Category Archives: Business Reports

By Bill Canty, CPA, CFP

Even as the pandemic continued, 2021 was another strong year for the markets, though returns varied a bit across various market segments. The S&P 500 index gained 28.7 percent in 2021 as large cap stocks had another strong year. The index set numerous new highs during the year. This marks the third consecutive strong year for the S&P and for stocks. 

The tech-heavy NASDAQ  gained 21.4 percent in 2021 and the Dow Jones Industrial Average added 18.7 percent for the year. This represented only the sixth time that the S&P 500 beat both the Dow and the NASDAQ in the same year, and the first time this has happened since 2005. 

The Russell 2000, made up of small cap stocks, was up 13.7 percent for the year. Most broad non-U.S. stock indexes also under performed that U.S. market. 

Gains were not uniform and 2021 saw the rise of “meme” stocks where large groups of investors would buy shares of stocks like Game Stop and AMC Entertainment in an attempt to bid up the price and inflict losses on hedge funds who had short positions in the shares. 

Gains across the S&P 500 were concentrated to an extent, with five stocks comprising just under 33 percent of the index’s returns according to Goldman Sachs. The five stocks were Apple, Microsoft, Nvidia, Tesla and Alphabet (parent of Google). 

Dissecting the gains in the S&P 500 showed that the technology sector of the S&P 500 played a true leadership role in the gains of the index in 2022 as it has over the past several years. 

By rob Snell

During your working years, you’ve probably met the costs of living through your salary. But once you retire, where will the money come from? Is there a way to give yourself a “paycheck” for retirement?

There is indeed—but you’ll have to do a good job of managing your available income sources. Here are some moves that can help:

• Accept dividends and interest payments. Instead of automatically reinvesting all your dividends and interest payments into your portfolio—which is an excellent strategy for building wealth—you might want to begin receiving these payments as part of your income. Keep in mind, though, that companies can lower or discontinue dividends at any time. However, it’s also true that some companies have consistently paid, and even increased, dividends over many years, and even decades.

• Choose an appropriate withdrawal rate. Once you’re retired, you’ll likely need to begin withdrawing from your investment accounts. But you’ll need to avoid taking out too much early in your retirement. You don’t want to risk outliving your portfolio. For many people in their mid-60s, a 4 percent annual withdrawal rate is a good starting point, but everyone’s situation is different, and your ideal rate will depend on several factors: your age, the size of your portfolio, other sources of income, and so on. Once you turn 72, you’ll be required to take at least a minimum amount from your traditional IRA and 401(k), but you can choose to withdraw more, if necessary.

• Maximize your Social Security. You have significant control over the amounts you’ll receive from Social Security. You can begin taking these payments at age 62, but they will be much larger if you wait until your full retirement age, which will likely be between 66 and 67. (You will receive the maximum amount if you wait until you reach 70.) 

By Rick Schwerd

The end of the year is always a good time to take stock of your investments and look ahead. Last year at this time, it was easy to be bullish on the stock market. Vaccine distribution was just starting, the country was continuing to reopen and unprecedented stimulus was being injected into the economy. 

As we head into 2022, there is still a lot to be positive about, such as robust company earnings and a very healthy consumer base. However, concerns about the Omicron variant, global supply chain issues, labor shortages and inflation are tempering enthusiasm.  

Stock markets had another good year. The Standard and Poor’s (S&P) 500, an index of 500 of the largest companies in the U.S., is up approximately 20 percent year-to-date, as of early December. Small-cap stocks, mid-cap stocks and most international markets have also shown strong gains this year. As expected, short-term interest rates have remained near zero as the Federal Reserve continues its accommodative fiscal policy. Intermediate and long-term rates have risen as the economy has improved, but in a measured way.

