t act by December 15, you will miss out on coverage for 2021 unless you qualify for a special enrollment period. Plans sold during open enrollment start January 1, 2021

2. On a similar note, open enrollment for Medicare has begun. You can sign up for Medicare health and drug plans between October 15  and December 7

Decide if your coverage will meet your needs during 2021. If you like what you had this year and it is still available next year, you won’t need to take any action.

3. Did you max out your retirement accounts? You can put up to $6,000 into an IRA in tax year 2020; $7,000 if you are 50 or older. You will have until Tax Day to make a 2020 tax-year contribution. The sooner you contribute, the longer your assets can grow tax-deferred

Contributions to your 401(k) are automatically deducted from each paycheck. Contributions for tax year 2020 must be made by the end of the year to count against 2020 income. 

The 401(k) contribution limit is $19,500 for 2020 and the catch-up limit is $6,500.
Your employer or plan administrator will let you know if you can adjust changes to your contribution this year. As we have said in the past, we strongly suggest that you contribute the minimum amount necessary to receive your entire employer’s match. It’s free money. Don’t leave free money on the table.

4. This year’s RMD waiver. If you are 72 (or turned 70½ before January 1, 2020), you are obligated to take a required minimum distribution (RMD) from your IRA. But this year is an exception.

Thanks to the CARES Act, the RMD is waived in 2020. This RMD waiver applies to everyone with a 401(k), IRA, 403(b) or 457(b) account. Owners of inherited IRAs may suspend RMDs for 2020, too.

5. If you are over 70½, you may be eligible to transfer up to $100,000 from your IRA to a charity without paying taxes on the distribution. This is called a qualified charitable distribution or QCD. Moreover, a QCD satisfies the RMD requirement as long as certain rules are met.

6. Let’s consider “harvesting” tax losses. Do you own stocks, exchanged-traded funds, or mutual funds that are below the purchase price? If so, you may sell by the end of the year and offset up to $3,000 in ordinary income or capital gains.

However, please be aware of the ‘wash sale’ rule and treatment of long-term and short-term losses. The rule defines a wash sale as one that occurs when an investor sells a security at a loss and, within 30 days before or after the sale, buys a "substantially identical" stock or security. If so, the IRS disallows the loss.

Short-term capital gains occur when an asset that is sold was held for one year or less. Short-term capital gains are taxed as ordinary income. Long-term gains are taxes at a more favorable rate.

7. Consider converting your traditional IRA to a Roth IRA. Depending on the outcome of the election, tax rates may rise next year. Therefore, converting a traditional IRA into a Roth IRA this year would require taxes to be paid at 2020’s rate, but it would enable the account holder to withdraw funds without paying federal taxes at retirement.

Whether or not tax rates rise next year, a Roth IRA is an excellent retirement vehicle.

Final thoughts

Let me remind you that these year-end financial planning steps are guidelines. One size does not fit all. The advice I recommend is tailored to your specific needs and goals.  I would be happy to discuss any questions that you may have. I'm  simply a phone call or email away.

I trust you’ve found this review to be helpful and educational. 

I've addressed various issues with you, and I have an open-door policy. If you have questions or concerns, let’s have a conversation. That’s what I’m here for.

As always, I’m honored and humbled that you have given me the opportunity to serve as your financial advisor.
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6 Steps That Put You on the Path to a Successful Retirement

11/17/2020

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Achieving your financial goals doesn’t just happen by itself. It takes a plan, implementing the plan, adhering to the plan, and when necessary, adjusting the plan

Simply put, failing to plan is planning to fail. Don’t plan to fail!

According to the Department of Labor...

● Only 40% of Americans have calculated how much they need to save for retirement.
● In 2018, almost 30% of private industry workers with access to a 401(k) plan or something similar did not participate.
● The average American spends roughly 20 years in retirement

Nearly everyone will receive Social Security, but Social Security won’t pay all the bills.

1. Regularly saving is critical. Once you begin an automatic payroll deduction into a retirement account, you won’t miss it. I promise. Let me tell you a short story about my own experience. When I first started saving in my company’s 401(k), my initial goal was to put 10% of pretax income in my 401(k).

But that seemed like a mighty big chunk of cash, at least in the beginning. So, I started with 4%, raised it to 7% then bumped it up to 10%. Taking baby steps was much easier than attempting to summit the peak in one leap.

I can’t overly emphasize the importance of capturing your entire company’s match. It’s free money. Don’t leave free cash with your employer.

2. Start as early as you can. It won’t be long before my daughter graduates from college. I'm sure, for her, retirement seems light years away. That's the case for many young people. 

But we all know the magic of compounding. The savings we socked away when we were younger has paid big dividends.

​
Let’s illustrate by way of example. Tom is 28 years old and plans to save $500/month or $6,000 per year until he retires at 65. With an annual return of 7% (assuming annual compounding), Tom will have amassed $962,024 when he turns 65 years old. Total contributions: $222,000.

Kate decides to put away the same amount. Kate is 22 years old and will save for 43 years. While her time to contribute is only an additional six years, her decision to start early is rewarded with a portfolio of $1,486,659. Total contributions: $258,000.

Because Kate started sooner, the additional $36,000 amounted to an additional $524,635! (Source: Investor.gov Investment Compound Calculator]] Calculations assume a tax-deferred account.)

3. What plan best fits my need? That question will depend on your personal circumstances. For many, your company’s 401(k) is tailor-made to save for retirement. This is especially true if your firm has a matching contribution. 

Whether to fund a traditional IRA or a Roth IRA depends on many factors, including your marginal tax rate today and expected rate in retirement.  

