In December 2017 the Tax Cuts and Jobs Act (TCJA) was passed, making substantial changes in the tax code, including increased gift and estate tax exclusions and modifications to tax brackets. However, many changes made under the TCJA are set… Read More >
Reflections on Markets During the Pandemic – 2Q 2020
While following events closely during the second quarter of 2020 when our society shut down for almost a month and then started reopening, a few important investment themes emerged. I. S&P 500 Recovered but Rates Stayed Low. While the equity… Read More >
Making the Most of Year-End Giving
As the year comes to a close, you may be thinking of making financial gifts in addition to trying to buy a relevant gift for the picky tween in your life. Here are a few guidelines for both charitable gifts… Read More >
The Proposed SECURE Act and Your Retirement
Earlier this summer, the House of Representatives passed the SECURE Act (“Setting Every Community Up for Retirement Enhancement”) with bipartisan support and a nearly unanimous vote. As of the writing of this commentary, it stalled in the Senate, but reports… Read More >
Planning for Charitable Giving
According to the National Philanthropic Trust,[1] approximately 90% of high net worth families give to charity, and in 2017, charitable giving accounted for 2.1% of gross domestic product. American families have historically given more money to charity than those in… Read More >
Benefits of a Donor Advised Fund
Each year around the end of March, I spend at least half a day tracking down my charitable contribution receipts in the hope of increasing my tax refund with a charitable deduction. There are plenty of tools to help me… Read More >
Estimating Bond Returns
Many people find the performance of bonds, and particularly bond funds, confusing. We know that if we buy a bond for $100 that matures in 5 years and pays a $5 coupon (or 5% yield), then we will earn 5%… Read More >
Should I Check the Per Stirpes Box?
Many people save for retirement in a defined-contribution retirement plan (like a 401k) or an individual retirement account (traditional or Roth IRA). It is important to designate beneficiaries for accounts. The forms, often seemingly simple to fill out, have hidden… Read More >
Make Small Cap Stocks Great Again?
The stock markets in the days immediately following the recent US presidential election were surprising to many in a number of ways. US small company stocks experienced higher returns than US large company stocks. This period helps illustrate how different… Read More >
Do Investment Consultants Pick Winners?
Investors hire advisors for a number of reasons, but the primary reason is usually that they want help choosing investments. Individuals typically rely on brokers or investment advisors. Institutions are served by “investment consultants” who specialize in helping them manage… Read More >
Thoughts on Brexit
Last Thursday, June 23, citizens of the United Kingdom voted to leave the European Union. On Friday, June 24, equity markets worldwide lost over $2 trillion dollars with percentage declines outside of Great Britain generally exceeding those on the London… Read More >
Jim White Examines The Big Short
After being asked several times my opinion on The Big Short (“Short” for short in this writing), a few days ago I went to see the movie. Short is based on the book of the same name by Michael Lewis,… Read More >
The Role of Bonds in a Portfolio
When markets become more volatile, it is a good time to reflect on the role of bonds in a portfolio. While we do not recommend reacting to short-term changes in market movement, we do think it is a good time… Read More >
Remember the Lost Decade
Five years ago, the financial press was talking about the “lost decade.” The S&P 500 had not earned an investor any money, even when including dividends, for the first decade of this century (ending December 2009). While 2009 saw stocks… Read More >
Projecting Long Term Returns
One of our fundamental responsibilities as an investment manager is to build sound investment portfolios. The objective of our portfolios is to meet the fundamental return needs of our clients while taking an acceptable level of risk. Inevitably, this requires… Read More >
Have the Markets Entered a Danger Zone?
Robert Schiller, author of “Irrational Exuberance” and recent Nobel Prize winner, has been credited with predicting the last two market crashes. His preferred metric of value for the stock market is the “Cyclically Adjusted Price Earnings (CAPE)” ratio. He makes… Read More >
Projecting 10 Year Portfolio Returns
Answering the following questions requires a view on future stock and bond portfolio returns: “How much can an endowment disburse and maintain its value?” “How much do I need to save for retirement?” “What is the likelihood of doubling my… Read More >
Should We Rebalance Our Balanced Portfolios?
In our last commentary (IMC 13), we looked at rebalancing an all stock portfolio. (If you didn’t read this post, you might want to review it here before continuing.) We looked at the case of an account that only included… Read More >
