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Investing Archives | Page 2 of 7 | Wealthspire Advisors

2019 2nd Quarter Commentary: “From Fear to FOMO”

Market Commentary
It was just over six months ago that we penned a piece about the then market sell-off, cautioning against knee-jerk reactions to short-term headlines such as “Worst December Since 1937” amongst others. Well, it did not take long. At 4:01 ET on Friday, June 28, a headline flashed across the Bloomberg terminal: “S&P 500 Has Best First Half of Year Since 1997.” This time around, we again urge calm, in this case against the fear of missing out, or FOMO. We often write about why we choose to be strategic investors, and will not rehash it all here, but there…
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buybacks

Stock Buybacks: The Battle of Perception vs Reality

By Blog
Recent years have seen growing popularity in share buybacks, the process whereby a company repurchases outstanding shares of its own stock. The argument is that when lacking better investment opportunities, companies should return capital to shareholders, reduce share count and that will ultimately support the stock price. Buybacks are catching the attention of politicians as well. There are concerns that companies are not spending a sufficient amount on employees or reinvestment in projects that would be beneficial to the broader economy. In this discussion, we take a look at the growth in buybacks, the ramifications for investors and address the…
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mortgage invest

Should I pay off my mortgage or invest?

By Blog
Most of our clients will at some point ask if paying off—or more aggressively paying down—their mortgage is a prudent financial decision. The answer to this question, like most complex financial decisions, is that it depends. Several factors should be considered with the help of a financial advisor to determine if it makes sense to pay off your mortgage or use your financial assets elsewhere. For the purposes of this article, we are seeking to help answer this question for one’s primary residence versus an investment, or rental property. Cash Flow Planning One of the first steps in determining if…
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yield curve

The Yield Curve: An Imperfect Indicator in Evolving Market Conditions

By Blog
The U.S. Treasury Yield Curve inverted recently for a few days, which provoked hand-wringing and doomsday predictions from all the usual market commentators in all the usual places. So let's examine this phenomenon, starting with the simple question: What is an inverted yield curve anyway? An inverted yield curve is simply the unusual case of short-term interest rates being higher than long term.  Under normal circumstances, you wouldn't lend money to anyone for a longer period at a lower rate - it just makes no sense. That's why inverted curves don't happen very often. But all yield curves are not…
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2019 1st Quarter Commentary: “When Hindsight Isn’t 20/20”

Market Commentary
“Before, You Are Wise; After, You Are Wise. In Between, You Are Otherwise.” -David Zindell Most of us are attracted to round numbers.  Attentions peak around calendar years and familiar anniversaries that have meaning beyond the numbers themselves.  Rarely do we celebrate someone being at a company for 28.14 years or ask about performance over the last 3,147 days, but we do celebrate 20-year reunions and the beginning of a new century.  So, for a society fond of round numbers, the opportunity arrived in early March to count and reflect.  Ten.  In our experience, ten is the number kids get…
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roth ira

What is a Mega Backdoor Roth IRA?

By Blog
Most people have heard of Roth IRAs. Those that qualify typically contribute and those that do not qualify can sometimes find a way to do so, as Zach Gering indicates here. In either case, you can do MORE. Take a step back and understand plan types and limits Depending on your current occupational status and business structure, you may or may not be able to open any of the accounts noted above. For starters, any individual can open an IRA (with certain age/income requirements). All of the other plans must be company sponsored. An optimal retirement plan design permits annual…
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investment letter

2019 Q1 Investment Letter

Market Commentary
Markets rebounded sharply from their 4th Quarter 2018 swoon. A balanced equity/fixed income investor is now flat or slightly positive for the two quarters from September 1, 2018 through March 31, 2019. Most major asset classes and strategies posted strong 1st Q 2019 performance. The US survived the longest Federal government shutdown in history in January, trade negotiations with China do not appear to be getting worse, different UK constituents seem to be unable to get on the same page negotiating with the EU regarding Brexit. Three months ago, investment headlines cried “December was the worst December since 1931.” Well,…
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Avoid Common Planning Mistakes with Executive Compensation

By Blog
Whether you work for a budding start-up or a well-established Fortune 500 company, it’s imperative to have a firm understanding of the components of your executive compensation plan—along with the inherent risks and rewards. Creating and maintaining a thoughtful strategy to integrate your executive benefits into your overall financial plan can help you maximize your wealth and achieve your goals in a tax-efficient manner. Still, even the most accomplished and organized executives can fall into some very common traps when incorporating complex aspects of their compensation into an overall plan. Here, we outline common mistakes we see and key considerations…
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quarter recap

2018 4th Quarter Review: “Holidays, Goldilocks, Resolutions and Strolling Along the Laffer Curve”

Market Commentary
In the grand scheme of things, this holiday season was probably no different from those of the past. Like many others, my family went through some combination of joy, distress, kindness, alienation, reconciliation and everything in between (sometimes all in a matter of minutes). Ultimately, the kids were happy to be out of school and together with the family, and although they occasionally fought and complained, there were still glimpses of heartwarming Rockwellian moments. On the other end of the spectrum, the adult dinner conversations were probably more Orwellian in nature, highlighting how polarized any discussion can become. The topics…
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