Election Worries?

2020 has already had more twists and turns than an HBO special. From the onset of the pandemic and the ensuing economic/financial downturns, to the equally as surprising robust market upturn, to the unknowns over the upcoming election, 2020 is in the record books already.

And we have (understandably) never heard as much concern from clients as we have with the upcoming presidential election.

If that is you, this is a good time to step back, take a deep breath, and ask ourselves two important questions:

Question #1: How much impact does the president have on stocks?

To answer this question, let’s review the evidence. Click on the image below from our friends at DFA, to take a look for yourself at how markets and the economy performed under each president (and also showing who had control of the Senate and House at the time!).

 

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Waypoint Wealth Management

3 Principles That Round Out Our Strategy

In recent years, U.S. stocks have outperformed international stocks and growth stocks have outperformed value stocks, and this has led many to question the benefits of diversification. We should begin with a look at the appropriate lens through which to view investment strategy performance. Then we will address several issues that work to fog our lens and challenge our ability to stay the course. Taken together, we believe an understanding of these topics fosters the mindset necessary to remain disciplined in the face of adversity.

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Which Path Would You Take?

“I don’t know…something just doesn’t feel right,” you mumble through your mask to your primary care doctor while sitting on the examination table under a flickering fluorescent light in a room decorated with anatomical charts and hand-sanitizer dispensers. After listening to your heart and your lungs, the doctor diagnoses your feelings of worry as a mild condition that is easily treatable but could become serious if a proper treatment regimen isn’t followed. The doctor gives two treatment plans: one coming from the New England Journal of Medicine and the other from a health magazine that can be purchased at your local convenience store. Which plan do you choose?

 

The health magazines are filled with tips and tricks, such as how to burn body fat, jump-start the body’s metabolic rate, and build immune system strength. And they might even work sometimes. If you want to choose the treatment plan with the highest odds of success, it might give you more confidence to know that the medical journal, and its recommendations, are based on decades of data collected from research studies performed by medical experts and peer-reviewed by the medical community.

We face the same decision when it comes to investing. > SEE MORE

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The (Not So) Trivial Pursuit of Financial Contentment

Here’s some fun trivia for you to share with your friends as we head into the weekend:

Did you know you have to count to 1,000 before you’ll find the letter “a” in a spelled-out number?

 

We thought you could use that break from the deluge of mid-year news events and stock market commentaries on 2020’s bipolar extremes. The general theme has been how quickly global markets sold off and came back – even as economic and sociopolitical headlines continued to stoke bonfires of ongoing upheaval.

And the year is only half over. > SEE MORE

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How Can “Sequence of Return” Help or Harm You?

Clearly, there is a lot to think about when planning for retirement. While we have a degree of control over many of the choices involved, there’s one big wild card called sequence risk.

Sequence risk is the risk that you’ll encounter negative investment returns in early retirement. This is an important consideration, because the random sequence – or order – in which you earn your returns early in retirement can have a significant impact on your lasting wealth. Simply put, a retirement portfolio that happens to experience positive returns early in retirement has a better chance to outlast an identical portfolio that must endure negative returns early in retirement (if withdrawal amounts are not adjusted) … even if their long-term rates of return end up the same.

Since nobody can predict which return sequence they’ll experience early in their retirement, every family should prepare for a range of possibilities with their retirement planning. > SEE MORE

Waypoint Wealth Management

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