The Weekly Wealth of Knowledge is your download of this week's most important topics related to financial planning, the markets, and our community. September is "back to school" month at MONECO Advisors, where we will be providing you a host of content on everything from financing school supplies, helpful checklists to keep your kids safe this year, saving for college and much, much more!
In this issue:
- To Roth Or Not To Roth? (4 min read)
- The September Effect (2 min read)
- The War For Engagement (3 min read)
- Last Call - BONUS - Upcoming Webinar: ESG - Responsible Investing!
If you enjoy our Weekly Wealth of Knowledge, don't forget to check out our content on Facebook, Linkedin, and Twitter!
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To Roth Or Not To Roth
Roth conversions have long been known as a financial planning strategy to relieve a surviving spouse of future tax liability, during an unfortunate time when one has passed on. In addition, a surviving spouse who now has to file as single payer may jump into a higher bracket than a married couple filing jointly, on the same amount of income. Like anything, planning for this future occurrence is key, since every situation is different. As always, the time to discuss if conversions are right for you is now and we can help.
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The September Effect
The September Effect refers to historically weak stock market returns for the month of September. Although somewhat of an anecdotal theory, there is some data that does support it. In general, it is believed that many investors returning from summer breaks, liquidate their positions to lock in past gains and realize any tox losses for the year. In addition, some believe others get out of the market to take gains that would then offset such expenses like schooling costs for children.
The stock market notched its 7th straight month of gains in August, and the Standard & Poor's 500 index has set 53 new highs so far in 2021.1
During August, stocks rallied as investors looked past the increased number of COVID-19 Delta variant cases and barely reacted when the Federal Reserve said it might begin tapering its monthly bond purchases by year-end.
But it's a new month, and you should expect to see an article or two about what's called the "September Effect." September is when many professional investors end their fiscal year, which can lead to some overall market weakness.2
When I see articles about the September Effect, I'm reminded of my favorite stock market quote by Mark Twain.3
"October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.”
There's always going to be some market theory, opinion, or model that suggests we're in "this cycle" or "that trend." Over the years, we've found that the best strategy is to ignore the noise and focus on your investing goals.
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The War For Engagement
With job openings surging past 10 million last month, the opportunity is ripe for those job seekers looking for a new opportunity or challenge. Although some believe after coming off a year with many being forced to work remotely, many companies today are now trying to find the perfect balance between in person and remote work. Employees however just want to feel engaged and a sense of purpose when it comes to their day jobs. According to Axios, this may be easier said than done in this new business environment.
Click here to read the full article
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Webinar: Aligning Your Financial Goals With Your Values
Do you have to sacrifice returns to make a positive impact on the environment? Join us for an exclusive informative discussion on why responsible investing matters, the trends in it, the steps you can be taking to align your personal values with your investments and how we can help. Afternoon and evening event time slots available.
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1.Forbes.com, September 1, 2021. The S&P 500 Composite Index is an unmanaged group of securities considered to be representative of the stock market in general. Index performance is not indicative of the past performance of a particular investment. Past performance does not guarantee future results. Individuals cannot invest directly in an index. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
2. Investopedia.com, May 17, 2020
3. GoodReads.com, 2021
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.