In an effort to enhance transparency and combat financial crimes such as money laundering and terrorist financing, The Corporate Transparency Act (CTA) was passed in 2021 and went into effect on January 1, 2024.  Central to this legislation is the mandate for entities to disclose beneficial ownership information, what is believed to be a crucial step in the fight against financial crimes and money laundering, to the Financial Crimes Enforcement Network (FinCEN). By mandating the disclosure of beneficial ownership information, the legislation aims to enhance accountability and integrity in business operations. Entities impacted by the CTA must take proactive measures to understand and fulfill their reporting obligations.

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Scammers target people of all demographics and often succeed because they catch you off guard. Practicing good security habits can help reduce your chance of becoming a victim. Here are nine best practices to better protect yourself and your loved ones.

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Talking to kids about money can be awkward, but it’s important. A recent T. Rowe Price survey showed that parents consider topics like death and politics easier to discuss with kids than saving for a goal. 85% of parents wanted to avoid the issue by signing their kid up for a personal finance course.

While signing your kids up for a class will help, your kids will typically emulate your behavior.

“Parents are the number one influence on their children’s financial behaviors,” Beth Kobliner, author of “Make Your Kid a Money Genius,” told Forbes. “It’s up to us to raise a generation of mindful consumers, investors, savers and givers.”

Here are what we believe are important financial lessons to teach your kids at different ages and stages.

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You’ve likely seen headlines about the recent failures of Silicon Valley Bank and Signature Bank, commercial banks that were taken over by federal regulators on Friday and Sunday. While the government is taking steps to reassure investors, the two collapses have understandably drawn nationwide concern.

Our initial understanding and analysis indicate that many of Silicon Valley Bank’s (SVB) and Signature Bank’s issues resulted from one or more vulnerabilities in the way their bank was managed: (more…)

As we enter 2023,  here are 3 things to consider as you manage your financial life.

1) Revisit your annual and monthly savings goals

• • 2022 was a year of rising expenses, but higher prices only emphasize the importance of making sure you are saving enough for retirement or, if you are already retired, making sure you aren’t distributing too much from your retirement savings. Setting an annual savings/distribution goal is a great place to start. However, to make your annual savings or distribution amount a practical goal, take some time to understand what will be needed on a monthly basis to hit your goal. Reflect on 2022 and see what monthly expenses could be trimmed to increase positive cash flow. There are multiple tools available to help itemize your spending and help you determine where to cut back. It may surprise you how much of your monthly spending is going towards things that you don’t value enough to continue paying for. We often hear about how surprised people are when they add up how much they are spending on monthly streaming services or earing out. Once you set a goal for how much to pay yourself each month, consider what types of savings vehicles might be the most effective.

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The third quarter proved to be difficult for the market and portfolios, relinquishing all of the market gains made in July and August during the last 5-6 weeks of the quarter. All the major stock indices, along with the broad bond market, closed out the quarter slightly lower than the end of June. Historically during these periods of volatility, we have relied on bonds to reduce the downside of the stock market. While most of the bonds have accomplished this, they have also suffered losses due to the Fed raising interest rates so aggressively. So, what is causing so much volatility in the markets this year? We believe it is the uncertainty around:

• • Inflation,
  • the resulting rate hikes by the Fed,
  • the conflict between the Ukraine and Russia, and
  • the upcoming mid-term election.

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Last week our team had the opportunity to attend Raymond James’ national conference in Nashville, Tennessee. Due to COVID, this was the first time in three years that we were able to meet in person, and we all appreciated the ability to hear market and economic updates from industry experts, share best practices with other leaders, and gain wisdom on how to best serve our clients. (more…)

The market so far in 2022 looks vastly different than the 18-month run which began in late March 2020.  The increase in volatility likely has you paying more attention to the headlines and your monthly investment statements.  It is important to remember, though, that when you have a diversified portfolio designed for longer-term goals, historical data shows that one of the worst mistakes investors can make in volatile markets is getting out of the market.

