The growth vs. value debate has been pretty one-sided in 2022, with value outperforming growth for a sustained period for the first time in almost 15 years. However, the debate is heating up as investors begin to consider whether the pendulum will swing back to growth if inflation and interest rates decline in 2023. In this week’s Weekly Market Commentary we look at the factors driving value’s 2022 outperformance, the technical trading setup for growth and value, and what to look for in the coming months. Value vs. Growth – Value Takes 2022 One equity market debate discussed frequently in the LPL Research Strategic & Tactical Asset Allocation Committee (STAAC) is the growth vs. value style reversal experienced the past 12 months. Until November of last year, value had underperformed growth for nearly 15 years. Since then, value has outperformed growth for the longest sustained period since 2003–2007. How long might the current period of value’s outperformance last, and what are the catalysts that could end this cycle and pivot the market’s favor back to growth? First, a bit of background. Value and growth stocks are simply stocks that exhibit greater “value” characteristics (e.g., comparatively inexpensive relative to earnings) or “growth” characteristics…
After the Great Recession hit, far too many Americans found themselves without any savings to get through higher prices caused by inflation and the hardships of unemployment. With recessionary periods approaching, it's important to learn from our past mistakes. Getting into some simple saving habits can really help you down the line. Social Security and unemployment checks are a lifeline to many, but usually not enough to maintain a decent living standard. The rule of thumb for emergency savings is three to six months’ worth of living expenses. In light of the economic slump and the sheer number of long-term unemployed workers, most advisors tell clients to save even more, at least six to 12 months of expenses. Make Savings Automatic One way to do this is to set up an automatic deduction program through your employer, or through your bank. You can set up a program that transfers a certain amount from your checking account to your savings. Once established, you can change it, but you probably won’t (because we all get too busy and it’s easier to keep things as they are). Also, once you learn to plan your finances around the remainder of your paycheck not transferred…
Did you recently add a second comma to your bank balance? Has a recent financial event raised your net worth to the next level? It's an exciting time, whether it's the result of your long-term goals (e.g., from the sale of a business), a windfall transfer of wealth, or a key promotion. You're probably already considering how to protect and manage your wealth. Keep in mind that this article is for informational purposes only and is not a replacement for real-life advice. Consult tax, legal, and accounting professionals before modifying your financial strategies as your income changes. This article was written to provide insights into a few related factors you may wish to consider. Estate Strategy on a New Playing Field You may already have an estate strategy in place. However, reaching a new level of wealth may be an excellent time to revisit your approach. More wealth can mean a larger estate and more complex estate issues. For example, it may be time to consider a living trust. You create a living trust while alive and fund it with the assets you choose to transfer therein. The trustee (typically you) has full power to manage these assets. But using…
With the recent and prolonged market volatility and economic uncertainty, the demand for financial advice is at an all-time high. And when markets are unpredictable, as they have been in recent years, that’s when investors most often seek financial advice to cope, according to a Cerulli report. The report confirms that we’ve experienced three cycles of volatility throughout the last decade, and that in every year following the volatility, there’s been a spike in demand for advisor guidance. As further proof of the need for guidance from a trusted financial professional, in 2021, investors who traditionally self-directed their investments reported reaching out for advice for the first time. Believe it or not, volatility is something that can be embraced – not feared – with a long-term investment horizon. Below are five reassuring facts around the markets that may help you keep your eyes on the horizon, weather the storm, and come out the other side stronger for it. Here are 5 reassuring facts around market volatility: 1.) Volatility may be uncomfortable … but it’s normal. Just like muscle fatigue is part of any intense training program, volatility is an unavoidable part of the investment process as well. It’s easy to…
https://youtu.be/ktTuZ5RgQS0 How long has it been since you’ve reviewed your Medicare policy? With open enrollment fast approaching, there are a few questions you may want to ask yourself before you renew, add, drop, or switch coverage. Have you switched doctors, or is your doctor no longer accepting your current plan? Or maybe your prescription drug needs have changed, and your Medicare plan doesn’t cover everything you need. Maybe you’re paying too much for your coverage and need to make adjustments. If you’ve reviewed your Medicare plan and realized you don’t quite have the coverage that you want, you can make changes during the fall open enrollment period. From October 15 through December 7, 2022, you can add, drop, or switch Medicare plans. Any changes will be effective on January 1, 2023, as long as any changes are submitted by the deadline. Reviewing your Medicare coverage is an important part of your financial and insurance strategy. If you have any questions or need help navigating this process, I’m happy to help! You can reach me for more information by phone at 610-871-3500 or by email at firstname.lastname@example.org.
