Blog
5 Ways to Give Tax Free Gifts
If you plan to gift a sizable amount of money to a loved one, gift tax should be on your radar. Gift tax is a federal tax imposed on transfers of cash or property valued above a certain threshold. Gift tax is paid by the gift giver,...
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Why It May Be Time to Take Advantage of Higher Yields
The LPL Research Strategic and Tactical Asset Allocation Committee is increasing its recommended interest rate exposure in its tactical allocation from underweight to neutral. Now that interest rates have moved substantially higher, we...
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The Booming Trend of Multigenerational Living
At first glance, multigenerational living arrangements may seem unusual, but they were once the rule, not the exception. In mid- to late-nineteenth-century America, the majority of elderly parents and grandparents lived with their...
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How Much Higher Can Rates Go?
Inflationary dynamics continue to surprise to the upside, and markets now expect the Fed to pursue one of its most aggressive rate hiking campaign in years. U.S. Treasury yields continue to move higher as well. We think we’ve...
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An Overview of High-New-Worth Estate Planning
Even if you never thought of yourself as especially wealthy, there may be a fair chance that you fall into the category of "high net worth individuals"—those who have liquid assets of $1 million or more. For many individuals who...
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Getting Jobs Market Back into Balance
Federal Reserve Chairman Jay Powell reiterated his warning that getting inflation under control will require some pain. Powell is likely making these warnings based on the arcane, clunky relationship between inflation and unemployment....
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Financial Planning for a Couple’s Age Gap
Couples usually don’t retire at the same time when they have an ‘age gap’ between them. An age gap relationship is one where there is eleven or more year’s age difference between them. Age-gap relationships are...
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September’s Calendar Cruelty for Stocks
The difficult 2022 for stocks may not get much easier because as we now wait for better news on the inflation front, we have to contend with a seasonally weak month of September. While we got some welcome news in Friday’s jobs...
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Earnings Recap: Still Hanging In There
Earnings growth of 6-7% doesn’t sound very exciting, but given the challenges corporate America has faced, we consider the nearly-complete second-quarter earnings season a resounding success. The numerous challenges last quarter...
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401(k) In-Plan Roth Conversions
A 401(k) In-Plan Roth Conversion (also called an "In-Plan Roth Rollover") allows you to transfer the non-Roth portion of your 401(k) account into a designated Roth account within the same plan. The amount you convert is subject to...
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Home Sales Fall (Again). What’s Next?
Existing home sales fell 5.9% in July, the sixth consecutive month of decline as higher interest rates weigh on housing affordability and prospective buyers. As the housing market slowed, so did prices. The median price for a...
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An Introduction to Donor Advised Funds
If you’re in search of a way to reduce your tax bill and give back to the community, a Donor Advised Fund may be worth considering. Also known as a DAF, a Donor Advised fund is a charitable investment strategy you can use to...
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Is This the Start of a New Bull Market?
Investors cheered the two better-than-expected inflation reports last week, pushing the S&P 500 to 16% above its June 16 low and only 11% below its all-time high. After this rebound, the key question investors are asking is whether...
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Common Warning Signs of Financial Fraud
Many people are familiar with the scammers who promise to pay millions of dollars in exchange for briefly holding funds in your bank account or those who offer to enhance certain body parts risk-free. Today's scammers are clever at...
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The Case for a U.S. Recession Weakens
The market pundits remain intensely focused on the question of whether the U.S. economy is in or about to enter recession, so we thought a piece on what a recession might mean for the stock market would be of interest. While...
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College Planning Tips for Self-Employed Parents
Self-employed parents have unique considerations when sending their children to college. If you own your own business, there are several ways to optimize your financial situation as you prepare for your child to go to college. Keep...
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6 Little-Known Uses For Life Insurance
When people think of life insurance, what usually comes to mind is settling the deceased's final expenses and providing financial support for their beneficiaries. Although these are the most common uses of life insurance, cash value,...
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What a Week for the Stock Market
That was quite a week. These days a Federal Reserve (Fed) policy meeting alone gets a lot of headlines and has market participants on the edge of their seats. Add to that the second straight quarter of negative gross domestic product...
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5 Ways a Financial Professional Could Be a Small-Business Owner's Best Friend
As a business owner, you may assume you do not need professional financial advice until you hit certain milestones such as $1 million in sales, having ten employees, or some other tangible measure. However, financial professionals may...
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3 Factors That Could Change The Inflation Course
For the past year, supply-related problems contributed more to inflation than demand-related imbalances, but that may be changing soon. There are at least three factors that could change the course of inflation. First, the improvement...
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Five Things That Economists Know, but Sound Wrong to Most Other People
Economists have shaped the modern world in many ways. Governments make policy choices in response to the data that we produce about things like GDP and inflation. Social media companies use our insights about human behavior to create...
