2022 was the seventh worst calendar year loss for the S&P 500 Index since the 1920s, down -18.1%.
The 13% drop in the Aggregate Bond Index for the year was over 10% greater than any other annual drop in this index’s history!
Since 1928, the S&P 500 Index has experienced two or more consecutive negative years just eight times.
Develop the habit of reviewing your estate planning documents and beneficiary designations on a regular basis. We recommend doing this at least every two to five years at a minimum and always after any significant life event.
Even a young adult should have the following estate planning documents: Advanced Health Care Directive, Financial Power of Attorney, Beneficiaries for accounts, Last Will and a Digital Will.
The recently signed bill by President Joe Biden was a $1.7 trillion omnibus spending bill which includes Secure 2.0 Act retirement savings legislation. This landmark legislation includes many changes to retirement savings. Here’s a rundown of some key points that we think may have direct impact on your retirement saving strategies.
Read MoreWe all learned our ABCs as kids, and the nice thing about the alphabet is that it never changes. This is not the case for the ABCs of estate planning - where things can and do change often, especially with structures such as AB Trusts.
Read MoreThe Middle Class Tax Refund is a one-time tax refund payment for California residents who filed a 2020 tax return with an AGI (adjusted gross income line 17 of CA Form 540) of less than $250,000 (Individual) or less than $500,000 (Married or Head of Household).
Read MoreThis blog discusses an exciting new development in the prevention of real estate fraud in San Diego County!
Read MoreThe US equity market posted negative returns for the quarter and outperformed both non-US developed and emerging markets.
The Bloomberg Commodity Total Return Index returned -4.11% for the third quarter of 2022.
US real estate investment trusts outperformed non-US REITs during the quarter.
Many parents and grandparent establish 529 plan Education Savings Accounts for their children or grandchildren to help pay for future education expenses. 529 accounts are state sponsored investment plan accounts that offer tax free growth when the funds are used to pay for private K-12 or college expenses.
Read MoreBeing self-employed and owning a business provide many benefits but it can pose challenges for your personal finances. Here are some financial planning tips for small business owners to consider.
Read More“Far more money has been lost by investors preparing for corrections, or trying to anticipate corrections, than has been lost in corrections themselves.” – Peter Lynch
Make sure you have enough cash and other conservative investments so you will never have to sell stocks in a bear market even a prolonged bear market.
Expect stock markets to fall further after you rebalance, in other words mentally prepare for this so you will not be overly bothered by it.
US mortgage rates hit 5% for first time since 2011.
The US equity market posted negative returns for the quarter and underperformed both non-US developed and emerging markets.
The Bloomberg Commodity Index Total Return returned -5.66% for the second quarter of 2022.
While volatile periods like the one we’re experiencing now can be intense, investors who learn to embrace uncertainty may often triumph in the long run.
With interest rates and inflation rising, a common question we are receiving is, “Should I be buying I Bonds right now?” We explore that question in this article.
Read MoreIs a Roth conversion right for you during your retirement? There are a number of factors to consider.
Read MoreOne early retirement study noted that a withdrawal rate of 4% is relatively safe.
Many researchers have evaluated withdrawal rates and related issues since then - proposing adjustments to the traditional 4% rule.
One such proposal, the Target Percentage Adjustment (TPA) suggests modifying your withdrawals year by year.
Being flexible in the face of market downturns and inflation can allow you to increase your withdrawals in retirement.
Emerging markets posted negative returns for the quarter, underperforming the US and non-US developed equity markets.
The US equity market posted negative returns for the quarter and underperformed non-US developed markets, but outperformed emerging markets.
The Bloomberg Commodity Index Total Return returned +25.55% for the first quarter of 2022.
For California families with college age children, the Californians For All College Corps is an opportunity to teach financial responsibility and civic obligation to young adult children. This blog discusses what the College Corps program is, and if California families should consider getting their children involved.
Read MoreIn recent months, the escalation of geopolitical threats (such as Russia invading the Ukraine, China threatening Taiwan, and the Iranian nuclear deal) may seem like an ominous cloud that is doomed to negatively impact stock market returns.
Read MoreVanguard’s 10-year forecast for U.S. equity returns is 2.3% to 4.3% per year; and for global equities it’s higher at 5.2% to 7.2% per year.
Market corrections are a good time to rebalance your portfolio and add back to stock holdings.
History shows that reaching a new market high doesn’t mean the market will then retreat.
It is wise to have a plan in place for the possibility of reduced future investment returns.
