September 15, 2020
Retirement Security in a Pandemic, III: Invest for the long-term
Part Three of Three
There may be no better starting place for a discussion of Retirement Security in a Pandemic, III: Invest for the long-term, than a refresher regarding the marshmallow test. The marshmallow test was a study on delayed gratification led by Stanford University professor, Walter Mischel. The study offered young children two choices: one immediate small reward—a marshmallow—or, two small rewards if they waited for a period of time before eating their treat(s). Investing for the long-term is about aiming for the two (or more!) rewards by waiting first.
No matter your age, generation, whether you are building wealth for the day you make work optional, or are currently retired, Part III of this series: Invest for the long-term, will discuss where to focus your attention as you aim for investment success unhindered by the shifting sands of current events.
Please share this blog with your network so that others might also experience enhanced quality of life including the freedom to pursue the interests they value most. We welcome learning what is on your mind and responding to any questions you may have with respect to your retirement planning.
August 4, 2020
Retirement Security in a Pandemic, II: Plan and Prioritize
Part Two of Three
Many investors are feeling some sense of relief due to the current bounce back of the capital markets. However, at the same time, fear is escalating with respect to what is to come and its effect on retirement planning. This series of articles: Retirement Security in a Pandemic introduces the fundamental components you need, to help keep your retirement plan on track—market volatility and pandemic notwithstanding. Whether you are a Generation Z, Millennial, Generation X, or Baby boomer, consider these three steps to ensure your retirement security:
The focus of article two is: Plan based upon your values and prioritized goals. If you have not yet had the opportunity, we encourage you to tap the link above and read Lead with savings (article one). After all, fulfilling the need to grow and/or preserve your wealth is paramount to peace of mind. We believe you will discover that our straightforward approach to formulating retirement security helps to reassure you, regardless of your stage of life.
For more inspiration during these troubled times, consider the words of Gloria Steinem: “Rich people plan for three generations. Poor people plan for Saturday night.” We hope you find our perspective helpful and welcome the opportunity to start a conversation. We can be reached: 610-687-3515 or by email.
Please share this blog with your network so that others might restore their peace of mind regarding their financial well-being, even during these challenging times.
July 14, 2020
Retirement Security in a Pandemic
Pandemic or not, the need to grow and/or preserve your wealth is paramount to peace of mind. Conversations in which our advisors engaged over the past four months revealed a variety of financial concerns felt across the generations—commonly leading with retirement. “Will I be okay?” is on the minds of many, whether retirement is years away, coming right up, or already here.
Due to the concerns expressed, we developed a series of articles focused on retirement security, offering perspective that serves across the generations. The three-part series is: Retirement Security in a Pandemic. Part One of Three, “Lead with savings” is now posted on LinkedIn as well as on our website.
We hope you find our perspective helpful and welcome the opportunity to start a conversation. We can be reached: 610-687-3515 or by email.
Please share this page with your network so that others might restore their peace of mind regarding their financial well-being, even during these challenging times.
June 30, 2020
Here’s what to do if you feel sick and are worried it may be the coronavirus.
On the one hand, we wish we never had to read or hear another word about “the virus.” On the other, while hoping to avoid infection, if we were to become ill, we would want to respond quickly and effectively. Therefore, it is vital to stay apprised of the current understanding of the medical community regarding symptoms and the subsequent right actions to take.
This New York Times article: “‘What Are the Symptoms?’ ‘What Should I Do if I Feel Sick?’ and Other Coronavirus Questions” may help you to stay protected and one step ahead of worry. For example, it delineates the following:
Here’s what you need to know:
What symptoms should I look for?
What should I do if I feel sick?
What if someone in my family gets sick?
How does this compare with the flu?
How does the virus spread?
Why do some people get very ill but most don’t?
If so many people are asymptomatic, how can I find out if I had the virus?
Credit: Benjamin Norman for The New York Times
We hope your find this perspective useful. Please feel free to reach out to us today to start a conversation: 610-687-3515 or by email.
Please share this webpage with your network. We trust that you continue to take every precaution to protect your personal wellness and safety during this challenging time.
