The sweeping tariff announcements by the Trump administration have pushed markets into a rapid selloff and added fuel to what was simmering volatility. At Financial Plan, we don’t pretend to know what the final resolution will be or where it will take us. However, we strongly believe that humans will continue to work through our […]
Restricted Stock
In addition to hourly wages or salary, employers often incentivize their employees with compensation in the form of company stock. Company stock can be awarded to employees without restriction or can be awarded through an Employee Stock Ownership Plan (ESOP) or purchased through an employee stock purchase plan (ESPP). These plans can have various goals; […]
A New Mental Accounting for Equity Exposure
Common Method of Allocating Between Equity Securities and Debt Instruments Portfolio design customarily begins with a decision regarding the percentage to be allocated to equity securities versus debt instruments[1]. Allocating and rebalancing to a percentage is simple; but the percentage to be allocated is typically nothing but a rudimentary judgement call, based upon ill-defined risk […]
Out of the Mouths of Babes
A few weeks ago, I was invited to teach an introduction to personal finance class to a group of local 8th graders. Two of the concepts we covered were compounding and why you need to have a real return (return above inflation). During the class, we reviewed charts of investment returns since 1926 and the […]
How Does a Government Shutdown Affect the Stock Market? Impact and Analysis
Another day, another crisis of leadership in our government. Fears of a looming government shutdown might have you wondering if it’s time to “shut down” your stock investments until this is all fully resolved. Currently, the government is only funded until November 17, 2023, igniting discussions about the financial implications of a shutdown. While the […]
Updated: Coronavirus: The Market Gets a Cold
Updated February 2, 2022 It’s been nearly two years since the economic impacts of Covid-19 and subsequent containment protocols first began hitting the markets. Given today’s (still, but for new reasons) turbulent market conditions, it seems to be a good time to reflect on the aftermath of the 2020 market drop. The thing I’m not […]
Lessons from GameStop Mania
By now, most of us have heard plenty about the frenzy going on around GameStop (ticker GME), a brick-and-mortar video game retailer. For quick background, GameStop is not in a good financial position and hasn’t been for some time. Their business model is based around retail malls selling a product that is rapidly becoming completely […]
Should I Manage My Own Investment Portfolio? | The Abysmal Record of DIY Investor Cash Flows
If 2020 taught personal investors anything, it’s that managing your own investment portfolio is a dangerous game. The typical DIY-investor relies upon news cycles, hunches, and emotion when deciding whether to be in or out of the market. The only thing predictable about this strategy is disappointment. 2020 was a volatile year, making it very […]
It’s a new year: What we know and what is to come
2020 was a roller coaster of a year with markets starting strong only to be disrupted by COVID-19, resulting in the fastest drop to a bear market in history. Even amidst widespread shutdowns, protests, and a presidential election, the market rebounded and once again reached all-time highs. With many fast-paced changes still underway, let’s take […]
What is the new ETF rule?
Every so often, something occurs that changes the way we invest, and we think it best to keep our clients informed regarding these changes. This year, one such change occurred: The Securities and Exchange Commission (SEC) has adopted the ETF Rule, which allows Exchange-Traded Funds (ETFs) to exchange securities within their portfolios for different securities […]