So, what is happening this year that is making the markets more volatile than we have seen in at least two years?  Here are some of the uncertainties that the market has been digesting and pricing in since January:

• Inflation: I’m sure you are feeling the increase in grocery and fuel prices, among other things.  The return of a 50-year low unemployment rate, a significant amount of extra cash that was pumped into our economy during the pandemic, and the prolonged supply chain issues we are experiencing has driven prices up, thus creating the highest inflation we have experienced in approximately 40 years.
• Increase in interest rates: The Fed raised rates 0.25% in March, and we expect another 0.5% increase in May and June, with 3-4 additional increases later this year.  Because inflation has increased so significantly over a short period of time and the Fed has realized that it is more “sticky” inflation than it originally hoped, they have changed their timing for increasing interest rates dramatically over the last 6-8 months.
• Russia-Ukraine conflict: Russia’s contribution of energy and food products to the world economy are contributing to the inflation in oil and food prices.  With many questions regarding the length of this conflict or the result, the markets are also pricing in this ambiguity.

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There has been a recent surge in the popularity of Health Savings Accounts (HSA) correlating with the rise in number of high-deductible health plans. When talking to clients and colleagues, I often find that many are unaware of the extent of the features and benefits that Health Savings Accounts offer. I’ve often referred to it as one of the best “deals” in the current tax code but am surprised at how few people use Health Savings Accounts to their full capability.
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The talking heads can’t stop talking about it: Inflation. While much of what the “news” says is exaggerated, lacking context, and meant to keep you coming back for more, there is no denying we are experiencing higher inflation than what we have experienced in a long time. You have probably noticed the grocery bill go up or that it costs more to fill up your car recently. Small business assistance through PPP loans/grants, stimulus checks, and Federal reserve bond buying have all lead to a dramatic increase in the number of dollars in our economy. Add to that our historically low interest rates and supply chain issues stemming from the economic shutdown in 2020, and you have a classic recipe for inflation. Everything I just listed as a cause for inflation is probably out of your control, so how should you respond?

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Covid-19 and fears about the election, among other events of 2020, disrupted the U.S. economy and brought the longest bull market run in history to an end. If the volatility driven by continued disheartening news caused you to lose sleep, you would not be alone. Even more surprising for many is that almost a year later we find the market hitting new highs and there is talk of a potential economic recovery in 2021. Many investors experienced their first bear market, or their first one in a while. As a reminder, bear markets are defined as declines of 20% or more from the most recent high, while bull markets are increases of 20% or more from the bear market low. So, what lessons can investors learn from 2020 and the global pandemic? (more…)

As if we needed more negative news in 2020, recent FireEye and SolarWinds cybersecurity attacks targeting the U.S. government and Fortune 500 companies are garnering significant media attention. However, there is some good news. Following the firm’s internal investigation, the Raymond James Cyber Threat Center (CTC) determined that Raymond James data and systems have not been impacted by this attack. However, we encourage you to take the following precautions to ensure the protection of your personal information with other U.S. entities and government agencies.

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There seems to be constantly swirling information on when to refinance a home mortgage. Amid the volatility and craziness of 2020 came a significant drop in mortgage rates, leading to an up-tick in home purchases and mortgage refinancing. While you may be hearing about friends and family going through the process of refinancing, you must determine if it is a good move for YOU and YOUR family. Here are a few reasons you may want to consider refinancing:

• Cash flow: cutting the interest rate on a mortgage can reduce your monthly payment
• Debt consolidation through a cash-out refinance
• Eliminating the need to pay mortgage insurance by “walking into equity” through a higher appraisal
• Locking in a fixed interest rate for those with an adjustable rate mortgage (ARM)

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SEC Regulation Best Interest: Important Disclosure Documents

 

The Securities and Exchange Commission (SEC) recently adopted new regulations, including Regulation Best Interest, which we believe aligns well with our longstanding core value of putting clients first.

Effective June 30, 2020, all broker-dealers and investment advisers must provide clients with important disclosures to help with their investment decisions. Therefore, in the coming weeks, you will receive a disclosure package from Raymond James that includes two new disclosures:

• Form CRS (Client Relationship Summary) – A two- to four-page document that describes accounts and services available as well as fees, charges and potential conflicts of interest associated with certain account types.
• Important Client Information – An approximately 75-page booklet that provides additional details about the topics addressed in Form CRS, as well as further information regarding available investment products and services.

While no action is needed, we wanted to make sure you knew what to expect.  We are here to answer any questions you might have. In the future, you may receive the Form CRS again on some occasions based on certain investment activities such as opening another account. The SEC wants to ensure investors are aware of available account choices as they are making decisions. By June, these disclosures will also be available on raymondjames.com/legal-disclosures.

