Acting vs. Reacting

Year-End Planning Reminders

2020 has certainly been a year of unexpected changes and challenges. While we know everyone is eager to flip their calendar and start a new year, we wanted to send you a list of things to think about as we near year - end:

Cares Act and RMDs

As a reminder, taking a Required Minimum Distribution is not required for 2020 due to the CARES Act that was passed earlier this year. However, that doesn’t mean that you can’t take a distribution from your IRA especially if you rely on the money for living expenses. It may also make sense to take a distribution if you know your tax bracket will be higher in the future. Everyone over the age of 72 should have already discussed this with us but if you have not please feel free to give us a call to discuss your options.

Gifts and Charitable Donations

Are you thinking about making additional gifts to family or charitable donations in 2020?

If so, please let us know as soon as possible. Once we have the paperwork in hand, transfers are typically completed within two to three business days. Given the high volume of gifts around the holidays, we need to have the paperwork by December 21st at the latest to ensure that the transfers happen before the end of the year. If you are over the age of 72, you should consider the ways to make charitable donations directly from your retirement accounts.

Capital Gains and Tax-Loss Harvesting

Do you have large gains or losses outside of your accounts with Carroll Financial?
If not, there is nothing you need to do. If you do, please let us know because this might be a good time to take some additional gains or perhaps harvest some losses.

Tax Loss Carryforwards

Have you let us know about any tax loss carryforwards?
If not, please let us know so we can note them and take these into consideration when we review your accounts.



Income Planning

How is your money working for you?
Your 2020 budget may have looked very different as compared to most normal years. Many of our clients have realized this year the difference between the budget they need to live on and the budget they want to live on. It’s important to distinguish between these two to ensure that you have flexibility in your budget if and when you need it for unexpected circumstances. The end of the year is a great time to review your spending and create a budget for the upcoming year. Oftentimes reviewing your spending can bring to light ways to save. It's also helpful to review your withdrawal rate with your advisor to make sure it is in line with your long-term goals.

Beneficiary Designations

Have you reviewed your beneficiary designations this year?
Make sure your current designations are still in line with your estate plan and give us a call if we can help you make any related changes.

Roth Conversions

We have had several conversations about Roth conversions this year. It’s important to remember that the real opportunity to convert to a Roth happens when you have little to no taxable income. December 31st is the deadline to complete a Roth conversion so let us know if you would like to discuss whether or not this makes sense for your situation.

Medicare Open Enrollment

Do you need to enroll in Medicare?
The 2021 Open Enrollment Period runs from Thursday, October 15th to Monday, December 7th, 2020

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Bottom Line:

If you have questions or would like to talk about any of the items above, give us a call. We're here and happy to help as you prepare for the end of 2020. 

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Required Disclosures: 

This article was originally written by Kris Carroll of Carroll Financial Associates and is copywritten but shared with permission.  Advisory Services offered through Carroll Financial Associates, Inc.. a Registered Investment Advisor.  Registration does not imply a certain level of skill or training.  Carroll Financial and Peak Alpha Wealth Management, L. L. C. are not affiliated.
                 
 For a comprehensive review of your personal situation, always consult with a tax or legal advisor.  Neither Peak Alpha Wealth Management LLC nor any of its representatives may give legal or tax advice.       
Copyright © 2020 Carroll Financial Associates, Inc., All rights reserved.  Shared with permission to Peak Alpha Wealth Management LLC. Non-affiliate.

 Copyright © 2020 All rights reserved to Peak Alpha Wealth Management LLC. Article facts remain for content. Article altered, edited and updated for our clients best interest by Jeanne Hungerford of Peak Alpha Wealth Management, L.L.C. 3010 3rd Street South Ste. A  Jacksonville Beach, FL 32250 (904) 500-5050.

 Advisory Services offered through Carroll Financial Associates, Inc. a Registered Investment Advisor.  Registration does not imply a certain level of skill or training.  Carroll Financial and Peak Alpha Wealth Management, L. L. C. are not affiliated.  CNBC and Peak Alpha Wealth Management L.L.C. are not
affiliated.  For a comprehensive review of your personal situation, always consult with a tax or legal advisor. 

Neither Peak Alpha Wealth Management LLC nor any of its representatives may give legal or tax advice.    We are not affiliated with Carroll Financial Associates Inc.,

Copyright © 2020 All rights reserved to Peak Alpha Wealth Management LLC.  Article facts remain for content.  Article altered, edited and updated for our clients best interest by Jeanne Hungerford of Peak Alpha Wealth Management, L.L.C. 3010 3rd Street South Ste. A  Jacksonville Beach, FL 32250 (904) 500-5050.

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Once in a very great while there comes a year in the economy and the markets that may serve as a tutorial, or better yet a master class, about the principles of successful, goal-focused investing in the long term. 2020 was certainly such a year.

On December 31, 2019, the S&P 500 closed at 3,230.78. This past New Year’s Eve it closed 16.3% higher at 3,756.07. You might infer from these figures that the equity market had quite a good year. Indeed it did, but what should be sophenomenally instructive to the long-term investor is how it got there.

From a new all-time high on February 19, the market reacted to the onset of the greatest public health crisis in a century by going down roughly one third over five weeks. The Federal Reserve and Congress responded with massive intervention and the economy learned to work around the lockdowns, which resulted in the S&P 500 regaining its February high by mid-August.

The lifetime lesson here:

At its most dramatic turning points, the economy cannot be forecast and the market cannot be timed.

Instead, sticking to a long-term plan and acting as opposed to reacting (which is our investment policy in a nutshell) once again demonstrated its enduring value.

The second great lifetime lesson of this educational year had to do with the presidential election cycle. To say that it was the most hyper-partisan election in living memory just doesn’t come close to adequately describing it. Supporters of both candidates were genuinely convinced that the other would, if elected or reelected, precipitate the end of American democracy. And those who exited the market in anticipation of the election got thoroughly and almost immediately skunked.

The enduring historical lesson:

Never get your politics mixed up with your investment policy.

As we move into 2021, we have been assured by the Federal Reserve that it is prepared to hold interest rates near current levels until the economy is functioning at a level close to full capacity, which could be as long as two to three moreyears. This makes it difficult to see how we can pursue our long-term goals with fixed income investments. Stocks and their potential for long-term growth of capital seem to be the more rational approach. In turn, we tune out volatility. We act. We do not react. This was the most effective approach to the unruly fluctuations of 2020, and I believe it always will be.

Bottom Line: We cannot predict what 2021 will bring, but we can make smart and careful decisions about how we will invest over the coming years.

Required Disclosures:

This article was originally written by Kris Carroll of Carroll Financial Associates and is copywritten but shared with permission.  Advisory Services offered through Carroll Financial Associates, Inc.. a Registered Investment Advisor.  Registration does not imply a certain level of skill or training.  Carroll Financial and Peak Alpha Wealth Management, L. L. C. are not affiliated.
                 
 For a comprehensive review of your personal situation, always consult with a tax or legal advisor.  Neither Peak Alpha Wealth Management LLC nor any of its representatives may give legal or tax advice.       
Copyright © 2020 Carroll Financial Associates, Inc., All rights reserved.  Shared with permission to Peak Alpha Wealth Management LLC. Non-affiliate.

 Copyright © 2020 All rights reserved to Peak Alpha Wealth Management LLC. Article facts remain for content. Article altered, edited and updated for our clients best interest by Jeanne Hungerford of Peak Alpha Wealth Management, L.L.C. 3010 3rd Street South Ste. A  Jacksonville Beach, FL 32250 (904) 500-5050.

 Advisory Services offered through Carroll Financial Associates, Inc. a Registered Investment Advisor.  Registration does not imply a certain level of skill or training.  Carroll Financial and Peak Alpha Wealth Management, L. L. C. are not affiliated.  CNBC and Peak Alpha Wealth Management L.L.C. are not
affiliated. 

An Adaptable Retirement and Happy Holidays

An Adaptable Retirement… And Happy Holidays

I have written in the past about the importance of having flexibility in your retirement plan. The ability to adapt to changes in markets or the economy is one of the key elements of security and happiness during retirement. I do not believe I ever thought of how adaptable a retirement might be after 2020, which has made it clear that things can change in ways we never expect.
 