As we look forward, there is plenty to be positive about. The U.S. consumer is doing very well, which is vital since consumer spending accounts for nearly 70 percent of our Gross Domestic Product (GDP). The unemployment rate has fallen from 6.7 percent at the start of the year to 4.2 percent in November. Wages and salaries are up approximately 10 percent year-over-year. U.S. consumers have accumulated more than $2 trillion in excess savings and consumer net worth has surged about 30 percent since the start of the pandemic. These factors provide confidence that strong retail sales of goods and services will continue into 2022.  

11/15/2021 Update
November print edition headline Dow 3,600 corrected to Dow 36,000 in online and virtual editions.

by Kenneth J. Entenmann, CFA

Well, we finally made it. The long-ridiculed prediction by James Glassman and Kevin Hassert in their 1999 book titled “Dow 36,000: The New Strategy for Profiting from the Coming Rise in the Stock Market,” has arrived.

It took a lot longer to get here than predicted, but we made it. The market has a habit of humiliating the great prognosticators of the world. But the central premise of the book remains based in the simple math of compounding. According to Wharton Finance professor, Jeremy Siegel, since 1802, equities have produced annual average total returns (including price changes and dividends) of 6.5 percent to 7 percent after inflation. In a recent Wall Street Journal article today, Mr. Glassman does the math, and it suggests we will have a Dow 1,000,000—in 50 years.

Unfortunately for market forecasters, the market never moves in a linear fashion and major disruptions can knock the markets off track, often for prolonged periods. In defense of Glassman and Hassert, few investors predicted the dot.com bubble, the Financial Crisis of 2008 and COVID. Yet here we are—Dow 36,000. The record is clear, there are no 20-year periods where equities posted a negative total return. It is a testament to the power of long-term, discipline investing.

Today, the equity markets have risen to record levels once again. As discussed on my Market Insights blog, these record levels have been achieved by incredible earnings growth, very benign interest rates and massive liquidity. The market is here despite a host of worries; COVID, dysfunctional government and the looming threat of inflation.

The economy slowed in the third quarter, posting a disappointing 2 percent GDP. The market has concluded that this slowdown is indeed “transitory” and was due largely to the August-September Delta surge. Today, COVID cases, hospitalizations and deaths have once again plummeted, which is great news.

By Jennifer Corcoran, Esq.

The coming of a new year often has us reflecting back on things we meant to do but did not get done or looking forward to things we wish to accomplish. It is the perfect time to put an estate plan in place or review your existing estate plan for any changes that may need to be made.

In addition, major life changes such as marriage, divorce, the birth of a child, a death in the family or even an increase or decrease in assets or income warrant updating your estate plan.

You may have had the foresight to create an estate plan to ensure that your assets are distributed the way you want them to be after you are gone. However, each new year brings updates to laws and potential life changes, all of which should be reflected in your estate plan.

What if you don’t have an estate plan? The new year is the perfect time to create one, no matter how many—or few—assets you may have. Among the many benefits, an estate plan can help to protect families with children and ensure that heirs are not overburdened with debts or taxes. A good estate plan, created with the help of a knowledgeable estate planning attorney, allows you to control the distribution of your assets according to your wishes.

It is important that your will is in place and up to date, because without a will, your assets could pass under the intestacy laws to persons you do not intend or wish to receive them. You cannot pass assets to nonfamily members, and your estate cannot make charitable contributions without a will.

By Patrick J. Diggin

During the COVID-19 pandemic the CARES Act provided for expanded deductibility of charitable contributions to encourage taxpayers to give to charities during 2020. In December 2020, the Taxpayer Certainty and Disaster Tax Relief Act (TCDTR) was enacted which expanded and extended many of these provisions into 2021 to incentivize continued charitable giving through the end of the year.

The expanded benefits allow individuals who elect to take the standard deduction and ordinarily do not qualify for charitable contribution deductions, to deduct up to $300 ($600 for married taxpayers filing joint returns) for cash donations to qualified public charities.

For individual taxpayers that itemize their deductions, the expanded benefits increase the deduction limitation, ordinarily limited to up to 60 percent of the taxpayer’s adjusted gross income (AGI), up to 100 percent of AGI so long as the charitable contributions are made in cash to qualified public charities during 2021.

