There are many reasons why professional advice may be best for managing your financial situation. Here's the No. 7 reason.
Modern Portfolio Theory, or MPT, is a framework for investing. It provides part of the intellectual underpinning of our firm's approach to managing investments. So, it is important to explain it periodically.
The Standard & Poor's stock index dropped 2% yesterday and U.S. Secretary of the Treasury Janet Yellen, testifying before the Senate Banking Committee, warned of "catastrophic" consequences if Congress failed to come to an agreement on the debt ceiling by October 18. Meanwhile, a showdown is looming in Congress over raising the United States government's debt limit and how much to spend to improve the nation's infrastructure, as well as the size of the budget for the approaching fiscal year ending September 30, 2022.
There's a new paradigm in valuing stocks and bonds. The change in the relative value of stocks versus bonds – the two primary investments in a diversified portfolio -- has major implications for strategic retirement investors. Here's what's happening.
The commemoration of 9/11 and pullout of U.S. troops from Afghanistan marked the passing of 20 difficult years. Historians will debate the lessons to be drawn from this tumultuous time for decades to come. For investors, however, a crucial investment lesson to be drawn is clear: In the past 20 years, amid the tumult and difficulties, broadly diversifying paid off, and quite convincingly at that!
An income tax hike is widely expected, but the important question is how it would affect your personal situation. Here’s help in understanding and planning for the expected change in tax brackets.
Year-end tax planning is more important than usual because it occurs concurrently with a turning point in U.S. tax policy. For the first time in 40 years, taxes on income and wealth transfers are headed higher.
Tax law and estate planning might bore you to death, but this brief tip could make a life-changing financial difference to your surviving spouse, and other loved ones, including disabled and chronically ill family or friends, as well any minor children in your life.
Here's a retirement planning alert built for current financial economic circumstances - an explanation of the current situation followed by a timely and high-value retirement investing tip.
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As S&P 500 Closes At All-Time High Again, It’s A Great Time For A Crisis Plan
Published Wednesday, August 4, 2021 at: 4:12 PM EDT
For the five years through June 30, U.S. stocks were the No. 1 performing investment of major securities indexes! The S&P 500 index more than doubled in value, despite the pandemic! Remarkably, U.S. stocks were No. 1, not only for this five-year period through June 30, 2021, but for the past FIVE five-year periods ended June 30! And today the S&P 500 closed at a record high!
This is precisely the right time to ask yourself: What could go wrong?
The stock market has been treating American investors to outsized gains year after year, and the party could continue -- the good times could roll for another five years or get even better! As professionals, however, we believe it’s wise to plan for a stock market slump, to plan what you would do if things go wrong with your business, your job, or God-forbid, your health.
With the stock market and housing values sharply higher than a year ago, your net worth may be higher than ever, making this precisely the right moment to write a crisis plan. Your worst nightmare may be running out of money when you’re older, or who will care for a child with special needs after you’re gone. Or perhaps you’ve been prone to selling stocks after market plunges?
Everyone has their own personal reactions to life’s risks, and your financial nightmare is personal to you because it’s based on your experiences and personality characteristics. Even if your financial future is looking bright at this moment, writing your crisis plan now, rather than in the throes of a crisis, can help ensure you will continue to sleep soundly even if your worst financial nightmare were to come true.
Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances. The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions. This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.
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