This report features world capital market performance and a timeline of events for the past quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets.
The report also illustrates the impact of globally diversified portfolios and features a quarterly topic.
It’s open enrollment in the American workplace every fall, and employers will begin to pass out packets, forms, memos, hold meetings and launch apps for the benefits enrollment season. Navigating your benefits package can be overwhelming, and has a direct effect on your long-term savings. WE WANT TO HELP!
Below is your quick guide to navigating your benefits booklet from start to finish:
Health Insurance – pay close attention to the following variables to the health insurance options:
Tax advantaged accounts – beyond health coverage, these accounts allow you to save pre-tax dollars for ancillary health and other expenses.
Vision and Dental – Simply put…
Life and Disability – Important Voluntary Benefits!!!
401(k) – the likely #1 source of retirement savings, this benefit is the major player in your ability to retire.
The best way to make the most of open enrollment is to simply set aside adequate time to review all your options carefully and ask any questions you may have. Consult with your financial advisor, as these benefits choices will affect your long-term savings. To make the most of open enrollment, read the fine print, consider your family’s needs and make an educated, rather than a rash, decision. We are here to help you navigate these important choices. Please let us know if you would like a more detailed COMPLIMENTARY REVIEW of your benefits booklet!
Dimensional Founder David Booth shares his perspective on the limitations of market forecasting in this less than two minute video. Instead of enticing people to try to stock-pick, Dimensional wants to educate investors, with the over 90 years of data, on investing in capital markets.
September is LIFE INSURANCE AWARENESS MONTH so we are starting a drive to help clients and friends review and shop for the best and most appropriate coverage possible.
DID YOU KNOW…A recent survey found only 32% of Americans have life insurance.
How would you assess the financial loss your family would incur if you were to die today? Are you the sole provider for your family, or at least a significant provider to the family budget? If you had a money making machine in your home, would you insure it? Life insurance is not for you, it’s for your loved ones once you’re gone.
This calculator provides only a rough estimate of your human life value, which can factor into how much insurance you need.
After calculating a typical lifetime income based on your specific circumstances, you’ll see a final number that gives an approximate measure of your net contribution to your family—your human life value. This should not be considered a comprehensive assessment, as it only takes generalities into account. Still, given the limited information you’re providing, we believe it is the best estimate available.
Looking at the stock market over the past 20 years, you might think of Charles Dickens: It was the best of times—and the worst. But while the 2000s and 2010s have differed starkly in performance, collectively they have reinforced investing lessons on patience and discipline.
This piece from our partner, Dimensional Funds, discusses the well supported thought that maintaining patience and discipline, through the bad times and the good, puts investors in position to increase the likelihood of long‑term success.
…or check it out below:
U.S. equities stumbled in August, buffeted by economic implications of an inverted yield curve and a possible trade war with China. Large-caps declined, with the S&P 500® down 2%, while the S&P MidCap 400® and S&P SmallCap 600® performed even worse, down 4% and 5%, respectively.
International markets also struggled, with the S&P Developed Ex-U.S. and the S&P Emerging BMI down 3% and 4%, respectively. The Far East and Latin America were particularly weak.
This 1 minute video says it all! Nobel laureate Eugene Fama provides perspective for long-term investors on why they shouldn’t pay a lot of attention to short-term results.
The most free way of thinking about investing is understanding what the possibilities are…good or bad.
ONE SIZE DOES NOT FIT ALL
Higher initial withdrawal rates or overly conservative portfolios can put your retirement at risk. But setting it too low can lead to sacrifices in retirement. You may want to consider a dynamic approach to spending.
Setting an initial withdrawal rate and an appropriate portfolio allocation is necessary to sustain 30+ years of spending in retirement. The chart on the left illustrates the effects of different initial withdrawal rates assuming a 40% equity / 60% bond allocation. The 4% initial withdrawal rate—a general rule of thumb introduced in 1994, which adjusts the initial withdrawal amount for inflation over time to preserve purchasing power—is valid as is 5% but the 6% initial withdrawal rate proves not as successful and may put retirement at risk. The right chart illustrates the 4% withdrawal rate, but assuming various portfolio allocations. The more conservative the investor, the more difficult it may be to sustain the 4% rule over long periods of time. Consider a more dynamic approach to ensure that you efficiently use your savings to support your lifestyle while ensuring that you don’t run out of assets too quickly.
In this short video, Nobel laureate Eugene Fama discusses how financial markets work, what fuels innovation, and the upside and downside of risk.