The Society of Actuaries released a Retirement Health & Happiness guide a few years ago (obviously pre-COVID-19). Their first and most important piece of retirement advice was that it’s essential for retirees to stay socially connected due to the beneficial effects on your emotional well-being. I think staying connected during COVID-19 has been the biggest challenge of 2020 for many of my retired clients. 
 
It has hit many of us in ways we never expected and I wish I had a magic solution. We suddenly realize the importance of the few minutes we get to spend chatting with coworkers, friends, and even people we pass by at the grocery store. We are social creatures and now we must adapt to changes in how we socialize. 
 
However, we can change. We are adaptable. As we experience this unique holiday season and prepare for a new year in 2021, I hope we all remember that we can change and that change is not always bad. Nothing improves without first adapting. Leonard Mlodinow wrote Elastic: Unlocking Your Brain’s Ability to Embrace Change in 2018, which is an excellent read for anyone looking for your next non-fiction book.  In it he says that, “to have original thoughts, you have to let the ideas flow first and worry about their quality (or appropriateness) later.”

I want to make this my holiday wish and New Year’s advice to all retirees:
 
Even during these especially trying times, try new things, think new thoughts, experiment. Embrace the changes and explore ways to enjoy what you do have in new ways.
 
We had an idea at the office to have a Christmas decorating contest. I thought to myself, “That sounds great, let’s try it.”  Famous last words, right? Things have gone a little overboard and I’m starting to question the appropriateness of this idea...

 One of the challenges of retirement planning is that things can and will change, particularly over a retirement that can last decades. Be adaptable and try new things because some will be great.  For example, I think Zoom meetings are a wonderful alternative for many of my clients who are unable to meet at our office.

Other ideas may be suspect in quality or appropriateness: (See collage of office photos)
 
Regardless, new ideas and trying new things can and will make you happier, healthier and even more energetic.
 

Bottom Line: Retirees need to be adaptable. Not just to changes in the economy, but to changes in the world. The rate of change is accelerating, but that can be a great thing. Happy Holidays and I look forward to a different and hopefully better 2021.


 Required Disclosures: 

This article was originally written by Kris Carroll of Carroll Financial Associates and is copywritten but shared with permission.  Advisory Services offered through Carroll Financial Associates, Inc.. a Registered Investment Advisor.  Registration does not imply a certain level of skill or training.  Carroll Financial and Peak Alpha Wealth Management, L. L. C. are not affiliated.
                 
 For a comprehensive review of your personal situation, always consult with a tax or legal advisor.  Neither Peak Alpha Wealth Management LLC nor any of its representatives may give legal or tax advice.       
Copyright © 2020 Carroll Financial Associates, Inc., All rights reserved.  Shared with permission to Peak Alpha Wealth Management LLC. Non-affiliate.

 Copyright © 2020 All rights reserved to Peak Alpha Wealth Management LLC. Article facts remain for content. Article altered, edited and updated for our clients best interest by Jeanne Hungerford of Peak Alpha Wealth Management, L.L.C. 3010 3rd Street South Ste. A  Jacksonville Beach, FL 32250 (904) 500-5050.

 Advisory Services offered through Carroll Financial Associates, Inc. a Registered Investment Advisor.  Registration does not imply a certain level of skill or training.  Carroll Financial and Peak Alpha Wealth Management, L. L. C. are not affiliated.  CNBC and Peak Alpha Wealth Management L.L.C. are not
affiliated.  For a comprehensive review of your personal situation, always consult with a tax or legal advisor. 

Neither Peak Alpha Wealth Management LLC nor any of its representatives may give legal or tax advice.    We are not affiliated with Carroll Financial Associates Inc.,

Copyright © 2020 All rights reserved to Peak Alpha Wealth Management LLC.  Article facts remain for content.  Article altered, edited and updated for our clients best interest by Jeanne Hungerford of Peak Alpha Wealth Management, L.L.C. 3010 3rd Street South Ste. A  Jacksonville Beach, FL 32250 (904) 500-5050.

Carroll Financial named in Barron’s 2020 list of Americas best RIA firms

We are excited to announce that Carroll Financial was recently named on Barron's 2020 list of America's Top 100 Registered Investment Advisor (RIA) Firms.

Carroll Financial was one of two firms in North Carolina and the only firm in South Carolina to be named on this list. 

We are very proud of this accomplishment, which is one of the most prestigious lists for a financial planning firm in the United States.
 

You can access the full list of Top 100 RIA Firms here:

Barron's List: America's Top 100 RIA Firms

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Bottom Line:

We are honored to be named on this list and work hard every day to provide our clients with the best possible service, advice and communication. Thank you for your continued loyalty, trust and support; without you this recognition would not be possible. 

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Required Disclosures: 

This article was originally written by Kris Carroll of Carroll Financial Associates and is copywritten but shared with permission.  Advisory Services offered through Carroll Financial Associates, Inc.. a Registered Investment Advisor.  Registration does not imply a certain level of skill or training.  Carroll Financial and Peak Alpha Wealth Management, L. L. C. are not affiliated.
                 
 For a comprehensive review of your personal situation, always consult with a tax or legal advisor.  Neither Peak Alpha Wealth Management LLC nor any of its representatives may give legal or tax advice.       
Copyright © 2020 Carroll Financial Associates, Inc., All rights reserved.  Shared with permission to Peak Alpha Wealth Management LLC. Non-affiliate.

 Copyright © 2020 All rights reserved to Peak Alpha Wealth Management LLC. Article facts remain for content. Article altered, edited and updated for our clients best interest by Jeanne Hungerford of Peak Alpha Wealth Management, L.L.C. 3010 3rd Street South Ste. A  Jacksonville Beach, FL 32250 (904) 500-5050.

 Advisory Services offered through Carroll Financial Associates, Inc. a Registered Investment Advisor.  Registration does not imply a certain level of skill or training.  Carroll Financial and Peak Alpha Wealth Management, L. L. C. are not affiliated.  CNBC and Peak Alpha Wealth Management L.L.C. are not
affiliated. 
             
For a comprehensive review of your personal situation, always consult with a tax or legal advisor. 

Neither Peak Alpha Wealth Management LLC nor any of its representatives may give legal or tax advice.    We are not affiliated with Carroll Financial Associates Inc.,
Copyright © 2020 All rights reserved to Peak Alpha Wealth Management LLC.  Article facts remain for content.  Article altered, edited and updated for our clients best interest by Jeanne Hungerford of Peak Alpha Wealth Management, L.L.C. 3010 3rd Street South Ste. A  Jacksonville Beach, FL 32250 (904) 500-5050.

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‘Tis the Season

Tis the Season:

Year-End Planning Reminders

2020 has certainly been a year of unexpected changes and challenges. While we know everyone is eager to flip their calendar and start a new year, we wanted to send you a list of things to think about as we near year - end:

Cares Act and RMDs

As a reminder, taking a Required Minimum Distribution is not required for 2020 due to the CARES Act that was passed earlier this year. However, that doesn’t mean that you can’t take a distribution from your IRA especially if you rely on the money for living expenses. It may also make sense to take a distribution if you know your tax bracket will be higher in the future. Everyone over the age of 72 should have already discussed this with us but if you have not please feel free to give us a call to discuss your options.

Gifts and Charitable Donations

Are you thinking about making additional gifts to family or charitable donations in 2020?

If so, please let us know as soon as possible. Once we have the paperwork in hand, transfers are typically completed within two to three business days. Given the high volume of gifts around the holidays, we need to have the paperwork by December 21st at the latest to ensure that the transfers happen before the end of the year. If you are over the age of 72, you should consider the ways to make charitable donations directly from your retirement accounts.

Capital Gains and Tax-Loss Harvesting

Do you have large gains or losses outside of your accounts with Carroll Financial?
If not, there is nothing you need to do. If you do, please let us know because this might be a good time to take some additional gains or perhaps harvest some losses.

Tax Loss Carryforwards

Have you let us know about any tax loss carryforwards?
If not, please let us know so we can note them and take these into consideration when we review your accounts.



