Financial Spring Cleaning

Andy Reynolds

Weekly Update

As lingering chilly days or rainy days occur during early spring, take some time to consider reviewing your current finances.  The top three financial spring-cleaning tasks are: Review your credit report from a free service such as annualcreditreport.com. Review your emergency fund status and create a plan to add to savings if it is insufficient. … Continued

Give and Get: Qualified Charitable Distributions

Cameron Hamilton

Atheneum

Key Takeaways 2017 Tax Reform has reduced the number of families who itemize deductions. Those who don’t itemize may not realize tax benefits from charitable donations. Qualified Charitable Distributions help donors above age 70 ½ realize a tax benefit. Donors younger than 70 ½ should consider the timing of their contributions.   Helping people give … Continued

The Inverted Yield Curve of March 2019

Frank Yozwiak

Weekly Update

Key Conclusions: Part of the U.S. Treasury yield curve inverted in March of 2019 An inverted yield curve may be correlated to a recession – correlation is not causation Yield curve inversions do not predict the severity or length of recessions   Perhaps you’ve already heard the news: On Friday, March 22, 2019, the yield … Continued

Diworsification – Can You Take Diversification Too Far?

Brian Burton

Atheneum

Summary Points:   Diversification can be overdone – there is a point where adding another investment to your portfolio can be harmful to the risk/return profile The goal of portfolio diversification is to reduce volatility – owning assets that don’t always move in sync with one another. Naively attempting to diversify your portfolio by investing … Continued

Behavioral Finance and Asset Allocation

John Boardman

Atheneum

Summary Points:   We simply have to watch money flow to know how “average investors” behave. Investor emotions typically run opposite to sound decision making. Sound allocation planning can provide other positive impacts on your overall plan.   An emotional investor is very likely to make poor decisions over his or her financial life.  Various … Continued

Portfolio Rebalancing

Andy Reynolds

Atheneum

Below are our key conclusions when considering rebalancing as part of an overall investment management: Developing asset allocation through a thoughtful understanding of the individual client remains the most important factor. Unemotional investment decisions are essential. Rebalances are essential for long-term asset management but are not the leading factor.   At the beginning of most … Continued

Behavioral Finance Basics

Andy Reynolds

Weekly Update

As an advocate for our clients’ finances we spend a lot of time talking with clients about the decisions they make and how feelings can affect decision making.  I have told many clients that a good financial planner should be part investment-guru, part planning-guru, part-sounding board, and part-therapist.  All kidding aside, with most of our … Continued

Asset Allocation Factors: Time and Emotion

Frank Yozwiak

Atheneum

When we meet with a new client, one of our tasks is to determine an appropriate asset allocation for the funds they invest.  At a very basic level, the question we are trying to answer is “what percentage of the investment portfolio will be comprised of equities (stocks), and what percentage will be fixed-income (bonds)?” … Continued

Managing a Household Allocation

Cameron Hamilton

Atheneum

One of our mantras in planning is to “Know What You Own.”  Peter Lynch popularized this term during his management of a Fidelity mutual fund in the 1980’s, and we think it applies to more than just investments.  Your home, your health insurance, your business, and yes, your investments each have features, risks, and opportunities … Continued

How to Teach Your Children About Money

Cameron Hamilton

Weekly Update

Simone Biles is an American gymnast famous for leading the “Final Five” to gold in the 2016 Olympics.  She owns four Olympic gold medals and was All-Around World Champion four years straight from age 16-19.  Her early success is even more impressive given her training began at age six, late for an Olympic gymnast.  Most … Continued