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Managing Market Volatility
Markets rarely give us clear skies, and there are always threats to watch for on the horizon, but the right preparation, context, and support can help us navigate anything that may lie ahead. So far, this year hasn’t seen a...
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6 Ways to Minimize Your Tax Liability Throughout the Year
You don't need to wait until the end of the year to look for ways to minimize your tax liability. Tax planning should take place throughout the year to have you prepared well ahead of tax season. Here are six ways to minimize your tax...
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Securing Your Future with Life Cycle Planning
The need for regular saving and investing spans many life stages. Through the years, your goals will change and your strategies will shift, but don’t be alarmed. You’re just progressing through the normal stages of life,...
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Constructive, Not Complacent: Lowering S&P 500 Target
Stocks have been unable to make up much ground since the June 16 lows, with a bear market rally amounting to only around a 4.3% gain in the S&P 500 Index since then (as of July 1). After the more than 6% rally the week of June 24 and...
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Relief at the Pump and for Portfolios?
2022 has been rough all-around for the American consumer. Not only are we battling decades-high inflation, but investors’ portfolios are off to one of the worst starts to a year in history as we near the halfway point. Our...
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Bear Market Q&A
The bear market that started on June 13 has left the S&P 500 Index 23.5% below its January 3 high. After the initial positive reaction to the Federal Reserve’s first 0.75% rate hike since 1994 and tough talk on inflation,...
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Is the 60/40 Portfolio Dead?
This year has been tough for investors, not just because stocks have fallen but also because bonds have not helped mitigate those losses as they have historically done. Below we discuss the outlook for diversified portfolios of stocks...
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The Economy Is Slowing But Not Shrinking
Many pundits are issuing recession warnings and saying the economy is heading for a hard landing. Amid the cacophony of voices, we think the economy is slowing just like central bankers want but not shrinking. Further, we argue that a...
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Looking through the Clouds
At the risk of sounding cliché, making the case for stocks to stage a second half rally back to the prior highs requires investors to see through some heavy cloud cover. If you prefer another market cliché, it’s times...
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Dawn of a New Era for Core Bonds
Core bond investors have experienced the worst start to the year ever. However tough this year has been so far though (and it has been tough), the potential for future returns has improved meaningfully, in our view. Starting yields...
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Investing in Your Family: Creating a Family Business Succession Plan
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IRS Makes Contribution Limit Changes for 2022
The Internal Revenue Service announced that the amount individuals can contribute to their 401(k) plans in 2022 has increased to $20,500, up from $19,500 for 2021 and 2020.
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What To Know About Potential Tax Changes in 2022
Though the final price tag of the Biden administration's infrastructure plan is not absolute, it may increase federal spending by about $3.5 trillion over the next decade.1 President Biden and his administration proposed changes to the...
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The Stock Market, Economy, and New Year: Three Reasons To Be Thankful
There are only six weeks to go in 2021 and it has been an incredible year for the stock market bulls. In fact, in many ways it could go down as one of the best years ever. This week, in honor of Thanksgiving, we wanted to take a...
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Planning to Make New Year’s Resolutions Stick
Will you make a New Year’s resolution this year? One of the smartest ones could be to get your finances in order. But keeping that promise to yourself is another matter. A lot of people make money resolutions. According to study...
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RMD Roundup: A Few Key Updates About Required Minimum Distributions
As we approach the end of 2021, now might be a good time to take a closer look at a few developments surrounding required minimum distributions (RMDs). What Are RMDs? Once you reach age 72, you are required to take minimum...
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A Peek at Peak Inflation
After an updside inflation surprise in October, it’s clear that peak inflation may still be ahead, possibly even pushing into 2022. While the Federal Reserve (Fed) maintains its position that elevated inflation will be...
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Developed International: If Not Now, When?
Since we began our investing careers, we’ve had the concept of diversification drilled into our heads. Some refer to it as the only free lunch in investing. Well, when it comes to geography, that advice hasn’t been helpful...
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Retirement Mistakes to Fix Before the Holidays
Spend as much time fixing your mistakes as you do planning the holidays You probably spend more time planning your holiday gathering than preparing for your golden years. As a result, you make basic mistakes in trying to fund your...
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The Most Common Tax Tips Before Year End
Tax planning can be advantageous when done during the year and well in advance of year’s end. Opportunities exist for you to mitigate tax liability, which may leave more income for you and/or your family. Generally, people put...
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November Letter to Clients
The past year and a half have tested all of us, but overall, the economy continues to strengthen, COVID-19 trends are greatly improving, and this still relatively young bull market is alive and well. As the leaves turn colors and begin...
