When the Present Obscures the Future

We enter 2019 with a lot of volatility in the stock market, just as we did in January 2009. Presently, the world economy appears to be slowing down. But the current situation is nothing like the economic jolt that occurred 10 years ago. We've been experiencing a recovery since then that was hard to anticipate at the time.

Market downturns happen. While acknowledging the pain that losses may cause, the current situation can be viewed as a "bright, shiny object" that prevents us from focusing on our long-term investment goals. Diversification can help us ride out the storm in the interim. Take a listen.

Musical Treat

Here's a favorite from the Moody Blues "Days of Future Past" -- a live version of "Tuesday Afternoon." The year 1970 clearly had a different look to it.

How Diversification of Your Portfolio Works in Practice

The benefits of diversifying your portfolio may be better understood by highlighting its practical application. A client of mine wanted to withdraw a decent amount of money from her account for home repairs. The client needed the cash immediately, which was not fortuitous given the drop in the stock market. Instead of selling stock mutual funds while the market was down, and locking in the recent losses, the client tapped into her bond mutual funds that have held up nicely.

Continue Reading

Incredibly Fascinating Notes From The Schwab Conference

I recently attended the annual Schwab conference for financial advisors. The top-notch speakers included former Federal Reserve Chair Janet Yellen and historian Niall Ferguson as well as a variety of investment and industry experts. The summary below highlights some of the more interesting ideas presented. Please read to the end to find out which topic was not mentioned, even though it was the darling of last year's event.

Continue Reading

Reminder: Stocks Go Up Because They Go Down

While the stock market is poised to start the day on a positive note, the last couple of weeks have been a bracing reminder that stocks do not rise in a linear fashion. They can go down.

Continue Reading

Smarter Charitable Gifting Under the New Tax Law

The ability to receive a tax break from charitable giving has been significantly impinged upon by the new tax law that became effective this year. The good news, though, is that tactics exist which will allow you to preserve your charitable tax deductions in certain situations. I've provided a non-technical overview below and am happy to discuss it with you in greater detail at your convenience.

The new tax law has increased a taxpayer's standard deduction and, in turn, lowered a number of itemized deductions. Fewer than 10% of individuals are expected to have itemized deductions in 2018 that exceed the standard deduction. When itemized deductions are unavailable, the tax benefit of charitable giving is lost.

Continue Reading

More Articles ...