Many of you already have estate documents, probably executed many years ago. You need an estate attorney to look over your documents every 10 years or so. Here are a dozen points to review. Do you have a will and powers of attorney for health care and property? These are part of every complete estate plan. With health-care power, you choose an agent to act on your behalf if you become unable to make your own decisions. With durable power for property, you select an agent to act if you are incapacitated and can’t sign a tax return, make investment decisions, make gifts or handle other financial matters. Make sure your health-care power addresses the Health Insurance Portability and Accountability Act. This governs what medical information doctors can release to someone other than the patient. Do you need to change any beneficiaries, executors, trustees, guardians or others named in your documents? Are all still living? Can someone you recently found fill a role better? Any updates needed to addendums to your will that specify who gets what of your personal property? Often I read wills that mention addendums for personal property and the addendums don’t even exist. Did you move to a different state since the execution of your estate documents? If so, seek out a local estate attorney to check any legal differences for planning between your old and new states. Do you still need your trust documents or can you decant, which allows you to change some provisions? Consider this technique of emptying the contents of an irrevocable trust into another newly created trust if you are unhappy with your irrevocable trust. Not all states allow decanting. You

Sometimes people get caught up in the numbers so much that they forget why they’re saving for retirement. At the beginning of your career, you may not have known what you wanted to do. Now that you’ve officially joined the ranks of pre-retirees — people who are around five or ten years away from retiring1— you probably have a much better idea of what you want. It’s time to put that perspective to work. Here are eight steps to get you started. 1. Make a Wish List One of the first things you should do when you’re securing your income is to decide how you want to use your money2. This makes a big difference in how you will position your assets over the next few years. Some things to consider are whether you want to do some traveling, make large purchases or sell significant assets, such as your home. 2. Determine Your Financial Situation After you decide what you want your money to do in an ideal situation, then you can figure out the reality of your accounts3. Begin by determining your net worth. Take all of your assets and subtract all of your debts. Make sure to do this in an organized way — you will want to reference each line item and its corresponding value later. Here are some examples of items many pre-retirees include in this list: Each retirement account Valuable assets, such as cars, homes or antiques Individual securities Investment brokerage accounts Secured and unsecured debts   3. Identify Strengths and Weaknesses After you take a look at your finances, you will want to form a strategy. A good way to start is to do

The race for the White House is down to the homestretch, and although presidential candidate Joe Biden is comfortably ahead in the election polls, various market and economic-based indicators suggest the election may be much closer than many are expecting. Support For A Biden Victory Various polls show former Vice President Joe Biden comfortably in the lead in the 2020 presidential race, although in some battleground states the race appears to be quickly tightening. Influential states like Ohio and Pennsylvania may even be a coin toss at this point. Not surprisingly, approval ratings can play a large part in forecasting the overall percentage of the votes in an election. Only two presidents have lost reelections since the Great Depression: George H. W. Bush and Jimmy Carter. Not surprisingly, both had low approval ratings leading up to the elections. If the people don’t approve of the job you’re doing, you may not serve a second term. Recent Gallup polls suggest that President Donald Trump’s approval rating is 43%. Using a regression of previous elections, this equates to less than half of the two-party vote [Figure 1]. Of course, Trump received less than half of the popular vote in 2016, but he still won the election because he had more than 270 votes in the Electoral College. Still, the polls currently favor Biden, and this appears to be his race to lose. How well specific “Biden stocks” have done could be another clue that a Biden victory may be around the corner. Our friends at Strategas Research Partners created a basket of stocks likely to benefit from either a Trump or Biden presidency, and the Biden portfolio has done extremely well lately. Areas