June 2, 2020
What Might Recovery Look Like?
We mentioned in our previous article that recovery expectations differ widely across the generations, as reported in the current research of one of our strategic partners, Capital Group’s American Funds. The graph provided, illustrating S&P 500 investment returns during each age group’s working years, provides a context for the generationally specific investment results indicated below.
Capital Group research conducted in January of 2020 reported annual portfolio return expectations by generation¹:
- Gen Z 23%
- Millennials 12%
- Gen X 10%
- Baby boomers 8%
These expectations shifted slightly with the advent of the coronavirus and the anticipation of recovery to follow. Capital Group’s research in March of 2020 showed:
- Gen Z 26%
- Millennials 15%
- Gen X 10%
- Baby boomers 7%
As you can see, both younger generations now anticipate higher investment results than previously. Gen X is unchanged, and Baby boomers predict somewhat lower portfolio results going forward.
What our Entrust Investment Committee believes about recovery
Based upon our research and analysis during this three-month period of crisis, our Entrust Investment Committee perspective is that:
- The process of recovery has begun as evidenced by the gradual reopening of businesses. However, many companies will likely confront unanticipated—and potentially expensive—bumps along the way as a new normal is established.
- Many companies will do business differently moving forward. More employees will work from home. For those who cannot, employers will be mindful of the need to implement protocols to protect workers from illness.
- Innovative companies with resilient systems and technology platforms are likely to drive the recovery and continue to perform well.
For those who resonate to technical market perspective
Schwab’s Chief Global Investment Strategist, Jeff Kleintop, shares three key features of current technical aspects of capital market progress toward recovery:
- Cyclicals typically lead the market higher when stocks rebound from a bear market and recession—but not this time.
- The unusual market leadership (non-cyclicals) could mean the market is sending one of two worrisome messages: we haven’t seen the low yet or the recovery is likely to be very weak.
- If cyclicals begin to lead the market, a rotation to value and international stock market outperformance may catch some investors by surprise.
It may not be surprising that younger generations have the highest expectations indeed regarding the portfolio results they might count on as the recovery from the March of 2020 capital market lows fade from view. It might be reassuring to confirm your recovery perspective, so we welcome the opportunity to have a conversation. Remember that we are available: email@example.com or by phone: 610.687.3515.
Please share this webpage with your network. We trust that you continue to take every precaution to protect your personal wellness and safety during this challenging time.
¹Four Generations Chart and Intergenerational research provided by Capital Group/American Funds. 2020
May 19, 2020
Market Results Across the Generations: Find Yours!
The celebration of the Memorial Day holiday is quickly approaching. Typically, we eagerly anticipate this three-day weekend that heralds the beginning of the summer season. This year is different. However, some traces of good news are beginning to surface that suggest a pretty good summer may be on the horizon after all. Specifically, it is now being suggested that socializing outside may be an effective strategy as we take initial steps to recover from the current crises.
Financial questions as we recover
Feeling safe to transition from sheltering-in-place is likely on everyone’s mind. Specific financial questions are top of mind, too, particularly for the millions of Americans who have experienced an abrupt change in their income. Our Entrust advisors were asked by MainLineParent.com to answer some of them. Perhaps you or someone in your network would benefit from this Q & A article:
As some of the day-to-day questions such as those in the article cited above are resolved over the coming weeks, we believe that investors will turn their attention more fully to their portfolios, particularly their retirement portfolios. Therefore, stay tuned following the holiday weekend as we provide more in-depth coverage of the relationship between the equity market performance illustrated on the chart above¹ and your retirement planning—pre-retirement, and for those already enjoying their retirement years.
Small Business Owners have questions, too
Before concluding we would like to mention the following, which may answer vital questions for small business owners. Those who received a PPP loan will be relieved to know of the safe harbor that was published by the SBA² (Small Business Administration): “Any borrower that, together with its affiliates, received PPP loans with an original principal amount of less than $2 million will be deemed to have made the required certification concerning the necessity of the loan request in good faith.” Please contact us if you have any questions about this timely clarification.
