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Donating highly appreciated stock is a tax-intelligent way to support a cause you care about and make the most of your dollars.
Cybercrime and fraud are serious threats and constant vigilance is key. While our firm plays an important role in helping protect your assets, you can also take action to protect yourself and help secure your information. The post summarizes common cyber fraud tactics, along with tips and best practices.
During the second half of 2021 the tried-and-true technology stocks that have come to dominate the market pushed the broad indexes to 20%+ gains by the end of the year. A similiar growth story in recent history would be the performance of technology stocks during the 1990’s, and if we went back further to the 1970’s, we could see similar behavior in what were referred to as the “Nifty Fifty.”
Many of our clients run successful businesses both large and small. A common denominator for most is the need to have a talented and motivated workforce whose goals are aligned with the overall success of the business.
In the COVID-19 environment, it is now more important than ever to make a conscious effort to drive participant engagement. To successfully accomplish this, you need to have a well-thought-out employee education plan.
The rampant spread of Covid-19 and a resulting health crisis not seen in 100 years quickly wreaked havoc on our modern economy during the 1st Quarter of 2020.
On March 27th, the House of Representatives approved the COVID-19 bill, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), and President Trump signed it into law. The CARES Act makes targeted changes to provide relief to participants in employee benefit plans. Following are the key provisions in the CARES Act as passed:
We are certainly living during a unique time in our country. The health and safety of our families and the community at large will hopefully be a focus for all Americans. The voluntary and mandatory steps around personal distancing that are key to stem the increase in the number of COVID-19 cases will inevitably take a toll on our economy.
At Compass Advisors our top priority has always been to deliver superior service to our clients. To do that in the current environment, we are taking every precaution possible to protect the health and safety of our team and their families given the ongoing coronavirus pandemic.
While we know that market moves to the downside are unnerving, they are also part of the long-term process of investing.
Conventional wisdom says the stock market takes the escalator up, and the elevator down and from our perspective, the fact that we are in the midst of a 10% decline is not all that shocking given a rise of more than 30% in stocks last year.
An important development in the world of financial planning for both pre and post-retirees was the passing of the SECURE Act by congress which was designed to ease and encourage Americans to save for a sustainable retirement. The Act went into effect January 1, 2020.
What financial, business, or life priorities do you need to address for 2019? Now is a good time to think about the investing, saving, or budgeting methods you could employ toward specific objectives, from building your retirement fund to lowering your taxes. You have plenty of options.
Investment bulletins
The stock market began the year with modest gains, continuing with the general uptrend from 2023 & 2024. However, those gains were quickly unwound as we approached April 1st.
The recent tariffs imposed by President Trump have sent shockwaves through markets, stirring fears of economic instability on a global scale.
The U.S. stock market rally powered forward in 2024. The S&P 500 has increased more than 20% in back-to-back years. U.S. Stock gains remain concentrated, large-cap stocks dominated in 2024, especially growth and technology stocks, and more specifically the so called Magnificent 7 stocks.
Bulletin highlights this quarter: (1) Stocks and bonds continue the 2023-2024 market rally despite a 9% pullback in the S&P 500 in late July and early August. (2) The Federal Reserve rate hiking cycle appears to be over. (3) The Federal Reserve rate hiking cycle appears to be over. Plus our stock market and bond market forward outlook.
The second quarter of 2024 started out with a material decline in stocks during the month of April. The markets declined more than 4% across the board as persistently high inflation worried markets that the Federal Reserve would leave rates higher for longer. However, the slide in stocks was short-lived, and once again it has been technology stocks to the rescue.
The trend of robust gains in the stock market continued for the first quarter of 2024. However, unlike last year, the growth extended to sectors beyond technology.
2023: A Powerful Year of Recovery
The stock and bond markets performed exceptionally well during 2023. Despite a pessimistic tone entering the year, stocks and bonds rallied throughout the year.
The quarter began on a positive note but experienced a downturn in August and September, resulting in the first quarterly decline in 2023. Concurrently with the decline in stocks, there was a notable increase in interest rates, particularly for longer-term bonds.
The recovery in portfolio values continued during the last 3 months as stock gains accelerated during the quarter.
The beginning of 2023 has seen a sharp reversal in leadership in the stock market. All through 2022, growth stock prices declined while value stocks fared significantly better. From the start of the year, the market has been pushed higher by beaten down growth stocks, while at the same time dividend paying stocks and value-oriented stocks have lagged considerably.
2022 began the year on the heels of three historic years of market expansion from 2019-2021. As stock valuations, predominantly driven by Tech, stretched well past their historical norms, supply chain issues indicated that the global scarcity of materials was driving up the prices for common goods. High inflation triggered the Fed to embark rate increases and higher interest rates increase costs of capital for businesses which puts a strain on operations. When you couple this with higher costs of goods and a drop in consumer spending, corporate balance sheets are negatively impacted, and a market repricing unfolds.