When you’re a small business owner, you need to pay extra careful attention to both your business and personal finances. Your financial planning strategies should simultaneously encourage the success of your business while also working towards safeguarding your personal finances. To pursue that balance, check out these tips. Separate Your Business and Personal Goals As a small business owner, you eat, sleep, and breathe your business, and in most cases, your personal finances are strongly dependent on the success of your business. However, you need to establish separate business and personal financial goals. Take time to think about what you want your business to achieve and to outline your revenue and profit goals, but also look at your personal goals. Think about how you want to live, investments you want to make, when you want to retire, and other personal financial goals. Then, make sure your small business strategy supports those personal goals. Be Careful About Financing Your Business Personally A lot of entrepreneurs finance their own businesses, and of course, using savings or personal loans and credit cards is often essential as you try to get your business off the ground. But ultimately, you want to avoid carrying personal liability for business debts. Try to explore less risky funding options such as bringing on investors who put money into the business in exchange for a share of the profits. Additionally, consider incorporating or establishing your business as a Limited Liability Company (LLC). Then, you can take out loans in the business’s name without incurring personal liability. Tax Plan Strategically As a small business owner, you have to think about your personal and business tax liability. Work with an accountant

Markets have come a long way since the March lows, but we believe there may be more room for stocks to run. Given the impressive economic recovery to date and improving underlying technical and fundamental conditions, we think small cap stocks in particular may have attractive growth potential. Despite election and COVID-19-related risks, we see further gains ahead. Not Out of the Woods, But Improving The significant impact of COVID-19 on the US economy has created unprecedented levels of uncertainty for investors, with a heated election as the cherry on top for 2020. Investors have had a lot to digest since markets bottomed in March, and the virus is not yet under control, but the US economy is certainly in a much better place today than it was in the spring. While we previously have favored large cap stocks due to their strong balance sheets and resilient earnings during this recession, we highlight three reasons we have been warming up to small cap stocks. Early-Cycle Environment Favors Small Caps We believe the latest recession is over and the new economic expansion has begun. The Federal Reserve of Atlanta’s GDPNow updated its forecast to 35% gross domestic product (GDP) growth in the third quarter on an annualized basis, potentially confirming our view that the recession has ended. While we acknowledge the immense amount of uncertainty facing the economy, along with the growing risk that there may be no additional fiscal stimulus until after the election, we stop short of calling for a “double dip” recession. Given our view that we’re in the early stages of the business cycle and a new bull market, we point out that small cap stocks historically

As the saying goes, “50 is the new 40″—and with Americans living longer than ever before, it’s not unusual for those in their 50s, 60s, or even 70s to be in their peak earning years.1 But for those who would prefer the option of an early retirement, it can be helpful to revisit your net worth (and investment strategy) at each milestone age to make sure you’re on track. In Your 30s By your 30th birthday, experts recommend that your retirement savings equal your approximate annual income.2 They also recommend you have 2 times your income saved by age 35. But one’s ability to save for retirement (or invest outside their retirement accounts) largely depends on the job market they graduated into. Many members of Generation X and Millennials may not have found a career-focused position until their 30s, giving them a later start on saving than others. When investing in your 30s, it’s important to remember that perfect is the enemy of good. Even if you can’t afford to max your retirement accounts yet, saving a little at an early age can reap major rewards in the future. And with 30 years or more until retirement, you can afford to take a little more risk (which might also yield higher returns) than someone who hopes to retire within the decade. In Your 40s In your 40s, experts recommend you have three times your income saved in retirement accounts like a 401(k), IRA, or Roth IRA. For many, the beginning of their fifth decade can mark greater career stability and earning potential than ever before, making this an ideal time to save. On the other hand, one’s 40s can also

When the markets are shaky, it can be tempting to rely on political headlines or pending legislation to time your entry or exit points. However, letting politics drive your investment decisions can be a costly mistake. Learn more about what helps market trends endure beyond political administrations and why you should ignore the noise and focus on your investment fundamentals. Politics’ Long-Term Impact (or Lack Thereof) on Markets How much do political decisions really impact the stock market in the long term? Not much, as it turns out. Although politically-charged situations like Brexit or the Tax Cuts and Jobs Acts did create momentary market moves, over the long term, the stock market has tended to trend upward regardless of the action (or inaction) taken by any particular administration or President.1 Political news can certainly contribute to short-term market swings, but—absent some independently-corroborated change to a stock or index’s fundamentals—the market’s initial reaction to political news is usually short-lived. As a result, it’s important to tune out the “noise” of daily political news and instead focus on your long-term goals and investment horizons. Simply doing an internet search for “stock market crash in [year]” will yield dozens of projections and predictions of another Great Depression that never came to fruition. Listening to these types of political doomsayers can lead you to avoid a healthy amount of risk in your investment portfolio. Stay the Course with Appropriate Asset Allocation Volatility can be part of investing no matter who is in office. But if the amount of volatility in your portfolio makes you uncomfortable or triggers thoughts of cashing out after a string of poorly-performing days, it may be time to revisit your asset

