With most markets taking a nose dive, it’s enough to make you run for the hills. Yet you’ve heard a lot of investment professionals tell you to “Stay the course.” But what does “stay the course” actually mean? It refers to maintaining the investment strategy that you put into action before the market crash, assuming it’s the right fit for your circumstances. When someone refers to an investment strategy, they are Read More
What are Asset Classes?
In Lesson One of Asset Allocation, we learned that when investment professionals say “Stay the course”, they mean investors should maintain their investment strategy, which typically refers to the portfolio’s asset allocation or the percentage amounts allotted to certain investment categories in your portfolio. In March 2020 most asset classes lost significant value, some almost 30% and others less than a percentage Read More
What are Your Nonprofit Endowment’s Asset Allocation Tolerance and Timing?
There are two important strategies that drive how and when you rebalance your portfolio. First, the percentage tolerance around your asset class weights and second, the timing of your rebalances. We recommend employing both of these strategies to your portfolio rebalancing in order to establish discipline around what could be an emotional process. Tolerance refers to the amount of drift you’re willing to accept when Read More
Checklist for Surviving a Broken Economy
We asked Brit Summerill, Partner with NOW CFO what lessons CFOs learned from the last recession. Here are a few things organizations need to do to start protecting themselves. Cash Flow Forecasting 13-week projection of the company’s available cash. Operational cost forecasting by week for the quarter—inventory, fixed costs, variable costs, payroll, etc. Establish Break-Even Point What is the minimum revenue Read More
This Is How Your Work, Spending And Life Changes From This Point Forward
As published by ForbesBY Chris Carosa, Senior ContributorMar 26, 2020,11:07am EDTAmerica has not seen this kind of massive national mobilization since World War II. You might have thought that particular America was long past, but today’s events prove we can still be a united nation. As the old saying goes, “when the going gets tough, the tough get going.”And America is one tough nation.Look at the many Read More
FORTUNE: What is a 401(k)? And why do you need one?
As published by Fortune/Careers/Retirement PlansBY SARAH FIELDINGMarch 24, 2020 1:00 AM ESTNot that you need more things to be stressed about right now, but does hearing the term “401(k)” leave you sweating? It can seem daunting, but a 401(k) is just an account designed to help you save money for retirement. Yes, it’s truly as simple as that.Employees across generations need to be thinking about retirement funds Read More
Fiduciary News: How Can a 401k Plan Sponsor Continue to Contribute to a Quarantined Employee’s 401k Account?
As published in FiduciaryNews.comMarch 10 00:032020 by Christopher Carosa, CTFADepending on the state a 401k plan sponsor is operating in, they may be finding their employees can no longer work on-site. This is done with safety in mind. But, depending on the circumstances, it may have a negative impact on employees’ ability to retire in comfort. This is especially true if the employee is no longer eligible for a Read More
Investor’s Business Daily: When Your Client Is A Nonprofit Board, Woo Allies To Make Progress
As published in Investor’s Business DailyBy MOREY STETTNER 08:00 AM ET 03/20/2020Too many cooks in the kitchen can pose a problem. So can too many clients in your office.For advisors who work with nonprofit organizations, the board of directors often becomes the client. Trying to serve a diverse group of people — addressing all their concerns and satisfying all their preferences — can prove exhausting.Board Read More
Fiduciary News: 401k Plan Sponsors Fiduciary Duty in Light of Coronavirus Fear
As published in FiduciaryNews.comMarch 10 00:032020 by Christopher Carosa, CTFAYou can’t escape it. It’s all over the news. Every headline screams of it. Every story twists its way to mention it. You can be certain every 401k retirement saver is thinking about it, fearing what their next statement will reveal.Time will tell of the 2020 Coronavirus becomes a virulent that created long-term buying opportunities for Read More
Stocks Stayed Low, Bond Prices Go Higher
Central banks jumped into action in March 2020 as Novel Coronavirus worries continued to batter markets, with the Fed cutting interest rates 0.50% and the ECB and Bank of England expected to follow. This action was meant to stimulate financial activity by making borrowing cheaper. Economists wonder how effective further rate cuts will be to boost the economy against a health epidemic. One thing is clear: investors Read More
