Blog

We routinely publish news, information and insights to keep our clients informed while also deepening their understanding of a variety of wealth management topics.

Have A Question?
Feb 09

What to Think of Interest Rates and Bonds

By Blog
Bubbles are dynamic and as a result, different each time. But one common theme amongst them has been the tendency for interest rates to play a role in their eventual demise. Looking back 30 years, there seems to be a causal relationship between rising rates and poor stock market performance. More times than not when the 24-month change in 10-year treasury rates spiked upward, stocks ran into trouble. Practically every sizable correction in stocks was preceded by an acute increase in interest rates. But rising rates don’t just signal possible trouble for stocks, they also mean there’s a current problem…
Read More
Jan 18

Goals Are Bigger Than Short-Term Investment Returns

By Blog
This current bull market started in March 2009, making it the second longest bull market in investment history. You can just glance at a chart of the S&P 500 and see that bull markets, especially big ones, do eventually come to an end. What has been unusual about this particular bull market is not only the duration going on nearly 9 years now, but also the relatively low level of volatility we’ve experienced along the way. This part of the market cycle has a sinister way of lulling people into feeling like there’s less risk in the stock market than…
Read More
Dec 19

Ask Cadence: Should I consider contributing to my employer-provided Roth 401(k)?

By Blog
Most employers, especially the medium and large-sized ones, provide some sort of retirement plan.  A large percentage of those are traditional 401(k)s, where you contribute pre-tax dollars into the plan, you do not pay any taxes on gains inside the plan, and then every single dollar you take out of the plan in the future is fully taxable.  Another well-known retirement account is the Roth IRA, which is almost the complete opposite of the 401(k).  Like 401(k)s, the growth inside Roth IRAs is not taxed, but unlike 401(k)s, post-tax dollars go in, you can’t save into them right out of…
Read More
Nov 08

Eight Ways to Get Estate Inheritances Right

By Blog
Life is complicated, but does passing money to your beneficiaries have to be also? In theory it shouldn’t, as all you want to specify is “when I die, give this much to these people”. That sounds so simple, yet when it comes time to create a process that would allow that to happen, a lot of picky little details get in the way. Getting any of them wrong increases the chances that your estate plans could go awry. Consider these eight ways to get your estate strategy correct: 1) The More Accounts and Institutions, the More Paperwork. Every account you…
Read More
Oct 13

Ask Cadence: If I choose to take social security early and my benefits get reduced, will they stay reduced forever?

By Blog
They could, but it depends on what you did to reduce the benefits.  Most people know by now that if you take social security before you reach your full retirement age, which these days for most people is 66 to 67 years old, you will receive reduced benefits.  If you take benefits at age 62 and your full retirement age is 66, your benefits will be permanently reduced by 25%.  Every month after age 62 that you wait to take benefits sees those benefits get closer and closer to 100% of your full social security retirement benefits.  People who take…
Read More
Sep 26

What The Future Holds For Stocks – It’s All About Price

By Blog
Let’s keep this simple. U.S. stocks by almost any measure that doesn’t obscure reported earnings are either at or very near record levels. Here’s a look at a couple valuation measures we’ve discussed in the past – the Shiller CAPE and the S&P 500/GDP. What’s immediately noticeable from both measures (shaded in blue) is that they are toward the top of their historical ranges, exceeded only by the tech bubble in 1999. What both of these charts don’t show however is what happens when we adjust for the above average corporate margins and below average economic growth that we’re observing…
Read More
Sep 14

Ask Cadence: If the markets and economy are likely to struggle over the next few years, will my retirement plan be ruined?

By Blog
Not necessarily. For those who don’t understand where we are in the economic cycle and the current valuation levels of markets, there will likely be some very unpleasant surprises down the road. This is nothing new. For investors who were too aggressively positioned in 1999 and 2007, most of the progress they had made over years of investing was wiped out within months. This time probably won’t be any different for unsuspecting investors. However, by taking a more conservative approach and focusing on principal preservation, there will most likely be opportunities down the road to invest at much more reasonable…
Read More
Aug 24

Are You Leaving Money on the 401(k) Table?

By Blog
Contributing to a 401(k) plan is good, right? Then contributing the maximum possible to a 401(k) is even better. However, there is one small mistake we see people making that can have a surprisingly big impact over time: hitting the maximum they can contribute before the final paycheck of the year. It may be best to illustrate the mechanics of this with an example. Consider someone making $125,000 per year, paid out as $5,208 gross twice per month. If that person decides to save 18% of his or her salary, he or she would contribute $938 every paycheck and would…
Read More
Aug 08

The Monkey and the Volcano: A Cadence Fable

By Blog
Halfway up the slope of a volcano lived a monkey. Like his fellow monkeys, he spent the majority of his days picking and eating fruit off the trees growing on the side of the volcano. Unbeknownst to his friends, however, he dreamed of one day opening his own banana pie stand where he could spend his old age providing delight to others, just making and serving pie, passing the time in enjoyable conversation. He dreamed this every day as he foraged, and it made him happy. But he knew he would only get there if he grew big and strong…
Read More
Jul 18

Ask Cadence: Should I wait to invest given all the uncertainty in the world today?

By Blog
Although the rationale for this is sound, waiting to invest can be tricky because it’s always difficult knowing when the time is right to start putting money to work. Usually the best time to get invested is when the world feels scariest. The economy is struggling, the stock market is down significantly, and it’s possible that the stability of your income and financial well-being is also in question making the decision to invest money that you feel you can’t afford to lose a tough one. For this reason, we feel it’s important to always stay invested in a strategy that…
Read More