If excess contributions are made over the 100 percent limit, the donor may carry these excess deductions forward for up to five subsequent tax years, however the enhanced deductibility is set to expire after 2021.

Corporate taxpayers also saw an increase in deduction limits from the ordinary limitation of up to 10 percent of taxable income to 25 percent.

By Mark Shaw

Although it’s the end of 2021, it seems like 2020 all over again, right? Well, this year will have some new challenges.

Don’t let the last quarter of the year leave your business unprepared for growth and support. There are things you can do now to ensure that in the world of technology you are not left out in the cold come December.

During this time of the year, budgets are being built and the last of the year spends are getting planned out. In a perfect world, companies would finalize those purchases in late November or early December, just in time to get the hardware, software, or service in play and being used before Jan. 1.  Every business I know, StoredTech included, finds those final hour purchases to help with business financials.

In 2021, with the supply chain tightened and stretched in some areas, a wait-and-see approach cannot be taken.

Right now, chip shortages with car makers are the most visible to the public. The dealership lots are filled with many empty spaces. Go to your local grocery store, or even Walmart, these gaps in the shelves and lack of variety is now commonplace. Years ago, shelf space was at a premium and brands would pay extra to be at eye level. Now retailers are just trying to fill the shelves.

Although, it may seem normal to pick up alternative items when grocery shopping for your family, there are more consequential results when it comes to your business and how it can be impacted. The lack of materials visible in supermarkets, are visible in business technology as well.

By David A. Kubikian, Esq.

When people own something of sentimental value, they are sometimes unsure of how to pass it down to their family for future generations to enjoy. This is especially the case with a vacation home or camp that has been in the family for years.

Example: You own a beach or lake-front vacation home for years in a now sought-after area. You have seen your children (and grandchildren) grow up there and recall memories of watching sunsets over the water, roasting marshmallows over a campfire, and teaching the kids how to swim. It may be difficult to think that this home will be sold out of the family when you die and would like to preserve it for enjoyment of generations to come.

How can you best insure this property will be there for future generations to enjoy (and at times cohabitate), as your family tree grows or in future after your passing?

Who will be responsible for paying the Insurance? Taxes? Repairs? Maintenance? Fees?

Who decides which family members or friends use it and when?

What impact would future divorces or bankruptcies have on the property?

How can you protect the property from a Medicaid spend down?

By Debra Verni

It is that time of year when parents pack up their college bound child and drop them off at college.  When making a “to do” list of what our children need to be prepared for college the last thing on a parent’s mind is estate planning or advance directives.  

Have you thought about the fact that now that your child is 18, you can no longer make decisions for them, as they are an “adult” in the eyes of the law?

Although we all know, “adulting” is overrated, just the same, your child is an adult and you can no longer make financial or health care decisions for them.  

Why is this important to know?  When my son went away to college, I made sure he executed a health care proxy that appointed me as his agent.  I gave a copy of his health care proxy to student health services and after a few trips to the ER at the local hospital; they had it on file as well.  Without a health care proxy on file, health care providers did not have anyone to contact if my son could not make medical decisions for himself. The health care proxy gave me the ability to make health care decisions for him if he could not make decisions for himself.

By Jodi Tamburrino, RD, CDN

Whether you’re returning to the office or working from home, the change in seasons is the perfect opportunity to reset after a busy summer and prepare for a healthier fall.

Stay hydrated.

Although you may be tempted to indulge in extra caffeine as you readjust to a new schedule, what you should be drinking is water—and lots of it. Water eliminates excess calories by filling you up so you do not snack unnecessarily between meals. Adequate hydration also prevents constipation, flushes toxins from the body, promotes kidney function, and lubricates muscles and joints. 

When it comes to daily intake, Mayo Clinic recommends 15.5 cups (124 ounces) of water for men and 11.5 cups (92 ounces) of water for women. If you struggle with hydrating throughout your day, here are some things you might want to try: