The Caldwell Trust Company Blog

For global markets February was largely a continuation of the positive results generated in January only less so. All major Global and Regional indices are positive for the year for both the global equity and fixed income markets. The synchronization of positive global returns is a departure from 2018.

When you hire an investment advisor, you are putting your financial security in the hands of another person. This is not a decision to take lightly, and you need to consider several things to ensure you are making the right decision. After all, your future financial success depends on the actions of your investment advisor, and you want to make sure that those actions are the right ones. Here are some critical factors you need to consider when making your choice.

If you’re ready to begin investing or to explore your options, partnering with an investment advisor can be hugely beneficial. Not only do you receive expert guidance regarding opportunities to buy AND sell, but you have someone by your side who has experience with the process itself. Unfortunately, there are a number of misconceptions about working with these advisors, which can keep people from experiencing the extraordinary benefits. Let’s explore a few of these misconceptions and put them to rest.

Cash balance plans are growing in popularity, with more business owners giving some consideration to offering them as a retirement plan option. According to the 2018 National Cash Balance Research Report, the number of new cash balance plans has increased 15%, while new 401(k) plans have only increased 1%. In fact, cash balance plans now make up 37% of all defined benefit plans, compared with just 2.9% in 2001.

Global markets rebounded in January recouping some of the losses suffered in Q4 of 2018. All major global and regional markets were positive. Domestically the S&P 500, NASDAQ, and Dow all advanced in the high single digits. The perception of incremental progress on a trade deal with China and a more accommodative Federal Reserve helped boost share prices. Q4 earnings commenced and thus far have largely met downwardly revised revenue and earnings estimates.

As we wrap up 2018, we can’t help but to reflect on the myriad of content we’ve shared throughout the year to help you achieve financial security. We’ve covered everything from estate planning and investing to retirement planning and even protecting your digital assets. With every resource that we create, our goal is that you receive the information, advice and resources you need to make better financial decisions for your future.

Building a nest egg for your retirement years is important, and one of the best ways to do that is by making wise investments. When doing so, however, it’s important to partner with someone you can trust to help you make the right decisions. While you may expect all financial advisors to have your best interest in mind, there is only one type that is legally responsible to do so. They are called fiduciary investment advisors.

If you’ve started preparing for your kids to attend college, you’ll quickly find the costs are no laughing matter. The costs of college fluctuates year by year, with expenses consistently rising. According to The College Board, the average price of tuition and fees have gone up more than $7,000 over the past 10 years at four-year private colleges and universities. That figure has outpaced inflation by more than 3 percentage points. In fact, the cost in 2018-2019 is about $9,716 for an in-state public college, and about $35,676 for private colleges.

While one-third of all millennials say they invest in the market, more than half of Millennials, who lived through the Great Recession, claim they will never be comfortable with investing in the stock market. Along with discomfort, lack of funds and poor financial literacy keep this generation from trusting the market. However, investing is a proven way to bolster financial security long-term, and there are ways to equip Millennials with the tools and knowledge they need to be financially secure now and later on in life.

Executive Summary:

• Domestic equities decline meaningfully
• Global markets generally fare worse
• Equity markets repricing after rates rise

Let’s dispel some topical misperceptions regarding last week’s sell-off in the domestic equity markets.