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What to do when things get choppy

Posted by on Jun 19, 2020 in blog | Comments Off on What to do when things get choppy

“What to do when things get choppy”

“Rock the boat, don’t rock the boat baby”- The Hues Corporation

When sailing from one destination to another there will be times when unfavorable weather will arise. Think of taking a cruise on the Atlantic Ocean, or even a boat ride through Lake Erie. An image that may come to mind is an evening cruise where the water was so still that the vessel seamlessly sailed through the night. Another image that may come to mind is one that I have in particular: on a channel off the coast of Ireland, where the ferry that I was on got caught in a storm. The captain of our ship calmly turned on the intercom to assure all passengers that although this current patch of our journey was a bit choppy, we were still full steam ahead towards our destination.

Recently, the “hot item” in the news has been the Coronavirus. It is natural for some individuals to see the market step back a bit and think “Is it time to buy low?” or “Is it time to sell out?” However, this is a good time to see the market step back and think “How does this impact my goals?” (more…)

Asset Allocation and Market Recoveries

Posted by on May 13, 2020 in blog | Comments Off on Asset Allocation and Market Recoveries

Asset Allocation and Market Recoveries     

Asset Allocation Dilemma

Money managers and individual investors have the dilemma of creating a proper asset allocation.  The decisions involve assigning weights to equities, bonds, cash, and alternative strategies or asset classes to provide the best risk-adjusted return to match an investor’s goals and their risk tolerance.  Think about the following scenario:

You are forced to invest all of your accounts for 20 years and are not able to look at or rebalance the portfolio.  How would you invest this account?  Based on historical performance and future projections, the correct answer would be 100% equities (some mix of large/small US stocks and international). (more…)

Financial Opportunities

Posted by on Apr 28, 2020 in blog | Comments Off on Financial Opportunities

Financial Opportunities

As we continue to manage your investments during the current pandemic it is important to keep a focus on the 3 L’s that we use to help you build your goals. Reviewing the Lifestyle that you want to live, now and into the future, the Loved Ones that you want to support, and the Legacy that you want to leave behind, means that we need to augment our actions on a regular basis, especially through changes in the market. In order to optimize the path toward achieving your goals, there are a few potential ideas to consider that may help position you in a more optimal way as we return to post pandemic life.

2020 IRA contribution:

Many of our clients make an annual contribution to their IRA at the end of the year or even before they do their taxes the following year. We think with the recent decline in the market due to Covid-19 pandemic it may make more sense to contribute now for 2020 and take advantage of this market downturn. (more…)

Global Asset Allocation Views – Q2 2020

Posted by on Apr 20, 2020 in blog | Comments Off on Global Asset Allocation Views – Q2 2020

Global Asset Allocation Views – Q2 2020

It’s never paid to bet against America.  We come through things, but it’s not always a smooth ride.”

  • Warren Buffet

We enter the second quarter of 2020 amid our first bear market since the Great Financial Crisis of 2008.  We are also under stay-at-home orders from Governor DeWine during this coronavirus pandemic and I hope each of you remains safe during these challenging times. As Warren Buffet alluded to in his quote, the ride may be bumpy but American ingenuity will get us through these times as it has done many times over the past 200+ years.  During times like these, it is important to revisit your investment plan and to focus on the long-term approach we take together. (more…)

CARES Act for Retirement Plan Sponsors

Posted by on Apr 16, 2020 in blog | Comments Off on CARES Act for Retirement Plan Sponsors

CARES Act for Retirement Plan Sponsors

In these unprecedented times the Federal Government has passed into law the Coronavirus, Aid, Relief and Economic Security (CARES) Act.  Below is a summary of the impact on a company that provides retirement benefits to their employees. There are additional benefits for employers and employees to look into as well: (more…)

FFCRA & CARES Act for Businesses

Posted by on Apr 9, 2020 in blog | Comments Off on FFCRA & CARES Act for Businesses

FFCRA & CARES Act for Businesses

In these unprecedented times the Federal Government has passed into law the Coronavirus, Aid, Relief and Economic Security (CARES) Act.  Below is a summary of the impact on Small Businesses. There are additional benefits for Retirement Plans and individual you may want to look in to, see our other blogs for those highlights as well. (more…)

Coronavirus Individuals CARES Act

Posted by on Apr 7, 2020 in blog | Comments Off on Coronavirus Individuals CARES Act

Coronavirus Individuals CARES Act

In these unprecedented times the Federal Government has passed into law the Coronavirus, Aid, Relief and Economic Security (CARES) Act.  Below is a summary of individual benefits your family might receive. (more…)

Coronavirus Market UPDATE

Posted by on Mar 16, 2020 in blog | Comments Off on Coronavirus Market UPDATE

Coronavirus Market UPDATE

 

As I write this, we have officially entered a bear market.  The first official bear market since the 2008 financial crisis.  The spread of covid-19 has caused supply constraints, lower demand, concerns in the credit market, and worsening sentiment.  On a more somber note, the mortality rate is around 1%.  Some countries (South Korea and Singapore) have done a better job of containing the spread.  Others (Italy and Iran), not so much.  This is the quickest bear market in history

Two events are going to happen in the short to medium-term

  • We will have a recession

This is no longer a “maybe” but a “how severe”.  Cruise lines and airlines were the first to be affected.  Now larger sectors of the market are beginning to feel the heat as large events begin to be canceled and credit conditions worsen.  The severity of the recession will depend on the depth of fiscal (so far tepid) and monetary (so far ineffective) stimulus applied to the economy.

  • This will pass

(more…)

5 Areas of Your Financial Life to Get Organized Before Retirement

Posted by on Mar 6, 2020 in blog | Comments Off on 5 Areas of Your Financial Life to Get Organized Before Retirement

5 Areas of Your Financial Life to Get Organized Before Retirement

The dream of retirement can be made a reality with a lot of careful planning and decision-making well before you actually plan to retire.

If you are seriously starting to think about your retirement plans, now is the time to start planning and organizing you financial life. Retirement is exciting and challenging at the same time. Making the decision on when you can retire, what retirement will be like and how you will live your life once you stop heading off to work every day takes some clear planning. Retiring is a big step, but the process doesn’t need to be intimidating.

There are several areas you need to focus on so you can retire to a comfortable and dignified life. Here are five of the areas you will want to pay particular attention to. (more…)

Coronavirus Scare

Posted by on Feb 25, 2020 in blog | Comments Off on Coronavirus Scare

Coronavirus Scare –

US markets entered 2020 at overbought levels poised for a drawdown.  The global economy was bouncing back from a difficult 2019 and a manufacturing recession in some parts of the globe.  The US-China phase 1 trade deal was helping to boost sentiment.   What we did not expect was a global pandemic scare with the coronavirus that originated in China and has now made its way to Italy and Iran.

To understand Monday’s massive market move and what it means for future returns I turn to the below excerpt and chart from Bespoke Investment Group, one of our trusted research sources:

“It’s hard to find positives on a day when the S&P 500 is down 3.5%, but we’ve at least got some notable stats that are quite bullish for returns going forward.

If the S&P 500 were to close at current levels, today’s 3.55% decline would be the 48th biggest one-day drop since SPY began trading in 1993. (more…)