The Right Tools Make all the Difference:

Created by: Jeff Bullock

A few years ago I was helping my brother renovate his front porch. Part of the project included taking out old concrete steps. Thinking we knew what we were doing, we began the demolition by pounding a sledge hammer over and over to break apart the old steps. After swinging the hammer for a while and with very little progress to show for our efforts, we realized there was probably a better way to accomplish our task. Knowing we needed a new approach, my brother ran to the store and rented a concrete cutting-saw. This proved to be a difference-maker!

I believe we did more demo in the first five minutes with that saw than we did in an hour of using the sledge hammer. We quickly dismantled the old step with the proper tool and moved on to our next task. The small price we paid for a professional-level tool was nothing compared to the time, effort, and body aches we saved by trying to use an outdated approach.

Principle:
Having the right tools, and in many cases, the right people to help operate those tools, can make all the difference in the outcome.

Application:
Are you using the right tools to manage your money? Have you ever found yourself saying, “There has to be a better way”?

Here are a few tools that can make a big difference:

- Tax Loss Harvesting Strategy: For invested money that is not in a retirement account, a tax loss harvesting strategy can help mitigate or delay taxes. These strategies are usually done through a separately managed account and can be an effective way to offset capital gains from other areas of your portfolio.

- Donor Advised Fund: Donor Advised Funds are great tools to facilitate charitable giving, especially if potential tax obligations merit a large charitable gift in a given calendar year. They can also be an effective way to set up a pseudo-family foundation without having to actually setup a foundation entity.

- Securities-based Credit Line: A credit line, collateralized by an investment portfolio, can be an effective tool to manage cash flows, bridge financing, or fund ventures without having to liquidate a portfolio or hold too much cash on the sidelines.

Having the right tools can make all the difference.

When I finally upgraded my driver after many years, I instantly hit the golf ball farther – nothing changed other than the tool I was using. The same is with money and investing. There are many tools that are available that will make a difference in helping you manage your money. Let us help you find and implement these tools.

Feedback from these newsletters is not only welcomed but encouraged. If you have any questions or comments, please email me at jeff@fidelis-wealth.com. If you think this might be useful to any of your friends or family, feel free to forward it to them.

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Weekly Market Snapshot – August 2nd, 2021

Created by: Sam Tenney

A year and a half after the Covid-19 shutdowns, supply chains are still struggling to keep up with impacted operations, with ports recording 20% more container volume than average for the past 20 years and with shipping delays up to 20 days above average.¹
Real GDP expanded at an annual rate of 6.5% in the second quarter. While output has now fully recovered its huge pandemic losses, 2Q GDP fell short of its 8.5% estimate due to an unexpected $166B drop in inventories.²
Beijing, China, has once again entered lockdown on the capital city after a surge in Covid variant cases, and is ordering mandatory testing for all residents in the city. While Beijing itself has very few cases, the government officials have said they want to stop any potential spread of the virus. The head of the city’s health commission was fired after 30 people in the city tested positive.³

SOURCES

1. https://www.ft.com/content/03a693a7-0445-41dd-a7f3-c1b6f162e5ef

2. https://am.jpmorgan.com/us/en/asset-management/adv/insights/market-insights/market-updates/weekly-market-recap/

3. https://www.theguardian.com/world/2021/aug/02/millions-under-strict-lockdown-china-covid-outbreak

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This blog is general communication being provided for informational purposes only. This information is in no way a solicitation or offer to sell securities or investment advisory services. It is educational in nature and not to be taken as advice or a recommendation for any specific investment product or investment strategy. This does not contain sufficient information to support an investment decision. Any investment or investment strategy mentioned may not be suitable for all investors or in their best interest. Statistical information, quotes, charts, references to articles or any other quoted statement or statements regarding market or other financial information is obtained from sources which we believe reliable, but we do not warrant or guarantee the timeliness or accuracy of this information. All rights are reserved. No part of this blog including text, graphics, et al, may be reproduced or copied in any format, electronic, print, et al, without written consent from Fidelis Wealth Advisors, LLC. Fidelis Wealth Advisors does not provide legal or tax advice. Please be advised to consult with your investment advisor, attorney or tax professional before making any investment decisions.

Weekly Market Snapshot – July 12th, 2021

Created by: Sam Tenney

Coming off a record high in May, the Global PMI Composite Output Index fell 1.8 bps to 56.6 in June. The overall decline in the Global Composite PMI index was marked by regional nuances. Most influential were the dips in the U.S. and China PMIs, whereas the eurozone PMI continued its upward trajectory.¹
US 10-year bond yields had their largest drop in many months, briefly dipping below 1.25% yield last week. This has been in stark contrast to the majority of bond managers, which have been calling for 10-year yields to top 2%. ²
Wells Fargo has suspended all lines of personal credit offered at the bank as of Saturday, July 10th. Pitched as a way to consolidate higher interest credit debt, or avoid overdraft fee’s, the decision to shutdown the program comes a year after Wells Fargo suspended home equity loans and auto-dealer loans, prompting speculation on the decision to cut the program despite historic bank cash levels.³

