Vanguard has recently provided a few interesting pieces which reinforce the importance of “staying the course” when the market is volatile. This isn’t ancient history, unfortunately.

As always, we are here to talk if/when you are nervous.

Compliments of Vanguard…..https://advisors.vanguard.com/iwe/pdf/FAMKTVOL.pdf

You may have seen the news that TD Ameritrade is eliminating base commissions for online exchange-listed stock, ETF (domestic and Canadian), and options trades, moving from $6.95 to $0.00. This change goes into effect on October 3, 2019. That’s when you should start to see lower commissions on qualifying trades in your accounts. Note that mutual fund trades are not included in this change.

Please see the company press release for additional details on this announcement:

The Best Just Got Better: TD Ameritrade Introduces $0 Commissions for Online Stock, ETF and Options Trades

https://amtd.com/news-and-stories/press-releases/press-release-details/2019/The-Best-Just-Got-Better-TD-Ameritrade-Introduces-0-Commissions-for-Online-Stock-ETF-and-Option-Trades/

A single word defines the stock market right now…and that same word defines the stock market all the time.

“The macro environment continues to be defined by uncertainty,” Goldman Sachs’ top stock market strategist David Kostin said in his latest note to clients (emphasis added).

And he’s right. In recent days, we’ve seen oil prices spike after a drone attack, funds rapidly rotate out of one sector and into another, the Fed cut rates, something called the repo market go haywire… yeah, that sure feels like “uncertainty.”

But isn’t it always the case that the markets are defined by uncertainty? After all, uncertainty characterizes the risk investors take when they go long stocks. It’s that uncertainty that commands a premium, which is why the rewards of investing in stocks tend to be higher than risk-free assets.

I’m reminded of a comment made three years ago by Bank of America Merrill Lynch economist Ethan Harris: “It’s always something.” Back then, Harris pointed to turmoil in Europe, the threat of Britain exiting from the euro area, and anti-trade rhetoric picking up in D.C. Not only is there always something to be worried about, but ironically the stuff that was making investors nervous back then are very similar to what’s making investors nervous today. Though the S&P 500 was trading at about 2,000 back then and it’s at about 3,000 today.

I think my favorite musing on the permanence of uncertainty came during the darkest days of the financial crisis. It was Warren Buffett for the New York Times op-ed section.

“Over the long term, the stock market news will be good,” Buffett said. “In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497.”

Buffett’s reflection is worth remembering. Because not only is there the risk of bad things happening, but worse, bad things actually happen. And yet time and time again, the markets sort it all out.

By Sam Ro, Yahoo Finance managing editor.

This question is one of the most common ones we hear from both clients and prospective clients. And as most of you know, the answer is “it depends.”

There was a recent article written by Craig L Israelsen and published by Financial Planning which attempts to apply data and science to this question and the answer – all of which we love. If you love the data and science too, a link to the article is included. For the rest of you, just read on….

As many of you know, the standard wisdom has said that, based on historical market returns, the average retiree can withdraw 4% per year from a retirement account and not risk running out of money in the account in the average 25 years of remaining life.

The study described in this article took a much deeper dive:

• considered 34 25-year time periods between 1961 – 2018 with a starting portfolio value of $1MM
• used a standard portfolio mix of 40% large cap U.S. equities/20% small cap U.S. equities/30% bonds/10% cash
• assumed no required distributions (i.e. Roth IRA)
• looked at 15 different withdrawal rates from 1% to 15%, withdrawn at end of year

And the results:

• in no scenario studied, was the portfolio at 0$ (or less) at the end of 25 years, even with a 15% withdrawal rate. Obviously, that doesn’t mean it can’t happen – it just didn’t in the years studied.
• Not surprisingly, the sequence of “good” years vs “less good” years matters. Portfolios which have the good years at the beginning of the 25 years did markedly better than those which had the good years nearer to the end of the 25 years.
• At the standard 4% per year withdrawal rate, the average ending portfolio balance was just over $4 million with a range of $1.8 million to $9.4 million!
• The optimum annual withdrawal rate for the scenarios studied was 8%. At this withdrawal rate, the average ending portfolio value was a very healthy $1.5 million and the highest annual withdrawal.

This is a good read! Our answer after reading… “it depends”.

Lori

https://www.financial-planning.com/news/the-ideal-annual-withdrawal-rate

As Marci and I celebrate birthdays (well really it’s just one birthday) this week, we thought we would share the following information to help you plan for your upcoming “milestone” birthdays, compliments of Brighthouse Financial and Investment News.

And no, this is not a milestone birthday for us but we can still help you with each of yours and we will remind you of your options as you approach these BD’s! Remember that all of these milestones are subject to change.

Legislative milestones:

Age 50: You may be able to increase your retirement plan contributions to IRA’s, 401K’s and 403B’s

Age 59 ½: You may be able to take distributions from your eligible plans without a penalty. Depending on the type of account, you still have to pay taxes though.

Age 60: Widows and widowers may be able to collect Social Security benefits

Age 62: You are likely eligible for social security benefits

Age 65: You may be eligible for Medicare health coverage

Age 70 ½: Depending on the type of retirement account you have, spend down is required (RMD’s) and taxes must be paid.

ALPHARETTA August 1, 2019 — Linder Financial Services has been selected for the 2019 Best of Alpharetta Award in the Financial Advisor category by the Alpharetta Award Program.

Each year, the Alpharetta Award Program identifies companies that we believe have achieved exceptional marketing success in their local community and business category. These are local companies that enhance the positive image of small business through service to their customers and our community. These exceptional companies help make the Alpharetta area a great place to live, work and play.

Various sources of information were gathered and analyzed to choose the winners in each category. The 2019 Alpharetta Award Program focuses on quality, not quantity. Winners are determined based on the information gathered both internally by the Alpharetta Award Program and data provided by third parties.

About Alpharetta Award Program

The Alpharetta Award Program is an annual awards program honoring the achievements and accomplishments of local businesses throughout the Alpharetta area. Recognition is given to those companies that have shown the ability to use their best practices and implemented programs to generate competitive advantages and long-term value.

The Alpharetta Award Program was established to recognize the best of local businesses in our community. Our organization works exclusively with local business owners, trade groups, professional associations and other business advertising and marketing groups. Our mission is to recognize the small business community’s contributions to the U.S. economy.

SOURCE: Alpharetta Award Program

CONTACT:
Alpharetta Award Program
Email: PublicRelations@localrecognitions.org
URL: http://www.localrecognitions.org