Category Archives: Business Reports

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:

By Stephen Kyne, CFP

With market indices at, or near, all-time highs, it’s natural for some to wonder if they can go any higher? Never mind the fact that every all-time high has necessarily been prefaced by every other all-time high, loss-aversion makes many investors wary of a cliff. This is when you may start hearing the word “correction” tossed around. 

So, what is a correction? 

The standard definition of a market correction is a 10 percent pullback in the value of an asset, like a stock, or of an index, like the S&P 500. These pullbacks can happen slowly over a period of time, or as quickly as in a single day. Corrections can vary in length, as well, from just a few days to a several months. 

Market corrections are notoriously difficult to predict, however they generally happen when the price of assets far exceed their fair value, and markets become overly inflated. How inflated an asset must become is the great unknown.

Understandably, a 10 percent drop in the price of assets sounds like something that should be devastating. In the short-term it can be, but in the long-term corrections can be a boon to the market. Since market corrects tend to be overly broad, can they provide opportunities for investors to rebalance their portfolios and reallocate from areas that are truly overvalued, to those which may be undervalued. 

By Robert Snell

It’s unfortunate but true: As we age, we encounter more health-related issues and they carry a price tag that can get pretty high in retirement.

Will you be ready for these costs?

Perhaps your first step in preparing yourself is knowing what you may be facing. Consider this: 80 percent of Americans 65 and older have a chronic condition and 42 percent live with a disability, according to the National Coalition on Aging and the Centers for Disease Control and Prevention, as reported in a recent Edward Jones/Age Wave survey titled “Four Pillars of the New Retirement: What a Difference a Year Makes.” The study also found that retirees’ greatest financial worry is the cost of health care and long-term care—concerns that have increased during the COVID-19 pandemic.

And health care is likely going to be one of the largest expenses in retirement. The average couple might spend $10,000 to $12,000 per year on health care costs. Nonetheless, you can boost your confidence about meeting these costs by making the right moves.

By Rose Miller

We found a cool place to vacation in Rhode Island this year. The owner calls it Goatopia. She has created a little slice of heaven beside the Sakonnet River.

She is a former dancer who took her dance studio and her artistic style to create a unique and comfortable guest house for visitors.

The house is surrounded by beautiful gardens where she also tends to chickens and goats daily. The goats have names and you can tell the Billy because he stands proudly on the tallest stump in the pen.

This place got me thinking about how employers tend to their flocks. As employers, we have a responsibility to understand who works for us and what we want people to do for us. Results can be achieved when understanding how employee traits translate into achieving goals.

But here’s the thing. Do you need a herd of goats or do you need a flock of sheep? They may look all the same but there is big difference.