A Roth offers tax advantages if you qualify. Generally speaking, withdrawals from a Roth IRA are tax-free in retirement if you are age 59½ or older and have held the account for five years. But you won’t capture a tax deduction on contributions. 

Current tax law does not require minimum distributions, which can be a big advantage as you travel through retirement.

A Roth may also be advantageous if you do not believe your marginal tax rate will fall much in retirement or if you have outside assets that limit your need to withdraw on your retirement savings.

4. How much will I need at retirement? Again, much will depend on your individual circumstances. Your retirement expenses and lifestyle will dictate your portfolio needs.

An old rule of thumb that you’ll need 70% of pre-retirement income may not suffice for many. For example, will you still be paying on a mortgage after you retire? Or, do you plan to downsize, which may reduce or eliminate monthly mortgage outlays?

One approach some folks consider is the 4% rule. It’s relatively simple. Withdraw 4% of your total investments in the first year and adjust each year for inflation. Keep in mind, however, that this is a rigid rule. It assumes a 30-year time horizon and minimizes the risk of running out of money.

Depending on Social Security and any pension you may have, a more generous “allowance” from your savings may work too.

5. How do I find the right mix of investments? What worked when you were 30 years old probably isn’t appropriate today.

While my advice will vary from investor to investor, Ican offer broad guidelines. Furthermore, retirement may be broken into different stages, which may require adjustments to the plan.

Some investors decide its best to take a very conservative approach. You know, “I can’t lose what I’ve accumulated because I don’t have time to recoup losses.” But that has its drawbacks. For starters, you don’t want to outlast your money. Equities, which have historically offered more robust returns, may still be an important part of an investment strategy. 

Others may be swept up by what might be called “the current of the day.” Stocks have surged, which may encourage investors to load up on risk. However, a comprehensive financial plan helps remove the emotional component that can creep into decisions.

6. I’ve saved all my life. How do I begin withdrawing from my savings? It’s a complete shift in the paradigm. No longer are you socking away a percentage of each paycheck. Instead, you are living off your savings.

First, if you are required to take a minimum distribution from a tax deferred account, take it. 

Next, consider interest, dividends and capital gains distributions from taxable investments, which continues to tax shelter assets in retirement accounts.

If additional funds are needed, consider withdrawals from your IRA or other tax-deferred accounts. If you are in high tax bracket, you may consider pulling from your Roth. Those in a lower tax bracket could leave the Roth alone and take funds from their traditional IRA

Bottom line

Let me reiterate that many of these principles are simply guidelines. One size does not fit all. Plans we suggest are tailored to one’s specific needs and goals. If you have any questions, I would be happy share our recommendations. I'm simply a phone call or email away!

I trust you’ve found this review to be helpful and educational. 

I share a variety of issues with you, and I have an open-door policy. If you have questions or concerns, let’s have a conversation. That’s what I’m here for.

As always, I’m honored and humbled that you have given me the opportunity to serve as your financial advisor.
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The 2020 Vote and Your Finances

11/6/2020

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Election 2020 – a nail-biter

For the nation, 2020 has been one of the most difficult years in memory. We are grappling with Covid and its fallout, economic upheaval, riots, looting, wildfires, hurricanes, a presidential election, and a polarized electorate.

Despite this year’s difficulties, a strong economic recovery, record low interest rates, and an aggressive stance by the Federal Reserve have helped the major market indexes rebound from March’s steep sell-off.

But where do we go from here? What’s in store over the next four years? If we view the future through the lens of public or tax policy, visibility is extremely limited. Who will reside in the White House has yet to be determined.

If we narrow our scope and review the landscape through the lens of the investor and the market, I believe we can look to history for guidance and at least obtain some degree of clarity.

First, let me say this. No one has a crystal ball. Any stock market forecast that you may hear from analysts is simply an educated guess. They may get lucky for the right or the wrong reason. Or analysts might miss the mark by a wide margin. As we already know, even the smartest folks in the room don’t know the future.

Besides, we already know that consistently timing the market is nearly impossible.

However, over a longer period, we recognize that stocks have historically had an upward bias.

“Since 1932, the S&P 500 Index has gained an aggregate of 710% under Democratic presidents and 375% under Republican presidents. But staying invested the entire time would have earned 47,000%,” according to the Schwab Center for Financial Research

What’s that mean? If you shunned stocks when either a Republican or Democrat was president, you missed out on the lion’s share of the market’s gain.

If we take the last 12 years into consideration, a similar pattern emerges. Those who pulled out of stocks after the 2008 election because they were discouraged by the results lost out on a significant stock market rally over the ensuing eight-year period.

Anyone discouraged by the 2016 results also failed to participate in a significant stock market rally.

A disputed election could create short-term uncertainty. Yet, emotional decisions made outside the boundaries of a well-crafted financial plan have rarely been profitable over a longer period.

Longer term, the economic environment, Federal Reserve policy and interest rates, corporate profits, and inflation trends have historically had the biggest impact on the broader market.

Keeping perspective

The country will remain divided after the final tally is known. But let’s not forget that the U.S. remains the world’s largest economy; it has the deepest and most transparent capital markets, and innovation isn’t likely to end.

We will face challenges in the days and years ahead. We have always faced challenges. But we are resilient, and I continue to be optimistic.

I trust you’ve found this review to be helpful and educational. If you have questions or concerns, let’s have a conversation. That’s what I’m here for. As always, I’m honored and humbled that you have given me the opportunity to serve as your financial advisor.
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