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

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

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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…

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The Monkey and the Volcano: A Cadence Fable

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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…

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

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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…

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The Painful Trip Back – Lessons From 2000

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Being disciplined is hard. When we think about our own private lives, if we’re being honest, none of us have any trouble coming up with instances where we broke down and diverged from our plan. Whether around dieting, exercise, or chores, discipline can wane – hopefully for only short periods of time when it does. When it comes to investing however, losing our discipline around what we buy and at what price can have much more dire consequences than missing a daily workout. Just last month we discussed how long-term returns can get cut in half by getting caught up…

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Ask Cadence: Is it possible the rules of the markets have changed and that they can go up for longer than in the past?

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Anything’s possible, but it’s extremely unlikely that the rules of the game have changed. At the end of the day, asset prices only go as high as people are willing to pay for them. The definition of a bubble is when prices reach levels that don’t seem to make sense, yet people keep buying simply because they feel prices will continue to rise. Rationale for why values are going up gets thinner and thinner. At some point, investors realize that what they’re considering for purchase has an underlying value that’s much less than what the price reflects. Whether this is…

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How Expensive Is The Stock Market?

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We’ve incorporated our fair share of complicated charts and concepts into our letters over the months. This one, in our opinion, really keeps things simple. If we’re trying to figure out if the stock market is expensive, doesn’t it really come down to affordability for most people? When we look at the average earnings of workers across America – $21.90 per hour – the stock market has never been less affordable. It currently requires 109 hours of work to buy the S&P 500 (assuming one could buy 1 unit of the index at its current level of approximately 2,390). This…

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