The end of the year is great time for reflection and relaxation, particularly during the holiday season. It’s also a great time to do a little bit of planning. In this article, we offer our ideas for high impact planning you can do in the coming weeks, spanning estate planning, investing, taxes, and more. 

Stocks opened the third quarter on a volatile note but rallied to finish the quarter in positive territory, with gains across the size and style spectrum. The S&P 500 index finished the third quarter with a +5.9% gain and is up over +30% in the past twelve months.

The “mega backdoor” Roth IRA strategy allows some investors to contribute significantly more to a Roth IRA and/or Roth 401(k) than IRS contribution limits currently allow.

Over time, the stock market responds more to long-term earnings trends and broad-based economic growth, not to changes in political leadership. Politicians come and go, but the desire to grow, innovate, and pursue profit remains a constant.   

Tax planning is not everyone’s—or maybe anyone’s—favorite thing to do. But I would argue that when it comes to long-term wealth accumulation, tax planning and tax mitigation strategies are right up there with generating income during working years and earning compounding investment returns over long stretches of time.

The stock market is flirting with all-time highs, and that has some investors worried. But the data tell us that all-time highs in the stock market tend to be followed by more all-time highs – a lot more of them.

In our view, hotter-than-expected economic growth drove bond yields higher—and stocks lower—for the quarter.

Top Hat plans are designed for highly-compensated executives, giving them the opportunity to accumulate enough savings to replace a significant portion of their pre-retirement income.

Current tax law allows executives to defer up to 100% of their compensation without paying income tax on that money until it is withdrawn, generally in retirement. Much like money in a 401(k) plan, the assets can benefit from tax-free growth

The recently passed SECURE 2.0 Act now provides businesses with thousands of dollars in new tax credits for setting up 401(k) plans, and they can also claim $1,000 tax credit per employee for employer matches.

Learn more about all of the new tax credits available for 401(k) plans, and other ways businesses can use 401(k)s to help employees and the business thrive.

The U.S. economy continued to grow in the first half of 2023, despite forecasts indicating otherwise. The bright spot looking forward is that monetary policy is already tight, which we think signals that the peak in the interest rate cycle is likely very close – which is good for risk assets looking ahead.

With a clearer picture emerging of what exactly took place in the regional banking sector, we now view the bank stress as more of a crisis of mismanagement than a symptom of systemic risk lurking throughout the banking sector. As Jamie Dimon wrote in his annual shareholder letter, “many of the risks were hiding in plain sight.”

Most bank failures historically have been caused by credit risk issues, but SIVB and SBNY were unique cases where mismanagement of interest rate risk—combined with a run on deposits—deemed both banks insolvent in just a matter of days. As we explain in this post, these two banks were largely in a league of their own in terms of their exposure to risk, which is one of the reasons we do not think financial contagion is likely.

2022 was a year beset by challenges, led by the Russia-Ukraine war, global supply chain disruptions, high inflation, rising interest rates across much of the developed world, and pronounced economic weakness in Europe and China.

The third quarter repeated a familiar pattern we’ve seen in 2022, where every time the markets have tried to price-in a peak in the interest rate cycle, some combination of strong labor market data, stubbornly high inflation, and central bank policy has pulled it back.

The cost of attending a four-year college in the United States is high, but the financial benefit of a bachelor’s degree arguably outweighs the cost. Fortunately, families have several options to prepare for the financial cost of higher education, and many of them offer tax breaks and benefits that are worth taking advantage of.

Downside volatility has been pronounced. The focus now, in our view, should be ensuring participation in the stock market’s recovery once it takes hold, which will assuredly be before economic data confirms the U.S. economy is in good shape.

The stock market’s ups-and-downs can be unsettling, and we empathize with the difficulties in keeping a steady hand—especially when the economy and markets feel as though they’re in disarray. But we also believe now is a time to remain patient, and to remember that short-term volatility is the price all investors pay for attractive long-term returns.

Investors are weighing a laundry list of unknowns in the current environment—how quickly the Fed will raise rates, whether and when inflation will moderate, how long Russia’s war will continue, whether the war escalates and turns global, and whether the pandemic is truly over. Our base assumption is that equity market volatility will continue as these questions continue to weigh on sentiment.

2021 was quite an unusual year for the world, but not necessarily for the capital markets. U.S. stocks strongly outperformed foreign shares, with every sector in the S&P 500 finishing up +15% or more. We do not believe all areas of the market will do well in 2022, however. Rising rates are likely to result in multiple compression in certain areas of the market.

The holiday season means getting to spend more time with family and loved ones. Holidays also offer a time for reflection, and sometimes can inspire its spirit of giving. It’s a time to be grateful for what we have, while also looking for ways to help those around us. This post explores giving strategies.