This earnings season, corporate America will get closer to the return of earnings growth—which is likely in the first quarter of 2021. We probably will have another decline in profits for third quarter 2020, though potentially only about half as big as last quarter’s. And we will undoubtedly hear more about uncertainty—both COVID-19 and election-related. We also highlight three things investors can watch this earnings season. Moving in the Right Direction How investors evaluate this earnings season will depend on their perspectives. We are likely to get a much smaller year-over-year decline in S&P 500 Index profits in the third quarter compared to the second quarter, which is good news. Consensus is calling for a roughly 20% year-over-year decline in earnings per share (EPS) according to FactSet’s estimate, but we expect quite a bit better [FIGURE 1].       The consensus estimate for the third quarter has risen by about 4% over the past three months (best such increase in more than two years according to FactSet), a good sign that companies may be able to deliver more than the typical upside. And although fewer companies have offered guidance because of the amount of uncertainty, 67% of the guidance has been positive, significantly higher than the five-year average of 32%. Accordingly, we expect company management teams to instill confidence that the earnings rebound baked into analysts’ forecasts—or at least something close to it—may materialize. The economic growth picture in the United States is also supportive. Mostly better-than-expected economic data during the quarter is a positive indication of earnings surprises. The possibility of a more than 30% annualized spike in US gross domestic product (GDP) during the third quarter is supportive

The world’s events always affect the markets, and making smart investment choices requires you to look at what’s happening around the world. But what about during an election year? How should you invest while the country is deciding which direction to take? Regardless of which side of the political spectrum you prefer, you may want to keep the following facts in mind as you invest during an election year. 1. Stocks Trend Upward Regardless of Who’s in Office Although stock values go up and down, the stock market always has an overall upward trend, regardless of who’s in office. On average, returns from the S&P 500 are 8 to 10% per year1. To put these numbers into perspective politically, seven Republicans and seven Democrats have called the White House home since the infamous market crash of the Great Depression. In other words, the person in the Oval Office typically doesn’t affect overall stock market growth. 2. Markets Tend to Bounce Back After a Volatile Primary Season During the primary season, stock values tend to be volatile, which can be scary for investors. But you shouldn’t necessarily yield to the fear and sell. During the year after a primary season, stocks return an average of 10.1%2. Although you can never predict returns, the patterns indicate that if you stay the course during a volatile primary season, values are likely to return. 3. Investors Often Cash Out Assets During Election Years Research indicates that the amount of net assets flowing into money market accounts triples during election years. Essentially, this trend indicates that many investors get nervous, sell stocks, and put the cash into money market accounts. Staying in the markets while

If you’ve been wondering how to optimize your finances and ensure your money continues to work for you, a financial professional may be able to help. But the thought of turning over your most sensitive financial information to a near-stranger can be an intimidating one. To make this relationship work, you’ll need to place a great deal of trust in your financial professional, and it’s crucial to find the right fit. What should you know about working with a financial professional, and how can you prepare for your first meeting? What a Financial Professional Can Do For You A financial professional is essentially a personal trainer for your financial life. While you may be able to educate yourself on the financial principles you’ll need to manage your own investments, a financial professional has the knowledge and guidance to take your plan to the next level. Financial professionals use their knowledge to create personalized financial plans for their clients that touch on savings, budgeting, insurance, and tax-saving strategies. Just a few of the benefits you can realize from working with a financial professional include: Accountability and follow-through. It can be easy to talk yourself into (or out of) making certain financial moves. By partnering with a financial professional, you can help ensure that the actions you take will fit in with your overall financial plan. Ongoing tweaking and review. Circumstances can change, and your plans may change with them. A financial professional will help you reevaluate at regular intervals and make any changes that may be necessary. Most financial professionals offer a wide array of services, which means that you can use your professional for as little (or as much) as