SOURCES

1. https://am.jpmorgan.com/us/en/asset-management/adv/insights/market-insights/market-updates/weekly-market-recap/

2. https://www.ft.com/content/8110eba3-63ef-4b2f-9e14-584ed111cab1

3. https://www.reuters.com/lifestyle/wealth/wells-fargo-close-all-personal-lines-credit-cnbc-2021-07-08/

The [Money] Waiting Place

Created by: Jeff Bullock

About halfway through the classic Dr. Seuss book, Oh The Places You’ll Go, the main character’s journey takes him to a very peculiar spot. As he looks around, he finds many people who are hanging out; some are just sitting doing nothing while others are standing in a line. Perhaps it is due to indecision or lack of motivation, but it appears that no one is anxious to get anywhere. We learn that he has stumbled into The Waiting Place, where “everyone is just waiting” – waiting around, with no real urgency, for something to happen to them. Luckily for him, and for us as the reader, our friend finds his way out of this complacent place and is able to get on with his adventure. Referring to The Waiting Place, we read, “No! that’s not for you, somehow you’ll escape all that waiting and staying, you’ll find the bright places where the Boom Bands are playing”

I always enjoy reading this part of his journey because it forces me to do a quick evaluation to see if I’ve created any self-imposed waiting places in my life. It’s a great life principle taught in a funny and unique way.

Have you ever felt stuck with money decisions? How do you get unstuck? Do you wait for something to happen or do you find a way to “escape all that waiting and staying?” Similar to our friend’s predicament in the book, “The [Money] Waiting Place” is definitely not for you!

Perhaps you have excess cash that you want to invest but don’t know where to start. Or maybe you need advice around a big purchase, but feel unsure on how it will impact your finances. A useful way to make sure you never get caught in The [Money] Waiting Place is to organize your finances using the ‘bucket approach.’ Organizing money into separate buckets, with specific intents and purposes, can help you escape The Waiting Place. The key is creating a plan, organizing with intent, and then executing the plan.

At Fidelis Wealth, we help you escape The [Money] Waiting Place!

By implementing sound principles of planning, building, and using a long-term financial approach, we want to help you improve your financial situation. Similar to our friend in the story who found his way out of The Waiting Place, and eventually was “off to great places,” we look forward to helping you in any way we can with your money questions and needs.

Schedule a financial consultation today Schedule Now

Weekly Market Snapshot – June 28th, 2021

Created by: Sam Tenney

with the 2Q21 earnings season approaching, JP Morgan believe that earnings will come in well above current estimates, and are forecasting an earnings surprise of 14.6% for the S&P 500. This would represent a decline from the 23.7% surprise observed in 1Q21, but would still be above the long-run average of 7%.¹
The Senate has passed the Biden Infrastructure bill, the 1.2 trillion dollar bill with a large focus on public utilities, electronic utilities, and major roadway initiatives. The spending and allocation will be done over the course of the next 8 years.²
Republican senators are worried the fed might be “behind the curve” on inflation, as the recent months large inflation prints have left markets worried about the future for government interest rates. The 10-year bond is currently yielding 1.48%. ³

SOURCES

1. https://am.jpmorgan.com/us/en/asset-management/adv/insights/market-insights/market-updates/weekly-market-recap/

2. https://www.bbc.com/news/world-us-canada-57604121

3. https://www.ft.com/content/1127449b-a332-4682-a6ff-37b8a7273643

Weekly Market Snapshot – June 21st, 2021

Created by: Sam Tenney

The Federal Reserve member rate hike expectations sharply raised this month, with Reserve Board Members now expecting two full rate hikes by 2023. Average inflation projections also jumped to 3.4% over the timeframe.¹
Lumber prices are now down 48% from their peak, currently trading at $875 per thousand feet down from $1686 in early May. Lumber product researchers have said this is largely due to increased services spending by consumers over renovation spending. ²
Thursday, June 17th, The Federal Reserve raised the Interest on Excess Reserves (IOER) rate to 0.15%, and the Overnight Reverse Repurchase (ORR) rate to 0.05%. As we have noted the past few weeks, the ORR facility has hit new all time highs of volume of $755 Billion, 50% higher then last weeks all time high, due to the privately set Secured Overnight Financing Rate (SOFR) reaching near the 0% lower bound on the federal funds rate. ³

SOURCES

1. https://www.cnbc.com/2021/06/16/fed-holds-rates-steady-but-raises-inflation-expectations-sharply-and-makes-no-mention-of-taper.html

2. https://www.ft.com/content/38bedc2b-e605-4b7c-8f6e-9f61c398718c

3. https://www.reuters.com/article/usa-fed-reverse-repo/update-1-fed-reverse-repo-volume-soars-to-another-record-after-rate-adjustment-idUSL2N2NZ23Y

Weekly Market Snapshot – June 14th, 2021

Created by: Sam Tenney

CPI came in at 0.6% rise in May, for a 5.0% inflation print annually. This is 0.3% over the predicted numbers for the month, and above the feds average inflation targeting, raising concerns over possible early tapering. ¹
Homebuyer sentiment has collapsed to 12-year lows, with only 35% of Fannie Mae respondents in May 2021 saying they think now is a good time to buy a house. This is in response likely to soaring housing prices despite pending evictions being at all time highs. ²
Last week’s Job Openings and Labor Turnover Survey (JOLTS) report put the total number of open positions hiring at 9.31 million for May, eclipsing the total number of unemployed Americans. The quit-rate also spiked to 2.7%, showing the strength of the US workforce’s ability in bargaining power currently. ³