Income Planning

How is your money working for you?
Your 2020 budget may have looked very different as compared to most normal years. Many of our clients have realized this year the difference between the budget they need to live on and the budget they want to live on. It’s important to distinguish between these two to ensure that you have flexibility in your budget if and when you need it for unexpected circumstances. The end of the year is a great time to review your spending and create a budget for the upcoming year. Oftentimes reviewing your spending can bring to light ways to save. It's also helpful to review your withdrawal rate with your advisor to make sure it is in line with your long-term goals.

Beneficiary Designations

Have you reviewed your beneficiary designations this year?
Make sure your current designations are still in line with your estate plan and give us a call if we can help you make any related changes.

Roth Conversions

We have had several conversations about Roth conversions this year. It’s important to remember that the real opportunity to convert to a Roth happens when you have little to no taxable income. December 31st is the deadline to complete a Roth conversion so let us know if you would like to discuss whether or not this makes sense for your situation.

Medicare Open Enrollment

Do you need to enroll in Medicare?
The 2021 Open Enrollment Period runs from Thursday, October 15th to Monday, December 7th, 2020

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Bottom Line:

If you have questions or would like to talk about any of the items above, give us a call. We're here and happy to help as you prepare for the end of 2020. 

---

Required Disclosures: 

This article was originally written by Kris Carroll of Carroll Financial Associates and is copywritten but shared with permission.  Advisory Services offered through Carroll Financial Associates, Inc.. a Registered Investment Advisor.  Registration does not imply a certain level of skill or training.  Carroll Financial and Peak Alpha Wealth Management, L. L. C. are not affiliated.
                 
 For a comprehensive review of your personal situation, always consult with a tax or legal advisor.  Neither Peak Alpha Wealth Management LLC nor any of its representatives may give legal or tax advice.       
Copyright © 2020 Carroll Financial Associates, Inc., All rights reserved.  Shared with permission to Peak Alpha Wealth Management LLC. Non-affiliate.

 Copyright © 2020 All rights reserved to Peak Alpha Wealth Management LLC. Article facts remain for content. Article altered, edited and updated for our clients best interest by Jeanne Hungerford of Peak Alpha Wealth Management, L.L.C. 3010 3rd Street South Ste. A  Jacksonville Beach, FL 32250 (904) 500-5050.

 Advisory Services offered through Carroll Financial Associates, Inc. a Registered Investment Advisor.  Registration does not imply a certain level of skill or training.  Carroll Financial and Peak Alpha Wealth Management, L. L. C. are not affiliated.  CNBC and Peak Alpha Wealth Management L.L.C. are not
affiliated.  For a comprehensive review of your personal situation, always consult with a tax or legal advisor. 

Neither Peak Alpha Wealth Management LLC nor any of its representatives may give legal or tax advice.    We are not affiliated with Carroll Financial Associates Inc.,

Copyright © 2020 All rights reserved to Peak Alpha Wealth Management LLC.  Article facts remain for content.  Article altered, edited and updated for our clients best interest by Jeanne Hungerford of Peak Alpha Wealth Management, L.L.C. 3010 3rd Street South Ste. A  Jacksonville Beach, FL 32250 (904) 500-5050.

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"Real" Unemployment

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"Real" Unemployment

You’ve probably read that unemployment in America is 7.9%, down from over 15% earlier this year.  That’s bad, but not really terrible since it appears to imply that 92.1% of Americans looking for a job can find one.

Yet when you dig a little deeper, as a statistician from the Ludwig Institute for Shared Economic Prosperity recently did on Axios.com, you find a darker picture.  He notes that the U.S. Bureau of Labor Statistics deems a person to be “unemployed”  if he or she is earning no money whatsoever and actively looking for work.    

A deeper dive into the numbers starts with a new definition, which is anyone who is looking for a full-time job that pays a living wage, but cannot find one.  Using the same data from the Bureau of Labor Statistics, the statistician looked back to January of this year when the official rate of unemployment was 3.6%.  He found that what he calls the “true” rate was actually seven times greater at 23.4%.  The “true” unemployment rate for white Americans rose above 30% in recent months before settling back down to its current rate of 23.6%.  Black Americans are currently living with a “true” unemployment rate of 30.4%.  Only 46.1% of white Americans and 40.8% of Black Americans now have a full-time job paying more than $20,000 per year.

You can see from the chart above that the current unemployment catastrophe is actually nothing new.  Low rates of employment and low incomes have been at crisis levels for decades, but the crisis has been hidden behind official numbers. 

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Bottom Line: The American economy must do better.

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Required Disclosures: 

This article was originally written by Kris Carroll of Carroll Financial Associates and is copywritten but shared with permission.  Advisory Services offered through Carroll Financial Associates, Inc.. a Registered Investment Advisor.  Registration does not imply a certain level of skill or training.  Carroll Financial and Peak Alpha Wealth Management, L. L. C. are not affiliated.
                 
 For a comprehensive review of your personal situation, always consult with a tax or legal advisor.  Neither Peak Alpha Wealth Management LLC nor any of its representatives may give legal or tax advice.       
Copyright © 2020 Carroll Financial Associates, Inc., All rights reserved.  Shared with permission to Peak Alpha Wealth Management LLC. Non-affiliate.

All that Glitters…

We have spent so much time during 2020 discussing the extreme moves in the stock market and particularly tech stocks, but we haven’t talked much about gold. The price of gold hit its all-time record value rising over 30% and breaking through $2,000 per ounce in 2020. Then, rather abruptly and unexpectedly, gold suffered the biggest daily decline in more than seven years. Today, gold is trading back just slightly below the $2,000 mark.

So what’s going on?  Gold has long been considered by many investors to be a hedge against uncertainty.  Some believe it’s a store of value when other assets are subject to downward pressures and also as a last resort if there is a total societal collapse and fiat currencies lose value or become worthless. The less you trust the stability of the economic system, the more of a lure there is to put more of your money into something tangible with a gleaming luster.  You can simply put your net worth in a very strongly reinforced pocket and rule the apocalypse… We have never really subscribed to this idea. Perhaps we are too optimistic to see planning for the end of the world as an investment strategy.

Typically, gold is expected to rise when we experience any of the following scenarios:

1. High inflation

1. The U.S. dollar begins to lose its value

1. The government runs high federal deficits (thereby cheapening the value of the dollar)

1. The global economy is ravaged by something such as the COVID-19 pandemic

We have always been suspicious of gold’s effectiveness as an inflation hedge and research supports that it does not work well.  It’s simply too dependent on market whims. In fact, its price fell 45% during the benign economic climate between 2011 and 2015. 

In January of 1980, the precious metal closed at a then-record of $850 an ounce.  That would represent about $2,800 an ounce in today’s dollars, which is well above today’s sub-$2,000 price. Many people who invested in the last high lost their shirts. That same $850 in January of 1980, would have been enough to purchase seven shares of an S&P 500 index fund.  Today, those seven shares would be worth more than $22,000.

This does not mean that one should never own gold as an investment. There are times when fear rules the markets and if you believe that the current pandemic will get worse, gold may be a good holding to protect against that kind of move. You do have to be ready for volatility if you are wrong and we do not generally believe that gold is something to leave in a portfolio for decades.

…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..

Bottom Line: I expect there will be more commercials out there trying to sell gold as an investment. Know what you are getting into, why you are getting into it and make sure it works with your portfolio. As a stand-alone investment over a long period of time, there are probably better options.

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Required Disclosures: 

This article was originally written by Kris Carroll of Carroll Financial Associates and is copywritten but shared with permission.  Advisory Services offered through Carroll Financial Associates, Inc.. a Registered Investment Advisor.  Registration does not imply a certain level of skill or training.  Carroll Financial and Peak Alpha Wealth Management, L. L. C. are not affiliated.
                 
 For a comprehensive review of your personal situation, always consult with a tax or legal advisor.  Neither Peak Alpha Wealth Management LLC nor any of its representatives may give legal or tax advice.       
Copyright © 2020 Carroll Financial Associates, Inc., All rights reserved.  Shared with permission to Peak Alpha Wealth Management LLC. Non-affiliate.

FT 300: Investor uncertainty spells boon for US financial advisers | Financial Times

The list — compiled by Ignites Research, an FT sister company — assesses RIAs with assets under management (AUM) of more than $300m on their expertise and other credentials desirable to investors.

www.ft.com

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The Financial Times Top 300 Financial Advisors is an independent listing produced by the Financial Times. The FT 300 is based on data gathered from firms, regulatory disclosures, and research conducted on behalf of the Financial Times by Ignites Research, a Financial Times sister publication. The listing reflects each advisor’s performance in six primary areas.

The factors are:

1. Assets under management;

2. AUM growth rate;

3. Years of experience;

4. Compliance record;

5. Industry certifications;

6. Online accessibility.

Neither the brokerages nor the advisors pay a fee to the Financial Times in exchange for inclusion in the FT 300. Listing in this publication and/or award is not a guarantee of future investment success. This recognition should not be construed as an endorsement of the advisor by any client.

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When the coronavirus outbreak sent US stocks tumbling in February, one of the US’s largest registered investment advisers was on hand to allay their clients’ worst fears. The team at Carson Wealth counselled investors by phone and video calls, as markets whipsawed, in some cases talking clients through the process of applying for loans from the Paycheck Protection Program, the US Treasury’s bailout fund aimed at keeping small businesses afloat. “There was a lot to do. Because we were proactive, we wound up gaining clients who hadn’t heard anything from their [incumbent] advisers,” says Ron Carson, founder and chief executive of the Omaha-based firm.  The seventh annual FT 300 Top Registered Investment Advisers list (see table below) comes as the most severe hit to the global economy since the Great Depression underscores retail investors’ need for in-depth and tailored advice.  This is why we’re seeing advisers emphasise their role as more of a financial life coach. Sometimes, the investment piece is the easy part Joe Ziemer, Betterment The list — compiled by Ignites Research, an FT sister company — assesses RIAs with assets under management (AUM) of more than $300m on their expertise and other credentials desirable to investors. The FT 300 is presented here as an elite group segmented by state, rather than a competitive ranking of one to 300 (scroll below the table to see the full methodology). Breadth of service is a key theme in this year’s list, with many advisers managing retirement planning, tax management, philanthropy and other aspects of clients’ financial lives beyond just investments. In 2019 — the period analysed for the latest FT 300 list, for which the data was collated in April and May — RIAs saw an average 13 per cent rise in their client numbers thanks in part to these additional services. To meet demand, companies increased the number of staff involved in delivering advice ─ including client-facing roles and those researching funds ─ from a median of 15 employees in last year’s list to 17 this year. Larger teams give these advisory firms the resources to communicate directly with clients, which can help soothe investors during turbulent times. When surveyed, the FT 300 group said that roughly 82 per cent of their clients had made no changes or only minor tweaks to their long-term investing plans, despite the coronavirus-led convulsions in the markets. They estimated that only 4 per cent of investors lost confidence in the long-term performance of the markets, while 10 per cent sought to profit from the volatility. As financial markets in the US are down only slightly since the end of 2019, this has so far helped advisory firms to remain relatively resilient to the crisis. Meanwhile, the desire to scale up has continued to drive many RIAs towards mergers and acquisitions. United Capital, based in Newport Beach, California, and one of the biggest independent RIA firms, was acquired by Goldman Sachs for $750m in July 2019. And in March, Captrust Financial Advisors acquired Welch Hornsby, a large Alabama-based adviser with $5.5bn under management.

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This pattern of expansion and consolidation among RIAs has led to growth in assets among the FT 300 firms: the median AUM of this year’s cohort, as at the end of 2019, is $1.9bn, up 29 per cent from the previous year. In addition, more than a third (36 per cent) of the companies on the list credit acquisitions for much of their growth over the prior three years, compared with 30 per cent in 2019.  These changes have intensified competition for a place on the FT 300, with many companies outdoing peers based on narrow differences. Advisers on the list hail from 39 states, and Washington, DC. Once again, California is the state with the most advisers on the list (50), far ahead of New York state’s 28. In addition to M&A activity between advisers, private equity firms have entered the market. In June, GTCR took a 25 per cent stake in North Carolina-based Captrust, in a deal that valued the adviser at $1.25bn. This followed similar moves including Hellman & Friedman’s $3bn acquisition of Financial Engines in 2018, which it merged with Edelman Financial, and earlier this year General Atlantic acquired a minority stake in Creative Planning, an RIA with more than $50bn in assets. Scroll below the table at the end of this article to see the full methodology.  The pandemic has temporarily slowed dealmaking but consolidation among RIAs will accelerate in the long run, says David DeVoe, chief executive at DeVoe & Co, an investment bank and consultancy. He believes the crisis will gradually persuade a greater number of small RIA owners, who lack the scale needed to compete on technology and services, to retire. “We’ll see more advisers decide that it’s the right time to dial it back,” Mr DeVoe says. Indeed, quality of technology was cited by nearly half the advisers on the list as their top challenge. Many RIAs plan to continue some working from home beyond the opening months of the pandemic, which means technology will become critical in supporting increased digital interaction with clients.  The rise of so-called robo-advisers — platforms that provide low-cost financial guidance — such as Betterment has spurred traditional firms to distinguish themselves from the disrupters’ cheap, automated investment portfolios by emphasising the personal touch.  Most elite RIAs see such technology as a complement to human advisers, who can tailor advice to individuals’ needs. FT 300 advisers estimate that investing accounts for just under half of the value they provide to clients, with the remainder coming from financial planning and other services.  “Advisers have to show their value more,” says Joe Ziemer, vice-president of communications and policy at Betterment. “This is why we’re seeing advisers emphasise their role as more of a financial life coach. Sometimes, the investment piece is the easy part.” With the markets facing longer-term volatility, this could be an opportune time for advisers to demonstrate their deeper worth. Loren Fox is director of research at Ignites Research, an FT company.

Top 300 US registered investment advisers by state

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Company City Client Segments Served

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Retail High Net Ultra-High Net Worth Institutional

(<$1m) Worth ($1m — $10m) ($10m+)

Carroll Financial Associates Charlotte X X X X

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Methodology

This seventh edition of the FT 300 assesses registered investment advisers based on desirable traits for investors. We present the FT 300 as an elite group, not a competitive ranking of one to 300. This is the fairest way to identify the industry’s elite advisers while accounting for the companies’ different approaches and specializations. To ensure a list of established companies with substantial expertise, we examine the database of RIAs registered with the US Securities and Exchange Commission and select those with more than $300m in assets under management (AUM).  The Financial Times and Ignites Research, the FT’s sister company, invited qualifying RIA companies — more than 2,000 — to complete a lengthy application that gave us more information about them. We added this to our own research into their practices, including data from regulatory filings. Some 760 RIA companies applied and 300 made the final list.  The formula the FT uses to grade advisers is based on six broad factors and calculates a numeric score for each adviser. Areas of consideration include AUM, asset growth, the company’s age, industry certifications of key employees, SEC compliance record and online accessibility. The reasons these were chosen are as follows:  • AUM signals experience managing money and client trust.  • AUM growth rate can be a proxy for performance, as well as for asset retention and the ability to generate new business. We assessed companies on three-year growth rates.  • Companies’ years in existence indicates reliability and experience of managing assets through different market environments.  • Compliance record provides evidence of past client disputes; a string of complaints can signal potential problems.  • Industry certifications (CFA, CFP, etc) shows the company’s staff has industry knowledge and a professional commitment to investment skills.  • Online accessibility shows a desire to provide easy access and transparent contact information.  Among the top factors in our scoring, AUM accounted for an average of 72 per cent of each adviser’s score. Their growth rate accounted for an average of 15 per cent. The FT places a cap on the number of advisers from any one state, corresponding to the distribution of millionaires across the US. The research was conducted on behalf of the Financial Times by Ignites Research, a Financial Times sister publication. Loren Fox

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Recognition from rating services or publications is no guarantee of future investment success. Working with a highly rated advisor does not ensure that a client or prospective client will experience a higher level of performance of results. These ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluations.

