this 2nd Week of July 2020 thoughts
Updated: Feb 4
a trillion dollars here, a trillion dollars there…pretty soon it starts adding up to real money!
The White House Wants Another Relief Bill by the End of July: The White House and Senate are in negotiations on the next round of coronavirus-related spending measures and the Trump administration supports direct payments to every tax payer, an extension of more generous unemployment benefits, and support for small businesses. “We feel confident we’ll have a strong bill but $1 trillion isn’t enough: we need more” says House Speaker Nancy Pelosi. The big question is how stay under $1 trillion as the jobless benefits and stimulus checks would cost about $800 billion alone. ☹ 😊 Why does this matter to you? Helping economy and those out of work get through this difficult time is the good news. The bad news is that taxpayers…AKA YOU…will have to pay for these trillions being paid out. We need to reduce your 2020 taxes with an eye towards your 2030 taxes. https://calendly.com/skyeadv/ask-julie-about Schwab has a terrific SRI section https://www.schwab.com/socially-responsible-investing. Fifteen years ago you began to see socially responsible funds enter your portfolio when we added the Ariel Funds. Then, 12 years ago, I was appointed to the Investment Committee at the Unitarian Universalists Association in Boston and my knowledge base exploded. Spend some time here and you can’t help but feel confident the companies we are investing in will be the leaders both during and after COVID-19. YOU are part of the solution…in Diversity and Inclusion, Governance and Ethics and all things Environmental. Schwab has some of the better examples of socially responsible investing and you will leave feeling hopeful about our future. 😊 Why does this matter to you? Balance the evening news that is not always very positive.
SEC’s Reg BI Takes Effect: Despite a legal challenge and other delays the long-awaited Regulation Best Interest is here. With Reg BI, the SEC created new standards of conduct for stockbrokers. Previously only subject to a suitability standard, brokers are now required to act in “the best interest of a retail customer” by not putting their own financial interests ahead of their clients. Brokers will now have to consider costs when making recommendations, though they are not forced to sell the least-costly option. Under the conflict-of-interest obligation, brokers will have to disclose conflicts that place their interests ahead of their clients. 😊 Why does this matter to you? Novel concept, people who handle your investments now have to disclose if they do put your best interests first. Registered Investment Advisors like Skye Advisors are Fiduciaries, and as fee only advisors, we do this every day.
Major World Events Have Always Impacted Stock Markets: “Everyone has a plan until they get punched in the face” - Mike Tyson. The Great Depression; Abolishing the Gold Standard. World War II; The 1970 Recession; Hyperinflation of the 1970s; Black Wednesday; Black Monday; 9/11; Dotcom Bubble; 2008 Global Financial Crisis; European Government Debt Crisis; Chinese Stock Market Crash; Brexit; COVID 19 and TODAY. Today certainly has an unreal air to it and the gyrations in all stock and bond markets have undermined investor confidence. “Compounding” your portfolio in a “straight-line projection” is incapable of answering this question “Will I Have Enough Money?” The global lock-down continues to throw up important lessons and in particular, it's a useful time to test our thesis about investing and planning for your retirement as a good retirement strategy must hold up, not just in good times, but especially in bad times. Every (wo)man and their dog can create a strategy that works well in a bull market when the values are going up. The real test of an investment strategy is how well it holds up at the worst of times. 😊 Why does this matter to you? One client feels the founder of Timeline App is the most ethical professional in the investment industry: https://www.timelineapp.co/speaker/
While virtual meetings have been possible for years, they were slow to catch on until the pandemic forced advisors to work from home and eliminated the possibility of meeting face to face. As the size of screens and image quality increases some clients will strongly prefer to meet using GoToMeeting or Zoom: they are finding out how effective a virtual meeting can be. One couple recently emailed me that our virtual meeting was one of the best they had since we began working together! Face-to-face meetings will never go away, but now you have a choice: drive downtown and park or enjoy a margarita at the end of the day in your cool, comfortable home. While have adapted in the short term, we are finding we like having choices and being in control of our schedules. 😊 Why does this matter to you? We will spend more “face time” together than ever and booking time with me is so easy with my calendar ap…Calendly.
Questions or want to demo Timeline App? Use this Calendly link and book time on my calendar. Just a few clicks you will be on my calendar!
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