Notes from McLaren

This is a short story about money, happiness, and the choices we make in pursuit of both.

Our team aims to build portfolios that we believe are robust against a wide range of economic scenarios. Rather than time market swings, or “go to cash”, we believe that both up markets and down markets provide opportunities for companies to continue to find profitable markets, grow opportunities, and increase their value to their shareholders. We are always available to talk about the specifics of your portfolio, and any question you may have.

The estate plan is an integral part of the financial planning process. During life, it provides guidance when you can no longer make decisions because of disability or incapacity. When you pass away, it sets the road map for wealth transfers, guardianship of minor children, and the legacy you wish to leave behind. A well-drafted estate plan clearly outlines your future intentions, promotes family harmony, and protects your wealth. Without a plan, your final estate could result in family conflicts and costly legal actions.

The investing universe is a continuously changing place, and before the ink on this note dries, it will likely look different. What happens next is uncertain, but in the past few months we’ve learned the lessons of another cycle, and those lessons seem to repeat themselves regardless of the market’s trajectory: (1) investing is emotional, (2) risk never goes away, and (3) investment returns require patience in the face of adversity.

Regardless of your politics, many retirees (and non-retirees) will benefit from lower taxes due to the Tax Cuts and Jobs Act put into effect in January of 2018. With the increase in the standard deduction and lower tax rates, taking income from your retirement accounts could cost you less in taxes than in previous years. This gives retirees an opportunity to do some strategic income and tax planning in the early years of retirement.

Losing a family member is one of most challenging life events many of us will ever experience. In many instances, the grieving process is coupled with tremendous responsibility – managing final arrangements, supervising assets and affairs, and settling the estate. We’ve helped a number of investors navigate this difficult process.