Acknowledging that the coronavirus has resulted in financial hardship for many individuals, Uncle Sam by way of the CARES Act has allowed for temporary suspension of certain rules and penalties for tapping one’s retirement plan this year if one is “qualified” under the Act, meaning either diagnosed or spouse or dependent diagnosed or proof of material adverse financial consequ
In our management of clients’ assets, we use exchange traded funds (or “ETFs”) for the majority of our investments. ETFs are a relatively newer form of a mutual fund which invest generally as passive indexes as opposed to traditional mutual funds which are actively managed. There are thousands of ETFs available which cover just about any type of investment one can think of.
An interesting study from Morningstar shows that the relative outperformance of large “growth” stocks versus large “value” stocks may have reached an important apex in May of this year. The analysis goes back to 1937 and shows that the two other times in which this relative performance reached such an extreme were November of 1939 and February of 2000.
Much of what we do as financial planners involves forward-looking assumptions around things such as inflation, the economy, and financial market returns. One might question how, as planners, we can have any real confidence in making forward projections in the face of high uncertainty, particularly the current environment.