Advisory Services are offered through Carroll Financial Associates, Inc. A Registered Investment Advisor. Registration does not imply a certain level of skill of training. Carroll Financial and Peak Alpha Wealth Management are not affiliated. Peak Alpha Wealth Management 3010 3rd Street South Suite A Jacksonville Beach, FL 32250 904-500-5050 Thepeakalpha.com. Sharing this article was granted through FT 300 with permission 08/2020.

Required Disclosures:

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Used with permission from Carroll Financial Associates Inc. written and published by Kris Carroll. Advisory Services are offered through Carroll Financial Associates, Inc. A Registered Investment Advisor. Registration does not imply a certain level of skill of training. Carroll Financial and Peak Alpha Wealth Management are not affiliated.

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“I was sitting in a meeting with Sandy Cleasby last week (a lot of you know Sandy since she’s been here for over 25 years). We were talking about the process of sharing information with a new client who we’ve yet to meet with in person and how to provide helpful instructions by utilizing videos and checklists. Sandy turned to me and said, “Can you imagine us even worrying about this six months ago? We have to stay focused on the positives, now more than ever.” Said Kris Carroll in an article shared and published by Carroll Financial Associates Inc., a registered investment advisor. Registration does not imply a certain level of skill of training. Carroll Financial and Peak Alpha Wealth Management are not affiliated.
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Kris Carroll continued that

“This reminded me of two key elements as advisors in our profession:

1. Stay positive precisely when everyone else is at their most negative.

2. Always keep learning.”

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“I had clients asking me and encouraging me to take more risk in their portfolios just six months ago. My job at that time was to reply with a reasonable voice of caution and stick to the plan. Three months later when the world was seemingly coming to a halt, my job was to stay positive and stick to the plan. It makes the advisor’s job sound boring, but being the contrarian isn’t always easy. Sometimes advisors want to panic just like any investor. Staying positive when times get tough can be a challenge. However, I find that it is so much easier to do when you surround yourself with positive people. It is just one of the many things that is so great about working with Sandy.”

” I do think that this crisis is making us better as advisors and as a company. Every bear market is unique, but this one has been truly unusual.

• We are learning how quickly markets can change when a non-financial event occurs.

• We are learning about risk and our clients’ risk tolerance in the face of new risks and a new “not so normal.”

• We are examining new strategies and testing old ones.

• We are looking at new ways to protect retirement income streams in a world of extremely low interest rates.

We are also improving in ways that have nothing to do with financial markets.

• We are examining our technology in a new way and learning how to work together when we are not sitting in the same room.

• We are learning what works and what doesn’t work in a virtual environment.

• We are looking at our technology through new eyes and looking at our employees in new ways.

I believe we are working smarter than ever. “

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Bottom Line: I (Kris Carroll) want to thank Sandy not just for all that she does, but for reminding me to stay positive and encouraging me to see our improvements during these difficult times.

This is Your Brain on Spending

There is evidence all around that many people spend money irrationally oftentimes to make them feel better, to satisfy their mid-life crises or to show off a lifestyle they really cannot afford in order to “keep up with the Joneses.”  All of these behaviors are rooted in our brains.

So why does spending money feel good?  This question is especially timely given the recent pandemic-related layoffs, market declines and the growing needs of bored people to find recreation in spending when they should probably be hoarding their financial resources.

The science website Gizmodo recently posed this question to several researchers and their answers were interestingly diverse.  One pointed to “acquisition utility,” which many of us experience when we see something we want priced below what we expect the price to be.  This could be renamed the bargain hunting syndrome. This satisfaction of finding or negotiating a bargain and the pleasure it creates seems to be hardwired into the human mind. 

The researcher also explained “retail therapy,” which occurs when depressed people go on a shopping spree to cheer themselves up.  Buying and making purchase choices helps restore a sense of control over our lives when it feels as if the outside world is robbing us of it. 

Another researcher addressed the “keeping up with the Joneses” behavior by contending that paying for an expensive bottle of wine or a high-end brand item can send out positive social signals. It boosts other people’s opinions about our wealth and therefore reflects positively on our personal social esteem. 

An additional respondent dug deeper into the human mind, noting that the reward centers of our brains are tightly connected.  If you want something, these regions begin secreting dopamine and you experience a “gotta have it” feeling.  The same brain centers are closely linked to our memory banks and our minds recall that we felt good the last time we made a purchase.

“Present bias” was also noted, which is the simplest explanation of all.  When you buy something with your credit card, you are immediately rewarded with the acquisition of something you want.  The commensurate pain of losing the money you paid is deferred into the future when the bill comes.  Research shows that the immediate gratification is far more likely to win out over the delayed discomfort of making the payment.

Toward the end of the study, another researcher noted that individual human psychology and culture play a role in all of this.  Some people are natural misers and prefer to hide their money under the mattress than part with it through a purchase.  Others seem to be more likely to succumb to the various brain patterns that            encourage spending.  It just depends on who we are.

I do not believe I work with very many unreasonable spenders.  However, I found this information interesting and think it provides some good context about why some people spend so much.

Bottom Line:

    Pay attention to your spending and if it changes, let’s talk about why.

Required Disclosures: 

This article was originally written by Kris Carroll of Carroll Financial Associates and is copywritten but shared with permission.  Advisory Services offered through Carroll Financial Associates, Inc.. a Registered Investment Advisor.  Registration does not imply a certain level of skill or training.  Carroll Financial and Peak Alpha Wealth Management, L. L. C. are not affiliated.
                 
 For a comprehensive review of your personal situation, always consult with a tax or legal advisor.  Neither Peak Alpha Wealth Management LLC nor any of its representatives may give legal or tax advice.       
Copyright © 2020 Carroll Financial Associates, Inc., All rights reserved.  Shared with permission to Peak Alpha Wealth Management LLC. Non-affiliate.

Jonathan Camarda President of Peak Alpha Wealth Management, L. L. C.

A reminder that we’re here for you in the midst of
uncertainty

As the coronavirus continues to spread in the U.S. and overseas, we understand that you might be hesitant to come into our office for a meeting or an event.  The health of our clients, families, associates and community is very important to us. 

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We wanted to take a moment to remind you that we are always available by phone, email, Zoom, screen share or video conference and will respond as

quickly as possible through any medium.  

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Bottom Line: 

As we navigate this time of uncertainty together, we hope that you and your families are safe and well. Be assured that we are here if you need us. 

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Required Disclosures:

This article was originally written by Kristopher W. Carroll, CFA®, CFP® of Carroll Financial Associates Inc.

The article above is shared in content with permissions. Copyright © 2020 All rights reserved to Peak Alpha Wealth Management LLC.  (Article facts remain for content our office specifics are altered to specify our capabilities.) Article altered, edited and updated for our clients best interest by Jeanne Hungerford of Peak Alpha Wealth Management, L.L.C. 3010 3rd Street South Ste. A  Jacksonville Beach, FL 32250 (904) 500-5050.

Thepeakalpha.com Office specifics to us……for the best interest of our clients….original content edited, and altered to ensure we are meeting client needs in the best interest and protection of the client’s needs. Advisory services offered through Carroll Financial Associates, Inc., a Registered Investment Advisor. Registration does not imply a certain level of skill or training. Peak Alpha Wealth Management, L. L. C. and Carroll Financial Associates Inc. are not affiliated.         
        
        
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3010 3Rd Street South Suite A Jacksonville Beach, FL 32250 (904)500-5050 Thepeakalpha.com

First Priority: Save the Patient

I initially wrote an article about revisiting your financial plan during this unprecedented bear market. However, after the market started to recover I decided to instead focus on what all of this stimulus will do for the economy in the long term. I still think it’s a good time to review your plan with your advisor because a financial plan should be able to weather the type of drawdown we experienced during the first quarter. I strongly believe that reexamining a plan during times of uncertainty is important because corrections allow us to think more clearly about the risk we are comfortable (or uncomfortable) taking in our portfolios. Securing your financial future comes into greater focus and examining the long-term plan in light of intense volatility is a worthwhile exercise that often provides comfort to investors.

