Thought Leadership Resource Center
On July 10th, 2020 John Sleeting took part in an interview conducted by the Family Office Club as a part of their ongoing Investor Mandate Interview Series. Click below to watch.
Read MoreRetirement savers were given the opportunity to forgo Required Minimum Distributions (RMD) for 2020 as part of the CARES Act, which was passed into law in March of 2020 in response to the COVID-19 pandemic. This RMD relief applies to all types of IRAs (except Roth IRAs which do not require RMDs in the first place), 401(k), 403(b) and even includes inherited accounts. This benefit allows account holders to reduce their taxable income for calendar year 2020 and to preserve the tax deferred growth offered by these accounts for a bit longer. Of course, those that need the funds for living expenses are permitted to still take distributions as normal.
Read MoreTo say that we are living in “interesting times” would not do justice to what we all have experienced since the COVID-19 outbreak made headlines in February. What began as a serious health crisis quickly turned into an economic collapse as government leaders issued lockdown orders and essentially brought large parts of our economy to a standstill. Never before has the United States shut off its economy by proclamation. Interesting times indeed!!
Read MoreOver the last month or so, the Coronavirus outbreak has reshaped our world. As we come to terms with our new normal, there are still many financial planning considerations that need to be addressed within this new context. One of those topics for individuals with children is College Planning. While Universities across the nation have either shut down intermittently or shifted to online coursework, the question is how this change will impact your plan. While there are College Planning related legislative changes that have been enacted to soften the blow of this market downturn, a large factor to consider is the timeline of when funds are needed. This post will explain the coronavirus effects on College Planning by period of time until college begins.
Read MoreThe CARES Act rule changes giving easier access to retirement funds will certainly act as a much needed lifeline for many Americans in desperate need. For those that are not in dire need for short term funding, however, taking advantage of the ability to access retirement funds without penalty can be expected to have tremendous negative effects on a retirement savings plan. It would amount to shifting a race car into reverse during a race.
Investing in turbulent markets is much like Driving on Ice. The feeling of loss of control is scary, and our brains don’t like that feeling. Therefore, it prompts us to remove that feeling through action. Unfortunately, just like when our car is sliding on ice, our initial financial reactions are often the wrong ones. One such example is the desire to suspend contributions to retirement savings during down markets.
Strenuous market environments often shine a light on one of the more challenging aspects of personal finance, cash management. How much cash is too much? How much is not enough? If you have excess cash, where should it go? If the answer is financial markets, when is the right time to do that? These questions are universal whether you are at the start of your career and just beginning your accumulation plan or a seasoned saver near the end of your career, and everyone in between. Let’s review these in sequence.
In order to combat the many economic implications of the coronavirus pandemic, a monumental emergency funding bill has been passed. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) aims to provide relief to American citizens and businesses through a variety of financial measures. One particular focus of the bill is on how Americans can use their retirement accounts during a potential time of need. This post will focus on 3 measures related to IRA accounts; Required Minimum Distributions, early distributions, and special tax treatment of distributions. The first of the provisions apply to all Americans while the second and third apply only to those directly affected by the virus (defined below.)
Read MoreFor many investors, Monday felt like a slap in the face. Following news over the weekend of a oil price war between Saudi Arabia and Russia, the S&P500 traded down over 7% at the open. A move so swift, it actually triggered the 1st circuit breaker measure - a system put in place in 2013 to prevent these types of flash crashes. Its a strange day when almost everyone can be heard discussing the markets. In the gym, in the line at the grocery store, in the lobby of my building, yesterday was one of those days.
Read MoreThe coronavirus (COVID 19) breakout has been a fascinating real life case study of behavioral finance and the effect it can have on investors, particularly those operating outside of a trusted advisor relationship. Behavioral finance is the field of study that looks at investor psychology as it relates to money. It reveals the many pitfalls and fallacies the brain is vulnerable to when dealing with decisions specifically relating to money or investments. It is no secret that people, in general, are not great at investing. Emotions can be powerful and counter productive. Separating one’s feelings from the facts is a high hurdle for many Americans, leading many to doing the exact wrong things at the worst times.
Read MoreWe at Clearwater Capital Partners have often written about the importance of “facts over feelings” when it comes to navigating periods of market volatility and uncertainty. The current breakout of the novel coronavirus has produced a significant spike in feelings (specifically “fear”). Now is the time to keep emotions in check as we attempt to ascertain the “facts” connected to this difficult situation. We believe one’s reaction to higher volatility will be far more determinative to long-term progress than the volatility itself.
Read MoreWe have began to receive calls from clients wanting to know how their portfolios are positioned for the ongoing Coronavirus outbreak. It’s a fair question, anytime there are headlines making waves like this has it is an important pause point to make sure all your bases are covered.
Read MoreIf you are someone who has been thinking about buying a new car in the near future, then you may want to consider doing so before the new year.
On June 28th Gov J.B Pritzker signed Bill 690 which quietly passed new tax laws that will affect Illinois car buyers. Beginning January 1st, 2020 the value of any trade in vehicle will be capped at $10k in calculating the tax on the transaction.
Read MoreFor those thinking about relocating to a new city or state during their retirement years, there are several important factors to consider prior to making this decision.
For many, being in a warmer climate during the winter months while still maintaining proximity to family and friends is a major priority. For others, living where there is accessibility to quality health care facilities, while being able to enjoy cultural and entertainment options such as museums and concerts in a big city, or outdoor activities such as golf and walks on a beach, is important.
Read MoreAs we approach year-end, investors need to be aware of upcoming capital gain distributions. In addition to realizing capital gains through selling securities that have appreciated, investors can be blindsided when their funds distribute capital gains to their investment account. These gain distributions will add to the investors tax liability unless the funds are held in a tax deferred account such as an IRA.
Read MoreDisclosures:
THIS COMMENTARY HAS BEEN PREPARED BY CLEARWATER CAPITAL PARTNERS. THE OPINIONS VOICED IN THIS MATERIAL ARE FOR GENERAL INFORMATION ONLY AND ARE NOT INTENDED TO PROVIDE OR BE CONSTRUED AS PROVIDING LEGAL, ACCOUNTING, OR SPECIFIC INVESTMENT ADVICE OR RECOMMENDATIONS FOR ANY INDIVIDUAL. ALL ECONOMIC DATA IS DERIVED FROM PUBLIC SOURCES BELIEVED TO BE RELIABLE. TO DETERMINE WHICH INVESTMENTS MAY BE APPROPRIATE FOR YOU, PLEASE CONSULT WITH US PRIOR TO INVESTING. INVESTING INVOLVES RISK WHICH MAY INCLUDE LOSS OF PRINCIPAL. This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities, insurance products, or to adopt any investment strategy. The opinions expressed are as of the date of writing and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by Clearwater Capital Partners to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. Past performance is no guarantee of future results. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader. Investment involves risks. International investing involves additional risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. S&P 500 is a registered trademark of Standard & Poor’s Financial Services, a division of S&P Global (“S&P”) DOW JONES, DJ, DJIA and DOW JONES INDUSTRIAL AVERAGE are registered trademarks of Dow Jones Trademark Holdings (“Dow Jones”). NASDAQ-100 Index®, NASDAQ-100®, NASDAQ Composite Index® are registered trademarks of The NASDAQ OMC Group, Inc. The two main risks related to fixed-income investing are interest rate risk and credit risk. Typically, when interest rates rise, there is a corresponding decline in the market value of bonds. Credit risk refers to the possibility that the issuer of the bond will not be able to make principal and interest payments.
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