We trust that you continue to take every precaution to protect your personal wellness and safety during this challenging time. Please share this webpage with your network and remember that we are available by phone (610.687.3515) or firstname.lastname@example.org. We welcome the opportunity to discuss the financial considerations that may be on your mind.
Disclaimer: The Entrust Financial advisors responded to the questions in the Main Line Parent article to offer guidance as readers tackle challenging financial events. No part of any response shall be considered as tax, legal, or investment advice or recommendations.
¹Four Generations Chart provided by Capital Group/American Funds. 2020
²SBA https://www.sba.gov/, in consultation with the Department of the Treasury, determined the safe harbor that will apply to SBA’s review of PPP loans with respect to this issue.
May 12, 2020
Advocate for Your Values: 3 Tips to Use Now
Tip 1: The conversation
A common theme as we talk with clients during these unprecedented times is their renewed focus on “what really matters.” In other words, some now have the gift of more time than usual and are using that downtime to reaffirm their values. Perhaps you recognize yourself in a similar situation and have discovered, like many clients, that such conversations can be instrumental in crystallizing what is most important to you. It will not be surprising to learn that advocacy begins with the identification of your values.
Tip 2: Your values and your money
What is especially exciting about such conversations is that they not only identify the things for which you care deeply but such discussions can inspire an interest in discovering other avenues for expressing what really matters. One opportunity we would like to introduce is to invest in mutual funds¹ specifically formulated to make a positive impact; in other words, to support your values.
A stellar example of what this entails occurred last week during our virtual Women & Wealth event, sponsored by National Association of Women Business Owners (NAWBO) and Entrust. Participants were introduced to a mutual fund structured to fulfill their philanthropic interests in tandem with achieving portfolio goals. A surprise to the attendees was the advocacy performed by the mutual fund managers. Going into the session, the expectation was that discussion would focus on the “bad things” (tobacco, firearms, etc.) that were excluded from this socially responsible fund. Instead, the participants discovered that Impact or ESG (Environment, Social, Governance) fund managers are not necessarily simply exclusive but are inclusive; they focus on companies with superb best practices and corporate cultures that support the values of discerning investors.
Tip #3: Invest in mutual funds that advocate for your values
In fact, such fund managers take their responsibility a step further—to advocacy. They work directly with companies in which they would like to invest to get them on board to improve their firm practices, thus moving them toward more effective fulfillment of ESG values. To further introduce how this works from the fund management side, we encourage you to view: https://www.praxismutualfunds.com/about-us/staff-bios/benjamin-bailey.
Please share this timely webpage with your network and watch for weekly updates, as we face the current crises together.We would love to hear your strategies for reaffirming what matters most to you as you navigate these difficult times. Reach out to us today and start a conversation: email@example.com or 610-687-3515.
¹Actual investment return and principal value of a mutual fund investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
May 4, 2020
The month of May has arrived and, for now, most investors have more positive portfolio values than those reported to them for the previous month. Notable increases are not uncommon. While we would like to be assured that these improved values will be sustained in the weeks ahead, the uncertainty of the consequences of COVID-19 could lead to another round of downward volatility.
Appreciating the current investment improvement, you may find this second theme positively inspirational: Giving Tuesday, on May 5th. If you have awaited an opportunity to share with your community during these challenging times, this could be the perfect time. Giving to others makes you feel good (a documented fact) and a boost of positive feeing right about now may be ideal.
As you consider the causes most important to you, remember two provisions of the CARES Act that can help save you money on taxes as you donate:
- Taxpayers are eligible for a $300 above the line deduction, if not itemizing their deductions when filing.
- The taxpayer limitation on deductions increased from 60% of their contribution base (generally AGI) to 100%.