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A recession is defined as “a period of temporary economic decline during which trade and industrial activity are reduced, generally by a fall in GDP in two successive quarters.” The recent estimate documenting decline of GDP in the first quarter of 4.8% was, in part, due to the response to the spread of COVID-19, as governments issued “stay-at-home” orders in March. This led to rapid changes in demand, as businesses and schools switched to remote work or canceled operations, and consumers canceled, restricted, or redirected their spending. It is highly likely that we will see even more significant negative GDP results for the second quarter, which will officially put us in a recession. (more…)

What Should You Do with That Refund You Receive from Your Child’s College?

While the severe volatility of the stock market has calmed thus far in April, we know that COVID-19 has created adjustments for each of us in ways we could not have imagined two short months ago.  For us, this change in routine has made time feel like it’s slowed, and the lack of planned activities has provided a break in a typically busy spring schedule.

One big adjustment in the Harris household has been welcoming our first born back home from college well before we expected.  Although we have enjoyed seeing Bryce daily, we know he wishes he could still be enjoying the true college experience. He is missing the in-person lectures and time with his friends, but he has had a great attitude about the loss of his time on campus. I know many other families throughout the country are having similar experiences. (more…)

Protecting Your Financial Health in the Pandemic Era CARES Act

The COVID-19 pandemic has caused turmoil in the market in ways we have not experienced in a long time and is making financial decisions more difficult than usual. Unfortunately, there are people in this world that see this as an opportunity to prey on the vulnerable. We want to assure you that one of our primary focuses is the protection of our client’s data and communication. We addressed some of the active steps we and Raymond James take back in January (link) and felt it would be prudent to provide you with some additional things you can look out for in the coming months to protect yourself: (more…)

Highlights and Action to Consider from Newly Passed CARES Act

 

As you have likely heard, lawmakers agreed last week on a massive stimulus package that will offer tax relief to both businesses and individuals.  President Trump signed the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) into law on Friday, March 27th.  This is a $2.2 trillion stimulus package that has many hopeful that it can help the country with a massive cash infusion as we experience a significant economic slowdown due to the effects of the virus. (more…)

Fiscal Stimulus: What’s Been Done and What’s in Progress?

We are happy to report that our team remains healthy and hope this finds each of you as such.  It has become clear to us that practicing social distancing is important and will help reduce the impact and time required to combat Coronavirus and allow our economy and market to more quickly reengage in growth.

The impacts of the Coronavirus continue to cause an extremely fluid situation, and our team is monitoring the updates regularly.  We are cognizant that you are likely being bombarded with information, but our goal is to provide regular updates in a clear, concise format.

We are encouraged by some of the news this week regarding the potential of drugs that may help lessen the impact, combined with additional restrictions on social interactions geared to flattening the curve. (more…)

10 Things You Should Know About Bear Markets

Olympic athletes are at the peak of their careers, but even they need rest days to stay healthy. Sometimes financial markets need to reset from record-setting performance, too. Here’s what you need to know about bear, or down, markets. (more…)

Stocks “Spring Forward” Into Worst Trading Day in 10* Years

First let us say, rest assured, we are watching the events and monitoring this situation in real time. We know the current headlines bring a lot of uncertainty, and the normal reaction is to want to “do something” to feel like we have better control (especially when it impacts our money). We want to share with you our thoughts of what is happening and why it is important to stay the course, with the hope that it reminds you of the work we’ve done to determine your risk tolerance and build your portfolio accordingly.
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Concern for Coronavirus Contributes to Market Volatility

Increasing concern for the seriousness of a coronavirus in China has rattled global equity markets.

Referred to as the Wuhan coronavirus for the Chinese city where it is thought to have originated, the respiratory illness has already taken a harsh toll in China. More than 80 people have died and thousands of cases have been confirmed, according to multiple news reports, although the majority of cases remain unreported, Raymond James Healthcare Policy Analyst Chris Meekins said.
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How Raymond James Works to Protect You

With geopolitical tensions rising, the headlines may have caught your attention, so we want to proactively reach out to explain what Raymond James does to protect you by keeping your information secure.

