HFS Headlines

*Student Loan Debt Reaches 1.6 Trillion Now What?

Posted by on Jul 29, 2020 in blog | Comments Off on *Student Loan Debt Reaches 1.6 Trillion Now What?

*Student Loan Debt Reaches 1.6 Trillion Now What?

You just graduated in the middle of a pandemic, you had to have a virtual graduation ceremony, unemployment rates are double digits and now it’s time to pay back your student loans.  Just like paying for college, paying back your debt is loaded with options.

  1. Student Loan Forgiveness is where I would look first. If you work as a teacher, nurse, doctor, government employee, a non-profit, medical technician, or served in the military to name a few, you may qualify for some or all of your student loans to be forgiven.
  2. Next if your loans are Federal Student Loans you may qualify for an Income Driven Loan. This will allow you to pay roughly 10% -15% of your discretionary income towards student loans.  Discretionary income is what you have left after payroll taxes, social security and basic cost of living expenses have been deducted.
  3. You can consolidate Federal or Private student loans into one, some of these loans can graduate the payment to start out low and increase every two years assuming your income will be growing as you continue growing in your profession.
  4. Finally, loans have a standard or default repayment agreement. This is what most people end up using.  In many cases, this is the least expensive option as well.

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Global Asset Allocation Views – Q3 2020

Posted by on Jul 14, 2020 in blog | Comments Off on Global Asset Allocation Views – Q3 2020

Global Asset Allocation Views Q3 2020

2nd Quarter Recap

  • Markets exited bear territory finishing just shy of all-time highs. NBER (National Bureau of Economic Research) finally called the recession when it appears we may already be exiting and entering a new cycle.
  • Energy was the best performing sector recovering from negative futures contracts as speculators were caught needing to settle the physical delivery of oil. Technology finished in second place as investors continued to favor the safety of big tech.
  • As has been the case for the past decade, domestic outperformed international and growth outperformed value. Small caps broke the trend to best the S&P 500 for the quarter.
  • Thanks to quick fiscal/monetary support we appear to have moved into a new bull cycle and have left behind the worries of a bear market rally and a new low.
  • Economic activity continues to rebound though it still remains at contractionary levels. China had a strong PMI number in June and the global economy hopes to build from that strength.

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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

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