2016 began with a thud and ended with a bang. After one of the worst-ever starts to a year, U.S. stocks managed to rebound and ultimately finish the year with solid gains. Much of the rise came in the final few weeks of the year, following the surprising results of the U.S. presidential election. Indeed, there has been an abrupt change in market sentiment, and asset prices have largely taken their cues from a recalibration of economic expectations in the wake of the surprising Trump victory and Republican sweep of Congress.
Now that we’ve started the new year, this is a great time to take a fresh look at your financial picture and update things that may be stale or outdated. To help you do that, here are eight ways to improve your financial health in 2017.
We feel fortunate at Pinnacle to work with dedicated and talented colleagues who guide our clients in achieving their financial and life goals. Our work is a tremendous responsibility, but a rewarding one.
Do the terms “upward sloping equity glide paths” and “bond tents” seem unfamiliar to you? They are terms that financial planning researchers are using to describe investment strategies designed to mitigate “sequence risk,” the risk that your portfolio returns will occur in the wrong order, thereby negatively impacting the amount of income your retirement account will generate. Pinnacle’s Director of Wealth Management, Michael Kitces, writes an interesting article on the subject in this month’s OnWallStreet, titled, “Avoid the Retirement Danger Zone.” (You can read the article by clicking here.) Since most Pinnacle clients fall in the age range of 50 to 70, where pre-retirement and early post-retirement risk is the highest, and since the recent election has clients questioning recent portfolio volatility (in this case, to the upside), it seems a good time to revisit the question of whether active portfolio management still makes sense.
Investment News has just named Pinnacle Wealth Manager and Partner Deb Kriebel to its 2016 Women to Watch list. The list is comprised of…
…female financial advisers and industry executives who are distinguished leaders at their firms. These women have advanced the business of providing advice through their leadership, passion, creativity and willingness to help other women along the way.
We’re very proud of Deb and pleased that others recognize her hard work on behalf of her clients and for women throughout the financial industry.
You can read more about the recognition here.
The election result came as a surprise to many and caused some uncertainty in the markets overnight. Many investors are wondering how all of this impacts their portfolios and if they should be making any changes.
The main reason people renounce their U.S. citizenship is to take advantage of lower tax burdens abroad, but the growing unease with U.S. politics might also be contributing to a record number of Americans who are renouncing their citizenship and surrendering their passports. While we don’t recommend this to our clients, we have received questions about the financial pros and cons of leaving behind one’s U.S. citizenship. In the interest of keeping you fully informed, we sat down with Raoul Rodriguez, a Pinnacle Wealth Manager and resident expert on expatriate issues, to discuss the question.
The third quarter was a fairly placid one for investors, though there was major diversity in return profiles depending on what asset class, sector, or country one was invested in. In the U.S., the leading sector was clearly technology stocks, while elsewhere, Japan, Emerging Markets, and European stocks also had positive returns for the quarter. Within fixed income, the broad bond market indices slowed down and posted flat returns, though credit related sectors performed well along with other risk assets. Commodities brought up the rear in the third quarter, as they cooled off from their torrid run in the first half of the year. Summing it up, returns by asset class were mixed, but most investors in globally diversified portfolios enjoyed modest gains during the period.
With the third quarter in the books, the focus now turns to assessing prospects for the fourth quarter and beyond.
In late 2015, new rules were established for the college financial aid application process. With these rules becoming effective this month, we should assess the impact they will have, particularly for families seeking to fund their children’s education.
On September 19, 2016, S&P Dow Jones and MSCI, Inc. added a sector for Real Estate. Up to this point, REITs have traditionally been considered a sub-industry and part of the Financial sector, but as of the market close on August 31, 2016 (and effective September 19, 2016), they were split from the Financial sector and moved to their own sector (with the exception of Mortgage REITs). This should not be a surprise for investors, as the change had been announced by index providers, S&P Dow Jones Indices and MSCI, back in March 2015.