You may already be aware of the strong corporate commitment Entrust has to Sharing with Our Community. If not, the link provides a good introduction. Some of our favorite causes are:
My Best Teacher Scholarship Fund
The Junior League of Philadelphia
Girls on the Run
Adoptions from the Heart
Philadelphia Center for Advancing Entrepreneurs (PCAE)
Ed Snider Youth Hockey Foundation
Mission Kids Child Advocacy Center
Please share this webpage with your network and watch for weekly updates, as we face this medical and financial crisis together. We would love to hear your strategies for staying positive during these difficult times and to learn what charities you love to support. Contact us today: 610-687-3515 or firstname.lastname@example.org
April 28, 2020
Popular Financial Questions Answered Now
Our patience with sheltering-in-place is somewhat more difficult to sustain, as we continue in month two and realize that COVID 19 testing procedures remain inadequate and treatments are a work-in-progress. These significant gaps threaten public health and safety and are a challenge that may prevent a return to more normal lives as soon as we would prefer.
In the meantime, many questions are surfacing for which answers are needed. Some of these questions are financial and our Entrust advisors were asked to answer a series of them, by the Main Line Parent organization. This series of questions–click each one for the answer—includes the following:
- When experiencing a pay cut, what investments (401(k), college savings) are best to reduce or stop until your financial situation improves?
- I’m still raising my children and now also taking care of my parents. How can I financially manage both?
- With the reduction in penalties for withdrawing your 401(k) right now, should I do that to help during this crisis? I’m in my early 30s, my income is down dramatically, and retirement is not something I’m focused on right now.
- I lost my job (or had my hours/pay cut) and know that fees to pull my 401(k) have been waived. Should I do this or keep my investments and let the market recover?
- If I have the cash flow to make investments now, where is the safest place to put my money?
- I was planning to retire soon but now I am unsure. Should I hold out and rebuild my 401(k)?
Disclaimer: The Entrust Financial advisors responded to the above questions to offer guidance as readers tackle challenging financial events. No part of any response shall be considered as tax, legal, or investment advice or recommendations.
To further boost your financial motivation during this crisis, we invite you to read:
https://mainlineparent.com/tips-for-healthy-finances-covid-19-crisis-entrust-financial/ As you do, it might help to jot down the questions you have about your personal financial situation, and to contact us for answers specifically tailored to you. We can be reached by phone: 610-687-3515 or email: email@example.com.
April 21, 2020
Triple Play: Hope, Business (kind of as usual), Recovery
In tandem with the consequences of the medical crisis, long-term investors may be focused on the financial crisis, thinking: “What about my investments? When will they recover?” Recent swift and deep downturns in the capital markets illustrate the relentless uncertainty that persists while investors await a signal that post-pandemic normalcy is returning, with more consistent positive performance results not far behind.
You may be reassured by the following slide as you patiently experience life on pause. Shared by our trusted partners at American Funds, it demonstrates the powerful nature of historical recoveries in the capital markets for the past seventy years. For instance, you may note that the blue-colored peaks—illustrating recovery, dominate the slide. On the other hand, the purple markings showing downturns become blips on the radar as time passes.
Perhaps the most important term in our Triple Play title is Hope. In support of this we would like to extend our gratitude to family, friends and clients who are participating in online classes or contributing to non-profits to help those in our communities most hurt by current circumstances. As a tribute to you and to classic Philadelphia resilience and resourcefulness, please enjoy: The Happiness video, produced by Philadelphia’s very own woman-founded and led BalletX.
We welcome your stories and comments and are available by phone 610.687.3515 or email. Please continue to take steps to ensure your personal wellness and safety.
March 30, 2020
Calling All Investors
We are continuously monitoring updates from the Centers for Disease Control and the World Health Organization and have taken steps to promote virus prevention with our team, including working from home. We encourage you to ensure your personal health and safety, and if you have any symptoms of COVID-19 or the seasonal flu, please contact your healthcare provider as soon as possible.
Entrust’s service and support to clients is unaffected, because our software and technology solutions allow us to operate and conduct client meetings from anywhere. Virtual meetings can be held by phone or computer. We realize how frustrating current market conditions are and we are here to assist and to answer any questions you may have.
Because a picture is worth a thousand words, especially regarding your money, this graph may help you and other long-term investors focus on the big picture.
Capital market investing has risk–which is why we see the valleys scattered throughout the image, over the decades represented. It may also reward investors for staying the course. Those compelling peaks of portfolio profit, which we all love, have faded into the background for the moment, but as this chart illustrates, slowly but surely may return time and again.