If you're like many small business owners, running your own business is an all-consuming endeavour. In the face of everyday demands, choosing a retirement strategy for your business can become a casualty. The idea of establishing a plan could evoke worries about complicated reporting and administration. If this sounds familiar, then you may want to consider whether a Simplified Employee Pension Individual Retirement Arrangement (SEP-IRA) may be right for you. Click here to read more. At Capital Planning, we provide retirement planning with purpose, so you can focus on enjoying life, safe in the knowledge you’ve made the right financial decisions. Click here to learn more about our Retirement Planning services.
Learn about what risk tolerance really means in this helpful and insightful video. Click here to watch now At Capital Planning, we provide investment planning with purpose, so you can focus on enjoying life, safe in the knowledge you’ve made the right financial decisions. Click here to learn more about our Investment Planning Services.
Forty-four percent of American women are the primary breadwinner in their house. Yet only 10% of women feel very confident in their ability to fully retire with a comfortable lifestyle. Although more women are providing for their families, when it comes to preparing for retirement, they may be leaving their future to chance. Click here to keep reading this article. At Capital Planning, we provide retirement planning with purpose, so you can focus on enjoying life, safe in the knowledge you’ve made the right financial decisions. Click here to learn more about our Investment Planning Services.
Each month, you settle down to pay bills. You pay your mortgage lender. You pay the electric company. You pay the trash collector. But do you pay yourself? One of the most basic tenets of sound investing involves the simple habit of “paying yourself first”–in other words, making your first payment of each month a deposit into your savings account. Click here to keep reading this article. At Capital Planning, we provide foundational planning with purpose, so you can focus on enjoying life, safe in the knowledge you’ve made the right financial decisions. Click here to learn more about our Foundational Planning Services.
At Capital Planning Wealth Management, one of our core values is Family. As a family-owned firm, we understand what it means to care for one another, and we apply that same philosophy to how we care for our clients. As part of this commitment, we like to bring our clients and their families together from time to time. On a perfect June evening, the Capital Planning team were pleased to host some of our valued clients and their families at the Lehigh Valley Iron Pigs v Norfolk Tides baseball game, at Coca-Cola Park. The weather was fantastic, and everyone enjoyed a picnic buffet of hamburgers, fried chicken, pasta, baked beans, chips and cookies – as well as some entertaining baseball! The Norfolk Tides won 10-7 in the end, but the night finished with a colorful fireworks display and everyone went home happy. If you’re looking to work with a financial advisor who places a high value on the importance of family, you can get in touch with us on (610) 871-3500, emailing email@example.com, or dropping into our offices at 4505 Saucon Creek Road, Suite 100, Center Valley, PA, 18034.
Planning for an unpredictable future can feel overwhelming, with so many decisions to make it can be hard to know if you're going to have enough money to support yourself through retirement.
In this guide, experts from the Capital Planning Team have simplified the 10 steps you can take, so that you can live a life without worry, sfe in the knowledge that your financial future is secure.
Estate planning focuses on three key areas: Documenting your wishes, Stewardship Goals and Tax Efficiency.
At Capital Planning, our experts can work with an attorney to help you document your wishes and protect your family. We can guide you on the benefits of a Will, Power of Attorney, Advanced Health Care Directives (Living Wills) and Trusts.
Stewardship planning can help you protect your heirs from potential risks such as creditors, divorce, or poor money management skills. Stewardship can also help you meet your goals for charitable giving and life’s passions.
Tax efficiency planning can save your family upwards of 50%+ in taxes when combining estate tax, inheritance tax, and capital gains tax planning strategies.
If you would value advice on any of the above, book a discovery meeting today and speak with one of our advisors about independent financial planning with purpose, so you can focus on enjoying life.
Many people are curious to understand the potential tax benefits available to them. Questions such as “Is a 529 plan right for me and my goals?” are common, and at Capital Planning, we’ll be happy to guide you on this and any other questions you have.
We can work with you to conduct an analysis of funding needs, and provide recommendations as to investment allocation, ultimately helping you to select the right investments for your goals.
Book a discovery meeting today and speak with one of our advisors about independent financial planning with purpose, so you can focus on enjoying life.