As a review, on December 22, 2017, a new federal tax bill was signed into law that will impact all taxpayers for their 2018 tax return. Then on May 23rd, a state tax law change was vetoed, which leaves Minnesotans with a different set of tax rules.
It has been quite some time since the phrase “cash is king” has been uttered. In general, the idiom has been used to make the case for investing in cash securities, despite the unremarkable growth potential of the asset class. The benefits of investing in an asset that is likely to preserve its value in a broad stock market downturn can be underappreciated until that downturn actually occurs. In a market environment where stock market valuations are largely higher than average and bond prices are also exceptionally high, cash should be considered as an appropriate investment allocation in a balanced portfolio. The problem has been that the yield on cash securities has been nearly non-existent for almost a decade. But that’s beginning to change.
You’ve been saving for years and you can see retirement down the road. What is your timeline? How does all this fit together? Below is a timeline on how to start the retirement process and help explain how the puzzle pieces work together.
I’m sorry that my letter happens to be delayed this quarter. While finishing a first draft, the stock market reminded us all of its unpredictability and potential for sudden course corrections. Instead of sending this letter out in its original and dated form, we felt it obviously imperative to address the current market correction. At the same time, last year was such an uncommon year in the capital markets that I decided to retain much of the original letter’s content for your edification. Despite the understanding that market corrections may occur at anytime and for unpredictable reasons, they can still be unnerving. When market volatility increases it is important to remain disciplined and stick to your long-term investment strategy. Thank you for your continued interest in these periodic letters. The intent is to provide you with our interpretation of the current capital markets in the context of investing for the long-term and to regularly communicate our investment philosophy in managing your wealth.
For the third year, Birchwood Financial Partners has been rated as one of the Top 10 Financial Advisory Firms in Minneapolis, St. Paul and Edina by AdvisoryHQ.
AdvisoryHQ's review shared the key factors for Birchwood to be included in the review:
I’ve never engaged in Millennial bashing because I can’t think of anything bash-worthy. I love Millennials! I have two daughters, both in their twenties. They don’t do things the way I did at their age but that doesn’t matter because I appreciate their different point of views and passions. For example, my daughters and their friends care about the earth. They place a high value on friends, teamwork, and collaboration. In general, Millennials tend to prefer experiences over things.
In the December edition of Birchwood News, an invitation to join us for an open house on Thursday, January 25th. Also, we know estate planning can often be an uncomfortable discussion for many. Advisor Kay Kramer discusses the topic to help provide clarity to help you feel prepared for your first visit with an attorney. Last, see what the team has been up to in our After Hours/Staying Sharp section.
When we first approach the topic of estate plans with clients, we know it can often be an uncomfortable discussion for many. We celebrate when clients tell us that they do in fact have an estate plan, that they know what is says, and that it reflects their values and wishes.
Join us on Monday, November 27 from 5:00 to 7:00 pm to learn insider tips to navigate the complicated college process, reduce stress, potentially save significant money and reduce the overall cost of college!
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