News & Insights

Planning Newsletter – Apr 2017

by Financial Alternatives on 7/13/2017

  • Giving evokes gratitude, improves our health and makes us happier.
  • Giving increases social connection, cooperation and can be contagious.
  • From a financial point of view, effective giving maximizes your possible tax deductions.
  • Personal Charitable Gift Funds make giving appreciated investments simple and easy.
  • Giving to charity from your IRA has significant tax benefits.
  • Giving appreciated stock can be a tax efficient way to give money to family members.
  • UTMA and 529 accounts offer tax advantaged ways to pay college expenses and provide gifts to children and young adults.

posted in NewslettersPlanning

Market Review – Q4 2016

by Financial Alternatives on 2/7/2017

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  • Looking at broad market indices, the US outperformed both non-US developed and emerging markets during the quarter.
  • US and non-US real estate investment trusts (REITs) recorded negative returns and lagged the US and non-US equity markets.
  • Small caps outperformed large caps in the US and developed markets outside the US.

posted in InvestingNewsletters

Investing Newsletter – Jan 2017

by Financial Alternatives on 2/7/2017

Newsletter-Cover-Image-Jan2017 (00083160xAE0F3)

  • Stocks and bonds were volatile in 2016, but overall it was a decent year for patient investors. Intermediate-term bonds performed in line with shorter term bonds in three of four rising interest rate environments – so no changes are planned in these assets.
  • First Trust Deeds continue to provide a high interest yield and should perform well in an increasing rate environment.
  • New all-time highs in equity markets have historically not been useful predictors of future returns.
  • It is impossible to time the market consistently and profitably.
  • Ensure you are comfortable with the risk in your portfolio so you don’t panic and sell your investments during a severe market downturn.

posted in InvestingNewsletters

Market Review – Q3 2016

by Financial Alternatives on 10/12/2016

Index Performance

  • Looking at broad market indices, emerging markets outperformed all other equity markets during the quarter.
  • The US equity market lagged developed markets outside the US.
  • The Bloomberg Commodity Index Total Return posted a -3.86% return during the quarter.
  • US real estate investment trusts (REITs) recorded negative absolute returns and lagged the US equity market.

posted in InvestingNewsletters

Planning Newsletter – Oct 2016

by Financial Alternatives on 10/12/2016

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  • Emotions are running high this election season and investors are nervous about how the election will affect their investments.
  • Tumultuous events have been a constant theme for presidential elections throughout history.
  • In 17 of 18 past presidential elections, a hypothetical $10,000 investment in the S&P 500 made at the beginning of each election year would have gained value 10 years later.
  • Long-term investment success has depended more on the strength of the US economy than on which party occupies the White House during any particular four-year period.
  • Beliefs about which political party is best for the markets may encourage you to vote, but shouldn’t discourage you from investing.

posted in NewslettersPlanning

Market Review – Q2 2016

by Financial Alternatives on 7/22/2016

  • Looking at broad market indices, the US outperformed developed markets outside the US and emerging markets.
  • US REITs had very strong positive returns for the quarter, outperforming the broad equity market.
  • Commodities were broadly positive during the quarter. The Bloomberg Commodity Index Total Return gained 12.78%.

posted in InvestingNewsletters

Investing Newsletter – Jul 2016

by Financial Alternatives on 7/14/2016

  • Despite a historic US stock price drop at the start of the year and the recent Brexit vote, most asset classes showed positive returns for the first half of 2016
  • In volatile markets, it’s important to remind yourself of what you really own when you own a diversified collection of stocks as part of your portfolio.
  • Ideally, a client of ours will have underlying stock ownership in 5,500 – 11,500 companies from all over the world.
  • These companies have millions of employees that work diligently day after day and year after year in an effort to increase the earnings of their companies.
  • In aggregate, these companies make a profit and part of this is paid out to shareholders in the form of dividends.
  • Ignoring the often sensationalist day to day financial news and focusing on the progress mankind continues to make can help you maintain a positive long term focus.

posted in InvestingNewsletters

Market Review – Q1 2016

by Financial Alternatives on 4/14/2016

  • Looking at broad market indices, emerging markets outperformed developed markets, including the US.
  • Global REITs recorded the highest returns.
  • Commodities were mixed during the first quarter. The Bloomberg Commodity Index Total Return gained 0.42%. Precious metals led the index with gold returning 16.40% and silver returning 11.87%.

posted in InvestingNewsletters

Planning Newsletter – Apr 2016

by Financial Alternatives on 4/12/2016

  • One early retirement study noted that a withdrawal rate of 4% is relatively safe.
  • Many researchers have evaluated withdrawal rates and related issues since then – proposing adjustments to the traditional 4% rule.
  • One such proposal, the Target Percentage Adjustment (TPA) suggests modifying your withdrawals year by year.
  • Being flexible in the face of market downturns and inflation can allow you to increase your withdrawals in retirement.
  • Be sure to know what your withdrawal rate is from year to year.

posted in NewslettersPlanning

Market Review – Q4 2015

by Financial Alternatives on 1/17/2016

  • In a turnaround from the previous quarter, the US equity market recorded positive performance.
  • Looking at broad market indices, the US equity market again outperformed both developed ex US and emerging markets during the quarter.
  • In a repeat from the third quarter, US REITs recorded the highest returns, outperforming equity markets.

posted in InvestingNewsletters

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Disclaimer

Posts are general in nature and do not constitute the rendering of legal, investment, accounting or other professional advice.