Unfortunately, cyber threats aren’t new, and we’ve invested considerable financial resources and personnel to stay ahead of increasingly sophisticated threat actors. In fact, the firm has dedicated and certified information security analysts as well as advanced security infrastructure monitoring your accounts 24/7 to detect and defend against signs of tampering, unauthorized account activity and potential malicious intrusions.

And that’s just the start of the measures we take to protect valued clients like you. Here’s a look at some of the precautions we’ve put in place behind the scenes to further protect your information. (more…)

Why Wait? Get 2020 Started Right by Ending 2019 Strong

We are just days away from 2019 being in our rearview mirror. The holiday season only seems to speed things up and before you know it, we will be well on our way into 2020. In the final days of this year, we wanted to leave you with a list of 8 things to think about and some possible to-do items with the goal of setting you up for a great 2020.

Reflect

Take a moment to look back at the year to see what you accomplished, who you met or touched the lives of, and how you are different than you were at the beginning of 2019. Reflect with a focus on growth and don’t beat yourself up over the things that you didn’t accomplish. Instead, determine what held you back and come up with an action plan of how you will overcome that in 2020. (more…)

Equities Feel Heat as Yield Curve Inverts

 At the end of July, the Federal Reserve (Fed) cut short-term interest rates by 0.25%, buoying equity markets. This week, investors are riding out short-term volatility as Wall Street cheered the delay of additional tariffs on Chinese goods (although trade uncertainty remains), then fell almost immediately on news of an inverted yield curve between 2- and 10-year Treasury bonds. The 3-month to 10-year curve has been inverted since May, often seen as a precursor to an imminent downturn. (more…)

As tax time approaches be mindful of scams.

Tax season is one of the most active times of the year for identity theft and targeted phishing attacks. With the number of scam phone calls on the rise here are a few quick steps you can take to keep yourself safe. 

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In Light of Recent Market Fluctuations

It’s natural for times of market volatility to bring up feelings of apprehension and uncertainty for some investors. Due to recent market fluctuations, we recognize that there is a lot of “noise” in the media.  We want to ensure that while we listen to the“noise”, we are staying grounded in facts/data. Since the number of people that have reached out to us are limited, we are hopeful this means that we have kept you well informed and knowledgeable about what to expect with the market and that you are committed to the long term plan that we have in place.

In our 20+ years of experience, we’ve seen market fluctuations happen time and again, but it can be difficult for investors to get comfortable with the up and down cycles. Thankfully, those of us who study the markets know that pullbacks and corrections are necessary to sustain a healthy market and that,over time, the market has experienced positive growth. In fact, over the last 85 years, the S&P 500 has been positive over five-year rolling periods 86%*of the time.

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Volatility Dominates, but Economic Data Remains Healthy

Despite the current market turmoil, several factors support future equity growth, says Chief Investment Officer Larry Adam, CFA,CIMA, CFP®.

December 5, 2018

Equity market volatility continues to dominate the investment landscape. However, note that the volatility has been in a fairly contained range over the last two months, and the midpoint of that range is not that far from Tuesday’s close. Additionally, over the last few weeks, several positive factors have continued to support our expectations that equities will move higher by year-end and into next year. A few positives include:

Healthy economic data.

Consumer data has remained strong with better-than-expected personal income, personal spending and vehicles sales. Manufacturing data has also been better than expected as reflected in the strong ISM manufacturing reading, which remains well above 50 at 59.3.

Near-record business and consumer confidence.

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April, 2018

Investment Strategy: “Secular Bull Markets”

By Jeffrey D. Saut, Chief Investment Stratgist at Raymond James 

 

“In secular bull markets most of the surprises come on the upside.”

. . . An old stock market axiom

At Raymond James we offer something called a BIO visit. The acronym BIO stands for “by invitation only.” It means that clients can come to our campus in Saint Petersburg and spend a day or two meeting with senior management of this firm, select analysts, portfolio managers, investment bankers, financial planners, me . . . well you get the idea. Over the past few weeks we have done a number of these BIO visits and the ongoing question from the clients has been, “What do you mean when you say ‘secular’ bull market?” It is a valid question because most folks believe a 20% rally, or a 20% decline, represent bull and bear markets. However, that is not what a secular bull market is. Secular bull markets last 14+ years and tend to compound money at a double-digit return per year. The secular bull market of 1949 to 1966 compounded money at 11.41% per years basis the S&P 500. The 1982 to 2000 secular bull market compounded money at 14.38% using a 20-year rolling return (Chart 1). Were there pullbacks in those secular bull markets? You bet there were, but it didn’t stop the secular bull market. And there, ladies and gentlemen, is the most misunderstood point about bull markets. Most pundits cut the 1949 – 1966 Bull Run off in 1956 when the stock market took a ~21% “hit” because Egypt attempted to take over the Suez Canal, but as can be seen in Chart 2 that did not stop the bull market. Fast forward to the 1982 – 2000 secular bull market, which many participants cut off in 1987 due to the crash, but hereto that did not stop the bull market (Chart 2). We think the current secular bull market is going to be bigger than both of those secular bull markets.