Our government used stimulus in a truly new way to bolster the economy coming out of the 2008-2009 financial crisis. We saw QE1, QE2 and even QE infinity. There were varying opinions and concerns about the long-term effects of pushing so much liquidity into the financial markets. The recovery from the financial crisis was the slowest economic recovery since the Great Depression, but we did recover. Now more than a decade later, we are responding to the COVID-19 crisis with an even greater stimulus package.

The Federal Reserve, Congress and Treasury Department have worked together to send checks to individuals, create forgivable loans to small businesses, send stimulus money to specific troubled sectors and push liquidity into fixed income markets. The total price tag is over $4 trillion. I’d be lying if I said that I knew exactly what to expect, but I do have some ideas about specific responses to a few potential outcomes:

1. National debt. I believe that higher levels of debt lead to slower growth. I also believe that as long as the economy starts the path to recovery that it will eventually recover. I expect a slow recovery, but I also have faith in America. I believe that we will get through this and eventually thrive. The alternative would be that the future is worse than the past. Believing in that denies the evidence of decades of growth and centuries of technological advancement.

1. Future inflation. Inflation has stayed very low during the past decade despite the stimulus from the 2008-2009 financial crisis. If you want to protect yourself from inflation, take the advice of Jeremy Siegel who wrote “Stocks for the Long Run.” Siegel argues that the best inflation protection is to own stocks because over the last 200 years stocks have averaged a return of more than 7% above the rate of inflation. I would rather own stocks than gold or inflation-protected securities to outpace inflation in the long run.

1. Interest rates. The 10-Year Treasury currently pays less than 1% per year. Unprecedented low rates have been one of the interesting trends in recent years. When the 10-Year Treasury pays 4%, I will start to consider the risks of higher interest rates.

I do not mean to say that there is nothing to worry about as consequences could present themselves. But our economy was facing a new threat. It was similar to a patient on the operating table going into cardiac arrest. When a doctor sees a patient on the table dying, his or her first priority is to save the patient and not worry about the side effects of the drugs that are administered. We did everything we could think of to save our patient and I believe that we succeeded. We will address the side effects if and when they arise.

Required Disclosures:

This article was originally written by Larry Carroll of Carroll Financial Associates Inc.

The article above is altered in content using the article above by Jeanne Hungerford at Peak Alpha Wealth Management, LLC.

Copyright © 2020 All rights reserved to Peak Alpha Wealth Management LLC.  Article facts remain for content.  Article altered, edited and updated for our clients best interest by Jeanne Hungerford of Peak Alpha Wealth Management, L.L.C. 3010 3rd Street South Ste. A  Jacksonville Beach, FL 32250 (904) 500-5050.

Thepeakalpha.com New Update……for the best interest of our clients….original content edited, upgraded and altered to ensure we are meeting client needs in the best interest and protection of the client’s needs.

BE IN THE KNOW is a way to ensure our clients realize how they have options in this crisis of Covid-19 to use in the advantage and best interest of the client.  No part of this article is deemed all encompassing, just informational.

First Priority: Save the
Patient

By: Larry W. Carroll, CFP®

 

One more quick thought…

Over time, lower interest rates are good for the economy and good for the consumer.

Over time, lower oil prices are good for the economy and good for the consumer.

Bottom Line: 

We do not know when this volatility will end. We do not know if this is the official end of a long bull market run. What we do know is that interest rates are at a historic low and oil prices are at their lowest levels in years.

Required Disclosures:

This article was originally written by Kris Carroll of Carroll Financial Associates and is copywritten but shared with permission.  Advisory Services offered through Carroll Financial Associates, Inc.. a Registered Investment Advisor.  Registration does not imply a certain level of skill or training.  Carroll Financial and Peak Alpha Wealth Management, L. L. C. are not affiliated.
                 
 For a comprehensive review of your personal situation, always consult with a tax or legal advisor.  Neither Peak Alpha Wealth Management LLC nor any of its representatives may give legal or tax advice.       

Copyright © 2020 Carroll Financial Associates, Inc., All rights reserved.  Shared with permission to Peak Alpha Wealth Management LLC. Non-affiliate.

Our Upcoming Office Move on April 20, 2020
 

We are excited to announce that we are still on track to move into our new office space next Monday, April 20th. 

Our new address will be: 4521 Sharon Road, Suite 400, Charlotte, NC 28211,which is the fourth floor of the Porter Building located directly across from the entrance to SouthPark Mall.

This week is a little bittersweet for us since we've been in the Rotunda Building since the early '90s. However, we are looking forward to having more conference rooms, a client lounge area, a larger classroom to hold events (once that becomes an option again), a more organized office layout, easy parking and a family room if you need to bring your children or grandchildren with you to meetings.
 

Our phone numbers, fax number and email addressees will stay the same. 
 

We look forward to having you in our new office space once the world gets a little more back to normal. Stay tuned for pictures of the new office and as always, you can follow along on our social media pages as well for a sneak peek of the space.

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Bottom Line: 

We are excited about our upcoming office move on April 20th. As a reminder, we are here for you during this time via email, phone or virtual meeting. Stay safe and healthy and please let us know if there’s anything we can do for you.
   

From the desk of:
Kristopher W. Carroll, CFA®, CFP®
Carroll Financial Associates, Inc.
4201 Congress Street, Suite 210

Required Disclosures:

This article was originally written by Kris Carroll of Carroll Financial Associates and is copywritten but shared with permission.  Advisory Services offered through Carroll Financial Associates, Inc.. a Registered Investment Advisor.  Registration does not imply a certain level of skill or training.  Carroll Financial and Peak Alpha Wealth Management, L. L. C. are not affiliated.
                 
 For a comprehensive review of your personal situation, always consult with a tax or legal advisor.  Neither Peak Alpha Wealth Management LLC nor any of its representatives may give legal or tax advice.       

Copyright © 2020 Carroll Financial Associates, Inc., All rights reserved.  Shared with permission to Peak Alpha Wealth Management LLC. Non-affiliate.

Do We Know Any Better than the Market?

Do We Know Any Better Than The Market?

Investors often try to predict what is next during times of volatility. There’s constant discussion over when the true bottom will hit and which investments will recover the fastest. It is tempting to try to outsmart the market by thinking about how the virus will affect major companies.

What many investors don’t realize is that the market adjusts to new information very quickly. If the market is going to go down tomorrow, it goes down today. If everyone knows it’s going down this quarter, it goes down now. For some reason this is a hard concept for many investors to understand. Simply put, the market is constantly pricing in things that are going to happen in the future.

A great example of this is the explosion of the Space Shuttle Challenger in 1986. Four major companies were contracted to produce the shuttle, one of which was Morton Thiokol. At the time of the explosion no one could figure out what went wrong. Experts quickly got to work looking for the cause, but they didn’t have an answer for the public until months later.

Meanwhile, the market seemed to figure it out right away. In the few minutes after the explosion, the price of all four companies took a quick and hard hit. But within the hour, the amount of Morton Thiokol shares being sold far outpaced the other three companies. The selloff volume was so heavy that the stock was halted on the trading floor. While the other three companies seemed to stabilize, Morton Thiokol continued to fall. By the market close, Morton Thiokol had lost significantly more than the others and ended the day down 12%.

Long story short, Morton Thiokol was eventually found liable for the parts that were defective during the Challenger launch. The company paid millions of dollars to the families of the astronauts and completely lost their reputation in the marketplace. What took the government eight months to figure out, the market had priced in within the hour.

This isn’t to say that markets are always this efficient and that opportunities don’t present themselves. The market is not always right. There are pricing discrepancies and certainly things we can take advantage of during times of market volatility. But too often we think we can outsmart the market, when really much of what we are experiencing has already been factored in.

Right now, many experts predict that the Coronavirus will continue to worsen until the end of April. We would expect markets to continue to fall as the pandemic worsens. But how do we know that those projections aren’t already priced in? Why would we own stocks when we know that the virus will get worse? Do we really know anything that the market doesn’t?

Let me reiterate that I have no idea how markets will behave in the short run. If the virus spreads faster than experts predict, I think that markets will get worse. If social distancing is very effective at slowing and controlling this outbreak, markets may improve. The move higher this week seems to be in response to a slowing in the number of new cases. Notice that I said a slowing in new cases, because we still have more total cases today than yesterday.

