Market Commentary

The resources below provide additional information regarding trends and perspectives within our complicated and ever-changing financial environment. The research team at LPL Financial offers three excellent financial resource publications, entitled Market Commentary, Economic Commentary, and Portfolio Compass. We offer these publications as well articles, white papers and reference guides from our advisors and other thought leaders in the areas of investing, estate planning and insurance, among others.

Midyear Outlook 2019 

LPL Research’s Midyear Outlook 2019 shares that as investors face the prospect of periodic bouts of volatility, emphasizing fundamentals will remain critical to making effective investment decisions. The midyear report provides updated views of current fundamentals and factors that should persist as shorter-term concerns fade, while emphasizing the four primary pillars for investing – policy, the economy, fixed income, and equities.


Outlook 2019 

LPL Research believes three themes will be key to the markets:
· Sustaining growth via fiscal policy. Research believes the ongoing impact of fiscal stimulus will be readily apparent in 2019 and that policy will continue to play an important role for the economy and financial markets—potentially extending the duration of the current business cycle.
· Creating opportunity amid rising volatility. Research believes any bouts of market volatility should be embraced—not feared—by investors as an opportunity to rebalance portfolios toward targeted allocations.
· Fundamentals in focus. Research believes this economic and market cycle has more room to run given the team’s conviction in the fundamentals supporting economic growth and strong corporate profits. Depending on the measures, Research believes this cycle may prove to be the longest in history. Risks such as trade uncertainty, slowing global growth, and geopolitics do require careful monitoring, however, for their potential impact on the markets and economy.


Summary: 2017 Tax Cuts and Jobs Act

After more than a year of political posturing and investor anticipation, Congress finally approved a $1.5 trillion tax cut, the most sweeping U.S. fiscal overhaul since 1986. The 2017 Tax Cuts and Jobs Act was signed into law by President Trump last Friday, December 22, meeting his pledge to deliver tax reform before Christmas. The complex 1,000-page bill features changes that are intended to spur economic activity through a reduction in both individual and corporate tax rates, and simplify the tax code by eliminating or trimming a variety of deductions and exemptions. We present here a quick summary of the new tax act, comparing taxes as we knew them last year with what we can expect going forward.


Retirement Environment Index

The LPL Research Retirement Environment Index is a holistic ranking of the attractiveness of each U.S. state as a retirement destination. This unique index looks specifically at the 45- to 64-year-old cohort (pre-retirees) and collectively assesses strengths and weaknesses of pre-retiree desirability on a state level, rather than city or regional level. The 45- to 64-year-old cohort is the largest subset of the Baby Boomer generation but also includes some older members of Generation X. States are evaluated on six key factors, each with its own supporting metrics, to evaluate overall desirability for retirement.


Our 401k/IRA Rollover Guide

Most workers in the United States count on employers to help them save for a financially secure retirement. Employer-sponsored retirement plans such as 401(k) plans and profit sharing plans hold more than $24 trillion in retirement savings. One of the most important financial decisions workers will make is what to do with assets they have accumulated in their employer’s retirement plan when they leave their job. Traditionally, this decision needed to be made when workers retired, but it’s not just a retirement issue anymore. Today, most workers will change jobs several times during their working years. Unlike past generations that may have spent most of their career with a single employer, the median tenure for a worker today is only 4.6 years. Each worker who decides to go to work for a new employer may be faced with the decision of what to do with the retirement plan assets in the prior employer’s plan. The choices workers make each time they change jobs will have a significant impact on their retirement nest eggs.


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