The downward trend of stocks continued during the 3rd quarter despite a sizeable mid-summer rally that eventually succumbed to the downward pressures on the market. On June 16th, with a year-to-date decline of approximately 24%, we increased stock allocations as the S&P 500 dipped below 3700. Almost immediately, stocks began to stabilize and move higher. The market wound up increasing 18% over the next two months before once again resuming declines on August 17th.
The experience of going through a bear market is difficult and stirs up significant fear emotions. However, as we detail in this Bulletin, a lot of the damage to stocks has likely already occurred. While it is certainly possible that the market could decline further, it is our opinion that the time to be significantly more defensive has passed.
The first three months of 2022 were not hospitable for long-term investors. Broadly speaking, U.S. stocks, international stocks and bonds all declined during the quarter. A diversified and fully invested portfolio was challenged to find any respite from losses.
For the third year in a row, U.S. stocks achieved significant gains with the Wilshire 5000, an index of the total U.S. stock market, now averaging more than 25% per year since 2019.
U.S. stocks suffered a decline of almost 5% during the month of September. The pressure on stocks increased as investors became more concerned about waning support by the Federal Reserve, higher interest rates and high stock valuations.
U.S. stocks gained strength and momentum during the 2nd quarter of 2021. The Wilshire 5000 index which represents all U.S. stocks increased 8.25% to push 1st half 2021 gains above 15%.
The first three months of 2021 saw continued growth in U.S. equities at a remarkable pace. The Wilshire 5000 index which represents all U.S. stocks increased 6.41%. Continued expansion at that pace would annualize to a gain of more than 25%!
The stock and bond markets in 2020 were crazy just like everything else about 2020! The journey to a significantly positive year for the Wilshire 5000 Total Stock Market was nothing short of remarkable. The wild ride occurred primarily in three extreme phases.
The U.S. stock market achieved significant gains for the 2nd straight quarter following the pandemic induced selloff of February and March 2020. Fixed income also advanced with the overall bond market returning a little less than 1% with municipals and corporates faring better than government bonds.
Almost as quickly as the market deteriorated during February and March of this year, we have experienced a remarkable resurgence during the second quarter. During the past few months, the S&P 500 has erased most of its losses from earlier this year. On the heels of unprecedented Federal Reserve stimulus, the markets are pricing in a return to prosperity….. or at least for technology.
The environment for investing in 2019 proved to be highly accommodating and will likely be remembered as one of the best investing years that many investors have, or will ever participate in.
The U.S. stock market produced modest growth during the 3rd quarter of 2019, while U.S. bonds powered ahead with a return that was double the stock market return.
As the stock market continues to reach and exceed all-time record highs, we are maintaining a cautiously optimistic asset allocation for investment portfolios.
The stock market during the first quarter (March 9th, 2019) marked the 10th anniversary of the current bull market run. U.S. stocks during the first three months of 2019 once again demonstrated just how resilient this bull market is.
After a turbulent end to 2018 seeing the S&P 500 decline over 14% in the 4th Quarter, markets have recovered meaningfully in the early part of 2019. And while we continue to be optimistic about the near-term economy, we are growing cautious about risks to portfolios given the almost 10-year bull market for US Equities.
Press
Compass Advisors has been named to the National Association of Plan Advisors’ (NAPA) list of the nation’s top defined contribution (DC) Advisor Teams with Assets under Advisement of $100 Million.
Compass Advisors has been named to the 2025 PLANADVISER Top Retirement Plan Advisers list, a prestigious recognition that honors retirement plan professionals for their excellence in serving workplace retirement plans.
Compass Advisors has been selected as one of USA Today's "America's Best Financial Advisory Firms 2025," a prestigious recognition highlighting the firm's exceptional performance and client satisfaction.
Compass Advisors has been named to the National Association of Plan Advisors’ (NAPA) list of the nation’s top Defined Contribution (DC) Advisor Teams with Assets under Advisement of $100 Million or more.
“The biggest expense most people will pay in their lives is their tax bill [so] implementing strategies to mitigate your current and long term tax bill will greatly help with wealth accumulation,” said Lauren M. King, MBA, CFP, managing partner at Compass Advisors.
Compass Advisors is pleased to announce their addition to Ascensus’ Elite Advisor program for 2020. The Elite Advisor Group is an exclusive experience for retirement plan focused financial advisory practices that adhere to the vigorous standards of care and partnership associated with Ascensus. The program provides dedicated resources and support personnel for both the advisory practice and their 401(k) Plan clients.
“By joining Compass Advisors and acting as a fiduciary for our clients, I am looking forward to bringing my years of institutional retirement plan consulting experience to the firm and partnering with business owners, helping them build and manage their retirement plan programs that will enable their employees to retire successfully,” said Hyde.