Today's job report (~450K new jobs) shows that when/as the economy reopens the employment situation will recover relatively quickly. That also demonstrates quite clearly that the government's laser-focus on taming the virus is the correct approach, even if one can quibble about the details.

New Year’s Financial Resolutions

Did you make a New Year’s resolution this year? Maybe you want to exercise more or reconnect with old friends. For many people, getting their finances in order is a top priority. Here are some actions you can take to get a better handle on your finances in 2021:

Year in Review – 2020

 Given the monumental impact of the coronavirus disease (COVID-19), it is virtually impossible to discuss the twelve-month period as a continuous one. It’s more sensible to think about the world before COVID-19 (to be referred herein as BCV) and after (ACV). For our purposes here, we will define that demarcation point as the middle of February, when investors woke up to the cataclysmic impact the disease would have on the economy. There is little one could say about BCV that would be applicable to ACV.

Here at The Family Firm, we provide clients with personalized quarterly investment updates and a comprehensive annual investment report. Many clients like to get further into the weeds and review the monthly statements produced by our investment custodian, Charles Schwab. Here are some of the key sections of the statement that might be of interest.

For those of you that were unable to join us last Wednesday Night,  please click the Play button below to listen to our November 19 investment conference call. 

Who Holds Your Money?

If you are considering working with a financial planning firm, you might wonder who will have control of your assets if you become a client. Will the financial planning firm hold your assets? Will you be able to access your money when you need it?

Don’t Forget an Umbrella (Policy)

How Does Umbrella Insurance Work?

Umbrella insurance is a policy that covers you from a broad range of potential liabilities. It goes beyond other liability coverages you have, including home and auto policies, to cover large legal judgments.

For example, let’s say you were found liable for a multi-car accident and owe $500,000 for damage to the other cars and for the other drivers’ medical bills. If your auto policy had a $300,000 liability limit, you would have to pay the remaining $200,000 on your own. If you had an umbrella policy with a $1 million limit, the insurance company would cover the $200,000 difference.

For those of you that were unable to join us last Night, please click the Play button below to listen to our September 2, investment conference call. 

Monte Carlo Analysis and Your Finances

Harvesting Tax Losses and Gains

When investing in a taxable account, the timing of trades and the securities chosen can significantly impact your after-tax investment returns. Two tactics that can improve returns in taxable accounts are tax-loss harvesting and the lesser-known tax-gain harvesting.