SOURCES

1. https://www.bls.gov/cpi/

2. https://www.fanniemae.com/research-and-insights/surveys/national-housing-survey

3. https://am.jpmorgan.com/us/en/asset-management/adv/insights/market-insights/market-updates/weekly-market-recap/

What a 700 year-old Castle Taught Me About Money

Created by: Jeff Bullock

I hope this monthly newsletter finds you well. Money management and finances can be complicated, stressful, and exuberant, and yet, they are so very personal. My goal with these letters is to give you a few ideas and principles that will hopefully spark thoughts, conversations, and potentially even nudge you to make small changes in the way you approach money.

A number of years ago I was traveling through Great Britain and visited Beaumaris Castle in Northern Wales. In the years since that trip, I’ve grown to love the history and story behind its construction and architecture. For its time, Beaumaris had a state-of-the-art defensive design. If you look at a picture, you will see a moat, a drawbridge, a small outer wall, a larger inner wall, big towers, and a firing platform. The design was a “walls within walls” plan, and some scholars consider it the pinnacle of military engineering for the time period. Beaumaris Castle wasn’t built to simply be another castle, it was meant to be a mighty fortress. Unfortunately, this fortress was never completed because improper financial planning led to money shortages and eventually to abandoning the construction. Ironic, isn’t it? What should have been a beautiful and strong fortress was derailed, not by poor design or engineering, but by improper financial planning.

There are a few principles and applications we can learn from Beaumaris Castle as it relates to managing money:

Principle 1: How to build a fortress: The principle of building a fortress, and not merely a castle, requires a “walls within walls” approach, or said another way, “layers upon layers” of defenses. The Beaumaris design was fantastic. Redundancy upon redundancy was thought of and (almost) built, creating what surely would have been an (almost) impenetrable fortress.

Application: When building a financial plan or investment portfolio, the approach of organizing your money into “buckets” that have different jobs or intentions can help create these “layers upon layers.” Different types of buckets that could be part of your plan might be: a rainy day bucket, a short-term needs bucket, an insurance bucket, a long-term investment portfolio bucket, a college savings bucket, a retirement bucket, etc. Organizing with intent is the key to a proper plan.

Principle 2: Poor planning and poor execution usually leads to poor outcomes: We see in the example of Beaumaris Castle that fantastic intentions and designs can be derailed by poor planning and execution.

Application: Successful financial outcomes are a biproduct of proper goal-setting, planning and execution; each of these pillars must be in alignment. It’s important to be realistic and understand that most financial goals take years, not months to achieve, but getting on the right path early can make all the difference decades down the road.

At Fidelis Wealth, we help you build your personal financial fortress. By implementing sound principles including planning, building, and using a long-term financial approach, we want to help you improve your financial situation, regardless of the current state.

Feedback from these newsletters is not only welcomed but encouraged. If you have any questions or comments, please email me at jeff@fidelis-wealth.com. If you think this might be useful to any of your friends or family, feel free to forward it to them.

Schedule a financial consultation today Schedule Now

Weekly Market Snapshot – May 17th, 2021

Created by: Sam Tenney

Unfilled job openings have surged over the past 6 months, rising to the highest recorded level on record with 8.1 million current job openings. Unemployment however remains high, at around a 6.1% current unemployment rate.¹
With more than 90% of S&P 500 market cap having reported earnings, JP Morgan estimates 1Q21 operating earnings per share (EPS) coming in at $47.29, representing a year-over-year growth of 143%.²
Consumers have discharged more credit card debt in 1Q21 then any other period on record, drawing down total credit card balances by $49 Billion in the quarter. This highlights the increased economic uncertainty consumers currently face, making them less likely to take on high interest-bearing debt.³

SOURCES

1. https://www.ft.com/content/da9dd7e5-50f2-43ef-aae4-e9eb19f4fc29

2. https://am.jpmorgan.com/us/en/asset-management/adv/insights/market-insights/market-updates/weekly-market-recap/

3. https://insight.equifax.com/advantage-to-lockdowns-paying-down-credit-card-debt/

Weekly Market Snapshot – May 10th, 2021

Created by: Sam Tenney

As of Friday, May 8th, the BLS employment report posted 226,000 new jobs added. This number is far below the consensus estimates of a record 1 million+ print expected, raising concerns over the roll of government assistance in a weak employer market.¹
Four US states, Montana, Arkansas, North Carolina, and Florida, will be ending the supplementary unemployment income benefits earlier than expected, with these states aiming to end the income benefits by the end of June. This is in reaction to large labor shortages from the businesses in these areas.²
Corn price per bushel has reached a new 9-year high, having risen from $3 a bushel a year ago to $7.5 now, a 150% increase. Corn is a primary input to many consumer food groups, leading to speculation on further consumer cost increases.³