1st Quarter 2019 – Quarter Summary
On March 13, the unthinkable happened when social media giants Facebook and Instagram (owned by Facebook since 2012) were unavailable for more than 12 hours. While some were frustrated by the service outage, others were reminded of a time when social media was not a permanent fixture in our everyday lives.
As Facebook worked on resolving the issue, people found other ways to pass the time. Social media devotees had the opportunity to come up for air, straighten their posture and look around to see the friends and family in the room with them.
The more time we spend online, the less time we spend with the people around us. A Pew Research survey conducted in 2018 found that 68% of people surveyed use Facebook with 74% visiting the site at least once a day.1
Regarding relationships, author Cal Newport argues there is an important difference between real conversations and social media connections: “Conversation is the good stuff; it’s what we crave as humans and what provides us with the sense of community and belonging necessary to thrive. Connection, on the other hand, though appealing in the moment, provides very little of what we need.”2
Consider the three best conversations you had last week. Perhaps they were with family members, friends visiting from out of town or the barista at your favorite coffee shop. It is likely that these moments rise above the routine online interactions that briefly held your attention the rest of the week.
Real conversations are what we value in our relationship with you, particularly around your interests and your goals, both short term and long term. We are here to remind you that just three months ago, turbulent markets were a cause for concern for many investors, but those who remained disciplined were vindicated as markets recovered during the first quarter.
As for days when the markets experience a surge of volatility, Dimensional Fund Advisors offered this advice: “Investors should be cautious when interpreting headlines that reference point movements, as a move of, say, 500 points in either direction is less meaningful now than in the past largely because the overall index level is higher today than it was many years ago.”3
With the winter’s gloomy forecasts now in the rearview mirror, it is a great time to sit down (or virtually connect) with your advisor to review your financial plan. These topics deserve time for discussion:
Vehicles for Charitable Giving — Because of the new tax law, fewer households are itemizing their deductions. For these households, charitable giving may not be tax deductible. Donor advised funds are just one option to solve this issue. Which vehicles are appropriate for your charitable giving goals?
Potential Benefits of Refinancing — Interest rates have not been this low in a few years. Should you refinance your mortgage?
Asset Location and Retirement Planning — There are many different types of retirement accounts, only some of which are offered by employers. Based on your income tax bracket, should you make contributions to a Roth 401(k), a traditional 401(k) or both? Should you make a Roth IRA contribution? If you are a business owner (large or small), have you considered establishing a retirement plan such as a SEP IRA, solo 401(k), profit-sharing plan or cash balance plan that could have a significant impact on your taxes and your long-term retirement goals?
The Power of Health Savings Accounts — The Health Savings Account is the only triple tax-advantaged account, which makes it the most tax-advantaged account in which to save and invest. How can contributions be maximized?
Please contact your advisor if you would like to discuss any of these topics, your portfolio or the market. Until our next conversation, we look forward to speaking with you.
1 John Gramlich, “10 Facts About Americans and Facebook.” Pew Research Center, February 1, 2019.
2 Cal Newport, Digital Minimalism: Choosing a Focused Life in a Noisy World. Portfolio/Penguin, 2019, p. 150.
3 “Getting to the Point of a Point.” Dimensional Fund Advisors, March 2019.
Meet With Your Advisor
It is important to let us know when you have any changes in your investment objectives or financial circumstances. It is also important to review your account beneficiaries each year to make sure that no personal changes need to be made and the primary and contingent beneficiary designations are up to date and accurate. To notify us about any such changes that have occurred since we last met with you, please contact our office and schedule a meeting with your advisor.
We look forward to helping you stay on course.
PR Wealth Management Group, Inc. a Registered Investment Advisor, doing business as Legacy Wealth Management Group of Las Vegas, LLC. PR Wealth Management Group, Inc. only transacts business in states where it is properly registered or notice filed, or excluded or exempted from registration requirements. PR Wealth Management Group, Inc. and Legacy Wealth Management Group of Las Vegas, LLC. are not affiliated companies. The home office is located at 990 Avenue of the Cities, Suite 4., East Moline, IL. 61244. The Las Vegas branch is located at 8235 S. Eastern Ave. Suite 160., Las Vegas, NV. 89123. Before making investment decisions please call our office at 702.545.0680 to receive a copy of PR Wealth’s Advisory Agreement and Form ADV Part 2A, which includes PR Wealth’s fee schedule. This information is intended to serve as a basis for further discussion with your professional advisors. Although great effort has been taken to provide accurate numbers and explanations, this information should not be relied upon for making investment decisions. Web: www.Legacywmglv.com
Forum Financial Management, LP is registered as an investment advisor with the SEC and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the advisor has attained a particular level of skill or ability. The home office is located at 1900 S. Highland Ave., Suite 100, Lombard, IL 60148. Before making an investment decision, please contact our office at 630.873.8520 to receive a copy of Forum’s Advisory Agreement and Form ADV Part 2A, which includes Forum’s fee schedule. This information is intended to serve as a basis for further discussion with your professional advisors. Although great effort has been taken to provide accurate numbers and explanations, this information should not be relied upon for making investment decisions. web: www.forumfin.com
Information is used with the express permission from Dimensional Fund Advisors. Dimensional Fund Advisors is an investment advisor registered with the Securities and Exchange Commission. Consider the investment objectives, risks, and charges and expenses of the Dimensional funds carefully before investing. For this and other information about Dimensional funds, please read the prospectus carefully before investing. Dimensional funds are distributed by DFA Securities LLC.
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