In part two of our series on year-end tax planning, we will focus on several aspects of giving and its impact on taxes. This seems very fitting to me, given the timing. With Thanksgiving officially in our rearview, we are now fully immersed in the holiday season – some of us have actually been there since November 1st. Today is also the Tuesday after Thanksgiving, which is known as “Giving Tuesday” – and yes, that is a thing. As this is a movement that I personally fully support, here is some quick background on it. “Giving Tuesday” is a movement to create an international day of giving at the beginning of the holiday season. It was started in 2012 in response to the commercialization and consumerism of the post-Thanksgiving season (Black Friday and Cyber Monday). Also, I recently stumbled upon this quote from Winston Churchill that really resonated with me, and might help put this movement in the proper perspective.
In just a few short weeks, Americans will head to the polls to elect the next President of the United States.
While the outcome is unknown, one thing is for certain: There will be a steady stream of opinions from pundits and prognosticators about how the election will impact the stock market. As explained in the below graph from Dimensional, investors would be well-served to avoid the temptation to make significant changes to a long-term investment plan based on upon these sorts of predictions.
Additionally, this short 4 minute video from Vanguard aids investors in shifting their focus from the short term impact of the election to focusing on the long term. Decades of historical data tell us that presidential elections typically don't have a long-term effect on market performance.
This data does not suggest an obvious pattern of long-term stock market performance based upon which party holds the Oval Office. The key takeaway here is that over the long run, the market has provided substantial returns regardless of who controlled the executive branch.
For more resources on this topic, please contact us.
By now, schools are back in session across the country and many parents are likely thinking about how best to prepare for their children's future college expenses. In fact, it's not far off to say that most, if not all, parents have thought about future college expenses before their child was even born.
In the following issue brief from Dimensional, they give you a glimpse at some of the facts and questions that you should address with your trusted adviser when constructing a plan that incorporates higher education costs.
Education planning is a complex issue. Our investment counsellors will not only help you sort through the complexity, but they will help you to create a disciplined approach to saving and investing that can help remove some of the uncertainty from the planning process.
Once your children are in college, our investment counsellors will help you construct and execute efficient spending strategies based on the assets at your disposal. With a comprehensive college spending plan in place, one can help keep their retirement savings intact.
As always, contact your investment counsellor with any questions.