When you think about it, investing is a lot like life: some years are great, some less so, but at the end of the day it’s of utmost importance to keep looking forward. In both endeavors we learn from our triumphs and mistakes, and we use that knowledge to keep getting better as we go. 2015 was a lot like 2011: a year when the stock market was rather volatile and did not offer much by way of positive returns.1 The U.S. and global economy grew but earnings felt some downward pressure from the Energy sector;2 the Federal Reserve raised interest rates for the first time in nearly 10 years;3 the Chinese economy started to show signs of slowing; Europe is showing signs of recovery, but remains fragile. Nothing seems alarming or wrong with the global economy – it just has that “middle of the road” feeling. But it could get better from here. Below, we’ll use charts to take a look at where the markets stand now and how economic growth is shaping up around the world, and we’ll offer some insights as to what might be ahead for investors in 2016. The message overall: stay positive. [+] Read More

We’ll admit it: creating a comprehensive estate plan is not the easiest thing in the world to do. In fact, it usually involves a great deal of time, planning, and in some cases can come with a price tag. But that does not make estate planning any less important to your financial future! Spending adequate time on your estate plan can mean having your assets distributed the way you want them distributed, and it can save your family time and money and help them avoid the hardships that often accompany estate settlements where plan documents are unclear (or non-existent). Enter Estate Planning 101, your guide to the estate planning basics you need to get started. Creating a comprehensive estate plan takes time, and your plan is subject to change over the years as your family and financial circumstances change. Our goal is to give you a starting point by outlining some of the basics. What is an Estate Plan? An estate plan creates a documented approach for how your assets should be distributed after you pass away (or become unable to make your own financial decisions). Many folks may believe that an estate plan is only necessary for the very wealthy, but that is not necessarily the case at all. [+] Read More

Previously, we discussed ways to reduce your taxable income by maximizing your contributions to tax-deferred accounts like 401(k)s and SEP IRAs. This is a great tax strategy, but it’s not the only strategy for you to consider. We’d like to continue that discussion with another strategy for reducing your taxable income: switching from mutual funds to separately managed accounts (SMAs). After all, in the end, it’s not how much you earn that matters most. What matters is how much you manage to keep. Before we get into the tax advantages of Separately Managed Accounts, let’s define them and learn about how they’re different from Mutual Funds. [+] Read More

Tax bills are on the rise: it now takes the average American until April 24th each year to work enough to pay off his or her share of local, state, and federal taxes, as calculated by the nonpartisan Tax Foundation.1 With proper planning, however, you can reduce your income tax burden by maximizing contributions to tax-deferred accounts. This is a common tax-reducing strategy, but investors often underuse it. [+] Read More

2015 has been a challenging year so far for many asset classes, but Emerging Markets and Commodities are two categories in particular that have felt pronounced downward pressure throughout. Emerging Markets (as measured by the iShares Emerging Markets Index ETF, ticker EEM) are down around 10% year-to-date through October 20,1 and commodities have fared even worse—in the third quarter prices cratered, with Brent Crude Oil and West Texas Intermediate down -23.6% and -23.7%, respectively, and with copper -10.7%, gold -5%, and silver -7.5% all losing ground as well.2 The questions on many investors’ minds are: is the slump over? Are these attractive levels to buy-in to Emerging Markets and commodities? [+] Read More

National politics are set to take center stage of media coverage, gripping the minds and TV sets of many American households. With political TV ad spending expected to eclipse $4.4 billion in this cycle,1 however, and with politicians on both sides jockeying early for a chance to secure the nomination, it feels like the elections are already upon us. With over a year to go for the presidential election, we’d advise you to buckle up – because it’s only going to get more intense from here. To note, WrapManager is not taking a political stance with regard to elections – whether Democrats or Republicans control the White House and/or Congress is up to the voters. Our concern is the market and the economy, which while affected by politics, is not wholly controlled by it – there are plenty of other variables to consider. In the past, election outcomes have formed patterns in the stock market, which may offer us clues for what to expect as the race takes shape. We’ll take a look at a few of those below. [+] Read More

After recent financial ups and downs, managing market risk is on investors’ minds. Volatility in the markets can make people nervous, but it’s important to remember that risk is always present when it comes to investing. Even conservative investments like certificates of deposit (CDs) carry the risk of inflation. And yet, investing is a very important component for growing your wealth over time. How much should you worry about managing market risk? What can you do when the market becomes exceptionally volatile? [+] Read More

No matter what your political views on the Affordable Care Act, it is at least agreeable that the new law is changing the nature and structure of healthcare in this country – who is eligible (everyone), how it gets paid for, how insurance companies and hospitals negotiate rates, and so on. If you’re a doctor reading this article, then you know first-hand how the new law has changed the way you do business, and you might even be anticipating more changes in the future. Do one or all three of the situations below apply to you? Quality metrics put in place under the Affordable Care Act are taking up an increasing share of your time, detracting from the amount of time you can spend seeing patients (making more revenue) and attending to your personal matters (like your finances)1 [+] Read More

The last few years have been fairly “steady as she goes” for the U.S. stock market—the bull market had gone over 1,400 calendar days without a 10% correction, which marked the third longest such streak in half a century.1 But that changed very quickly from August 18 – 25, when the market fell over 11% in just six trading days.2 The steepness of the drop and its rapid onset left many investors concerned, perhaps even wondering if this was the beginning of another prolonged downturn like 2008. If you’re considering making changes to your portfolio out of concern over the volatility, or for one of the four reasons below, we’d encourage you to take a moment to gain some perspective before making a big change. If your long-term goals have not changed, but you are considering making significant changes to your asset allocation, there is a chance emotion may be getting in the way. [+] Read More