Bottom Line:  The pandemic is projected to get worse, but we don’t know if the markets haven’t already factored this in. Markets react in advance of the economy.  

Required Disclosures:

This article was originally written by Kris Carroll of Carroll Financial Associates and is copywritten but shared with permission.  Advisory Services offered through Carroll Financial Associates, Inc.. a Registered Investment Advisor.  Registration does not imply a certain level of skill or training.  Carroll Financial and Peak Alpha Wealth Management, L. L. C. are not affiliated.
                 
 For a comprehensive review of your personal situation, always consult with a tax or legal advisor.  Neither Peak Alpha Wealth Management LLC nor any of its representatives may give legal or tax advice.       

Copyright © 2020 Carroll Financial Associates, Inc., All rights reserved.  Shared with permission to Peak Alpha Wealth Management LLC. Non-affiliate.

What Now?

What Now?

If we look back over the last 20 years, many of us are now experiencing our third “once in a lifetime” bear market. During these times we hear that each bear market is unique and we are setting new records for the worst week or month.  It’s almost funny that last week set a record for the best week for stocks since 1933.

I'm sure many of us are feeling cooped up and stressed. We're not able to go about our daily lives and many of us can’t enjoy the things we normally do to relieve stress, such as going to the gym or playing bridge with our friends. Stress only intensifies our feelings of loneliness or anxiety about financial markets and makes it harder for us to think rationally.

I always suggest to retirees that they need to take care of themselves physically, emotionally and intellectually.
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Physically what can you do?

1. Keep your activity level up. I see more people than ever outside taking walks these days and think it's very important to stay active.

2. Get some sunshine! We have been blessed recently with beautiful spring weather, so please try to enjoy it. Increasing your vitamin D intake can help in so many ways.

3. Find rest. Far too many of us struggle with sleeping soundly. Make sure that you are getting a good night’s rest.

4. Eat right. I see this as a great opportunity to cook more and avoid overeating at those restaurants I like so much. Get creative with your cooking and experiment a bit as well.

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Emotionally what can you do?

1. Stay connected with friends and family. I love that my clients are using FaceTime and Zoom see their loved ones. It isn’t the same, but try it anyway and then do more of it!

2. Avoid negative people that simply drain your energy.

3. Complete some home projects. That feeling of accomplishment goes a long way.
   

4. Count your blessings and find ways to help others. More on that below...

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Intellectually what can you do?

1. Turn off the news and catch up on a good book. I for one am getting tired of watching the CNBC staff live from their living rooms.

2. Or change the channel and find a new TV show or movie that inspires you.

3. Play games or build puzzles. I recently discovered a number of puzzles in my closet that I never got around to putting together.
     

4. Seek additional home projects that might challenge your mind.

“Finally, remember that you are blessed. No matter how bad things get, I am always thankful for my many blessings. I am blessed to have been born in America and raised by two loving parents. I am
  blessed with two amazing children. I am blessed to have a job that I love. I am blessed to work with an amazing team of people and so many wonderful families.“ says Kris Carroll of Carroll Financial Associates Inc.

”If you count yourself as blessed, think of ways that you can help others during this uncertain time. Buy gift cards for the places you’ll want to visit when this is all over. Visit websites to support a local restaurant,
  bookstore or charity. Imagine how hard many of these small businesses are being hit right now. I certainly don’t want the shutdown to end and then find out that the only stores still operating are grocery stores and Walmart.”
   
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  Bottom Line:
  Stay safe, stay healthy and don’t stress! This too shall pass.

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Required Disclosures:
This article was originally written by Kris Carroll of Carroll Financial Associates and is copywritten but shared with permission.  Advisory Services offered through Carroll Financial Associates, Inc., a Registered Investment Advisor.  Registration does not imply a certain level of skill or training.  Carroll Financial and Peak Alpha Wealth Management, L. L. C. are not affiliated.
                 
For a comprehensive review of your personal situation, always consult with a tax or legal advisor.  Neither Peak Alpha Wealth Management, L. L. C. nor any of its representatives may give legal or tax advice.       

Copyright © 2020 Carroll Financial Associates, Inc., All rights reserved.  Shared with permission to Peak Alpha Wealth Management, L. L. C.

April 1st, 2020

The CARES ACT

My Thoughts on the CARES Act

“Over the weekend I had an opportunity to read through the CARES Act in addition to a number of summaries and analyses from different sources. The Act is probably best described as a relief effort as opposed to an economic stimulus. The headline number of $2 trillion certainly sounds impressive, but I would like to focus on the pieces that directly affect most of you.”

Checks for Individuals (Recovery Rebates):
"The government will be cutting checks directly to individuals.” 

“The IRS will look at your 2019 tax returns (or 2018 if a 2019 filing is not available) and send $1,200 to single filers with an Adjusted Gross Income below $75,000 or $2,400 to joint filers with an AGI below $150,000. The government will add $500 for each dependent under the age of 17.”  

“These benefits will phase out at higher income levels (you lose $5 for every $100 in income above the threshold) until they reach zero for a single filer with no children and an AGI of $99,000. It has been estimated that three quarters of tax filers will qualify for aid and that the total amount of these checks will reach $507 billion. People who did not file a 2018 or 2019 tax return because they earned less than the standard deduction might qualify. For example, the government will determine the check eligibility for people who receive Social Security benefits based on their Form SSA-1099. However, many others will be left out of the distribution. Individuals without Social Security numbers are also excluded, which leaves out Dreamers and families of filers who only have Individual Taxpayer Identification Numbers.  Dependents over the age of 17, including cared-for parents and disabled children, are also not eligible for the direct payment.  This check is technically a rebate for 2020 taxes and is not taxable. However, if your eligibility to receive this money is different when you file your 2020 taxes, it could be recaptured. These rebate checks will be sent to retirees as well as those in the work force. These payments will have an immediate economic impact.”
 
Required Minimum Distributions:
"Required Minimum Distributions from IRAs are waived for 2020.”

“Taxpayers who have taken RMDs and do not need them can return them. I do not believe that this will substantially help the economy, but it is a provision that affects many of our clients. We will be doing our best to review all of our clients who receive RMDs and will discuss changes to your distribution plan for this year where possible.”
  
Other Issues:
"You can take money out of an IRA if you are under 59 ½ with no penalty and spread the taxes over three years.”
“Student loan payments are deferred until September 30th on federal guaranteed student loans only.”
"There will be an increase in unemployment compensation and eligibility.”
“Small business loans and loan forgiveness are a significant aspect of this legislation. Businesses and non-profits with less than 500 employees are eligible for loans and these loans can potentially be forgiven. This is going to be vital to saving many small businesses during this crisis.   If you or someone close to you runs a business or non-profit, we believe that the best advice is to reach out directly to your banker for assistance. There will be paperwork and the eligibility limits are unique to each company up to a maximum of $10 million.” 

“Other parts of the bill support healthcare and will relieve stress on the system. It will also support airlines and other industries hit hardest by this crisis.”
    

Tax Extension:

“Most of you are aware that the deadline to file your federal income taxes has been extended to July 15th and the deadline for estimated payments has been extended as well. It is important to note
that not all states have adopted the same changes for state income taxes.”

“North Carolina adopted the July 15th due date for 2019 tax returns. The state will charge interest on any April 15th balance due at a rate of 5%. This rate may be adjusted on June 30th, but is likely to stay the same. North Carolina did not change the due date for 2020 estimated taxes.” 

“South Carolina adopted the July 15th due date for 2019 tax returns with no penalties or interest. South Carolina did not change the due date for 2020 estimated taxes.
Other states: Please check with your local tax advisor.”

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Bottom Line: 

“We believe that the government is targeting to do the right things. We continue to believe that small businesses and their employees will be hit hard. No one will know if Congress or the Fed is doing enough until after the dust settles, but I for one am glad that we got something done quickly.”