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December, 2017

The Tax Cuts and Jobs Act legislation was signed into law on December 22, 2017. The Act makes extensive changes that affect both individuals and businesses. Some key provisions of the Act are discussed below. Most provisions are effective for 2018. Many individual tax provisions sunset and revert to pre-existing law after 2025; the corporate tax rates provision is made permanent. Comparisons below are generally for 2018.

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September, 2017

Equifax, one of the largest credit reporting agencies in the nation, announced last week that it suffered a major cyber breach. The breach is currently estimated to affect approximately 143 million personal records, nearly half the population of the United States.

To identify if you are part of the breach, Equifax has provided a website: Click here to Check Potential Impact . Further, they are offering free credit monitoring.

NOTE: Before you decide to enroll in TrustedID Premier, it’s important to understand that you may be waiving your rights to a future settlement. We recommend you read all disclosures/fine print before enrolling.

If you ultimately elect to use Equifax credit monitoring service, you will notice that the enrollment will start at a later date. In the interim, closely monitor your accounts.

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This all-important retirement income source is tricky, especially around times of transition.

 May, 2017

 Social Security is complicated. This world of confusion stems from all the factors that have to be accounted for, including your age, income, marital status, health and life expectancy. With Social Security accounting for nearly 40% of most Americans’ retirement income, it’s important to get your filing decision right or as close to it as possible.

Don’t worry, it can be done. Specialized software can help illustrate the likelihood and potential impact of various choices, but you’ll want to start the planning process well before you file a claim. Preparation is key.

Three Main Types of Benefits

1. Benefits for Workers

You must have worked and contributed to the system for at least 40 quarters to be entitled to what’s known as your Primary Insurance

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You’ve received the ominous message that your account has been compromised. Now what?

 Message: We have detected unusual activity on your account. Did you authorize this transaction?

At first you think the text from your credit card company is a mistake; then reality sets in. You may have been hacked. Your mind reels as you wonder what information the thieves were able to access and if your identity has been stolen. Sadly, this scenario is all too common. The Federal Trade Commission reports that 11.7 million people find themselves as victims of identity theft every year.

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Andy Zolper, Chief IT Security Officer, Raymond James, provides suggestions for how investors can improve their personal computer security.

Investors increasingly use their personal computers to access and manage their finances, making computer security more important than ever. Follow these simple tips from Andy Zolper, Chief IT Security Officer, to help secure your computer and protect your personal information. (more…)

At their December 14th meeting, the Federal Open Market Committee raised the federal funds target rate to between 0.50% and 0.75%. The 25 basis point increase was widely expected by financial market participants. Senior Federal Reserve officials’ revised their projections for future rate increases. There’s still a wide range of opinion, but the median forecast for the number of rate hikes in 2017 edged up to three (versus two in September). Raymond James’ Chief Economist Scott Brown cautions investors that the dots in the dot plot are not a plan. They are but an expectation. Actual Fed policy moves will depend on the economic data, with a focus on the job market and the inflation outlook. (more…)

Last Thursday, the United Kingdom (U.K.) voted to leave the European Union (EU), in a somewhat surprising move. The markets’ immediate reaction was less surprising. Markets seemingly anticipated a “stay” decision and had rallied in the days prior to the referendum, but started to decline after the 52% to 48% vote went the other way. Given the unanticipated decision, it is not astonishing that the British pound fell sharply – briefly to a 30+ year low against the U.S. dollar – and the U.K. equity market followed suit. American equity markets were down about 3% on Friday, while international equity (e.g., Germany and France) and currency markets declined more. Many investors, predictably, turned toward what they deem to be more stable investments like U.S. Treasuries and gold. (more…)