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5 Things That Might Spook Markets
With Halloween over the weekend, what better to write about this week than what scares us? If our positive near-term market outlook proves to be overly optimistic, we believe one—or perhaps more than one—of these five...
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Bullish Setup Into Year-End
The S&P 500 Index has gained more than 20% so far this year, making more than 50 record highs along the way. Certainly nobody should be upset with that return if that was all 2021 brought us. However, we see signs that there could be...
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How to Structure Charitable Giving Throughout Your Lifetime
Charitable giving is a way for affluent individuals spread their money around and to benefit causes that are near and dear to their hearts. Yet, for those who fall into the high net worth category, it is critical to structure...
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Year-End Tax Planning
As the end of the year approaches, it's time to consider strategies that could help you reduce your tax bill. But most tax tips, suggestions, and strategies are of little practical help without a good understanding of your current tax...
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Q3 Earnings Preview: Less Upside
We have used most of the superlatives we know to describe corporate America’s stunning performances over the past two earnings seasons. Despite lofty expections, results exceeded estimates by the biggest margins we’ve ever...
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End of Year Financial Planning
For some, it’s easy to put personal finances on the back burner during the last few months of the year. However, before the year comes to an end, it’s essential to review your finances. By doing so now, you can make the...
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Answering the Top Debt Ceiling Questions
Last week, Congress was able to push back a fast-approaching deadline for raising the debt ceiling to December. Markets applauded the move with a relief rally. Despite decreased uncertainty in the near term, we may be confronted with...
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October Letter To Clients: Change May Bring Opportunities
Dear Valued Client, One constant in life is change. During the past year and a half, we have experienced more change than any of us bargained for. Change is disruptive—but also brings opportunities. For investors right now, there...
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Early Thoughts on 2022
With the fourth quarter underway—historically the best quarter for stocks, by the way—2022 is fast approaching. While a lot can still happen between now and the end of 2021, we don’t think it’s too early to...
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What Gen Xers, Millennials, and Baby Boomers Need to Know About Financial Planning
Financial planning is an important part of securing your current lifestyle as well as preparing yourself for what you wish to do in your eventual retirement. And while this importance may look different during each stage of your life,...
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Five Tips To Finding A Financial Professional That Fits You And Your Family
The financial professional you pick to manage your assets and advise you on key financial decisions may affect your retirement and other major financial goals more, maybe, than even you. Make the right choice. When trying to find a...
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High Net-Worth Individuals: Are You Missing Opportunities in Your Financial Planning?
High Net-Worth executives and those that have been self-employed, can experience common problems in their financial planning journey. Often, they have missed opportunities in their financial planning because they haven’t planned...
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Top 5 Tips for Making Sound Financial Decisions
Everyone needs to make smart financial decisions that steer them toward financial independence. When people thrive financially, they may feel less financial stress, leading them to accomplish short and long-term financial goals. Here...
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Revisiting Our 10-Year Treasury Yield Forecast
Until recently, we expected the 10-year Treasury yield to end the year between 1.75% and 2.0%. Now, however, there are two key elements suggesting we are unlikely to see significantly higher interest rates by year end: The Delta...
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Policy Risks Loom But Clarity Ahead
Several policy-related risks loom in September and October that may lead to an increase in market volatility. The debt ceiling needs to be raised (likely by mid-October), the government needs to be funded to avoid a shutdown by the...
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The Bull Market Continues
Dear Valued Investor: The bull market continues, with the S&P 500 Index now up seven months in a row. Stocks have impressively gained 20% year-to-date, with the S&P 500 making 53 new all-time highs before the end of...
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Poking The Bear
First and foremost, this week’s commentary should not be construed to suggest that we are saying stocks will go up forever. We are also not saying that stocks are immune from a pullback in the final four months of 2021....
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Some Key Uses of Life Insurance
Have you ever thought about the important role life insurance can play in helping you manage a variety of important financial objectives? Let’s look at some “slice of life” hypothetical examples and you’ll see...
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Life Insurance and Charitable Giving
Life insurance can be an excellent tool for charitable giving. Not only does life insurance allow you to make a substantial gift to charity at relatively little cost to you, but you may also benefit from tax rules that apply to gifts...
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Life Insurance at Various Life Stages
Your need for life insurance changes as your life changes. When you're young, you typically have less need for life insurance, but that changes as you take on more responsibility and your family grows. Then, as your responsibilities...
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Life Insurance: Do You Have Enough?
September is National Insurance Awareness Month which prompts the question of whether you are adequately covered. Right now is a great time to assess your insurance coverage and evaluate your risk of being underinsured. The importance...
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Why Stagflation Isn’t In the Cards
The term stagflation has been circulating increasingly in the financial media as inflation readings have risen sharply in recent months. The term is often associated with the 1970s, which saw runaway inflation—largely driven by...