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My Thoughts on the CARES Act…

Required Disclosures:
This article was originally written by Kris Carroll of Carroll Financial Associates and is copywritten but shared with permission.  Advisory Services offered through Carroll Financial Associates, Inc.. a Registered Investment Advisor.  Registration does not imply a certain level of skill or training.  Carroll Financial and Peak Alpha Wealth Management, L. L. C. are not affiliated.
                 
 For a comprehensive review of your personal situation, always consult with a tax or legal advisor.  Neither Peak Alpha Wealth Management LLC nor any of its representatives may give legal or tax advice.       

Copyright © 2020 Carroll Financial Associates, Inc., All rights reserved.  Shared with permission to Peak Alpha Wealth Management LLC.

April 1st, 2020

The Plague Continues…

The Plague Continues…

After we endured the 2008-2009 Great Recession and the global economy was brought to its knees, we thought we’d seen the worst market in our lifetimes.  Some of us thought the same thing during the tech bubble at the start of the century.

Last week confirmed that we’re now traveling together through the third “once in a century”  market event in only the first two decades of the 21st century.  On Monday of last week the S&P 500 index tumbled 12%, breaking through the now-familiar stock exchange circuit breakers. Tuesday brought a ray of hope as the index gained 6%, which would in any other market environment be considered an extraordinary one-day gain. 

Then we felt as if the roof was caving in again on Wednesday when the S&P 500 dropped 5.18%, followed by a small 0.47% gain and then on Friday another 4.34% loss.  Just one month ago, the index was recording all-time highs.  Today, we have experienced two of the worst market weeks since 2008.  And yesterday didn’t exactly start this week off on a positive note.

The reason why traders are running for the exits is the unpredictable course of the COVID-19 virus.  Our social distancing lockdown is disrupting economic activity and this is almost certainly the first time anyone in the X, Y, Z and Baby Boom generations has seen empty grocery aisles, shuttered restaurants and theaters and empty offices as people are told to work from home.  This relentless virus continues to spread and the number of cases is increasing dramatically, despite a near-lockdown of our society.

We understand that we need to brace ourselves in the short term and we expect tremendous disruption of economic activity.  However, we also know that we will get through this and that there is a period of great recovery on the other side of this thing.  So how do we cope in the meantime? Self-quarantining, working from home, avoiding physical contact with others and social distancing are clearly the best strategies to mitigate this epidemic. We also need to remember that something more important than money is at stake here.  It's saving lives. 

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Bottom Line: 

It is important to stay grounded during this time of great uncertainty. We will recover from this.  You might even tell
your children or grandchildren a remarkable story someday about a time when we were all able to work together and help one another during a very
tough time.

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Required Disclosures:

This article was originally written by Kris Carroll of Carroll Financial Associates and is copywritten but shared with permission.  Advisory Services offered through Carroll Financial Associates, Inc.. a Registered Investment Advisor.  Registration does not imply a certain level of skill or training.  Carroll Financial and Peak Alpha Wealth Management, L. L. C. are not affiliated.
                 
          For a comprehensive review of your personal situation, always consult with a tax or legal advisor.  Neither Peak Alpha Wealth Management LLC nor
          any of its representatives may give legal or tax advice.       

          Copyright © 2020
          Carroll Financial Associates, Inc., All rights reserved.  Shared with permission to Peak Alpha Wealth Management LLC.
    
        The Plague Continues

Coronavirus fears continue to spread, which has caused the markets to drop into bear market territory. Despite a nice recovery on Tuesday, it is a tough time for investors to stay calm and rational as the market continues to sell off this week.

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So what should we do next?  

If history serves as a guide, there is only one sensible answer to this question:

It has never been a good idea to sell when everybody else is selling and it’s never been a winning strategy to buy stocks when everybody else is passionately bullish. 

The best strategy in the past has been to ride out the downturn and experience the subsequent upturn, which may come tomorrow, next week, next month or next year. 

We simply do not know what the timeline looks like yet. 

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Bottom Line:

 Bear markets like the one we have just entered are uncomfortable and can be treacherous, but remember
that the real risk is selling at the bottom and missing out on the recovery.          .

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Required Disclosures:
This article was originally written by Kris Carroll of Carroll Financial Associates and is copywritten but shared with permission. Advisory Services offered through Carroll Financial Associates, Inc.. a Registered Investment Advisor. Registration does not imply a certain level of skill or training. Carroll Financial and Peak Alpha Wealth Management, L. L. C. are not affiliated.
                 
          For a comprehensive review of your personal situation, always consult with a tax or legal advisor.  Neither Peak Alpha Wealth Management LLC nor
          any of its representatives may give legal or tax advice.     

          Copyright © 2020
          Carroll Financial Associates, Inc., All rights reserved. Shared with permission to Peak Alpha Wealth Management LLC.

Are we there yet?

Are we there yet?

This question is commonly heard from kids on long road trips. However, it's easy for us to be thinking the same thing about our current situation. Are we there yet? Are things getting better yet? There are so many questions for so much unknown.

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      We encourage you to take this unique pocket of time in history to join
      together and refocus on what truly matters:

Caring for each other.

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    There are so many ways to show someone you care from afar:

• Reach out to loved ones by phone or email

• FaceTime or video chat with friends and family

• Catch up with an old friend you haven't talked with in a while

• Send a physical card or e-card

• Have dinner delivered (by a restaurant that is still offering delivery service) to a
             family in need    

• Check in with someone who lives alone or someone who has recently lost a loved one to see how they're doing and ask if they need anything

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Offering help and being willing to receive help during this time is the best thing we can all do to support one another.

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 Bottom Line:

We are here for you in any way that we can be. If there is anything we can do for you, big or small, please let us know.

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Required Disclosures:
This article was originally written by Kris Carroll of Carroll Financial Associates and is copywritten but shared with permission. Advisory Services offered through Carroll Financial Associates, Inc.. a Registered Investment Advisor. Registration does not imply a certain level of skill or training. Carroll Financial and Peak Alpha Wealth Management, L. L. C. are not affiliated.
                 
          For a comprehensive review of your personal situation, always consult with a tax or legal advisor.  Neither Peak Alpha Wealth Management LLC nor
          any of its representatives may give legal or tax advice.     

          Copyright © 2020
          Carroll Financial Associates, Inc., All rights reserved. Shared with permission to Peak Alpha Wealth Management LLC.

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The
            Anniversary of the Bull Market

March 9th 2009, marked the low of the last bear market. Today,
            11 years later the S&P 500 opened at 2,764, down 18% from the
            all-time high just three weeks ago.   
         
            This 18% correction has been described as “violent” and has
            certainly been painful for many investors. The speed of this
            correction has been startling. Markets are responding to
            uncertainty over a viral outbreak, uncertainty over the economic
            impact of the virus and now uncertainty around a price war in oil.
         
            In our experience, the thing that markets hate most is uncertainty.
            We have no control over uncertainty. However, we can and should
            have perfect control over how we choose to respond to uncertainty.
            Or maybe even better, how we do not respond. The last thing in the
            world that rational, long-term, goal-oriented investors should do
            when everyone is selling is…sell.
          
            On the 11th anniversary of the last bear market, let us
            remember that stocks are roughly 315% higher than they were 11
            years ago.
         
            As billionaire investor Howard Marks wrote on March 3rd,
            “It would be a lot to accept that the U.S. business world, and the
            cash flows it will produce in the future, are worth 13% less today
            than they were on February 19th.” 
         
            How much more true is this a week later when we are down 18% rather
            than 13%.

           
            Bottom Line: This
            too shall pass.
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Required Disclosures:
This article was originally written by Kris Carroll of Carroll Financial Associates and is copywritten but shared with permission.  Advisory Services offered through Carroll Financial Associates, Inc.. a Registered Investment Advisor.  Registration does not imply a certain level of skill or training.  Carroll Financial and Peak Alpha Wealth Management, L. L. C. are not affiliated.
                 
          For a comprehensive review of your personal situation, always consult with a tax or legal advisor.  Neither Peak Alpha Wealth Management LLC nor
          any of its representatives may give legal or tax advice.       

          Copyright © 2020
          Carroll Financial Associates, Inc., All rights reserved.  Shared with permission to Peak Alpha Wealth Management LLC.