Divorce Financial Planning Services Offered by Argent Bridge Our team of Certified
more →[Market Recap] Cup of Joe: February 2024 Market Update
MARKETS IN JANUARY
Asset classes were mixed in January. US large cap and Intl stocks were slightly positive, while mid and small cap stocks gave back some gains from Q4. Bonds held steady close to even with an income yield still above 4%.
Economy seemingly on good footing
Economic output is strong. GDP exceeded expectations for both Q4 and 2023.
Employment is staying strong as well. Jobs Data far exceeding Wall St expectations. Economy has added over 750,000 jobs in the last two months.
What the Fed is watching is close to the range they want. Fed’s preferred inflation measure is starting to stabilize near a level they’ve been targeting.
Let’s greet this positive data with cautious optimism. There are still many cross-currents moving beneath the surface of the stock indexes that signal a slowdown is still very much a possibility.
Managers of the strategies we use like to focus on quality companies that manage debt well, have competitive advantages in their business models, and have resilient streams of cash flow. So in an environment where interest rates are higher and consumer spending may slow down, owning businesses with very strong fundamentals is a great position from which to start.
What do we focus on now?
Putting cash to work
MMKT funds are very short-term vehicles and are among the first things to lower payouts rates when the Fed eventually cuts interest rates.
The Fed doesn’t even need to cut rates for the payout to decrease. The expectation of rate cuts starts to get baked into the prices in the short term bond market and will start weighing on the yield of your savings accounts.
Rebalancing your investment accounts
We’ve been rebalancing the assets we over see for you.
If you got more conservative in your 401K, 403B, or Thrift Savings account, don’t forget about it and let it sit there. Make sure to rebalance it back to your long-term target allocation.
Still expect volatility. And along with that, expect some of the unexpected.
Now is the time to be disciplined investors, and be comfortable with some uncertainty, while keeping your eyes on the growth to be had once things really improve.
Joe Gallemore, CIMA®, Partner
Director of Investment Management
Navigating Divorce with Grace: Harnessing Conflict Coaching for Effective Resolution Divorce is
more →[Market Recap] Cup of Joe: January 2024 Market Update
Well 2023 is history, and what an interesting year it was.
- Wall St started the year with an overwhelming consensus that recession was imminent.
- The Fed hiked rates 4 times this past year but has paused since August.
- The S&P 500 ended the year with the Top 10 names accounting for 32% of the index! And were responsible for 86% of the return (according to JPMorgan).
Review of 2023
- Hot out of the gate: Fed ended 2022 with its first decline in rate hikes, so investors started looking farther down the road.
- Regional Banking ‘crisis’: Lasted about 5-6 weeks
- Spring/Summer acceleration: Lead to a Frothy market, where stock prices were way ahead of fundamentals.
- 3 Month Lull: the economic data started to catch up and suggest that risk of recession was still substantial. The Fed first paused rate hikes and started talking about keeping rates higher for longer.
- Nov/Dec Rally: Persistently positive economic data continued to roll in and the equity and bond indexes reaccelerated sharply. The big distinguisher this time though, is that the rally was seen across the board, not just in a handful of stocks.
- Summary: There were 5 main segments to market performance last year but each one was peppered with sharp reversals in the direction it was trending at the time. These relatively short pockets of volatility can feel unnerving, they are confusing, and they invite doubt as to whether changes to the plan need to be made.
What’s ahead in 2024? No one knows, so stay invested!
- Recession is still possible but is less likely than before. Opinion on market return varies widely. No one predicted a 2023 of +26% containing a -10% drawdown and the 2nd, 3rd, and 4th biggest bank failures in US history.
- If inflation continues to stabilize, its expected that the Fed will start cutting rates in small increments. This would be a big positive for markets and the economy. But rate cuts are not promised and there are several factors that could cause the Fed to pause for longer.
One key thing is to stay invested.
- Even if the Fed is in wait and see mode, the market will likely operate in fits & starts as the economy tries to get going again.
- Geo-political tension is high right now. If these tensions were to take sharp turns, it indeed may cause the market to hiccup. One thing that’s a fact is that markets persevere through geopolitical events.
- The Fed may be done raising rates. Unexpected fallout from high rates may reel its ugly head again. External events, totally out of the blue, might pop up as they always seem to do.
- This is just a friendly reminder to stay the course no matter what. Missing only a few days of good returns can significantly affect your long term outcome. Staying invested is always the way to go.
Principles for 2024
- Have another look at your company retirement plan and share details with your advisor. How much you contribute and when(!) can make a big difference.
- Don’t jump to make investment changes. A calendar year turnover is a psychological trap when it comes to your portfolio. Investing exists on a continuum, which moves in cycles. We did rebalance portfolios twice in Q4 to position for the road ahead.
- Reminder, IRA contributions for 2023 can be made up until you file taxes. So if you haven’t done that, you maybe still can. If you’re unsure about eligibility, ask us.
- Savings rates are great now, but these are not expected to last forever; and yields on money market funds are the first to decline when the rate cycle turns over. So lets get together and strategize about putting excess cash to work in a more sustainable plan.