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Corporate America Does It Again
Corporate America did it again. Companies blew by estimates and made strategists and analysts look silly (though we humbly suggest that we may have looked less silly than most in our earnings preview on July 12). S&P 500 earnings...
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Here Comes Friday The 13th
“Friday the 13th is still better than Monday the whatever.” No known person to cite, but LPL Research can’t disagree. Today is the first Friday the 13th since November 2020. For most people, this is just another day,...
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Tips to Keep Emotions and Investing Separate
Reducing your emotions can give you a better chance for investing success Money is always an emotional subject, but often when our emotions get involved with our investments we will make wrong decisions. And that can be a costly...
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Investing for Your Later Years? Think Asset Preservation but Don't Forget Growth
After years of investing for retirement and other goals, you may have accumulated a substantial portfolio. If you're approaching or already enjoying retirement, there are important steps that you can take to help ensure that your...
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Did You Know Stocks Historically Peak in Early August?
Hard to believe, but we are in August already! The good news is stocks are still firmly in a bull market, but the bad news is the calendar is a potential worry now. As shown in the LPL Chart of the Day, August and September have been...
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Education: One of the Best Investments You Can Make
It wasn’t long ago when an individual went to college, got an education, and embarked on one career that usually lasted a lifetime. Many companies provided on-the-job training, and little emphasis was put on the idea of going...
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Why Invest?
To accumulate wealth, people may choose to invest their money into various types of investments. Investing creates opportunities that otherwise would be difficult to manage due to the consistency of contributing to the investment....
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The Recession Is Over, So What Happens Next?
The National Bureau of Economic Research (NBER) announced yesterday that the COVID-19 recession is over. If things don’t feel all that different, it’s because they announced the recession ended in April 2020. Yes,...
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Midyear Outlook 2021: Picking Up Speed
The U.S. economy powered forward faster than nearly anyone had expected in the first half of 2021. Markets are always forward-looking and in LPL Research’s Midyear Outlook 2021: Picking Up Speed, we help you keep your eyes on the...
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Five Financial Mistakes You Should Avoid
These simple steps might save you a great deal of money and heartache We all make mistakes, and through them, we learn. But when it comes to finances, trial-and-error may not be the most suitable approach for you. Maybe you’re...
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The Crazy Cost of the Olympic Games
Since the first modern Olympic games in 1896, the competition has been a prestigious honor for the hosting country, but also a significant economic and structural undertaking. Billions of dollars are put toward the construction of new...
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Five Factors that Impact Your Retirement
Retirement can be a risky business if you don’t consider all the factors that can impact your retirement during your planning process. Although it’s hard to know what will happen in the future to you or your investments,...
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Healthcare and the Sandwich Generation
Members of the "Sandwich Generation"—or adults who have at least one parent over age 65 and at least one child who still requires financial support—often find themselves torn between their dual caregiving responsibilities.1...
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Do You Have FOMO When it Comes to Investing?
Fear-of-missing-out is a very real emotion – but it can derail your portfolio Every day we’re bombarded with reports of what’s hot and what’s not – fueling a fear-of-missing-out (FOMO) on some great...
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Starting a Business With a Friend: Do’s and Don’ts
It is estimated that about 40 percent of business founders were friends before they became business partners.[1] But while starting a business with a friend can be a great way to secure your financial future, it can also put new and...
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The Perils of Trying to Time the Stock Market
The end of March 2021 marked the one-year anniversary of the stock market bottom and the end of the shortest bear market on record. Since then the U.S. stock markets have quickly reached new highs, with the Dow Jones Industrial Average...
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June Swoon?
lthough there was some notable weakness in the middle of May, the S&P 500 Index was able to rally late in the month to finish with a modest gain. Incredibly, this was the eighth year out of the past nine that stocks gained during in...
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The Sandwich Generation: A Growing U.S. Concern
As the U.S. population continues to age, the “sandwich generation” is caught in the middle, supporting both their parents and their children, whether financially, physically, or emotionally. This generation is the...
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Three Things Investors Can Learn From Phil Mickelson’s Win
Congrats to Phil Mickelson on his amazing victory on Sunday at the PGA Championship at the age of 50, officially the oldest person to ever win a golf major championship. This was Lefty’s 6th major victory, leaving him just a win...
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10 Tips for Small Biz Owners
Small business owners should conduct an annual assessment of their personal finances. Owners of small businesses have much the same concerns as everyone else, except they are personally responsible for the fortunes of their enterprise....
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Get SMART: Tips for Effective Goal Setting
Regardless of which phase of the business life-cycle you’re in, you can get SMART about setting goals to motivate yourself, move forward to grow your business, and track your success. SMART goal setting for small business owners...
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