Investments
20 Second Advisor: Even most pros can’t beat the market
In any given year, it’s nearly impossible to predict what the market will do (case in point: 2020). Furthermore, it’s incredibly difficult for an individual to put together a portfolio that generates market-beating returns for a given year, much less consistently over time. According to new data from S&P Dow Jones Indices, 60.3% of large-cap equity fund…
Read More20 Second Advisor: Qualified Charitable Distribution
If you are over 70, you likely must take a distribution from your IRA each year. This is a taxable distribution so it increases your taxable income. Alternatively, you are allowed to divert some or all of your required IRA distribution to a qualified charity. If you do this, it’s not recognized as income and,…
Read More20 Second Advisor: The Bumpy Road to the Market’s Long-Term Average
You often hear that the stock market has an average return of around 10%. That’s true – but the average return does NOT mean you’ll likely earn a 10% return in any given year. Here are some mind-blowing facts: From 1926-2020, the S&P 500 had an average return of about 10%, BUT annual returns came…
Read More20 Second Advisor: 2020 Market Review
The year 2020 proved to be one of the most tumultuous in modern history, marked by a number of developments that were historically unprecedented. But the year also demonstrated the resilience of people, institutions, and financial markets. For investors, the year was characterized by sharp swings for stocks. March saw the S&P 500 decline 33.79%…
Read More20 Second Advisor: 2021 Retirement Contributions
How much will you save towards retirement in 2021? Do you know how much you should be saving? Here are the maximum amounts you can save into the most commonly used retirement plans in 2021: 401k Pre-tax or ROTH – $19,500 401k Catch-up if over 50 – $6,500 SIMPLE IRA – $13,500 SIMPLE IRA Catch-up…
Read More20 Second Advisor: Don’t swing for the fences.
I grew up playing baseball, and it was common advice that I needed to hear, “Don’t swing for the fences.” When trying to hit a homerun, you end up taking your eye off the ball, and usually miss hitting the ball entirely. In investing, there is similar wisdom. Yes, it’s alluring to find an investment…
Read More20 Second Advisor: Voting & Stock Advice?!
We have covered this topic extensively leading up the the election, but here’s one more viewpoint. Some investors may consider making changes (sometimes drastic) to their investments in the month before or after an election. There is an idea that if Trump wins “ABC” will happen and if Biden wins “XYZ” will occur. In reality,…
Read More20 Second Advisor: What history tells us in an election year
If you are concerned about your portfolio leading up to this election, you are not alone. But I am here to bring good news. Since 1926, there have been 23 presidential elections. Out of those 23 elections, we have had 19 positive years (as measured by the S&P 500 index) and only 4 negative years.…
Read More20 Second Advisor: Jelly Beans & Performance
Some clients check their portfolios weekly. Others might only check it once or twice a year. Whenever you look at your performance, you’re really asking yourself: “How I am doing RELATIVE to some other benchmark?“ For example, if the Dow Jones Industrial Average is up 10% and your portfolio is also up 10%, you would…
Read More20 Second Advisor: Is the Stock Market Divorced from Economic Reality?
Below is an excerpt from an article I thoroughly enjoyed reading. It captures the thoughts and emotions of several clients I’ve spoken to recently, and how/why the market can be so high right now amid all the uncertainty. From its record high on February 19, 2020 the S&P 500 Index1 fell 33.79% in less than 5…
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