Joe Gallemore, CIMA®, Partner
Director of Investment Management
Understanding Property Classification in Divorce Property classification forms the cornerstone of equitable
more →[Market Recap] Cup of Joe: December Market Update
1. 2023 has generally been a good year for equities, but be mindful of index concentration
2. Great time to be diversified
So though a prudently balanced portfolio has faced challenges in recent years, the current outlook for diversification looks promising.
3. Takeaways from our Investment Committee
Joe Gallemore, CIMA®, Partner
Mortgage Options in Divorce Divorce is a complex process that often involves
more →[Market Recap] Cup of Joe: November Market Update
Recent Investment Focus webinar with the St James Investment Co.
We talked about how interest rates affect stocks, about the Magnificent 7 making the S&P 500 more concentrated than it’s ever been, and we talked about St James’ patient, time-tested approach to value investing and how owning great businesses helps clients in the long-term. Watch at your convenience at ArgentBridge.com.
Financial Planning Year-End Punch List – a few things you can do to help you work towards better outcomes
- Assess any changes – Make a list and bounce it off your advisor.
- Give your taxes a little thought – if you got/are getting a good bonus, made more than you thought, had some windfall income, let your advisor know.
- Review your budget for accuracy – Leads to better planning for the future
- Make sure your company retirement plans are fully funded!/li>
- Charitable giving – If you want to gift, to charity or loved ones, tell your advisor! There’s lots of giving strategies out there and we want to help you make the most of your generosity.
- Year-end not necessarily a time to shuffle your investments. Historically the months in Q4 and Q1 are relatively strong. Make that discussion a year-round one with Argent Bridge.
- I-Bonds – Is it worth owning?
- I-bonds purchased in the last few years may be less competitive than current US Treasuries that can be locked in.
Each I-bond is different and the time it was purchased and the length it’s been held needs to be considered.
If you have I-bonds, show them to your advisor, let us take a look and see if there’s a way we can improve your outcome. - Focus on your spending- Maintaining your normal spending plan, when funded by distributions from your investments, eats up bigger chunks of your assets when the markets decline. So adjusting your spending is a great way to improve your investing outcome.Thank you for your continued trust and partnership.
Joe Gallemore, CIMA®, Partner
Exploring Divorce Path Options Divorce can be a challenging and emotional
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Article: The Power of Gathering Documentation
Divorce can be a challenging and emotionally charged process, but being well-prepared with the right documentation can make all the difference in ensuring a smoother and more informed journey. As a divorce financial planner (and divorced mom), I have witnessed and experienced firsthand the importance of gathering essential documentation during divorce. In this article, I’ll share some insights on the significance of this process and the key documents you should collect.
Why Gathering Documentation Matters:
Gathering documentation is the foundation of a successful divorce case. It provides a clear and comprehensive view of your financial situation (income, expenses, assets, and liabilities), which is crucial during property division and for determining spousal and/or child support. Additionally, having organized and complete documentation can save time, minimize disputes, and reduce stress during the legal proceedings.
Key Documents to Gather:
- Financial Documents: Begin by collecting all financial records, including bank statements, tax returns, investment account statements, and details of any additional sources of income. Having a thorough understanding of your financial position will empower you to negotiate from a position of strength.
- Property and Assets: Document all marital and separate properties, vehicles, valuable possessions, and any other assets that may need to be divided. Ensure you have proof of ownership and an accurate valuation of each asset (a divorce financial planner can help with this).
- Income and Employment Records: Gather pay stubs, W-2s, and other income-related paperwork to establish your and your spouse’s earnings. If you or your spouse own a business, include relevant financial statements for valuation purposes.
- Retirement and Pension Accounts: Obtain statements for retirement accounts, pension plans, and any other retirement savings you or your spouse may have. Understanding the value of these accounts is crucial for equitable distribution.
- Insurance Policies: Make sure you have documentation for health insurance, life insurance, property insurance, and any other policies that require attention during the divorce process.
- Debts and Liabilities: Collect records of credit card statements, loan agreements, and any other outstanding debts to gain a comprehensive understanding of your financial obligations.
The Benefits of Being Organized:
Having all the necessary documentation organized and readily accessible provides several advantages. It allows your attorney and divorce financial planner to have a clear picture of your financial situation, enabling them to provide you with the best possible guidance and representation. Being organized also reduces the chances of overlooking critical financial aspects that could impact the outcome of your divorce settlement.
Seek Professional Guidance:
Navigating divorce is a complex process, and it’s essential to seek professional guidance to ensure you are well-prepared and protected. Working with a divorce financial planner and an experienced family law attorney can provide you with valuable insights, help you understand the implications of different financial choices, and advocate for your best interests.
In conclusion, gathering documentation is a critical step in the divorce process that empowers you to make informed decisions and achieve a fair and equitable settlement. Take the time to collect all the necessary paperwork, and work with a knowledgeable team of professionals who can guide you through this challenging time with expertise and compassion. Remember, being well-prepared lays the groundwork for an empowered divorce journey.
Divorce Documentation Checklist
By: Elina Cannon, CDFA®, CFA®